Key Takeaways:
- AI Growth: Klaviyo processed 0.5 trillion customer interactions in 2025, with AI-driven campaigns generating 50% higher open rates.
- Price Projection: Based on current execution, KVYO stock could reach $25.92 by December 2028.
- Potential Gains: This target implies a total return of 45.9% from the current price of $17.77.
- Annual Return: Investors could see roughly 14% growth over the next 2.9 years.
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Klaviyo (KVYO) delivered a strong 2025, growing revenue 32% to $1.2 billion while expanding non-GAAP operating margins to 14%.
CEO Andrew Bialecki described 2025 as a “breakout year,” and the numbers back that up.
- Every quarter grew by at least 30% year over year. Customers spending more than $50,000 annually grew 37%. Net revenue retention hit 110%.
- The company now serves more than 193,000 customers across 100+ countries, with enterprise momentum accelerating sharply.
- The company is positioning itself as the infrastructure layer for autonomous customer experiences — where AI handles marketing campaigns, customer service, and personalization without human intervention.
- Its Marketing Agent already generates more than half of the campaigns for adopting customers, often outperforming manually created ones.
- Its Customer Agent is resolving service queries at scale, with one customer (LifeStraw) seeing AI-driven sales jump 111%.
Despite all of this, KVYO trades at $17.77 — well below its IPO price. That gap creates an opportunity for investors who believe in the long-term story.
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What the Model Says for Klaviyo Stock
Klaviyo’s growth story has three clear engines: deeper penetration of its existing customer base, international expansion, and new AI-powered products.
- International revenue grew 42% in 2025 and now represents over a third of total revenue.
- Enterprise momentum is building too — the number of customers generating at least $1 million in ARR doubled last year.
The company’s model also benefits from natural expansion. Because Klaviyo charges based on active profiles and usage rather than seats, revenue grows organically as customers use more data and adopt more products.
Sixty percent of ARR now comes from multi-product customers.
Using a forecast of 20.3% annual revenue growth and 15.7% operating margins, our model projects the stock will rise to $25.92 by December 2028. That assumes a 21.4x price-to-earnings multiple.
That’s a significant compression from Klaviyo’s historical averages of 48.2x over the past year and 59.4x over three years.
The lower multiple reflects the reality that high-growth SaaS stocks may not sustain premium valuations as they scale up in revenue.
Our Valuation Assumptions
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Our Valuation Assumptions
TIKR’s Valuation Model lets you plug in your own assumptions for a company’s revenue growth, operating margins, and P/E multiple, and calculates the stock’s expected returns.
Here’s what we used for KVYO stock:
1. Revenue Growth: 20.3%
Klaviyo guided for 21.5%–22.5% revenue growth in 2026, reaching $1.5 billion.
That’s conservative — management explicitly said the guide includes minimal contribution from newer AI and service products.
The company’s installed base continues to expand usage, while international and enterprise markets are still early.
New products like Customer Agent are on the steepest adoption curve in company history.
2. Operating margins: 15.7%
Klaviyo guided for 14.5%–15% non-GAAP operating margins in 2026, up from 14% in 2025.
AI is driving real internal efficiency — faster product development, leaner headcount growth, and better unit economics.
Management targets at least 100 basis points of margin expansion per year going forward.
3. Exit P/E Multiple: 21.4x
KVYO currently trades at 21.4x forward earnings. We hold that flat through our forecast period.
This is well below historical averages but appropriate given the uncertainty about how quickly AI products will contribute to revenue.
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What Happens If Things Go Better or Worse?
Here’s how KVYO might perform across scenarios through December 2030:
- Low Case: With 17.2% revenue growth and 13.6% net income margins, investors see a 44.7% total return (7.9% annually).
- Mid Case: At 19.1% growth and 14.7% margins, the model projects a 92.5% total return (14.4% annually).
- High Case: If AI products accelerate growth to 21.1% with 15.7% margins, returns could reach 149.2% total (20.6% annually).
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The range hinges on how fast enterprise adoption scales, whether international momentum holds, and how much revenue Klaviyo eventually books from its AI agent products — which today are treated as pure upside in management’s guidance.
How Much Upside Does Klaviyo Stock Have From Here?
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All it takes is three simple inputs:
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- Operating Margins
- Exit P/E Multiple
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
