Klaviyo, Inc.

Q2 revenue was $370.6 million, up 26% year over year and ahead of guidance. Non-GAAP gross margin was 73.4%, down 3 points year over year, and non-GAAP operating income was $50.9 million, or a 13.7% non-GAAP operating margin. Net revenue retention was 109%, and the company generated $83 million of cash, ending the quarter with $833 million in total cash. For 2026, Klaviyo now expects revenue of $1.526 billion to $1.534 billion, up 24% year over year, and non-GAAP operating income of $212 million to $218 million, with margin of approximately 14%. For Q3, the company expects revenue of $377 million to $381 million and non-GAAP operating income of $40 million to $43 million, with margin of 10.5% to 11%.

Andrew Bialecki framed Klaviyo as building an "autonomous B2C CRM" that combines data infrastructure, experience infrastructure, and AI agents to decide and optimize customer experiences. He highlighted scale in consumer data, improving deliverability, and strong early traction for Composer and Customer Agent, arguing that agents are creating real ROI for customers. His tone was optimistic and expansive, emphasizing that the company is still early in a long runway for AI-driven customer experiences and enterprise consolidation.

Amanda Whalen said Q2 strength came from enterprise deals, cross-sell, and growth in text messaging, WhatsApp, and marketing analytics. She noted non-GAAP gross margin of 73.4%, down 3 points year over year due to text growth and higher carrier fees, and said carrier fee pass-through in Q3 should be neutral to 2026 revenue and gross margin. She also cited non-GAAP operating expenses at about 60% of revenue, non-GAAP operating income of $50.9 million, $83 million of cash generated, and about $240 million used for buybacks, leaving $160 million of capacity under the $500 million authorization. Full-year operating income guidance was reduced by $10 million at the midpoint, including $10 million to $12 million of Agency-related costs.

Analysts focused on Composer adoption, SMS momentum, gross margin pressure, margin investment, the Agency acquisition, enterprise sales capacity, NRR, international expansion, and AI competition in SMB. Management said Composer is already driving more usage and revenue because it removes bottlenecks in campaign creation, while Customer Agent monetizes on resolution and is seeing strong enterprise proof-of-concepts. On margins, they said carrier-fee pass-through should normalize, text is strategically important despite lower gross margin, and investment in product and infrastructure is deliberate; on enterprise, they said the sales motion is becoming more consultative and consolidation-oriented, with strong pipeline and no major product-market-fit gap called out.