Klaviyo (KVYO) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $358 million, up 28% year-over-year, with record operating margin since IPO and strong enterprise, international, and platform momentum.

• Customer base expanded to over 196,000 across 100+ countries, with 4,175 customers generating over $50,000 ARR, up 38% year-over-year.

• AI-driven products Composer and Customer Agent are accelerating adoption and value, with Composer showing strong early results in private preview.

• CFO Amanda Whalen will step down in August 2026, with a transition plan in place.

• Net income was $9.0 million, a turnaround from a net loss of $14.1 million in Q1 2025, reflecting improved operating leverage.

Financial highlights

• Revenue: $358 million, up 28% year-over-year, exceeding expectations.

• Non-GAAP operating income: $58.6 million (16% margin), up nearly 500 basis points year-over-year.

• Non-GAAP gross margin: 76%; non-GAAP operating expenses were 59% of revenue, down 560 basis points year-over-year.

• Free cash flow: $18.6 million (5.2% margin); trailing 12-month free cash flow margin at 16%.

• Net Revenue Retention (NRR): 110%, up 2 points year-over-year.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $1.514–$1.522 billion (23% year-over-year growth); non-GAAP operating income guidance increased to $222–$228 million (14.5–15% margin).

• Q2 2026 revenue expected at $359–$363 million (23–24% growth), with non-GAAP operating income of $47.5–$50.5 million (13–14% margin).

• Guidance assumes continued absorption of most carrier fee increases and sufficient liquidity for operations and investments.

• Management expects continued revenue growth, but at a decelerating rate as the business matures.

• Gross margin is expected to decline modestly in the near term due to increased adoption of higher-cost messaging channels.