Joining me today are Khozema Shipchandler, Chief Executive Officer, Aidan Viggiano, Chief Financial Officer, and Thomas Wyatt, Chief Revenue Officer. Definitions and reconciliations between our GAAP and non-GAAP results can be found in our earnings presentation posted on our IR website at investors.twilio.com. We will also make forward-looking statements on this call, including statements about our future outlook and goals. Twilio had a terrific Q1, accelerating revenue and gross profit to their highest growth rates in more than three years.

We delivered over $1.4 billion in revenue, up 20% year-over-year on a reported basis, and drove 16% growth in both organic revenue and non-GAAP gross profit. We also generated $279 million of non-GAAP income from operations and $132 million of free cash flow. In Q1, we continued to see unprecedented demand for voice reimagined through the lens of AI, which is increasingly an entry point to the Twilio platform for AI natives and enterprises alike. Our voice channel revenue grew 20% year-over-year, marking its sixth consecutive quarter of accelerated growth, with AI being a catalyst.

For example, software add-ons such as Branded Calling and Conversational Intelligence both grew revenue more than 100% year-over-year. In just three months, the agent boosted its booking rates by 39%, capturing 6,500 appointments that otherwise would have been lost and generated $8.4 million in revenue. While Bland.ai committed to a multi-year partnership to use messaging, voice, and software add-ons such as recordings and Branded Calling to power their AI agent platform. Messaging revenue growth also accelerated in the quarter, aided by strong growth in WhatsApp and RCS.

What went well
  • Twilio delivered a strong first quarter with revenue of more than $1.4 billion, up 20% year-over-year on a reported basis and 16% organic, its fastest organic revenue growth rate since 2022, with non-GAAP gross profit also up 16% (up from 10% in Q4 2025).
  • Non-GAAP income from operations reached a record $279 million (up 31% year-over-year) at a record 19.8% non-GAAP operating margin, and free cash flow was $132 million.
  • Stock-based compensation fell below 10% of revenue (9.7%) for the first time since the IPO, well ahead of the company's prior 2027 target.
  • Voice grew 20% (its sixth consecutive quarter of accelerated growth) with Branded Calling and Conversational Intelligence each up more than 100%, messaging accelerated to 25%, and the dollar-based net expansion rate rose to 114%.
  • Twilio completed $253 million of share repurchases, welcomed Doug Robinson to its board, was named a leader by IDC and Omdia, and raised its full-year organic revenue growth range to 9.5%-10.5% ahead of the SIGNAL product launch.
What went wrong
  • Non-GAAP gross margin declined 180 basis points year-over-year to 49.6%, driven by $46 million of incremental U.S. carrier (A2P) pass-through fees; without those fees gross margin would have been 50 basis points higher sequentially.
  • Free cash flow of $132 million was held back by a $141 million payment tied to the 2025 cash bonus program.
  • Q2 non-GAAP operating income guidance of $250 million-$260 million implied a sequential step-down, reflecting annual merit increases and expenses for the SIGNAL conference, and management again flagged carrier-fee cost pressure on small-business customers.

More on Twilio Inc

Reported 2026-04-30 · figures from the Twilio Inc Q1 2026 earnings call.

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