Twilio Inc (0LHL.L) Q2 2025 Earnings Report

Twilio reported a solid Q2 2025, delivering revenue of $1.228 billion, up 13.5% year-over-year and 4.8% quarter-over-quarter. The gross margin stood at 48.1% (gross profit of $591.3 million), supported by a disciplined operating expense cadence that yielded an operating income of $37.1 million and an operating margin of 3.02%. Net income reached $22.4 million, with basic and diluted EPS of $0.15 and $0.14 respectively, marking meaningful year-over-year improvement after a prior period of muted profitability. Net income and margin strength contributed to a robust free cash flow of $263.5 million, with operating cash flow of $277.1 million and substantial cash generation sustaining a strong liquidity position.

Twilio’s liquidity is reinforced by a cash and short-term investments balance of approximately $2.54 billion, and cash on hand of about $969.2 million. Net debt remained modest at roughly $133 million, reflecting effective balance sheet management while the company continued to invest in product development and strategic initiatives. Cash utilization included notable share repurchases (~$197 million) and modest common stock issuance (~$23 million), indicating an active capital allocation strategy balanced between growth investment and shareholder value.

From a market perspective, Twilio remains positioned to monetize its multi-product platform (Voice, Messaging, Video, Email) through ongoing platform expansion and cross-sell opportunities. Although the quarterly results show improving profitability and strong FCF generation, the stock trades at elevated valuation multiples relative to near-term earnings, underscoring the importance of sustained top-line growth and efficiency gains to sustain investor confidence over the intermediate term.