Twilio Inc. reported a significant financial performance for the fiscal year ending December 31, 2025, achieving total revenue of $5.07 billion, a 14% increase from $4.46 billion in 2024. This growth was primarily driven by increased usage of its products, reflected in a Dollar-Based Net Expansion Rate of 108%. The company also recorded a net income of $33.8 million, a notable recovery from a net loss of $109.4 million in the previous year. This marks Twilio's first profitable year since its inception, highlighting a shift towards sustainable profitability.
The company experienced a 19% rise in cost of revenue, totaling $2.59 billion, largely due to increased fees from network service providers, including a $49.5 million impact from new A2P messaging fees introduced by a major U.S. carrier. Despite the rise in costs, gross profit increased by 9% to $2.48 billion, resulting in a gross margin of 49%. Operating expenses remained stable, with a slight decrease in general and administrative costs, contributing to the overall improvement in profitability.
Strategically, Twilio made significant organizational changes by realigning its business unit structure into a functional support model, which it believes will enhance operational efficiency. The company also completed the acquisition of Stytch, Inc., an identity platform, for $104.1 million, further expanding its product offerings. As of December 31, 2025, Twilio reported 402,000 Active Customer Accounts, up from 325,000 in 2024, indicating strong customer acquisition and retention.
Operationally, Twilio's international revenue accounted for 36% of total revenue, reflecting its ongoing geographic expansion. The company continues to invest in product innovation, particularly in artificial intelligence and machine learning, to enhance customer engagement capabilities. As of the end of 2025, Twilio employed 5,587 individuals, with a focus on maintaining a skilled workforce to support its growth initiatives.
Looking ahead, Twilio anticipates continued revenue growth driven by increased product adoption and customer engagement. The company plans to optimize its operations and reduce costs while expanding its market share through strategic partnerships and product innovations. However, it remains cautious of potential macroeconomic challenges that could impact customer spending and usage levels.
About TWILIO INC
Twilio Inc. provides a cloud-based platform offering APIs and software solutions for customer engagement through messaging, voice, email, and digital channels. Its services enable businesses to build personalized, real-time communications and leverage customer data and AI for targeted interactions. Serving a broad range of industries and company sizes, Twilio's core value lies in simplifying and enhancing multi-channel customer engagement at scale.
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