Twilio Inc. Reports Strong Financial Performance for Fourth Quarter and Full Year 2025

Khozema Shipchandler, CEO of Twilio, expressed optimism regarding the company's trajectory, stating, “2025 was one of the most balanced and successful years of execution in Twilio’s history and has fundamentally transformed our financial profile and innovation velocity.” He emphasized the acceleration of revenue growth, expansion of operating margins, and significant free cash flow growth as key achievements. Shipchandler noted Twilio's emerging role as a foundational infrastructure layer in the age of artificial intelligence (AI), resonating well with its customer base.

Twilio reported a robust performance for the fourth quarter, with total revenue reaching $1.37 billion, a 14% increase year-over-year. Key financial figures included:

For the full year 2025, Twilio achieved remarkable results:

The company also reported net cash provided by operating activities of $1.0 billion and free cash flow of $945.4 million, both up from $716.2 million and $657.5 million in 2024.

Twilio's active customer accounts surged to over 402,000 as of December 31, 2025, compared to more than 325,000 the previous year. The Dollar-Based Net Expansion Rate was 109% for Q4 2025, indicating strong customer retention and growth compared to 106% in Q4 2024. For the full year, the rate was 108%, up from 104% in 2024.

The company also expanded its workforce significantly, employing 5,587 individuals by year-end 2025.

In January 2025, Twilio's Board of Directors authorized a $2.0 billion share repurchase program. During Q4 2025, the company repurchased $198.0 million in shares, completing $854.6 million in total repurchases for the year. As of December 31, 2025, approximately $1.1 billion remains available for future stock repurchases.

Looking ahead, Twilio provided guidance for the first quarter of 2026, estimating revenue between $1.335 billion and $1.345 billion, signaling a growth rate of 14% to 15% year-over-year. The company anticipates non-GAAP income from operations in the range of $240 to $250 million and non-GAAP diluted earnings per share between $1.21 and $1.26.

For the fiscal year 2026, Twilio is projecting reported revenue growth of 11.5% to 12.5% and organic revenue growth of 8% to 9%. The company expects non-GAAP income from operations to be between $1.04 billion and $1.06 billion, alongside a similar forecast for free cash flow.

Twilio's impressive financial results for 2025 underscore its strategic positioning and operational effectiveness in a competitive environment. As the company continues to innovate and expand its customer engagement platform, it remains well-positioned to capitalize on the growing demand for personalized customer experiences in the digital age.