Financial Trends -- 7/10
Revenue accelerating from +12% to +20% YoY over 5 quarters. Non-GAAP operating margin expanded from 0.1% to 19.8%
over 4 years. Non-GAAP EPS +33% YoY (FY2025). Aggressive buybacks reducing diluted shares 16% from peak. FCF nearly
tripled to $945M. Gross margins compressed 220bps YoY -- operating leverage driven entirely by opex discipline.
Weight: 25%
FY2025 Revenue
$5,067M
+14% YoY reported, +13% organic
Q1 2026 Revenue
$1,407M
+20% YoY reported, +16% organic
FY2025 Non-GAAP EPS
$4.89
+33% YoY
Non-GAAP Op Margin Q1'26
19.8%
Record, +460bps over 2 years
Quarterly Revenue Trend
| Quarter | Revenue | YoY Growth |
|---|---|---|
| Q1 2024 | $1,047M | -- |
| Q2 2024 | $1,083M | -- |
| Q3 2024 | $1,134M | -- |
| Q4 2024 | $1,195M | -- |
| Q1 2025 | $1,172M | +12.0% |
| Q2 2025 | $1,228M | +13.5% |
| Q3 2025 | $1,300M | +14.7% |
| Q4 2025 | $1,366M | +14.3% |
| Q1 2026 | $1,407M | +20.0% |
Annual Revenue ($M)
Margin Progression
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 | Q1'26 |
|---|---|---|---|---|---|---|
| Non-GAAP Gross Margin | 53.0% | 51.0% | 53.0% | 53.0% | 50.5% | 49.6% |
| Non-GAAP Op Margin | 0.1% | -0.1% | 13.0% | 16.0% | 18.2% | 19.8% |
| GAAP Op Margin | -32.2% | -32.0% | -21.0% | -1.2% | 3.1% | 8.0% |
EPS & Free Cash Flow
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 | Q1'26 |
|---|---|---|---|---|---|---|
| Non-GAAP EPS | ($0.25) | ($0.15) | $2.45 | $3.67 | $4.89 | $1.50 |
| Free Cash Flow ($M) | -- | -- | $364M | $657M | $945M | $132M |
| Shares Diluted (M) | 174M | 183M | 185M | 169M | 160M | 158M |
Assessment
Score: 7/10. Revenue YoY accelerating from 7% to 14% to 20%. Operating margin
swing from -32% GAAP to +8% is exceptional -- a 4,000bps improvement in 4 years. FCF nearly tripled to $945M. Aggressive
buybacks reducing shares 16% from peak (185M to 158M diluted). The knock: gross margins compressed 220bps YoY across 8
consecutive quarters (carrier fee pass-throughs + messaging mix shift). Operating leverage is entirely from opex discipline,
not gross profit flow-through. Score of 7 reflects strong but imperfect financial momentum.
Data sourced from Daloopa, Twilio filings, and earnings call transcripts.