Twilio Inc (TWLO)
Information Technology · Systems Software · US stock · S&P 500 component
$253.63
▼ -13.05 (4.89%)
Fair valueFair
$245 −3.3% to fair value
$123fair band $209–$297$368
Day's range
$251.00 – $268.21
52-week range
$105.00 – $308.40
About Twilio Inc
Twilio provides a cloud communications platform that lets developers add messaging, voice, video and email to their applications through software interfaces. It also owns Segment, a customer data platform, and SendGrid, an email service. Customers range from start-ups to large enterprises and software companies that use Twilio to contact their own customers. The business is organised around communications and data and applications offerings.
Much of Twilio's revenue comes from usage-based fees, charged per message, call or email, together with some subscriptions. Revenue is $5.6 billion over the last twelve months, growing at 9.8% a year across three years. The operating margin is 5.2%, and the business earns a profit of 4% on the capital invested in it. The company has net debt of -3.7 times EBITDA, meaning it holds more cash than debt, and it pays no dividend. On the site's X-Ray Score it receives 43 out of 100.
TWLO news
Twilio Shares Rise as Coverage Weighs Growth Against ValuationTwilio shares fall about 11% as tech stocks sell off
All TWLO news →Price chart
52-wk range $105.00 – $308.40Volume 2,516,854Daily, split-adjusted
Vitals
Market cap$40.5B
52-week range$105.00 – $308.40
Volume (last day)2,516,854
P/E (TTM)35.1
EBIT / EV yield0.7%
Free-cash-flow yield–
Dividend yieldNo dividend
Revenue (TTM)$5.6B
Net income (TTM)$1.1B
Operating margin5.2%
Return on capital3.6%
Debt incl. leases$993M
Cash & securities$2.7B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$245middle half of models $204 – $257
Fair
−3.3% to fair value
Average of the 10 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is High, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $254
Undervalued < $209Fair $209 – $297Overvalued > $297
P/E multiple
$470
P/B multiple
$191
P/S multiple
$269
EV/EBITDA multiple
$225
EV/EBIT multiple
$235
EV/revenue multiple
$263
10-year DCF, EBITDA exit
$153
5-year DCF, EBITDA exit
$209
10-year DCF, revenue exit
$202
5-year DCF, revenue exit
$237
10-year DCF, growth exit · not used
$34
5-year DCF, growth exit · not used
$33
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Weak business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Information Technology peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Weak
38/100
Expensive against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield0.7%
Fair value vs price1.0×
Growth
Fair
59/100
Growing at a typical pace for its sector.
See the numbers →
Revenue growth (3y)9.8%
Growth consistency100%
Profitability
Weak
13/100
Earns lower returns on its capital than most peers.
See the numbers →
Return on invested capital3.6%
Operating margin5.2%
Gross profitability25.0%
Financial health
Strong
70/100
Balance sheet looks strong: debt is well covered.
See the numbers →
Piotroski F-Score6 / 9
Net debt / EBITDA-3.7×
Interest coverNo interest cost
Dividends
None
–/100
Pays no dividend.
See the numbers →
Quarterly results: last 6 quarters
+12.0%
Mar '25
+13.5%
Jun '25
+14.7%
Sep '25
+14.3%
Dec '25
+20.0%
Mar '26
+22.0%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $1.5B, diluted EPS $6.68.
Compare with peers
MSFT Microsoft Corp61 FTNT Fortinet, Inc.59 GEN Gen Digital Inc.59 NOW ServiceNow, Inc.48Other Systems Software companies by X-Ray Score.
SWOT analysis: Twilio Inc
Strengthsinside the company
- Cash exceeds debt (net debt is negative), which gives room to invest or ride out a downturn.
- Operating profit covers interest 50x, so debt costs are a small drag.
Weaknessesinside the company
- Return on invested capital is only 3.6% (median 6.5% for industry peers), so the business earns little above its cost of capital.
- Operating margin of 5.2% is thin against 21.9% for industry peers.
Opportunitiesvaluation and setting
- Trades at 35.3x earnings, 55% below the 78.8x median of industry peers.
- Our Market Compass rates the backdrop for Information Technology as favourable.
- Price momentum is strong on the weekly and monthly signals (trends can reverse).
Threatsvaluation and setting
- Valuation uncertainty is high: the models give widely different values, so the fair value range is wide.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare TWLO with peers and sector
Medians of 6 Systems Software peers and of 74 Information Technology stocks in our universe.
Largest peers (X-Ray Score): MSFT 61, PANW 33, CRWD 33, NOW 48, FTNT 59, GEN 59.
| Metric | TWLO | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 43 | 54 | 50 |
| Valuation | 37 | 47 | 52 |
| Growth | 59 | 66 | 54 |
| Profitability | 13 | 44 | 50 |
| Financial health | 70 | 33 | 49 |
| Dividends | – | – | 50 |
Sector leaders: highest X-Ray Score in Information Technology
TWLO ranks #55 of 75 in Information Technology and #5 of 7 in Systems Software by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for TWLO
Each factor is rated by where TWLO stands among the 75 Information Technology stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 5 Good · 7 Average · 7 Bad of 19
Growth: 0 · 2 · 0
Profitability: 0 · 1 · 4
Financial strength: 3 · 1 · 0
Valuation: 1 · 2 · 1
Cash flow: 0 · 1 · 2
Efficiency: 1 · 0 · 0
| Factor | TWLO | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +9.8% | Average beats 51% | +9.7% | – | – |
| Revenue growth, last year | +13.7% | Average beats 50% | +13.7% | +13.7% | ≈ In line |
| Profitability | |||||
| Gross margin | 48.5% | Bad beats 32% | 57.8% | 48.9% | ≈ In line |
| Operating margin | 5.2% | Bad beats 7% | 20.3% | -21.1% | ▲ Better |
| Net margin | 20.6% | Average beats 54% | 17.8% | -24.4% | ▲ Better |
| Return on invested capital | 3.6% | Bad beats 6% | 19.4% | – | – |
| Return on equity | 12.8% | Bad beats 28% | 21.0% | -8.6% | ▲ Better |
| Financial strength | |||||
| Net debt / EBITDA | -3.7x | Good beats 99% | 0.8x | – | – |
| Interest cover | 50.0x | Good beats 75% | 23.0x | – | – |
| Current ratio | 4.62 | Good beats 95% | 1.57 | 6.17 | ▼ Worse |
| Piotroski F-score | 6 / 9 | Average beats 43% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 35.3x | Average beats 47% | 33.6x | – | – |
| Price / book | 4.5x | Good beats 81% | 8.3x | 2.3x | ▼ Worse |
| Price / sales | 7.3x | Average beats 49% | 6.9x | 4.0x | ▼ Worse |
| EV / EBITDA | 86.4x | Bad beats 10% | 24.7x | – | – |
| Cash flow | |||||
| Free cash flow margin | 19.0% | Average beats 34% | 22.3% | 10.0% | ▲ Better |
| Cash from operations / net income | 0.92 | Bad beats 15% | 1.39 | – | – |
| Accruals (lower is better) | +0.8% | Bad beats 14% | −4.4% | – | – |
| Efficiency | |||||
| Days sales outstanding | 50 days | Good beats 73% | 63 days | 49 days | ≈ In line |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 4 Good · ● 5 Average · ● 4 BadCash quality
Earnings backed by cashBad
Risk models
Altman Z''Average
Piotroski F-ScoreAverage
Growth
Revenue growth (3y)Average
Growth consistencyGood
Balance sheet
Current ratioGood
Net debt / EBITDAGood
Interest coverGood
Valuation
Fair value vs priceAverage
EBIT / EV yieldBad
Profitability
Return on invested capitalBad
Operating marginBad
Gross profitabilityAverage
Each check is graded against the company's sector, not a fixed number. Checklist score 43/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $2.8B | $3.8B | $4.2B | $4.5B | $5.1B |
| Operating income | −$916M | −$1.2B | −$877M | −$54M | $158M |
| Net income | −$950M | −$1.3B | −$1.0B | −$109M | $34M |
| Operating cash flow | −$58M | −$254M | $415M | $716M | $1.0B |
| Operating margin | -32.2% | -31.5% | -21.1% | -1.2% | 3.1% |
| Free cash flow | −$104M | – | – | – | – |
| Diluted EPS | $-5.45 | $-6.86 | $-5.54 | $-0.66 | $0.21 |
Fiscal years, from SEC filings.
Technical summary
Daily
Neutral
6 bullish · 3 neutral · 7 bearish
Weekly
Strongly bullish
11 bullish · 1 neutral · 0 bearish
Monthly
Strongly bullish
7 bullish · 1 neutral · 0 bearish
Moving averages (daily)
| SMA 10 | 267.9 | Bearish |
| EMA 10 | 265.3 | Bearish |
| SMA 20 | 277.5 | Bearish |
| EMA 20 | 268.0 | Bearish |
| SMA 50 | 254.8 | Bearish |
| EMA 50 | 255.5 | Bearish |
| SMA 100 | 230.5 | Bullish |
| EMA 100 | 232.7 | Bullish |
| SMA 200 | 185.3 | Bullish |
| EMA 200 | 200.5 | Bullish |
Oscillators (daily)
| RSI (14) | 44.74 | Neutral |
| MACD (12, 26) | 0.10 | Bullish |
| Momentum (12) | -9.55 | Bearish |
| Stochastic %K (14) | 23.46 | Neutral |
| Williams %R (14) | -76.54 | Neutral |
| CCI (20) | -115.7 | Bullish |
Pivot points (classic, last session)
S3 229.8 | S2 240.4 | S1 247.0 | Pivot 257.6 | R1 264.2 | R2 274.8 | R3 281.4 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
ETFs that hold TWLO
| ETF | Share of the fund |
|---|---|
| WCLD WisdomTree Cloud Computing | 2.42% |
| SKYY First Trust Cloud Computing | 2.12% |
| JTEK JPMorgan U.S. Tech Leaders | 1.90% |
| MDYG SPDR S&P 400 Mid Cap Growth | 1.66% |
| IJK iShares S&P Mid-Cap 400 Growth | 1.66% |
| VBK Vanguard Small-Cap Growth | 0.88% |
| NULV Nuveen ESG Large-Cap Value | 0.87% |
| SPMD SPDR Russell Small Cap Completeness | 0.86% |
The eight funds with the largest weight in TWLO among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
TWLO SEC filings
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Director or officer change; Shareholder vote results
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
DEF 14ASEC EDGAR
Proxy statement
8-KSEC EDGAR
Director or officer change; Regulation FD disclosure
10-KSEC EDGAR
Annual report
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.