Klaviyo Delivers Solid Q3 with Enterprise Growth, Multi-Product Strength, and Agent Traction Third quarter revenue of $387.2 million, representing 25%…
Klaviyo, Inc. (KVYO) filed an SEC Form 8-K — Results of Operations and Financial Condition. Klaviyo Delivers Solid Q3 with Enterprise Growth, Multi-Product Strength, and Agent Traction Third quarter revenue of $387.2 million, representing 25% year-over-year growth Raises FY26 revenue guidance to $1.537 billion to $1.541 billion, for year-over-year growth of ~25% BOSTON,
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance provide a fresh catalyst that could move the stock in the near term.
Market read
The guidance raise positions KVYO as a growth leader in the AI‑driven marketing space, likely attracting momentum traders.
What to watch
The $300M share repurchase program could limit cash for further acquisitions.
Klaviyo Delivers Solid Q3 with Enterprise Growth, Multi-Product Strength, and Agent Traction
Q3 revenue grew 25% year-over-year to $387.2 million, non-GAAP operating income reached $56.9 million, and FY26 revenue guidance was raised to $1.537 billion to $1.541 billion. GAAP operating loss remained $(4.5) million, while free cash flow declined to $24.8 million from $47.1 million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 FY26 revenueGAAP | $387.2M | – | 25% |
| Q3 FY26 cost of revenueGAAP | 99,825 | – | – |
| Q3 FY26 gross profitGAAP | $287.4M | – | – |
| Q3 FY26 gross marginGAAP | 74.2 % | – | – |
| Q3 FY26 non-GAAP gross profitnon-GAAP | $289.9M | – | – |
| Q3 FY26 non-GAAP gross marginnon-GAAP | 74.9 % | – | – |
| Q3 FY26 selling and marketing expenseGAAP | $143.7M | – | – |
| Q3 FY26 research and development expenseGAAP | $97.52M | – | – |
| Q3 FY26 general and administrative expenseGAAP | $50.67M | – | – |
| Q3 FY26 total operating expensesGAAP | $291.9M | – | – |
| Q3 FY26 non-GAAP selling and marketing expensenon-GAAP | $117.0M | – | – |
| Q3 FY26 non-GAAP research and development expensenon-GAAP | $76.33M | – | – |
| Q3 FY26 non-GAAP general and administrative expensenon-GAAP | $39.63M | – | – |
| Q3 FY26 non-GAAP total operating expensesnon-GAAP | $233.0M | – | – |
| Q3 FY26 operating lossGAAP | −$4.49M | – | – |
| Q3 FY26 operating marginGAAP | (1.2) % | – | – |
| Q3 FY26 non-GAAP operating incomenon-GAAP | $56.93M | – | – |
| Q3 FY26 non-GAAP operating marginnon-GAAP | 14.7 % | – | – |
| Q3 FY26 other expenseGAAP | $(226) | – | – |
| Q3 FY26 interest incomeGAAP | $6.78M | – | – |
| Q3 FY26 total other income, netGAAP | $6.55M | – | – |
| Q3 FY26 income before income taxesGAAP | $2.06M | – | – |
| Q3 FY26 provision (benefit) for income taxesGAAP | $1.36M | – | – |
| Q3 FY26 net income (loss)GAAP | $704 | – | – |
| Q3 FY26 basic net income per shareGAAP | $— | – | – |
| Q3 FY26 diluted net income per shareGAAP | $— | – | – |
| Q3 FY26 non-GAAP net incomenon-GAAP | $62.12M | – | – |
| Q3 FY26 non-GAAP net income per share, basicnon-GAAP | $0.22 | – | – |
| Q3 FY26 non-GAAP net income per share, dilutednon-GAAP | $0.22 | – | – |
| Q3 FY26 cash provided by operating activitiesGAAP | $52.65M | – | – |
| Q3 FY26 operating cash flow marginnon-GAAP | 13.6 % | – | – |
| Q3 FY26 free cash flownon-GAAP | $24.80M | – | – |
| Q3 FY26 free cash flow marginnon-GAAP | 6.4 % | – | – |
| Q3 FY26 adjusted free cash flownon-GAAP | $40.10M | – | – |
| Q3 FY26 adjusted free cash flow marginnon-GAAP | 10.4 % | – | – |
| Nine months FY26 revenueGAAP | $1.12B | – | – |
| Nine months FY26 gross profitGAAP | $825.4M | – | – |
| Nine months FY26 gross marginGAAP | 74.0 % | – | – |
| Nine months FY26 non-GAAP gross profitnon-GAAP | $832.9M | – | – |
| Nine months FY26 non-GAAP gross marginnon-GAAP | 74.6 % | – | – |
| Nine months FY26 total operating expensesGAAP | $843.1M | – | – |
| Nine months FY26 non-GAAP total operating expensesnon-GAAP | $666.5M | – | – |
| Nine months FY26 operating lossGAAP | −$17.71M | – | – |
| Nine months FY26 operating marginGAAP | (1.6) % | – | – |
| Nine months FY26 non-GAAP operating incomenon-GAAP | $166.4M | – | – |
| Nine months FY26 non-GAAP operating marginnon-GAAP | 14.9 % | – | – |
| Nine months FY26 net income (loss)GAAP | $893 | – | – |
| Nine months FY26 non-GAAP net incomenon-GAAP | $185.0M | – | – |
| Nine months FY26 non-GAAP net income per share, basicnon-GAAP | $0.63 | – | – |
| Nine months FY26 non-GAAP net income per share, dilutednon-GAAP | $0.62 | – | – |
| Nine months FY26 cash provided by operating activitiesGAAP | $180.8M | – | – |
| Nine months FY26 free cash flownon-GAAP | $126.2M | – | – |
| Nine months FY26 adjusted free cash flownon-GAAP | $141.5M | – | – |
FY26-Q4 Guidance and FY26 Guidance outlook
- RevenueFY26-Q4: $421 - $425; FY26: $1,537 - $1,541
- NoteFY26-Q4 year-over-year growth rate: ~21%
- NoteFY26 year-over-year growth rate: ~25%
- NoteFY26-Q4 non-GAAP operating income: $66.5 - $69.5
- NoteFY26 non-GAAP operating income: $233 - $236
- NoteFY26-Q4 fully diluted shares outstanding (millions): 284
- NoteFY26 fully diluted shares outstanding (millions): 293
Capital returns
- Completed the prior $500 million share repurchase authorization in October.
- Board authorized a new share repurchase program of up to $300 million of Series A common stock.
- Payments for share repurchases were $(150,864) for the three months ended September 30, 2026.
- Payments for share repurchases were $(484,433) for the nine months ended September 30, 2026.
What drove it
- More than 211,000 customers as of September 30, 2026.
- 4,725 customers generated over $50,000 of ARR, up 33% year-over-year.
- 390 customers generated over $250,000 of ARR, up 49% year-over-year.
- 105 customers generated $500,000 of ARR, up 57% year-over-year.
- 22% of ARR came from customers using 3 or more products.
- Revenue outside the Americas grew 32% year-over-year.
- Dollar-Based Net Revenue Retention Rate was 108%, driven by customer expansions, cross-sell and strong retention.
- The company released the latest version of Composer, announced Klaviyo Headless, and launched embedded apps for Shopify and Wix.
Concerns
- GAAP operating loss was $(4,489), despite non-GAAP operating income of $56,931.
- GAAP gross margin was 74.2 %, compared with 75.5 % in the prior-year quarter.
- Free cash flow was $24,797, compared with $47,055 in the prior-year quarter.
- Adjusted free cash flow margin was 10.4 %, compared with 15.1 % in the prior-year quarter.
- Stock-based compensation expense was $42,140 in Q3 FY26.
- FY26-Q4 revenue guidance calls for a year-over-year growth rate of ~21%, compared with Q3 FY26 revenue growth of 25%.
What to watch
- Execution against FY26-Q4 revenue guidance of $421 - $425 and non-GAAP operating income guidance of $66.5 - $69.5.
- Growth in large-customer cohorts, including the 4,725 customers generating over $50,000 of ARR.
- Expansion of multi-product adoption beyond the reported 22% of ARR from customers using 3 or more products.
- International revenue growth, which was 32% year-over-year outside the Americas.
- NRR, reported at 108%, and the contribution from customer expansions, cross-sell and retention.
- Use of the new up to $300 million Series A common-stock repurchase authorization.
Balance sheet and cash flow
- Cash and cash equivalents were $705,439 as of September 30, 2026, compared with $1,064,875 as of December 31, 2025.
- Restricted cash was $738 as of September 30, 2026 and December 31, 2025.
- Total assets were $1,294,346 as of September 30, 2026, compared with $1,580,604 as of December 31, 2025.
- Total liabilities were $428,587 as of September 30, 2026, compared with $384,044 as of December 31, 2025.
- Deferred revenue was $125,826 as of September 30, 2026, compared with $103,245 as of December 31, 2025.
- Net cash provided by operating activities was $52,650 for the three months ended September 30, 2026, compared with $54,760.
- Net cash used in investing activities was $(27,853) for the three months ended September 30, 2026, compared with $(9,736).
- Net cash used in financing activities was $(151,997) for the three months ended September 30, 2026, compared with $(273).
- Cash, cash equivalents, and restricted cash were $706,177 at September 30, 2026, compared with $981,005 at September 30, 2025.
Analysis
Klaviyo reported Q3 FY26 revenue of $387,207, up 25% year-over-year from $310,880. The company described growth as broad-based, with large customers outpacing total-company growth. Customers generating over $50,000 of ARR rose 33% year-over-year to 4,725, customers generating over $250,000 of ARR rose 49% to 390, and customers generating $500,000 of ARR rose 57% to 105. Revenue outside the Americas grew 32% year-over-year, while NRR was 108%.
Profitability improved on both GAAP and non-GAAP operating measures. GAAP operating loss narrowed to $(4,489) from $(10,836), and GAAP operating margin was (1.2) % compared with (3.5) %. Non-GAAP operating income was $56,931 versus $44,979, with non-GAAP operating margin of 14.7 % versus 14.5 %. GAAP gross margin, however, was 74.2 %, below 75.5 % in the prior-year quarter, while non-GAAP gross margin was 74.9 % versus 76.3 %.
Cash generation remained positive but moderated in the quarter. Cash provided by operating activities was $52,650 compared with $54,760, while free cash flow was $24,797 compared with $47,055. The release identifies acquisition of intangible assets of $(15,299) in the free-cash-flow reconciliation; adjusted free cash flow was $40,096. Cash and cash equivalents stood at $705,439 at September 30, 2026, down from $1,064,875 at December 31, 2025, alongside $(484,433) of share-repurchase payments during the first nine months of FY26.
Capital allocation shifted to a renewed repurchase authorization. Klaviyo completed its prior $500 million authorization in October and authorized a new program to repurchase up to $300 million of Series A common stock. The company also reported 282.3 million common shares outstanding as of September 30, 2026 and 308.0 million total estimated fully diluted shares, excluding the Shopify investment option because it was out of the money as of September 30, 2026.
Management raised FY26 revenue guidance to $1,537 - $1,541, representing year-over-year growth of ~25%, and guided FY26 non-GAAP operating income to $233 - $236. Q4 guidance calls for revenue of $421 - $425, year-over-year growth of ~21%, and non-GAAP operating income of $66.5 - $69.5. The guide places emphasis on sustaining enterprise, multi-product, international and agent-led momentum while preserving non-GAAP profitability.
Management, verbatim
AI is taking barriers out of marketing, and as agents take on more of the work, they are only as good as the context behind them. Since our founding we have placed customer relationships and data at our core, and this puts Klaviyo at the center of this shift. We provide the engine that fuels our customers’ growth: a B2C CRM that integrates data and decisioning with purpose-built agents for marketing and customer service. That's why more than 211,000 brands around the globe trust Klaviyo to turn their customer data into personalized experiences that help them grow.
Andrew Bialecki, co-founder and co-CEO of Klaviyo
Q3 was another strong quarter with revenue up 25% year-over-year, and solid profitability. Growth was broad-based, with strength in our largest customer cohorts demonstrating our success in the enterprise and more customers landing with multiple products from day one. We continue to drive growth with disciplined investments, and our innovation engine keeps us ahead of customer needs. I have deep conviction in the runway ahead as we scale profitably and execute our strategy to expand across multiple products, in the enterprise, and internationally, and build on the momentum with our agents.
Erica Smith, CFO of Klaviyo
The new authorization reflects the board and management’s conviction in the strength of our strategy and intrinsic value of our shares at current levels. We are a growth company and our strong cash balance and consistent cash generation allow us to also prioritize organic investments in the business and maintain the flexibility to pursue opportunities that can accelerate our roadmap.
Erica Smith, CFO of Klaviyo
Not in the filing
stated, not guessed- Prior-quarter comparisons for Q3 FY26 metrics were not provided.
- Segment revenue and segment profitability were not reported.
- Debt was not reported as a separate balance-sheet line item.
- Dividend information was not reported.
- GAAP EPS numerical amounts for Q3 FY26 were not reported beyond $—.
- Prior-quarter outlook was not provided, so comparison of Q3 FY26 actual results with prior guidance is unavailable.
- Forward guidance for gross margin, operating expenses and tax rate was not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Klaviyo (NYSE: KVYO) filed an 8‑K reporting its Q3 2026 results and updated guidance.
Ticker impact
Klaviyo reported Q3 revenue of $387.2M, up 25% YoY, and raised FY26 revenue guidance to $1.537‑$1.541B.
likely upward pressure as investors price in higher revenue outlook
The company beat prior growth expectations and increased its full‑year revenue target, a material catalyst for a growth‑stage stock.
Market effects
Strengthens the B2C CRM and marketing automation sector outlook.
Positive for U.S. tech growth narratives.
May boost sentiment toward AI‑enabled marketing platforms worldwide.
Counterpoint
If the raised guidance is already priced in, the stock could face a short‑term pullback.
Key entities
- companyKlaviyo, Inc.
Provider of B2C CRM and marketing automation solutions.
