Executive Summary
Twilio delivered a solid QQ3 2025 performance, with revenue of $1.300 billion posting a robust year-over-year uplift of 14.7% and a quarter-over-quarter gain of 5.9%. Gross margin held at 48.6%, while operating income of $40.95 million produced an operating margin of 3.15% and net income of $37.25 million (net margin 2.86%), translating into earnings per share of $0.24 (diluted $0.23). The quarter marks a continuation of positive operating leverage following a difficult Q4 2024, underscoring improving top-line momentum against a backdrop of sustained investment in product development and platform expansion. Twilio also benefits from a conservative balance sheet with minimal leverage, evidenced by a debt ratio of ~1.1% and cash per share of $16.06, supporting ongoing cash generation (operating cash flow per share: $1.72; free cash flow per share: $1.72). The valuation remains elevated relative to many peers (P/S ~11.8x; P/E ~102.9x), implying that investors are pricing on continued revenue growth and platform expansion, not just near-term profitability.
Key Performance Indicators
QoQ: 10.29% | YoY:3 512.33%
QoQ: 66.12% | YoY:482.97%
QoQ: 60.00% | YoY:492.80%
Key Insights
Revenue: QQ3 2025 $1.300B, YoY +14.71%, QoQ +5.86%; Gross Profit: $632.08M, Gross Margin 48.61%; Operating Income: $40.95M, Operating Margin 3.15%; Net Income: $37.25M, Net Margin 2.86%; EPS (GAAP): $0.24, Diluted EPS: $0.23; Shares (avg dil.): 159.21M; EBITDA: $40.95M; Cash/Liquidity: Current ratio 4.68, Cash per share $16.06, Debt to capital ~1.29%, Debt ratio 1.06%; Cash Conversion Cycle: 37 days; Revenue mix and product mix commentary implied by margin stability; Valuation: P/S 11.79x, P/E 1...
Financial Highlights
Revenue: QQ3 2025 $1.300B, YoY +14.71%, QoQ +5.86%; Gross Profit: $632.08M, Gross Margin 48.61%; Operating Income: $40.95M, Operating Margin 3.15%; Net Income: $37.25M, Net Margin 2.86%; EPS (GAAP): $0.24, Diluted EPS: $0.23; Shares (avg dil.): 159.21M; EBITDA: $40.95M; Cash/Liquidity: Current ratio 4.68, Cash per share $16.06, Debt to capital ~1.29%, Debt ratio 1.06%; Cash Conversion Cycle: 37 days; Revenue mix and product mix commentary implied by margin stability; Valuation: P/S 11.79x, P/E 102.86x, Price-to-Book ~1.94x.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.30B |
14.71% |
5.86% |
| Gross Profit |
632.08M |
11.50% |
6.89% |
| Operating Income |
40.95M |
3 512.33% |
10.29% |
| Net Income |
37.25M |
482.97% |
66.12% |
| EPS |
0.24 |
492.80% |
60.00% |
Key Financial Ratios
operatingProfitMargin
3.15%
operatingCashFlowPerShare
$1.72
freeCashFlowPerShare
$1.72
priceEarningsRatio
102.86
Management Commentary
Transcript data not provided. No management quotes or themes are available from an earnings call in the provided material. If a transcript becomes available, quotes can be integrated by theme (strategy, operations, market conditions) with context and significance.
Transcript not available for QQ3 2025; no management quotes can be provided from the earnings call in the supplied data.
â
Transcript not available for QQ3 2025; no management quotes can be provided from the earnings call in the supplied data.
â
Forward Guidance
No explicit forward guidance was included in the provided data. Based on QQ3 2025 results, near-term indicators point to continued top-line growth and improving margin leverage as scale effects materialize. Key factors likely to influence the outlook include: (1) sustained growth in developer engagement and platform adoption across Core CPaaS, SendGrid-like capabilities, and emerging vertical applications; (2) operating expense discipline and the pace of R&D investment versus revenue growth; (3) macro sensitivity and enterprise IT budgets affecting cloud communications spend; (4) international expansion and currency exposure as Twilio monetizes globally. Given the current profitability cadence, investors should monitor whether operating margins can expand meaningfully from 3.15% toward higher- to mid-single digits as revenue grows and fixed cost leverage improves. The absence of formal guidance means the execution risk will hinge on product diversification, churn/retention, and the competitive environment in the cloud communications landscape.