Revenue growth decelerated from 35.0% in Q2 2024 to 24.6% in Q3 2026 while gross margin held within a 72.2% to 77.4% band, with operating margin improving from -12.8% to -1.2% as SG&A of $194.3M continues to dominate the cost base.
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
Margin pressure from investment spending
Metrics are mathematically derived from official filings.
Revenue Growth Gradually Moderating From Peak
Based on Klaviyo's reported quarterly figures, revenue growth eased from 35.0% in Q2 2024 to 24.6% in Q3 2026, a deceleration that appears to reflect a maturing base rather than a demand break at the current scale.
The trend shows a steady decline in year-over-year growth across ten quarters, with the Q3 2026 rate of 24.6% sitting well below the 31.6% figure cited in company intelligence, which suggests the comparison base is catching up. Guidance of $421M to $425M implies continued expansion, but the slowing rate warrants monitoring to determine whether SMS and Review modules can sustain incremental ARPU growth. Investors should watch whether sequential revenue gains hold as the company scales.
Gross Margins Holding Near Software Levels
Klaviyo's gross margin of 74.2% in Q3 2026 sits within a 72.2% to 77.4% band over the period, indicating a stable software-like cost base that may be tested by a rising mix of carrier-fee-heavy SMS revenue.
The margin range has remained relatively contained despite growth, which suggests pricing and infrastructure costs are scaling in line with revenue. The quarter-to-quarter swings, notably the drop to 72.2% in Q4 2025 and the recovery to 75.1% in Q1 2026, may reflect timing of SMS pass-through costs rather than structural change. Sustained margins near current levels would be consistent with a healthy subscription core, though the lower gross margin profile of messaging revenue warrants continued observation.
Operating Leverage Emerging but Incomplete
Operating margin improved from -12.8% in Q4 2024 to -1.2% in Q3 2026, suggesting operating income is scaling faster than revenue, though the company has not yet reached sustained profitability on reported figures.
Operating expenses, particularly SG&A at roughly 50% of revenue, have grown more slowly than gross profit over recent quarters, which implies improving overhead efficiency. The narrowing loss at the operating line points to leverage developing as the revenue base expands. However, the Q2 2026 operating loss of -4.0% and the Q3 2026 result show the trajectory is not linear, so investors should monitor whether the margin converges toward breakeven and beyond.
Net Income Turning Positive on Thin Margins
Net income swung to a $9.0M profit in Q1 2026 and $7.0M in Q4 2025 after prior losses, yet Q3 2026 net income of $704K on $387.2M revenue suggests earnings remain marginal and sensitive to non-operating items.
Reported net income has been volatile and at times exceeded operating income, which suggests non-operating gains or tax effects contributed to recent profitability. Stock-based compensation of $42.1M in Q3 2026, roughly 10.9% of revenue, is a material item that likely depresses GAAP earnings quality relative to cash-based measures. The $0.22 EPS miss referenced in company intelligence should be read alongside this dilution and cost dynamic before drawing conclusions on the durability of positive results.
SG&A Dominates a Largely Fixed Overhead Base
SG&A of $194.3M in Q3 2026 accounted for about 50% of revenue, exceeding R&D at $97.5M, indicating that go-to-market spending rather than product development is the largest operating cost driver.
The high SG&A ratio is consistent with aggressive customer acquisition in the mid-market and international expansion, and it appears to be the main reason operating margins remain negative. R&D intensity near 25% of revenue suggests continued investment in the platform and AI-related capabilities. Management's discipline is evident in SG&A growing more slowly than revenue over the period, though the absolute level warrants scrutiny against future efficiency gains.
Decelerating Growth Meets Persistent Operating Losses
The bear case centers on revenue growth slowing toward the mid-20s while operating margins remain negative, raising the question of whether the company can convert top-line growth into durable profitability without further spending increases.
Short-seller arguments would likely emphasize that the 24.6% growth rate in Q3 2026 is well below the earlier 35% range and that SBC at roughly 11% of revenue flatters the cost base relative to cash economics. Reliance on Shopify for acquisition and retention creates concentration exposure should platform terms change. Investors should monitor whether margin improvement can continue if growth decelerates further, as current results do not yet confirm that profitability will follow scale.