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Jun 30
Twilio Q2 2025 Earnings Report
Twilio's Q2 2025 earnings report showed accelerated year-over-year revenue growth and record non-GAAP income from operations and free cash flow.
Key Takeaways
Twilio reported strong second-quarter results, with total revenue reaching $1.23 billion, marking a 13% year-over-year increase. The company achieved GAAP income from operations of $37 million and non-GAAP income from operations of $221 million, significantly improving profitability. Non-GAAP diluted EPS was $1.19, exceeding prior year's performance. Free cash flow also saw a substantial increase to $263.5 million.
Total revenue for Q2 2025 was $1.23 billion, representing a 13% year-over-year increase.
GAAP income from operations improved significantly to $37 million, compared to a loss in the prior year.
Non-GAAP income from operations reached a record $221 million, up 26% year-over-year.
Non-GAAP diluted EPS was $1.19, and free cash flow was $263.5 million, both showing strong growth.
Twilio
Twilio
Twilio Revenue by Segment
Revenue by Segment
Communications Revenue
CapyFin.comSegment Revenue
CapyFin.com Forward Guidance
Twilio is initiating strong guidance for Q3 2025 and raising its full-year 2025 organic revenue and free cash flow targets, while reiterating its non-GAAP income from operations target.
Positive Outlook
- Q3 2025 revenue guidance of $1.245 billion to $1.255 billion.
- Q3 2025 year-over-year revenue growth guidance of 10% to 11%.
- Q3 2025 non-GAAP diluted EPS guidance of $1.01 to $1.06.
- Fiscal year 2025 organic revenue target raised to 9% - 10% year-over-year (previously 7.5% - 8.5%).
- Fiscal year 2025 free cash flow target raised to $875 million - $900 million (previously $850 million - $875 million).
Challenges Ahead
- No specific negative forward guidance points were highlighted in the provided text.
- Uncertainty regarding reconciling items for non-GAAP forward-looking measures.
- Potential variability of foreign exchange rates impacting non-GAAP diluted EPS.
- Material changes to reconciling items could significantly affect future GAAP results.
- The forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially.
Revenue & Expenses
Visualization of income flow from segment revenue to net income