Klaviyo, Inc.
For the period ended Jun 30, 2026. Filed Aug 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 5, 2026
KVYO$20.71-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-05.
0001835830-26-000027
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0001835830-26-000040
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 117 previous paragraphs and 137 current paragraphs.
76 unchanged; 30 reworded; 27 added; 11 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 14 previous and 23 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (27)
Current report
Revenue - Three Month Change
Current report
Revenue - Six Month Change
Current report
Cost of Revenue - Three Month Change
Current report
Cost of Revenue - Six Month Change
Current report
Gross Profit - Three Month Change
Current report
Gross Profit - Six Month Change
Current report
Selling and Marketing - Three Month Change
Current report
Selling and marketing expenses for the three months ended June 30, 2026 increased by $12.7 million or 10.0%, to $139.3 million compared to $126.6 million for the three months ended June 30, 2025. This increase was primarily due to an increase of approximately $5.6 million in salaries and related personnel expenses as a result of increased salaries as well as a bonus plan change to increase target bonus percentages, $3.3 million in marketing expenses associated with our advertising campaigns across multiple channels of media, $2.2 million in partnership-related expenses across our ecosystem, and $1.5 million in professional services.
Current report
Selling and Marketing - Six Month Change
Current report
Research and Development - Three Month Change
Current report
Research and Development - Six Month Change
Current report
Research and development costs for the six months ended June 30, 2026 increased by $30.2 million or 21.3%, to $172.0 million compared to $141.8 million for the six months ended June 30, 2025. This increase was primarily due to an increase of approximately $14.1 million in salaries and related personnel expenses as a result of increased allocatable costs and a bonus plan change to increase target bonus percentages, $13.8 million in technology expenses, and $2.0 million in stock-based compensation due to the vesting of RSUs.
Current report
General and Administrative - Three Month Change
Current report
General and Administrative - Six Month Change
Current report
General and administrative expenses for the six months ended June 30, 2026 increased by $8.8 million or 9.0%, to $105.9 million compared to $97.1 million for the six months ended June 30, 2025. This increase was primarily due to an increase of approximately $8.4 million in stock-based compensation from the vesting of RSUs and issuance of PSUs, $4.2 million in technology expenses, $4.2 million in professional services, and $3.7 million in payment processing fees related to increased volume of customer transactions, partially offset by a decrease of $11.4 million in salaries and related personnel expenses as a result of lower payroll taxes from decreased option exercises and decreased allocatable costs.
Current report
Other Expense, Net - Three Month Change
Current report
Other Expense, Net - Six Month Change
Current report
Other expense, net, for the six months ended June 30, 2026 decreased by $0.6 million or 39.8% to $(0.9) million compared to $(1.6) million for the six months ended June 30, 2025. This decrease was primarily due to favorable foreign exchange fluctuations.
Current report
Interest Income - Three Month Change
Current report
Interest Income - Six Month Change
Current report
Interest income for the six months ended June 30, 2026 decreased by an immaterial amount compared to the six months ended June 30, 2025.
Current report
Provision for Income Taxes - Three Month Change
Current report
Income tax expense for the three months ended June 30, 2026 decreased by an immaterial amount to $1.7 million compared to $1.8 million for the three months ended June 30, 2025.
Current report
Provision for Income Taxes - Six Month Change
Current report
Income tax expense for the six months ended June 30, 2026 increased by $2.7 million or 366.6% to $3.4 million compared to $0.7 million for the six months ended June 30, 2025. This was primarily due to an increase in foreign operations.
Current report
On April 10, 2026, as final settlement of the ASR Agreement, the Company received a final delivery of 1,039,238 shares of Series A common stock at a price of $16.40 from the Dealer. The shares received upon initial delivery and final settlement were recorded as treasury stock, resulting in a reduction to stockholders’ equity. The share repurchase pursuant to the ASR Agreement resulted in an estimated excise tax liability of $0.2 million, which was recorded as a cost of the repurchase transaction and reflected as a reduction to stockholders’ equity. In total, the Company repurchased approximately 5,347,107 shares of Series A common stock under the ASR Agreement at a price of $19.14 per share, which represents the volume-weighted average share price of the Company’s Series A common stock during the term less a discount.
Current report
As of June 30, 2026, pursuant to non-overlapping 10b5-1 plans entered into with third-party investment banks, the Company had repurchased 15,132,757 shares of Series A common stock at a weighted average price of $15.68 per share. The shares repurchased were recorded as treasury stock, resulting in a reduction of stockholders’ equity. As of June 30, 2026, approximately$162.7 million remained available for repurchase under the Share Repurchase Program.
Removed paragraphs (11)
Previous report
Revenue
Previous report
Cost of Revenue
Previous report
Gross Profit
Previous report
Selling and Marketing
Previous report
Research and Development
Previous report
General and Administrative
Previous report
Other Expense, Net
Previous report
Interest Income
Previous report
Provision (benefit) for Income Taxes
Previous report
The Company recorded an income tax provision of $1.7 million for the three months ended March 31, 2026 compared to an income tax benefit of $(1.1) million for the three months ended March 31, 2025 representing a change of $2.7 million. This was primarily due to an increase in foreign operations.
Previous report
The final number of shares to be repurchased pursuant to the ASR Agreement will be based on the volume-weighted average price of Series A common stock on specified dates during the term of the ASR Agreement, less a discount, and subject to adjustments pursuant to the terms and conditions of the ASR Agreement. Upon settlement, the Dealer may deliver additional shares of Series A common stock to the Company, or in certain circumstances, the Company may be required to deliver shares to the Dealer. The final settlement of the transaction is expected to be completed no later than the second quarter of 2026. As of March 31, 2026, approximately$400.0 million remained available for repurchase under the Share Repurchase Program.
Reworded paragraphs (30)
Previous wording
We founded Klaviyo in 2012 to provide businesses of all sizes with powerful technology that captures, stores, analyzes, and predictively uses their own data to drive measurable, high-value outcomes. Today, Klaviyo enables over 196,000 businesses around the globe to efficiently drive revenue growth by making it easy to bring their first-party data together and use it to create and deliver highly personalized, omnichannel consumer experiences at scale. Our platform combines our proprietary data, intelligence, and action layers into one vertically-integrated solution with advanced machine learning and AI capabilities and over 350 integrations, enabling businesses to create and store unified consumer profiles, derive new insights, and rapidly segment their consumers.
Current wording
We founded Klaviyo in 2012 to provide businesses of all sizes with powerful technology that captures, stores, analyzes, and predictively uses their own data to drive measurable, high-value outcomes. Today, Klaviyo enables over 205,000 businesses around the globe to efficiently drive revenue growth by making it easy to bring their first-party data together and use it to create and deliver highly personalized, omnichannel consumer experiences at scale. Our platform combines our proprietary data, intelligence, and action layers into one vertically-integrated solution with advanced machine learning and AI capabilities and over 350 integrations, enabling businesses to create and store unified consumer profiles, derive new insights, and rapidly segment their consumers.
Previous wording
Klaviyo began as a database designed for speed, flexibility, and unlimited data storage. The Klaviyo Data Platform (“KDP”) generates unified, highly granular consumer profiles populated with data from customers’ own systems and over 350 third-party integrations, and provides customers user-friendly ways to track new types of data, sync data in and out of Klaviyo at scale, and drive revenue growth. Building upon our robust data infrastructure, we developed tools, initially focusing on marketing automation, where we revolutionized email practices. Our innovation shifted the industry paradigm away from batch and blast practices with a fast, data-rich marketing tool. In addition to our email offering, we now incorporate text messaging and WhatsApp channels, Reviews, Marketing Agent, Klaviyo Service, Klaviyo Analytics, and others.
Current wording
Klaviyo began as a database designed for speed, flexibility, and unlimited data storage. The Klaviyo Data Platform (“KDP”) generates unified, highly granular consumer profiles populated with data from customers’ own systems and over 350 third-party integrations, and provides customers user-friendly ways to track new types of data, sync data in and out of Klaviyo at scale, and drive revenue growth. Building upon our robust data infrastructure, we developed tools, initially focusing on marketing automation, where we revolutionized email practices. Our innovation shifted the industry paradigm away from batch and blast practices with a fast, data-rich marketing tool. In addition to our email offering, we now incorporate text messaging and WhatsApp channels, Reviews, Klaviyo Service, Klaviyo Analytics, and others.
Previous wording
In February 2025, we announced Klaviyo B2C CRM, establishing Klaviyo as a unified CRM built for B2C brands and positioning Klaviyo to address a critical gap in the market: providing consumer brands with a system designed for their unique, high-volume, fast-paced needs across marketing, service and analytics. In September 2025, we launched Marketing Agent and Customer Agent, establishing Klaviyo as the AI-first B2C CRM. This is a natural evolution of our journey – from a leading marketing automation platform to a comprehensive consumer engagement solution. Powered by the KDP and AI, we combine marketing, service, analytics, and our data platform into a single solution designed to meet the high-volume, fast-paced needs of our customers.
Current wording
In February 2025, we announced Klaviyo B2C CRM, establishing Klaviyo as a unified CRM built for B2C brands and positioning Klaviyo to address a critical gap in the market: providing consumer brands with a system designed for their unique, high-volume, fast-paced needs across marketing, service and analytics. In September 2025, we launched Marketing Agent and Customer Agent, establishing Klaviyo as the AI-first B2C CRM. In June 2026, we announced the public beta of Composer, our next generation agent for marketing and analysis. Taken together, this is a natural evolution of our journey – from a leading marketing automation platform to a comprehensive consumer engagement solution. Powered by the KDP and AI, we combine marketing, service, analytics, and our data platform into a single solution designed to meet the high-volume, fast-paced needs of our customers.
Previous wording
Today, our customers primarily operate within the retail and eCommerce vertical. Due to the flexibility and adaptability of our technology, we have also seen organic growth from customers in other verticals, such as education, events and entertainment, restaurants, and travel, as well as from B2B companies. As of March 31, 2026, our platform had efficiently scaled to over 196,000 customers. See the section titled “Key Performance Metrics – Customers” for additional information on how we define customers.
Current wording
Today, our customers primarily operate within the retail and eCommerce vertical. Due to the flexibility and adaptability of our technology, we have also seen organic growth from customers in other verticals, such as education, events and entertainment, restaurants, and travel, as well as from B2B companies. As of June 30, 2026, our platform had efficiently scaled to over 205,000 customers. See the section titled “Key Performance Metrics – Customers” for additional information on how we define customers.
Previous wording
Our land-and-expand strategy aligns our success with that of our customers. As our customers’ businesses grow, they utilize more active consumer profiles and send more emails, text messages and WhatsApp messages, which naturally increases their usage of our platform. Our revenue also expands when our customers add additional marketing channels, such as text messaging, WhatsApp messaging, and mobile push and additional use cases, such as Customer Agent, Marketing Agent, Marketing Analytics, and Advanced KDP, or when their other companies, business units, and geographies start using our platform.
Current wording
Our land-and-expand strategy aligns our success with that of our customers. As our customers’ businesses grow, they utilize more active consumer profiles and send more emails, text messages and WhatsApp messages, which naturally increases their usage of our platform. Our revenue also expands when our customers add additional marketing channels, such as text messaging, WhatsApp messaging, and mobile push and additional use cases, such as Customer Agent, Composer, Marketing Analytics, and Advanced KDP, or when their other companies, business units, and geographies start using our platform.
Previous wording
Attracting new customers to our platform is a key driver of our revenue growth strategy. We have successfully grown our retail and eCommerce customer base and believe we have significant room to expand within this vertical as well as expand further into other industries, including education, events and entertainment, restaurants, wellness, and travel as well as from B2B companies. Our ability to attract new customers will depend on a number of factors, including our ability to innovate, the effectiveness and pricing of our new and existing offerings and capabilities, and the success of our selling and marketing efforts.
Current wording
Attracting new customers to our platform is a key driver of our revenue growth strategy. We have successfully grown our retail and eCommerce customer base and believe we have significant room to expand within this vertical as well as expand further into other industries, including education, events and entertainment, restaurants, wellness, and travel as well as with B2B companies. Our ability to attract new customers will depend on a number of factors, including our ability to innovate, the effectiveness and pricing of our new and existing offerings and capabilities, and the success of our selling and marketing efforts.
Previous wording
We believe we have significant expansion opportunities in international markets. We started by serving customers in North America and, in 2019, we expanded our operations to London, England to penetrate the European region. In 2022, we opened our office in Sydney, Australia to capitalize on the opportunities in Asia Pacific. In 2024, we expanded our presence in the European region by adding operations in Dublin, Ireland. In 2025, we continued our expansion into the Asia Pacific and European regions by adding operations in Singapore and France, respectively. In 2026, we further expanded our North American presence by adding operations in Canada. We have already experienced significant growth with international sales outside of the Americas accounting for 36.6% of our revenue for the three months ended March 31, 2026. We also continue to expand our product offerings to better serve the international market. As of the date of this Quarterly Report on Form 10-Q, we offer text messaging capabilities in more than 20 countries, and we offer our platform in English, French, German, Portuguese, Korean, Spanish, Italian, Dutch, Swedish, Spanish (Mexico), and Polish. We believe that the introduction of additional languages to our platform increases our efficacy and ease of use in other regions. We also currently only bill in U.S. Dollars, and we believe that adding additional currencies to our platform will help us further our international expansion efforts.
Current wording
We believe we have significant expansion opportunities in international markets. We started by serving customers in North America and, in 2019, we expanded our operations to London, England to penetrate the European region. In 2022, we opened our office in Sydney, Australia to capitalize on the opportunities in Asia Pacific. In 2024, we expanded our presence in the European region by adding operations in Dublin, Ireland. In 2025, we continued our expansion into the Asia Pacific and European regions by adding operations in Singapore and France, respectively. In 2026, we further expanded our North American presence by adding operations in Canada. We have already experienced significant growth with international sales outside of the Americas accounting for 36.8% of our revenue for the six months ended June 30, 2026. We also continue to expand our product offerings to better serve the international market. As of the date of this Quarterly Report on Form 10-Q, we offer text messaging capabilities in more than 20 countries, and we offer our platform in English, French, German, Portuguese, Korean, Spanish, Italian, Dutch, Swedish, Spanish (Mexico), and Polish. We believe that the introduction of additional languages to our platform increases our efficacy and ease of use in other regions. We also currently only bill in U.S. Dollars, and we believe that adding additional currencies to our platform will help us further our international expansion efforts.
Previous wording
Since our inception, we have been focused on product innovation, seeking to create what we believe is the best software solution for our customers. We originally launched our platform with email messaging as our first marketing channel. Since then, we have successfully added other marketing channels, such as text messaging, mobile push, and WhatsApp messaging, and additional use cases, such as Customer Agent, Marketing Agent, Marketing Analytics, and Advanced KDP. We have also introduced AI features that provide customers with AI-powered tools to streamline data segmentation, create and orchestrate campaigns, and drive better engagement, including our Marketing Agent and Customer Agent offerings as well as our MCP Server capability.
Current wording
Since our inception, we have been focused on product innovation, seeking to create what we believe is the best software solution for our customers. We originally launched our platform with email messaging as our first marketing channel. Since then, we have successfully added other marketing channels, such as text messaging, mobile push, and WhatsApp messaging, and additional use cases, such as Customer Agent, Composer, Marketing Analytics, and Advanced KDP. We have also introduced AI features that provide customers with AI-powered tools to streamline data segmentation, create and orchestrate campaigns, and drive better engagement, including our Composer and Customer Agent offerings as well as our MCP Server capability.
Previous wording
As of March 31, 2026, we had 4,175 customers generating over $50,000 of ARR, compared to 3,030 customers generating over $50,000 of ARR as of March 31, 2025, representing growth of 38% year-over-year.
Current wording
As of June 30, 2026, we had 4,477 customers generating over $50,000 of ARR, compared to 3,291 customers generating over $50,000 of ARR as of June 30, 2025, representing growth of 36% year-over-year.
Previous wording
As of March 31, 2026 and 2025, our NRR was 110% and 108%, respectively. The increase in this metric from March 31, 2025 to March 31, 2026 was largely driven by expansion of existing customer plans and cross-selling additional offerings.
Current wording
As of June 30, 2026 and 2025, our NRR was 109% and 108%, respectively. The increase in this metric from June 30, 2025 to June 30, 2026 was largely driven by expansion of existing customer plans and cross-selling additional offerings.
Previous wording
Three Months Ended March 31, 2026 Compared to the Three Months Ended March 31, 2025
Current wording
Three and Six Months Ended June 30, 2026 Compared to the Three and Six Months Ended June 30, 2025
Previous wording
Revenue for the three months ended March 31, 2026 increased by $78.2 million or 27.9%, to $358.0 million compared to $279.8 million for the three months ended March 31, 2025. The increase was due to new business, including new customers, geographic expansion, expanded usage of our platform, including our text messaging and WhatsApp messaging channels, and new offerings. For the three months ended March 31, 2026, sales to existing customers accounted for approximately 44% of the increase in revenue while approximately 56% of the increase in revenue was related to new customers. Sales to new customers represent the revenue recognized from new customers acquired in the 12 months prior to the period end.
Current wording
Revenue for the three months ended June 30, 2026 increased by $77.5 million or 26.4%, to $370.6 million compared to $293.1 million for the three months ended June 30, 2025. The increase was due to new business, including new customers, geographic expansion, expanded usage of our platform, including our text messaging and WhatsApp messaging channels, and new offerings. For the three months ended June 30, 2026, sales to existing customers accounted for approximately 42% of the increase in revenue while approximately 58% of the increase in revenue was related to new customers. Sales to new customers represent the revenue recognized from new customers acquired in the 12 months prior to the period end.
Previous wording
Cost of revenue for the three months ended March 31, 2026 increased by $21.4 million or 31.6%, to $89.1 million compared to $67.7 million for the three months ended March 31, 2025. This was primarily due to an increase of approximately $11.7 million in outbound communication sending costs on behalf of our customers, driven by increased text message and WhatsApp usage, $3.5 million in salaries and related personnel expenses as a result of an increase in salaries, allocatable costs, and increased target bonus percentages for our Company-wide bonus program in 2026, $2.7 million in cloud-based infrastructure costs, $1.9 million in amortization from capitalized software costs, and $1.2 million in technology expenses.
Current wording
Cost of revenue for the three months ended June 30, 2026 increased by $30.2 million or 42.4%, to $101.5 million compared to $71.2 million for the three months ended June 30, 2025. This was primarily due to an increase of approximately $14.6 million in outbound communication sending costs on behalf of our customers, driven by increased text message and WhatsApp usage, $8.0 million in cloud-based infrastructure costs, $3.0 million in salaries and related personnel expenses as a result of an increase in salaries, allocatable costs, and increased target bonus percentages for our Company-wide bonus program in 2026, $2.0 million in amortization from capitalized software costs, and $2.0 million in technology expenses.
Previous wording
Gross profit for the three months ended March 31, 2026 increased by $56.8 million or 26.8%, to $268.9 million compared to $212.1 million for the three months ended March 31, 2025. This increase was primarily due to revenue growth offset by an increase in cost of revenue due to increased usage.
Current wording
Gross profit for the three months ended June 30, 2026 increased by $47.2 million or 21.3%, to $269.1 million compared to $221.9 million for the three months ended June 30, 2025. This increase was primarily due to revenue growth offset by an increase in cost of revenue due to increased usage.
Previous wording
Selling and marketing expenses for the three months ended March 31, 2026 increased by $10.5 million or 8.5%, to $134.1 million compared to $123.5 million for the three months ended March 31, 2025. This increase was primarily due to an increase of approximately $10.4 million in salaries and related personnel expenses as a result of increased salaries as well as a bonus plan change to increase target bonus percentages, $1.7 million in partnership-related expenses across our ecosystem, and $1.6 million in professional services, partially offset by a decrease of $2.2 million related to timing of marketing campaigns and $1.6 million in stock-based compensation driven by forfeitures of unvested equity awards and the completion of vesting of certain equity awards.
Current wording
Selling and marketing expenses for the six months ended June 30, 2026 increased by $23.2 million or 9.3%, to $273.4 million compared to $250.2 million for the six months ended June 30, 2025. This increase was primarily due to an increase of approximately $16.0 million in salaries and related personnel expenses as a result of increased salaries as well as a bonus plan change to increase target bonus percentages, $3.9 million in partnership-related expenses across our ecosystem, and $3.1 million in professional services, $1.2 million in marketing expenses associated with our advertising campaigns across multiple channels of media, $1.2 million in technology expenses, partially offset by a decrease of $2.1 million in stock-based compensation driven by forfeitures of unvested equity awards and the completion of vesting of certain equity awards.
Previous wording
Research and development costs for the three months ended March 31, 2026 increased by $10.7 million or 15.4%, to $80.0 million compared to $69.3 million for the three months ended March 31, 2025. This increase was primarily due to an increase of approximately $4.8 million in salaries and related personnel expenses as a result of increased allocatable costs and a bonus plan change to increase target bonus percentages and $4.5 million in technology expenses.
Current wording
Research and development costs for the three months ended June 30, 2026 increased by $19.5 million or 26.9%, to $91.9 million compared to $72.5 million for the three months ended June 30, 2025. This increase was primarily due to an increase of approximately $9.3 million in salaries and related personnel expenses as a result of increased allocatable costs and a bonus plan change to increase target bonus percentages, $8.9 million in technology expenses, and $1.2 million in stock-based compensation due to the vesting of RSUs.
Previous wording
General and administrative expenses for the three months ended March 31, 2026 increased by $10.1 million or 23.4%, to $53.1 million compared to $43.0 million for the three months ended March 31, 2025. This increase was primarily due to an increase of approximately $3.9 million in stock-based compensation from the vesting of RSUs, $2.1 million in technology expenses, $2.1 million in professional services, and $1.8 million in payment processing fees related to increased volume of customer transactions.
Current wording
General and administrative expenses for the three months ended June 30, 2026 decreased by $1.3 million or 2.4%, to $52.8 million compared to $54.1 million for the three months ended June 30, 2025. This decrease was primarily due to a decrease of $12.8 million in salaries and related personnel expenses as a result of lower payroll taxes from decreased option exercises and decreased allocatable costs, partially offset by an increase of approximately $4.5 million in stock-based compensation from the vesting of RSUs and issuance of PSUs, $2.1 million in technology expenses, $2.1 million in professional services, and $1.9 million in payment processing fees related to increased volume of customer transactions.
Previous wording
Other expense, net, for the three months ended March 31, 2026 decreased by $0.2 million or 34.3% to $(0.4) million compared to $(0.7) million for the three months ended March 31, 2025. This decrease was primarily due to favorable foreign exchange fluctuations.
Current wording
Other expense, net, for the three months ended June 30, 2026 decreased by $0.4 million or 43.8% to $(0.5) million compared to $(0.9) million for the three months ended June 30, 2025. This decrease was primarily due to favorable foreign exchange fluctuations.
Previous wording
Interest income for the three months ended March 31, 2026 increased by an immaterial amount compared to the three months ended March 31, 2025.
Current wording
Interest income for the three months ended June 30, 2026 decreased by an immaterial amount compared to the three months ended June 30, 2025.
Previous wording
Since our inception through March 31, 2026, we have financed our operations primarily through payments received from our customers and sales of equity securities, including the completion of our IPO in September 2023. As of March 31, 2026, our principal sources of liquidity included cash, cash equivalents, and restricted cash totaling $985.3 million, with such amounts held for working capital purposes. Our cash equivalents were comprised of $376.1 million in money market funds.
Current wording
Since our inception through June 30, 2026, we have financed our operations primarily through payments received from our customers and sales of equity securities, including the completion of our IPO in September 2023. As of June 30, 2026, our principal sources of liquidity included cash, cash equivalents, and restricted cash totaling $833.4 million, with such amounts held for working capital purposes. Our cash equivalents were comprised of $605.0 million in money market funds.
Previous wording
Net cash provided by operating activities of $34.3 million for the three months ended March 31, 2026 was primarily attributable to a net income of $9.0 million adjusted for non-cash charges of $78.8 million and net cash outflows of $53.5 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $41.8 million of stock-based compensation expense, $13.2 million of prepaid marketing expense amortization, $9.6 million of amortization related to deferred contract acquisition costs, $7.0 million of operating lease costs, and $6.3 million of depreciation and amortization expense. Net cash outflows from changes in operating assets and liabilities primarily consisted of a $21.0 million increase in deferred contract acquisition costs related to higher sales commissions resulting from our increased revenues, $17.2 million decrease in accrued expenses and accounts payable due to timing of payments, a $12.2 million increase in accounts receivable due to an increase in customer billings, a $5.8 million increase in prepaid expenses and other assets, and a $5.5 million decrease in operating lease liabilities due to payments related to our operating lease obligations. The cash outflow was offset by cash inflows primarily from a $8.2 million increase in deferred revenue resulting from increased billings for subscriptions.
Current wording
Net cash provided by operating activities of $128.2 million for the six months ended June 30, 2026 was primarily attributable to a net income of $0.2 million adjusted for non-cash charges of $169.0 million and net cash outflows of $41.1 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $93.2 million of stock-based compensation expense, $26.4 million of prepaid marketing expense amortization, $20.4 million of amortization related to deferred contract acquisition costs, $14.3 million of operating lease costs, and $13.6 million of depreciation and amortization expense. Net cash outflows from changes in operating assets and liabilities primarily consisted of a $40.5 million increase in deferred contract acquisition costs related to higher sales commissions resulting from our increased revenues, a $19.7 million increase in accounts receivable due to an increase in customer billings, a $12.7 million decrease in operating lease liabilities due to payments related to our operating lease obligations, and a
Previous wording
Net cash provided by operating activities of $14.4 million for the three months ended March 31, 2025 was primarily attributable to a net loss of $14.1 million adjusted for non-cash charges of $70.4 million and net cash outflows of $41.9 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $38.3 million of stock-based compensation expense, $13.2 million of prepaid marketing expense amortization, $6.6 million of amortization related to deferred contract acquisition costs, $5.8 million of operating lease costs, and $4.8 million of depreciation and amortization expense. Net cash outflows from changes in operating assets and liabilities primarily consisted of a $18.1 million decrease in accrued expenses and accounts payable due to timing of payments, a $12.6 million increase in accounts receivable due to an increase in customer billings, a $11.0 million increase in deferred contract acquisition costs related to increase in sales commissions resulting from the increase in revenues, a $5.9 million increase in prepaid expenses and other assets, and a $5.4 million decrease in operating lease liabilities due to payments related to our operating lease obligations. The cash outflow was offset by cash inflows primarily from a $11.7 million increase in deferred revenue resulting from increased billings for subscriptions.
Current wording
Net cash provided by operating activities of $70.1 million for the six months ended June 30, 2025 was primarily attributable to a net loss of $38.4 million adjusted for non-cash charges of $146.5 million and net cash outflows of $38.0 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $83.7 million of stock-based compensation expense, $26.4 million of prepaid marketing expense amortization, $13.8 million of amortization related to deferred contract acquisition costs, $12.4 million of operating lease costs, $8.7 million of depreciation and amortization expense, and $1.5 million of bad debt expense. Net cash outflows from changes in operating assets and liabilities primarily consisted of a $22.6 million increase in deferred contract acquisition costs related to an increase in sales commissions resulting from the increase in revenues, a $17.3 million increase in accounts receivable due to an increase in customer billings, a $11.3 million decrease in operating lease liabilities due to payments related to our operating lease obligations, a $4.5 million increase in prepaid expenses and other assets, and a $0.3 million decrease in accrued expenses and accounts payable due to timing of payments. The cash outflow was offset by cash inflows primarily from a $18.2 million increase in deferred revenue resulting from increased billings for subscriptions.
Previous wording
Net cash used in investing activities of $7.7 million for the three months ended March 31, 2025 consisted of $5.1 million of capitalized software development costs and $2.7 million purchases of property and equipment.
Current wording
Net cash used in investing activities of $26.7 million for the six months ended June 30, 2026 consisted primarily of $18.2 million purchases of property and equipment and $8.0 million of capitalized software development costs.
Previous wording
Net cash used in investing activities of $15.7 million for the three months ended March 31, 2026 consisted of $11.7 million purchases of property and equipment and $3.6 million of capitalized software development costs.
Current wording
Net cash used in investing activities of $15.0 million for the six months ended June 30, 2025 consisted of $10.3 million of capitalized software development costs and $4.7 million purchases of property and equipment.
Previous wording
Net cash used in financing activities was $98.8 million for the three months ended March 31, 2026 and primarily consisted of approximately $100.0 million used for payments relating to the accelerated share repurchase and $2.8 million used for the payment of employee tax obligations related to the net share settlement of stock-based compensation awards upon vesting offset by $3.2 million of proceeds from our employee stock purchase plan and $0.7 million of proceeds from the exercise of stock options.
Current wording
Net cash used in financing activities was $333.7 million for the six months ended June 30, 2026 and primarily consisted of approximately $333.6 million used for payments relating to our share repurchase program, including the accelerated share repurchase, and $4.9 million used for the payment of employee tax obligations related to the net share settlement of stock-based compensation awards upon vesting offset by $4.0 million of proceeds from our employee stock purchase plan and $0.8 million of proceeds from the exercise of stock options.
Previous wording
Net cash used in financing activities was immaterial for the three months ended March 31, 2025 and primarily consisted of approximately $3.5 million of proceeds from our employee stock purchase plan and $0.9 million of proceeds from the exercise of stock options offset by $4.4 million used for the payment of employee tax obligations related to the net share settlement of stock-based compensation awards upon vesting.
Current wording
Net cash used in financing activities was $1.4 million for the six months ended June 30, 2025 and primarily consisted of approximately $6.1 million of proceeds from our employee stock purchase plan and $1.5 million of proceeds from the exercise of stock options offset by $8.9 million used for the payment of employee tax obligations related to the net share settlement of stock-based compensation awards upon vesting.
Previous wording
On March 2, 2026, the Company announced that its Board of Directors authorized a share repurchase program (the “Share Repurchase Program”), pursuant to which the Company may repurchase up to $500.0 million of its issued and outstanding shares of Series A common stock. Repurchases under the Share Repurchase Program may be made from time to time in the open market, through privately negotiated transactions or other means, including pursuant to 10b5-1 plans, or any combination of the foregoing, and in compliance with applicable securities laws and other applicable requirements. As part of the Share Repurchase Program, the Company entered into an accelerated share repurchase (the “ASR Agreement”) with a third-party investment bank (the “Dealer”) to repurchase $100.0 million of shares of its Series A common stock. Under the ASR Agreement, on March 3, 2026, the Company paid the Dealer $100.0 million and received an initial delivery of 4,307,869 shares of Series A common stock at a price of $18.87 per share, representing approximately 75% of the total value of shares to be received under the ASR Agreement. The shares received upon initial delivery were recorded as treasury stock, resulting in a reduction to stockholders’ equity. The remaining portion to be repurchased under the ASR Agreement represents a forward contract indexed to the Company's own stock and will be recorded as additional-paid-in capital as a reduction to stockholders’ equity.
Current wording
On March 2, 2026, the Company announced that its Board of Directors authorized a share repurchase program (the “Share Repurchase Program”), pursuant to which the Company may repurchase up to $500.0 million of its issued and outstanding shares of Series A common stock. Repurchases under the Share Repurchase Program may be made from time to time in the open market, through privately negotiated transactions or other means, including pursuant to 10b5-1 plans, or any combination of the foregoing, and in compliance with applicable securities laws and other applicable requirements. As part of the Share Repurchase Program, the Company entered into an accelerated share repurchase agreement (the “ASR Agreement”) with a third-party investment bank (the “Dealer”) to repurchase $100.0 million of shares of its Series A common stock. Under the ASR Agreement, on March 3, 2026, the Company paid the Dealer $100.0 million and received an initial delivery of 4,307,869 shares of Series A common stock at a price of $18.87 per share, representing approximately 75% of the total value of shares to be received under the ASR Agreement.
Previous wording
We enter into various noncancellable lease agreements for certain office space and equipment used in the normal course of business. Our noncancellable lease obligations as of March 31, 2026 were $145.2 million, with $24.6 million payable within 12 months.
Current wording
We enter into various noncancellable lease agreements for certain office space and equipment used in the normal course of business. Our noncancellable lease obligations as of June 30, 2026 were $140.0 million, with $23.9 million payable within 12 months.
Previous wording
We enter into various noncancellable agreements with marketing vendors and various service providers. Our noncancellable obligations as of March 31, 2026 were $875.2 million.
Current wording
We enter into various noncancellable agreements with marketing vendors and various service providers. Our noncancellable obligations as of June 30, 2026 were $816.6 million.
Previous wording
There have been no significant changes in our critical accounting policies and estimates during the three months ended March 31, 2026 as compared to the critical accounting policies and estimates disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on February 10, 2026.
Current wording
There have been no significant changes in our critical accounting policies and estimates during the six months ended June 30, 2026 as compared to the critical accounting policies and estimates disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on February 10, 2026.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Revenue for the six months ended June 30, 2026 increased by $155.6 million or 27.2%, to $728.6 million compared to $572.9 million for the six months ended June 30, 2025. The increase was due to new business, including new customers, geographic expansion, expanded usage of our platform, including our text messaging and WhatsApp messaging channels, and new offerings. For the six months ended June 30, 2026, sales to existing customers accounted for approximately 43% of the increase in revenue while approximately 57% of the increase in revenue was related to new customers. Sales to new customers represent the revenue recognized from new customers acquired in the 12 months prior to the period end.
Current report — wording carried from elsewhere
Cost of revenue for the six months ended June 30, 2026 increased by $51.7 million or 37.2%, to $190.6 million compared to $138.9 million for the six months ended June 30, 2025. This was primarily due to an increase of approximately $26.3 million in outbound communication sending costs on behalf of our customers, driven by increased text message and WhatsApp usage, $10.7 million in cloud-based infrastructure costs, $6.6 million in salaries and related personnel expenses as a result of an increase in salaries, allocatable costs, and increased target bonus percentages for our Company-wide bonus program in 2026, $3.9 million in amortization from capitalized software costs, and $3.3 million in technology expenses.
Current report — wording carried from elsewhere
Gross profit for the six months ended June 30, 2026 increased by $104.0 million or 24.0%, to $538.0 million compared to $434.0 million for the six months ended June 30, 2025. This increase was primarily due to revenue growth offset by an increase in cost of revenue due to increased usage.
Current report — wording carried from elsewhere
$6.4 million increase in prepaid expenses and other assets. The cash outflow was offset by cash inflows primarily from a $23.4 million increase in accrued expenses and accounts payable due to timing of payments and a $16.3 million increase in deferred revenue resulting from increased billings for subscriptions.