Key Highlights

  • Third-quarter Revenue increased to USD 387.2 million from USD 310.9 million, roughly 24.5% growth (calculated), and nine-month revenue reached USD 1,115.8 million.
  • Net income reached USD 0.7 million, a swing from a USD 0.4 million loss the prior year, and the operating Deficit shrank from USD 10.8 million to USD 4.5 million.
  • The count of customers above USD 500,000 of annualized Recurring Revenue climbed to 105 from 67, a 57% increase, although dollar-based net revenue retention moved down to 108% from 109%.
  • Cash and equivalents slid to USD 705.4 million from USD 1,064.9 million at the start of the year, with USD 484.4 million paid out for repurchases during nine months.

Revenue Climbs, but Net Income Barely Clears Zero

Klaviyo (NYSE:KVYO) filed its third-quarter 10-Q on November 4, 2026. Revenue was USD 387.2 million compared with USD 310.9 million a year earlier. Gross Profit reached USD 287.4 million, a gross Margin of about 74.2% (calculated) versus about 75.5% (calculated). Operating expenses expanded to USD 291.9 million, with Research and Development up to USD 97.5 million, which still left an operating loss of USD 4.5 million. Interest income of USD 6.8 million turned that into pretax income of USD 2.1 million and net income of USD 0.7 million after a USD 1.4 million tax provision. Selling and Marketing outlays rose to USD 143.7 million from USD 127.7 million, and general and administrative costs reached USD 50.7 million. Earnings Per Share rounds to zero in the statements.

A Customer Base Shifting Toward Larger Accounts

Klaviyo sells subscription software that combines email, text, WhatsApp, service and analytics on a single platform for consumer brands, and it counted more than 211,000 customers at September 30, 2026. Accounts above USD 50,000 of annual recurring revenue reached 4,725, a 33% rise, while those above USD 250,000 reached 390, up 49%. Net revenue retention slipped to 108%, which the filing largely links to lapping earlier pricing changes. International sales outside the Americas made up 37.0% of nine-month revenue. The Composer agent became generally available in October 2026, and management expects the text and WhatsApp mix to weigh modestly on gross margin, mostly in the fourth quarter.

Buybacks Pull Down the Cash Balance While Operations Improve

Nine-month Operating Cash Flow reached USD 180.8 million, up from USD 124.8 million, yet cash and equivalents fell USD 359.4 million to USD 705.4 million. Share repurchase payments totaled USD 484.4 million under a board authorization of up to USD 500.0 million announced March 2, 2026, which included an accelerated repurchase agreement. About 29.2 million shares sit in treasury. USD 150.0 million of the cash is held in a notice deposit that needs 31 days to withdraw. Stock-based compensation totaled USD 135.3 million for the nine months, a key risk to reported profit. Cost of revenue rose faster than sales over the period, to USD 290.4 million from USD 215.1 million.

Where Things Stand

Only barely. Klaviyo (NYSE:KVYO) grew revenue about 24.5% (calculated), yet operating expenses reached USD 291.9 million, leaving a USD 4.5 million operating loss that interest income turned into a USD 0.7 million profit. The cash balance is shrinking by design through buybacks. Watch gross margin in the holiday quarter, net revenue retention, research and development spending and whether the repurchase authorization is used up. The filing offers no formal guidance, consensus comparison or stock reaction.