Klaviyo shares fall 8.9% after hours despite Q3 profit beat

Klaviyo (KVYO) said third-quarter revenue rose 25% from a year earlier, and it raised its full-year revenue forecast. The autonomous B2C CRM company reported results for the quarter ended Sept. 30, 2026, in a release issued on Nov. 4.

Shares fell 8.9% in after-hours trading as of 4:42 p.m. ET, from a regular-session close of $21.34.

Revenue was $387.2 million, in line with the $387.46 million consensus estimate. Non-GAAP diluted earnings of 22 cents per share topped the 18 cents consensus estimate.

Here's how the company did:

• Revenue: $387.2 million vs. $310.9 million a year earlier
• Adjusted EPS: 22 cents vs. 18 cents consensus estimate and 18 cents a year earlier
• Non-GAAP operating income: $56.9 million vs. $45.0 million a year earlier
• Net income: $0.7 million vs. a loss of $0.4 million a year earlier
• Cash from operating activities: $52.7 million vs. $54.8 million a year earlier
• Free cash flow: $24.8 million vs. $47.1 million a year earlier

The company said growth was broad-based, with strength in its largest customer cohorts. “Q3 was another strong quarter with revenue up 25% year-over-year, and solid profitability,” said CFO Erica Smith.

Revenue has risen in each of the last three quarters, from $310.9 million in the third quarter of 2025 to $370.6 million in the second quarter of 2026, according to its SEC filings.

2026 guidance

Klaviyo raised its fiscal 2026 revenue forecast to $1.537 billion to $1.541 billion, from the $1.526 billion to $1.534 billion range it gave on Aug. 5. The company expects year-over-year growth of about 25%.

It also raised its fiscal 2026 non-GAAP operating income forecast to $233 million to $236 million, from $212 million to $218 million on Aug. 5.

For the fourth quarter, the company expects revenue of $421 million to $425 million, growth of about 21%.

Customers and retention

The company had more than 211,000 customers as of Sept. 30. Customers generating more than $50,000 of ARR rose to 4,725, up 33% from a year earlier.

Net revenue retention was 108%, the company said, driven by customer expansions, cross-sell and retention.

Cash and buybacks

The board authorized a new share repurchase program of up to $300 million of Series A common stock, following completion of a prior $500 million program in October. The program has no expiration date.

Klaviyo spent $150.9 million on share repurchases in the quarter and ended the period with $705.4 million in cash and cash equivalents. “The new authorization reflects the board and management’s conviction in the strength of our strategy and intrinsic value of our shares at current levels,” Smith said.

The company will host a conference call for investors at 4:30 p.m. ET on Nov. 4.