Twilio Inc (0LHL.L) Q3 2025 Earnings Report

Twilio delivered a solid QQ3 2025 performance, with revenue of $1.300 billion posting a robust year-over-year uplift of 14.7% and a quarter-over-quarter gain of 5.9%. Gross margin held at 48.6%, while operating income of $40.95 million produced an operating margin of 3.15% and net income of $37.25 million (net margin 2.86%), translating into earnings per share of $0.24 (diluted $0.23). The quarter marks a continuation of positive operating leverage following a difficult Q4 2024, underscoring improving top-line momentum against a backdrop of sustained investment in product development and platform expansion. Twilio also benefits from a conservative balance sheet with minimal leverage, evidenced by a debt ratio of ~1.1% and cash per share of $16.06, supporting ongoing cash generation (operating cash flow per share: $1.72; free cash flow per share: $1.72). The valuation remains elevated relative to many peers (P/S ~11.8x; P/E ~102.9x), implying that investors are pricing on continued revenue growth and platform expansion, not just near-term profitability.