Klaviyo (KVYO) Revenue Acceleration and International Momentum Highlight Platform Evolution

Sands Capital Management, LLC's Technology Innovators Fund released its Q4 2025 investor letter for "Technology Innovators Fund". A copy of the letter can be downloaded here. The Fund delivered mixed performance during the fourth quarter of 2025, as market returns were increasingly driven by a narrow group of large-cap growth stocks, with the portfolio’s top ten holdings accounting for roughly 59% of assets, while several high-valuation innovation names faced pressure from slowing momentum and investor risk aversion. The fund’s results reflected stock-specific challenges rather than broad macroeconomic shocks, with weaker performance in certain emerging technology holdings offset by strength in select platform and infrastructure businesses. During the quarter, the portfolio declined 6.3% on a quarter-to-date basis, and the fund generated a 14.7% return over the one year, reflecting stock-specific challenges rather than broad macroeconomic shocks, with weaker performance in certain emerging technology holdings offset by strength in select platform and infrastructure businesses. Management emphasized its long-term investment horizon, noting an average annual portfolio turnover of 21%, and stated that many portfolio companies continued to generate solid full-year earnings growth in 2025, supported by durable revenue models tied to artificial intelligence, cloud computing, and digital transformation, even as enthusiasm for speculative growth faded late in the quarter. In addition, please check the Fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Sands Capital Management, LLC's Technology Innovators Fund highlighted stocks like Klaviyo, Inc. (NYSE:KVYO). Klaviyo, Inc. (NYSE:KVYO) is a marketing automation platform that helps businesses personalize email and SMS campaigns using customer data analytics. The one-month return of Klaviyo, Inc. (NYSE:KVYO) was -21.91% while its shares traded between $18.23 and $47.74 over the last 52 weeks. On February 13, 2026, Klaviyo, Inc. (NYSE:KVYO) stock closed at approximately $18.60 per share, with a market capitalization of about $5.669 billion.

Sands Capital Management, LLC's Technology Innovators Fund stated the following regarding Klaviyo, Inc. (NYSE:KVYO) in its Q4 2025 investor letter:

"Klaviyo, Inc. (NYSE:KVYO) is an innovative provider of business-to-consumer (B2C) marketing technology. Third-quarter results exceeded expectations, with revenue growth accelerating sequentially to 32 percent and net revenue expansion improving for the first time since the third quarter of 2021. Management commentary was equally strong, highlighting a sixth consecutive quarter of international acceleration, record mid-market customer wins and expansions, and growing interest in its Service product. In our view, the business’s share price has yet to reflect its underlying momentum since entering public markets, likely due to misconceptions that Klaviyo is a seat-based software company exposed to AI disruption. We believe continued strong execution will help redefine Klaviyo as a platform business and beneficiary of emerging agentic commerce trends."

Klaviyo, Inc. (NYSE:KVYO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held Klaviyo, Inc. (NYSE:KVYO) at the end of the third quarter, which was 41 in the previous quarter. While we acknowledge the risk and potential of Klaviyo, Inc. (NYSE:KVYO) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Klaviyo, Inc. (NYSE:KVYO) and shared the list of the best machine learning stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.