Klaviyo stock soars on $500 million buyback plan

Investing.com – Klaviyo Inc (NYSE:KVYO) stock jumped 6.7% on Monday after the company announced a $500 million share repurchase plan, including an immediate $100 million accelerated share buyback.

This repurchase authorization, approved by Klaviyo’s board of directors, accounts for approximately 10% of the company’s market value and marks its first share repurchase program.

Klaviyo co-founder and co-CEO Andrew Bialecki said, “This new authorization and accelerated share repurchase demonstrate the confidence of our board and management team in the durability of our strategy, the scale of future opportunities, and our belief that Klaviyo represents an attractive long-term investment.”

The B2C customer relationship management company had over $1 billion in cash and cash equivalents as of the end of 2025, with no debt, and generated $190 million in free cash flow for the year.

William Blair analyst Arjun Bhatia reiterated an outperform rating on the stock. The analyst commented, “This marks the company’s first share repurchase, following a series of software companies announcing or extending their buyback programs. The $500 million size represents about 10% of Klaviyo’s market value. The buyback plan indicates management’s confidence in the business’s durability and long-term growth opportunities, as well as the view that the stock is undervalued at a 15x free cash flow valuation.”

According to Bhatia, Klaviyo’s trading price is at 15 times the expected 2027 free cash flow, and he expects 2026 free cash flow growth to exceed 20%.

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