Valuation Allowance Release Boosts Net Income
Twilio released a significant portion of its U.S. valuation allowance, resulting in a $944.1 million income tax benefit and a deferred tax asset recognition.
At the archive date, TWILIO INC was expected to release its Q3 2026 10-Q filing on October 28, 2026, after market close. Last quarter: 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.
EPS Estimate
$1.49
Revenue Estimate
$1.54B
Analyst consensus captured from Finnhub and Financial Modeling Prep. This archived preview is no longer updated with later results; see the TWLO page for retained reports.
Drawn from management commentary in the Q2 2026 10-Q:
Twilio released a significant portion of its U.S. valuation allowance, resulting in a $944.1 million income tax benefit and a deferred tax asset recognition.
The company recorded a $32.8 million impairment loss on prepaid network services after two service providers faced operational and financial challenges; this did not affect free cash flow.
Incremental A2P fees from major U.S. carriers increased both revenue and cost of revenue by $71.1 million each, creating a headwind to gross margin but no impact on gross profit.
Revenue
$1.5B
+22.03% YoY
EPS (Diluted)
$6.68
+4671.43% YoY
Gross Margin
48.4%
-0.6 pts YoY
Operating Income
$84.55M
+128.57% YoY
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