{
  "id": 1715185,
  "title": "Klarna cuts revenue target as it forecasts softer European volumes",
  "url": "https://urgent.news/2026/08/18/klarna-cuts-revenue-target-as-it-forecasts-softer-european-volumes",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-18T12:54:50.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/klarna-cuts-revenue-target-as-it-forecasts-softer-european-volumes/"
  },
  "original_language": "en",
  "account": "Klarna, the Swedish fintech unicorn, has lowered its revenue target for the year due to unfavorable currency shifts and reduced activity in Europe. The company now expects to generate between $4.08bn and $4.16bn for the current financial year, down from its previous forecast of over $4.34bn (£3.21bn). Additionally, Klarna has reduced its predicted gross merchandise volume (GMV) to $149bn from a previous estimate of $151bn. The firm cited a more conservative view on European volumes in the second half and noted weak growth in German retail sales, which is its largest market by volume. The UK remains Klarna's third-largest market, with over 11 million active customers and partnerships with more than 60,000 retailers. Despite the downgrade, Klarna managed to report a profit in the second quarter, marking its second consecutive quarterly profit since its IPO last September. The company's revenue exceeded $1bn for the third consecutive quarter, with GMV increasing by 18% year-on-year to $36.6bn. Klarna also saw a surge in active users to 120 million, marking an eight percent growth in annual growth, and memberships increased eight-fold, reaching 2 million paying subscribers. This led to a significant boost in subscription revenue, with a 600% increase, which carries no transaction or credit loss costs. Klarna has also submitted a bid for a US banking license, aiming to serve 30 million US consumers in its network with better quality and lower costs.",
  "summary": "Klarna has downgraded its revenue target for the year following unfavourable currency shifts and reduced activity from softer European volumes. The Swedish fintech unicorn said it expects to make between $4.08bn and $4.16bn for the current financial year, down from its previous forecast of over $4.34bn (£3.21bn). This came alongside a reduction in predicted gross [...]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}