Klaviyo (KVYO) Q4 2025 earnings summary

Executive summary

• Achieved 32% year-over-year revenue growth in FY25, reaching $1.234 billion, with Q4 revenue at $350 million, up 30% year-over-year.

• Customer base surpassed 193,000 across 100+ countries, with strong enterprise and international momentum.

• AI-driven products and platform innovation, including Marketing Agent, Customer Agent, and Klaviyo App in ChatGPT, are driving measurable improvements in customer engagement and revenue.

• International revenue now represents over one-third of total business, with 41–42% year-over-year growth in Q4/FY25, led by Europe and new regional hubs.

• Net revenue retention rate was 110%, up over 200 basis points year-over-year, indicating strong customer expansion.

Financial highlights

• FY25 revenue: $1.234 billion, up from $937.5 million in FY24; Q4 revenue: $350 million, up 30% year-over-year.

• FY25 non-GAAP operating income: $169.2 million (14% margin); Q4 non-GAAP operating income: $51 million (15% margin).

• FY25 free cash flow: $200.4 million (16.2% margin); Q4 free cash flow: $87.4 million.

• FY25 non-GAAP gross margin: 75.4%; Q4 non-GAAP gross margin: 73%.

• FY25 non-GAAP net income: $205.2 million ($0.71 per share basic, $0.67 diluted).

Outlook and guidance

• FY26 revenue guidance: $1.501–$1.509 billion, representing 21.5–22.5% year-over-year growth.

• FY26 non-GAAP operating income projected at $218–$224 million (14.5–15% margin).

• Q1 FY26 revenue expected at $346–$350 million, with non-GAAP operating income of $50–$53 million.

• Guidance assumes minimal contribution from new AI and service products, representing potential upside.