Twilio Q3 2025 earnings: revenue up 15%, guidance raised again
Twilio's revenue climbed 15% from a year ago as it added customers broadly, and the company raised its outlook for the rest of 2025 and into 2026.
| Q3 2025 | Reported |
|---|---|
| EPS | $0.23 |
| Revenue | $1.30B |
Figures as reported by the company to the SEC for the quarter ended September 30, 2025. Analyst estimates are not part of a filing, so no comparison to expectations is shown.
Key takeaways
- Revenue reached $1.3 billion for the quarter, up 15% from a year earlier — the company called it a record and said growth came from a broad mix of customers, from startups to large enterprises to software partners, rather than from any single source.
- Twilio’s active customer accounts grew to more than 392,000, up from over 320,000 a year ago, and its “dollar-based net expansion rate” — a measure of how much more existing customers are spending — rose to 109% from 105%, meaning current customers are spending noticeably more than they did a year ago.
- The verified fundamentals show a net profit margin of about 2% over the trailing twelve months, meaning only a small slice of each revenue dollar currently reaches the bottom line after all costs; but per-share earnings growth over the past year has been sharp, pointing to profitability improving faster than revenue itself.
- Management raised its full-year 2025 targets for revenue growth, profitability, and free cash flow, and also lifted its outlook for full-year 2026 revenue growth, citing continued execution and demand for its AI-powered customer-communications tools.
- CEO Khozema Shipchandler described the company as entering a “powerful new chapter,” pointing to accelerating growth, record profitability, and rising demand for Twilio’s AI-driven communications platform as reasons for the more optimistic outlook.
- Free cash flow — the cash left over after running and investing in the business — rose to about $248 million for the quarter, up from roughly $189 million a year earlier, indicating the company is generating meaningfully more spare cash than it did last year.
- The quarter also included continued investment in acquisitions such as Stytch, aimed at expanding Twilio’s identity and digital-trust capabilities alongside its core messaging and voice business.
Q3 2025 in context
| Metric | Sep 2025 | Sep 2024 | Change |
|---|---|---|---|
| Revenue | $1.3B | $1.1B | +14.7% |
| Net income | $37M | -$10M | +483.0% |
| Diluted EPS | $0.23 | -$0.06 | +483.3% |
| Gross margin | 48.6% | 51.0% | -2.4 pts |
| Operating margin | 3.1% | -0.4% | +3.6 pts |
| Net margin | 2.9% | -0.9% | +3.7 pts |
Figures for the quarter ended Sep 2025 and the quarter ended Sep 2024, as reported to the SEC.
How the stock took it
Twilio Inc closed at $112.86 on Oct 30, 2025, the last session before the report, and at $136.10 on Nov 3, 2025, the first session after it — +20.6% across the report.
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Sources: company report · earnings call