Key Highlights

  • Revenue was USD 387.21 million against a USD 380.02 million estimate, and EPS was USD 0.22 against USD 0.17.
  • Revenue rose 24.6% from USD 310.88 million; Net Income was USD 0.704 million against a loss of USD 0.426 million.
  • Customers over USD 50,000 of ARR numbered 4,725, and net Revenue retention was 108% against 109% a year earlier.
  • A new USD 300.0 million share repurchase program was announced on November 4, 2026, after the prior program was completed.

Klaviyo, Inc. (NYSE:KVYO) reported third quarter revenue of USD 387.21 million, up 24.6%, against an estimate of USD 380.02 million, and EPS of USD 0.22, against an estimate of USD 0.17. GAAP net income was USD 0.704 million, with an operating loss of USD 4.49 million.

Messaging Usage Drives Revenue and Cost of Revenue

Management attributed the revenue increase to new customers, geographic expansion, expanded platform usage including text messaging and WhatsApp, and new offerings. About 60% of the increase came from new customers and about 40% from existing ones. Gross Profit was USD 287.38 million, or 74.2% of revenue, against 75.5% a year earlier.

Cost of revenue rose 31.1% to USD 99.83 million, which the company tied mainly to approximately USD 14.6 million of higher outbound sending costs from text message and WhatsApp usage. Management said gross Margin would decline modestly as those volumes grow, most heavily in the fourth quarter, with scale and higher margin products partly offsetting it.

Operating expenses were USD 291.87 million, against USD 245.57 million, with Research and Development at USD 97.52 million against USD 72.67 million. Interest income was USD 6.78 million against USD 10.31 million.

Larger Accounts, Retention and New Products

The company said it had more than 211,000 customers at September 30. Customers generating over USD 50,000 of ARR numbered 4,725 against 3,563, those over USD 250,000 numbered 390 against 262, and those over USD 500,000 numbered 105 against 67. Dollar-based net revenue retention was 108% against 109%, a change management linked largely to lapping prior-year pricing changes.

On the product side, Composer, the company's Marketing and analysis agent, entered public Beta in June 2026 and became generally available to all customers in October 2026. International sales outside the Americas made up 37.0% of revenue for the nine months, and the company added operations in Canada and Germany during 2026.

Cash, Buybacks and the New Authorization

Cash, cash equivalents and restricted cash totaled USD 706.2 million at September 30, including USD 484.2 million in Money Market funds. Operating Activities provided USD 180.8 million over nine months, against USD 124.8 million a year earlier, and financing activities used USD 485.7 million, of which approximately USD 484.4 million went to the share repurchase program.

The USD 500.0 million program authorized March 2, 2026 included a USD 100.0 million accelerated repurchase that settled in April. In the third quarter the company bought 8,764,094 shares at a weighted average price of USD 17.08, and about USD 13.1 million remained available at quarter end. The Board then authorized a new USD 300.0 million program on November 4, with no time limit and no obligation to buy a set number of shares.

Numbers in Context

Revenue of USD 387.21 million sits alongside net income of USD 0.704 million, cash of USD 706.2 million and 4,725 customers above USD 50,000 of ARR. Nine-month revenue was USD 1,115.79 million, against USD 883.82 million a year earlier.

Management named its product and market priorities as continued Investment in AI-driven offerings such as Composer and Customer Agent, expansion into more industry verticals and international markets, and moving up-market with larger customers. The new USD 300.0 million authorization has no time limit.