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Twilio, a leading customer engagement platform, announced its financial results for the second quarter of 2025, showcasing significant growth and operational success. The company reported a 13% year-over-year revenue increase and record non-GAAP income, reinforcing its position as a key player in cloud communications and AI-driven customer experiences.
Twilio’s Q2 2025 revenue reached $1.23 billion, up 13% year-over-year.
Non-GAAP income from operations hit $221 million, a 26% increase year-over-year.
Communications revenue grew 14% to $1.15 billion, while Segment revenue remained flat at $75.5 million.
Active Customer Accounts rose to over 349,000, compared to 316,000 in Q2 2024.
Dollar-Based Net Expansion Rate improved to 108% from 102% in Q2 2024.
Free cash flow reached $263.5 million, up from $197.6 million in Q2 2024.
Twilio (NYSE: TWLO) reported a total revenue of $1.23 billion for the second quarter ended June 30, 2025, marking a 13% year-over-year increase on both reported and organic bases. The Communications segment, a core component of Twilio’s offerings, contributed $1.15 billion, reflecting a 14% year-over-year growth. Meanwhile, Segment revenue remained steady at $75.5 million. The company’s GAAP income from operations improved significantly to $37 million, a $56 million improvement from a $19 million loss in Q2 2024. Non-GAAP income from operations reached $220.5 million, up 26% from $175.3 million in the same period last year.
“The company’s focus and execution is paying off as Q2 marked another quarter of accelerated year-over-year revenue growth as well as record non-GAAP income from operations and free cash flow,” said Khozema Shipchandler, CEO of Twilio. At its annual Signal conference, Twilio unveiled new innovations, solidifying its role as a critical infrastructure layer for customer experience. By integrating communications, data, and AI, Twilio empowers leading brands to deliver real-time, personalized customer interactions. With over 349,000 Active Customer Accounts, up from 316,000 in Q2 2024, and a Dollar-Based Net Expansion Rate of 108%, Twilio continues to demonstrate strong market adoption and customer retention.
Twilio’s operational efficiency was further highlighted by its free cash flow of $263.5 million, a significant increase from $197.6 million in Q2 2024. The company also executed a share repurchase program, buying back $176.7 million in Class A common stock during the quarter, as part of a $2.0 billion authorization set to expire in December 2027. These efforts reflect Twilio’s commitment to enhancing shareholder value while maintaining robust financial health.
Looking ahead, Twilio raised its fiscal year 2025 organic revenue growth target to 9%-10% year-over-year, up from 7.5%-8.5%, and set a reported revenue growth target of 10%-11%. The company reiterated its non-GAAP income from operations target of $850-$875 million and increased its free cash flow target to $875-$900 million. These projections underscore Twilio’s confidence in its ability to sustain growth and profitability through its cloud-based, AI-driven customer engagement platform.
Twilio’s Q2 2025 results highlight its leadership in the customer engagement space, driven by strong financial performance and innovative solutions. With a focus on combining communications, data, and AI, Twilio continues to empower businesses to create meaningful customer experiences. Investors and stakeholders can access additional details via the company’s investor relations website.
Today’s leading companies trust Twilio’s Customer Engagement Platform (CEP) to build direct, personalized relationships with their customers everywhere in the world. Twilio enables companies to use communications and data to add intelligence and security to every step of the customer journey, from sales to marketing to growth, customer service and many more engagement use cases in a flexible, programmatic way. Across 180 countries and territories, millions of developers and hundreds of thousands of businesses use Twilio to create magical experiences for their customers.
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