Earnings release
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Klaviyo Delivers Solid Q3 with Enterprise Growth, Multi-Product Strength, and Agent Traction 2026-11-04 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--(BUSINESS WIRE)-- Klaviyo (NYSE: KVYO), the autonomous B2C CRM, today announced results for its third quarter ended September 30, 2026. “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,” said Andrew Bialecki, co-founder and co-CEO of Klaviyo. Recent Business Highlights (all gures as of September 30, 2026): Released the latest version of Composer: more autonomous, proactive, and trusted, with connectors, skills, and artifacts. Announced Klaviyo Headless, giving customers optionality to access Klaviyo data from any AI system, including Claude and ChatGPT. Launched new embedded apps: Klaviyo in Shopify and Klaviyo in Wix, bringing Klaviyo and Composer directly into the merchant experience. Recognized in leading analyst evaluations, including the 2026 Gartner® Magic Quadrant™ for Multichannel Marketing Hubs. Grew customers to more than 211,000, with new customer wins and expansions with Frasers Group, Malbon Golf, and Voluspa. 1 1
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Large customers outpaced total company growth, with 4,725 customers generating over $50,000 of ARR, up 33% year-over-year; 390 customers generating over $250,000 of ARR, up 49% year-over-year; and 105 customers generating $500,000 of ARR, up 57% year-over-year. Drove continued platform adoption, with 22% of ARR coming from customers using 3 or more products, and continued international expansion, with 32% year-over-year revenue growth outside the Americas. Delivered NRR of 108%, driven by customer expansions, cross-sell and strong retention. Authorized a new $300 million share repurchase program following the completion of prior program. Gartner, Magic Quadrant for Multichannel Marketing Hubs, Audrey Brosnan, Tia Zervas, Suzanne Schwartz, and Julia Multedo, 22 September 2026. See below for disclaimers. “Q3 was another strong quarter with revenue up 25% year-over-year, and solid pro tability. 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 pro tably and execute our strategy to expand across multiple products, in the enterprise, and internationally, and build on the momentum with our agents,” said Erica Smith, CFO of Klaviyo. Share Repurchase Authorization Today, Klaviyo also announced that its board of directors has authorized a new share repurchase program under which the company may repurchase up to $300 million of its Series A common stock. The new program follows the completion of Klaviyo’s prior $500 million share repurchase authorization, which was completed in October. Smith continued: “The new authorization re ects 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 exibility to pursue opportunities that can accelerate our roadmap.” Third Quarter 2026 Financial Highlights: $ in millions (except per share amounts) Q3 FY26 Revenue $387.2YoY Growth 25%Gross Pro t $287.4G Mi 74% 1 2
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Gross Margin 74%Non-GAAP Gross Pro t $289.9Non-GAAP Gross Margin 75%Operating Loss $(4.5)Operating Margin (1)%Non-GAAP Operating Income $56.9Non-GAAP Operating Margin 15%Net income per share, basic $—Net income per share, diluted $—Non-GAAP net income per share, basic $0.22Non-GAAP net income per share, diluted $0.22Cash from Operating Activities $52.7Free Cash Flow $24.8Adjusted Free Cash Flow $40.1 Financial Outlook $ in millions FY26-Q4 GuidanceFY26 Guidance Revenue $421 - $425 $1,537 - $1,541Year-over-year Growth Rate ~21% ~25%Non-GAAP Operating Income $66.5 - $69.5 $233 - $236Fully Diluted Shares Outstanding (Millions)284 293 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 e ort. 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 di cult to predict and subject to constant change. Dilutive Securities Klaviyo has various dilutive securities. The table below details these securities (shares in millions; rounding di erences may occur): Price as of September30, 2026 Weighted Average Exercise Price Shares Share price $ 15.73Common stock outstanding as of 9/30/2026 282.3Warrants outstanding 1.4RSUs and PSUs outstanding 22.5Options outstanding $ 3.09 1.4 ESPP shares outstanding 0.4 Total estimated fully diluted shares 308.0 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 September 30, 2026. The investment option expires on July 28, 2030. 3
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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 third quarter ended September 30, 2026 and its outlook for its fourth quarter and scal 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 De ned Terms Customers. We de ne 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, $250,000, and $500,000 of ARR. We calculate our number of customers generating over $50,000, $250,000, and $500,000, respectively, of ARR (as de ned below) as those customers that have an average ARR of greater than $50,000, $250,000, or $500,000, respectively, 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, $250,000, and $500,000, respectively, of ARR are key performance metrics to help investors and others understand and evaluate our results of operations in the same manner as our management team, as they are indicators of our ability to grow the number of customers that are exceeding these ARR thresholds, 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. Dollar-Based Net Revenue Retention Rate. We calculate our Dollar-Based Net Revenue Retention Rate (“NRR”) by rst 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 4
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increases, and customer subscriptions that are deactivated and subsequently reactivated during the applicable twelve-month period and re ects 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 exible, 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 211,000 other paying customers leverage Klaviyo’s actionable infrastructure and our more than 400 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 fourth quarter and full scal 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 arti cial 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. 5
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Forward-looking statements re ect 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 di cult 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 e ective 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 arti cial 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 tari s; as well as other risks and uncertainties set forth under the caption “Risk Factors” and elsewhere in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, as led with the Securities and Exchange Commission (the “SEC”), and the other lings 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 di er 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 di er 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 nancial measures prepared in accordance with generally accepted accounting principles in the United States (GAAP), this press release and the accompanying tables contain non-GAAP nancial measures, including non-GAAP gross pro t, 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 ow, free cash ow margin, adjusted free cash ow, and adjusted free cash ow margin. The non-GAAP nancial 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, nancial information prepared and 6
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presented in accordance with GAAP. Please see the accompanying tables for reconciliations of these non-GAAP nancial measures to their nearest GAAP equivalents. Our non-GAAP gross pro t, non-GAAP operating income, non-GAAP operating expenses, and non-GAAP net income exclude certain signi cant expenses and income that are required by GAAP to be recorded in our consolidated nancial statements. These may include, among others, (i) material amortization of prepaid marketing expenses, (ii) stock-based compensation and related employer payroll taxes, and (iii) signi cant, one-time restructuring expenses. Our non-GAAP gross margin is calculated as non-GAAP gross pro t 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 ow is de ned as cash and cash equivalents provided by or used in operating activities less purchases of property and equipment, capitalization of software development costs, purchases of certain other non-current assets, acquisition of intangible assets, and employer taxes for executive option exercises. Free cash ow margin is a non-GAAP nancial measure that is calculated as free cash ow divided by total revenue. Adjusted free cash ow is a non-GAAP nancial measure that is calculated as free cash ow plus cash paid for asset acquisitions, including related acquisition costs. Adjusted free cash ow margin is a non-GAAP nancial measure that is calculated as adjusted free cash ow divided by total revenue. Stock-based compensation expense includes the net e ects 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 signi cant 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 nancial 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 7
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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 nancial measures are important tools for nancial and operational decision-making and for evaluating Klaviyo’s own operating results over di erent periods of time. We believe that all these non-GAAP nancial measures provide useful information about our nancial 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 nancial and operational decision-making and for evaluating Klaviyo’s own operating results over di erent periods of time. Investors are cautioned that there are material limitations associated with the use of non-GAAP nancial measures versus their nearest GAAP equivalents. Other companies may calculate non-GAAP nancial measures di erently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP nancial measures as tools for comparison. Further, stock-based compensation expense has been, and will continue to be for the foreseeable future, a signi cant 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. Gartner Disclaimers Gartner does not endorse any vendor, product or service depicted in its research publications and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s Research & Advisory organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or tness for a particular purpose. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its a liates in the U.S. and internationally, and MAGIC QUADRANT is a registered trademark of Gartner, Inc. and/or its a liates and are used herein with permission. All rights reserved. The Gartner content described herein (the “Gartner Content”) represents research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and is not a representation of fact. Gartner Content speaks as of its original publication date (and not as of the date of this earnings press release), and the opinions expressed in the Gartner Content are subject to change without notice. 8
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Klaviyo, Inc.Condensed Consolidated Balance Sheet (Unaudited)(In Thousands) As ofSeptember30, 2026 December31, 2025Assets Current assets:Cash and cash equivalents $ 705,439$1,064,875Restricted cash 738 738Accounts receivable, net of allowance for doubtful accounts81,57160,714Deferred contract acquisition costs, current 41,55029,634 Prepaid expenses and other current assets 61,51150,115 Total current assets 890,8091,206,076Property and equipment, net 94,90580,341Right-of-use assets, net 113,971101,126Deferred contract acquisition costs, non-current65,17847,769Prepaid marketing expense 117,476132,849 Other non-current assets 12,00712,443 Total assets $1,294,346$1,580,604 Liabilities and stockholders' equity Current liabilities:Accounts payable $ 21,427$ 29,072Accrued expenses 142,986125,159Lease liabilities, current 27,48424,757 Deferred revenue 125,826103,245 Total current liabilities 317,723282,233Lease liabilities, non-current 106,85095,991 Other non-current liabilities 4,014 5,820 Total liabilities 428,587384,044 Stockholders' equity Preferred stock — —Common stock - Series A 131 144Common stock - Series B 151 160Treasury Stock 29 —Additional paid-in capital 1,741,5082,073,209 Accumulated de cit (876,060) (876,953) Total stockholders' equity 865,7591,196,560 Total liabilities and stockholders' equity $1,294,346$1,580,604 Klaviyo, Inc.Condensed Consolidated GAAP Statement of Operations (Unaudited)(In Thousands, Except Share and Per Share Data)Three Months Ended September 30, 20262025 Revenue $ 387,207$ 310,880 Cost of revenue 99,82576,143 Gross pro t 287,382234,737Operating expenses:Selling and marketing 143,681127,651Research and development 97,52272,668 General and administrative 50,66845,254 Total operating expenses 291,871245,573 Operating loss (4,489) (10,836)Other expense (226) (89) Interest income 6,779 10,311 Total other income, net 6,553 10,222 Income (loss) before income taxes 2,064 (614)1360 (188) 9
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Provision (bene t) for income taxes 1,360 (188) Net income (loss) $ 704$ (426) Net income (loss) per share attributable to Series A and Series B common stockholdersBasic $ — $ —Diluted $ — $ —Weighted average common shares outstandingBasic 285,329,568300,828,017Diluted 286,472,066300,828,017 Klaviyo, Inc.Condensed Consolidated GAAP Statement of Operations (Unaudited)(In Thousands, Except Share and Per Share Data)Nine Months Ended September 30, 20262025 Revenue $1,115,788$ 883,824 Cost of revenue 290,411215,079 Gross pro t 825,377668,745Operating expenses:Selling and marketing 417,036377,810Research and development 269,486214,476 General and administrative 156,562142,371 Total operating expenses 843,084734,657 Operating loss (17,707) (65,912)Other expense (1,167) (1,651) Interest income 24,55229,313 Total other income, net 23,38527,662 Income (loss) before income taxes 5,678 (38,250) Provision for income taxes 4,785 546 Net income (loss) $ 893$ (38,796) Net income (loss) per share attributable to Series A and Series B common stockholdersBasic $ — $ (0.14)Diluted $ — $ (0.14)Weighted average common shares outstandingBasic 295,447,111286,806,721Diluted 296,701,389286,806,721 Klaviyo, Inc.Condensed Consolidated Statement of Cash Flows (Unaudited)(In Thousands)Three Months Ended September 30, 20262025 Operating activities Net income (loss) $ 704$ (426)Adjustments to reconcile net income (loss) to net cash provided by operating activities:Depreciation and amortization expense 12,668 4,380Non-cash operating lease costs 7,356 5,850Amortization of deferred contract acquisition costs11,586 7,696Amortization of prepaid marketing expense13,22413,224Loss on disposal of property and equipment (180) 210Bad debt expense 927 348Stock-based compensation expense 42,14040,437Deferred income tax — (1,501)Changes in operating assets and liabilities:Accounts receivable (3,105) (2,749)Deferred contract acquisition costs (20,841) (12,537)Prepaid expenses, prepaid taxes, and other assets8,388 2,765Accounts payable (18,041) (2,453)Accrued expenses 65 875Deferred revenue 6,287 5,208Operating lease liabilities (8,124) (6,185)(404) (382) 10
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Other non-current liabilities (404) (382) Net cash provided by operating activities 52,65054,760 Investing activities Acquisition of property and equipment (7,976) (2,274)Capitalization of software development costs(4,578) (5,431)Acquisition of business, net of cash acquired — (2,031) Acquisition of intangible assets (15,299) — Net cash used in investing activities (27,853) (9,736) Financing activities Proceeds from exercise of common stock options80 266Proceeds from exercise of warrants 3 3Employee taxes paid related to net share settlement of stock-based awards(2,061) (4,107)Proceeds from employee stock purchase plan 845 3,565 Payments for share repurchases (150,864) — Net cash used in nancing activities (151,997) (273) Net (decrease) increase in cash, cash equivalents, and restricted cash(127,200) 44,751 Cash, cash equivalents, and restricted cash, beginning of period833,377936,254 Cash, cash equivalents, and restricted cash, end of period$ 706,177$ 981,005 Klaviyo, Inc.Condensed Consolidated Statement of Cash Flows (Unaudited)(In Thousands) Nine Months Ended September 30, 20262025 Operating activities Net income (loss) $ 893$ (38,796)Adjustments to reconcile net income (loss) to net cash provided by operating activities:Depreciation and amortization expense 26,27813,092Non-cash operating lease costs 21,60718,245Amortization of deferred contract acquisition costs32,02021,526Amortization of prepaid marketing expense39,67339,673Gain on derecognition of asset retirement obligation— (588)Loss on disposal of property and equipment (24) 629Bad debt expense 1,916 1,884Stock-based compensation expense 135,290124,168Deferred income tax — (1,501)Changes in operating assets and liabilities:Accounts receivable (22,773) (20,032)Deferred contract acquisition costs (61,345) (35,165)Prepaid expenses, prepaid taxes, and other assets1,983 (1,739)Accounts payable (5,716) 6,751Accrued expenses 11,095(8,673)Deferred revenue 22,58123,422Operating lease liabilities (20,865) (17,476) Other non-current liabilities (1,806) (573) Net cash provided by operating activities 180,807124,847 Investing activities Acquisition of property and equipment (26,198) (7,019)Capitalization of software development costs(12,582) (15,734)Purchase of other non-current assets (505) —Acquisition of business, net of cash acquired — (2,031) Acquisition of intangible assets (15,299) — Net cash used in investing activities (54,584) (24,784) Financing activities Proceeds from exercise of common stock options877 1,732Proceeds from exercise of warrants 10 10Employee taxes paid related to net share settlement of stock-based awards(6,940) (13,055)Proceeds from employee stock purchase plan4,827 9,668 Payments for share repurchases (484,433) — Net cash used in nancing activities (485,659) (1,645) Net (decrease) increase in cash, cash equivalents, and restricted cash(359,436) 98,418 Cash, cash equivalents, and restricted cash, beginning of period1,065,613882,587 Cash, cash equivalents, and restricted cash, end of period$ 706,177$ 981,005 11
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Klaviyo, Inc.Reconciliation of Gross Pro t to Non-GAAP Gross Pro t (Unaudited)(In Thousands)Three Months Ended September 30, 20262025 Gross pro t $ 287,382$ 234,737Stock-based compensation 2,415 2,161 Employer payroll tax on employee stock transactions116 212 Non-GAAP gross pro t $ 289,913$ 237,110 Gross margin 74.2% 75.5%Non-GAAP gross margin 74.9% 76.3% Klaviyo, Inc.Reconciliation of Operating Loss to Non-GAAP Operating Income (Unaudited)(In Thousands)Three Months Ended September 30, 20262025 Operating loss $ (4,489) $ (10,836)Stock-based compensation 42,14040,437Employer payroll tax on employee stock transactions1,248 2,154Amortization of prepaid marketing 13,22413,224 Amortization of intangibles acquired in acquisition4,808 — Non-GAAP operating income $ 56,931$ 44,979 Operating margin (1.2)% (3.5)%Non-GAAP operating margin 14.7% 14.5% Klaviyo, Inc.Reconciliation of Net Income (Loss) to Non-GAAP Net Income (Unaudited)(In Thousands, Except Share and Per Share Data)Three Months Ended September 30, 20262025 Net income (loss) $ 704$ (426)Stock-based compensation 42,14040,437Employer payroll tax on employee stock transactions1,2482,154Amortization of prepaid marketing 13,22413,224 Amortization of intangibles acquired in acquisition4,808 — Non-GAAP net income $ 62,124$ 55,389 Non-GAAP net income per share attributable to Series A and Series B common stockholders:Basic $ 0.22$ 0.18Diluted $ 0.22$ 0.18Shares used in non-GAAP per share calculations:Basic 285,329,568300,828,017Diluted 286,472,066306,848,291 Klaviyo, Inc.R ilii fO i E NGAAPE (Udid) 12
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Reconciliation of Operating Expenses to Non-GAAP Expenses (Unaudited)(In Thousands)Three Months Ended September 30, 20262025 Selling and marketing $ 143,681$ 127,651Stock-based compensation (12,995) (14,096)Employer payroll tax on employee stock transactions(439) (795) Amortization of prepaid marketing (13,224) (13,224) Non-GAAP Selling and marketing $ 117,023$ 99,536 Research and development $ 97,522$ 72,668Stock-based compensation (15,871) (15,337)Employer payroll tax on employee stock transactions(512) (592) Amortization of intangibles acquired in acquisition(4,808) — Non-GAAP Research and development $ 76,331$ 56,739 General and administrative $ 50,668$ 45,254Stock-based compensation (10,859) (8,843) Employer payroll tax on employee stock transactions(181) (555) Non-GAAP General and administrative $ 39,628$ 35,856 Total operating expenses $ 291,871$ 245,573Stock-based compensation (39,725) (38,276)Employer payroll tax on employee stock transactions(1,132) (1,942)Amortization of prepaid marketing (13,224) (13,224) Amortization of intangibles acquired in acquisition(4,808) — Non-GAAP Total operating expenses $ 232,982$ 192,131 Klaviyo, Inc.Reconciliation of Operating Cash Flow to Free Cash Flow (Unaudited)(In Thousands)Three Months Ended September 30, 20262025 Cash provided by operating activities $ 52,650$ 54,760Acquisition of property and equipment (7,976) (2,274)Capitalization of software development costs(4,578) (5,431) Acquisition of intangible assets (15,299) — Free cash ow $ 24,797$ 47,055 Acquisition of intangible assets 15,299 — Adjusted free cash ow $ 40,096$ 47,055 Operating cash ow margin 13.6% 17.6%Free cash ow margin 6.4% 15.1%Adjusted free cash ow margin 10.4% 15.1% Klaviyo, Inc.Reconciliation of Gross Pro t to Non-GAAP Gross Pro t (Unaudited)(In Thousands) Nine Months Ended September 30, 20262025 Gross pro t $ 825,377$ 668,745Stock-based compensation 7,178 5,873 Employer payroll tax on employee stock transactions352 881 Non-GAAP gross pro t $ 832,907$ 675,499 Gross margin 74.0% 75.7%Non-GAAP gross margin 74.6% 76.4% 13
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Klaviyo, Inc.Reconciliation of Operating Loss to Non-GAAP Operating Income (Unaudited)(In Thousands) Nine Months Ended September 30, 20262025 Operating loss $ (17,707) $ (65,912)Stock-based compensation 135,290124,168Employer payroll tax on employee stock transactions4,373 20,355Amortization of prepaid marketing 39,67339,673 Amortization of intangibles acquired in acquisition4,808 — Non-GAAP operating income $ 166,437$ 118,284 Operating margin (1.6)% (7.5)%Non-GAAP operating margin 14.9% 13.4% Klaviyo, Inc.Reconciliation of Net Income (Loss) to Non-GAAP Net Income (Unaudited)(In Thousands, Except Share and Per Share Data)Nine Months Ended September 30, 20262025 Net income (loss) $ 893$ (38,796)Stock-based compensation 135,290124,168Employer payroll tax on employee stock transactions4,37320,355Amortization of prepaid marketing 39,67339,673 Amortization of intangibles acquired in acquisition4,808 — Non-GAAP net income $ 185,037$ 145,400 Non-GAAP net income per share attributable to Series A and Series B common stockholders:Basic $ 0.63$ 0.51Diluted $ 0.62$ 0.48Shares used in non-GAAP per share calculations:Basic 295,447,111286,806,721Diluted 296,701,389305,892,006 Klaviyo, Inc.Reconciliation of Operating Expenses to Non-GAAP Expenses (Unaudited)(In Thousands) Nine Months Ended September 30, 20262025 Selling and marketing $ 417,036$ 377,810Stock-based compensation (37,337) (40,522)Employer payroll tax on employee stock transactions(1,457) (3,045) Amortization of prepaid marketing (39,673) (39,673) Non-GAAP Selling and marketing $ 338,569$ 294,570 Research and development $ 269,486$ 214,476Stock-based compensation (52,748) (50,168)Employer payroll tax on employee stock transactions(1,851) (3,817) Amortization of intangibles acquired in acquisition(4,808) — Non-GAAP Research and development $ 210,079$ 160,491 General and administrative $ 156,562$ 142,371Stock-based compensation (38,027) (27,605)(713) (12612) 14
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Employer payroll tax on employee stock transactions(713) (12,612) Non-GAAP General and administrative $ 117,822$ 102,154 Total operating expenses $ 843,084$ 734,657Stock-based compensation (128,112) (118,295)Employer payroll tax on employee stock transactions(4,021) (19,474)Amortization of prepaid marketing (39,673) (39,673) Amortization of intangibles acquired in acquisition(4,808) — Non-GAAP Total operating expenses $ 666,470$ 557,215 Klaviyo, Inc.Reconciliation of Operating Cash Flow to Free Cash Flow (Unaudited)(In Thousands) Nine Months Ended September 30, 20262025 Cash provided by operating activities $ 180,807$ 124,847Acquisition of property and equipment (26,198) (7,019)Capitalization of software development costs(12,582) (15,734)Purchase of other non-current assets (505) —Acquisition of intangible assets (15,299) — Employer taxes for executive option exercises— 10,833 Free cash ow $ 126,223$ 112,927 Acquisition of intangible assets 15,299 — Adjusted free cash ow $ 141,522$ 112,927 Operating cash ow margin 16.2% 14.1%Free cash ow margin 11.3% 12.8%Adjusted free cash ow margin 12.7% 12.8% Investor Relations Brad Sills ir@klaviyo.com Press Danielle Zanatta press@klaviyo.com Source: Klaviyo, Inc. 15