01—Abstract
Summary
Summary of the 8-K filed April 30, 2026. Cited figures are marked; the original filing is the authoritative source.
Twilio Inc. (NYSE: TWLO) reported first quarter 2026 results for the quarter ended March 31, 2026, in a press release furnished as Exhibit 99.1.
Revenue was $1.41 billiona, up 20% year-over-year reported and 16% organic. GAAP income from operations was $107.7 million, compared with $23.1 million a year earlier, and non-GAAP income from operations was $278.9 million, up 31%. GAAP diluted earnings per share were $0.57 and non-GAAP diluted earnings per share were $1.50, compared with $0.12 and $1.14 in the first quarter of 2025.
Dollar-Based Net Expansion Rate was 114%, versus 107% a year earlier. Net cash provided by operating activities was $153.2 millionb and free cash flow was $132.3 million, both lower than the prior-year quarter. The company raised its full-year 2026 outlook.
Reported revenue growth is now expected at 14% to 15% (previously 11.5% to 12.5%), organic revenue growth at 9.5% to 10.5% (previously 8% to 9%), and non-GAAP income from operations and free cash flow are each expected at $1.08 billion to $1.10 billionc (previously $1.04 billion to $1.06 billion). For the second quarter of 2026, the company guided to revenue of $1.420 billion to $1.430 billion and non-GAAP diluted EPS of $1.27 to $1.32. During the quarter Twilio repurchased $253.4 million of Class A common stock.
About $892.0 milliond remained available under the $2.0 billion program, which expires December 31, 2027, as of March 31, 2026. The company also stated it has discontinued disclosure of Active Customer Accounts as a key metric.
02—Key points
Key Highlights
- Q1 2026 revenue of $1.41 billion, up 20% reported and 16% organic year-over-year; the company described this as its highest revenue and gross profit growth rates in more than three years.
- GAAP income from operations of $107.7 million (up 366% year-over-year) and non-GAAP income from operations of $278.9 million (up 31%).
- GAAP diluted EPS of $0.57 versus $0.12 a year earlier; non-GAAP diluted EPS of $1.50 versus $1.14.
- Full-year 2026 guidance raised: reported revenue growth to 14%-15%, organic growth to 9.5%-10.5%, and both non-GAAP operating income and free cash flow to $1.08-$1.10 billion.
- Q2 2026 guidance: revenue of $1.420-$1.430 billion and non-GAAP diluted EPS of $1.27-$1.32.
- Operating cash flow fell to $153.2 million and free cash flow to $132.3 million from $191.0 million and $178.3 million in Q1 2025.
- Dollar-Based Net Expansion Rate improved to 114% from 107%; $253.4 million of shares repurchased in the quarter, with $892.0 million remaining under the buyback authorization.
03—Questions
Frequently Asked Questions
Why did Twilio raise its full-year 2026 guidance?
The filing states Twilio is raising its reported revenue growth range to 14%-15% from 11.5%-12.5%, its organic revenue growth range to 9.5%-10.5% from 8%-9%, and its non-GAAP operating income and free cash flow ranges to $1.08-$1.10 billion from $1.04-$1.06 billion. The CEO attributed the quarter's results to a multi-year companywide evolution in innovation velocity, go-to-market efficiency and financial rigor.
How did profitability change compared with the prior year?
GAAP income from operations rose to $107.7 million from $23.1 million, and GAAP net income attributable to common stockholders was $90.1 million versus $20.0 million. Non-GAAP income from operations rose 31% to $278.9 million, with non-GAAP operating margin of 20% versus 18%.
Did cash generation improve?
Not on a year-over-year basis in this quarter. Net cash provided by operating activities was $153.2 million, versus $191.0 million in Q1 2025, and free cash flow was $132.3 million, versus $178.3 million. Accrued expenses and other current liabilities were a $155.8 million use of cash in the quarter.
How much capital has Twilio returned through buybacks?
Twilio repurchased $253.4 million of Class A common stock in Q1 2026. Under the program authorized in January 2025 for up to $2.0 billion, about $1.1 billion has been completed to date, leaving $892.0 million available as of March 31, 2026. The program expires December 31, 2027.
What changed in the company's key metrics reporting?
Beginning in Q1 2026, Twilio discontinued disclosure of Active Customer Accounts as a key metric and revised the Dollar-Based Net Expansion Rate definition to refer to 'customer accounts' instead. The company states the methodology for identifying these accounts is unchanged and the revision has no impact on its DBNE calculation or historical DBNE figures.
04—Continue