Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Twilio delivered its first full-year GAAP operating profit in FY2025, with revenue growing 13.7% to $5.07B and operating cash flow surging 40.1% to $1.00B, marking a significant inflection toward profitability.
Revenue
$5.07B
+13.66% YoY
EPS (Diluted)
$0.21
+131.82% YoY
Gross Margin
48.9%
-2.2 pts YoY
Operating Income
$157.8M
+393.81% YoY
Source: SEC XBRL
Twilio (TWLO) reported FY2025 revenue of $5.07B, up 13.7% year over year. Operating margin was 3.1%, against -1.2% a year earlier. Operating cash flow was $1B, up 40.1% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.47 | 1.34 | Beat +9.3% |
| Mar 2026 | 1.50 | 1.30 | Beat +15.5% |
| Dec 2025This filing | 1.33 | 1.26 | Beat +5.5% |
| Sep 2025 | 1.25 | 1.11 | Beat +13.1% |
Reported EPS of $1.33 versus the $1.26 analyst consensus — a +5.5% beat for Dec 2025.
Compiled by AI from this SEC filing
Twilio's total revenue grew 13.7% year-over-year to $5.07B in FY2025, up from $4.46B in the prior year, reflecting continued expansion of its communications platform and customer engagement solutions across its customer base.
Source: 10-K Income Statement, Financial Data
Operating income turned positive at $157.8M in FY2025 versus a loss of $53.7M in FY2024, representing a 393.8% improvement and signaling that Twilio's cost discipline and scale are beginning to translate into sustainable operating leverage.
Source: 10-K Income Statement, Financial Data
Gross margin declined 219 basis points year-over-year to 48.9% from 51.1%, as cost of revenue grew faster (18.7%) than revenue (13.7%), suggesting increased infrastructure or traffic costs that partially offset top-line gains.
Source: 10-K Income Statement, Financial Data
Operating cash flow increased 40.1% to $1.00B in FY2025 from $716.2M in FY2024, demonstrating that the business is generating substantial cash despite modest GAAP net income of $33.8M, with D&A of $195.4M bridging the gap.
Source: 10-K Cash Flow Statement, Financial Data
Share buybacks declined sharply to $868.9M from $2.33B in FY2024, while cash and equivalents rose 62.0% to $682.3M, indicating a more measured approach to capital allocation and improved liquidity heading into FY2026.
Source: 10-K Cash Flow Statement & Balance Sheet, Financial Data
Compiled by AI from this SEC filing · 2 high, 2 medium, 1 low
Cost of revenue grew 18.7% in FY2025, outpacing revenue growth of 13.7%, compressing gross margin by approximately 219 basis points to 48.9%. If this trend continues, Twilio's path to meaningful GAAP net profitability could be delayed, as higher infrastructure and carrier costs eat into gross profit.
Source: 10-K Income Statement, Financial Data
Despite $5.07B in revenue, Twilio's GAAP net income was only $33.8M (net margin of 0.67%), leaving very little buffer against any revenue shortfall or cost increase. The company's profitability remains fragile and highly sensitive to operating expense fluctuations.
Source: 10-K Income Statement, Financial Data
R&D expense remained elevated at $1.02B in FY2025, representing approximately 20% of revenue, reflecting the competitive intensity of the cloud communications and customer engagement platform market. Failure to convert this investment into differentiated products could impair long-term competitiveness.
Source: 10-K Income Statement, Financial Data
Twilio carries $992.3M in long-term debt, which, while stable year-over-year, represents a meaningful fixed obligation. In a rising interest rate environment or revenue slowdown, debt servicing could pressure free cash flow and financial flexibility.
Source: 10-K Balance Sheet, Financial Data
Total assets fell 1.0% to $9.77B and stockholders' equity declined 1.7% to $7.82B in FY2025, partly reflecting the impact of share buybacks and goodwill/intangible amortization. Continued erosion of the equity base could affect the company's financial flexibility and leverage ratios over time.
Source: 10-K Balance Sheet, Financial Data
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 5.07 $B | 4.46 $B | +13.66% |
Cost of Revenue $B | 2.59 $B | 2.18 $B | +18.75% |
Gross Profit $B | 2.48 $B | 2.28 $B | +8.80% |
Operating Income $M | 157.80 $M | -53.71 $M | +393.81% |
Net Income $M | 33.83 $M | -109.00 $M | +131.04% |
EPS (Basic) $ | 0.22 $ | -0.66 $ | +133.33% |
EPS (Diluted) $ | 0.21 $ | -0.66 $ | +131.82% |
R&D Expense $B | 1.02 $B | 1.01 $B | +1.13% |
Answers draw on this SEC filing and the data on this page
Twilio's Q2 FY2026 results featured a $944.1 million tax benefit that propelled net income to $1.07 billion, while 22% revenue growth and a 116% dollar-based net expansion rate underlined strong operational momentum.
Twilio delivered strong Q1 FY2026 results with revenue surging 20.0% YoY to $1.41B and operating income jumping 366.5% to $107.7M, reflecting significant operating leverage improvements even as gross margin edged slightly lower.