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Q2 25 EPS
$1.19
BEAT +13.26%
Est. $1.05
Q2 25 Revenue
$1.23B
BEAT +3.54%
Est. $1.19B
vs S&P Since Q2 25
+58.3%
BEATING MARKET
TWLO +73.5% vs S&P +15.2%
Market Reaction
Did TWLO Beat Earnings? Q2 2025 Results
Twilio posted a strong second quarter, beating Wall Street on both the top and bottom lines as accelerating growth in its Communications segment drove results well ahead of expectations. Revenue climbed 13.5% year-over-year to $1.23 billion, ahead of… Read more Twilio posted a strong second quarter, beating Wall Street on both the top and bottom lines as accelerating growth in its Communications segment drove results well ahead of expectations. Revenue climbed 13.5% year-over-year to $1.23 billion, ahead of the $1.19 billion consensus, while non-GAAP EPS of $1.19 cleared the $1.05 estimate by 13.26%, lifted by a 37% year-over-year improvement in non-GAAP earnings. The Communications segment, which generated $1.15 billion in revenue, up 14% year-over-year, was the clear engine of the quarter, as messaging and voice demand remained resilient even as gross margin compression from A2P fees drew scrutiny from some analysts. Active Customer Accounts expanded to over 349,000 from 316,000 a year ago, and Dollar-Based Net Expansion Rate rose to 108% from 102%, signaling that existing customers are deepening platform usage. Free cash flow reached $263.49 million at a 21% margin. Looking ahead, management raised its full-year organic revenue growth target to 9%-10% and lifted its free cash flow guidance to $875-$900 million, while guiding Q3 revenue of $1.25-$1.25 billion.
Key Takeaways
- • 13% Y/Y revenue growth, accelerating from prior quarters
- • Communications segment revenue growth of 14% Y/Y
- • Dollar-Based Net Expansion Rate improved to 108% from 102% Y/Y
- • Active Customer Accounts grew to over 349,000 from 316,000 Y/Y
- • Non-GAAP operating margin expanded to 18.0% from 16.2% Y/Y
- • Free cash flow margin expanded to 21% from 18% Y/Y
TWLO YoY Financials
Q2 2025 vs Q2 2024, source: SEC Filings
TWLO Revenue by Segment
With YoY comparisons, source: SEC Filings
“The company's focus and execution is paying off as Q2 marked another quarter of accelerated year-over-year revenue growth as well as record non-GAAP income from operations and free cash flow.”
— Khozema Shipchandler, Q2 2025 Earnings Press Release
TWLO Earnings Trends
TWLO vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
TWLO EPS Trend
Earnings per share: estimate vs actual
TWLO Revenue Trend
Quarterly revenue: estimate vs actual
TWLO Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $1.27 | $1.50 | +17.82% | $1.41B | +4.54% |
| Q4 25 BEAT FY | $1.23 | $1.33 | +8.15% | $1.37B | +3.72% |
| FY Full Year | $4.79 | $4.89 | +2.04% | $5.07B | +0.97% |
| Q3 25 BEAT | $1.07 | $1.25 | +17.00% | $1.30B | +3.83% |
| Q2 25 BEAT | $1.05 | $1.19 | +13.26% | $1.23B | +3.54% |
| Q1 25 BEAT | $0.96 | $1.14 | +18.59% | $1.17B | +2.98% |
| Q4 24 MISS FY | $1.03 | $1.00 | -3.21% | $1.19B | +1.07% |
| FY Full Year | $3.69 | $3.67 | -0.51% | $4.46B | +0.33% |