Klaviyo Inc (KVYO) Q4 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic AI …

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Wed, February 11, 2026 at 2:02 PM GMT+9 4 min read

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**Revenue:** $1.234 billion for the full year, up 32% year over year.

**Q4 Revenue:** $350 million, up 30% year over year.

**Annualized Revenue Run Rate:** $1.4 billion.

**Non-GAAP Operating Margin:** 14% for the full year; 15% for Q4.

**Non-GAAP Gross Margin:** 73% in Q4.

**Free Cash Flow:** $87 million in Q4, up 61% year over year.

**International Revenue Growth:** 42% for the full year.

**Net Revenue Retention (NRR):** 110%, a year over year expansion of more than 200 basis points.

**Customers with >$50,000 ARR:** Grew by 37% year over year to 3,912.

**2026 Revenue Guidance:** Projected between $1.501 billion and $1.509 billion, representing 21.5% to 22.5% year over year growth.

**2026 Non-GAAP Operating Income Guidance:** $218 to $224 million, with a margin of approximately 14.5% to 15%.

**Q1 2026 Revenue Guidance:** $346 to $350 million, representing growth of 23.5% to 25%.

**Q1 2026 Non-GAAP Operating Income Guidance:** $50 to $53 million, with a margin of 14.5% to 15%.

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Release Date: February 10, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Klaviyo Inc (NYSE:KVYO) achieved a 32% revenue growth in 2025, reaching $1.2 billion, with a 14% non-GAAP operating margin.

The company now serves over 193,000 customers in more than 100 countries, showing strong momentum in enterprise and international markets.

AI-driven autonomous customer experiences are enhancing personalization and engagement, leading to significant improvements in customer interactions.

The introduction of autonomous B2C CRM has resulted in a 50% increase in open rates and a 40% growth in revenue per campaign for some customers.

Klaviyo Inc (NYSE:KVYO) reported a 110% net revenue retention rate, driven by expanded usage of email and text products, and cross-selling of new services.

Negative Points

Despite strong growth, the company faces challenges in training customers to effectively use AI agents, which could limit adoption rates.

There is a potential risk of competition from AI-native companies that could replicate or access Klaviyo's proprietary context through APIs.

The transition from SMS to RCS and the integration of new communication channels like WhatsApp may require significant resources and adaptation.

The company's guidance for 2026 assumes minimal revenue contribution from new AI and service products, indicating uncertainty in their immediate impact.

Operational changes and leadership transitions in the go-to-market strategy could introduce short-term disruptions or execution risks.

 






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Q & A Highlights

Q: What was the impact from the portfolio enforcement change in the quarter, and how did SMS perform versus expectations? A: Amanda Whalen, CFO, explained that the portfolio enforcement change had a minimal impact on NRR, with the main drivers being increased platform usage and cross-selling of text messaging and newer products. Andrew Bialecki, Co-CEO, noted that SMS performed strongly, with a transition from SMS to RCS allowing for richer media experiences and actions directly from text messages, indicating significant upside potential.

Q: Can you provide more visibility into the adoption and engagement trends of the service opportunity across different customer cohorts? A: Andrew Bialecki, Co-CEO, highlighted that adoption of the customer agent is occurring across all customer segments, from SMBs to enterprises. The company is working on making it easier for businesses to train and trust the agents, which is expected to drive widespread adoption. Amanda Whalen, CFO, added that minimal contribution from service is currently embedded in the 2026 guidance, viewing it as an upside potential.

Q: What is the limiting factor to an AI-native company replicating Klaviyo’s proprietary context? A: Andrew Bialecki, Co-CEO, emphasized that Klaviyo’s advantage lies in its extensive data set and infrastructure designed for real-time use cases. The company’s infrastructure allows for real-time decisions and personalization, which are difficult to replicate, providing a durable competitive advantage.

Q: How does Chano Fernandez’s experience with enterprise businesses fit into Klaviyo’s focus on SMBs? A: Chano Fernandez, Co-CEO, stated that his experience in scaling enterprise businesses and operational strength will help improve Klaviyo’s go-to-market execution and operational alignment. The focus is on expanding enterprise opportunities while maintaining the core SMB business as a cornerstone.

Q: Can you discuss the Accenture partnership and how it aligns with Klaviyo’s core model? A: Andrew Bialecki, Co-CEO, explained that the partnership with Accenture is focused on leveraging AI to build new customer experiences, requiring new skills and services. Chano Fernandez added that Accenture sees Klaviyo as a great partner for providing AI-powered solutions for marketing and service reinvention, particularly as Klaviyo moves towards enterprise markets.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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