NEW YORK — Klarna announced the departure of its Chief Financial Officer and Chief Marketing Officer on August 19, 2026, while also cutting its full-year revenue outlook. The Sweden-based buy-now-pay-later company cited weakness in German retail spending as the reason for lowering its guidance, a move that sent its stock down approximately 22 percent on the New York Stock Exchange.

Niclas Neglén is leaving his role as Chief Financial Officer of Klarna, and David Sandström is leaving his role as Chief Marketing Officer. Both executives will transition out of their roles by early 2027, and the company stated the transitions were not the result of any disagreement with Klarna on matters related to the company’s operations, policies, or practices. Neglén served as Klarna's CFO for six years, while Sandström served as CMO for nearly a decade.

Klarna tempered its full-year guidance on August 19, 2026, cutting its revenue outlook to between $4.08 billion and $4.16 billion. Germany is Klarna's largest market in Europe, making the cited weakness in retail spending a significant factor in the revised forecast. The company had previously reported second-quarter revenue of approximately $1.04 billion, a 27 percent increase year over year, along with a $9 million net profit and diluted earnings per share of $0.01.

In the U.S., Klarna's gross merchandise volume grew by 27 percent year-over-year in the second quarter of 2026, outpacing the 1.8 percent growth rate of the broader U.S. retail sector during the same period. Despite this growth, liquidity conditions tightened as deposits fell to $11.7 billion in the second quarter of 2026, representing 88 percent of total funding, down from $13 billion at the end of 2025. Klarna shares closed at $14.73 per share on August 20, 2026, after falling 2.19 percent following the initial drop.

Klarna has begun a search for a New York-based CFO. This search aligns with the company's recent application for an industrial loan company charter in Utah, signaling a strategic push to expand its banking operations in the U.S. Neglén helped take Klarna public in September 2025 and had previously worked at HSBC’s private bank, where he served as CFO and later chief operating officer for the Europe, Middle East, and Africa segment from 2016 to 2021.

The leadership changes mark another shift in Klarna's executive suite, as the company has experienced three major C-suite transitions in the past five years, including the departure of its former CEO in 2021 and the exit of its COO in 2023. Co-founder and CEO Sebastian Siemiatkowski said in a statement that Neglén has been a trusted partner to him and the board through six years of growth and change. Klarna operates as a digital bank and payments provider with nearly 120 million global active users, and counts Apple, Nike, and Sephora among merchants offering its payment option. Sequoia Capital, which has invested in Klarna since 2010, remains the company's largest institutional shareholder.

Analysts noted that Klarna’s reliance on European markets, particularly Germany, continues to expose it to regional economic fluctuations. Retail sales in Germany declined by 1.2 percent year-over-year in the second quarter of 2026, according to official data from the Federal Statistical Office. This downturn contributed to slower transaction volumes on Klarna’s platform in the region. Meanwhile, the company’s U.S. expansion has been a bright spot, with partnerships expanding to include over 400,000 merchants nationwide.

Klarna reported that its cost of customer acquisition rose by 14 percent compared to the same period last year, reflecting increased competition in the digital payments space. The company also increased its provisioning for credit losses by 9 percent, citing higher delinquency rates among younger borrowers. Despite these challenges, Klarna maintained its forecast for adjusted EBITDA to be positive for the full year, though at a lower margin than previously expected.

The company plans to release its next earnings report on October 28, 2026, which will include updated metrics on customer growth, loan performance, and funding composition. Investors will be watching closely for further signs of stabilization in its core markets and progress in its U.S. banking ambitions.