KLAR Stock Set For Biggest Single-Day Slump In Six Months On Lowering FY 2026 Guidance – Retail Sees ‘Buying Opportunity’

• Full-year revenue is expected to range from $4.08 billion to $4.16 billion, down from its previous forecast of more than $4.34 billion.
• The company took a cautious stance on European volumes for the second half of the year, particularly in Germany, its largest market by volume.
• Klarna’s forecast assumes German consumer spending will remain soft through the rest of the year.

Shares of Klarna Group (KLAR) crashed more than 19% in pre-market trading on Tuesday after the financial technology company lowered its full-year 2026 gross merchandise value and revenue forecast, citing currency movements and softer consumer spending in Europe.

KLAR shares are on track to post their biggest single-day slump in nearly six months.

KLAR Lowers FY26 Outlook On Soft European Data

Klarna slashed its full-year 2026 GMV guidance to between $149 billion and $151 billion, down from its previous forecast of more than $155 billion. The firm, famous for its “Buy Now, Pay Later” services, said currency movement accounted for roughly $600 million of the reduction, affecting volumes across Europe, the U.K. and other markets.

The company also took a cautious stance on European volumes for the second half of the year, particularly in Germany, its largest market by volume. Weakness has been most pronounced in certain discretionary retail categories, it said.

Klarna’s forecast assumes German consumer spending will remain soft through the rest of the year. The company noted that German retail sales grew by less than 1% in real terms during the first half.

Full-year revenue is now expected to range from $4.08 billion to $4.16 billion, down from its previous forecast of more than $4.34 billion. Adjusted operating income is projected at $280 million to $300 million.

KLAR’s Surprise Q2 Profit

Klarna’s second-quarter (Q2) revenue climbed 27% to $1.04 billion, topping Wall Street’s estimate of $996.4 million, according to Fiscal.ai. Earnings of $0.01 per share also beat expectations for a $0.06 per-share loss.

In the U.S., revenue rose 37% to $376 million. Growth was mainly driven by Fair Financing, a type of long-term loan, as Klarna earned interest income from both new and existing loans.

Separately, the company announced that CFO Niclas Neglén and marketing chief David Sandström will step down from their roles in early 2027 as part of a planned transition. Klarna said it has begun searching for a New York-based CFO.

Retail Expects KLAR To Bounce Back

Despite the pre-market crash, retail sentiment surrounding KLAR on Stocktwits turned ‘extremely bullish’ from ‘neutral’ over the past 24 hours, amid ‘extremely high’ message volumes.

One user expects the stock to bounce back.

Another user saw the crash as a buying opportunity.

The stock has slumped more than 45% so far this year.

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