Companies /Technology

Twilio Inc Class A

NYSE: TWLO Software - Infrastructure
$241.34
â–² $12.88 (+5.64%) today
Markets closed · 7:07am ET

Q3 2025 Earnings

Reported Oct 30, 2025, 4:09pm ET · SEC source
$1.25
Beat +17.00%
EPS · est. $1.07
$1.3B
Beat +3.83%
Revenue · est. $1.3B
−5.3%
Trailing market
TWLO vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−7%0+7%+14%Oct 30Oct 31report 4:09pm ETearnings+0.0%+11.3%
−7%0+7%+14%Oct 30Oct 31earnings+0.0%+11.3%
TWLO +11.3%S&P 500 +0.0%
−7%0+7%+14%Oct 30Oct 31report 4:09pm ETearnings+0.1%+11.3%
−7%0+7%+14%Oct 30Oct 31earnings+0.1%+11.3%
TWLO +11.3%NASDAQ +0.1%
−12%−6%0+6%Oct 29Nov 7report 4:09pm ETearnings−1.8%+3.0%
−12%−6%0+6%Oct 29Nov 7earnings−1.8%+3.0%
TWLO +3.0%S&P 500 −1.8%
−12%−6%0+6%Oct 29Nov 7report 4:09pm ETearnings−3.4%+3.0%
−12%−6%0+6%Oct 29Nov 7earnings−3.4%+3.0%
TWLO +3.0%NASDAQ −3.4%
+19.51%
Day of report
+0.90%
Next session
−5.34%
One week
−5.01%
30 days

S&P 500 over the same 30 days: +0.27%.

Did TWLO Beat Earnings? Q3 2025 Results

Twilio posted a standout third quarter for fiscal 2025, beating Wall Street expectations on both the top and bottom lines as broad-based customer growth and expanding profitability defined the period. Non-GAAP diluted EPS of $1.25 cleared the $1.07 consensus estimate by 17.00%, while revenue of $1.30 billion grew 14.7% year-over-year and came in 3.83% ahead of the $1.25 billion estimate. The headline driver was strength across customer segments, including startups, enterprises, and ISVs, which helped lift the Dollar-Based Net Expansion Rate to 109% from 105% a year ago and push Active Customer Accounts past 392,000. The company also swung to GAAP profitability, posting net income of $37.25 million compared to a net loss of $9.73 million in the year-ago quarter, while free cash flow grew to $247.52 million. Confidence in the momentum prompted management to raise full-year 2025 guidance, now calling for reported revenue growth of 12.4% to 12.6% and non-GAAP income from operations of $900 million to $910 million, with Morgan Stanley maintaining a Buy rating following the results.

Key Takeaways
  • Broad-based strength across customer segments including startups, enterprises, and ISVs
  • Dollar-Based Net Expansion Rate improved to 109% from 105% year-over-year
  • Active Customer Accounts grew to over 392,000 from over 320,000 year-over-year
  • Organic revenue growth of 13% year-over-year
  • Non-GAAP operating margin expansion to 18.0% from 16.1%

“Twilio saw another record quarter of revenue and non-GAAP income from operations and as a result, we've raised our revenue, profitability and free cash flow targets for the full year.”

Twilio CEO, on the earnings call

Forward Guidance & Outlook

Twilio raised its full-year 2025 guidance across all key metrics. Reported revenue growth is now expected at 12.4%-12.6% (up from 10%-11%), with organic revenue growth of 11.3%-11.5% (up from 9%-10%). Non-GAAP income from operations is expected at $900-$910 million (up from $850-$875 million), and free cash flow at $920-$930 million (up from $875-$900 million). For Q4 2025, the company guided revenue of $1,310-$1,320 million (9.5%-10.5% Y/Y growth), organic revenue growth of 8%-9%, non-GAAP income from operations of $230-$240 million, and non-GAAP diluted EPS of $1.17-$1.22.

TWLO YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$400.0M$800.0M$1.2B$1.1B$1.3BRevenue$566.9M$632.1MGross Profit$1.1M$40.9MOperating Income$6.4M$37.2MNet Income
$0$400.0M$800.0M$1.2BRevenueGross ProfitOperating IncomeNet Income

TWLO Revenue by Segment

Communications

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