Klaviyo Delivers Outstanding 2025 Results: 32% Revenue Growth, Record Fourth Quarter and Raised Fiscal Year 2026 Outlook

BOSTON--( BUSINESS WIRE)-- Klaviyo (NYSE: KVYO), the B2C CRM, today announced results for its fourth quarter and fiscal year ended December 31, 2025.

“2025 was a breakout year for Klaviyo. More businesses are relying on us as the actionable infrastructure for understanding their consumers and delivering exceptional customer experiences,” said Andrew Bialecki, co-founder and co-CEO of Klaviyo. “The future of consumer engagement is autonomous, and brands are choosing Klaviyo because real-time data, personalization and automation together deliver faster execution, higher-quality experiences, and clear economic upside.”

Recent Business Highlights:

“Our results reflect strong execution and growing demand, with 32% annual revenue growth, expanding operating margins, and strong cash flow,” said Amanda Whalen, CFO of Klaviyo. “The shift toward autonomous customer experiences is reinforcing the durability of our model and accelerating our growth across multi-product adoption, enterprise wins, international expansion, and increased AI adoption, giving us confidence in our path to continued growth in 2026.”

Financial Highlights:

$ in millions (except per share amounts)

Q4 FY25

FY25

Revenue

$350.2

$1,234.0

YoY Growth

30%

32%

Gross Profit

$252.8

$921.5

Gross Margin

72%

75%

Non-GAAP Gross Profit

$254.9

$930.4

Non-GAAP Gross Margin

73%

75%

Operating Loss

$(1.8)

$(67.8)

Operating Margin

(1)%

(5)%

Non-GAAP Operating Income

$51.0

$169.2

Non-GAAP Operating Margin

15%

14%

Net income (loss) per share, basic

$0.02

$(0.11)

Net income (loss) per share, diluted

$0.02

$(0.11)

Non-GAAP net income per share, basic

$0.20

$0.71

Non-GAAP net income per share, diluted

$0.19

$0.67

Cash from Operating Activities

$93.2

$218.0

Free Cash Flow

$87.4

$200.4

Financial Outlook

$ in millions

FY26-Q1 Guidance

FY26 Guidance

Low

High

Low

High

Revenue

$346

$350

$1,501

$1,509

Year-over-year Growth Rate

23.5%

25.0%

21.5%

22.5%

Non-GAAP Operating Income

$50

$53

$218

$224

Non-GAAP Operating Margin

14.5%

15.0%

14.5%

15.0%

Fully Diluted Shares Outstanding (Millions)

307

312

Klaviyo has not provided a reconciliation of non-GAAP operating income guidance measures to the most directly comparable GAAP measures because certain items excluded from GAAP cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation is not available without unreasonable effort. Stock-based compensation-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change.

Dilutive Securities

Klaviyo has various dilutive securities. The table below details these securities (shares in millions; rounding differences may occur):

Price as of December 31, 2025

Weighted Average Exercise Price

Share price

32.47

Common stock outstanding as of 12/31/2025

304.2

Warrants outstanding

2.4

RSUs outstanding

14.6

Options outstanding

2.27

2.2

ESPP outstanding

0.2

Total estimated fully diluted shares

323.6

We have excluded the impact of the Shopify investment option of 15,743,174 shares at $88.93 per share as it was out of the money as of December 31, 2025. The investment option expires on July 28, 2030.

Conference Call Information

In conjunction with this announcement, Klaviyo will host a conference call for investors at 4:30 p.m. ET (1:30 p.m. PT) today to discuss the results for its fourth quarter and fiscal year ended December 31, 2025 and its outlook for its first quarter ending March 31, 2026 and fiscal year ending December 31, 2026. The live webcast and a replay of the webcast will be available at the Investor Relations section of Klaviyo’s website: https://investors.klaviyo.com (live and replay).

Select Defined Terms

Customers. We define a customer as a distinct paid subscription to our platform. A single organization could have multiple discrete contracting divisions or subsidiaries or brands each with paid subscriptions to our platform, which would, in general, constitute multiple distinct customers. In some cases at the customer’s request, we allow subscriptions under the same parent organization to be consolidated into a single paid subscription in which case such consolidated paid subscriptions would constitute a single customer. We measure our total number of customers as a point-in-time calculation measured as of the end of a particular period. Customers do not include persons or entities that use our platform on a free trial basis.

Customers Generating Over $50,000 of ARR. We calculate our number of customers generating over $50,000 of ARR (as defined below) as those customers that have an average ARR of greater than $50,000 over the prior twelve months (or the entire duration of the customer’s paying relationship, if it is less than twelve months) as of the date of determination. We believe the number of customers generating over $50,000 of ARR is a key performance metric to help investors and others understand and evaluate our results of operations in the same manner as our management team, as it is an indicator of our ability to grow the number of customers that are exceeding this ARR threshold, both from our existing customers expanding their usage of our platform and from our sales to larger customers. We believe this is an important indicator of our ability to continue to successfully move up market.

Customers Generating Over $1,000,000 of ARR. We calculate our number of customers generating over $1,000,000 of ARR as those customers that have an average ARR of greater than $1,000,000 over the prior twelve months (or the entire duration of the customer’s paying relationship, if it is less than twelve months) as of the date of determination.

Dollar-Based Net Revenue Retention Rate. We calculate our Dollar-Based Net Revenue Retention Rate (“NRR”) by first identifying the cohort of customers as of twelve months prior to the date of determination. We then calculate the Annualized Recurring Revenue (“ARR”) from this customer cohort as of twelve months prior to the date of determination (the “Prior Period ARR”) and the ARR from this customer cohort as of the date of determination (the “Current Period ARR”). ARR, for any date of determination, is the annualized value of existing paid subscriptions, which we calculate by taking the amount of revenue that we expect to receive in the next monthly period for our existing paid subscriptions, assuming no changes to such subscriptions in the next month, as of that date of determination, and multiplying that amount by twelve. Current Period ARR includes any expansion, price increases, and customer subscriptions that are deactivated and subsequently reactivated during the applicable twelve-month period and reflects contraction or attrition over the last twelve months from this customer cohort, but excludes any ARR from new customers in the current period. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the point-in-time NRR. We then calculate the weighted average point-in-time NRR as of the last day of each month in the current trailing twelve-month period to arrive at the NRR, with the weightings determined by the total ARR at the end of each period. We believe NRR is a key performance metric to help investors and others understand and evaluate our results of operations in the same manner as our management team, as it represents the expansion in usage of our platform by our existing customers, which is an important measure of the health of our business and future growth prospects. We measure Dollar-Based Net Revenue Retention Rate to measure this growth.

About Klaviyo

Klaviyo (CLAY-vee-oh) is an autonomous B2C CRM that powers more valuable customer experiences. We unify a flexible, scalable data platform, intelligence that gets smarter with every interaction, and action across Marketing and Service to help businesses turn real-time customer data into personalization at scale. High-growth enterprises like Mattel, TaylorMade, Glossier, Liquid Death, Daily Harvest and more than 193,000 other paying customers leverage Klaviyo’s actionable infrastructure and our more than 350 integrations to deliver measurable outcomes through faster, higher-quality experiences.

Source: Klaviyo, Inc.

Tag: IR

Forward Looking Statements

This press release includes certain “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Other than statements of historical facts, all statements contained in this press release, including, but not limited to, statements about Klaviyo’s outlook for the first quarter of fiscal year 2026 ending March 31, 2026 and the full fiscal year ending December 31, 2026, and Klaviyo’s expectations regarding possible or assumed business strategies, potential growth and innovation opportunities, new products, potential market opportunities, use of artificial intelligence and machine learning, and other similar matters, are forward-looking statements. Words such as “aim,” “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “future,” “going to,” “guidance,” “intend,” “keep,” “may,” “opportunity,” “outlook,” “plan,” “potential,” “predict,” “project,” “shall,” “should,” “strategy,” “target,” “will,” “would,” or words of similar meaning or similar references to future periods may identify these forward-looking statements, although not all forward-looking statements contain these identifying words.

Forward-looking statements reflect management’s beliefs, expectations and assumptions about future events as of the date hereof, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. These risks include, among others, the following: our ability to achieve future growth and sustain our growth rate; our ability to successfully execute our business and growth strategy, such as the success of our investment in our key growth initiatives and our ability to recognize effective areas for growth; our ability to successfully integrate with third-party platforms; our relationships with third parties, such as our marketing agency and technology partners; unfavorable conditions in our industry; our ability to attract new customers, including mid-market and enterprise customers, retain revenue from existing customers and increase sales from both new and existing customers; our ability to leverage artificial intelligence and machine learning in our products; our ability to sustain strong international growth; the success of our marketing and sales strategies; costs and expenses associated with being a public company; the impact of macroeconomic factors, including tariffs; as well as other risks and uncertainties set forth under the caption “Risk Factors” and elsewhere in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as filed with the Securities and Exchange Commission (the “SEC”), and the other filings and reports we make with the SEC from time to time, which may be obtained on our Investor Relations website at https://investors.klaviyo.com and on the SEC website at www.sec.gov. Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor(s) may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. In light of the risks, uncertainties, assumptions, and other factors, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Therefore, you should not rely on any of the forward-looking statements. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. Other than as required by law, we assume no obligation to update any forward-looking statements contained in this press release in the event of new information, future developments or otherwise.

Statement Regarding Use of Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with generally accepted accounting principles in the United States (GAAP), this press release and the accompanying tables contain non-GAAP financial measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating expenses, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per share, basic, non-GAAP net income per share, diluted, free cash flow, and free cash flow margin. The non-GAAP financial information is presented for supplemental informational purposes only and is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Please see the accompanying tables for reconciliations of these non-GAAP financial measures to their nearest GAAP equivalents.

Our non-GAAP gross profit, non-GAAP operating income, non-GAAP operating expenses, and non-GAAP net income exclude certain significant expenses and income that are required by GAAP to be recorded in our consolidated financial statements. These may include, among others, (i) material amortization of prepaid marketing expenses, (ii) stock-based compensation and related employer payroll taxes, and (iii) significant, one-time restructuring expenses. Our non-GAAP gross margin is calculated as non-GAAP gross profit divided by total revenue. Our non-GAAP operating margin is calculated as non-GAAP operating income divided by total revenue. Our non-GAAP net income per share, basic, is calculated as non-GAAP net income divided by weighted average shares outstanding - basic for purposes of calculating non-GAAP net income per share. Our non-GAAP net income per share, diluted, is calculated as non-GAAP net income divided by weighted average shares outstanding - diluted for purposes of calculating non-GAAP net income per share. Free cash flow is defined as cash and cash equivalents provided by or used in operating activities less purchases of property and equipment and capitalization of software development costs. Free cash flow margin is a non-GAAP financial measure that is calculated as free cash flow divided by total revenue.

Stock-based compensation expense includes the net effects of capitalization and amortization of stock-based compensation expense related to capitalized software. Stock-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in our business and an important part of the compensation provided to our employees. Because of varying available valuation methodologies, subjective assumptions, and the variety of equity instruments that can impact a company’s non-cash expenses, we believe that providing non-GAAP financial measures that exclude stock-based compensation expense allows for meaningful comparisons between our operating results from period to period. When evaluating the performance of its business and making operating plans, Klaviyo does not consider these items (for example, when considering the impact of equity award grants, the company places a greater emphasis on the amount of overall stockholder dilution than the accounting charges associated with such grants). The amount of employer payroll tax-related items on employee stock transactions is dependent on restricted stock unit settlements, option exercises, related stock price, and other factors that are beyond Klaviyo’s control and that do not correlate to the operation of the business. The expense related to amortization of prepaid marketing expense of warrants issued to Shopify is dependent upon estimates and assumptions; therefore, Klaviyo believes non-GAAP measures that adjust for the amortization of prepaid marketing expense provide investors a consistent basis for comparison across accounting periods. Klaviyo believes that the economic impact of the partnership is best measured in the form of stockholder dilution and as such we have provided a reconciliation that shows the full dilutive impact of all outstanding equity instruments. Overall, Klaviyo believes it is useful to exclude these expenses in order to better understand the long-term performance of its core business and to facilitate comparison of its results period-over-period and to those of peer companies. All of these non-GAAP financial measures are important tools for financial and operational decision-making and for evaluating Klaviyo’s own operating results over different periods of time.

We believe that all these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to decision making by our management, who use these measures as important tools for financial and operational decision-making and for evaluating Klaviyo’s own operating results over different periods of time.

Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures versus their nearest GAAP equivalents. Other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. Further, stock-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in Klaviyo’s business and an important part of the compensation provided to attract and retain its employees to create long-term incentive alignment with stockholders.

Klaviyo, Inc.

Consolidated Balance Sheet

(In Thousands)

As of

December 31, 2025

December 31, 2024

Assets

Current assets:

Cash and cash equivalents

1,064,875

881,473

Restricted cash

738

375

Accounts receivable, net of allowance for doubtful accounts

60,714

43,095

Deferred contract acquisition costs, current

29,634

20,544

Prepaid expenses and other current assets

50,115

34,262

Total current assets

1,206,076

979,749

Property and equipment, net

80,341

48,200

Right-of-use assets, net

101,126

42,917

Deferred contract acquisition costs, non-current

47,769

32,527

Restricted cash, non-current

—

739

Prepaid marketing expense

132,849

153,346

Other non-current assets

12,443

15,830

Total assets

1,580,604

1,273,308

Liabilities, redeemable common stock, and stockholders' equity

Current liabilities:

Accounts payable

29,072

14,579

Accrued expenses

125,159

99,828

Lease liabilities, current

24,757

20,989

Deferred revenue

103,245

64,497

Total current liabilities

282,233

199,893

Lease liabilities, non-current

95,991

32,449

Other non-current liabilities

5,820

6,979

Total liabilities

384,044

239,321

Stockholders' equity

Preferred stock

—

Common stock - Series A

144

Common stock - Series B

160

184

Additional paid-in capital

2,073,209

1,878,899

Accumulated deficit

(876,953

)

(845,185

)

Total stockholders' equity

1,196,560

1,033,987

Total liabilities, redeemable common stock, and stockholders' equity

1,580,604

1,273,308

Klaviyo, Inc.

Consolidated GAAP Statement of Operations

(In Thousands, Except Share and Per Share Data)

Three Months Ended December 31,

2025

2024

Revenue

350,195

270,164

Cost of revenue

97,444

71,738

Gross profit

252,751

198,426

Operating expenses:

Selling and marketing

128,431

117,832

Research and development

76,733

70,858

General and administrative

49,433

44,390

Total operating expenses

254,597

233,080

Operating loss

(1,846

)

(34,654

)

Other (expense) income

(511

)

526

Interest income

10,089

9,553

Total other income

9,578

10,079

Income (loss) before income taxes

7,732

(24,575

)

Provision for income taxes

704

2,398

Net income (loss)

7,028

(26,973

)

Net income (loss) per share attributable to Series A and Series B common stockholders

Basic

0.02

(0.10

)

Diluted

0.02

(0.10

)

Weighted average common shares outstanding

Basic

303,024,003

270,839,378

Diluted

307,243,102

270,839,378

Klaviyo, Inc.

Consolidated GAAP Statement of Operations

(In Thousands, Except Share and Per Share Data)

Year Ended December 31,

2025

2024

Revenue

1,234,019

937,464

Cost of revenue

312,523

221,305

Gross profit

921,496

716,159

Operating expenses:

Selling and marketing

506,241

404,209

Research and development

291,209

238,459

General and administrative

191,804

157,569

Total operating expenses

989,254

800,237

Operating loss

(67,758

)

(84,078

)

Other (expense) income

(2,162

)

816

Interest income

39,402

39,582

Total other income

37,240

40,398

Loss before income taxes

(30,518

)

(43,680

)

Provision for income taxes

1,250

2,462

Net loss

(31,768

)

(46,142

)

Net loss per share attributable to Series A and Series B common stockholders, basic and diluted

(0.11

)

(0.17

)

Weighted average common shares outstanding, basic and diluted

290,896,895

266,336,826

Klaviyo, Inc.

Consolidated Statement of Cash Flows

(In Thousands)

Three Months Ended December 31,

2025

2024

Operating activities

Net income (loss)

7,028

(26,973

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization expense

5,506

4,946

Non-cash operating lease costs

6,509

3,120

Amortization of deferred contract acquisition costs

8,423

5,911

Amortization of prepaid marketing expense

13,224

Loss on disposal of property and equipment

147

203

Bad debt expense

160

610

Stock-based compensation expense

37,863

34,522

Deferred income tax

(1,561

)

1,117

Other

—

Changes in operating assets and liabilities:

Accounts receivable

369

(9,242

)

Deferred contract acquisition costs

(19,116

)

(9,949

)

Prepaid expenses, prepaid taxes, and other assets

(5,057

)

(3,275

)

Accounts payable

5,283

2,182

Accrued expenses

26,207

36,851

Deferred revenue

15,319

11,565

Operating lease liabilities

(6,370

)

(4,917

)

Other non-current liabilities

(774

)

184

Net cash provided by operating activities

93,160

60,089

Investing activities

Acquisition of property and equipment

(2,466

)

(2,346

)

Capitalization of software development costs

(3,246

)

(3,282

)

Net cash used in investing activities

(5,712

)

(5,628

)

Financing activities

Proceeds from exercise of common stock awards

471

3,497

Cash paid for finance leases

—

)

Proceeds from exercise of warrants

Employee taxes paid related to net share settlement of stock-based awards

(4,920

)

(4,401

)

Proceeds from employee stock purchase plan

1,604

1,131

Net cash (used in) provided by financing activities

(2,840

)

228

Net increase in cash, cash equivalents, and restricted cash

84,608

54,689

Cash, cash equivalents, and restricted cash, beginning of period

981,005

827,898

Cash, cash equivalents, and restricted cash, end of period

1,065,613

882,587

Klaviyo, Inc.

Consolidated Statement of Cash Flows

(In Thousands)

Year Ended December 31,

2025

2024

Operating activities

Net loss

(31,768

)

(46,142

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization expense

18,598

17,717

Non-cash operating lease costs

24,754

12,682

Amortization of deferred contract acquisition costs

29,949

19,752

Amortization of prepaid marketing expense

52,897

Gain on derecognition of asset retirement obligation

(588

)

—

Loss on disposal of property and equipment

776

235

Bad debt expense

2,044

741

Stock-based compensation expense

162,031

135,212

Deferred income tax

(3,062

)

559

Other

—

Changes in operating assets and liabilities:

Accounts receivable

(19,663

)

(20,761

)

Deferred contract acquisition costs

(54,281

)

(34,448

)

Prepaid expenses, prepaid taxes, and other assets

(6,796

)

(17,296

)

Accounts payable

12,034

113

Accrued expenses

17,534

36,169

Deferred revenue

38,741

24,397

Operating lease liabilities

(23,846

)

(16,722

)

Other non-current liabilities

(1,347

)

840

Net cash provided by operating activities

218,007

165,955

Investing activities

Acquisition of property and equipment

(9,485

)

(5,921

)

Capitalization of software development costs

(18,980

)

(11,305

)

Acquisition of business

(2,031

)

—

Net cash used in investing activities

(30,496

)

(17,226

)

Financing activities

Proceeds from exercise of common stock options

2,203

9,741

Cash paid for finance leases

—

(19

)

Proceeds from exercise of warrants

Employee taxes paid related to net share settlement of stock-based awards

(17,975

)

(23,665

)

Proceeds from employee stock purchase plan

11,272

8,130

Net cash used in financing activities

(4,485

)

(5,799

)

Net increase in cash, cash equivalents, and restricted cash

183,026

142,930

Cash, cash equivalents, and restricted cash, beginning of year

882,587

739,657

Cash, cash equivalents, and restricted cash, end of year

1,065,613

882,587

Klaviyo, Inc.

Reconciliation of Gross Profit to Non-GAAP Gross Profit

(In Thousands)

Three Months Ended December 31,

2025

2024

Gross profit

252,751

198,426

Stock-based compensation

2,018

1,885

Employer payroll tax on employee stock transactions

154

261

Non-GAAP gross profit

254,923

200,572

Gross margin

72.2

73.4

Non-GAAP gross margin

72.8

74.2

Klaviyo, Inc.

Reconciliation of Operating Loss to Non-GAAP Operating Income

(In Thousands)

Three Months Ended December 31,

2025

2024

Operating loss

(1,846

)

(34,654

)

Stock-based compensation

37,863

34,522

Employer payroll tax on employee stock transactions

1,717

2,054

Amortization of prepaid marketing

13,224

Non-GAAP operating income

50,958

15,146

Operating margin

(0.5

(12.8

Non-GAAP operating margin

14.6

5.6

Klaviyo, Inc.

Reconciliation of Net Income (Loss) to Non-GAAP Net Income

(In Thousands, Except Share and Per Share Data)

Three Months Ended December 31,

2025

2024

Net income (loss)

7,028

(26,973

)

Stock-based compensation

37,863

34,522

Employer payroll tax on employee stock transactions

1,717

2,054

Amortization of prepaid marketing

13,224

Non-GAAP net income

59,832

22,827

Non-GAAP net income per share attributable to Series A and Series B common stockholders:

Basic

0.20

0.08

Diluted

0.19

0.07

Shares used in non-GAAP per share calculations:

Basic

303,024,003

270,839,378

Diluted

307,243,102

304,521,874

Klaviyo, Inc.

Reconciliation of Operating Expenses to Non-GAAP Expenses

(In Thousands)

Three Months Ended December 31,

2025

2024

Selling and marketing

128,431

117,832

Stock-based compensation

(9,203

)

(10,929

)

Employer payroll tax on employee stock transactions

(912

)

(705

)

Amortization of prepaid marketing

(13,224

)

(13,224

)

Non-GAAP Selling and marketing

105,092

92,974

Research and development

76,733

70,858

Stock-based compensation

(18,010

)

(13,014

)

Employer payroll tax on employee stock transactions

(404

)

(923

)

Non-GAAP Research and development

58,319

56,921

General and administrative

49,433

44,390

Stock-based compensation

(8,632

)

(8,694

)

Employer payroll tax on employee stock transactions

(247

)

(165

)

Non-GAAP General and administrative

40,554

35,531

Total operating expenses

254,597

233,080

Stock-based compensation

(35,845

)

(32,637

)

Employer payroll tax on employee stock transactions

(1,563

)

(1,793

)

Amortization of prepaid marketing

(13,224

)

(13,224

)

Non-GAAP Total operating expenses

203,965

185,426

Klaviyo, Inc.

Reconciliation of Operating Cash Flow to Free Cash Flow

(In Thousands)

Three Months Ended December 31,

2025

2024

Cash Provided by operating activities

93,160

60,089

Acquisition of property and equipment

(2,466

)

(2,346

)

Capitalization of software development costs

(3,246

)

(3,282

)

Free cash flow

87,448

54,461

Operating cash flow margin

26.6

22.2

Free cash flow margin

25.0

20.2

Klaviyo, Inc.

Reconciliation of Gross Profit to Non-GAAP Gross Profit

(In Thousands)

Year Ended December 31,

2025

2024

Gross profit

921,496

716,159

Stock-based compensation

7,891

8,917

Employer payroll tax on employee stock transactions

1,035

863

Non-GAAP gross profit

930,422

725,939

Gross margin

74.7

76.4

Non-GAAP gross margin

75.4

77.4

Klaviyo, Inc.

Reconciliation of Operating Loss to Non-GAAP Operating Income

(In Thousands)

Year Ended December 31,

2025

2024

Operating loss

(67,758

)

(84,078

)

Stock-based compensation

162,031

135,212

Employer payroll tax on employee stock transactions

22,072

8,491

Amortization of prepaid marketing

52,897

Non-GAAP operating income

169,242

112,522

Operating margin

(5.5

(9.0

Non-GAAP operating margin

13.7

12.0

Klaviyo, Inc.

Reconciliation of Net Loss to Non-GAAP Net Income

(In Thousands, Except Share and Per Share Data)

Year Ended December 31,

2025

2024

Net loss

(31,768

)

(46,142

)

Stock-based compensation

162,031

135,212

Employer payroll tax on employee stock transactions

22,072

8,491

Amortization of prepaid marketing

52,897

Non-GAAP net income

205,232

150,458

Non-GAAP net income per share attributable to Series A and Series B common stockholders:

Basic

0.71

0.56

Diluted

0.67

0.50

Shares used in non-GAAP per share calculations

Basic

290,896,895

266,336,826

Diluted

306,265,633

299,068,507

Klaviyo, Inc.

Reconciliation of Operating Expenses to Non-GAAP Expenses

(In Thousands)

Year Ended December 31,

2025

2024

Selling and marketing

506,241

404,209

Stock-based compensation

(49,725

)

(40,907

)

Employer payroll tax on employee stock transactions

(3,957

)

(2,551

)

Amortization of prepaid marketing

(52,897

)

(52,897

)

Non-GAAP Selling and marketing

399,662

307,854

Research and development

291,209

238,459

Stock-based compensation

(68,178

)

(50,693

)

Employer payroll tax on employee stock transactions

(4,221

)

(3,566

)

Non-GAAP Research and development

218,810

184,200

General and administrative

191,804

157,569

Stock-based compensation

(36,237

)

(34,695

)

Employer payroll tax on employee stock transactions

(12,859

)

(1,511

)

Non-GAAP General and administrative

142,708

121,363

Total operating expenses

989,254

800,237

Stock-based compensation

(154,140

)

(126,295

)

Employer payroll tax on employee stock transactions

(21,037

)

(7,628

)

Amortization of prepaid marketing

(52,897

)

(52,897

)

Non-GAAP Total operating expenses

761,180

613,417

Klaviyo, Inc.

Reconciliation of Operating Cash Flow to Free Cash Flow

(In Thousands)

Year Ended December 31,

2025

2024

Cash provided by operating activities

218,007

165,955

Acquisition of property and equipment

(9,485

)

(5,921

)

Capitalization of software development costs

(18,980

)

(11,305

)

Employer taxes for executive option exercises

10,833

—

Free cash flow

200,375

148,729

Operating cash flow margin

17.7

Free cash flow margin

16.2

15.9