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Twilio Announces First Quarter 2026 Results

• Revenue of$1.41 billion, up 20% reported and 16% organic year-over-year
• GAAP gross profit of $684 million, up 18% year-over-year
• Non-GAAP gross profit of $697 million, up 16% year-over-year
• GAAP Income from Operations of $108 million
• Non-GAAP Income from Operations of $279 million

SAN FRANCISCO–(BUSINESS WIRE)–
Twilio (NYSE: TWLO), the customer engagement platform that drives real-time, personalized experiences for today’s leading brands, reported financial results for its first quarter ended March 31, 2026.

“Q1 was a milestone quarter for Twilio, marked by our highest revenue and gross profit growth rates in more than three years,” said Khozema Shipchandler, CEO of Twilio. “Twilio’s performance is the result of a multi-year, companywide evolution that fundamentally transformed Twilio’s innovation velocity, GTM efficiency, and financial rigor and has led us to become a foundational infrastructure layer in the era of AI.”

First Quarter 2026 Financial Highlights

• Revenue of $1.41 billion, up 20% year-over-year. Organic revenue growth was 16% year-over-year.

• GAAP gross profit of $684.2 million, up 18% year-over-year.

• Non-GAAP gross profit of $697.5 million, up 16% year-over-year.

• GAAP income from operations of $107.7 million, up 366% year-over-year.

• Non-GAAP income from operations of $278.9 million, up 31% year-over-year.

• GAAP net income per share attributable to common stockholders, diluted, of $0.57 based on 157.8 million weighted average shares outstanding, compared with GAAP net income per share attributable to common stockholders, diluted, of $0.12 based on 161.8 million weighted average shares outstanding in the first quarter of 2025.

• Non-GAAP net income per share attributable to common stockholders, diluted, of $1.50 based on 157.8 million non-GAAP weighted average shares outstanding, compared with non-GAAP net income per share attributable to common stockholders, diluted, of $1.14 based on 161.8 million non-GAAP weighted average shares outstanding in the first quarter of 2025.

• Net cash provided by operating activities of $153.2 million and free cash flow of $132.3 million, compared with net cash provided by operating activities of $191.0 million and free cash flow of $178.3 million for the first quarter of 2025.

Key Metrics

• Dollar-Based Net Expansion Rate of 114% for the first quarter of 2026 compared to Dollar-Based Net Expansion Rate of 107% for the first quarter of 2025.

• 5,558 employees as of March 31, 2026.

Dollars in millions, except per share amounts	Q1 2026 Results
Revenue	$1,407
Y/Y Revenue Growth	20%
Y/Y Organic Revenue Growth	16%
	Amount	Margin	Y/Y Growth
GAAP gross profit	$684	49%	18%
Non-GAAP gross profit	$697	50%	16%
GAAP income from operations	$108	8%	366%
Non-GAAP income from operations	$279	20%	31%
Net cash provided by operating activities	$153	11%
Free cash flow	$132	9%
GAAP net income attributable to common stockholders	$90
Non-GAAP net income attributable to common stockholders	$236
GAAP net income per share attributable to common stockholders, diluted	$0.57
Non-GAAP net income per share attributable to common stockholders, diluted	$1.50

Share Repurchase Program

In January 2025, Twilio’s Board of Directors authorized a share repurchase program pursuant to which Twilio may repurchase up to $2.0 billion in aggregate value of its outstanding Class A common stock (“common stock”). The program is set to expire on December 31, 2027. During the first quarter of 2026, Twilio repurchased $253.4 million in aggregate value of shares of common stock. To date, Twilio has completed approximately $1.1 billion of aggregate repurchases and has $892.0 million of the originally authorized amount available for future repurchases as of March 31, 2026.

Outlook

For the second quarter ended June 30, 2026, Twilio is initiating a revenue range of $1.420 to $1.430 billion, which implies a reported revenue growth range of 15.5% to 16.5% and an organic revenue growth range of 10% to 11% year-over-year. In addition, Twilio is initiating a second quarter non-GAAP income from operations range of $250 to $260 million. Lastly, Twilio expects second quarter non-GAAP diluted earnings per share in a range of $1.27 to $1.32, based on non-GAAP weighted average diluted shares outstanding of 157 million.

Dollars and shares in millions, except per share amounts		Q2 2026 Guidance
Revenue		$1,420 – $1,430
Y/Y Revenue Growth		15.5% – 16.5%
Y/Y Organic Revenue Growth		10% – 11%
Non-GAAP income from operations		$250 – $260
Non-GAAP diluted earnings per share (1)		$1.27 – $1.32
Non-GAAP weighted average diluted shares outstanding		157

(1)

Non-GAAP diluted earnings per share guidance assumes no impact from volatility of foreign exchange rates.

For fiscal year 2026, Twilio is raising its reported revenue growth range to 14% to 15% compared with 11.5% to 12.5% previously, and its organic revenue growth range to 9.5% to 10.5% year-over-year compared with 8% to 9% previously. In addition, Twilio expects full-year non-GAAP gross profit growth to be similar to its organic revenue growth range. Lastly, Twilio is raising its 2026 non-GAAP income from operations range to $1.08 billion to $1.10 billion compared to $1.04 billion to $1.06 billion previously, and raising its 2026 free cash flow range to $1.08 billion to $1.10 billion compared to $1.04 billion to $1.06 billion previously.

Dollars in millions		FY26 Guidance
Y/Y Revenue Growth		14% – 15%
Y/Y Organic Revenue Growth		9.5% – 10.5%
Non-GAAP income from operations		$1,080 – $1,100
Free cash flow		$1,080 – $1,100

Conference Call Information

Twilio is hosting a Q&A conference call today, April 30, 2026, to discuss its first quarter 2026 financial results. The conference call will begin at 2:00 p.m. (PT) / 5:00 p.m. (ET), and investors and analysts should register for the webcast in advance by visiting https://edge.media-server.com/mmc/p/sfj2jo9i. The live webcast of the conference call, as well as a replay, and Twilio’s supplemental earnings presentation, will be available on the investor relations website.

Twilio uses its investor relations website, its X feed (@twilio) and its LinkedIn page as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

About Twilio Inc.

Today’s leading companies trust Twilio’s Customer Engagement Platform (CEP) to build direct, personalized relationships with their customers everywhere in the world. Twilio enables companies to use communications and data to add intelligence and security to every step of the customer journey, from sales to marketing to growth, customer service and many more engagement use cases in a flexible, programmatic way. Across 180 countries and territories, millions of developers and hundreds of thousands of businesses use Twilio to create magical experiences for their customers. For more information about Twilio (NYSE: TWLO) visit www.twilio.com.

Forward-Looking Statements

This press release and the accompanying conference call contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “can,” “will,” “would,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “forecasts,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements contained in this press release and the accompanying conference call include, but are not limited to, statements about: our future financial and operating performance and outlook, including our expected financial and operating results, guidance and targets, including the assumptions underlying such guidance and targets; our anticipated strategies and business plans and our ability to successfully execute them; our ability to drive growth, profitability and free cash flow; our ability to maintain cost discipline and drive operating leverage; future investments and expenses; our expectations regarding carrier fees, and our related actions, and the impact of such fees on our financial and operating performance, including guidance; our expectations regarding our margins, including regarding price actions, product mix and growth in higher-margin products; our expectations regarding capital returns to shareholders, including share repurchases; our expectations regarding revenue from ISVs and self-serve customers; our expectations regarding our cross-sell, upsell and solution selling efforts; our pipeline of new business; the benefits our customers derive from our products; our ability to expand into new and existing markets; our innovation roadmap and the development, release and adoption of our products (and the timing thereof); the effects of our go-to-market efforts to drive profitable growth and capture market share; our expectations related to being a foundational infrastructure layer in the AI era; our expectations regarding our upcoming SIGNAL conference; and our expectations regarding the macroeconomic environment. You should not rely upon forward-looking statements as predictions of future events.

The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to differ materially from those described in the forward-looking statements, including, among other things: the impact of global economic and political conditions and uncertainties; the accuracy of our forecasts and metrics; fluctuations in our results of operations and the levels of our customers’ usage of our platform; our ability to attract and retain customers and expand their usage of our platform; our ability to develop new products and integrate our products with third-party products effectively; our ability to manage our growth and strategic changes to our business; our ability to compete effectively in intensely competitive markets; the occurrence of and our ability to manage cybersecurity breaches and other incidents impacting our networks and systems or those of our third-party service providers; our ability to manage changes in network service provider fees and optimize our network service provider coverage and connectivity; and our compliance with industry standards, laws and regulations.

The forward-looking statements contained in this press release and the accompanying conference call are also subject to additional risks, uncertainties, and factors, including those more fully described in our most recent filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Should any of these risks materialize, or should our assumptions prove to be incorrect, actual financial results could differ materially from our projections or those implied by these forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment, and new risks and uncertainties may emerge that could have an impact on the forward-looking statements contained in this press release and the accompanying conference call.

All forward-looking statements contained in this press release and the accompanying conference call represent our management’s beliefs and assumptions only as of the date such statements are made and we do not assume any obligation to update any forward-looking statements to reflect events or circumstances occurring after the date on which the statements were made, or to reflect new information or the occurrence of unanticipated events, except as required by law.

Non-GAAP Financial Measures

In addition to financial information presented in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release and the accompanying conference call include certain non-GAAP financial measures, including those listed below. We use these non-GAAP financial measures to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that these non-GAAP financial measures may be helpful to investors because they provide consistency and comparability with past financial performance, facilitate period-to-period comparisons of results of operations and assist in comparisons with other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. We believe organic revenue and organic revenue growth are useful in understanding the ongoing results of our operations. We believe free cash flow and free cash flow margin provide useful supplemental information to help investors understand underlying trends in our business and our liquidity.

These non-GAAP financial measures are presented for supplemental informational purposes only, should not be considered substitutes for financial information presented in accordance with GAAP, and may be different from similarly-titled non-GAAP measures used by other companies. A reconciliation of these measures to the most directly comparable GAAP measures is included at the end of this press release. We have not provided the forward-looking GAAP equivalents for certain forward-looking non-GAAP measures presented in this press release and the accompanying conference call, or a GAAP reconciliation, as a result of the uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation expense. Accordingly, a reconciliation of these non-GAAP guidance metrics to their corresponding forward-looking GAAP equivalents is not available without unreasonable effort. However, it is important to note that material changes to reconciling items could have a significant effect on future GAAP results.

Non‑GAAP Gross Profit and Non‑GAAP Gross Margin. For the periods presented, we define non‑GAAP gross profit and non‑GAAP gross margin as GAAP gross profit and GAAP gross margin, respectively, adjusted to exclude stock-based compensation, amortization of acquired intangibles and payroll taxes related to stock-based compensation.

Non‑GAAP Income (Loss) from Operations and Non‑GAAP Operating Margin. For the periods presented, we define non‑GAAP income (loss) from operations and non‑GAAP operating margin as GAAP income (loss) from operations and GAAP operating margin, respectively, adjusted to exclude, as applicable, stock-based compensation, amortization of acquired intangibles, loss on net assets divested, acquisition and divestiture related expenses, payroll taxes related to stock-based compensation, charitable contributions, restructuring costs, impairment of long-lived assets, and gains or losses on lease termination.

Non‑GAAP Net Income Attributable to Common Stockholders and Non‑GAAP Net Income Per Share Attributable to Common Stockholders. For the periods presented, we define non-GAAP net income attributable to common stockholders and non‑GAAP net income per share attributable to common stockholders, diluted (which we refer to as “non-GAAP diluted earnings per share”) as GAAP net income (loss) attributable to common stockholders and GAAP net income (loss) per share attributable to common stockholders, diluted, respectively, adjusted to exclude, as applicable, stock-based compensation, amortization of acquired intangibles, loss on net assets divested, acquisition and divestiture related expenses, losses (gains) on strategic investments, payroll taxes related to stock-based compensation, accretion of debt discount and issuance costs, provision of income tax effects related to non-GAAP adjustments, income tax benefit related to acquisitions, charitable contributions, share of losses from equity method investment, impairment of equity method investment, restructuring costs, impairment of long-lived assets, gains or losses on or impairment of strategic investments, and gains or losses on lease termination.

Organic Revenue. For the periods presented, we define organic revenue as GAAP revenue, excluding (i) revenue from each acquired business and revenue from incremental increases to application-to-person (“A2P”) fees imposed by major U.S. carriers on our core messaging business, in each case until the beginning of the first full quarter following the one-year anniversary of the closing date of such acquisition or the initial date such fees were charged and (ii) revenue from each divested business beginning in the quarter of the closing date of such divestiture; provided that (a) if an acquisition closes or such fees are initially charged on the first day of a quarter, such revenue will be included in organic revenue beginning on the one-year anniversary of the closing date of such acquisition or the initial date such fees were charged and (b) if a divestiture closes on the last day of a quarter, such revenue will be included in organic revenue for that quarter. As used in this definition, A2P fees refers to fees imposed by U.S. mobile carriers for A2P messages delivered to their subscribers, and we pass these fees to our messaging customers at cost.

Organic Revenue Growth. For the periods presented, we calculate organic revenue growth by dividing (i) organic revenue for the period presented less organic revenue in the comparative period by (ii) organic revenue in the comparative period. If revenue from certain acquisitions, divestitures or A2P fees is included or excluded in organic revenue in the period presented, then revenue from the same acquisitions, divestitures and A2P fees is included or excluded in organic revenue in the comparative period for purposes of the organic revenue growth calculation. As a result, organic revenue used in this calculation for the comparative period will not always equal organic revenue reported for the comparative period.

Free Cash Flow and Free Cash Flow Margin. For the periods presented, we define free cash flow as net cash provided by operating activities, excluding capitalized software development costs and purchases of long-lived assets, and we define free cash flow margin as free cash flow divided by revenue.

Operating Metrics

We review a number of operational and financial metrics, including Dollar-Based Net Expansion Rate (“DBNE”), to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. Our DBNE is not based on any standardized industry methodology and is not necessarily calculated in the same manner or comparable to similarly titled measures presented by other companies. Similarly, our DBNE may differ from estimates published by third parties or from similarly titled metrics of our competitors due to differences in methodology. The numbers that we use to calculate DBNE are based on internal data. While these numbers are based on what we believe to be reasonable judgments and estimates for the applicable period of measurement, there are inherent challenges in measuring usage. We regularly review and may adjust our processes for calculating our internal metrics to improve their accuracy. If investors or analysts do not perceive our metrics to be accurate representations of our business, or if we discover material inaccuracies in our metrics, our reputation, business, results of operations, and financial condition would be harmed.

Beginning in the first quarter of 2026, we have discontinued disclosure of Active Customer Accounts as a key metric. As a result, we are revising the definition of DBNE to remove references to Active Customer Accounts and Zipwhip accounts and instead refer to “customer accounts.” The methodology for identifying these customer accounts is unchanged from the methodology most recently used to identify Active Customer Accounts and this definitional update has no impact on our methodology for calculating DBNE or our historical or future DBNE.

Dollar-Based Net Expansion Rate. Our DBNE compares the total revenue in a quarter from all individual customer accounts, as identified by a unique account identifier, for which we have recognized at least $5 of revenue in the last month of the quarter, to revenue from those same accounts in the same quarter in the prior year. A single customer organization may constitute multiple unique customer accounts if it has multiple account identifiers. To calculate DBNE, we first identify the cohort of such customer accounts in the same quarter of the prior year. DBNE is the quotient obtained by dividing the revenue generated from that cohort in a quarter, by the revenue generated from that same cohort in the corresponding quarter in the prior year. When we calculate DBNE for periods longer than one quarter, we use the average of the applicable quarterly DBNEs for each of the quarters in such period. Revenue from acquisitions does not impact the DBNE calculation until the quarter following the one-year anniversary of the applicable acquisition, unless the acquisition closing date is the first day of a quarter. Revenue from divestitures does not impact the DBNE calculation beginning in the quarter the divestiture closed, unless the divestiture closing date is the last day of a quarter.

We believe that measuring DBNE provides an important indication of the performance of our efforts to increase revenue from existing customers. Our ability to drive growth and generate incremental revenue depends, in part, on our ability to maintain and grow our relationships with existing customers and to increase their use of the platform. An important way in which we have historically tracked performance in this area is by measuring the DBNE for such customer accounts. Our DBNE increases when these customers increase their usage of a product, extend their usage of a product to new applications or adopt a new product. Our DBNE decreases when these customers cease or reduce their usage of a product or when we lower usage prices on a product. As our customers grow their businesses and extend the use of our platform, they sometimes create multiple customer accounts with us for operational or other reasons. As such, when we identify a significant customer organization (defined as a single customer organization generating more than 1% of revenue in a quarterly reporting period) that has created a new customer account, this new account is tied to, and revenue from this new account is included with, the original customer account for the purposes of calculating this metric.

Source: Twilio Inc.

TWILIO INC. Condensed Consolidated Statements of Operations (In thousands, except share and per share amounts) (Unaudited)
		Three Months Ended March 31,
		2026				2025
Revenue		$	1,406,907			$	1,172,463
Cost of revenue			722,663				590,896
Gross profit			684,244				581,567
Operating expenses:
Research and development			262,166				254,295
Sales and marketing			211,866				212,113
General and administrative			102,546				92,077
Total operating expenses			576,578				558,485
Income from operations			107,666				23,082
Other (expenses) income, net:
Share of losses from equity method investment			(27,223	)			(19,471	)
Other income, net			21,789				22,973
Total other (expenses) income, net			(5,434	)			3,502
Income before provision for income taxes			102,232				26,584
Provision for income taxes			(12,093	)			(6,567	)
Net income attributable to common stockholders		$	90,139			$	20,017
Net income per share attributable to common stockholders:
Basic		$	0.59			$	0.13
Diluted		$	0.57			$	0.12
Weighted-average shares used to compute net income per share attributable to common stockholders:
Basic			152,424,306				153,345,192
Diluted			157,759,141				161,794,287

TWILIO INC. Condensed Consolidated Balance Sheets (In thousands) (Unaudited)
		As of March 31,				As of December 31,
		2026				2025
ASSETS
Current assets:
Cash and cash equivalents		$	541,976			$	682,335
Short-term marketable securities			1,804,286				1,788,007
Accounts receivable, net			710,516				636,736
Prepaid expenses and other current assets			390,041				469,650
Total current assets			3,446,819				3,576,728
Property and equipment, net			181,388				176,963
Operating right-of-use assets			29,561				39,031
Equity method investment			275,093				301,642
Intangible assets, net			125,399				142,065
Goodwill			5,292,457				5,291,787
Other long-term assets			226,088				242,674
Total assets		$	9,576,805			$	9,770,890
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	91,706			$	85,089
Accrued expenses and other current liabilities			456,931				608,119
Deferred revenue and customer deposits			159,569				158,677
Operating lease liability, current			32,119				35,123
Total current liabilities			740,325				887,008
Operating lease liability, noncurrent			43,290				54,162
Long-term debt, net			992,722				992,287
Other long-term liabilities			16,384				15,887
Total liabilities			1,792,721				1,949,344
Commitments and contingencies
Stockholders’ equity:
Preferred stock			—				—
Common stock			152				152
Additional paid-in capital			16,294,528				16,148,190
Accumulated other comprehensive (loss) income			(4,317	)			15,668
Accumulated deficit			(8,506,279	)			(8,342,464	)
Total stockholders’ equity			7,784,084				7,821,546
Total liabilities and stockholders’ equity		$	9,576,805			$	9,770,890

TWILIO INC. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)
		Three Months Ended March 31,
		2026				2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		$	90,139			$	20,017
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			34,167				49,565
Non-cash reduction to the right-of-use asset			4,715				5,170
Net amortization of investment premium and discount			(2,122	)			(4,314	)
Stock-based compensation			136,511				139,273
Amortization of deferred commissions			17,139				19,265
Unrealized (gains) losses on marketable equity securities			(4,795	)			750
Share of losses from equity method investment			27,223				19,471
Other adjustments			10,426				7,549
Changes in operating assets and liabilities:
Accounts receivable			(74,869	)			8,463
Prepaid expenses and other current assets			75,414				33,519
Other long-term assets			(3,175	)			(9,416	)
Accounts payable			6,502				7,853
Accrued expenses and other current liabilities			(155,755	)			(94,262	)
Deferred revenue and customer deposits			892				(1,634	)
Operating lease liabilities			(9,096	)			(10,306	)
Other long-term liabilities			(110	)			79
Net cash provided by operating activities			153,206				191,042
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions, net of cash acquired and payments related to prior period acquisitions			(685	)			—
Purchases of marketable securities and other investments			(353,288	)			(213,844	)
Proceeds from sales and maturities of marketable securities and other investments			333,644				207,431
Capitalized software development costs			(16,708	)			(11,564	)
Purchases of long-lived assets			(4,153	)			(1,163	)
Net cash used in investing activities			(41,190	)			(19,140	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on finance leases			(64	)			(2,251	)
Value of equity awards withheld for tax liabilities			(42	)			(53	)
Repurchases of shares of Class A common stock and related costs			(253,027	)			(126,256	)
Proceeds from exercises of stock options			559				2,766
Net cash used in financing activities			(252,574	)			(125,794	)
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH			(140,558	)			46,108
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period			682,534				431,437
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period		$	541,976			$	477,545

TWILIO INC. Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (In thousands, except shares, per share amounts and percentages) (Unaudited)
		Three Months Ended March 31,
		2026				2025
GAAP gross profit		$	684,244			$	581,567
GAAP gross profit growth (Y/Y)			18	%
GAAP gross margin			49	%			50	%
Non-GAAP adjustments:
Stock-based compensation			3,374				4,271
Amortization of acquired intangibles			9,356				15,682
Payroll taxes related to stock-based compensation			522				482
Non-GAAP gross profit		$	697,496			$	602,002
Non-GAAP gross profit growth (Y/Y)			16	%
Non-GAAP gross margin			50	%			51	%

		Three Months Ended March 31,
		2026				2025
GAAP income from operations		$	107,666			$	23,082
GAAP income from operations growth (Y/Y)			366	%
GAAP operating margin			8	%			2	%
Non-GAAP adjustments:
Stock-based compensation			136,428				137,520
Amortization of acquired intangibles			16,617				27,139
Acquisition related expenses			122				—
Payroll taxes related to stock-based compensation			11,926				11,200
Charitable contributions			3,445				2,776
Restructuring costs			2,223				11,691
Loss on lease termination			500				—
Non-GAAP income from operations		$	278,927			$	213,408
Non-GAAP income from operations growth (Y/Y)			31	%
Non-GAAP operating margin			20	%			18	%

		Three Months Ended March 31,
		2026				2025
GAAP net income attributable to common stockholders		$	90,139			$	20,017
Non-GAAP adjustments:
Stock-based compensation			136,428				137,520
Amortization of acquired intangibles			16,617				27,139
Acquisition and divestiture related expenses			122				—
Payroll taxes related to stock-based compensation			11,926				11,200
Accretion of debt discount and issuance costs			435				419
Provision of income tax effects related to non-GAAP adjustments			(54,612	)			(45,318	)
Charitable contributions			3,445				2,776
Share of losses from equity method investment			27,223				19,471
Restructuring costs			2,223				11,691
Losses (gains) on strategic investments, net			2,052				(959	)
Loss on lease termination			500				—
Non-GAAP net income attributable to common stockholders		$	236,498			$	183,956

TWILIO INC. Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (In thousands, except shares, per share amounts and percentages) (Unaudited)
		Three Months Ended March 31,
		2026				2025
GAAP net income per share attributable to common stockholders, diluted*		$	0.57			$	0.12
Non-GAAP adjustments:
Stock-based compensation			0.86				0.85
Amortization of acquired intangibles			0.11				0.17
Acquisition related expenses			—				—
Payroll taxes related to stock-based compensation			0.08				0.07
Accretion of debt discount and issuance costs			—				—
Provision of income tax effects related to non-GAAP adjustments			(0.35	)			(0.28	)
Charitable contributions			0.02				0.02
Share of losses from equity method investment			0.17				0.12
Restructuring costs			0.01				0.07
Losses (gains) on strategic investments, net			0.01				(0.01	)
Loss on lease termination			—				—
Non-GAAP net income per share attributable to common stockholders, diluted		$	1.50			$	1.14
Weighted-average shares used to compute non-GAAP net income per share attributable to common stockholders, diluted			157,759,141				161,794,287
* Some columns may not add due to rounding

TWILIO INC. Reconciliation to Non-GAAP Financial Measures (In thousands, except percentages) (Unaudited)
		Three Months Ended March 31,
		2026
Organic Revenue
GAAP Revenue		$	1,406,907
A2P Revenue			(46,077	)
Acquisition Revenue			(1,646	)
Organic Revenue		$	1,359,184
GAAP Revenue Y/Y Growth			20	%
Organic Revenue Y/Y Growth			16%1

¹ Organic revenue for the three months ended March 31, 2025, when used as the denominator for Organic Revenue Growth for the three months ended March 31, 2026, is equal to reported revenue. Revenue for the three months ended March 31, 2025 was $1.17 billion.

		Three Months Ended March 31,
		2026				2025
Free cash flow
Net cash provided by operating activities		$	153,206			$	191,042
Operating cash flow margin			11	%			16	%
Non-GAAP adjustments:
Capitalized software development costs			(16,708	)			(11,564	)
Purchase of long-lived assets			(4,153	)			(1,163	)
Free cash flow		$	132,345			$	178,315
Free cash flow margin			9	%			15	%
Net cash used in investing activities		$	(41,190	)		$	(19,140	)
Net cash used in financing activities		$	(252,574	)		$	(125,794	)

TWILIO INC. Supplemental Stock-Based Compensation Expense Information (In thousands) (Unaudited)
		Three Months Ended March 31,
		2026				2025
		(In thousands)
Stock-Based Compensation Expense
Cost of revenue		$	3,374			$	4,271
Research and development			73,011				78,066
Sales and marketing			31,149				31,359
General and administrative			28,977				25,577
Total		$	136,511			$	139,273
Stock-Based Compensation Expense as a % of Revenue			10	%			12	%

 

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KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Software Technology Data Management Security

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Universal Display Corporation Announces First Quarter 2026 Financial Results

EWING, N.J.–(BUSINESS WIRE)–Universal Display Corporation (Nasdaq: OLED), a global leader in energy-efficient OLED technologies and materials, today reported financial results for the first quarter ended March 31, 2026.

“We continue to see the OLED market as a compelling long-term growth opportunity, supported by expanding adoption, evolving architectures, and continued industry investment,” said Brian Millard, Chief Financial Officer of Universal Display Corporation. “While near-term market conditions have become more measured, we remain focused on execution and long-term value creation. That focus is supported by our deep and long-standing customer partnerships and continued innovation across our materials and technology platforms, which positions us well as the industry enters its next phase of growth, including Gen 8.6 capacity additions in Korea and China expected to come online this year. As this growth unfolds, OLED performance requirements continue to rise and architectures evolve, further increasing the importance of materials innovation. We continue to invest in our technology leadership, while leveraging our strong balance sheet and cash flow generation to support future growth and return capital to shareholders in a disciplined manner.”

Financial Highlights for the First Quarter of 2026

• Total revenue in the first quarter of 2026 was $142.2 million as compared to $166.3 million in the first quarter of 2025.

• Revenue from material sales was $83.7 million in the first quarter of 2026 as compared to $86.2 million in the first quarter of 2025. The decrease was primarily due to changes in customer mix and lower unit material volume.

• Revenue from royalty and license fees was $54.2 million in the first quarter of 2026 as compared to $73.6 million in the first quarter of 2025. The decrease was primarily the result of changes in customer mix and lower unit material volume. While customer mix can vary quarter to quarter, we expect the customer mix in subsequent periods of 2026 to have a more favorable impact on royalty and license fees as compared to the first quarter of the year.

• Cost of material sales was $33.0 million in the first quarter of 2026 as compared to $33.9 million in the first quarter of 2025.

• Total gross margin was 75% in the first quarter of 2026 as compared to 77% in the first quarter of 2025.

• Operating income was $42.8 million in the first quarter of 2026 as compared to $69.7 million in the first quarter of 2025.

• The effective income tax rate was 20.7% in the first quarter of 2026 as compared to 19.6% in the first quarter of 2025.

• Net income was $35.9 million or $0.76 per diluted share in the first quarter of 2026 as compared to $64.4 million or $1.35 per diluted share in the first quarter of 2025.

Revenue Comparison

($ in thousands)		Three Months Ended March 31,
		2026				2025
Material sales		$	83,749			$	86,155
Royalty and license fees			54,210				73,569
Contract research services			4,252				6,553
Total revenue		$	142,211			$	166,277

Cost of Materials Comparison

($ in thousands)		Three Months Ended March 31,
		2026				2025
Material sales		$	83,749			$	86,155
Cost of material sales			33,017				33,949
Gross margin on material sales			50,732				52,206
Gross margin as a % of material sales			61	%			61	%

Revised 2026 Guidance

The Company now believes that its 2026 revenue will be in the range of $630 million to $670 million, down from prior guidance of $650 million to $700 million. The OLED industry remains at a stage where many variables can have a material impact on results, and the Company thus caveats its financial guidance accordingly.

Dividend

The Company also announced a second quarter 2026 cash dividend of $0.50 per share on the Company’s common stock. The cash dividend is payable on June 30, 2026 to all shareholders of record as of the close of business on June 16, 2026.

Share Repurchases

The Company repurchased 632,673 shares of common stock for $66.4 million during the three months ended March 31, 2026. During the same period, and inclusive of such purchases, the Company completed the share repurchase program authorized in April 2025, repurchasing a total of 923,883 shares of its common stock for an aggregate purchase price of $100 million.

On April 28, 2026, the Company’s Board of Directors authorized management to repurchase up to an additional $400 million of the Company’s common stock.

Conference Call Information

In conjunction with this release, Universal Display will host a conference call on Thursday, April 30, 2026 at 5:00 p.m. Eastern Time. The live webcast of the conference call can be accessed under the events page of the Company’s Investor Relations website at ir.oled.com. Those wishing to participate in the live call should dial 1-877-524-8416 (toll-free) or 1-412-902-1028. Please dial in 5-10 minutes prior to the scheduled conference call time. An online archive of the webcast will be available within two hours of the conclusion of the call.

About Universal Display Corporation

Universal Display Corporation (Nasdaq: OLED) is a leader in the research, development and commercialization of organic light emitting diode (OLED) technologies and materials for use in display and solid-state lighting applications. Founded in 1994 and with subsidiaries and offices around the world, the Company currently owns, exclusively licenses or has the sole right to sublicense more than 7,000 patents issued and pending worldwide. Universal Display licenses its proprietary technologies, including its breakthrough high-efficiency UniversalPHOLED® phosphorescent OLED technology that can enable the development of energy-efficient and eco-friendly displays and solid-state lighting. The Company also develops and offers high-quality, state-of-the-art UniversalPHOLED materials that are recognized as key ingredients in the fabrication of OLEDs with peak performance. In addition, Universal Display delivers innovative and customized solutions to its clients and partners through technology transfer, collaborative technology development and on-site training. To learn more about Universal Display Corporation, please visit https://oled.com/.

Universal Display Corporation and the Universal Display Corporation logo are trademarks or registered trademarks of Universal Display Corporation. All other Company, brand or product names may be trademarks or registered trademarks.

All statements in this document that are not historical, such as those relating to the projected adoption, development and advancement of the Company’s technologies, and the Company’s expected results, as well as the growth of the OLED market and the Company’s opportunities in that market, are forward-looking financial statements within the meaning of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements in this document, as they reflect Universal Display Corporation’s current views with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated. These risks and uncertainties are discussed in greater detail in Universal Display Corporation’s periodic reports on Form 10-K and Form 10-Q filed with the Securities and Exchange Commission, including, in particular, the section entitled “Risk Factors” in Universal Display Corporation’s Annual Report on Form 10-K for the year ended December 31, 2025. Universal Display Corporation disclaims any obligation to update any forward-looking statement contained in this document.

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UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands, except share and per share data)
		March 31, 2026				December 31, 2025
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	159,352			$	138,353
Short-term investments			357,056				464,004
Accounts receivable			93,629				119,953
Inventory			248,213				240,912
Other current assets			74,028				123,836
Total current assets			932,278				1,087,058
PROPERTY AND EQUIPMENT, net of accumulated depreciation of $196,869 and $189,326			213,146				214,947
ACQUIRED TECHNOLOGY, net of accumulated amortization of $225,627 and $220,392			101,548				56,783
OTHER INTANGIBLE ASSETS, net of accumulated amortization of $13,622 and $13,269			3,666				4,019
GOODWILL			15,535				15,535
INVESTMENTS			419,673				377,034
DEFERRED INCOME TAXES			79,455				79,454
OTHER ASSETS			129,415				128,932
TOTAL ASSETS		$	1,894,716			$	1,963,762
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable		$	17,037			$	23,344
Accrued expenses			40,389				52,564
Deferred revenue			21,038				21,011
Other current liabilities			19,300				11,094
Total current liabilities			97,764				108,013
DEFERRED REVENUE			1,728				1,943
RETIREMENT PLAN BENEFIT LIABILITY			56,911				56,541
OTHER LIABILITIES			34,333				36,246
Total liabilities			190,736				202,743
SHAREHOLDERS’ EQUITY:
Preferred Stock, par value $0.01 per share, 5,000,000 shares authorized, 200,000 shares of Series A Nonconvertible Preferred Stock issued and outstanding (liquidation value of $7.50 per share or $1,500)			2				2
Common Stock, par value $0.01 per share, 200,000,000 shares authorized, 49,039,974 and 48,916,606 shares issued, and 46,750,443 and 47,259,748 shares outstanding, at March 31, 2026 and December 31, 2025, respectively			490				489
Additional paid-in capital			745,385				744,692
Retained earnings			1,102,489				1,090,479
Accumulated other comprehensive (loss) income			(2,567	)			781
Treasury stock, at cost (2,289,531 and 1,656,858 shares at March 31, 2026 and December 31, 2025)			(141,819	)			(75,424	)
Total shareholders’ equity			1,703,980				1,761,019
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	1,894,716			$	1,963,762

UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(in thousands, except share and per share data)
		Three Months Ended March 31,
		2026				2025
REVENUE:
Material sales		$	83,749			$	86,155
Royalty and license fees			54,210				73,569
Contract research services			4,252				6,553
Total revenue			142,211				166,277
COST OF SALES			36,121				38,134
Gross margin			106,090				128,143
OPERATING EXPENSES:
Research and development			35,246				34,900
Selling, general and administrative			20,032				17,014
Amortization of acquired technology and other intangible assets			5,588				4,545
Patent costs			2,369				1,906
Royalty and license expense			104				114
Total operating expenses			63,339				58,479
OPERATING INCOME			42,751				69,664
Interest income, net			8,715				10,074
Other (loss) income, net			(6,173	)			378
Interest and other income, net			2,542				10,452
INCOME BEFORE INCOME TAXES			45,293				80,116
INCOME TAX EXPENSE			(9,397	)			(15,672	)
NET INCOME		$	35,896			$	64,444
NET INCOME PER COMMON SHARE:
BASIC		$	0.76			$	1.35
DILUTED		$	0.76			$	1.35
WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON SHARE:
BASIC			47,078,940				47,567,295
DILUTED			47,205,952				47,689,657
CASH DIVIDENDS DECLARED PER COMMON SHARE		$	0.50			$	0.45

UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
		Three Months Ended March 31,
		2026				2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		$	35,896			$	64,444
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			7,563				6,548
Amortization of intangibles			5,588				4,545
Investment losses (gains), net			2,086				(1,471	)
Impairment of minority investments			415				—
Stock-based compensation			7,554				7,076
Deferred income tax expense (benefit)			3				(3,091	)
Retirement plan expense, net of benefit payments			375				423
Decrease (increase) in assets:
Accounts receivable			26,324				(25,915	)
Inventory			(7,301	)			(14,460	)
Other current assets			39,808				400
Other assets			(483	)			(2,568	)
Increase (decrease) in liabilities:
Accounts payable and accrued expenses			(15,362	)			(13,408	)
Other current liabilities			8,291				16,867
Deferred revenue			(188	)			(8,491	)
Other liabilities			(1,693	)			(337	)
Net cash provided by operating activities			108,876				30,562
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment			(8,605	)			(13,059	)
Purchase of intangibles			(40,000	)			—
Purchases of investments			(116,009	)			(38,772	)
Proceeds from sale and maturity of investments			174,483				110,000
Net cash provided by investing activities			9,869				58,169
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock			578				579
Repurchases of common stock			(67,119	)			—
Payment of withholding taxes related to stock-based compensation to employees			(7,738	)			(9,398	)
Cash dividends paid			(23,467	)			(21,419	)
Net cash used in financing activities			(97,746	)			(30,238	)
INCREASE IN CASH AND CASH EQUIVALENTS			20,999				58,493
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD			138,353				98,980
CASH AND CASH EQUIVALENTS, END OF PERIOD		$	159,352			$	157,473
SUPPLEMENTAL DISCLOSURES:
Unrealized (loss) gain on available-for-sale securities		$	(3,334	)		$	1,320
Common stock issued to Board of Directors and Scientific Advisory Board that was earned and accrued for in a previous period			300				300
Accrued dividends included in other current liabilities and other liabilities			419				124
Net change in accounts payable and accrued expenses related to purchases of property and equipment			2,843				5,487
Cash paid for income taxes, net of refunds			38,376				2,266

 

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Universal Display Contact:

Darice Liu

[email protected]

[email protected]

+1 609-964-5123

KEYWORDS: New Jersey United States North America

INDUSTRY KEYWORDS: Research Professional Services Hardware Consumer Electronics Alternative Energy Energy Technology Semiconductor Science Nanotechnology Audio/Video Finance

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