AI-extracted from the 10-Q filed 2026-08-07 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Revenue grew 22% YoY to $1.5B, but net income of $1.07B was driven mainly by a $944.1M one-time tax benefit from releasing Twilio's U.S. valuation allowance, not underlying profitability.
Biggest Revenue Drivers
United States$961.4M
64% of total revenue, consistent with prior-year mix
International$537.7M
36% of total revenue, consistent with prior-year mix
Biggest Revenue Drivers
Total revenue: $1.5B+22% YoY
United States$961.4M
64% of total revenue, consistent with prior-year mix
International$537.7M
36% of total revenue, consistent with prior-year mix
Largest Expense Items
Cost of revenue$773.2M+24% YoY
$138.8M increase in network service provider costs, net of hedging, including $71.1M from incremental A2P messaging fees introduced by major U.S. carriers
Research and development$273.3M+12% YoY
$13.8M increase in hosting fees for development/staging and $10.3M increase in personnel costs
Sales and marketing$216.8M-2% YoY
Fluctuations across categories were not individually significant
General and administrative$118.4M+17% YoY
$8.0M increase in provision for doubtful accounts, $4.0M increase in personnel costs, $2.1M increase in professional services fees
Margins: GAAP gross margin declined to 48% from 49% as increased network service provider and A2P messaging pass-through fees weighed on gross profit, while non-GAAP operating margin improved to 19% from 18% on operating leverage.
Watch Items from the Filing
Income tax benefit of $991.7M, including a $944.1M discrete benefit from releasing the U.S. deferred tax asset valuation allowance, inflated GAAP net income to $1.07B versus $22.4M a year ago.
Recorded a $32.8M impairment loss on prepaid network services after two network service providers experienced operational and financial challenges, impacting operating expenses.
Incremental A2P messaging fees from major U.S. carriers added $71.1M to both revenue and cost of revenue in the quarter, a pass-through that pressures gross margin without affecting gross profit dollars.
International revenue remains 36% of total, exposing the company to foreign currency fluctuations and cross-border data transfer regulation, including potential GDPR fines of up to 4% of worldwide revenue.
Held $1.5 billion of non-cancelable purchase commitments with remaining terms up to five years with cloud infrastructure and network service providers.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Bell Charles HDirectorGrant or award · Sep 15, 2026
Dubinsky DonnaDirectorGrant or award · Sep 15, 2026
Epstein JeffDirectorGrant or award · Sep 15, 2026
Congress trading in TWLO
7 transactions in TWLO reported by 3 members of Congress under the STOCK Act, most recent trade May 4, 2026. Reported transactions, not recommendations.
About TWILIO INC (TWLO): stock profile, AI score and financials
TWILIO INC (TWLO) stock profile, AI quality score, and SEC EDGAR financial data, a Technology sector company. 13F Pro's AI-powered ranking engine scores TWLO at 70.4/100 on a composite quality score built from its SEC filings, placing it at rank #208 of 2,925 stocks — the top 10% of the AI-ranked universe. TWLO scores in the top quartile across balance sheet strength (89.1), profitability (86.2), revenue scale (79.3). Areas of concern include earnings quality (36.9), which score below median versus the broader universe. Shareholder dilution risk is elevated at 14.1/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), TWILIO INC reports quarterly revenue of $1.5B, net income of $1.1B, an operating margin of 5.6%. Top institutional holders of TWLO by reported 13-F value include BlackRock, JPMORGAN CHASE, FMR, based on the most recent SEC filings. TWLO trades on the NYSE exchange and files with the SEC under CIK 1447669. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate TWLO daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for TWILIO INC directly from SEC EDGAR.