Twilio Q2 revenue +22% to $1.5B; net income surges on $944M tax benefit, not operations

Filed August 7, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 8, 2025 · ~2 min read

Key Changes

• high

  Net income jumped to $1.1B from $22.4M (+4659%) on a $944M deferred tax asset valuation allowance release, while operating income rose only 129% to $84.5M. The earnings surge came from below-the-line tax accounting, not operational improvement.

  MD&A: Income Taxes verify on EDGAR →
• high

  Revenue growth accelerated to 22% YoY ($1.5B vs. $1.2B) from 13% in Q2 FY25, driven by stronger customer usage (DBNE 116% vs. 108%) and $71M in A2P carrier fee pass-through that adds no gross profit.

  MD&A: Revenue verify on EDGAR →
• high

  Operating income more than doubled to $84.5M from $37.0M despite a $32.8M non-cash impairment on prepaid network services from two financially troubled providers. Excluding the charge, operating income would have been ~$117M.

  MD&A: Operating Expenses verify on EDGAR →