Twilio has positioned itself as the essential communications backbone for the artificial intelligence revolution. The company operates in a market projected to expand along with increased demand for personalized customer experiences and AI-enabled automation.
Customers are systematically increasing wallet share with the firm too. In fact, multiple metrics suggest the company has transitioned from a high-growth, low-margin model to a sustainable, profitable growth enterprise.
TWILIO INC. (Nasdaq symbol TWLO) offers a key service to software developers who create mobile apps. Specifically, its own software is used to connect apps to essential functions elsewhere on a device, including dealing with phone calls and messaging.
On November 14, 2025, Twilio completed the acquisition of Stytch Inc., a developer-focused identity and access management platform, expected to close in mid-November. This acquisition represents a transformational expansion of Twilio’s addressable market, positioning the company to build an “intelligent identity layer” specifically designed to authenticate and differentiate between humans, trusted AI agents, and rogue agents.
The Stytch acquisition addresses a critical vulnerability in Twilio’s platform: as autonomous AI agents increasingly traffics through communication networks, traditional authentication systems designed for human-to-human interactions become insufficient. The combined Twilio-Stytch platform will enable customers to embed granular permissions, scoped tokens, and human-in-the-loop verification processes, making it foundational infrastructure for enterprise AI deployments.
Twilio’s revenue and earnings jump in the latest quarter
In the quarter ended September 30, 2025, revenue rose 14.7%, to $1.30 billion from $1.13 billion. The company continues to add to its client base, with a growing emphasis on markets outside of North America; it now has 392,000 active customer accounts (up 22.6% from 320,000 a year ago).
Excluding one-time items, Twilio made $1.25 a share in the latest quarter. That was up 22.5%
from $1.02. The big earnings jump came from improved operational efficiencies, as well the higher revenue.
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Note that the company holds a huge cash balance of $2.5 billion. Its long-term debt is just $991.9 million.
In April 2024, Twilio appointed a partner at activist investment firm Sachem Head to its board of directors. It made the move in the face of pressure from several activist investment firms looking for significant changes.
Twilio’s outlook is positive, and the activist pressure only serves to highlight the company’s potential.
Meantime, Twilio’s impressive customer base, leading products and high R&D (over 23% of sales) all bode well for the company’s future success in rapidly growing markets. That includes spending to expand its Twilio CustomerAI technology. The hi-tech offering combines AI with real-time customer data flowing through Twilio’s Customer Engagement Platform.
Recommendation in Power Growth Investor: Twilio Inc. is a buy.
