Klaviyo 2025 Q2 Earnings Misses Targets as Net Loss Widens 391.3%

Klaviyo reported mixed results in Q2 2025, with revenue growing 31.9% year-over-year but net losses expanding significantly. The company raised full-year revenue guidance, but the earnings report did not meet expectations in terms of profitability. Investors reacted negatively to the widening losses, with the stock down 9.47% month-to-date and a poor post-earnings holding strategy.

Revenue
Klaviyo’s total revenue for Q2 2025 reached $293.12 million, a 31.9% increase compared to $222.21 million in Q2 2024. The strong growth underscores the company’s expanding customer base and international expansion, particularly in the EMEA and APAC regions.

Earnings/Net Income
Klaviyo’s net loss widened to $-24.28 million in Q2 2025, a 391.3% increase from the $-4.94 million loss in Q2 2024. On a per-share basis, the company posted a loss of $0.09, compared to $0.02 in the prior-year period. These figures indicate a deterioration in profitability despite rising revenue.

Price Action
The stock price of Klaviyo edged up 0.33% during the latest trading day but fell 7.67% over the past week and 9.47% month-to-date. This continued underperformance has raised concerns among investors and analysts.

Post-Earnings Price Action Review
A strategy of buying Klaviyo shares following the Q2 earnings report and holding for 30 days resulted in a -16.48% return, underperforming the benchmark by the same margin. The CAGR of the strategy was -9.61%, and while the maximum drawdown was 0.00%, the Sharpe ratio of -0.18 highlights the significant risk and weak return profile associated with post-earnings trading in the stock.

CEO Commentary
CEO Andrew Bialecki emphasized the company’s progress in Q2, highlighting 32% year-over-year revenue growth and the launch of Klaviyo Service in public beta. He expressed confidence in the AI-native B2C CRM platform’s ability to drive personalization at scale and unlock new engagement opportunities for brands. The optimism centered on continued growth in customer accounts and international expansion.

Guidance
Klaviyo raised its full-year 2025 revenue guidance to $1.195–$1.203 billion, reflecting 27–28% year-over-year growth. For Q3, the company expects revenue of $297–$301 million, with year-over-year growth of 26–28%. Non-GAAP operating income is forecasted at $32.5–$35.5 million for Q3 and $144–$150 million for the full year. The company also disclosed approximately 309 million fully diluted shares outstanding.

Additional News
On July 18, 2025, Klaviyo’s 15-minute stock chart triggered a KDJ Death Cross and a Bearish Marubozu pattern, signaling a potential downtrend. Sellers have gained dominance in the market, and analysts project continued bearish momentum. Over the past three months, 14 analysts revised their price targets, with an average of $38.21, reflecting a 13% decline from earlier estimates. Meanwhile, Klaviyo’s President, Stephen Eric Rowland, sold 7,079 shares on July 15 under a Rule 10b5-1 trading plan. The company’s ROE and ROA remain negative, indicating ongoing challenges in asset and equity utilization. Investors are advised to closely monitor both technical indicators and analyst sentiment.