Twilio 2025 Q2 Earnings Strong Performance as Net Income Surges 170%

Twilio(TWLO) reported its fiscal 2025 Q2 earnings on Aug 07th, 2025. The results beat expectations with a sharp turnaround in profitability and raised full-year revenue and free cash flow guidance. The company returned to positive earnings and delivered a significant increase in net income, signaling strong operational and financial improvement.

Revenue
Twilio's total revenue rose 13.5% year-over-year to $1.23 billion in Q2 2025, driven by growth across its core segments. Twilio Communications was the largest contributor with $1.15 billion in revenue, while Twilio Segment added $75.47 million, together forming the consolidated total of $1.23 billion.

Earnings/Net Income
Twilio turned a net loss of $31.86 million in Q2 2024 into a net profit of $22.42 million in Q2 2025, marking a remarkable 170.4% positive swing. On a per-share basis, the company posted EPS of $0.15, compared to a loss of $0.19 per share a year earlier, representing a 178.9% increase. This marked a new record high for fiscal Q2 net income, the highest in 11 years.

Price Action
Twilio's stock has experienced mixed post-earnings performance. The stock price dropped 6.81% during the latest trading day and 5.12% during the most recent full trading week. However, it edged up slightly by 0.22% month-to-date.

Post-Earnings Price Action Review
The strategy of buying Twilio shares following a revenue increase quarter-over-quarter on the earnings release date and holding for 30 days has historically delivered strong returns. Over the past three years, this approach returned 104.77%, significantly outperforming the 50.66% benchmark. The strategy also demonstrated a compound annual growth rate (CAGR) of 27.64% and a maximum drawdown of 0.00%, highlighting its effectiveness and risk control.

CEO Commentary
Khozema Shipchandler, CEO of Twilio, highlighted the company’s strong Q2 2025 performance, noting accelerated year-over-year revenue growth and record non-GAAP income from operations and free cash flow. She emphasized Twilio’s strategic focus on combining communications, data, and AI to enhance customer experiences. Twilio showcased its latest innovations at the Signal user conference, reinforcing its role as the infrastructure layer for customer experience.

Guidance
Twilio raised its 2025 organic revenue target to 9%–10% year-over-year and set a reported revenue target of 10%–11%. The company reiterated its non-GAAP income from operations guidance of $850–$875 million and increased its free cash flow target to $875–$900 million. For Q3 2025, Twilio expects revenue of $1.245–$1.255 billion, with 10%–11% year-over-year revenue growth, 8%–9% organic growth, and non-GAAP diluted earnings per share of $1.01–$1.06.

Additional News
The Punch newspaper reported several key developments in Nigeria on August 7, 2025. In education, the West African Examinations Council (WAEC) faced a crisis after result errors were identified. Meanwhile, the Nigerian government and its partners continued to address pressing national issues, including security, infrastructure, and economic policy. Political tensions escalated with reports of heightened rivalries and internal party conflicts. In business, notable promotions and incentives were announced, including Stanbic IBTC’s savings promotion which awarded 148 customers N23 million in prizes.