Earnings

Klaviyo Raises 2026 Revenue Outlook To About 25% Growth, Authorizes New $300 Million Buyback

The marketing software maker finished a $500 million repurchase in October and guided fourth-quarter growth to about 21%.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

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Klaviyo Raises 2026 Revenue Outlook To About 25% Growth, Authorizes New $300 Million Buyback

Klaviyo, which makes customer relationship management software for consumer companies, raised its full-year revenue guidance to $1.537 billion to $1.541 billion, about 25% growth, after third-quarter revenue rose 25% to $387.2 million, the company said Wednesday. Its board also authorized a new buyback of up to $300 million of Series A stock.

Fourth-quarter growth slows to about 21%

Klaviyo guided fourth-quarter revenue to $421 million to $425 million, roughly 21% growth. It also guided full-year adjusted operating income to $233 million to $236 million.

Third-quarter adjusted operating income was $56.9 million, a 15% margin. Free cash flow was $24.8 million.

On standard accounting, the company posted an operating loss of $4.5 million, narrower than a $10.8 million loss a year earlier. Net income was $704,000, against a $426,000 loss in the year-earlier quarter.

A second buyback after $500 million

The new program follows a $500 million authorization the company said it completed in October. It has no expiration date, and the company can modify, suspend or end it at any time, according to the 8-K.

CFO Erica Smith said the authorization reflects "conviction in the strength of our strategy and intrinsic value of our shares at current levels."

For the first nine months, the company spent $484.4 million on share repurchases. Cash and equivalents stood at $705.4 million on September 30, down from about $1.06 billion at the end of 2025. Operating cash flow for the nine months was $180.8 million.

Larger customers outgrow the base

Klaviyo's platform stores shoppers' profile and behavior data and uses it for personalized email, text and WhatsApp messaging and customer service, including AI agents. The company said it now has more than 211,000 customers.

Customers generating over $50,000 of annual recurring revenue numbered 4,725, up 33% from a year earlier. Those above $250,000 numbered 390, up 49%. Revenue outside the Americas grew 32%.

Net revenue retention was 108%, meaning existing customers spent about 8% more than a year earlier. Customers using three or more products accounted for 22% of annual recurring revenue.

Management hosts its conference call at 4:30 p.m. ET on Wednesday to discuss the quarter and the outlook.

Sources

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