Free cash flow margin expanded to 18.7% in 2026Q2 from 10.9% in 2024Q1, with cumulative operating cash flow of $512M versus net losses of $77M, highlighting strong cash conversion despite heavy SBC of over $400M.
Klaviyo, Inc. (KVYO) cash flow statement — 5-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 |
|---|
| Cash from Operations | 276.08M | 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 % | 303.37% | 31.37% | 39.02% | 606.84% | -3.58% | - |
| Net Income | 6.79M | -31.77M | -46.14M | -308.23M | -49.19M | -79.39M |
| Depreciation & Amortization | 23.5M | 18.6M | 17.72M | 13.65M | 9.04M | 5.27M |
| Stock-Based Compensation | 171.45M | 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 | 116.57M | 109.83M | 86.32M | 82.31M | 45.29M | 14.34M |
| Working Capital Changes | -40.67M | -37.62M | -27.71M | -5.92M | -35.49M | 1.79M |
| Change in Receivables | -22.05M | -19.66M | -20.76M | -12.88M | -5.16M | -5.09M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 15.15M | 12.03M | 113K | 4.5M | -21.11M | 23.9M |
| Cash from Investing | -42.18M | -30.5M | -17.23M | -9.36M | -18.75M | -14.23M |
| Capital Expenditures | -22.96M | -9.48M | -5.92M | -3.65M | -15.82M | -13.02M |
| CapEx % of Revenue | 1.65% | 0.77% | 0.63% | 0.52% | 3.35% | 4.48% |
| Acquisitions | 0 | -2.03M | 0 | 0 | -500K | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | -19.22M | -18.98M | -11.3M | -5.71M | -2.42M | -1.21M |
| Cash from Financing | -336.77M | -4.49M | -5.8M | 242.73M | 101.3M | 211.26M |
| Debt Issued (Net) | 0 | 0 | -19K | -21K | -21K | -16K |
| Equity Issued (Net) | -323.67M | 13.49M | 17.89M | 324.37M | 101.32M | 205.31M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -333.57M | 0 | 0 | 0 | 0 | -140.41M |
| Other Financing | -13.11M | -17.98M | -23.66M | -81.63M | 0 | 5.96M |
| Net Change in Cash | -102.88M | 183.03M | 142.93M | 352.74M | 59M | 174.29M |
| Free Cash Flow | 244.44M | 189.54M | 148.73M | 110.01M | -41.8M | -36.97M |
| FCF Margin % | 17.59% | 15.36% | 15.87% | 15.76% | -8.84% | -12.72% |
| FCF Growth % | 70.05% | 27.44% | 35.19% | 363.21% | -13.06% | - |
| FCF per Share | 0.82 | 0.65 | 0.56 | 0.45 | -0.17 | -0.15 |
| FCF Conversion (FCF/Net Income) | 35.99x | -6.86x | -3.60x | -0.39x | 0.48x | 0.29x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 8K |
| Taxes Paid | 6.68M | 6.54M | 4.69M | 283K | 204K | 70K |
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.
Key Metrics
Top Statement Risk
SMS margin compression risk
Metrics are mathematically derived from official filings.
Cash Conversion Diverges from GAAP Losses
Despite cumulative net losses of $77M over ten quarters, operating cash flow totaled $512M, per reported figures, indicating substantial non-cash add-backs and working capital benefits masking underlying profitability.
The persistent gap between net income and operating cash flow is driven primarily by stock-based compensation, which averaged over $40M per quarter, and favorable working capital swings. This suggests that reported losses are not indicative of cash burn, but investors should monitor the sustainability of these non-cash adjustments as SBC growth normalizes.
Free Cash Flow Inflects on Seasonal Strength
Free cash flow margin expanded from 10.9% in 2024Q1 to 18.7% in 2026Q2, per financial statements, with Q4 2025 peaking at 25.0%, reflecting strong seasonal collections and disciplined capex.
The trajectory shows a clear upward trend in FCF generation, with 2026Q2 FCF of $69.3M nearly triple the year-ago quarter. This improvement appears driven by operating leverage and efficient working capital management, though the 2026Q1 dip to 11.4% highlights quarterly volatility. The sustained positive FCF despite GAAP losses underscores the quality of the underlying cash-generative model.
Capital Intensity Remains Minimal
Capital expenditures averaged just 1.3% of revenue over the past ten quarters, per reported data, indicating a highly asset-light model where nearly all operating cash flow converts to free cash flow.
With capex peaking at 6.6% of revenue in 2026Q2—likely due to infrastructure investments—the overall capital intensity is negligible for a software company. This suggests that growth is not constrained by physical asset requirements, and the modest capex likely represents maintenance spending rather than aggressive expansion, allowing for high FCF conversion.
Working Capital Swings Drive Cash Flow Volatility
Working capital changes swung from -$53.5M in 2026Q1 to +$12.4M in 2026Q2, per reported figures, indicating significant quarterly variability that can obscure underlying cash generation.
The negative working capital contributions in several quarters (e.g., -$41.9M in 2025Q1) suggest timing effects from collections and payables, possibly tied to seasonal billing cycles. While this adds noise to quarterly cash flow, the cumulative effect over ten quarters is modest, implying that working capital is not a structural drag. Investors should expect continued volatility around peak retail periods.
Buybacks Accelerate Amidst Positive Cash Flow
Klaviyo deployed $333.6M on share repurchases in 2026, per reported data, while maintaining zero dividends and a debt-free balance sheet, signaling confidence in cash generation.
The repurchase activity, concentrated in 2026Q1 and Q2, represents a significant capital return to shareholders, funded by strong operating cash flow and existing cash reserves. This marks a shift from prior quarters with no buybacks, suggesting management views the stock as undervalued. However, the pace of buybacks may be unsustainable if FCF growth decelerates, warranting monitoring.
Cumulative Earnings vs Cash: A $589M Gap
Over the last ten quarters, cumulative net income was -$77M while operating cash flow totaled $512M, per reported figures, a divergence of $589M driven by non-cash charges.
This wide gap underscores the importance of cash-based metrics over GAAP earnings for Klaviyo. The primary drivers are stock-based compensation and depreciation, which are non-cash but represent real economic costs to shareholders. While the cash flow strength is encouraging, investors should recognize that SBC dilution partially offsets the cash generation, and the gap may narrow as growth normalizes.
What Could Invalidate the Base Case
The cash flow statement obscures the dilutive impact of stock-based compensation, which totaled over $400M in the last ten quarters, per reported figures, potentially masking true economic costs.
While operating cash flow appears robust, the heavy use of SBC means that reported cash generation is partly a non-cash benefit that dilutes existing shareholders. Additionally, the recent buyback acceleration may be offset by ongoing SBC issuance, reducing the net return to shareholders. Investors should monitor the net share count and the sustainability of working capital tailwinds, as a reversal could compress FCF.