Free cash flow generation remains volatile, with margins peaking at 25.0% in 2025Q4 before moderating to 11.4% in 2026Q1, reflecting seasonal e-commerce dependencies.
| Cash from Operations | 237.92M | 218.01M | 165.96M | 119.37M | -23.55M | -22.74M |
| Operating CF Margin % | - | 17.67% | 17.7% | 17.1% | -4.98% | -7.82% |
| Operating CF Growth % | 271.15% | 31.37% | 39.02% | 606.84% | -3.58% | - |
| Net Income | -8.64M | -31.77M | -46.14M | -308.23M | -49.19M | -79.39M |
| Depreciation & Amortization | 20.15M | 18.6M | 17.72M | 13.65M | 9.04M | 5.27M |
| Stock-Based Compensation | 165.51M | 162.03M | 135.21M | 340.8M | 6.8M | 35.25M |
| Deferred Taxes | -1.56M | -3.06M | 559K | -3.23M | 0 | 0 |
| Other Non-Cash Items | 58.18M | 109.83M | 86.32M | 82.31M | 45.29M | 14.34M |
| Working Capital Changes | 4.29M | -37.62M | -27.71M | -5.92M | -35.49M | 1.79M |
| Change in Receivables | -19.26M | -19.66M | -20.76M | -12.88M | -5.16M | -5.09M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 7.01M | 12.03M | 113K | 4.5M | -21.11M | 23.9M |
| Cash from Investing | -38.47M | -30.5M | -17.23M | -9.36M | -18.75M | -14.23M |
| Capital Expenditures | -413K | -9.48M | -5.92M | -3.65M | -15.82M | -13.02M |
| CapEx % of Revenue | 0.03% | 0.77% | 0.63% | 0.52% | 3.35% | 4.48% |
| Acquisitions | 0 | -2.03M | 0 | 0 | -500K | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | -38.06M | -18.98M | -11.3M | -5.71M | -2.42M | -1.21M |
| Cash from Financing | -103.3M | -4.49M | -5.8M | 242.73M | 101.3M | 211.26M |
| Debt Issued (Net) | 0 | 0 | -19K | -21K | -21K | -16K |
| Equity Issued (Net) | 9.15M | 13.49M | 17.89M | 324.37M | 101.32M | 205.31M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | -140.41M |
| Other Financing | -112.44M | -17.98M | -23.66M | -81.63M | 0 | 5.96M |
| Net Change in Cash | 96.16M | 183.03M | 142.93M | 352.74M | 59M | 174.29M |
| Free Cash Flow | 223.59M | 189.54M | 148.73M | 110.01M | -41.8M | -36.97M |
| FCF Margin % | 17.04% | 15.36% | 15.87% | 15.76% | -8.84% | -12.72% |
| FCF Growth % | 68.88% | 27.44% | 35.19% | 363.21% | -13.06% | - |
| FCF per Share | 0.73 | 0.65 | 0.56 | 0.45 | -0.17 | -0.15 |
| FCF Conversion (FCF/Net Income) | -25.88x | -6.86x | -3.60x | -0.39x | 0.48x | 0.29x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 8K |
| Taxes Paid | 6.46M | 6.54M | 4.69M | 283K | 204K | 70K |
SMS carrier fee volatility
Based on reported financial statements, Klaviyo's operating cash flow consistently exceeds net income, with the 2026Q1 operating cash flow of $34.3 million dwarfing the $9.0 million net income, largely due to the significant add-back of $41.8 million in stock-based compensation expenses during the same period.
The persistent gap between net income and operating cash flow suggests that the company's reported profitability is heavily reliant on non-cash accounting adjustments. Investors should monitor whether this reliance on equity-based incentives continues to dilute shareholder value while the underlying business attempts to transition toward sustainable GAAP profitability.
As reported in recent quarterly filings, Klaviyo's free cash flow margin has demonstrated significant volatility, peaking at 25.0% in 2025Q4 before moderating to 11.4% in 2026Q1, indicating that seasonal e-commerce cycles heavily influence the company's ability to convert revenue into actual cash reserves.
The fluctuation in free cash flow margins appears to be tied to the timing of usage-based overages and seasonal marketing spend. While the trajectory shows an improving trend compared to earlier periods of negative cash flow, the sustainability of these margins remains sensitive to the company's ability to manage variable costs during non-peak quarters.
According to the provided cash flow data, working capital changes have been highly inconsistent, ranging from a $41.9 million outflow in 2025Q1 to a $23.4 million inflow in 2024Q4, which suggests that the company's cash conversion cycle is susceptible to timing differences in merchant billing and collections.
These swings in working capital indicate that Klaviyo's cash position is not yet stabilized, likely reflecting the lumpy nature of usage-based billing cycles. Analysts should investigate whether these variations represent structural inefficiencies in the collection process or merely the expected seasonality of the underlying e-commerce merchant base.
Based on the company's reported figures, capital expenditures have remained minimal, with the CapEx-to-revenue ratio consistently hovering below 2% over the last ten quarters, confirming that Klaviyo operates with a highly scalable, asset-light software model that requires little physical infrastructure to support its current growth trajectory.
The low capital intensity suggests that the company does not face significant maintenance burdens, allowing most generated cash to be directed toward growth initiatives or balance sheet fortification. This structural advantage provides management with flexibility, provided that cloud infrastructure costs do not escalate disproportionately as the platform scales.
Quick answers to the most common questions about buying KVYO stock.
Klaviyo, Inc. (KVYO) generated $218.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Klaviyo, Inc. (KVYO) generated $189.5M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Klaviyo, Inc. (KVYO) spent $9.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.