Klaviyo vs Shopify: Revenue, Profit and Business Model
Klaviyo reported $1.2B of revenue in FY2025 and a net loss of $31.8M. Shopify reported $11.6B of revenue in FY2025 and $1.2B of net income.
Latest financial snapshot
Financial summary
Klaviyo
Klaviyo's revenue rose from $290.6 million in 2021 to $472.7 million in 2022, $698.1 million in 2023, $937.5 million in 2024 and $1.234 billion in 2025. The 2023 net loss of $308.2 million was inflated by IPO-related stock compensation; losses narrowed to $46.1 million in 2024 and $31.8 million in 2025. On a non-GAAP basis the business is profitable: 2025 non-GAAP operating margin was 14% and free cash flow margin was 16%. For Q2 2026 it reported $370.6 million revenue, 73% gross margin, a $15.0 million GAAP operating loss, $50.9 million non-GAAP operating income and $82.9 million of free cash flow.
Shopify
Shopify's numbers tell a story of pandemic boom, 2022 overreach and a disciplined reset. Revenue jumped 86% in 2020, but a costly push into logistics (including the $2.1 billion Deliverr deal) and a 2022 slowdown led to a $3.46 billion net loss that year. In 2023 Shopify sold its logistics business to Flexport and cut about 20% of staff. Since then revenue has grown 26% (2023), 26% (2024) and 30% (2025) to $11.56 billion, with 2025 free cash flow above $2 billion. GAAP net income swings with the value of equity investments such as Affirm, Global-E and Klaviyo, which is why 2024 net income ($2.02 billion) exceeded 2025 ($1.23 billion).
Revenue and profit by year
Klaviyo
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $1.2B | -$31.8M | -2.6% | +31.6% | Source |
| FY2024 | $937.5M | -$46.1M | -4.9% | +34.3% | Source |
| FY2023 | $698.1M | -$308.2M | -44.2% | +47.7% | Source |
| FY2022 | $472.7M | -$49.2M | -10.4% | +62.7% | Source |
| FY2021 | $290.6M | -$79.4M | -27.3% | — | Source |
Shopify
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $11.6B | $1.2B | 10.7% | +30.1% | Source |
| FY2024 | $8.9B | $2B | 22.7% | +25.8% | Source |
| FY2023 | $7.1B | $132M | 1.9% | +26.1% | Source |
| FY2022 | $5.6B | -$3.5B | -61.8% | +21.4% | Source |
| FY2021 | $4.6B | $2.9B | 63.2% | +57.4% | Source |
| FY2020 | $2.9B | $319.5M | 10.9% | +85.6% | Source |
| FY2019 | $1.6B | -$124.8M | -7.9% | +47.0% | Source |
| FY2018 | $1.1B | -$64.6M | -6.0% | +59.4% | Source |
| FY2017 | $673.3M | -$40M | -5.9% | — | Source |
Where the revenue comes from
Klaviyo
- Subscription platform (email, CDP, reviews, service, AI)
Recurring subscriptions priced mainly by active profiles, with add-on products. Klaviyo does not break out revenue by product.
- SMS, MMS and WhatsApp messaging
Message-credit plans; a growing share of revenue that carries carrier costs and lower gross margin.
Shopify
- Subscription Solutions
Recurring software subscriptions, Shopify Plus, POS subscriptions, themes, and apps.
- Merchant Solutions
Payments, transaction services, shipping, capital, and other merchant services.
- Ecosystem
Developer, partner, and app ecosystem that extends merchant capabilities.
Business model and strategy
Klaviyo
How it makes money
Klaviyo sells software subscriptions to consumer brands. Email plans are priced mainly by the number of active profiles a brand stores; SMS and WhatsApp are sold as message credits; and add-ons such as Klaviyo CDP, Reviews, Customer Hub/service tools and AI agents raise spend per account.
Growth strategy
Klaviyo is pushing upmarket (4,477 customers paid more than $50,000 in ARR at June 30, 2026, up 36%), expanding abroad, cross-selling SMS, WhatsApp, Reviews, CDP and service products, and repositioning from email tool to autonomous B2C CRM. Partnerships with Shopify, Stripe, Anthropic and Figma extend where its data and agents can be used.
Competitive advantage
Klaviyo's edge is data plus distribution. Its event database stores every product view, cart and order alongside the customer profile, so segmentation and triggered messages work in near real time without an outside data warehouse.
Shopify
How it makes money
Shopify earns money in two ways. Subscription Solutions (about $2.75 billion in 2025) covers monthly plans from Basic to Shopify Plus, POS Pro, apps and themes. Merchant Solutions (about $8.8 billion in 2025, roughly three-quarters of revenue) is tied to merchant sales: Shopify Payments and Shop Pay processing fees, Shopify Capital, shipping labels, currency conversion, POS hardware and partner revenue shares.
Growth strategy
Shopify is growing beyond small online stores. It is winning enterprise brands on Shopify Plus and Commerce Components, building B2B wholesale (B2B GMV rose 84% in Q4 2025), expanding Shopify POS for physical retail (offline GMV up 29% in Q4 2025) and pushing internationally (international GMV up 50% in Q4 2025).
Competitive advantage
Shopify's edge is the combination of a hosted platform, an integrated checkout (Shop Pay) and a large app and developer ecosystem. Merchants that rely on dozens of integrated apps, Shopify Payments and Shopify POS face real switching costs, while Shop Pay's stored buyer credentials across the network help checkout conversion. Shop Pay GMV grew 62% to about $43 billion in Q4 2025.
Questions about Klaviyo vs Shopify
Which company has higher revenue — Klaviyo, Inc. or Shopify Inc.?
Klaviyo, Inc. reported $1.2B (FY2025), while Shopify Inc. reported $11.6B (FY2025). By last reported revenue, Shopify Inc. is the larger business, with Klaviyo, Inc. reporting a smaller revenue base.
What is the market cap of Klaviyo, Inc. vs Shopify Inc.?
Klaviyo, Inc.'s market capitalisation stands at $4.5B, while Shopify Inc.'s is $183.0B. Shopify Inc. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Klaviyo, Inc..
Which is more financially efficient — Klaviyo, Inc. or Shopify Inc.?
Klaviyo, Inc. generates $521k / employee in revenue per employee, while Shopify Inc. generates $1.52M / employee. Shopify Inc. shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Klaviyo, Inc. and Shopify Inc. make money?
Klaviyo, Inc. and Shopify Inc. generate revenue in fundamentally different ways. Klaviyo, Inc.: Klaviyo sells software subscriptions to consumer brands. Shopify Inc.: Shopify earns money in two ways.
Which company is valued higher relative to revenue — Klaviyo, Inc. or Shopify Inc.?
On a price-to-sales (P/S) basis, Klaviyo, Inc. trades at 3.6x P/S and Shopify Inc. at 15.8x P/S. Shopify Inc. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Klaviyo, Inc.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Klaviyo, Inc. bigger than Shopify Inc.?
By last reported revenue, Shopify Inc. ($11.6B (FY2025)) is the larger company compared to Klaviyo, Inc. ($1.2B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Klaviyo vs Shopify overview