Twilio Reports 15% Revenue Growth to $1.30 Billion in Q3 2025

Twilio Inc. reported a significant increase in its financial performance for the third quarter of 2025, with revenue reaching $1.30 billion, a 15% increase from $1.13 billion in the same period last year. The company's net income for the quarter was $37.2 million, compared to a net loss of $9.7 million in the prior year. For the nine months ending September 30, 2025, Twilio's revenue totaled $3.70 billion, up 13% from $3.26 billion in the same period of 2024, while net income for the nine months was $79.7 million, a notable recovery from a net loss of $96.9 million in the previous year.

The company experienced a 20% increase in cost of revenue, which rose to $668.3 million from $555.0 million year-over-year, primarily due to higher network service provider costs. Despite this increase, gross profit improved by 9% to $632.1 million, reflecting the overall growth in revenue. Operating expenses remained relatively stable, with total operating expenses increasing slightly to $591.1 million from $583.5 million, indicating effective cost management amid rising revenues.

Operationally, Twilio reported a substantial increase in its Active Customer Accounts, which grew to 392,000 from 320,000 year-over-year. The company also achieved a Dollar-Based Net Expansion Rate of 109%, up from 105% in the previous year, indicating strong customer retention and expansion. The U.S. market accounted for 64% of total revenue, while international revenue contributed 36%, highlighting Twilio's ongoing geographic diversification.

Strategically, Twilio announced its intention to acquire Stytch, Inc., an identity platform for AI agents, with the deal expected to close in the fourth quarter of 2025. This acquisition aligns with Twilio's focus on enhancing its customer engagement capabilities. The company also underwent a reorganization in January 2025, consolidating its operations into a single reportable segment to streamline its business model. Looking ahead, Twilio aims to leverage innovations in AI and expand its product offerings to drive further growth and profitability, while maintaining a strong focus on cost management and operational efficiency.