Klarna drops 20% after quarterly results despite profit growth

Klarna’s share price fell by nearly 20% on the stock exchange after the publication of its quarterly results. That is striking, because the results themselves were better than expected: revenue rose by 27% to $1.04 billion and the company booked a profit of $9 million, compared with a loss of $53 million a year earlier. Investors are reacting, however, to a worsened outlook and the sudden departure of two top executives.

In short:

• Klarna falls nearly 20% on the stock exchange after disappointing full-year forecasts
• Expected transaction volumes and revenue for 2026 are revised sharply downward, partly due to weakness in Germany
• The chief financial officer and chief commercial officer are leaving the company

Outlook disappoints due to problems in Germany

The quarterly results themselves give little cause for concern, but the revised expectations for the rest of 2026 are scaring off investors. Klarna is lowering its forecast for total transaction volume from more than $155 billion to between $149 billion and $151 billion.

The revenue outlook is also being cut, from $4.34 billion to a range of $4.08 billion to $4.16 billion. The company cites disappointing performance on the German market as the main reason.

Departure of two top executives increases uncertainty

In addition to the revised forecasts, the simultaneous departure of the chief financial officer and the chief commercial officer is causing extra turmoil. Investors see the double departure as a sign that more risks may be lurking.

The chart shows that the share, which is traded on the NYSE under the ticker KLAR, had already been in a longer downward trend since the start of October 2025. After a partial recovery towards summer 2026, the price falls back to $15.18 on 18 August, the lowest level in months.