Klarna has slashed its full-year revenue and sales volume forecasts as weaker consumer spending across Europe, particularly in Germany, weighs on the company.
The payments firm now expects revenue of between $4.08bn (£3.02bn) and $4.16bn for 2026, down from its previous forecast of more than $4.34bn.
Klarna also lowered its gross merchandise volume (GMV) outlook to between $149bn and $151bn, having previously expected the value of purchases made through its platform to exceed $155bn.
It blamed the downgrade partly on currency movements, which are expected to have an impact of around $600m, as well as a more cautious outlook for retail spending in Germany, its largest market by volume.
Klarna said it was taking a “more measured view” of German volumes for the remainder of the year, amid particular weakness in discretionary retail categories. German retail sales increased by less than one per cent in real terms during the first half of 2026.
The company expects the market to remain subdued during the second half rather than recovering as it had previously anticipated. However, its assumptions for the US, which remains its fastest-growing major region, were unchanged.
The weaker outlook overshadowed a strong second-quarter performance for Klarna, which swung back into the black as shoppers continued to increase their use of its payment products.
Revenue jumped 27 per cent year on year to $1.04bn during the quarter, while GMV rose 18 per cent to $36.6bn. US volumes increased 27 per cent.
Klarna recorded net income of $9m, compared with a $53m loss during the same quarter last year, while operating income reached $27m against a $46m loss in 2025.
The group now has more than 120 million active consumers, up eight per cent year on year, while its merchant network has surged 54 per cent to more than 1.2 million retailers.
Its paid membership programme has also reached two million subscribers – eight times the number recorded a year earlier – as subscription revenue soared more than 600 per cent.
Klarna chief executive and co-founder Sebastian Siemiatkowski said customers were increasingly using the platform for a greater proportion of their everyday spending, with revenue per active consumer climbing 24 per cent.
Despite cutting its sales outlook, Klarna raised its forecast for transaction margin dollars – revenue left after direct transaction costs – to between $1.62bn and $1.65bn for the full year, as it focuses on generating greater margins from a smaller volume base.
The revised guidance sent Klarna shares sharply lower following the results, as investors focused on signs of softer discretionary spending in its key European markets.
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