GET DAILY SIGNALSKlaviyo (KVYO) Reports +25% Revenue Growth in Third Quarter
Key Takeaways
- Klaviyo reported third-quarter 2026 revenue of $387.2 million, up 25% year over year and ahead of the roughly $380 million consensus estimate.
- Adjusted earnings per share (EPS) came in at $0.22, exceeding the $0.17 consensus forecast.
- GAAP (Generally Accepted Accounting Principles) net income was $704,000, while adjusted operating income reached $56.9 million.
- Management raised full-year 2026 revenue guidance to a range of $1.537 billion to $1.541 billion, implying roughly 25% growth.
- The company guided fourth-quarter revenue to $421 million–$425 million and authorized a new $300 million share repurchase program.
- Despite the beat, shares slipped about 5% in after-hours trading as investors weighed the results against elevated expectations.
- For more context, explore Klaviyo's Major News, Today's Price Move, Price Targets, and Forecast on dedicated pages.
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Why This Quarter Matters
Klaviyo operates as an autonomous B2C CRM platform that serves more than 211,000 brands by converting customer data into tailored marketing and service interactions. The third-quarter results stand out because investors have been monitoring the company's progress in sustaining 20%–25% revenue growth while improving profitability and shifting toward larger enterprise clients. The previous quarter had introduced some caution after a revenue beat was followed by an after-hours decline tied to margin questions and a tempered full-year operating income view. This report therefore served as an important checkpoint on enterprise momentum, multi-product usage, and early progress with AI agents.
The Quarter's Numbers
Revenue reached $387.2 million, marking a 25% rise from $310.9 million a year earlier and topping the roughly $380 million consensus. Adjusted EPS of $0.22 surpassed the $0.17 analyst estimate. On a GAAP basis, net income totaled $704,000, with adjusted operating income at $56.9 million. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Expansion among large enterprise accounts, greater multi-product adoption, and international growth supported the results, aided by customer expansions, cross-selling, and solid retention that bolstered net revenue retention. Management highlighted early momentum for its AI agents, which are becoming more central to the overall B2C CRM approach.
Fourth-quarter guidance calls for revenue of $421 million–$425 million and non-GAAP operating income of $66.5 million–$69.5 million. Full-year 2026 revenue guidance was lifted to $1.537 billion–$1.541 billion, pointing to about 25% growth, and a new $300 million share repurchase program was authorized.
How the Market Responded
The initial reaction was restrained. Even with the top- and bottom-line beats plus the raised full-year revenue view, shares fell roughly 5% in after-hours trading, per CNBC. This suggests investors had priced in strong expectations after a recent run-up and were perhaps seeking clearer signals of faster profitability gains or margin improvement.
Analyst views have been mixed lately, with Wells Fargo keeping a Buy rating and $24 target in late October while Goldman Sachs moved to Hold in mid-October. The after-hours pullback fits a pattern seen with other high-growth software names this season, where solid results can still prompt selling once prior momentum has raised the bar.
What to Watch Going Forward
The key question ahead is whether Klaviyo can maintain revenue growth near 25% while holding or expanding its non-GAAP operating margin. Fourth-quarter guidance implies continued top-line strength paired with measured cost control.
Enterprise adoption will stay central. Growth has increasingly come from larger clients and multi-product usage, so tracking annual recurring revenue expansion in high-value accounts will indicate how durable the trajectory remains.
Investors will also follow the rollout of AI agents, which management sees as a competitive edge in B2C CRM. Early signs are positive, yet converting that adoption into sustained revenue and retention is still unfolding. Margin trends tied to channels such as SMS and WhatsApp, along with the effect of the new buyback, will provide further signals at the next report.
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I often turn to Tickeron’s AI Screener when reviewing earnings like these. It lets me quickly filter peers by fundamentals, technical patterns, and performance metrics, which helps put a single company's results in broader context without spending hours on manual comparisons. The tool has become a regular part of how I generate and validate ideas around names in this space.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
KVYO's Stochastic Oscillator is remaining in overbought zone for 9 days
The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for KVYO moved out of overbought territory on November 03, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 23 similar instances where the indicator moved out of overbought territory. In 18 of the 23 cases, the stock moved lower in the following days. This puts the odds of a move lower at 78%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KVYO declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 80%.
KVYO broke above its upper Bollinger Band on October 20, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 01, 2026. You may want to consider a long position or call options on KVYO as a result. In 42 of 51 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 82%.
The Moving Average Convergence Divergence (MACD) for KVYO just turned positive on October 05, 2026. Looking at past instances where KVYO's MACD turned positive, the stock continued to rise in 23 of 29 cases over the following month. The odds of a continued upward trend are 79%.
KVYO moved above its 50-day moving average on October 19, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for KVYO crossed bullishly above the 50-day moving average on October 20, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 10 of 11 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 90%.
Following a +4.56% 3-day Advance, the price is estimated to grow further. Considering data from situations where KVYO advanced for three days, in 155 of 186 cases, the price rose further within the following month. The odds of a continued upward trend are 83%.
The Aroon Indicator entered an Uptrend today. In 69 of 97 cases where KVYO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 71%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 23 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 36 (best 1 - 100 worst), indicating steady price growth. KVYO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 90 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 98 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.280) is normal, around the industry mean (-1.902). KVYO's P/E Ratio (711.000) is considerably higher than the industry average of (15.583). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.824). Dividend Yield (0.000) settles around the average of (0.072) among similar stocks. P/S Ratio (3.527) is also within normal values, averaging (70.854).
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. KVYO’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
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