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Klaviyo, Inc. Class A (KVYO) AI Stock Analysis

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Klaviyo, Inc. Class A

(NYSE:KVYO)

Select Model

Outperform 72 (OpenAI - Gpt-5.6Sol)

Rating:72Outperform

Price Target:

$22.00

▲(25.00% Upside)

Action:Reiterated

Date:10/21/26

KVYO scores well on financial performance (notably strong and growing free cash flow, high gross margins, and low leverage) and is supported by solid, trend-positive technicals. The score is held back primarily by very expensive valuation (P/E ~912) and, from the earnings call, near-term margin and NRR headwinds plus a slightly reduced operating income outlook despite raised revenue guidance.

Positive Factors

Strong revenue growth

Raised revenue guidance and approximately 24% expected annual growth indicate continued demand for Klaviyo’s customer engagement platform. Sustained expansion supports greater operating scale, reinforces market relevance, and creates a durable base for future cross-selling and cash generation.

Negative Factors

Thin profitability

Although Klaviyo has reached slightly positive net income, its very thin margin leaves limited protection if operating expenses rise or demand moderates. Low earnings conversion also means the company still needs stronger and more consistent profitability to demonstrate durable operating leverage.

Read all positive and negative factors

Positive Factors

Negative Factors

Strong revenue growth

Read all positive factors

Klaviyo, Inc. Class A Key Performance Indicators (KPIs)

Any

Total Customers

Total Customers
Indicates the total number of clients using Klaviyo's services, highlighting market penetration and the company's ability to attract and retain users.

Chart InsightsCustomer growth is steady and appears to accelerate from 2024 onward, with recurring year-end uplifts that point to seasonality or more effective acquisition campaigns. That consistent cadence reduces execution risk and suggests the company can scale revenue through operating leverage if monetization per customer holds; however, investors should monitor churn and ARPU composition to ensure new additions aren’t diluting long‑term revenue quality.

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Klaviyo, Inc. Class A (KVYO) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$5.75B

Dividend YieldN/A

Average Volume (3M)5.88M

Price to Earnings (P/E)938.6

Beta (1Y)0.86

Revenue Growth28.89%

EPS GrowthN/A

CountryUS

Employees2,400

SectorTechnology

Sector Strength88

IndustrySoftware - Application

Share Statistics

EPS (TTM)0.02

Shares Outstanding126,937,935

10 Day Avg. Volume5,092,171

30 Day Avg. Volume5,882,591

Financial Highlights & Ratios

PEG Ratio8.36

Price to Book (P/B)7.89

Price to Sales (P/S)7.65

P/FCF Ratio49.83

Enterprise Value/Market Cap0.65

Enterprise Value/Revenue2.71

Enterprise Value/Gross Profit3.67

Enterprise Value/Ebitda109.94

Forecast

1Y Price Target

$26.76

Price Target Upside52.07% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering20

EPS Forecast (FY)0.82

Revenue Forecast (FY)$1.53B

Klaviyo, Inc. Class A Business Overview & Revenue Model

Company Description

Klaviyo, Inc. is a technology company offering a software-as-a-service (SaaS) platform that empowers its clients to send highly targeted and pertinent messages via email, text message (SMS), and push notifications. The firm's primary product, Klav...

How the Company Makes Money

Klaviyo primarily makes money by selling subscriptions to its software-as-a-service (SaaS) platform. Customers pay recurring fees to access Klaviyo’s tools for customer data management, segmentation, automation, analytics, and campaign execution (...

Klaviyo, Inc. Class A Earnings Call Summary

Earnings Call Date:Aug 05, 2026

(Q2-2026)

% Change Since: |

Next Earnings Date:Nov 04, 2026

Earnings Call Sentiment Positive

The call highlighted broad-based growth: strong revenue (+26% YoY), enterprise momentum, rapid adoption of new AI/agent products (Composer and Customer Agent), robust international expansion, and >100% ARR growth in marketing analytics. There are near-term margin pressures driven by text mix and carrier fee dynamics and a temporary NRR drag from lapping profile enforcement; Klaviyo is deliberately investing in product, infrastructure and an acquisition (Agency) which modestly reduces 2026 operating income guidance. On balance, operational and product momentum coupled with raised revenue guidance and healthy cash/repurchase activity outweigh the identified short-term margin and NRR headwinds.

Positive Updates

Strong top-line growth

Q2 revenue of $370.6M, up 26% year-over-year; company scaled to nearly $1.5B in annualized revenue run rate.

Negative Updates

Gross margin compression

Non-GAAP gross margin of 73.4%, down ~3 percentage points year-over-year driven by stronger growth in text messaging mix and higher carrier fees that were previously absorbed.

Read all updates

Q2-2026 Updates

Positive

Negative

Strong top-line growth

Q2 revenue of $370.6M, up 26% year-over-year; company scaled to nearly $1.5B in annualized revenue run rate.

Read all positive updates

Company Guidance

Klaviyo raised its FY2026 revenue guide by $12 million at the midpoint to $1.526–$1.534 billion (about 24% year‑over‑year growth) and trimmed full‑year non‑GAAP operating income to $212–$218 million (≈14% non‑GAAP operating margin), a ~$10 million reduction from the prior midpoint that includes $10–$12 million of Agency acquisition costs and continued product investment; Q3 guidance calls for $377–$381 million revenue (≈21.5%–22.5% growth) and $40–$43 million non‑GAAP operating income (10.5%–11% margin), with non‑GAAP gross margin expected to be slightly down versus Q2 and to take a greater‑than‑normal seasonal step down in Q4 as text growth outpaces the company.

Klaviyo, Inc. Class A Financial Statement Overview

Summary

Strong cash generation stands out (TTM operating cash flow ~$310M and free cash flow ~$285M with solid growth), supported by consistently high gross margins (~71–76%) and a meaningful improvement toward profitability (TTM net income slightly positive). Balance sheet leverage is conservative (debt-to-equity ~0.12) with a sizable equity base, but reported profitability remains thin (TTM net margin ~0.5%), leaving less cushion if expenses rise or demand slows.

Income Statement

Positive

Balance Sheet

Positive

Cash Flow

Very Positive

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.39B	1.23B	937.46M	698.10M	472.75M	290.64M
Gross Profit	1.03B	921.50M	716.16M	520.21M	344.72M	205.94M
EBITDA	34.23M	-11.92M	-25.96M	-293.39M	-40.07M	-73.80M
Net Income	6.79M	-31.77M	-46.14M	-308.23M	-49.19M	-79.39M
Balance Sheet
Total Assets	1.38B	1.58B	1.27B	1.09B	629.08M	464.45M
Cash, Cash Equivalents and Short-Term Investments	832.64M	1.06B	881.47M	738.56M	385.82M	327.91M
Total Debt	113.92M	120.75M	53.44M	51.58M	62.41M	65.47M
Total Liabilities	417.14M	384.04M	239.32M	174.27M	1.67B	2.70B
Stockholders Equity	967.02M	1.20B	1.03B	914.78M	-1.04B	-2.24B
Cash Flow
Free Cash Flow	244.44M	189.54M	148.73M	110.01M	-41.80M	-36.97M
Operating Cash Flow	276.08M	218.01M	165.96M	119.37M	-23.55M	-22.74M
Investing Cash Flow	-42.18M	-30.50M	-17.23M	-9.36M	-18.75M	-14.23M
Financing Cash Flow	-336.77M	-4.49M	-5.80M	242.73M	101.30M	211.26M

Klaviyo, Inc. Class A Technical Analysis

Technical Analysis Sentiment

Positive

Last Price17.60

Price Trends

50DMA

17.67

Positive

100DMA

17.07

Positive

200DMA

18.13

Positive

Market Momentum

MACD

0.97

Negative

RSI

62.97

Neutral

STOCH

88.60

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KVYO, the sentiment is Positive. The current price of 17.6 is below the 20-day moving average (MA) of 17.97, below the 50-day MA of 17.67, and below the 200-day MA of 18.13, indicating a bullish trend. The MACD of 0.97 indicates Negative momentum. The RSI at 62.97 is Neutral, neither overbought nor oversold. The STOCH value of 88.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KVYO.

Klaviyo, Inc. Class A Risk Analysis

Klaviyo, Inc. Class A disclosed 65 risk factors in its most recent earnings report. Klaviyo, Inc. Class A reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Klaviyo, Inc. Class A Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRSH	79 Outperform	$3.89B	22.69	19.50%	―	15.57%	―
ZETA	77 Outperform	$8.37B	-3,789.77	-0.26%	―	35.91%	94.31%
BRZE	73 Outperform	$5.14B	-44.45	-18.78%	―	27.44%	0.82%
KVYO	72 Outperform	$5.75B	938.60	0.61%	―	28.89%	―
AMPL	68 Neutral	$2.16B	-23.01	-46.24%	―	18.26%	-0.63%
CXM	64 Neutral	$1.55B	70.99	4.29%	―	6.35%	-79.74%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

KVYO

Klaviyo, Inc. Class A

20.18

-5.63

-21.81%

ZETA

Zeta Global Holdings Corp

33.35

15.20

83.75%

CXM

Sprinklr

6.68

-1.08

-13.92%

FRSH

Freshworks

14.90

3.60

31.86%

AMPL

Amplitude

17.26

7.24

72.26%

BRZE

Braze

45.78

17.83

63.79%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 21, 2026