Revenue growth has moderated to 27.9% as of 2026Q1, while gross margins remain pressured by SMS revenue mix, fluctuating between 72.2% and 78.6% over the last ten quarters.
| Sales/Revenue | 1.31B | 1.23B | 937.46M | 698.1M | 472.75M | 290.64M |
| Revenue Growth % | 30.27% | 31.63% | 34.29% | 47.67% | 62.66% | - |
| Cost of Goods Sold | 333.94M | 312.52M | 221.31M | 177.89M | 128.03M | 84.7M |
| COGS % of Revenue | - | 25.33% | 23.61% | 25.48% | 27.08% | 29.14% |
| Gross Profit | 978.26M | 921.5M | 716.16M | 520.21M | 344.72M | 205.94M |
| Gross Margin % | 74.55% | 74.67% | 76.39% | 74.52% | 72.92% | 70.86% |
| Gross Profit Growth % | - | 28.67% | 37.67% | 50.91% | 67.39% | - |
| Operating Expenses | 1.02B | 989.25M | 800.24M | 850.83M | 399.76M | 285.18M |
| OpEx % of Revenue | - | 80.17% | 85.36% | 121.88% | 84.56% | 98.12% |
| Selling, General & Admin | 718.63M | 698.04M | 561.78M | 588.66M | 295.68M | 219.58M |
| SG&A % of Revenue | - | 56.57% | 59.93% | 84.32% | 62.55% | 75.55% |
| Research & Development | 301.89M | 291.21M | 238.46M | 262.18M | 104.08M | 65.6M |
| R&D % of Revenue | - | 23.6% | 25.44% | 37.56% | 22.02% | 22.57% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -42.26M | -67.76M | -84.08M | -330.62M | -55.04M | -79.23M |
| Operating Margin % | -3.22% | -5.49% | -8.97% | -47.36% | -11.64% | -27.26% |
| Operating Income Growth % | - | 19.41% | 74.57% | -500.74% | 30.54% | - |
| EBITDA | -28.45M | -49.16M | -66.36M | -316.97M | -46M | -73.96M |
| EBITDA Margin % | -2.17% | -3.98% | -7.08% | -45.4% | -9.73% | -25.45% |
| EBITDA Growth % | 57.68% | 25.92% | 79.06% | -589.13% | 37.81% | - |
| D&A (Non-Cash Add-back) | 13.82M | 18.6M | 17.72M | 13.65M | 9.04M | 5.27M |
| EBIT | -42.26M | -67.76M | -84.08M | -330.62M | -55.04M | -79.07M |
| Net Interest Income | 30.14M | 39.4M | 39.58M | 24.05M | 5.54M | 131K |
| Interest Income | 39.55M | 39.4M | 39.58M | 24.05M | 5.54M | 139K |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 8K |
| Other Income/Expense | 37.62M | 37.24M | 40.4M | 23.58M | 5.93M | 159K |
| Pretax Income | -4.64M | -30.52M | -43.68M | -307.04M | -49.11M | -79.07M |
| Pretax Margin % | -0.35% | -2.47% | -4.66% | -43.98% | -10.39% | -27.21% |
| Income Tax | 4M | 1.25M | 2.46M | 1.19M | 83K | 319K |
| Effective Tax Rate % | -86.11% | -4.1% | -5.64% | -0.39% | -0.17% | -0.4% |
| Net Income | -8.64M | -31.77M | -46.14M | -308.23M | -49.19M | -79.39M |
| Net Margin % | -0.66% | -2.57% | -4.92% | -44.15% | -10.41% | -27.32% |
| Net Income Growth % | 81.75% | 31.15% | 85.03% | -526.58% | 38.04% | - |
| Net Income (Continuing) | -8.64M | -31.77M | -46.14M | -308.23M | -49.19M | -79.39M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.03 | -0.11 | -0.17 | -1.27 | -0.20 | -0.32 |
| EPS Growth % | 80.59% | 35.29% | 86.61% | -535% | 37.5% | - |
| EPS (Basic) | - | -0.11 | -0.17 | -1.27 | -0.20 | -0.32 |
| Diluted Shares Outstanding | 305.8M | 290.9M | 266.34M | 242.89M | 251.86M | 251.86M |
| Basic Shares Outstanding | 304.34M | 290.9M | 266.34M | 242.89M | 251.86M | 251.86M |
| Dividend Payout Ratio | - | - | - | - | - | - |
SMS carrier fee volatility
According to the latest quarterly financial data, Klaviyo's year-over-year revenue growth has decelerated from 35.0% in 2024Q2 to 27.9% by 2026Q1, suggesting that the initial hyper-growth phase driven by rapid merchant adoption is normalizing as the company scales within its core e-commerce market segments.
The deceleration in top-line expansion warrants caution regarding the company's ability to maintain high-teens growth rates as it penetrates deeper into the mid-market. Investors should monitor whether this trend reflects market saturation or a temporary lull in new merchant acquisition within the Shopify ecosystem.
As reported in recent income statements, Klaviyo's gross margin has fluctuated between 72.2% and 78.6% over the last ten quarters, with the most recent 75.1% figure indicating that the increasing mix of SMS revenue may be creating a structural headwind to long-term margin expansion.
The variability in gross margins appears tied to the variable costs associated with SMS delivery, which lack the high-margin profile of pure software subscriptions. This suggests that future margin expansion may be constrained unless the company successfully shifts its product mix toward higher-margin CDP and Review modules.
Based on the provided financial statements, Klaviyo achieved a positive operating margin of 0.5% in 2026Q1, marking a significant inflection point after several quarters of negative operating income, as the company demonstrates improved efficiency in managing its SG&A expenses relative to its gross profit growth.
The transition to positive operating income suggests that management is successfully scaling its infrastructure and sales organization without proportional increases in overhead. However, maintaining this leverage will require continued discipline in managing customer acquisition costs as the company expands into more competitive international markets.
Analysis of the income statement reveals that while net income reached $9.0 million in 2026Q1, this figure is heavily influenced by $41.8 million in stock-based compensation, which continues to represent a significant non-cash expense that dilutes shareholders and obscures the underlying cash-generating capability of the business.
The reliance on stock-based compensation as a primary tool for talent retention suggests that reported net income may not fully reflect the economic cost of operations. Investors should focus on free cash flow metrics to better understand the company's true ability to fund its growth without constant equity dilution.
While the company shows improving profitability, a critical challenge remains its heavy reliance on the Shopify ecosystem, as evidenced by the potential for platform-level changes to disrupt its primary lead generation funnel and compress margins through increased carrier fees or mandatory platform revenue-sharing agreements.
Short-sellers may focus on the risk that Klaviyo's growth is essentially a derivative of Shopify's success rather than a standalone competitive advantage. If the company fails to diversify its platform integrations, any slowdown in Shopify's merchant GMV could lead to a disproportionate impact on Klaviyo's subscription revenue.
Quick answers to the most common questions about buying KVYO stock.
For fiscal year 2025, Klaviyo, Inc. (KVYO) reported total revenue of $1.23B. This represents a 324.6% increase compared to $290.6M in 2021.
Klaviyo, Inc. (KVYO) reported a net loss of $31.8M for the fiscal year ending 2025.
Klaviyo, Inc. (KVYO) reported an operating income of $-67.8M, resulting in an operating profit margin of -5.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Klaviyo, Inc. (KVYO) generated $921.5M in gross profit for the year, representing a gross profit margin of 74.7%. This demonstrates the company's core pricing power and production efficiency.