Twilio Inc Class A

Twilio closed out fiscal 2025 on a strong note, posting Q4 revenue of $1.37 billion, up 14.3% year-over-year and ahead of the $1.32 billion consensus by 3.72%, while non-GAAP EPS of $1.33 beat the $1.23 estimate by 8.15%, reflecting the company's accelerating shift toward profitability. The standout driver was margin expansion across the board: non-GAAP operating income climbed to $255.57 million from $197.05 million a year ago, and free cash flow nearly tripled to $256.10 million, underscoring how Twilio's leaner cost structure is translating into cash generation. Customer momentum added to the picture, with active accounts growing to over 402,000 from 325,000, and the dollar-based net expansion rate improving to 109%. A Moody's credit rating upgrade following the results added an additional layer of market validation to the turnaround narrative. Looking ahead, Twilio guided Q1 2026 revenue to $1.33 to $1.34 billion and full-year 2026 non-GAAP operating income to $1.04 to $1.06 billion, framing the company as foundational infrastructure for the emerging AI agent economy.