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Sep 30, 2025
Twilio Q3 2025 Earnings Report
Twilio reported strong revenue and profitability growth in Q3 2025, achieving record non-GAAP income from operations.
Key Takeaways
Twilio delivered a robust quarter with $1.3B in revenue and a net income of $37M. The company exceeded expectations on profitability and raised full-year guidance, showing broad-based strength across customer segments.
Revenue reached $1.3B, growing 15% year-over-year.
Non-GAAP EPS rose to $1.25, with GAAP EPS at $0.23.
Free cash flow improved to $247.5M, with a 19% margin.
Active customer accounts surpassed 392,000.
Forward Guidance
Twilio raised its full-year guidance for revenue, profitability, and free cash flow, reflecting strong momentum and customer demand.
Positive Outlook
- Raised FY25 revenue growth target to 12.4%–12.6%
- Raised FY25 organic revenue growth to 11.3%–11.5%
- Increased FY25 non-GAAP operating income guidance to $900M–$910M
- Free cash flow guidance increased to $920M–$930M
- Continued customer growth across all segments
Challenges Ahead
- GAAP gross margin declined to 48.6% from 51.0% YoY
- Equity method investment losses impacted GAAP income
- Operating expenses remained high at over $591M
- R&D spending stayed flat despite revenue growth
- Share-based compensation continues to be a significant expense
Historical Earnings Impact
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Avg. Return Before/After Earnings
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