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Dec 31, 2025
Twilio Q4 2025 Earnings Report
Twilio reported strong financial results for the fourth quarter and full year ended December 31, 2025, with significant growth in revenue and operating income.
Key Takeaways
Twilio delivered a balanced and successful year in 2025, accelerating revenue growth, expanding operating margins, and achieving significant free cash flow. The company's vision is resonating with customers, positioning Twilio as a foundational infrastructure layer in the age of AI.
Fourth quarter revenue increased by 14% year-over-year to $1.37 billion, with organic revenue growth of 12%.
GAAP income from operations for the fourth quarter was $56.8 million, a substantial increase from $13.7 million in the prior year.
Non-GAAP income from operations reached $255.6 million in Q4 2025, up from $197.0 million in Q4 2024.
The company generated $256.1 million in free cash flow during the fourth quarter, significantly higher than $93.5 million in the same period last year.
Forward Guidance
For the first quarter ended March 31, 2026, Twilio expects revenue between $1.335 billion and $1.345 billion, implying a reported revenue growth of 14% to 15% and organic revenue growth of 10% to 11% year-over-year. Non-GAAP income from operations is projected to be between $240 million and $250 million, with non-GAAP diluted earnings per share in the range of $1.21 to $1.26.
Positive Outlook
- Q1 2026 reported revenue growth expected to be strong, between 14% and 15% year-over-year.
- Q1 2026 organic revenue growth projected at 10% to 11% year-over-year.
- Q1 2026 non-GAAP income from operations expected to be robust, ranging from $240 million to $250 million.
- Q1 2026 non-GAAP diluted earnings per share anticipated between $1.21 and $1.26.
- Full-year 2026 reported revenue growth expected to be 11.5% to 12.5%, and organic revenue growth 8% to 9%.
Challenges Ahead
- Non-GAAP diluted earnings per share guidance assumes no impact from volatility of foreign exchange rates, which could introduce variability.
- The company did not provide GAAP equivalents for forward-looking non-GAAP measures due to uncertainty and potential variability of reconciling items.
Historical Earnings Impact
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