Key facts
- Klarna has lowered its annual revenue target to $4.08bn-$4.16bn, down from over $4.34bn.
- Gross merchandise volume (GMV) forecast reduced to $149bn from $151bn.
- The company cited softer European volumes and currency shifts for the downgrade.
- Klarna reported a $27m profit in the second quarter, compared to a $46m loss last year.
- Revenue exceeded $1bn for the third consecutive quarter.
- Klarna has applied for a US banking license.
Klarna has revised its annual revenue target downwards, citing unfavorable currency shifts and a slowdown in European transaction volumes. The Swedish fintech unicorn now anticipates revenue between $4.08 billion and $4.16 billion for the current financial year, a decrease from its prior projection of over $4.34 billion.
Alongside the revenue adjustment, Klarna also reduced its gross merchandise volume (GMV) forecast to $149 billion from $151 billion, having previously expected GMV to exceed $155 billion. The company indicated a more cautious outlook for European volumes in the latter half of the year, particularly in discretionary retail sectors. It pointed to sluggish German retail sales, its largest market, as an example, expecting conditions to remain soft.
Approximately $600 million of the GMV reduction is attributed to currency fluctuations impacting European and other markets, including the UK. Despite these headwinds, Klarna achieved its second consecutive quarterly profit, reporting $27 million in the second quarter. This marks a significant improvement from a $46 million loss in the same period of 2025.
Revenue surpassed $1 billion for the third quarter in a row, driven by an 18 percent year-on-year increase in GMV to $36.6 billion. The number of active consumers grew to 120 million, an eight percent annual increase, while paying subscribers expanded eight-fold to 2 million. Subscription revenue saw a substantial 600 percent surge, positively impacting transaction margins.
In a strategic move, Klarna applied for a US banking license in July, aiming to better serve its 30 million US consumers by offering integrated spending, saving, and payment services at a lower cost.