TWLO Technology

Twilio Inc.

$213.77+2.97%

Price as of close on Nov 3, 2026 · Financials updated Sep 30, 2026

Basics

Sector: Technology
Industry: Software - Infrastructure
Country: United States
Market cap: 32.8B USD
Enterprise value: 35.9B USD
Full-time employees: 5,492

Overall health

Strength: growing faster than most peersgrowing faster than peers
Strength: lower risk than most peers: more short-term liquiditylower risk: more liquidity
Drawback: its share price swings more than most peers’ (beta 1.41 vs a peer median of 0.87)bigger price swings (beta 1.41 vs peers 0.87)
About average: valuation

Ranks #201 of 1,612 technology companies (top 13%)

See how it ranks against its peers

Worth knowing

Profit looks boosted by one-off gains. Reported profit is 2.2× operating cash profit (EBITDA), lifted by income outside the core business.Reported profit is 2.2× operating cash profit, lifted by income outside the core business.
Twilio's reported profit is 2.2× its operating cash profit (EBITDA), which is unusual: normally it's the other way round. Income outside the core business, such as interest on a large cash pile, gains on investments or asset sales, or tax items, has lifted net income, so its earnings-based valuation may look cheaper than the business alone justifies.Twilio's reported profit is 2.2× its operating cash profit, which is unusual: normally it's the other way round. Income outside the core business, such as interest on a large cash pile, gains on investments or asset sales, or tax items, has lifted net income, so its earnings-based valuation may look cheaper than the business alone justifies.
Returning more cash than it generates. Paid out $3.9B vs $2.1B of free cash flow over the 3 fiscal years to 2025.
Twilio returned $3.9B to shareholders over three years, 184% of the free cash flow it produced. That gap has to be covered by cash reserves or new debt, which can't last indefinitely.
Stock-based pay is a large cost. Stock pay was 12% of revenue in 2025.
Twilio paid employees $600M in stock in 2025, 12% of its $5.1B revenue. It doesn't use cash, so it flatters cash flow, but it is a real cost to shareholders through dilution.
Operating margin at a 6-year high. 3.1% in 2025, the best of the last 6 years.
Twilio kept 3.1% of revenue as operating profit in 2025, its highest in the 6 years of filings we have.

StockQuotient Score

70/ 100▲ 1 since Oct 27 close

Oct 5 69 → Nov 4 70 (+1)

Valuation

Is the price right?

41/100

Moderate▲ 3 since Oct 27 close

3/3 inputs reported · High confidence

Since last quarter: No major changeValuation also moves with the share price every day.

Why it changed since the Oct 27, 2026 close: Score 38 → 41

Share price -16.0%+4
Peer companies moved-1

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Mixed versus peers:

▲ Earnings yield
▼ EBITDA yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield3.5%

SEC filings · 12 months to Jun 2026Reported value30% base weight · Z-score 0.56Sector median: 0.0225 · MAD: 0.0225

EBITDA yield1.4%

SEC filings · 12 months to Jun 2026Reported value50% base weight · Z-score -0.77Sector median: 0.0423 · MAD: 0.0361

Free cash flow yield3.0%

Yahoo Finance fallback · SEC cash flow or share count unavailable · trailing 12 months · operating cash flow − capital spendingReported value20% base weight · Z-score 0.10Sector median: 0.0274 · MAD: 0.0274

Other data (not scored)

Book yield27.3%

SEC filings · latest balance sheetReported valueInformational · 0% composite weightSector median: 0.3292 · MAD: 0.1754

Growth

Is it growing?

96/100

Strong

3/3 inputs reported · High confidence

Since last quarter: ▲ Stronger

12-month revenue up 5.1%

Why

Stronger than most peers on:

▲ EPS growth
▲ Revenue growth
▲ 3-yr revenue

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growth5459.4%

SEC filings · 12 months to Jun 2026Outlier capped at sector 5th/95th percentile33% base weight · Z-score 9.19Sector median: 0.1108 · MAD: 0.3050

3-year revenue growth11.2%

SEC filings · 3 years to Jun 2026Reported value33% base weight · Z-score 0.80Sector median: 0.0483 · MAD: 0.0793

Revenue growth17.8%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.91Sector median: 0.0853 · MAD: 0.1017

Profitability

Does it earn well?

60/100

Moderate▼ 1 since Oct 27 close

3/3 inputs reported · High confidence

Since last quarter: No major change

Why it changed since the Oct 27, 2026 close: Score 61 → 60

Peer companies moved-1

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Stronger than most peers on:

▲ ROA

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin5.2%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -0.16Sector median: 0.0631 · MAD: 0.0710

Return on assets10.6%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 2.12Sector median: 0.0293 · MAD: 0.0362

Return on invested capital2.5%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -0.50Sector median: 0.0676 · MAD: 0.0857

Other data (not scored)

Gross margin48.5%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.3343 · MAD: 0.1632

Return on equity12.8%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.0753 · MAD: 0.0889

Risk

Debt, liquidity, price swings

Lower

Lower relative risk

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Stronger than most peers on:

▲ Current ratio
▲ Debt / equity

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta1.41

Yahoo Finance · 5-year monthly beta vs the marketReported value33% base weight · Z-score -1.44Sector median: 0.8710 · MAD: 0.3700

Current ratio4.62×

SEC filings · latest balance sheetReported value33% base weight · Z-score 4.08Sector median: 1.8295 · MAD: 0.6848

Debt / equity0.11×

SEC filings · latest balance sheetReported value33% base weight · Z-score 0.61Sector median: 0.2495 · MAD: 0.2270

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about Twilio

Is Twilio getting weaker?: Its latest SEC filing (Aug 7, 2026) showed no major changes. Its overall score is 70/100, up 1 since Oct 28, 2026.
How is Twilio valued vs its peers?: Priced about in line with its peers. Valuation scores 41/100 against 1,711 technology peers. Earnings yield 3.5% vs a peer median of 2.2% (stronger than 63% of peers).Earnings yield 3.5% vs peers 2.2% (stronger than 63% of peers). EBITDA yield 1.4% vs a peer median of 4.2% (weaker than 73% of peers).EBITDA yield 1.4% vs peers 4.2% (weaker than 73% of peers).
Is Twilio growing?: Yes, faster than most of its peers. Growth scores 96/100 against 1,711 technology peers. Earnings per share growth 5459.4% vs a peer median of 11.1% (stronger than 96% of peers).Earnings per share growth 5459.4% vs peers 11.1% (stronger than 96% of peers).
How profitable is Twilio?: More profitable than most of its peers. Profitability scores 60/100 against 1,711 technology peers. Return on assets 10.6% vs a peer median of 2.9% (stronger than 87% of peers).Return on assets 10.6% vs peers 2.9% (stronger than 87% of peers). Return on invested capital 2.5% vs a peer median of 6.8% (weaker than 65% of peers).Return on invested capital 2.5% vs peers 6.8% (weaker than 65% of peers).
How risky is Twilio?: Lower risk relative to 1,711 technology peers, judged on debt, liquidity and share-price swings. Current ratio 4.62× vs a peer median of 1.83× (stronger than 88% of peers).Current ratio 4.62× vs peers 1.83× (stronger than 88% of peers). Beta 1.41 vs a peer median of 0.87 (weaker than 80% of peers).Beta 1.41 vs peers 0.87 (weaker than 80% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended Jun 30, 2026 · filed Aug 7, 2026 · compared with the quarter ended Mar 31, 2026

No major changes

	Previous quarter	Latest quarter	Change
Revenue (12 months)	5.3B USD	5.6B USD	+5.1%
Net income (12 months)	104.1M USD	1.1B USD	+1003.4%
Operating margin	4.6%	5.2%	+0.6 pts
Debt	992.7M USD	993.2M USD	+0.0%
Cash	542.0M USD	823.3M USD	+51.9%
Shares outstanding	151.8M	153.6M	+1.2%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Industry valuation context

Industry: Software - Infrastructure · 71 companies

Valuations in Software - Infrastructure are above their usual range since 2016.

61% of months since 2016 were valued lower than now.
22% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values +19% and earnings +22% (medians): prices and earnings moved broadly together.
Median price-to-sales is +97% vs the whole market, against a usual +103%.

2016Shaded: most expensive fifth of its range2026

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025	Change
Gross margin	48.9%	47.4%	49.2%	51.1%	48.9%	▼ 2.2 pts
Operating margin	-32.2%	-31.5%	-21.1%	-1.2%	3.1%	▲ 4.3 pts
Net margin	-33.4%	-32.8%	-24.4%	-2.5%	0.7%	▲ 3.1 pts
Return on assets (ROA)	-7.3%	-10.0%	-8.7%	-1.1%	0.3%	▲ 1.5 pts
Return on equity (ROE)	-8.6%	-11.9%	-10.4%	-1.4%	0.4%	▲ 1.8 pts
Free cash flow margin	-3.7%	-7.5%	9.7%	15.9%	19.7%	▲ 3.8 pts
Current ratio	8.43×	6.17×	6.64×	4.20×	4.03×	▼ 4.1%
Debt to equity	0.09×	0.09×	0.10×	0.12×	0.13×	▲ 1.9%

TWLO price history

Price history is added with the daily price update and will appear after the next one.

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Bringing the fundamentals into focus…

Overall health

Strength: growing faster than most peersgrowing faster than peers

Strength: lower risk than most peers: more short-term liquiditylower risk: more liquidity

Drawback: its share price swings more than most peers’ (beta 1.41 vs a peer median of 0.87)bigger price swings (beta 1.41 vs peers 0.87)

About average: valuation

Ranks #201 of 1,612 technology companies (top 13%)

See how it ranks against its peers

Worth knowing

Profit looks boosted by one-off gains. Reported profit is 2.2× operating cash profit (EBITDA), lifted by income outside the core business.Reported profit is 2.2× operating cash profit, lifted by income outside the core business.

Twilio's reported profit is 2.2× its operating cash profit (EBITDA), which is unusual: normally it's the other way round. Income outside the core business, such as interest on a large cash pile, gains on investments or asset sales, or tax items, has lifted net income, so its earnings-based valuation may look cheaper than the business alone justifies.Twilio's reported profit is 2.2× its operating cash profit, which is unusual: normally it's the other way round. Income outside the core business, such as interest on a large cash pile, gains on investments or asset sales, or tax items, has lifted net income, so its earnings-based valuation may look cheaper than the business alone justifies.

Returning more cash than it generates. Paid out $3.9B vs $2.1B of free cash flow over the 3 fiscal years to 2025.

Twilio returned $3.9B to shareholders over three years, 184% of the free cash flow it produced. That gap has to be covered by cash reserves or new debt, which can't last indefinitely.

Stock-based pay is a large cost. Stock pay was 12% of revenue in 2025.

Twilio paid employees $600M in stock in 2025, 12% of its $5.1B revenue. It doesn't use cash, so it flatters cash flow, but it is a real cost to shareholders through dilution.

Operating margin at a 6-year high. 3.1% in 2025, the best of the last 6 years.

Twilio kept 3.1% of revenue as operating profit in 2025, its highest in the 6 years of filings we have.

Questions investors ask about Twilio

Is Twilio getting weaker?

Its latest SEC filing (Aug 7, 2026) showed no major changes. Its overall score is 70/100, up 1 since Oct 28, 2026.

How is Twilio valued vs its peers?

Priced about in line with its peers. Valuation scores 41/100 against 1,711 technology peers. Earnings yield 3.5% vs a peer median of 2.2% (stronger than 63% of peers).Earnings yield 3.5% vs peers 2.2% (stronger than 63% of peers). EBITDA yield 1.4% vs a peer median of 4.2% (weaker than 73% of peers).EBITDA yield 1.4% vs peers 4.2% (weaker than 73% of peers).

Is Twilio growing?

Yes, faster than most of its peers. Growth scores 96/100 against 1,711 technology peers. Earnings per share growth 5459.4% vs a peer median of 11.1% (stronger than 96% of peers).Earnings per share growth 5459.4% vs peers 11.1% (stronger than 96% of peers).

How profitable is Twilio?

More profitable than most of its peers. Profitability scores 60/100 against 1,711 technology peers. Return on assets 10.6% vs a peer median of 2.9% (stronger than 87% of peers).Return on assets 10.6% vs peers 2.9% (stronger than 87% of peers). Return on invested capital 2.5% vs a peer median of 6.8% (weaker than 65% of peers).Return on invested capital 2.5% vs peers 6.8% (weaker than 65% of peers).

How risky is Twilio?

Lower risk relative to 1,711 technology peers, judged on debt, liquidity and share-price swings. Current ratio 4.62× vs a peer median of 1.83× (stronger than 88% of peers).Current ratio 4.62× vs peers 1.83× (stronger than 88% of peers). Beta 1.41 vs a peer median of 0.87 (weaker than 80% of peers).Beta 1.41 vs peers 0.87 (weaker than 80% of peers). A relative measure, not a bankruptcy probability.

Previous quarter

Latest quarter

Change

Revenue (12 months)

5.3B USD

5.6B USD

+5.1%

Net income (12 months)

104.1M USD

1.1B USD

+1003.4%

Operating margin

4.6%

5.2%

+0.6 pts

Debt

992.7M USD

993.2M USD

+0.0%

Cash

542.0M USD

823.3M USD

+51.9%

Shares outstanding

151.8M

153.6M

+1.2%

Key ratios

FY 2021

FY 2022

FY 2023

FY 2024

FY 2025

Change

Gross margin

48.9%

47.4%

49.2%

51.1%

48.9%

▼ 2.2 pts

Operating margin

-32.2%

-31.5%

-21.1%

-1.2%

3.1%

▲ 4.3 pts

Net margin

-33.4%

-32.8%

-24.4%

-2.5%

0.7%

▲ 3.1 pts

Return on assets (ROA)

-7.3%

-10.0%

-8.7%

-1.1%

0.3%

▲ 1.5 pts

Return on equity (ROE)

-8.6%

-11.9%

-10.4%

-1.4%

0.4%

▲ 1.8 pts

Free cash flow margin

-3.7%

-7.5%

9.7%

15.9%

19.7%

▲ 3.8 pts

Current ratio

8.43×

6.17×

6.64×

4.20×

4.03×

▼ 4.1%

Debt to equity

0.09×

0.10×

0.12×

0.13×

▲ 1.9%