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Jun 30, 2025
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.
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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