Companies /Technology

Twilio Inc Class A

NYSE: TWLO Software - Infrastructure
$241.34
â–² $12.88 (+5.64%) today
Markets closed · 4:30am ET

Q2 2025 Earnings

Reported Aug 7, 2025, 4:21pm ET · SEC source
$1.19
Beat +13.26%
EPS · est. $1.05
$1.2B
Beat +3.54%
Revenue · est. $1.2B
+3.3%
Beating market
TWLO vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−21%−14%−7%0Aug 7Aug 8report 4:21pm ETearnings+0.9%−18.5%
−21%−14%−7%0Aug 7Aug 8earnings+0.9%−18.5%
TWLO −18.5%S&P 500 +0.9%
−21%−14%−7%0Aug 7Aug 8report 4:21pm ETearnings+1.1%−18.6%
−21%−14%−7%0Aug 7Aug 8earnings+1.1%−18.6%
TWLO −18.6%NASDAQ +1.1%
0+20%Aug 6Aug 15report 4:21pm ETearnings+1.6%+1.6%
0+20%Aug 6Aug 15earnings+1.6%+1.6%
TWLO +1.6%S&P 500 +1.6%
0+20%Aug 6Aug 15report 4:21pm ETearnings+1.3%+1.6%
0+20%Aug 6Aug 15earnings+1.3%+1.6%
TWLO +1.6%NASDAQ +1.3%
−19.38%
Day of report
−6.31%
Next session
+7.09%
One week
+5.66%
30 days

S&P 500 over the same 30 days: +2.36%.

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 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

“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.”

Twilio CEO, on the earnings call

Forward Guidance & Outlook

For Q3 2025, Twilio guides revenue of $1,245-$1,255 million (10%-11% Y/Y growth, 8%-9% organic), non-GAAP income from operations of $205-$215 million, and non-GAAP diluted EPS of $1.01-$1.06. For full-year 2025, the company raised its organic revenue growth target to 9%-10% (from 7.5%-8.5%), initiated a reported revenue growth target of 10%-11%, reiterated non-GAAP income from operations of $850-$875 million, and raised its free cash flow target to $875-$900 million (from $850-$875 million).

TWLO YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$400.0M$800.0M$1.2B$1.1B$1.2BRevenue$543.4M$602.7MGross Profit$9.5M$37.0MOperating Income$8.3M$22.4MNet Income
$0$400.0M$800.0M$1.2BRevenueGross ProfitOperating IncomeNet Income

TWLO Revenue by Segment

Communications$1.2B+14.0%

Figures from SEC filings and company reports. Not investment advice.