Klarna Group plc · Q2 2026

The quarter in short

Revenue $1.04B, up 26.6% year over year and 3.0% on the quarter. EPS $0.01. Free cash flow −$269M, up 72.0% on the quarter. EPS beat consensus by 114%. Rule of 40 score +1.

What we learned

1. The guided sequential revenue decline is largely a change of basis. Klarna's own outlook table prints revenue as a percent of volume twice, 2.74–2.75% as reported and 2.84–2.85% excluding the move to fair value: about $150m of full-year revenue, all of it in the second half.
2. On Klarna's own like-for-like row the full-year revenue cut is 1–2.5%, not 4–6%. More than $4.34bn became $4.08–4.16bn as printed, and $4.23–4.30bn on the ex-fair-value ratio published beside it.
3. The metric Klarna says it optimises for is the one genuinely guided down. Transaction margin dollars of $340–360m for September against $446m delivered, and second-half growth of about 23% against 42% in the first half.
4. Full-year adjusted operating income barely moved, and almost half of it now sits in December. More than $299m became $280–300m, but September is guided to $5–15m against $91m just delivered, leaving $116–126m for the December quarter.
5. The US transaction margin closed nine points in a year. 23.4% of US revenue against 14.2%, on US revenue up 36.7% to $376m and US Fair Financing volume up 114% — against a rest-of-world book at 53.8%.

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