Twilio Inc 10-Q for FY2025 Q2

Twilio Inc (TWLO)

10-Q 2025-08-08 For: 2025-06-30

Added on April 09, 2026

About this 10-Q

Twilio Inc filed this 10-Q on August 8, 2025, covering the quarter ended June 30, 2025 (FY2025 Q2).

Headline figures

Quarter ended June 30, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.23B; up 13.5% from $1.08B a year earlier
Net income: $22.42M; compared with a net loss of $31.86M a year earlier
Diluted EPS: $0.14; compared with -$0.19 a year earlier

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Delaware						26-2574840
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, par value $0.001 per share	TWLO	New York Stock Exchange


		Page
	PART I - FINANCIAL INFORMATION

Item 1.	Financial Statements (unaudited)	3

	Condensed Consolidated Balance Sheets as of June 30 , 2025 and December 31, 2024	3

	Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30 , 2025 and 2024	4

	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30 , 2025 and 2024	5

	Condensed Consolidated Statements of Stockholders’ Equity for the Three and Six Months Ended June 3 0 , 2025 and 2024	6

	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30 , 2025 and 2024	10

	Notes to Condensed Consolidated Financial Statements	11

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	42

Item 4.	Controls and Procedures	43

	PART II - OTHER INFORMATION

Item 1.	Legal Proceedings	43

Item 1A.	Risk Factors	43

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	76

Item 5.	Other Information	76

Item 6.	Exhibits	77

	Signatures	77


	As of June 30,		As of December 31,
	2025		2024
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	969,229	$	421,297

Short-term marketable securities	1,573,371		1,963,102
Accounts receivable, net	587,966		588,540


Prepaid expenses and other current assets	401,071		474,360

Total current assets	3,531,637		3,447,299
Property and equipment, net	177,957		191,042
Operating right-of-use assets	53,174		53,405
Equity method investment	439,011		485,835
Intangible assets, net	184,260		238,503
Goodwill	5,243,266		5,243,266
Other long-term assets	218,987		206,122

Total assets	$	9,848,292	$	9,865,472
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	76,181	$	100,169
Accrued expenses and other current liabilities	461,527		530,686
Deferred revenue and customer deposits	148,009		155,680
Operating lease liability, current	34,342		33,685




Total current liabilities	720,059		820,220
Operating lease liability, noncurrent	76,819		85,875

Long-term debt, net	991,429		990,587
Other long-term liabilities	16,063		15,824

Total liabilities	1,804,370		1,912,506
Commitments and contingencies (Note 11)
Stockholders’ equity:
Preferred stock	—		—
Class A common stock	154		153
Additional paid-in capital	15,805,141		15,476,124
Accumulated other comprehensive income (loss)	24,716		(1,301)
Accumulated deficit	(7,786,089)		(7,522,010)
Total stockholders’ equity	8,043,922		7,952,966
Total liabilities and stockholders’ equity	$	9,848,292	$	9,865,472


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2025		2024		2025		2024
	(In thousands, except share and per share amounts)
Revenue	$	1,228,425	$	1,082,502	$	2,400,888	$	2,129,552
Cost of revenue	625,685		526,657		1,216,581		1,029,666
Gross profit	602,740		555,845		1,184,307		1,099,886
Operating expenses:
Research and development	243,495		242,785		497,790		503,242
Sales and marketing	220,724		217,825		432,837		432,328
General and administrative	101,532		114,272		193,609		226,857


Total operating expenses	565,751		574,882		1,124,236		1,162,427
Income (loss) from operations	36,989		(19,037)		60,071		(62,541)
Other (expenses) income, net:
Share of losses from equity method investment	(25,222)		(23,940)		(44,693)		(53,515)

Other income, net	21,825		16,734		44,798		44,652
Total other (expenses) income, net	(3,397)		(7,206)		105		(8,863)
Income (loss) before provision for income taxes	33,592		(26,243)		60,176		(71,404)
Provision for income taxes	(11,169)		(5,615)		(17,736)		(15,803)
Net income (loss) attributable to common stockholders	$	22,423	$	(31,858)	$	42,440	$	(87,207)
Net income (loss) per share attributable to common stockholders:
Basic	$	0.15	$	(0.19)	$	0.28	$	(0.50)
Diluted	$	0.14	$	(0.19)	$	0.26	$	(0.50)
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders:
Basic	153,228,766		170,222,104		153,273,594		175,613,672
Diluted	159,691,758		170,222,104		160,729,638		175,613,672


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Common Stock Class A			Additional Paid-In Capital	Accumulated Other Comprehensive Income		Accumulated Deficit		Total Stockholders' Equity
	Shares	Amount
	(In thousands, except share amounts)
Balance as of March 31, 2025	153,254,342	$	153		$	15,625,545	$	10,358	$	(7,631,765)	$	8,004,291
Net income	—	—			—		—		22,423		22,423
Exercises of vested stock options	225,709	—			2,384		—		—		2,384
Vesting of restricted stock units	1,631,186	2			(2)		—		—		—
Value of equity awards withheld for tax liability	(661)	—			(85)		—		—		(85)
Shares issued under ESPP	253,298	—			20,757		—		—		20,757
Shares of Class A common stock issued and donated to charity	22,102	—			2,237		—		—		2,237


Unrealized loss on marketable securities	—	—			—		(1,116)		—		(1,116)
Repurchases of shares of Class A common stock including related costs	(1,809,818)	(1)			—		—		(176,747)		(176,748)

Net change in market value of effective foreign currency forward exchange contracts	—	—			—		15,821		—		15,821
Share of other comprehensive loss from equity method investment	—	—			—		(347)		—		(347)
Stock-based compensation	—	—			154,305		—		—		154,305

Balance as of June 30, 2025	153,576,158	$	154		$	15,805,141	$	24,716	$	(7,786,089)	$	8,043,922


	Common Stock Class A			Additional Paid-In Capital	Accumulated Other Comprehensive (Loss) Income		Accumulated Deficit		Total Stockholders' Equity
	Shares	Amount
	(In thousands, except share amounts)
Balance as of December 31, 2024	152,610,697	$	153		$	15,476,124	$	(1,301)	$	(7,522,010)	$	7,952,966
Net income	—	—			—		—		42,440		42,440
Exercises of vested stock options	357,224	—			5,150		—		—		5,150
Vesting of restricted stock units	3,343,830	4			(4)		—		—		—
Value of equity awards withheld for tax liability	(1,084)	—			(138)		—		—		(138)
Shares issued under ESPP	253,298	—			20,757		—		—		20,757
Shares of Class A common stock issued and donated to charity	44,204	—			5,013		—		—		5,013


Unrealized gain on marketable securities	—	—			—		3,942		—		3,942
Repurchases of shares of Class A common stock including related costs	(3,032,011)	(3)			—		—		(306,519)		(306,522)

Net change in market value of effective foreign currency forward exchange contracts	—	—			—		24,207		—		24,207
Share of other comprehensive loss from equity method investment	—	—			—		(2,132)		—		(2,132)
Stock-based compensation	—	—			298,239		—		—		298,239

Balance as of June 30, 2025	153,576,158	$	154		$	15,805,141	$	24,716	$	(7,786,089)	$	8,043,922


	Common Stock Class A			Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total Stockholders' Equity
	Shares	Amount
	(In thousands, except share amounts)
Balance as of March 31, 2024	177,471,887	$	177	$	14,960,837	$	(4,941)	$	(5,508,343)	$	9,447,730
Net loss	—	—		—		—		(31,858)		(31,858)
Exercises of vested stock options	27,598	—		678		—		—		678
Vesting of restricted stock units	1,464,534	1		(1)		—		—		—
Value of equity awards withheld for tax liability	(780)	—		(45)		—		—		(45)

Shares issued under ESPP	394,479	—		20,601		—		—		20,601
Shares of Class A common stock issued and donated to charity	22,102	—		1,315		—		—		1,315


Unrealized loss on marketable securities	—	—		—		(1,821)		—		(1,821)
Repurchases of shares of Class A common stock including related costs	(15,229,731)	(14)		—		—		(906,605)		(906,619)

Net change in market value of effective foreign currency forward exchange contracts	—	—		—		(823)		—		(823)
Share of other comprehensive loss from equity method investment	—	—		—		(3,086)		—		(3,086)
Stock-based compensation	—	—		153,401		—		—		153,401

Balance as of June 30, 2024	164,150,089	$	164	$	15,136,786	$	(10,671)	$	(6,446,806)	$	8,679,473


	Amortized Cost or Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses Less Than 12 Months		Gross Unrealized Losses More Than 12 Months		Fair Value Hierarchy as of June 30, 2025						Aggregate Fair Value
									Level 1		Level 2		Level 3
Financial Assets:	(In thousands)
Cash and cash equivalents:
Money market funds	$	715,048	$	—	$	—	$	—	$	715,048	$	—	$	—	$	715,048

Commercial paper	12,305		—		—		—		—		12,305		—		12,305
U.S. Treasury bills	22,748		—		—		—		22,748		—		—		22,748
Total included in cash and cash equivalents	750,101		—		—		—		737,796		12,305		—		750,101
Marketable securities:
Debt securities:
U.S. Treasury securities	285,864		1,066		—		—		286,930		—		—		286,930

Corporate debt securities and commercial paper	1,275,992		8,253		(180)		(14)		—		1,284,051		—		1,284,051
Total debt securities	1,561,856		9,319		(180)		(14)		286,930		1,284,051		—		1,570,981
Equity securities	2,390		—		—		—		2,390		—		—		2,390
Total marketable securities	1,564,246		9,319		(180)		(14)		289,320		1,284,051		—		1,573,371
Total financial assets	$	2,314,347	$	9,319	$	(180)	$	(14)	$	1,027,116	$	1,296,356	$	—	$	2,323,472


	Three Months Ended June 30, 2025
	Communications		Segment		Total
	(In thousands)
Revenue	$	1,152,955	$	75,470	$	1,228,425
Cost of revenue attributable to segments	586,146		19,377		605,523
Operating expenses attributable to segments	286,196		50,084		336,280
Segment non-GAAP income from operations	$	280,613	$	6,009	$	286,622

Reconciliation of total segment non-GAAP income from operations to income from operations:
Total segment non-GAAP income from operations					$	286,622
Corporate costs not allocated to segments					(66,079)
Stock-based compensation					(149,251)
Amortization of acquired intangibles					(27,005)


Payroll taxes related to stock-based compensation					(4,921)
Charitable contributions					(2,237)
Restructuring costs					(140)

Income from operations					36,989
Other expenses, net					(3,397)
Income before provision for income taxes					$	33,592


	Three Months Ended June 30, 2024
	Communications		Segment		Total
	(In thousands)
Revenue	$	1,007,302	$	75,200	$	1,082,502
Cost of revenue attributable to segments	485,155		20,034		505,189
Operating expenses attributable to segments	272,217		70,981		343,198
Segment non-GAAP income (loss) from operations	$	249,930	$	(15,815)	$	234,115

Reconciliation of total segment non-GAAP income from operations to loss from operations:
Total segment non-GAAP income from operations					$	234,115
Corporate costs not allocated to segments					(58,796)
Stock-based compensation					(147,657)
Amortization of acquired intangibles					(28,184)


Payroll taxes related to stock-based compensation					(3,510)
Charitable contributions					(15,315)
Restructuring costs					310

Loss from operations					(19,037)
Other expenses, net					(7,206)
Loss before provision for income taxes					$	(26,243)


	Six Months Ended June 30, 2025
	Communications		Segment		Total
	(In thousands)
Revenue	$	2,249,762	$	151,126	$	2,400,888
Cost of revenue attributable to segments	1,136,925		39,059		1,175,984
Operating expenses attributable to segments	554,760		107,576		662,336
Segment non-GAAP income from operations	$	558,077	$	4,491	$	562,568

Reconciliation of total segment non-GAAP income from operations to income from operations:
Total segment non-GAAP income from operations					$	562,568
Corporate costs not allocated to segments					(128,617)
Stock-based compensation					(286,771)
Amortization of acquired intangibles					(54,144)


Payroll taxes related to stock-based compensation					(16,121)
Charitable contributions					(5,013)
Restructuring costs					(11,831)

Income from operations					60,071
Other income, net					105
Income before provision for income taxes					$	60,176


	Six Months Ended June 30, 2024
	Communications		Segment		Total
	(In thousands)
Revenue	$	1,979,308	$	150,244	$	2,129,552
Cost of revenue attributable to segments	949,455		36,825		986,280
Operating expenses attributable to segments	530,913		150,228		681,141
Segment non-GAAP income (loss) from operations	$	498,940	$	(36,809)	$	462,131

Reconciliation of total segment non-GAAP income from operations to income from operations:
Total segment non-GAAP income from operations					$	462,131
Corporate costs not allocated to segments					(127,202)
Stock-based compensation					(303,815)
Amortization of acquired intangibles					(57,123)


Payroll taxes related to stock-based compensation					(10,286)
Charitable contributions					(16,610)
Restructuring costs					(9,636)

Loss from operations					(62,541)
Other expenses, net					(8,863)
Loss before provision for income taxes					$	(71,404)


	Six Months Ended
	June 30,
	2025		2024
CASH FLOWS FROM OPERATING ACTIVITIES:	(In thousands)
Net income (loss)	$	42,440	$	(87,207)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	99,403		105,383
Non-cash reduction to the right-of-use asset	10,516		10,064
Net amortization of investment premium and discount	(8,182)		(12,572)

Stock-based compensation	288,524		306,263
Amortization of deferred commissions	38,387		37,788

Provision for doubtful accounts	3,686		14,365

Share of losses from equity method investment	44,693		53,515


Other adjustments	8,500		8,591
Changes in operating assets and liabilities:
Accounts receivable	(3,112)		11,094
Prepaid expenses and other current assets	84,662		19,752
Other long-term assets	(51,420)		2,396
Accounts payable	(24,323)		(59,027)
Accrued expenses and other current liabilities	(40,086)		23,655
Deferred revenue and customer deposits	(7,671)		(5,755)
Operating lease liabilities	(18,693)		(24,177)
Other long-term liabilities	802		(662)
Net cash provided by operating activities	468,126		403,466
CASH FLOWS FROM INVESTING ACTIVITIES:


Purchases of marketable securities and other investments	(408,836)		(589,995)
Proceeds from sales and maturities of marketable securities	818,034		1,592,970
Capitalized software development costs	(24,152)		(25,835)
Purchases of long-lived and intangible assets	(2,167)		(2,756)
Net cash provided by investing activities	382,879		974,384
CASH FLOWS FROM FINANCING ACTIVITIES:


	As of June 30,		As of December 31,
	2025		2024
	(In thousands)
Capitalized internal-use software developments costs	$	387,454	$	357,334
Data center equipment (1)	47,384		63,672
Leasehold improvements	61,980		78,104
Office equipment	46,856		50,659
Furniture and fixtures	10,370		12,618
Software	14,143		14,143
Total property and equipment	568,187		576,530
Less: accumulated depreciation and amortization (1)	(390,230)		(385,488)
Total property and equipment, net	$	177,957	$	191,042


	As of June 30, 2025
	Cost		Accumulated Amortization		Net
Amortizable intangible assets:	(In thousands)
Developed technology	$	388,341	$	(332,799)	$	55,542
Customer relationships	348,314		(237,851)		110,463
Supplier relationships	49,756		(39,903)		9,853
Trade names	25,968		(25,554)		414

Patent	3,968		(1,195)		2,773
Total amortizable intangible assets	816,347		(637,302)		179,045
Non-amortizable intangible assets:
Telecommunication licenses	4,920		—		4,920
Trademarks and other	295		—		295
Total	$	821,562	$	(637,302)	$	184,260


	As of December 31, 2024
	Cost		Accumulated Amortization		Net
Amortizable intangible assets:	(In thousands)
Developed technology	$	388,341	$	(306,063)	$	82,278
Customer relationships	348,314		(215,523)		132,791
Supplier relationships	49,756		(35,363)		14,393
Trade names	25,968		(25,014)		954

Patent	3,968		(1,096)		2,872
Total amortizable intangible assets	816,347		(583,059)		233,288
Non-amortizable intangible assets:
Telecommunication licenses	4,920		—		4,920
Trademarks and other	295		—		295
Total	$	821,562	$	(583,059)	$	238,503


	As of June 30, 2025
Year Ended December 31,	(In thousands)
2025 (remaining six months)	$	53,619
2026	42,149
2027	25,330
2028	19,055
2029	14,970
Thereafter	23,922
Total	$	179,045


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Revenue by geographic area:	(In thousands)
United States	$	786,974	$	706,451	$	1,536,414	$	1,392,978
International	441,451		376,051		864,474		736,574
Total	$	1,228,425	$	1,082,502	$	2,400,888	$	2,129,552


Percentage of revenue by geographic area:
United States	64	%	65	%	64	%	65	%
International	36	%	35	%	36	%	35	%



	Total Number of Shares Purchased(1)	Average Price Paid Per Share(2)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(1)	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs(1)
	(In thousands)			(In thousands)	(In millions)
April 1 - 30, 2025	1,089	$	87.99	1,089	$	1,774
May 1 - 31, 2025	469	$	108.66	469	$	1,723
June 1 - 30, 2025	252	$	118.96	252	$	1,693
	1,810			1,810


						TWILIO INC.

August 8, 2025						/s/ KHOZEMA Z. SHIPCHANDLER
						Khozema Z. Shipchandler Director and Chief Executive Officer (Principal Executive Officer)

August 8, 2025						/s/ AIDAN VIGGIANO
						Aidan Viggiano Chief Financial Officer (Principal Accounting and Financial Officer)


/s/ KHOZEMA Z. SHIPCHANDLER
Khozema Z. Shipchandler
Chief Executive Officer (Principal Executive Officer)


/s/ AIDAN VIGGIANO
Aidan Viggiano
Chief Financial Officer (Principal Accounting and Financial Officer)