Adjusted EBITDA was $237 million with a margin of 79%, up from 71% in Q2 last year.
Annualized recurring revenue (ARR) increased 44% year-over-year to an all-time high of $553 million.
Cash from operations was $105 million, resulting in free cash flow of $92 million.
Consumer Electronics (CE) and IoT revenue increased 175% in Q2 to about $65 million, driven by the HP agreement.
Non-GAAP EPS reached an all-time high of $6.52, well above guidance range of $2.67 to $2.90.
Q2 revenue was $300 million, exceeding the top end of guidance of $170 million, driven by the Samsung arbitration award and HP license agreement.
Returned $42 million to shareholders in Q2 through $26 million in buybacks and $16 million in dividends, with nearly $90 million returned year-to-date.
Smartphone program ARR grew 58% year-over-year to $465 million, nearing the $500 million target by 2027.
Communications segment revenue was $1.153 billion, up 14% year-over-year, with messaging growth accelerating for the fourth consecutive quarter and double-digit voice growth for the first time in two years.
Free cash flow was a record $263 million for the quarter.
GAAP income from operations was $37 million, marking the third consecutive quarter of GAAP operating profitability.
Non-GAAP gross profit was $623 million, up 8% year-over-year, with a gross margin of 50.7%, down 260 basis points year-over-year due to messaging mix, increased carrier fees, and FX impacts.
Non-GAAP income from operations reached a record $221 million, up 26% year-over-year, with a non-GAAP operating margin of 18%.
Segment revenue was flat at $75 million year-over-year but achieved non-GAAP income from operations of $6 million, surpassing the breakeven target.
Stock-based compensation was 12.1% of revenue, slightly up quarter-over-quarter but down year-over-year.
Twilio reported record Q2 2025 revenue of $1.228 billion, up 13% year-over-year on both reported and organic bases.
Twilio repurchased $177 million of shares in Q2, totaling $307 million year-to-date.
Dafinchi