TLDR
- Shares of Klarna tumbled up to 20% in early trading following news that both its CFO and CMO would be stepping down.
- Second-quarter revenue reached $1.04 billion, a 27% increase from the prior year, surpassing analyst projections of $992.82 million.
- The company slashed its 2026 annual revenue forecast to $4.08-$4.16 billion, significantly below the analyst consensus of $4.42 billion.
- Third-quarter revenue projections of $940-$980 million fell short of Wall Street’s $1.11 billion forecast.
- Both Niclas Neglén (CFO) and David Sandström (CMO) will remain in their positions until early 2027 during the transition period.
Shares of Klarna experienced a dramatic decline of up to 20% during Tuesday’s premarket session before recovering slightly to around 14% as market participants processed a combination of strong quarterly results overshadowed by executive departures and disappointing forward guidance.
The buy-now-pay-later giant announced that CFO Niclas Neglén and CMO David Sandström will be exiting their roles. Neglén has held the chief financial officer position for six years, while Sandström has led marketing efforts for nine years. The company confirmed both executives will remain through the first quarter of 2027 to ensure a smooth handover.
The fintech company revealed it has already initiated a search for a New York-based chief financial officer. Details regarding a successor for the chief marketing officer position have not yet been disclosed.
KLARNA $KLAR Q2’26 EARNINGS HIGHLIGHTS
Revenue: $1.04B (Est. $994M)
FY26 Guide:
— Wall St Engine (@wallstengine) August 18, 2026
The leadership transition announcement coincided with second-quarter financial results that exceeded revenue expectations. The company reported revenue of $1.04 billion, representing a 27% year-over-year increase and surpassing the analyst consensus of $992.82 million. Adjusted earnings per share came in at $0.01, beating expectations of -$0.05.
Gross merchandise volume climbed to $36.6 billion, marking an 18% year-over-year gain. The merchant base expanded significantly by 54% to exceed 1.2 million partners.
Transaction margin dollars surged 42% from the prior year to $446 million, representing 42.8% of total revenue. The company increased its full-year transaction margin dollar forecast to $1.62-$1.65 billion.
Where the Numbers Disappointed
While second-quarter performance exceeded expectations, Klarna significantly reduced its full-year 2026 revenue outlook to $4.08-$4.16 billion. The midpoint of $4.12 billion represents a substantial miss compared to the $4.42 billion analyst consensus.
Management attributed the reduction to approximately $600 million in foreign exchange headwinds and weakening transaction volume trends in Germany, which represents the company’s largest market by volume.
Third-quarter projections also fell short of expectations. Klarna forecasts revenue between $940-$980 million for the current quarter, well below Wall Street’s estimate of $1.11 billion. The company guided adjusted operating income for Q3 to just $5-$15 million.
The full-year adjusted operating income outlook of $280-$300 million remained consistent with previous forecasts.
What CEO Siemiatkowski Said
CEO Sebastian Siemiatkowski emphasized user growth and engagement in his statement. “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 noted.
He also acknowledged the contributions of the departing executives. “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 simultaneous impact of reduced guidance and the loss of two senior leaders proved challenging for investor sentiment. After going public on the New York Stock Exchange earlier this year, Tuesday’s selloff represented one of the most significant single-session declines since the company’s market debut.
The company raised its full-year transaction margin dollar guidance to approximately 1.09% of GMV, an improvement from its previous forecast of greater than 1.04%.
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