Revenue growth has re-accelerated to 20.0% in 2026Q1, while operating margins have scaled to 7.7% as the company moves past the stagnant single-digit growth rates seen in 2024.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 |
|---|
| Sales/Revenue | 5.3B | 5.07B | 4.46B | 4.15B | 3.83B | 2.84B | 1.76B | 1.13B | 650.07M | 399.02M | 277.33M | 166.92M | 88.85M | 49.92M |
| Revenue Growth % | 15.67% | 13.66% | 7.32% | 8.56% | 34.64% | 61.31% | 55.3% | 74.52% | 62.92% | 43.88% | 66.15% | 87.87% | 77.98% | - |
| Cost of Goods Sold | 2.72B | 2.63B | 2.23B | 2.19B | 2.06B | 1.53B | 885.11M | 560.65M | 302.36M | 187.49M | 122.96M | 75.72M | 41.42M | 25.87M |
| COGS % of Revenue | - | 51.98% | 50% | 52.75% | 53.87% | 53.75% | 50.24% | 49.42% | 46.51% | 46.99% | 44.34% | 45.37% | 46.62% | 51.82% |
| Gross Profit | 2.59B | 2.43B | 2.23B | 1.96B | 1.76B | 1.31B | 876.67M | 573.82M | 347.71M | 211.53M | 154.37M | 91.19M | 47.42M | 24.05M |
| Gross Margin % | 48.77% | 48.02% | 50% | 47.25% | 46.13% | 46.25% | 49.76% | 50.58% | 53.49% | 53.01% | 55.66% | 54.63% | 53.38% | 48.18% |
| Gross Profit Growth % | - | 9.15% | 13.57% | 11.21% | 34.28% | 49.93% | 52.78% | 65.03% | 64.38% | 37.03% | 69.28% | 92.3% | 97.17% | - |
| Operating Expenses | 2.34B | 2.26B | 2.27B | 2.35B | 2.76B | 2.21B | 1.35B | 927.8M | 461.45M | 277.3M | 195.59M | 125.39M | 73.81M | 50.9M |
| OpEx % of Revenue | - | 44.57% | 50.91% | 56.56% | 72.09% | 77.94% | 76.5% | 81.78% | 70.98% | 69.5% | 70.52% | 75.12% | 83.07% | 101.97% |
| Selling, General & Admin | 1.3B | 1.28B | 1.26B | 1.41B | 1.68B | 1.43B | 817.26M | 543.79M | 282.99M | 159.15M | 116.13M | 84M | 51.98M | 36.94M |
| SG&A % of Revenue | - | 25.34% | 28.32% | 33.91% | 43.93% | 50.21% | 46.39% | 47.93% | 43.53% | 39.89% | 41.88% | 50.33% | 58.51% | 74% |
| Research & Development | 1.04B | 1.02B | 1.01B | 940.88M | 1.08B | 787.96M | 530.55M | 384.01M | 171.34M | 116.98M | 75.59M | 41.38M | 21.82M | 13.96M |
| R&D % of Revenue | - | 20.13% | 22.59% | 22.65% | 28.16% | 27.73% | 30.11% | 33.85% | 26.36% | 29.32% | 27.26% | 24.79% | 24.56% | 27.96% |
| Other Operating Expenses | 0 | -45.61M | 0 | 0 | 0 | 0 | 0 | 0 | 7.12M | 1.17M | 3.86M | 0 | 0 | 0 |
| Operating Income | 247.57M | 174.68M | -40.44M | -386.85M | -993.47M | -900.59M | -471.14M | -353.99M | -113.73M | -65.77M | -41.22M | -34.19M | -26.38M | -26.85M |
| Operating Margin % | 4.67% | 3.45% | -0.91% | -9.31% | -25.96% | -31.69% | -26.74% | -31.2% | -17.5% | -16.48% | -14.86% | -20.48% | -29.7% | -53.79% |
| Operating Income Growth % | - | 532% | 89.55% | 61.06% | -10.31% | -91.15% | -33.09% | -211.24% | -72.92% | -59.59% | -20.54% | -29.6% | 1.74% | - |
| EBITDA | 415.45M | 392.13M | 184.64M | -75.46M | -667.18M | -593.43M | -283.08M | -220.36M | -87.64M | -47.01M | -32.9M | -29.97M | -24.63M | -26.24M |
| EBITDA Margin % | 7.84% | 7.74% | 4.14% | -1.82% | -17.44% | -20.88% | -16.07% | -19.42% | -13.48% | -11.78% | -11.86% | -17.95% | -27.72% | -52.56% |
| EBITDA Growth % | 86.7% | 112.37% | 344.68% | 88.69% | -12.43% | -109.63% | -28.46% | -151.44% | -86.43% | -42.89% | -9.79% | -21.68% | 6.15% | - |
| D&A (Non-Cash Add-back) | 167.88M | 217.44M | 225.08M | 311.38M | 326.29M | 307.16M | 188.06M | 133.62M | 26.09M | 18.76M | 8.31M | 4.23M | 1.76M | 610K |
| EBIT | 28.51M | 55.09M | -88.61M | -996.73M | -1.24B | -960.93M | -479.45M | -337.14M | -106.25M | -63M | -41M | -35.38M | -26.75M | -26.85M |
| Net Interest Income | 34.2M | 0 | 90.2M | 77.7M | 64.6M | 55.7M | 7.42M | -4.27M | -11.9M | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 34.2M | 0 | 90.2M | 77.7M | 64.6M | 55.7M | 32.4M | 20.8M | 3M | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 24.98M | 25.07M | 14.9M | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -116.83M | -119.59M | -48.18M | -609.88M | -250.16M | -60.34M | -33.29M | -8.23M | -7.42M | 2.77M | 217K | -1.19M | -362K | -4K |
| Pretax Income | 130.74M | 55.09M | -88.61M | -996.73M | -1.24B | -960.93M | -504.43M | -362.22M | -121.16M | -63M | -41M | -35.38M | -26.75M | -26.85M |
| Pretax Margin % | 2.47% | 1.09% | -1.99% | -23.99% | -32.5% | -33.81% | -28.63% | -31.93% | -18.64% | -15.79% | -14.78% | -21.2% | -30.1% | -53.79% |
| Income Tax | 2.6M | 21.26M | 20.79M | 18.71M | 12.51M | -11.03M | -13.45M | -55.15M | 791K | 705K | 326K | 122K | 13K | 0 |
| Effective Tax Rate % | 1.99% | 38.59% | -23.46% | -1.88% | -1.01% | 1.15% | 2.67% | 15.23% | -0.65% | -1.12% | -0.8% | -0.34% | -0.05% | 0% |
| Net Income | 103.96M | 33.83M | -109.4M | -1.02B | -1.26B | -949.9M | -490.98M | -307.06M | -121.95M | -63.71M | -41.32M | -35.5M | -26.76M | -26.85M |
| Net Margin % | 1.96% | 0.67% | -2.45% | -24.45% | -32.83% | -33.43% | -27.87% | -27.07% | -18.76% | -15.97% | -14.9% | -21.27% | -30.12% | -53.79% |
| Net Income Growth % | 405.42% | 130.93% | 89.23% | 19.16% | -32.24% | -93.47% | -59.9% | -151.8% | -91.42% | -54.17% | -16.39% | -32.69% | 0.36% | - |
| Net Income (Continuing) | 103.96M | 33.83M | -109.4M | -1.02B | -1.26B | -949.9M | -490.98M | -307.06M | -121.95M | -63.71M | -41.32M | -35.5M | -26.76M | -26.85M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.66 | 0.21 | -0.66 | -5.54 | -6.86 | -5.45 | -3.35 | -2.36 | -1.26 | -0.70 | -0.47 | -0.46 | -0.37 | -1.60 |
| EPS Growth % | 403.17% | 131.82% | 88.09% | 19.24% | -25.87% | -62.69% | -41.95% | -87.3% | -80% | -48.94% | -2.17% | -24.32% | 76.88% | - |
| EPS (Basic) | - | 0.22 | -0.66 | -5.54 | -6.86 | -5.45 | -3.35 | -2.36 | -1.26 | -0.70 | -0.47 | -0.46 | -0.37 | -1.60 |
| Diluted Shares Outstanding | 157.76M | 159.79M | 165.93M | 183.33M | 182.99M | 174.18M | 146.71M | 130.08M | 97.13M | 91.22M | 88.61M | 77.1M | 71.99M | 16.78M |
| Basic Shares Outstanding | 152.42M | 152.99M | 165.93M | 183.33M | 182.99M | 174.18M | 146.71M | 130.08M | 97.13M | 91.22M | 87.93M | 77.1M | 71.99M | 16.78M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Carrier fee margin compression
According to recent quarterly filings, Twilio's revenue growth has accelerated to 20.0% in 2026Q1, marking a notable departure from the single-digit growth rates observed throughout 2024, suggesting that the company's strategic pivot toward enterprise-focused efficiency is beginning to yield tangible top-line momentum in the current fiscal year.
The recent uptick in revenue growth appears to indicate that the company is successfully navigating the transition from a pure-play CPaaS land-grab model to a more mature, enterprise-integrated platform. Investors should monitor whether this acceleration is driven by sustainable volume increases in core messaging or if it reflects temporary seasonal fluctuations in transactional usage.
As reported in financial statements, Twilio has successfully transitioned from operating losses in early 2024 to a positive operating income of $107.7 million by 2026Q1, demonstrating that management's focus on expense discipline is finally allowing operating margins to scale faster than the underlying gross profit growth.
The expansion of operating margins to 7.7% in the most recent quarter suggests that the company is effectively leveraging its existing infrastructure without proportional increases in SG&A. This shift implies that the previous era of unchecked headcount growth has been replaced by a more rigorous approach to operational efficiency.
Based on the provided income statement data, Twilio continues to issue significant stock-based compensation, with $136.5 million recorded in 2026Q1 alone, which remains a substantial headwind that complicates the assessment of the company's true GAAP earnings power and dilutes the value for existing common shareholders.
While GAAP net income has turned positive, the persistent reliance on stock-based compensation suggests that the company's profitability is still heavily subsidized by non-cash equity grants. Analysts should remain cautious, as the gap between reported net income and cash-based earnings remains wide due to these recurring compensation expenses.
Data from the income statement reveals that Twilio's gross margin has remained range-bound between 48% and 50% over the last ten quarters, reflecting the inherent difficulty of scaling a business model heavily reliant on variable network access fees paid to global telecommunications carriers for message delivery.
The inability to significantly expand gross margins suggests that the company lacks the pricing power to fully offset carrier-imposed cost increases. This structural reality warrants further investigation into whether the Data & Applications segment can eventually shift the overall margin profile toward higher-margin software revenue.
Quick answers to the most common questions about buying TWLO stock.
For fiscal year 2025, Twilio Inc. (TWLO) reported total revenue of $5.07B. This represents a 10050.7% increase compared to $49.9M in 2013.
Twilio Inc. (TWLO) is profitable, generating $33.8M in net income for the fiscal year ending 2025 with a net profit margin of 0.7%.
Twilio Inc. (TWLO) reported an operating income of $174.7M, resulting in an operating profit margin of 3.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Twilio Inc. (TWLO) generated $2.43B in gross profit for the year, representing a gross profit margin of 48.0%. This demonstrates the company's core pricing power and production efficiency.