Klarna Stock Recovers on Strong US Growth and Bullish Retail Sentiment

Klarna Group plc (KLAR) saw its stock recover slightly overnight after a steep decline earlier in the day. During the company's earnings call, CEO Sebastian Siemiatkowski highlighted strong growth in the U.S., which was the company’s fastest-growing large region in the second quarter. Klarna reported gross merchandise value of $7.9 billion in the U.S., up 27% year over year, and transaction margin dollars of $88 million, a 126% year-over-year increase.

The company also expressed optimism about the Apple Upgrade program, announced in July, which it expects to be positively adjusted-operating-income accretive by 2026. CFO Niklas Näglén described the Apple partnership as a multi-year opportunity, similar to other long-term collaborations.

Despite the positive outlook on the U.S. market, Klarna took a cautious view on European volumes for the second half of the year, particularly in Germany, where weaker discretionary spending is expected to persist. The company cut its full-year 2026 revenue guidance to between $4.08 billion and $4.16 billion, citing foreign exchange headwinds and weaker-than-expected German volumes.

Retail sentiment on Stocktwits shifted from ‘bullish’ to ‘extremely bullish’ following the earnings call, with message volumes surging more than 764%. Some users highlighted the long-term potential of buy now, pay later schemes, especially among younger consumers. Others noted that the stock appeared undervalued despite a significant decline from its yearly highs.