Needham analysts have lowered their 12-month price objective for Klaviyo Inc (KVYO) to $30 from $45 but kept a Buy recommendation in place after the company reported strong fourth-quarter results. The revised target still implies material upside relative to the stock’s prevailing market level of $20.15, and InvestingPro data cited by analysts shows the shares have declined more than 55% over the last year.
Needham characterized Klaviyo’s fourth-quarter performance as "very strong," noting revenue outperformance toward the high end of the company’s recent range. The firm attributed the strength to both elevated sales and customer expansion during the holiday period. Supporting data show Klaviyo has delivered 32.8% revenue growth over the past twelve months and sustained a gross profit margin of 75.2%, according to InvestingPro figures referenced by the analysts.
On several operational metrics, Klaviyo posted robust results. Total revenues rose 29.6% while the company generated a 25% free cash flow margin, producing another quarter that met the so-called "Rule of 50." Klaviyo added 10,000 net new customers in the quarter - its largest quarterly net customer gain to date - and added 349 net new customers with annual recurring revenue (ARR) above $50,000, up from 231 in the fourth quarter of 2024.
InvestingPro analysis shows the company produced $175.6 million in levered free cash flow and maintains a balance-sheet position with more cash than debt, signalling liquidity strength despite reporting a loss over the last twelve months.
Needham highlighted that the scale of the customer additions points to momentum in Klaviyo’s mid-market and enterprise sales channels. The firm also said it found no evidence in the company’s metrics of the macro concern that clients would migrate away from vendor solutions to build their own in-house marketing software.
Looking ahead, Klaviyo’s fiscal year 2029 guidance includes upside for revenue and calls for roughly 100 basis points of operating margin expansion. Needham described that margin expectation as likely conservative, noting examples the company cited of using AI to lower operating costs.
Other sell-side responses to Klaviyo’s quarterly release were largely affirming of the business momentum while adjusting price targets. Piper Sandler reiterated an Overweight rating and kept a $30 price target after the results. KeyBanc Capital Markets trimmed its target to $40 while maintaining an Overweight stance. TD Cowen revised its target to $35 after noting the company’s roughly 30% growth in the fourth quarter exceeded its estimates. Stephens reduced its target to $31, citing a valuation reset but also maintaining an Overweight view.
On reported results, Klaviyo posted fourth-quarter 2025 earnings of $0.19 per share, ahead of a $0.15 consensus forecast - a 26.67% positive surprise. Quarterly revenue came in at $350.2 million versus a $320.74 million estimate, a beat of 9.19%. Management set fiscal 2026 revenue guidance at a midpoint implying roughly 22% growth, a touch above its earlier preliminary outlook.
Investor-relevant operating indicators also moved favorably. Klaviyo’s net revenue retention rate improved to 110% in the quarter, underscoring customer retention and expansion dynamics.
While several firms nudged their valuations, the recurring theme among analysts was that Klaviyo’s commercial traction, healthy margins and cash generation provide continued reasons for a constructive stance even as price targets were reset to reflect market multiple considerations and valuation adjustments.