"Twilio had a great Q4 as we reached record heights with $1.4 billion in revenue, $256 million of non-GAAP income from operations, and $256 million in free cash flow. For the full year, we generated $5.1 billion in revenue, $924 million of non-GAAP income from operations, and $945 million of free cash flow. Our strong fourth quarter capped off what I believe is one of the most balanced and successful years of execution in our company's history."
CEO · Khozema Shipchandler
"Voice finished the year strong as revenue growth accelerated to the high teens in Q4, its best growth rate since 2022. This was aided by strong growth from voice AI customers, as voice AI revenue growth accelerated above 60% year-over-year. Messaging revenue growth was also solid, driven in part by strong volumes during cyber week and the holiday season."
CFO · Aidan Viggiano
"Our go-to-market motion is firing on all cylinders. In Q4, we saw particular strength in self-serve as revenue grew 28% year-over-year, led by accelerating voice revenue growth. ISVs were also a bright spot, with revenue growing 26% year-over-year. In Q4, the number of large deals closed of $500,000 or more increased 36% year-over-year."
CEO · Khozema Shipchandler
"Our full-year revenue guidance assumes approximately $190 million in incremental pass-through revenue from these fees. While the pass-through fees have no impact on our ability to generate gross profit, income from operations, or free cash flow dollars, they do impact our margin rates. For modeling purposes, we would expect the incremental fees to reduce our full year 2026 non-GAAP gross margin by roughly 170 basis points, all else equal."
CFO · Aidan Viggiano
"Thomas alluded to the growth that we've seen in ISVs, Aidan did too. You know, so you have kind of two ends of the spectrum that are experiencing really rapid growth, and that is almost entirely, I would say, a technology story. Like, customers would not buy the higher priced product, which we are in almost all cases, unless they were getting superior ROI."
CEO · Khozema Shipchandler
"While still early days, during Q4, Twilio's Branded Calling revenue grew roughly 6x year-over-year. RCS continued to gain traction as volume grew roughly 5x quarter-over-quarter. Ramp, a leading financial operations company, signed a deal to leverage RCS as the branded messaging experience to power account notifications and two-way capabilities, such as adding a purchase reason or sending a receipt."
CEO · Khozema Shipchandler
"For the full year, we generated revenue of $5.1 billion, representing 14% reported growth and 13% organic growth. We also delivered strong profitability, with non-GAAP income from operations increasing 29% year-over-year to $924 million. Free cash flow was up 44% year-over-year to $945 million. And finally, we generated $158 million in GAAP income from operations, marking our first full year of GAAP profitability."
CFO · Aidan Viggiano
"While our 2027 non-GAAP operating margin target did not account for the recent fee increases initiated by all major U.S. carriers, absent fees, we are on track to meet or exceed the financial framework we provided last year. As an alternative, we are providing a 2027 non-GAAP operating income target of at least $1.23 billion, which is unaffected by carrier fees and aligns with the high end of our Investor Day framework."
CFO · Aidan Viggiano
"We generated free cash flow of $256 million in the quarter. Additionally, we completed $198 million in share repurchases in Q4. For the full year, we completed $855 million in share repurchases, representing 90% of 2025 free cash flow, well above the 50% target established at our 2025 Investor Day."
CEO · Khozema Shipchandler
"Our innovation strategy and execution continued to be validated by industry analysts. Throughout the year, we were recognized as a leader in major evaluations by Gartner, IDC, and Omdia, and ended the year by being named the company to beat in CPaaS AI by Gartner. They noted, 'Twilio's combination of omni-channel communications, contextual data, AI frameworks, developer base, and technology partnerships makes it the company to beat in CPaaS AI.'"
CEO · Khozema Shipchandler