$KVYO RISK_REVERSAL 280121 CALL 17.5/PUT 15.0$
Klaviyo (KVYO) is a US-listed B2C CRM / marketing-automation software company (NYSE, listed 2023-09-20, ~2,368 employees, Boston). It serves 193,000+ businesses through its data platform and launched a unified B2C CRM suite in early 2025. Latest price USD 19.55 (+11.59% on 2026-10-21, on elevated volume ratio 2.92), market cap roughly USD 5.5bn at ~285M shares.
Revenue has compounded steadily at roughly 26% YoY with a stable ~72–73% gross margin. The most recent reported quarter (2026Q2, filed 2026-08-05) beat consensus revenue of 362.1M by ~8.5M (+2.3% surprise), and EPS came in at 0.19 vs 0.191 expected — essentially in line.
Geographic mix (2026Q2): Americas 233.3M (62.9%), EMEA 98.4M (26.6%), Asia-Pacific 38.8M (10.5%). The mix has been drifting slightly toward EMEA/APAC: Americas was 65.2% a year earlier, so international is the faster-growing engine — a positive for diversification but also a source of FX and macro sensitivity.
Profitability and quality
• Operating income turned positive: 2026Q2 operating income of 8.4M vs a loss a year ago; Q2 EBIT actual 50.9M (on the consensus basis) beat expectations.
• GAAP net income still thin: Q2 net income to common of -8.85M on a GAAP basis, and TTM EPS is only 0.02 — the company is barely profitable at the bottom line.
• Cash generation is the strength: Q2 operating cash flow 93.9M, up 68% YoY; free cash flow (OCF less capex of 4.46M) around 89M. Cash and equivalents ~833M at H1 2026, with a current ratio of 3.13 and total liabilities/assets of 30.1% — a solid, low-leverage balance sheet.
• Key caveat: stock-based compensation is large (51.3M in Q2, ~14% of revenue). That is the main gap between the strong cash flow and the near-zero GAAP profit; dilution is a real cost to shareholders even though it is non-cash.
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- snipey·11:43Cash flow and the balance sheet look clean, but 51.3M of SBC in one quarter is doing a lot of the work here. That dilution gap matters more than the headline beatLikeReport