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KVYO, Klaviyo Inc. Series A
Klaviyo is a B2C CRM that helps consumer companies create smarter, stronger, and more valuable customer experiences.
Over 193,000 businesses, from emerging creators to global enterprises, rely on our Klaviyo Data Platform ("KDP") as the product to turn real-time consumer data into personalized, revenue-driving experiences across marketing, service and beyond.
Our B2C CRM provides a single source of truth for consumer profiles, allowing businesses to understand their customers and act on that understanding immediately.
The business
What it sells, where the money comes from, the kind of company it is.
Next report Est. 11/2–11/6 · the 10-Q for the quarter ended late September · due within 40 days of period end · has filed ~36 days after · the wire records it on arrival
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- Situation
- Net current asset value. Current assets alone exceed every liability combined, and the surplus is most of the balance sheet: the shape Graham called a net-net.
- What moves the needle
- Operating margin has run around −12% through the cycle on a 75% gross margin, the operating line in the red even at its best — so the lever is whether the spending below the gross line can come down enough to clear a profit: revenue growth against the cost curve, and the cash runway until it does. The cash cycle has run negative through the cycle (a median of −16 days): the operation is paid before it pays, so working capital releases cash as the business grows rather than tying it up. Read this kind of business on retention and the cost of growth. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Return on capital has rarely cleared the cost of capital (median −44%, above 15% in 0 of 3 years). The steadier read is owner earnings: roughly 17% of revenue reaches owners as cash, though it swings, and customers and suppliers fund the business through negative working capital. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.
Every line is arithmetic on the company's filings, shown in full in the sections below.
Where the money comes from
read the 10-K →40% of revenue comes from outside the United States.
- United States60%$741M
- Other15%$182M
- Asia Pacific10%$127M
- United Kingdom10%$124M
- Other Americas5%$60M
From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.
The record
Ten years of arithmetic, read across the cycle.
The record, 2021–2025
realized figures from each filing · older years to the left| 2021’21 | 2022’22 | 2023’23 | 2024’24 | 2025’25 | TTMTTMJun 2026 | |
|---|---|---|---|---|---|---|
| Income statement | ||||||
| $291M | $473M | $698M | $937M | $1.2B | $1.4B | RevenueRevenue |
| $206M | $345M | $520M | $716M | $921M | $1.0B | Gross profitGross prof. |
| 71% | 73% | 75% | 76% | 75% | 74% | Gross marginGross mgn |
| 76% | 63% | 84% | 60% | 57% | 53% | SG&A / revenueSG&A/rev |
| 23% | 22% | 38% | 25% | 24% | 23% | R&D / revenueR&D/rev |
| ($79M) | ($55M) | ($331M) | ($84M) | ($68M) | ($26M) | Operating incomeOp. inc. |
| −27.3% | −11.6% | −47.4% | −9.0% | −5.5% | −1.9% | Operating marginOp. mgn |
| ($79M) | ($49M) | ($307M) | ($44M) | ($31M) | — | Pretax incomePretax |
| ($79M) | ($49M) | ($308M) | ($46M) | ($32M) | $7M | Net incomeNet inc. |
| Cash flow & returns | ||||||
| ($23M) | ($24M) | $119M | $166M | $218M | $276M | Operating cash flowOp. cash |
| $5M | $9M | $14M | $18M | $19M | $23M | Depreciation & amortizationD&A |
| $16M | $10M | $73M | $59M | $69M | $74M | Working capital & otherWC & other |
| $13M | $16M | $4M | $6M | $9M | $23M | CapexCapex |
| 4.5% | 3.3% | 0.5% | 0.6% | 0.8% | 1.7% | Capex / revenueCapex/rev |
| ($28M) | ($33M) | $116M | $160M | $209M | $253M | Owner earningsOwner earn. |
| −9.6% | −6.9% | 16.6% | 17.1% | 16.9% | 18.2% | Owner earnings marginOE mgn |
| ($36M) | ($39M) | $116M | $160M | $209M | $253M | Free cash flowFCF |
| −12.3% | −8.3% | 16.6% | 17.1% | 16.9% | 18.2% | Free cash flow marginFCF mgn |
| $0 | $500K | $0 | $0 | $2M | $2M | AcquisitionsAcquis. |
| $140M | $0 | $0 | — | — | — | BuybacksBuybacks |
| ($14M) | ($19M) | ($9M) | ($17M) | ($30M) | — | Investing cash flowInv. cash |
| $211M | $101M | $243M | ($6M) | ($4M) | — | Financing cash flowFin. cash |
| $174M | $59M | $353M | $143M | $183M | — | Change in cashΔ cash |
| — | — | -148% | -44% | -41% | -12% | ROICROIC |
| — | — | -34% | -4% | -3% | 1% | Return on equityROE |
| — | — | −34% | −4% | −3% | 1% | Retained to equityRetained/eq |
| Balance sheet | ||||||
| $328M | $386M | $739M | $881M | $1.1B | $833M | Cash & investmentsCash+inv |
| — | $11M | $23M | $43M | $61M | $79M | ReceivablesReceiv. |
| — | $9M | $14M | $15M | $29M | $39M | Accounts payablePayables |
| — | $2M | $9M | $29M | $32M | $41M | Operating working capitalOper. WC |
| — | $428M | $803M | $980M | $1.2B | $1.0B | Current assetsCur. assets |
| — | $85M | $131M | $200M | $282M | $322M | Current liabilitiesCur. liab. |
| — | 5.0× | 6.2× | 4.9× | 4.3× | 3.1× | Current ratioCurr. ratio |
| — | $46M | $43M | $48M | $80M | — | Net PP&ENet PP&E |
| — | $629M | $1.1B | $1.3B | $1.6B | $1.4B | Total assetsAssets |
| ($328M) | ($386M) | ($739M) | ($881M) | ($1.1B) | ($833M) | Net debt / (cash)Net debt |
| — | $133M | $174M | $239M | $384M | — | Total liabilitiesTotal liab. |
| $2.6B | $1.5B | $0 | $0 | — | — | Redeemable interestsRedeemable |
| ($2.2B) | ($1.0B) | $915M | $1.0B | $1.2B | $967M | Shareholders’ equityEquity |
| 12.1% | 1.4% | 48.8% | 14.4% | 13.1% | 12.3% | Stock comp / revenueSBC/rev |
| Per share | ||||||
| 221M | 230M | 243M | 266M | 291M | 302M | Shares out (diluted)Shares |
| $1.32 | $2.06 | $2.87 | $3.52 | $4.24 | $4.60 | Revenue / shareRev/sh |
| $-0.36 | $-0.21 | $-1.27 | $-0.17 | $-0.11 | $0.02 | EPS (diluted)EPS |
| $-0.13 | $-0.14 | $0.48 | $0.60 | $0.72 | $0.84 | Owner earnings / shareOE/sh |
| $-0.16 | $-0.17 | $0.48 | $0.60 | $0.72 | $0.84 | Free cash flow / shareFCF/sh |
| $0.06 | $0.07 | $0.02 | $0.02 | $0.03 | $0.08 | Cap. spending / shareCapex/sh |
| $-10.12 | $-4.51 | $3.77 | $3.88 | $4.11 | $3.20 | Book value / shareBVPS |
| 4-yr | 5-yr | |
|---|---|---|
| Revenue / share | +34.0%/yr | +34.0%/yr (4-yr) |
| Capital spending / share | −13.8%/yr | −13.8%/yr (4-yr) |
Where the cash went
ReinvestBuybacksDividendsAcquisitionsRetainedEach year's operating cash, by what management did with it: the mix, and how it drifts.
Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.
In fiscal 2025 the business turned a $32M loss into $209M of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Reported net income | ($32M) | ($46M) | ($308M) | ($49M) | ($79M) |
| Depreciation & amortizationnon-cash charge added back | +$19M | +$18M | +$14M | +$9M | +$5M |
| Stock-based compensationreal costnon-cash, but a real cost | +$162M | +$135M | +$341M | +$7M | +$35M |
| Working capital & othertiming of cash in and out, other non-cash items | +$69M | +$59M | +$73M | +$10M | +$16M |
| Cash from operations | $218M | $166M | $119M | ($24M) | ($23M) |
| Maintenance capital expenditurethe spending needed just to hold position and volume | −$9M | −$6M | −$4M | −$9M | −$5M |
| Owner earnings | $209M | $160M | $116M | ($33M) | ($28M) |
| Growth capital expenditurediscretionary; spent to get bigger, not to stand still | — | — | — | −$7M | −$8M |
| Free cash flow | $209M | $160M | $116M | ($39M) | ($36M) |
| Owner-earnings marginowner earnings ÷ revenue | 17% | 17% | 17% | -7% | -10% |
Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $162M), owner earnings is nearer $46M.
Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
Will it survive?
- No meaningful interest burdenLittle or no interest expense reported
What this means
Little or no interest expense reported, the business isn't leaning on lenders to operate.
- Net cash, debt-freeCash $1.1B − debt $0
What this means
Cash and short-term investments exceed every dollar of debt by $1.1B, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
- Negative, funded by othersDSO 18 + DIO 0 − DPO 34 days
What this means
Days cash is tied up between paying suppliers and collecting from customers. A negative cycle is a quiet moat: suppliers and customers fund the operation (Buffett's “float”), the company grows on other people's money. (Little or no inventory, a services / asset-light model, so the inventory leg is ~0.)
Is it a good business?
- Not enough dataIndustry peers: median -21%
What this means
The filing data didn't include the inputs for this check.
- High through the cycle5-yr median margin, range -10%–17%; latest $209M = operating cash $218M − maintenance capex $9MIndustry peers: median 5%
What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 17% of revenue this year, a 17% median across 5 years. Treating stock comp as the real expense it is (less $162M of SBC) leaves $46M.
- Loss, but cash-generativeNet income ($32M) · cash from operations $218M
What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did.
How is the cash used?
- Not enough data
What this means
The filing data didn't include the inputs for this check.
- Investing or harvesting? 0.51×HarvestingCapex $9M ÷ depreciation & amortization as filed $19M
What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.
The promise and the pay packet
- Heavy selling costSelling and marketing $506M ÷ revenue $1.2BRetention and the customer ladder, in the filing’s wordsCustomer countover 193,000
“As of December 31, 2025, we served over 193,000 customers, up from 167,000 customers as of December 31, 2024.”
What this means
Sales and marketing as a share of revenue, kept apart from administrative overhead because it answers a different question: how much a business must spend to win the next customer. A company whose product pulls customers in spends little here and keeps the difference; one that must buy its growth is running to stand still, and the spending has to keep rising for revenue to keep rising. Read it beside the growth rate, not alone.
- Is the buyback buying ownership, or mopping up? 13.1%The count is risingStock compensation $162M (fiscal 2025), 13.1% of revenue · no repurchases · diluted shares +26.6% since 2022
What this means
Stock handed to employees is a real cost paid in the owner's own currency: it is charged against profit, but the shares it creates are permanent. Many companies repurchase stock at the same time, which looks like a return of capital and often is not — if the count barely moves, the cash merely cancelled the pay packet and bought the owner nothing. The three states worth telling apart are a count genuinely shrinking, a count standing still despite large repurchases, and a count rising because the issuance was never offset at all.
Graham’s defensive tests · 1 of 3 met
Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.
- Adequate size NearRevenue ≥ $2B · $1.2B
What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
- Strong liquidity PassCurrent ratio ≥ 2× · 4.27×
What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
- Earnings stability MissA profit every year (5-yr record) · 5 loss years
What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
- Dividend record —Uninterrupted dividends · no dividend line tagged in the data
What this means
An unbroken dividend was Graham's mark of durability. This record carries no dividends-paid line in any year — common for partnerships, whose distributions file under tags the chain doesn't read — so the criterion is withheld rather than judged on silence.
- Moderate price —P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $-0.43/share (latest year $-0.11), the averaged base the calculator's gate runs on, and book value is $3.98/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.
Durability & moat, 2021–2025
Whether the record’s returns held, and what the capital reinvested earned.
- Profitable years 0 of 5
What this means
Lost money in 5 year(s), look at what happened there before trusting the average.
- Operating margin −19% → −7% (2-yr avg ends)
What this means
Through the cycle the operating margin widened — about −19% early to −7% lately, median −12% — pricing power intact or improving.
- Worst year 2023 · −47.4% op. margin
What this means
Operations went underwater in 2023, understand why before trusting the good years.
- Share count +7.1%/yr
What this means
The share count is rising, dilution works against you on a per-share basis.
All figures as filed; the source filing is linked above.
Current Position
as of the latest quarter, Jun 30, 2026Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
- Cash & short-term investments$833M
- Receivables$79M
- Other current assets$96M
- Accounts payable$39M
- Other current liabilities$284M
From the company's latest filing.
How the cash was used, 2021–2025
Over the record, the business generated $457M of operating cash; how management split it reads as a cash builder, a large share of cash simply built up on the balance sheet.
- Reinvested$48M · 10%
- Buybacks$140M · 31%
- Retained (debt / cash)$269M · 59%
- Returned to owners$140M
33% of the owner earnings the business produced over the span, $0 as dividends and $140M as buybacks.
- Source of fundingOperating cash
Operating cash covered reinvestment and returns; over the span cash and short-term investments rose $505M.
- Average price paid for buybacks—
Buybacks ran $140M over the span, but the filings don't tag the share count needed to deduce the average price paid.
- Net change in share count36.7%
The diluted count rose from 221M to 302M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
- Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.
Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.
Management, ownership & pay
read the proxy →From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.
| Fiscal year | Chief executive | Pay, as filed | “Actually paid” | Owner earnings |
|---|---|---|---|---|
| 2023 | Andrew | $78k | $78k | $116M |
| 2024 | Andrew | $78k | $78k | $160M |
| 2025 | Andrew | $78k | $78k | $209M |
Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.
- Insider ownership1.1%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
- CEO pay ratio42:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
- Stock-based compensation$162M
The slice of the business handed to employees in shares in fiscal 2025, 13.1% of revenue. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.
What an owner would ask, FY2025
read the 10-K →- Which reported numbers are a judgment call?Management names Revenue recognition, Stock compensation as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →
The questions the record and the charts do not answer on their own; each carries the figure and the place to look.
Peers, Software
The same industry, side by side on owner economics and what the growth costs. Each column names the period it is read over, and a median resting on fewer than three years carries that count beside it; the group median at the foot is the line to read each figure against.
| Company | Revenuelatest FY, USD | Gross marginmedian over the record | Op. marginmedian over the record | ROICmedian over the record | Owner earn. marginmedian over the record | Sales & marketinglatest FY | Stock paylatest FY |
|---|---|---|---|---|---|---|---|
| PCORProcore Technologies | $1.3B | 82% | -22.7% | -21% | 5% | 43.9% | 18.0% |
| RBRKRubrik Inc. | $1.3B | 73% | -46.2% | -118%1y | 1% | 58.4% | 25.0% |
| KVYOKlaviyo Inc. Series A | $1.2B | 75% | -11.6% | -44% | 17% | 41.0% | 13.1% |
| MNDYmonday.com Ltd. | $1.2B | 87% | -29.3% | — | 4% | — | — |
| GWREGuidewire Software | $1.2B | 55% | -2.8% | -1% | 16% | 19.2% | 13.4% |
| CVLTCommvault Systems | $1.2B | 83% | 0.3% | -1%4y | 18% | 43.9% | 10.4% |
| BOXBox, Inc. | $1.2B | 73% | -4.0% | — | 18% | 34.3% | 19.9% |
| CFLTConfluent Inc. | $1.2B | 68% | -65.5% | -24% | -28% | 50.8% | 34.1% |
| Group median | — | 74% | -17.2% | -23% | 10% | 43.9% | 18.0% |
The price
What a price has to assume.
What the price implies
reverse-DCFType today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Klaviyo Inc. Series A has delivered.
Through the cycle, Klaviyo Inc. Series A earns about $205M on its 16.6% median owner-earnings margin. This year’s 16.9% margin runs in line with that. Normalize, below, values the price on that through-cycle figure rather than the latest year.
—
9.0% = the 4.65% 10-year Treasury (Aug 19, 2026) + 4.35 points of equity premium. The rate you require is yours to set.
Enter a price above to run it.
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.
Prefilled with the 10-year Treasury (4.65%, as of Aug 19, 2026). Edit it for today’s exact figure, or a AAA corporate yield.
Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.
Free cash flow $253M on 301M shares outstanding (a weighted basic average, the only count this filer tags); net cash $833M. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. Capex ($23M) runs well above depreciation ($23M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $267M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.
Manual order: ← KVUE its page in the Manual KWR →
Industry order: ← KARO the Software chapter MANH →