Twilio Swings to Profit, Raises Outlook for 2025

Twilio reported Q2 2025 revenue of $1.23 billion, up 13-13.5% year-over-year and above analyst expectations, with net income of $22.4 million compared to a loss a year earlier. Adjusted EPS reached $1.19, beating estimates and marking a third consecutive quarter of accelerating revenue growth. Operational improvements included a free cash flow margin of 21.4% and customer count rising to 349,000. The company issued Q3 guidance above analyst forecasts, projecting 10-11% revenue growth, and raised its full-year organic revenue and free cash flow outlooks. Despite strong results, Twilio's stock price dropped after hours on investor caution over continued margin pressures and conservative EPS guidance. Analysts expect Twilio to achieve annual profitability by 2025, citing improved fundamentals and growth prospects.