Klaviyo (KVYO) investor relations material

Executive summary

• Q2 2026 revenue grew 26–26.4% year-over-year to $370.6–$371 million, driven by strong enterprise, international, and multi-product adoption, as well as new AI-driven products.

• Customer base surpassed 205,000, with a 36% year-over-year increase in customers generating over $50,000 ARR and 20% of ARR from customers using three or more products.

• Announced and executed the acquisition of Agency/Agency AI, with its CEO joining as Chief Product Officer, to accelerate AI innovation.

• Launched Composer agent and Customer Agent, both showing rapid adoption and ROI, and expanded partnerships with major technology and commerce platforms.

• Major enterprise wins included Warner Music Group, Claire's, and San Francisco 49ers.

Financial highlights

• Q2 2026 revenue: $370.6–$371 million, up 26–26.4% year-over-year, exceeding guidance.

• Non-GAAP gross margin: 73–73.4%; GAAP gross margin: 72.6%.

• Non-GAAP operating income: $50.9 million (14% margin); GAAP operating loss: $15.0 million (-4% margin).

• Net revenue retention: 109% in Q2, reflecting strong gross retention and cross-sell momentum.

• Free cash flow for Q2 was $82.9 million, with a margin of 22.4%.

Outlook and guidance

• Raised full-year FY26 revenue guidance to $1.526–$1.534 billion, representing 24% year-over-year growth.

• FY26 non-GAAP operating income guidance: $212–$218 million, with a 14% margin.

• Q3 FY26 revenue expected at $377–$381 million (21.5–22.5% growth); non-GAAP operating income of $40–$43 million.

• Gross margin expected to decline slightly in Q3 and Q4 due to increased text and WhatsApp usage.