Klarna has cut its full-year revenue and transaction forecasts while overhauling its leadership team on Tuesday 18 August as the Swedish FinTech seeks a US banking licence and expands beyond buy now, pay later services.

The company now expects full-year revenue of $4.08 billion to $4.16 billion, down from its previous forecast of more than $4.34 billion, while gross merchandise volume (GMV) is forecast at $149 billion to $151 billion, compared with an earlier expectation of more than $155 billion.

Klarna attributed the weaker outlook to softer retail spending in Germany, its largest market by volume, and currency movements that it said would reduce GMV by about $600m. The company expects German retail conditions to remain weak through the second half, after sales grew by less than one per cent in real terms during the first half.

The weaker guidance overshadowed stronger second-quarter results, with Reuters reporting that Klarna recorded net income of $9 million, compared with a $53 million loss a year earlier. Revenue rose 27 per cent to $1.04 billion, while GMV increased 18 per cent to $36.6 billion and US GMV rose 27 per cent.

Klarna said chief financial officer Niclas Neglén and chief marketing officer David Sandström will leave their positions at the start of 2027, with the company searching for a New York-based finance chief. Chief executive Sebastian Siemiatkowski said, “Having a stronger presence in New York is important to us”, citing proximity to investors and the stock market.

The leadership changes come as Klarna seeks to operate more like a traditional bank in the US. The company applied for a banking licence with the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation in July, with the proposed expansion including savings and interest-bearing lending products.

Klarna said its broader financial offering is already increasing revenue from customers, with average revenue per active consumer rising 24 per cent year on year to $33.70 in the second quarter. Its customer base reached 120 million active consumers, while paying subscribers increased eight-fold to 2 million.

The company’s shares fell nearly 19 per cent in early New York trading following the guidance cut, leaving its market capitalisation at about $6 billion. The stock remains more than 50 per cent below its level following Klarna’s New York Stock Exchange listing in September 2025.

Siemiatkowski said Neglén had “built the finance organisation that took us public” and had been a trusted partner during six years of growth and change.

---