Klarna shares are heading toward their worst day since February.

The "buy now, pay later" service provider reported earnings before the bell today. Shares plunged 19% in early trading after the company cut its 2026 revenue guidance below Wall Street estimates. This outlook eclipsed Klarna's strong second-quarter results.

The Swedish fintech company said it was facing softer consumer discretionary spending in Germany, its largest market, alongside a drag from currency translation.

On Feb. 19, Klarna shares plunged 27% in their worst single-day decline since the stock opened for trading on the NYSE last year.