Klarna trims full-year revenue, volume outlook as German retail weakens
Klarna logo in this illustration taken November 27, 2025. REUTERS/Dado Ruvic/Illustration
STOCKHOLM, Aug 18 : Klarna, the Swedish "buy now, pay later" services provider and online bank, cut its full-year volume and revenue forecast on Tuesday, citing conditions in Germany, its largest market, sending its shares down 17 per cent in premarket trading.
The guidance overshadowed its surprise second-quarter profit, while analysts had expected a net loss, helped by growth in its U.S. markets.
The company now expects its full-year gross merchandise volume (GMV), a metric for measuring sales, to be between $149 billion and $151 billion, compared with its earlier forecast of greater than $155 billion.
Klarna expects its full-year revenue to be between $4.08 billion and $4.16 billion, a fall from its prior expectation of $4.34 billion. Analysts had expected $4.42 billion.
German retail sales grew less than 1 per cent in real terms in the first half, consistent with conditions reported across the country's retail sector this season. Klarna's forecast assumes Germany stays soft through the second half rather than recovering.
A German survey of 600 retail companies last month found that 42 per cent rated their current business situation as poor, while nearly two-thirds said conditions had deteriorated in the first half of the year compared with the same period in 2025.
Klarna said its quarterly net profit was $9 million compared with a loss of $53 million in the year-earlier period, ahead of expectations of a loss of $17.4 million. Adjusted operating income was $91 million versus $29 million a year ago, it added.
Klarna's April-June revenue grew 27 per cent to $1.04 billion, beating expectations of $993.8 million.
GMV rose 18 per cent to $36.6 billion in the quarter. GMV in the United States rose 27 per cent.
