Klarna shares drop 7% ahead of Q2 earnings report, reflecting profit-taking before key results.

Klarna's stock fell 7% to $19.38 before its Q2 earnings report, reversing part of a recent rally as investors reduce risk ahead of the results. The company is expected to report revenue near $995 million and a slight loss per share. Analysts remain mixed but generally positive, with some expecting a beat due to strong e-commerce performance. The report will be closely watched for margins, credit provisions, and full-year guidance, which could influence BNPL sector sentiment.