Revenue growth accelerated to 22.0% in 2026Q2, while operating margin improved to 5.6% from -4.2% in 2024Q1, though gross margin compressed to 48.4% from 52.0%.
Twilio Inc. (TWLO) annual income statement — 13-year revenue, gross profit & net income history
| 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 | 5.57B | 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 % | 17.82% | 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 | 2.87B | 2.59B | 2.18B | 2.11B | 2.01B | 1.45B | 846.12M | 525.55M | 300.84M | 182.9M | 120.52M | 75.72M | 41.42M | 25.87M |
| COGS % of Revenue | - | 51.08% | 48.9% | 50.8% | 52.6% | 51.06% | 48.03% | 46.33% | 46.28% | 45.84% | 43.46% | 45.37% | 46.62% | 51.82% |
| Gross Profit | 2.7B | 2.48B | 2.28B | 2.04B | 1.81B | 1.39B | 915.66M | 608.92M | 349.23M | 216.13M | 156.81M | 91.19M | 47.42M | 24.05M |
| Gross Margin % | 48.54% | 48.92% | 51.1% | 49.2% | 47.4% | 48.94% | 51.97% | 53.67% | 53.72% | 54.16% | 56.54% | 54.63% | 53.38% | 48.18% |
| Gross Profit Growth % | - | 8.8% | 11.46% | 12.7% | 30.41% | 51.88% | 50.38% | 74.36% | 61.59% | 37.82% | 71.96% | 92.3% | 97.17% | - |
| Operating Expenses | 2.4B | 2.3B | 2.32B | 2.43B | 2.84B | 2.31B | 1.41B | 978.7M | 464.46M | 282.2M | 198.13M | 125.39M | 73.81M | 50.9M |
| OpEx % of Revenue | - | 45.47% | 52.01% | 58.6% | 74.34% | 81.16% | 79.95% | 86.27% | 71.45% | 70.72% | 71.44% | 75.12% | 83.07% | 101.97% |
| Selling, General & Admin | 1.26B | 1.24B | 1.26B | 1.41B | 1.68B | 1.52B | 878.01M | 587.35M | 293.1M | 161.46M | 116.34M | 84M | 51.98M | 36.94M |
| SG&A % of Revenue | - | 24.44% | 28.32% | 34.05% | 44% | 53.38% | 49.84% | 51.77% | 45.09% | 40.46% | 41.95% | 50.33% | 58.51% | 74% |
| Research & Development | 1.06B | 1.02B | 1.01B | 942.79M | 1.08B | 789.22M | 530.55M | 391.36M | 171.36M | 120.74M | 77.93M | 41.38M | 21.82M | 13.96M |
| R&D % of Revenue | - | 20.13% | 22.63% | 22.7% | 28.2% | 27.77% | 30.11% | 34.5% | 26.36% | 30.26% | 28.1% | 24.79% | 24.56% | 27.96% |
| Other Operating Expenses | 2M | 45.61M | 47.26M | 77.13M | 81.85M | 0 | 0 | 0 | 0 | 0 | 3.86M | 0 | 0 | 0 |
| Operating Income | 306.82M | 174.68M | -40.44M | -390.3M | -1.03B | -915.58M | -492.9M | -369.79M | -115.23M | -66.07M | -41.31M | -34.19M | -26.38M | -26.85M |
| Operating Margin % | 5.51% | 3.45% | -0.91% | -9.4% | -26.94% | -32.22% | -27.98% | -32.6% | -17.73% | -16.56% | -14.9% | -20.48% | -29.7% | -53.79% |
| Operating Income Growth % | - | 532% | 89.64% | 62.14% | -12.6% | -85.75% | -33.29% | -220.9% | -74.4% | -59.93% | -20.83% | -29.6% | 1.74% | - |
| EBITDA | 500.72M | 370.13M | 165.55M | -105.89M | -751.82M | -657.21M | -343.24M | -259.36M | -89.14M | -47.31M | -33M | -29.97M | -24.63M | -26.24M |
| EBITDA Margin % | 8.99% | 7.3% | 3.71% | -2.55% | -19.65% | -23.13% | -19.48% | -22.86% | -13.71% | -11.86% | -11.9% | -17.95% | -27.72% | -52.56% |
| EBITDA Growth % | 86.24% | 123.57% | 256.34% | 85.92% | -14.4% | -91.47% | -32.34% | -190.95% | -88.42% | -43.36% | -10.12% | -21.68% | 6.15% | - |
| D&A (Non-Cash Add-back) | 193.9M | 195.44M | 205.98M | 284.41M | 279.13M | 258.38M | 149.66M | 110.43M | 26.09M | 18.76M | 8.31M | 4.23M | 1.76M | 610K |
| EBIT | 172.68M | 55.09M | -88.61M | -996.73M | -1.24B | -960.93M | -492.9M | -369.79M | -115.23M | -66.07M | -37.45M | -35.38M | -26.75M | -26.85M |
| Net Interest Income | 33.8M | 70.6M | 90.2M | 77.7M | 64.6M | 55.7M | 7.42M | -4.27M | -11.9M | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 33.8M | 70.6M | 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 | -134.15M | -119.59M | -48.18M | -606.42M | -212.68M | -45.34M | -11.53M | 7.57M | -5.92M | 3.07M | 317K | -1.19M | -362K | -4K |
| Pretax Income | 172.68M | 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 % | 3.1% | 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 | -976.07M | 21.26M | 20.79M | 18.71M | 12.51M | -11.03M | -13.45M | -55.15M | 791K | 705K | 326K | 122K | 13K | 0 |
| Effective Tax Rate % | -565.26% | 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 | 1.15B | 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 % | 20.62% | 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 % | 5574.48% | 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) | 1.15B | 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) | 7.19 | 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 % | 5938.69% | 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 | 159.71M | 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 | 152.79M | 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 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
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 $2.48B in gross profit for the year, representing a gross profit margin of 48.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
SBC dilution and margin pressure
Metrics are mathematically derived from official filings.
Revenue Growth Accelerates on Communications
Twilio's revenue growth accelerated from 4.0% in 2024Q1 to 22.0% in 2026Q2, per reported financials, indicating a robust demand environment for its communications platform.
The sequential acceleration in revenue growth, from single-digit to over 20%, suggests that Twilio is gaining traction in its core communications business, possibly driven by increased usage and new customer acquisitions. The consistent upward trend in growth rates across the last five quarters points to a durable expansion, though investors should monitor whether this pace is sustainable given the competitive landscape.
Gross Margin Compression Stabilizes
Gross margin declined from 52.0% in 2024Q1 to 48.4% in 2026Q2, as per income statement data, reflecting a structural shift toward lower-margin communications revenue.
The gradual erosion of gross margin, though stabilizing around 48-49%, suggests that Twilio's product mix is becoming more weighted toward usage-based communications, which typically carry lower margins than software. This trend may indicate increased competition or pricing pressure, but the stabilization in recent quarters could signal that the company has reached a new equilibrium. Investors should watch for any further compression that could impact overall profitability.
Operating Leverage Emerges as Revenue Scales
Operating margin swung from -4.2% in 2024Q1 to 5.6% in 2026Q2, based on reported figures, demonstrating that Twilio is beginning to leverage its cost structure.
The transition from negative to positive operating income, with operating margin expanding by nearly 10 percentage points, indicates that Twilio's revenue growth is outpacing its operating expense growth. This operating leverage is a positive sign for scalability, but the absolute margin remains thin, suggesting that the company still has significant fixed costs to absorb. The sustainability of this leverage will depend on continued revenue growth and disciplined expense management.
Net Income Volatility Masks Underlying Progress
Net income swung from -$55.3M in 2024Q1 to $1.1B in 2026Q2, per income statement data, but the 2026Q2 figure includes a large one-time gain, distorting EPS.
The dramatic swing in net income, particularly the $1.1B profit in 2026Q2, appears to be driven by a non-operating item, likely a one-time gain, given that operating income was only $84.5M. This inflates EPS to $6.68, which is not indicative of ongoing profitability. Excluding this anomaly, Twilio's underlying earnings are improving but remain modest, and the high stock-based compensation expense (over $278M in 2026Q2) continues to dilute shareholders.
R&D and SG&A Efficiency Improves
Combined R&D and SG&A as a percentage of revenue fell from 57.7% in 2024Q1 to 40.6% in 2026Q2, as reported in financial statements, indicating improved cost discipline.
The reduction in operating expenses relative to revenue suggests that Twilio is becoming more efficient in its spending, likely through better resource allocation and economies of scale. However, the absolute dollar amounts of R&D and SG&A have increased, indicating that the company is still investing heavily in growth. The key question is whether this efficiency gain can be maintained as the company continues to expand.
SBC and Margin Pressures Could Undermine Progress
Despite revenue growth, Twilio's heavy stock-based compensation (over $278M in 2026Q2) and gross margin erosion may signal that reported profits are overstated and competitive pressures persist.
Short-sellers might argue that Twilio's operating income is flattered by excluding SBC, which is a real economic cost. The consistent SBC expense, averaging around $150M per quarter, dilutes shareholders and reduces true profitability. Additionally, the gross margin decline from 52% to 48% suggests that Twilio may be sacrificing margin for growth, potentially due to pricing pressure or a shift to lower-margin products. If these trends continue, the company's path to sustainable profitability could be longer than expected.