Revenue growth decelerated to 26.4% in 2026Q2 from 35.0% in 2024Q2, while gross margin contracted to 72.6% from 78.6%, yet operating margin improved to -4.0% from -12.8%, indicating emerging operating leverage.
Klaviyo, Inc. (KVYO) annual income statement — 5-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 |
|---|
| Sales/Revenue | 1.39B | 1.23B | 937.46M | 698.1M | 472.75M | 290.64M |
| Revenue Growth % | 28.89% | 31.63% | 34.29% | 47.67% | 62.66% | - |
| Cost of Goods Sold | 364.17M | 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 | 1.03B | 921.5M | 716.16M | 520.21M | 344.72M | 205.94M |
| Gross Margin % | 73.79% | 74.67% | 76.39% | 74.52% | 72.92% | 70.86% |
| Gross Profit Growth % | - | 28.67% | 37.67% | 50.91% | 67.39% | - |
| Operating Expenses | 1.05B | 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 | 730.02M | 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 | 321.37M | 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 | -25.9M | -67.76M | -84.08M | -330.62M | -55.04M | -79.23M |
| Operating Margin % | -1.86% | -5.49% | -8.97% | -47.36% | -11.64% | -27.26% |
| Operating Income Growth % | - | 19.41% | 74.57% | -500.74% | 30.54% | - |
| EBITDA | -1.82M | -49.16M | -66.36M | -316.97M | -46M | -73.96M |
| EBITDA Margin % | -0.13% | -3.98% | -7.08% | -45.4% | -9.73% | -25.45% |
| EBITDA Growth % | 97.85% | 25.92% | 79.06% | -589.13% | 37.81% | - |
| D&A (Non-Cash Add-back) | 16.22M | 18.6M | 17.72M | 13.65M | 9.04M | 5.27M |
| EBIT | 10.73M | -30.52M | -43.68M | -307.04M | -49.11M | -79.07M |
| Net Interest Income | 38.17M | 39.4M | 39.58M | 24.05M | 5.54M | 131K |
| Interest Income | 38.17M | 39.4M | 39.58M | 24.05M | 5.54M | 139K |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 8K |
| Other Income/Expense | 36.63M | 37.24M | 40.4M | 23.58M | 5.93M | 159K |
| Pretax Income | 10.73M | -30.52M | -43.68M | -307.04M | -49.11M | -79.07M |
| Pretax Margin % | 0.77% | -2.47% | -4.66% | -43.98% | -10.39% | -27.21% |
| Income Tax | 3.94M | 1.25M | 2.46M | 1.19M | 83K | 319K |
| Effective Tax Rate % | 36.72% | -4.1% | -5.64% | -0.39% | -0.17% | -0.4% |
| Net Income | 6.79M | -31.77M | -46.14M | -308.23M | -49.19M | -79.39M |
| Net Margin % | 0.49% | -2.57% | -4.92% | -44.15% | -10.41% | -27.32% |
| Net Income Growth % | 110.18% | 31.15% | 85.03% | -526.58% | 38.04% | - |
| Net Income (Continuing) | 6.79M | -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) | 0.02 | -0.11 | -0.17 | -1.27 | -0.20 | -0.32 |
| EPS Growth % | 108.78% | 35.29% | 86.61% | -535% | 37.5% | - |
| EPS (Basic) | - | -0.11 | -0.17 | -1.27 | -0.20 | -0.32 |
| Diluted Shares Outstanding | 296.85M | 290.9M | 266.34M | 242.89M | 251.86M | 251.86M |
| Basic Shares Outstanding | 296.85M | 290.9M | 266.34M | 242.89M | 251.86M | 251.86M |
| Dividend Payout Ratio | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
SMS margin compression risk
Metrics are mathematically derived from official filings.
Growth Deceleration Amidst AI Pivot
Klaviyo's revenue growth slowed from 35.0% in 2024Q2 to 26.4% in 2026Q2, per reported figures, suggesting a maturing core business despite AI-driven product initiatives.
The sequential deceleration in year-over-year revenue growth, from 35.0% in 2024Q2 to 26.4% in 2026Q2, indicates a gradual normalization from hypergrowth. While the absolute dollar increase remains substantial, the consistent decline in growth rate across the past ten quarters suggests the core email marketing segment is approaching saturation in its primary market. The recent guidance raise to $377M-$381M for the next quarter implies management expects a slight acceleration, but the modest magnitude relative to historical rates warrants monitoring for durability.
Gross Margin Erosion from SMS Mix
Gross margin contracted from 78.6% in 2024Q1 to 72.6% in 2026Q2, as reported, likely reflecting the increasing revenue contribution from lower-margin SMS delivery services.
The 600 basis point decline in gross margin over the observed period appears to be driven by the strategic push into SMS, which carries higher variable carrier fees compared to email. This structural shift may continue to pressure gross margins as SMS adoption grows, though the company's CDP and Review offerings could partially offset this drag. Investors should monitor the product mix disclosure to assess whether the margin erosion is a temporary phenomenon or a lasting feature of the business model.
Operating Leverage Emerging in 2026
Operating margin swung from -12.8% in 2024Q4 to -4.0% in 2026Q2, per financial statements, indicating that revenue growth is finally outpacing fixed cost increases.
The improvement in operating margin, despite a slight dip in 2026Q2, suggests that Klaviyo is beginning to realize operating leverage as SG&A and R&D expenses grow slower than revenue. The 2026Q1 operating profit of $1.7M, the first positive quarter in the dataset, marks a potential inflection point. However, the persistence of negative operating income in most quarters indicates that the company is still prioritizing growth investments over profitability, and the sustainability of this leverage depends on maintaining revenue growth while controlling sales and marketing costs.
SBC Masks Underlying Profitability
Stock-based compensation averaged over $40M per quarter, exceeding net income in most periods, as reported, suggesting reported profitability is heavily reliant on non-cash adjustments.
The substantial SBC expense, which reached $51.3M in 2026Q2, appears to be a significant drag on reported earnings, often exceeding net income. This indicates that the company's GAAP profitability is not yet reflective of its cash-generating ability, and investors should adjust for SBC to assess true economic performance. The positive net income in 2025Q4 and 2026Q1, despite negative operating income, suggests that non-operating items such as interest income are contributing to the bottom line, warranting a closer look at the quality of earnings.
SG&A Dominates Cost Structure
SG&A expenses grew from $131.1M in 2024Q1 to $192.1M in 2026Q2, as reported, representing over 50% of revenue and indicating heavy investment in sales and marketing.
The consistent increase in SG&A, both in absolute terms and as a percentage of revenue, underscores Klaviyo's aggressive go-to-market strategy to capture market share in the competitive MarTech space. While this investment has driven revenue growth, it has also kept operating margins negative for most of the period. The recent moderation in SG&A growth relative to revenue in 2026 suggests a potential shift toward efficiency, but the absolute level remains high, and any slowdown in revenue growth could quickly pressure margins.
2026Q1 Marks Profitability Inflection
Klaviyo achieved its first positive operating income of $1.7M in 2026Q1, as reported, after a series of losses, signaling a potential turning point in its path to profitability.
The transition from a -12.8% operating margin in 2024Q4 to a positive 0.5% in 2026Q1 represents a significant operational milestone, driven by a combination of revenue growth and cost discipline. Although 2026Q2 slipped back to -4.0%, the overall trend suggests that the company is approaching breakeven. This inflection may indicate that the heavy investments in product development and sales are beginning to pay off, but the sustainability of this improvement will depend on the company's ability to maintain growth while scaling efficiently.
What Could Invalidate the Base Case
Despite improving operating trends, Klaviyo's reliance on SMS for growth and heavy SBC could undermine earnings quality, as reported, if SMS margins compress further or growth decelerates.
The most significant challenge to the bullish narrative is the structural decline in gross margin, which may persist as SMS becomes a larger revenue component. Additionally, the substantial stock-based compensation, which exceeded net income in most quarters, suggests that reported profitability is not yet sustainable on a cash basis. If revenue growth continues to decelerate or SMS adoption faces consumer fatigue, the company may struggle to achieve the operating leverage implied by recent improvements, potentially leading to prolonged losses and a re-rating of the stock.