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

• Market Cap: $5.66B
• Dividend Yield: N/A
• Average Volume (3M): 5.11M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: 32.81%
• EPS Growth: -36.32%
• Country: US
• Employees: 2,316
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.19
• Shares Outstanding: 145,497,440
• 10 Day Avg. Volume: 3,161,471
• 30 Day Avg. Volume: 5,113,911
• PEG Ratio: 8.42
• Price to Book (P/B): 7.89
• Price to Sales (P/S): 7.65
• P/FCF Ratio: 49.83
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 3.82
• Enterprise Value/Gross Profit: 5.12
• Enterprise Value/Ebitda: -95.92
• 1Y Price Target: $34.06
• Price Target Upside: 83.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): 0.83
• Revenue Forecast (FY): $1.51B

• Rating: 66 Neutral
• Price Target: $20.00 ▲(7.64% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is driven by improving financial quality (strong and rising free cash flow, high gross margins, and a conservatively levered balance sheet) and a positive earnings-call outlook with raised 2026 guidance and improving customer metrics (NRR ~110%, international/enterprise momentum). Offsetting these strengths are mixed technicals (below longer-term moving averages with negative MACD) and weaker valuation support due to ongoing net losses (negative P/E, no dividend).

Positive Factors

Strong cash generation

Consistently positive and rising free cash flow (~$218M in 2025) provides durable funding for product investment, international expansion, and the $500M buyback, reducing reliance on external financing and improving strategic optionality over the next 2–6 months.

High gross margins and data scale

Sustained gross margins (~73%–76%) combined with a large proprietary dataset (hundreds of billions of interactions and billions of daily signals) create durable unit economics and competitive differentiation for personalization and AI agents, supporting margin sustainability as the business scales.

Product integrations & international/enterprise momentum

Deeper Shopify interoperability plus accelerating international revenue (now >33% of sales) and ~110% NRR indicate stickiness and multi-product expansion. These structural partnerships and improving enterprise adoption support durable customer retention and scalable ARR growth beyond near-term cycles.

Negative Factors

GAAP profitability gap

Despite improving cash flow and non‑GAAP profitability, persistent GAAP net losses constrain reported returns on equity and indicate remaining investment cadence or cost items that could limit full margin conversion. Achieving sustained GAAP profitability remains a structural milestone the firm must clear.

Growth rate moderation

Management's derisked 2026 guidance signals a structural slowdown from 2025's acceleration. Slower top-line growth compresses the pace of TAM capture and extends the timeline to scale operating leverage, increasing dependency on cross-sell, enterprise wins, and international execution to sustain long-term momentum.

Enterprise GTM & leadership transition risk

Reorganizing the go-to-market and scaling an enterprise sales motion introduces multi-quarter execution risk. Leadership changes and new processes can temporarily depress win rates and sales productivity, making enterprise revenue ramp and margin benefits uncertain in the medium term.

Klaviyo, Inc. Class A Business Overview & Revenue Model

Company Description

Klaviyo, Inc., a technology company that provides a software-as-a-service platform to enable its customers to send the right messages at the right time across email, short message service (SMS), and push notifications. The company offers Klaviyo, a marketing automation platform that sends personalized and targeted messages. Its products include email marketing solution to track every click and purchase to optimize campaigns; SMS, a text marketing solution for ecommerce growth and retention; and mobile push solution that reaches customers directly on their lock screen with mobile push notifications. The company also provides Review solution to get the product reviews; and a customer data platform that helps store, analyze, and use data at scale. It serves individuals, small and medium enterprises, and companies in North America, Western Europe, Canada, the United Kingdom, Australia, and New Zealand. The was incorporated in 2012 and is based in Boston, Massachusetts.

How the Company Makes Money

Klaviyo primarily makes money by selling subscriptions to its SaaS platform. Revenue is largely generated from recurring fees that scale with a customer’s usage (commonly tied to factors like the size of a customer database and message volumes), so customers typically pay more as their audiences and sending activity grow. The company also earns revenue from SMS-related services where pricing is usage-based (e.g., based on messages sent), which can create variable revenue tied to customer campaign intensity and seasonality. A key contributor to monetization is Klaviyo’s ecosystem of integrations—especially with major e-commerce platforms and related tools—which helps drive customer acquisition and retention by embedding Klaviyo into merchants’ operational workflows; however, specific commercial terms of any particular partnership (e.g., revenue sharing) are null. Overall, the model is centered on recurring subscription and consumption-driven messaging revenue, supported by platform stickiness from data integrations and automation capabilities that increase lifetime value as customers expand their marketing programs.

Klaviyo, Inc. Class A Financial Statement Overview

Summary

Strong and improving fundamentals led by meaningfully positive and rising free cash flow (2025 FCF ~$218M) and high gross margins (~73%–76%). Balance sheet leverage is modest (debt-to-equity ~0.05–0.10) and equity has turned solidly positive, but GAAP profitability remains a gap (still net-loss making in 2025).

Income Statement

Revenue scale and momentum are strong, with 2025 growth at 693.5% following solid growth in prior years, and consistently high gross margins (~73%–76%). Profitability is still the key gap: the company remains net-loss making in 2025 (about -2.6% net margin), though losses have narrowed materially versus 2023’s steep loss profile. Overall, the income statement shows a fast-growing, high-margin software model that is improving, but not yet consistently profitable.

Balance Sheet

Leverage is modest, with low debt relative to equity in 2024–2025 (debt-to-equity ~0.05–0.10), which supports financial flexibility. Equity has swung from negative in 2021–2022 to solidly positive in 2023–2025, strengthening the capital base. The main weakness is that returns to shareholders are still negative in 2023–2025 due to net losses, indicating the balance sheet is healthier but the business is not yet earning an attractive return on that equity.

Cash Flow

Cash generation is a clear strength: operating cash flow and free cash flow are positive and rising (2025 free cash flow of ~$218M, up strongly vs. 2024). This is a notable improvement from 2021–2022 when cash flow was negative. While earnings are still negative, cash flow is meaningfully positive, indicating improving underlying cash economics and good funding capacity for growth without heavy reliance on debt.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.23B	937.46M	698.10M	472.75M	290.64M
Gross Profit	921.50M	716.16M	520.21M	344.72M	205.94M
EBITDA	-49.16M	-66.36M	-316.97M	-46.00M	-73.80M
Net Income	-31.77M	-46.14M	-308.23M	-49.19M	-79.39M
Balance Sheet
Total Assets	1.58B	1.27B	1.09B	629.08M	464.45M
Cash, Cash Equivalents and Short-Term Investments	1.06B	881.47M	738.56M	385.82M	327.91M
Total Debt	120.75M	53.44M	51.58M	62.41M	65.47M
Total Liabilities	384.04M	239.32M	174.27M	1.67B	2.70B
Stockholders Equity	1.20B	1.03B	914.78M	-1.04B	-2.24B
Cash Flow
Free Cash Flow	189.54M	148.73M	110.01M	-41.80M	-36.97M
Operating Cash Flow	218.01M	165.96M	119.37M	-23.55M	-22.74M
Investing Cash Flow	-30.50M	-17.23M	-9.36M	-18.75M	-14.23M
Financing Cash Flow	-4.49M	-5.80M	242.73M	101.30M	211.26M

Klaviyo, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KVYO, the sentiment is Negative. The current price of 18.58 is below the 20-day moving average (MA) of 18.88, below the 50-day MA of 21.20, and below the 200-day MA of 28.21, indicating a bearish trend. The MACD of -0.53 indicates Negative momentum. The RSI at 41.98 is Neutral, neither overbought nor oversold. The STOCH value of 15.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KVYO.

Klaviyo, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KVYO	66 Neutral	$5.66B	-297.33	-2.82%	―	32.81%	-36.32%
AKAM	62 Neutral	$16.01B	28.07	9.64%	―	4.21%	-0.63%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
DBX	60 Neutral	$5.83B	14.67	-35.62%	―	-0.44%	2.47%
CFLT	60 Neutral	$11.13B	-35.21	-26.98%	―	21.58%	18.88%
VRNS	54 Neutral	$2.79B	-38.13	-27.04%	―	11.37%	-34.44%

Klaviyo, Inc. Class A Corporate Events

Klaviyo Authorizes $500 Million Share Repurchase Program

On March 2, 2026, Klaviyo, Inc. announced that its board of directors had authorized a share repurchase program allowing the company to buy back up to $500 million of its issued and outstanding Series A common stock. Repurchases may occur in the open market, through privately negotiated transactions, or via other methods such as 10b5-1 plans, with the timing and volume dependent on stock price, market conditions, and other factors.

As part of this initiative, Klaviyo plans to enter imminently into an accelerated share repurchase for $100 million of its Series A common stock, signaling management’s confidence in the company’s valuation and capital position. The program has no expiration date, does not obligate Klaviyo to repurchase a specific number of shares, and may be modified, suspended, or discontinued, providing the company with flexible capital allocation options that can influence earnings per share and shareholder value over time.

The most recent analyst rating on (KVYO) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on Klaviyo, Inc. Class A stock, see the KVYO Stock Forecast page.