KLAR Stock Recovers Overnight As Management Touts Strong US Growth: Retail Turns Extremely Bullish, Says Klarna Is ‘Undervalued’

During the earnings call, CEO Sebastian Siemiatkowski said that the U.S. was the company’s fastest-growing large region in the second quarter.

• The company said it delivered gross merchandise value of $7.9 billion in the U.S., up 27% year on year. 
• Meanwhile, transaction margin dollars came in at $88 million, up 126% year-over-year.
• Klarna said that it expects the Apple Upgrade program, announced in July, to be positively adjusted-operating-income accretive in 2026 and views it as a multi-year opportunity. 

Shares of Klarna Group plc (KLAR) gained more than 1% in the overnight session late Tuesday after plunging nearly 23% at close on weak outlooks and announcing transitions for its Chief Financial Officer and Chief Marketing Officer. 

However, during the earnings call, management highlighted growing strength in the U.S. region. Retail sentiment on Stocktwits improved from ‘bullish’ to ‘extremely bullish’ following the comments. 

Klarna Emphasizes US Strength 

During the earnings call, CEO Sebastian Siemiatkowski said that the U.S. was the company’s fastest-growing large region in Q2. The company said it delivered gross merchandise value of $7.9 billion in the region, up 27% year-on-year. 

Meanwhile, transaction margin dollars came in at $88 million, up 126% year-over-year, “more than three times the pace of revenue growth, which was 37%,” CFO Niklas Näglén said. 

“The U.S. is continuing to really chug along on all engines. We have very strong growth there,” Näglén added. 

However, Klarna took a cautious view of European volumes for the second half of the year, particularly in Germany, where weaker discretionary spending is expected to persist through year-end.

Apple Upgrade Program To Be A Positive For Klarna 

Klarna said that it expects the Apple Upgrade program, announced in July, to be positively adjusted-operating-income accretive in 2026 and views it as a multi-year opportunity. 

“That Apple partnership is a fantastic partnership, and I think it can be very accretive over time,” Näglén said. “We see this very much as a multi-year similar to what many of our other partners have, where we start, then we start ramping, which we will do this year. Then we continue to develop that over time,” he added. 

KLAR Stock: Retail Stance

Retail sentiment on Stocktwits improved from ‘bullish’ to ‘extremely bullish’ over 24 hours despite a sharp decline in share prices. Meanwhile, message volumes surged more than 764% in the same time. 

One bullish user said, “$KLAR Anyone that does not see the long term upside to this type of stock is blind. Gen Z/Alpha is all about these “buy now pay later” schemes. It’s not a class thing, it’s an age thing. As those consumers become a larger share of the buying market, this and $AFRM will fly. Short term, it could do anything, but if it weathers the storms it will be smooth sailing years from now…”

Another user said, “$KLAR One month ago, people were happily paying $22. Now we’ve beaten expectations, delivered a great ER, and had an even better earnings call, in my opinion. Yet the stock is sitting at what looks like a crazy 25% sale. Don’t wait too long—you may find yourself buying it again in the $20S.”

KLAR stock is down nearly 52% from its yearly highs. 

A third user said, “$KLAR This is undervalued.”

Meanwhile, in 2026, the company’s shares have declined more than 47%. 

Klarna Q2 Results Snapshot

The buy now, pay later firm posted Q2 revenue of $1.04 billion, up 27% year over year and ahead of Wall Street estimates of $996.78 million, according to data from Fiscal.ai. Klarna also beat expectations on earnings per share, which came in at $0.01 versus expectations of a loss of $0.06 per share. 

However, the company cut its full year 2026 revenue guidance to between $4.08 billion and $4.16 billion, below consensus estimates, citing a $600 million in foreign exchange headwinds and weaker-than-expected German volumes.

Separately, the financial company announced that its CFO Niclas Neglén and CMO David Sandström will transition out of their roles in early 2027 after six and nine years with the company, respectively. Both executives will remain through the transition, the company said, as Klarna is in the process of searching for a New York-based CFO.

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