KVYOKlaviyo, Inc.
Is the business good?
The checks split: 4 of 9 health tests passed and margins steady.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Margins have held roughly steady, a stable cost structure.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is KVYO?
Klaviyo, Inc. earns −15% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 24 points below what the capital costs: growth destroys value
- Operating margin
- −1.9%
Operating margin · Software - Application median 6.4% · 12 months to Q2 2026
- Share count, year on year
- +4.2%
Share count, year on year · shareholders own a smaller slice than a year ago
- R&D as % of revenue
- 23%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2021 | −27% |
| FY2022 | −12% |
| FY2023 | −47% |
| FY2024 | −9.0% |
| FY2025 | −5.5% |
Details›
- Gross margin12 months to Q2 2026
- 74%
- Operating margin12 months to Q2 2026
- −1.9%
- Net margin12 months to Q2 2026
- 0.49%
- Free cash flow margin
- 18%
- R&D as % of revenue
- 23%
- Revenue, trailing twelve months
- $1.39B
- Free cash flow, trailing twelve months
- $253M
- Net income, trailing twelve months
- $6.8M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −15%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Software, Application
Ranks #80 of 96 by RyuScore