0001835830-26-000007
SEC filingRevenue grew 31.6% YoY to $1.23B, driven by new customers and platform expansion; operating loss improved to 5.4% of revenue.
Klaviyo describes itself as a B2C CRM that helps consumer companies create smarter, stronger, and more valuable customer experiences. The company unifies data, intelligence, and actions into an infrastructure built for autonomy and scale. Over 193,000 businesses, from emerging creators to global enterprises, rely on the Klaviyo Data Platform (KDP) to turn real-time consumer data into personalized, revenue-driving experiences across marketing, service and beyond. Klaviyo's platform provides a single source of truth for consumer profiles, allowing businesses to understand their customers and act on that understanding immediately. The company purpose-built the KDP as a centralized, scalable, and flexible data store that allows customers to intelligently aggregate and process first-party consumer profile and event data without friction.
The filing does not disclose any reporting segments. Klaviyo operates as a single integrated platform business, with revenue generated through the sale of subscriptions to customers for the use of its platform.
Klaviyo's platform includes a range of named products and capabilities. The core is the Klaviyo Data Platform (KDP), which is embedded within Klaviyo B2C CRM and available to all customers. Advanced KDP provides enhanced data capabilities for more advanced users. In September 2025, Klaviyo launched Marketing Agent and Customer Agent, which leverage Large Language Models (LLMs) and other generative AI technologies. The company also introduced a Service suite including Customer Hub, Helpdesk, and Customer Agent. Other offerings include Klaviyo Analytics, Marketing Analytics, and Klaviyo Social (acquired with Gatsby in 2025). The platform supports marketing channels including email, text messaging, RCS, WhatsApp messaging, mobile push notifications, and social media integration.
Klaviyo's go-to-market strategy is primarily product-led, attracting the majority of new customers through inbound channels such as word-of-mouth, agency partnerships, and platform integrations. The company has built a large ecosystem of major eCommerce platforms, agency partnerships, and developers. Customers can start with a free tier or land directly with a paid subscription tier through self-service. The sales organization includes a high-velocity inside sales team focused on new customer acquisition, a mid-market and enterprise sales team, and a customer growth team. As of December 31, 2025, Klaviyo served over 193,000 customers, up from 167,000 as of December 31, 2024. The company has a strong presence in the retail and eCommerce vertical and sees growth from international customers, with geographic coverage across Americas, EMEA, and APAC. No single customer concentration is disclosed.
The market in which Klaviyo competes is evolving and highly competitive. The filing names main competitors including marketing solution providers such as Mailchimp and Braze; large, consolidated marketing automation software providers such as Adobe and Salesforce; and data-focused vendors such as providers of cloud data warehouses or operational database technologies. The company believes none of its competitors currently offer comparable solutions with the comprehensive functionality of its platform. Key competitive factors include fast time-to-value, ease of use, unified data architecture, integration with third-party applications, breadth of features, and the integration of AI technology including generative AI and autonomous AI agents.
Klaviyo's growth strategy is to expand the types of consumer experiences its platform can deliver, increase the number of those experiences, and deliver them with increasing quality and autonomy. The four stated strategy pillars are: (1) expand addressable markets and increase market share, particularly in enterprise and international adoption; (2) drive multi-offering adoption and deeper platform usage as customers consolidate marketing, service, and analytics on a shared data foundation; (3) expand usage and monetization through AI and automation, expecting increased platform usage driven by higher interaction frequency and more autonomous execution; and (4) maintain a durable model aligned with customer outcomes, where revenue scales as customers grow and engage more consumers.
As of December 31, 2025, Klaviyo had 2,368 employees located in six countries, with the substantial majority located in the United States. The company supplements its workforce with contractors and consultants. None of its employees is represented by a labor union or covered by a collective bargaining agreement. Klaviyo has not experienced any work stoppages and considers its relations with its employees to be good.
For fiscal year 2025, Klaviyo reported revenue of $1,234.0 million, a 31.6% increase from $937.5 million in 2024. Growth was driven by new customers (58% of incremental revenue) and expansion within the existing base (42%), including increased usage of text messaging, WhatsApp, and new offerings like Marketing Agent. Gross profit rose 28.7% to $921.5 million, but gross margin contracted 170 bps to 74.7% due to higher outbound communication costs from text messaging and WhatsApp volume. Operating loss improved to $67.8 million (5.4% of revenue) from $84.1 million (8.9%), as revenue growth outpaced operating expense increases. Net loss narrowed to $31.8 million from $46.2 million, benefiting from lower stock-based compensation (down from $138.8M to $162.0M? Actually increased, but overall loss decreased due to revenue growth). Interest income remained stable at $39.4 million.
Klaviyo operates as a single reportable segment. However, within the business, there are notable mix shifts: text messaging and WhatsApp now represent a growing share of revenue, contributing to gross margin pressure but higher absolute gross profit dollars. International revenue (outside Americas) accounted for 35.1% of total revenue, up from prior periods, driven by expansion in Europe and Asia Pacific. The customer base grew to over 193,000, with customers generating over $50K ARR increasing 37% to 3,912. Net revenue retention improved to 110%, indicating strong upsell and cross-sell momentum.
Management expects continued investment in innovation, international expansion, and sales headcount, with selling and marketing remaining the largest operating expense but declining as a percentage of revenue over the long term. Text messaging and WhatsApp adoption will persist, causing gross margin to decline modestly, especially in Q4 due to holiday seasonality. However, gross profit dollars are expected to increase as scale and higher-margin offerings offset some cost pressure. No specific numerical guidance was provided, but the company anticipates operating cash flow to remain positive, supporting ongoing investments in product development (R&D) and go-to-market initiatives.
Klaviyo's balance sheet is heavily cash-rich, with $1.065 billion in cash and cash equivalents as of December 31, 2025. The company has no long-term debt; the only liabilities are operating lease liabilities ($120.8 million), deferred revenue ($103.2 million), and accounts payable/accrued expenses. Shareholders' equity stands at $1.197 billion, reflecting accumulated deficits offset by significant paid-in capital. Restricted cash of $0.7 million is held for collateral. The company also holds a prepaid marketing asset of $132.8 million related to the Shopify collaboration.
The Notes disclose $929.2 million in non-cancellable purchase commitments primarily with marketing vendors and service providers, extending through 2030. The annual breakdown: $215.0 million in 2026, $231.1 million in 2027, $146.5 million in 2028, $132.8 million in 2029, and $203.9 million in 2030. Additionally, operating lease commitments total $150.8 million (undiscounted), with lease liabilities of $120.7 million on the balance sheet. No other material contractual obligations were noted.
Klaviyo has no share repurchase program or dividend policy. Capital expenditures (property and equipment plus capitalized software) totaled $28.5 million, or 2.3% of revenue. The company primarily allocates capital to organic growth, including $23.2 million in internal-use software development costs. No debt issuance or repayment occurred. The Shopify collaboration drives a significant prepaid marketing asset that is amortized over 7 years.
The company operates as a single operating segment. Geographic revenue breakdown shows the United States contributing 60% of total revenue ($741.1 million), followed by EMEA ($306.1 million combined), APAC ($127.2 million), and other Americas ($59.6 million). Long-lived assets are concentrated in the US ($171.1 million), with minimal international assets. No segment-level profit or margin data is disclosed, as the CODM relies on consolidated net loss for resource allocation.
Klaviyo's revenue growth decelerated from 34.3% in 2024 to 31.6% in 2025, with expectations of further slowing due to business maturation and competition. The company has a history of net losses, and operating expenses (especially R&D and sales) are expected to increase, making profitability uncertain. Fluctuations in quarterly results are likely due to seasonal demand (e.g., Black Friday) and other factors.
The rapid integration of AI into marketing platforms intensifies competition. Klaviyo faces threats from established players like Adobe and Salesforce, as well as emerging AI-native startups. The company must continuously innovate in AI (including autonomous agents) to avoid losing market share. Dependence on third-party platforms, particularly Shopify (77.9% of ARR), creates concentration risk; any disruption or non-renewal of the Shopify agreement (expires 2029) would materially harm the business.
International operations contribute ~40% of revenue, exposing Klaviyo to currency fluctuations, complex privacy laws (GDPR, CCPA, emerging state laws), and geopolitical uncertainties (tariffs, trade conflicts). Compliance with the EU Data Act and evolving email/text marketing regulations (TCPA, CAN-SPAM) adds cost and legal risk. Data breaches (past incidents in 2022 and 2024) highlight cybersecurity vulnerabilities that could lead to reputational damage and significant liabilities.
Klaviyo's rapid growth requires scaling infrastructure, personnel, and customer support. Failure to manage this growth could impair service quality. The move up-market to enterprise customers introduces longer sales cycles and higher costs. Acquisitions (e.g., Gatsby in 2025) may not yield expected synergies. Additionally, reliance on third-party cloud infrastructure and email deliverability partners creates operational dependencies.
Overall, Klaviyo faces a balanced set of risks centered on growth sustainability, competitive pressure from AI, and heavy reliance on key partnerships. The risk factors disclosure is comprehensive and highlights material exposures that investors should monitor, particularly revenue deceleration and Shopify concentration.
The provided excerpt from Klaviyo, Inc.'s 10-K filing does not include the Consolidated Statements of Cash Flows. Therefore, no cash flow data (operating, investing, financing, capex, or free cash flow) can be extracted. The balance sheet and auditor's report are present, but the cash flow statement is missing from the document content given. The analysis cannot proceed without explicit figures.