TLDR
- Klarna shares plunged up to 20% in premarket sessions following news that its CFO and CMO will be stepping down.
- Second-quarter revenue totaled $1.04 billion, representing a 27% year-over-year increase and surpassing analyst projections of $992.82 million.
- The company lowered its 2026 full-year revenue forecast to $4.08-$4.16 billion, significantly below the $4.42 billion consensus estimate.
- Third-quarter revenue projections of $940-$980 million fell short of Wall Street’s $1.11 billion forecast.
- Both CFO Niclas Neglén and CMO David Sandström will remain in their positions until early 2027 during the transition period.
Shares of Klarna experienced a sharp decline of up to 20% during Tuesday’s premarket session before recovering slightly to a 14% loss as market participants assessed a combination of mixed quarterly results and significant leadership transitions.
The buy-now-pay-later giant announced that both CFO Niclas Neglén and CMO David Sandström are departing the organization. Neglén has held the CFO position for six years, while Sandström has led marketing efforts for nine years. The company confirmed both executives will continue in their roles through the first part of 2027 to ensure a smooth transition.
The fintech firm disclosed that it has initiated a search for a New York-based chief financial officer. Meanwhile, no information regarding a successor for the chief marketing officer position has been provided.
The leadership announcements coincided with second-quarter financial results that exceeded revenue expectations. The company posted $1.04 billion in revenue, marking a 27% year-over-year gain and topping the analyst consensus of $992.82 million. Adjusted earnings per share came in at $0.01, outperforming the anticipated loss of -$0.05.
Gross merchandise volume climbed to $36.6 billion, representing an 18% year-over-year increase. The merchant base expanded dramatically by 54%, reaching more than 1.2 million platform participants.
Transaction margin dollars experienced robust growth of 42% year-over-year, reaching $446 million and representing 42.8% of total revenue. The company elevated its full-year transaction margin dollar forecast to a range of $1.62-$1.65 billion.
Where the Numbers Disappointed
While second-quarter results exceeded expectations, Klarna reduced its full-year 2026 revenue outlook to $4.08-$4.16 billion. The midpoint of $4.12 billion represents a substantial shortfall compared to the $4.42 billion analyst consensus.
Management attributed the revision to approximately $600 million in adverse currency translation effects and weaker-than-anticipated volume trends in Germany, which represents the company’s largest market by transaction volume.
The third-quarter outlook also underwhelmed investors. Klarna projected third-quarter revenue in the range of $940-$980 million, falling well below Wall Street’s expectation of $1.11 billion. The company’s adjusted operating income guidance for Q3 stands at a modest $5-$15 million.
For the full year, adjusted operating income is forecast at $280-$300 million, which remained consistent with previous market expectations.
What CEO Siemiatkowski Said
In prepared statements, CEO Sebastian Siemiatkowski emphasized growing consumer adoption and engagement. “Over 120 million consumers now use Klarna, and each is using it for more of their everyday spend. Revenue per active consumer grew 24%,” he stated.
Regarding the executive transitions, he commented: “Niclas has built the finance organization that took us public and has been a trusted partner to me and the Board through six years of growth and change. David has given Klarna a voice.”
The dual impact of reduced forward guidance and key executive departures created significant selling pressure among investors. Following its public listing on the New York Stock Exchange earlier this year, Tuesday’s decline represented one of the most significant single-session losses since the company’s market debut.
The company increased its full-year transaction margin dollar guidance to approximately 1.09% of GMV, an improvement from its prior forecast of greater than 1.04%.
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