Twilio announced its second quarter 2025 financial results, reporting revenue of $1,228 million, a 13.5% increase year-over-year, surpassing market expectations. The company achieved GAAP income from operations of $22.4 million and a non-GAAP income from operations of $200 million.
Net cash provided by operating activities was $205 million, with free cash flow reaching $190 million. GAAP net income attributable to common stockholders was $22.4 million, or $0.14 per diluted share, while non-GAAP net income was $190 million, or $1.19 per diluted share, exceeding analyst consensus.
For the full year 2025, Twilio raised its organic revenue target to 8%-9% from the previous 7.5%-8.5%. It also increased both its non-GAAP income from operations and free cash flow targets to $875-$900 million, up from $850-$875 million previously.
However, the company's guidance for the third quarter ending September 30, 2025, projected non-GAAP income from operations between $180 million and $190 million, and non-GAAP diluted EPS between $0.90 and $0.95. This profit forecast was weaker than expected, overshadowing the strong Q2 performance and raised full-year outlook.
Despite the top-line strength and raised full-year guidance, the lower-than-anticipated Q3 profit outlook raised concerns among investors regarding continued profit margin headwinds. This mixed guidance led to a negative market reaction following the announcement.
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