Klarna shares fell for a second consecutive session as investors punished the Swedish fintech for cutting forward guidance, despite beating second-quarter revenue and earnings estimates. The stock had already dropped sharply following Thursday's report.

Klarna reported quarterly revenue and adjusted operating results above Wall Street consensus, driven by growth in US transaction volumes and merchant partnerships. Management lowered its outlook for coming quarters, citing tighter consumer credit conditions and rising funding costs.

Analysts remained divided over which figure should drive valuation. Some argued the earnings beat confirmed Klarna's path to sustained profitability, while others said the reduced guidance signalled slowing momentum in the buy-now-pay-later sector as household spending cooled across the United States and Europe.

The sell-off reflected broader unease about consumer credit exposure, with tariff-driven price pressures and softening discretionary demand weighing on lenders. Rivals including Affirm and Block's Afterpay have faced similar scrutiny over loan loss provisions and the durability of instalment-payment growth.

Chief executive Sebastian Siemiatkowski defended the results, framing the guidance revision as prudence rather than weakness. He said the company would prioritise disciplined underwriting and margin quality over aggressive volume growth in the months ahead.