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

• Market Cap: $5.55B
• Dividend Yield: N/A
• Average Volume (3M): 4.78M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• 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: 5,023,322
• 30 Day Avg. Volume: 4,784,149
• 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: 0.88
• Enterprise Value/Revenue: 3.94
• Enterprise Value/Gross Profit: 5.28
• Enterprise Value/Ebitda: -98.90
• 1Y Price Target: $34.11
• Price Target Upside: 95.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): 0.83
• Revenue Forecast (FY): $1.51B

• Rating: 64 Neutral
• Price Target: $18.50 ▲(6.26% Upside)
• Action: Reiterated Date: 03/02/26
• Date: Action: Reiterated 03/02/26

The score is driven primarily by improving financial quality (strong free cash flow, high gross margins, modest leverage) and a supportive earnings outlook with raised, derisked 2026 guidance. Offsetting this are weak technicals (stock below key moving averages with negative MACD) and limited valuation support due to negative P/E and no dividend yield provided.

Positive Factors

Strong Free Cash Flow

Sustained, rising free cash flow (~$218M in 2025) demonstrates the subscription model converts revenue to cash. That durable cash generation supports reinvestment, share repurchases and product buildout without heavy debt, improving long-term financial flexibility and strategic optionality.

Large Data Platform & High Margins

A massive dataset and high SaaS gross margins (~73%–76%) create a structural advantage: rich signals power personalization and AI agents, increasing NRR and cross-sell. This scale-driven moat supports durable unit economics and product differentiation versus newer entrants.

Strengthened Leadership & Capital Allocation

Adding an experienced co-CEO focused on go-to-market and operations plus a $500M buyback program signals deliberate management and capital-allocation cadence. This structural leadership and balance-sheet confidence supports scaling enterprise sales and disciplined shareholder returns.

Negative Factors

GAAP Profitability Gap

Persisting GAAP net losses mean the company has not yet translated strong revenue and cash flow into accounting profitability. Over the medium term this can constrain return-on-equity metrics, investor confidence, and limit options like dividends until GAAP profitability is sustained.

Growth Rate Moderation

A structural slowdown in top-line growth reduces the pace of TAM capture and raises the bar for operating leverage to deliver margin and profit expansion. Sustaining high returns will depend on enterprise expansion, cross-sell, and international execution rather than earlier hypergrowth dynamics.

Channel Mix Pressure on Gross Margin

A lasting shift toward lower-margin channels (text/WhatsApp) structurally pressures gross margins. Unless offset by price/mix improvements or infrastructure efficiencies, margin compression could limit the margin upside from operating-leverage and require higher reinvestment to sustain growth.

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 generates revenue primarily through a subscription-based model, charging customers based on the number of contacts they manage and the features they utilize. The company offers several pricing tiers that cater to different business sizes and needs, allowing clients to scale their usage as their customer base grows. Additionally, Klaviyo monetizes its services through add-on features and advanced analytics tools that provide deeper insights into customer behavior. The platform's strong integration capabilities with popular e-commerce platforms further enhance its value proposition, driving customer acquisition and retention. Strategic partnerships with e-commerce platform providers also contribute to its revenue growth by expanding its market reach and facilitating customer onboarding.

Klaviyo, Inc. Class A Financial Statement Overview

Summary

Strong and improving fundamentals: high gross margins (~73%–76%) and meaningfully positive, rising free cash flow (~$218M in 2025). Balance sheet leverage is modest (debt-to-equity ~0.05–0.10) and equity is now solidly positive, but GAAP profitability remains a gap with continued net losses.

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: 17.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 17.41 is below the 20-day moving average (MA) of 18.75, below the 50-day MA of 24.51, and below the 200-day MA of 29.23, indicating a bearish trend. The MACD of -1.91 indicates Negative momentum. The RSI at 41.24 is Neutral, neither overbought nor oversold. The STOCH value of 69.34 is Neutral, 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	64 Neutral	$5.55B	-158.07	-2.85%	―	32.81%	-36.32%
AKAM	62 Neutral	$14.15B	31.75	9.17%	―	4.21%	-0.63%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CFLT	61 Neutral	$10.98B	―	-27.72%	―	21.58%	18.88%
DBX	60 Neutral	$5.82B	13.44	―	―	-0.44%	2.47%
VRNS	54 Neutral	$2.71B	-20.36	-24.53%	―	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.

Klaviyo Appoints Chano Fernández as Co-CEO

On December 8, 2025, Klaviyo’s Board of Directors appointed Chano Fernández as co-Chief Executive Officer, effective January 1, 2026, alongside co-founder Andrew Bialecki. This strategic move aims to enhance Klaviyo’s capacity to pursue global opportunities and lead the AI revolution in the B2C CRM sector, with Fernández focusing on go-to-market and operations while Bialecki drives the company’s AI vision.

The most recent analyst rating on (KVYO) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on Klaviyo, Inc. Class A stock, see the KVYO Stock Forecast page.

Klaviyo Reports Record Black Friday Cyber Monday Sales

On December 2, 2025, Klaviyo, Inc. reported record-breaking results for the 2025 Black Friday Cyber Monday period, with a 27% year-over-year increase in Klaviyo Attributed Value, reaching $3.8 billion. The company’s AI-powered personalization and loyalty strategies led to significant growth in consumer engagement and spending, despite a decrease in discount rates across the industry. The report highlighted that consumer loyalty and AI-driven recommendations were key drivers of performance, with repeat customers contributing significantly to sales growth. Klaviyo’s approach demonstrated that brands could achieve strong results by focusing on customer relationships and personalized experiences rather than relying solely on discounts.

The most recent analyst rating on (KVYO) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Klaviyo, Inc. Class A stock, see the KVYO Stock Forecast page.