Title

Earning Preview: Klaviyo, Inc. this quarter’s revenue is expected to increase by 29.80%, and institutional views are predominantly bullish

Abstract

Klaviyo, Inc. will report fiscal fourth-quarter 2025 results on February 10, 2026, Post Market, with investors focused on revenue growth above 29.80% year over year, margin trajectory, and demand durability through the peak seasonal period.

Market Forecast

For fiscal Q4 2025, the market currently expects Klaviyo, Inc. to deliver revenue of $333.95 million, implying 29.80% year-over-year growth, adjusted EPS of $0.17, up 184.78% year over year, and EBIT of $44.77 million, up 409.53% year over year. Forecasts do not include explicit guidance for gross profit margin or net profit margin; consensus focus centers on sustaining mid-70s gross margin levels inferred from recent trends and translating seasonal demand into expanding operating profitability.

The main business is projected to benefit from peak-season volumes on the core platform, healthy customer additions, and resilient expansion within existing accounts, with prior disclosures indicating a 108% net revenue retention as of June 30, 2025. The most promising growth vector remains international operations, where EMEA and APAC posted 42.00% year-over-year revenue growth in the June 2025 quarter, with momentum expected to carry into fiscal Q4 even though a standalone revenue figure for that segment was not disclosed.

Last Quarter Review

In fiscal Q3 2025, Klaviyo, Inc. reported revenue of $310.88 million, a gross profit margin of 75.51%, GAAP net profit attributable to the parent company of -$0.43 million, a net profit margin of -0.14%, and adjusted EPS of $0.18, up 20.00% year over year.

The company exceeded revenue expectations by $11.02 million and delivered adjusted EPS $0.04 above the prior consensus, with EBIT of $44.98 million rising 33.43% year over year, highlighting improving operating leverage as revenue scaled through the quarter.

The main business delivered $310.88 million of revenue, up 32.24% year over year, driven by increased product adoption and deeper usage by existing customers during an increasingly active period for the platform.

Current Quarter Outlook

Core Platform Performance

The core platform is expected to anchor fiscal Q4 performance as seasonal usage peaks and customer cohorts deepen engagement. Consensus projections point to revenue of $333.95 million, up 29.80% year over year, and adjusted EPS of $0.17, up 184.78% year over year, suggesting solid top-line expansion alongside improving profitability dynamics. The holiday period typically concentrates activity and, when coupled with new feature adoption, can provide incremental uplift in conversions, cross-sell, and average revenue per account. This is consistent with the recent operating cadence in which the company converted seasonal demand into stronger operating income, posting $44.98 million of EBIT in fiscal Q3 and setting the stage for an expected $44.77 million of EBIT in fiscal Q4.

Gross margin resilience remains a core point of attention. The most recent quarter’s gross margin was 75.51%, and market expectations implicitly assume stability near that range as the company scales infrastructure efficiently. Profitability optics also benefit from high incremental margins on the core software layer; as volume increases across the customer base, fixed-cost absorption improves, supporting the transition from marginal losses on a GAAP net basis to stronger adjusted earnings. While net profit margin in the last quarter was -0.14%, consensus anticipates that seasonal tailwinds and disciplined cost control will tighten the gap further in fiscal Q4.

Execution-wise, investors will monitor the mix between new customer adds and expansion within existing cohorts. Sustained net revenue retention above 100%—previously cited at 108.00% as of June 30, 2025—would support the thesis that existing accounts continue to grow their engagement and spending on the platform. Combined with consistent onboarding of new accounts, this dynamic underpins the $333.95 million revenue outlook and the potential for upside if peak-season usage and conversion outperform modeled assumptions.

International Expansion as a Growth Vector

International operations continue to show notable momentum and are widely viewed as a key multiyear growth driver. The EMEA and APAC regions grew revenue by 42.00% year over year in the June 2025 quarter, a pace that—if sustained through the second half—would materially outpace the consolidated growth rate. Although the company does not break out a separate revenue figure for these regions, directional indicators such as customer growth, rising adoption of platform features, and expanding partner ecosystems support expectations for ongoing strength. Entering the holiday-heavy period for many markets, platform usage patterns and localized go-to-market investments could add incremental uplift.

From a profitability standpoint, international scaling can be margin-accretive over time when supported by efficient go-to-market motions and product-led expansion. As cohorts outside North America mature, payback periods may compress and unit economics can converge with, or surpass, more established geographies. Currency movements and regional macro conditions remain variables to watch, yet the magnitude of the 42.00% year-over-year increase provides a cushion against modest headwinds and suggests that the international segment can outgrow the consolidated business in fiscal Q4 and beyond.

The near-term watchlist for international includes confirmation of sustained demand through the December quarter and qualitative commentary on pipeline build. Any data points related to the mix of new accounts, expansion in existing accounts, or deeper usage of newer modules by international customers would help investors gauge the durability of the growth rate. Positive updates here would bolster the case that international is not only growing quickly but also diversifying the company’s overall revenue profile in a way that supports resilient aggregate growth.

Key Stock Price Drivers This Quarter

Three factors are likely to exert the greatest influence on the stock reaction around fiscal Q4 results and guidance. The first is the magnitude of any top-line surprise relative to the $333.95 million revenue consensus and its implications for fiscal 2026 trajectory. A beat driven by robust seasonal usage and improved conversion would reinforce confidence in the existing customer expansion engine and lift expectations around full-year growth. Conversely, results merely in line with consensus may lead investors to scrutinize the sustainability of the 29.80% year-over-year growth pace into the first half of fiscal 2026 when seasonality normalizes.

The second driver is the profitability mix—specifically, whether adjusted EPS of $0.17 and EBIT of $44.77 million come alongside stable or improving gross margin compared to the last quarter’s 75.51%. Commentary on cost discipline, infrastructure efficiency, and the balance between growth investments and near-term margin capture will be taken as signals for how quickly adjusted profitability can compound. Clarity on the path from a -0.14% GAAP net margin in fiscal Q3 toward sustained positive GAAP net income would likely be well received and could broaden the investor base focused on profitability milestones.

The third driver is forward-looking color on demand and guidance. With the prior fiscal-year outlook implying $1.20 billion at the midpoint as of mid-2025, investors will expect updated commentary that reconciles Q4 performance with the entry velocity into fiscal 2026. Evidence of continued high net revenue retention, healthy new customer adds, and positive cohort behavior would support a view that double-digit growth can persist even as the seasonal step-down occurs post-holiday. Updates on regional performance—especially international—and adoption patterns across newer product capabilities will also shape how investors recalibrate growth and margin expectations for the coming year.

Analyst Opinions

Analyst sentiment skews decisively bullish in the last six months, with at least eight bullish opinions versus zero bearish (one neutral) among the most recent published views. Notable calls include Morgan Stanley upgrading the shares to Buy with a $50.00 price target, Truist reaffirming a Buy at $45.00, Barclays maintaining an Overweight-equivalent at $43.00, Benchmark reiterating Buy at $46.00, and Cantor Fitzgerald maintaining Buy at $40.00; William Blair and TD Cowen also reiterated positive stances. The majority view emphasizes accelerating revenue into the seasonal peak, ongoing product innovation and automation enhancements, and improving operating leverage as key supports for upside in fiscal Q4 and into fiscal 2026. Bulls also highlight the strong year-over-year growth profile embedded in consensus—revenue up 29.80%, adjusted EPS up 184.78%, and EBIT up 409.53%—as evidence that margin expansion is increasingly additive at scale. The constructive stance suggests investors will reward signs of sustained gross margin stability around the mid-70s, continued cohort health, and confirmation that international momentum—up 42.00% year over year in the June 2025 quarter—remains intact. Should management pair a clean Q4 with confident early fiscal 2026 commentary, the majority view anticipates that valuation can absorb higher growth durability assumptions supported by rising adjusted profitability.