Twilio Inc ( (TWLO) ) has released its Q3 earnings. Here is a breakdown of the information Twilio Inc presented to its investors.
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Twilio Inc. is a customer engagement platform that enables companies to build direct, personalized relationships with their customers through communications and data, serving a wide range of industries globally.
In its third-quarter 2025 earnings report, Twilio Inc. reported a record revenue of $1.3 billion, marking a 15% increase year-over-year, and a significant improvement in both GAAP and non-GAAP income from operations. The company has raised its revenue, profitability, and free cash flow targets for the full year, reflecting strong performance across various customer segments.
Key financial highlights include a GAAP income from operations of $41 million, a notable turnaround from a loss in the previous year, and a non-GAAP income from operations of $235 million, up 29% from the prior year. The company also reported a net cash flow from operating activities of $264 million and a free cash flow of $248 million. Additionally, Twilio’s active customer accounts grew to over 392,000, with a dollar-based net expansion rate of 109%.
Strategically, Twilio announced the acquisition of Stytch, Inc., an identity platform for AI agents, which is expected to enhance Twilio’s platform capabilities. The company also continued its share repurchase program, buying back $349.8 million in shares during the quarter.
Looking ahead, Twilio has raised its guidance for the fiscal year 2025, expecting revenue growth between 12.4% and 12.6% and non-GAAP income from operations between $900 million and $910 million. The company remains focused on driving growth and profitability while expanding its platform capabilities through strategic acquisitions.