KlaviyoKVYO +3.30%26 Gross Margin % is 75.11% as of Mar. 2026, which is 1% above its 10-year median of 74.52. GuruFocus rates KVYO with a GF Score™ of 26/100 and a GF Value™ of $40.61 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,678 Software companies, Klaviyo ranks better than 84.17% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Klaviyo's Gross Profit for the
three
months ended in Mar. 2026 was $269 Mil. Klaviyo's Revenue for the
three
months ended in Mar. 2026 was $358 Mil. Therefore, Klaviyo's Gross Margin % for the quarter that ended in Mar. 2026 was 75.11%.
The historical rank and industry rank for Klaviyo's Gross Margin % or its related term are showing as below:
KVYO'
s Gross Margin % Range Over the Past 10 Years
Min: 70.86 Med: 74.52 Max: 76.39
Current: 74.55
During the past 5 years, the highestGross Margin % of Klaviyo was 76.39%. The lowest was 70.86%. And the median was 74.52%.
KVYO's Gross Margin % is ranked better than 84.17% of 2678
companies
in the Software industry
Industry Median: 40.455
vs KVYO: 74.55
Klaviyo had a gross margin of 75.11% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Klaviyo was 0.00% per year.
Klaviyo (NYSE:KVYO) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Klaviyo had a gross margin of 75.11% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Klaviyo Gross Margin % Related Terms
Klaviyo Gross Margin % Historical Data
* Premium members only.
The historical data trend for Klaviyo's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
KVYO vs DAVE, SRAD, OCTV: Gross Margin % Comparison
For the Software - Application subindustry, Klaviyo's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Klaviyo Gross Margin % vs Software Industry
For the Software industry and Technology sector, Klaviyo's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Klaviyo's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Klaviyo (KVYO) has a Gross Margin % of 75.11% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Klaviyo and its competitors. This is near median its historical median of 74.52. Over the past decade, Klaviyo's Gross Margin % has ranged from 70.86 to 76.39. According to the industry distribution chart, Klaviyo ranks #424 out of 2678 companies in the Software industry, placing it in the top 15.8%.
Is Klaviyo's Gross Margin % too high?
Klaviyo's current Gross Margin % of 75.11% is near median its 10-year median of 74.52. Over the past 10 years, this metric has ranged from a low of 70.86 to a high of 76.39. The Software industry median Gross Margin % is 40.46. Klaviyo's value of 75.11% is 85.7% above this industry median. Based on the distribution chart, Klaviyo ranks #424 out of 2678 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Klaviyo has a GF Score™ of 26/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Klaviyo's Gross Margin % compare to DAVE and SRAD?
According to the Software industry distribution chart, Klaviyo ranks #424 out of 2678 companies for Gross Margin %. This places Klaviyo in the top 16% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.46. Klaviyo's value of 75.11% is 85.7% above this benchmark. Historically, Klaviyo's own Gross Margin % has ranged from 70.86 to 76.39 over the past decade. While the company's 10-year median is 74.52 vs. the industry median of 40.46, Klaviyo has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.46, based on 2,678 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Klaviyo's current Gross Margin % of 75.11% is 85.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Klaviyo and its competitors. For the Software industry, the median Gross Margin % is 40.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Klaviyo's current Gross Margin % is 75.11%, which is near median its own 10-year median of 74.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Klaviyo stock overvalued right now?
Based on GuruFocus' analysis, Klaviyo (KVYO) is currently considered Significantly Undervalued. The stock's GF Value™ is $40.61, compared to a current price of $16.90 — trading 58.4% below its estimated fair value. The current Gross Margin % is 75.11%, which is near median its 10-year median of 74.52 and 85.7% above the Software industry median of 40.46. Klaviyo's overall GF Score™ is 26/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Klaviyo (KVYO), the current Gross Margin % is 75.11% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Klaviyo (KVYO) Overvalued in 2026?
Based on GuruFocus' analysis, Klaviyo stock appears to be undervalued.
The current stock price of $16.90 is trading 58.4% below its estimated GF Value™ of $40.61.
GuruFocus considers Klaviyo to be Significantly Undervalued.
Key valuation signals for KVYO:
Gross Margin %: 75.11% (near median its 10-year median of 74.52)
GF Value™: $40.61 vs. price of $16.90 (58.4% below fair value)
Industry Position: 85.7% above the Software median (#424 of 2678)
No single metric tells the full story. See the KVYO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Klaviyo Inc is a technology company that provides a software-as-a-service (SaaS) platform to enable its customers to send the right messages at the right time across email, short message service, and push notifications, more accurately measure and predict performance, and deploy specific actions and campaigns. The platform combines proprietary data and application layers into one solution with machine learning and artificial intelligence capabilities. It is focused on marketing automation within eCommerce as its first application use case. It generates revenue through the sale of subscriptions to its customers for the use of its platform. Geographically, the company generates the majority of its revenue from the Americas, followed by EMEA and APAC.
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