Klarna Stock Plunges 19% as Financial Chief Departure Adds to Earnings Pain

Klarna said its chief financial officer and chief marketing officer were departing the company after six and nine years, respectively. (Michael Nagle/Bloomberg)

Key Points

• Klarna stock falls sharply after the company announces the planned departures of its chief financial officer and chief marketing officer in early 2027.
• The company reports second-quarter net income of $9 million on revenue of $1.04 billion, beating Wall Street expectations.
• Klarna lowers its full-year revenue forecast to a range of $4.08 billion to $4.16 billion, missing consensus estimates.

Klarna stock fell sharply on Tuesday after the buy-now, pay-later provider announced the departure of its chief financial officer and chief marketing officer.

The company announced “planned transitions” for the two executives, to take effect in early 2027. Chief Financial Officer Niclas Neglén and Chief Marketing Officer David Sandström—who have held the positions for six and nine years, respectively—will continue to serve in their roles to lead the company through the transition period.

Klarna has yet to name successors, saying the search for a New York-based financial chief is underway.

Separately, the company reported second-quarter earnings. Revenue surged 27% to $1.04 billion, outstripping analysts’ calls for $996.5 million. Klarna also logged $9 million in net income, handily beating the $18 million oss Wall Street had projected and marking its second consecutive quarterly profit beat.

However, the BNPL provider’s current-quarter outlook underwhelmed. Klarna sees revenue of $940 million to $980 million for the third quarter, sharply below analysts’ calls for $1.11 billion at the midpoint of the range.

Full-year guidance also missed the mark. Klarna lowered its annual revenue forecast to $4.08 billion to $4.16 billion, down from $4.3 billion previously and below consensus estimates of $4.4 billion.

The updated range reflects a “more measured view” of Klarna’s activity in Germany, its largest market by volume, alongside an estimated $600 million drag from currency translations, the company said.

Shares sank 19% to $15.75 in premarket trading Tuesday and were heading toward their largest same-day percentage drop since a nearly 27% plunge in February, according to Dow Jones Market Data.

Klarna made its trading debut in late 2025, pricing its initial public offering at $40 a share. The stock ended its first day up 15%, giving the company a market value around $17.4 billion. Shares have continued to slide since the IPO, falling nearly 33% in 2026 amid investor concerns over Klarna’s path to sustained profitability.

Earlier this year, analysts at BofA Securities referred to the company as a “show me” story facing a near-term credibility test. Morgan Stanley analysts remarked as recently as last week that they had “relatively limited visibility and confidence” into Klarna’s second-quarter numbers, given the company’s history of reporting mixed results.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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