Twilio

TWLO · NYSE · Information Technology · Financials, fiscal 2016 to 2025

TWLO · Last close · October 26, 2026

$263.65

Twilio's revenue rose 13.7% to $5.1 billion in fiscal 2025. Its operating margin was 3.1%, up from −1.2% a year earlier. Free cash flow was $997 million, up 40.6%. It paid out $869 million in dividends and buybacks, 87% of free cash flow. The diluted share count fell 3.7%.

TWILIO INC. Latest fiscal year ended December 31, 2025 10-K filed February 24, 2026 · 0001447669-26-000021 Updated October 9, 2026

Revenue

$5.1B

13.7%

Operating margin

3.1%

4.3 pts

Net income

$34M

Free cash flow

$997M

40.6%

Return on capital

1.5%

2.1 pts

Market cap

$42.1B

Oct 26 close

P/E

36.7x

On $7.19 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

About these figures. Twilio had no borrowings before it issued convertible notes in May 2018 (its 2017 10-K says it never drew on its credit line), so debt counts as zero in earlier years.

What Twilio does

Twilio sells tools that let businesses add messaging, voice, email and video to their own apps, and software that helps them manage how they talk to customers. Developers use its application programming interfaces (APIs), the code links that connect one program to another, to send texts, make calls and send email. It also sells products for contact centers, marketing campaigns, and user sign-in and identity checks, and a customer data product called Segment.

Twilio earns money from both usage-based and subscription fees. Messaging, Voice, and User Authentication and Identity revenue is mostly recognized by usage. Email and Segment revenue is mostly recognized by subscription. Revenue is seasonal, rising in the fourth quarter with more consumer activity. At the end of 2025 it had over 402,000 Active Customer Accounts, from small and medium-sized businesses to large enterprises. It says its growth has mostly come from winning new customers and from customers using its products more.

Twilio says its competitors are mainly other communications platform-as-a-service companies, regional network service providers, and customer relationship management and customer experience software vendors. At the end of 2025 it had 5,587 employees, 2,738 of them outside the United States.

Its biggest risks, as it describes them

Customers cutting back or ending their use of its products, since much of its revenue depends on usage.
Failing to win new customers or to raise usage by existing ones at a reasonable cost.
Intense competition in markets that are changing fast.
Its history of losses, and the chance it does not reach or keep profitability.
Reliance on network service and internet providers to deliver its products.

From Twilio's annual report on Form 10-K, filed February 24, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new 10-K.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Twilio yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Twilio's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Twilio's fiscal 2025 free cash flow of $997M, net cash of $1.5B at December 31, 2025 and 160 million diluted shares, from its filings. The scenarios are fitted to Twilio: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 9.8% a year; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 10%: 9% for a business of moderate risk (Systems Software), plus 1 point for unsteady results (a loss in fiscal 2024); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus capital spending in fiscal 2025.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at December 31, 2025. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to Twilio's own revenue growth, as above. Cautious: growth of 5% then 3.5% a year, 2% after year 10, a 11% discount rate. Base: growth of 10% then 6% a year, 2.5% after year 10, a 10% discount rate. Optimistic: growth of 14.5% then 9% a year, 3% after year 10, a 9% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $263.65
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

Value per share on three example scenarios, from Twilio's earnings per share of $7.19 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 36.7×, the middle of Twilio's own P/E today, its peers' median and its sector's median (Twilio's own P/E today) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 11%, 10% and 9%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

Earnings per share, US$

Diluted earnings per share over the four quarters to June 30, 2026, from the 10-Qs and 10-K.

P/E multiple

P/E today is the last close divided by the latest earnings per share, the four quarters' where available. Peers: Gen Digital, Fortinet.

Earnings growth in the years ahead (% a year) Starts at Twilio's revenue growth over the last 3 years, 9.8% a year, as the base scenario does.

Earnings per share in the years ahead, US$

Year 1Year 2Year 3Year 4Year 5

Type your own estimate for any year; the years after it carry on at the growth rate.

Apply the multiple to earnings

A multiple on a future year's earnings gives the price then, brought back to today at the discount rate below.

Discount rate (% a year) The yearly return an investor wants for the risk, as in the cash flow model.

Value per share today at this multiple

—

Last close, October 26, 2026: $263.65
Value at this multiple, against the last close: —
Twilio's P/E at the last close: 36.7×

Company	Last close	Earnings per share	P/E today
FortinetFTNT	$183.33	$2.83	64.8×
TwilioTWLO	$263.65	$7.19	36.7×
Gen DigitalGEN	$24.41	$1.71	14.3×

How the P/E method works. Value per share is earnings per share times the multiple. On a future year's earnings, that gives the price in that year, which is brought back to today at the discount rate: price ÷ (1 + discount rate) for each year ahead. It is quick and easy to compare across companies, but it ignores debt and cash, and earnings can swing with one-off gains and charges, so a multiple says most about steady, profitable businesses. Like the cash flow model, the result depends entirely on the assumptions you choose. It is not a forecast, a price target or a recommendation.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	5,358	4,155	4,012	2,384	2,470
Debt incl. finance leases	1,023	1,020	1,007	991	992
Net debt (negative means net cash)	−4,334	−3,135	−3,005	−1,394	−1,478
Net debt to EBITDA	—	—	—	−9.2x	−4.2x
Debt to equity	0.1x	0.1x	0.1x	0.1x	0.1x
Interest coverage	−44.4x	−32.1x	−22.8x	−1.4x	4.2x
Current ratio	8.4x	6.2x	6.6x	4.2x	4.0x
Quick ratio	8.4x	6.2x	6.6x	4.2x	4.0x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought Twilio shares on the open market, and 7 insiders sold $619.0 million, $33.8 million of it under trading plans set up in advance.

Date	Insider	Trade	Shares	Price	Value	Filing
Oct 5, 2026	Khozema ShipchandlerChief Executive Officer, Director	Sold plan	14,442	$291.03	$4.2 million	Form 4
Sep 30, 2026	Khozema ShipchandlerChief Executive Officer, Director	Sold	13,898	$294.08	$4.1 million	Form 4
Sep 30, 2026	Aidan ViggianoChief Financial Officer	Sold	9,084	$294.65	$2.7 million	Form 4
Aug 17, 2026	Aidan ViggianoChief Financial Officer	Sold	1,394	$234.48	$326,860	Form 4
Aug 12, 2026	Scott D. FergusonSee Footnotes	Sold	500,000	$247.08	$123.5 million	Form 4
Aug 10, 2026	Erika RottenbergDirector	Sold plan	3,500	$251.82	$881,383	Form 4
Jul 6, 2026	Khozema ShipchandlerChief Executive Officer, Director	Sold plan	14,458	$210.43	$3.0 million	Form 4
Jul 2, 2026	Aidan ViggianoChief Financial Officer	Sold plan	8,528	$205.43	$1.8 million	Form 4
Jun 30, 2026	Khozema ShipchandlerChief Executive Officer, Director	Sold	13,881	$201.26	$2.8 million	Form 4
Jun 30, 2026	Aidan ViggianoChief Financial Officer	Sold	9,093	$201.25	$1.8 million	Form 4
Jun 4, 2026	Khozema ShipchandlerChief Executive Officer, Director	Sold plan	44,158	$235.88	$10.4 million	Form 4
Jun 1, 2026	Erika RottenbergDirector	Sold plan	2,000	$199.01	$398,020	Form 4

The latest 12 of 32 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Fail	Fail	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Pass	Pass
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Fail	Fail	Fail
Current ratio rose	Pass	Fail	Fail
Share count didn't rise	Fail	Pass	Pass
Gross margin rose	Pass	Pass	Fail
Revenue rose relative to assets	Pass	Pass	Pass
F-score	6 of 9	6 of 9	6 of 9
Accruals ratio	−11.8%	−7.7%	−9.9%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Twilio side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Twilio	FY25	13.7%	3.1%	19.7%	1.5%	−4.2x	6
Gen Digital	FY26	27.1%	42.4%	30.5%	13.7%	3.0x	7	Compare
CrowdStrike	FY26	21.7%	−6.1%	27.2%	—	—	4	Compare
Fortinet	FY25	14.2%	30.7%	32.7%	—	−1.2x	5	Compare
Zscaler	FY26	25.4%	−4.0%	25.4%	—	−116.4x	3	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	277	399	650	1,134	1,762	2,842	3,826	4,154	4,458	5,067
Revenue growth	66.2%	43.9%	62.9%	74.5%	55.3%	61.3%	34.6%	8.6%	7.3%	13.7%
Gross profit	157	216	349	609	916	1,391	1,814	2,044	2,278	2,479
Research and development	78	121	171	391	530	789	1,079	943	1,009	1,020
Operating income	−41	−66	−115	−370	−493	−916	−1,205	−876	−54	158
Net income	−41	−64	−122	−307	−491	−950	−1,256	−1,015	−109	34
Diluted EPS (US$)	−0.78	−0.70	−1.26	−2.36	−3.35	−5.45	−6.86	−5.54	−0.66	0.21
Diluted shares (millions)	53	91	97	130	147	174	183	183	166	160
Cash flow
Cash from operations	10	−3	8	14	33	−58	−254	415	716	1,003
Capital expenditure	14	9	5	45	26	46	34	11	7	6
Free cash flow	−4	−12	3	−31	7	−104	−289	403	709	997
Dividends paid	0	0	0	0	0	0	0	0	0	0
Share buybacks	0	0	0	0	0	0	0	669	2,334	869
Acquisitions	8	23	31	123	334	492	37	6	0	62
Stock-based compensation	24	50	93	264	361	632	799	676	617	600
Balance sheet at fiscal year end
Cash and short-term investments	306	291	748	1,853	3,040	5,358	4,155	4,012	2,384	2,470
Debt incl. finance leases	0	0	434	474	329	1,023	1,020	1,007	991	992
Total assets	413	450	1,029	5,150	9,487	12,999	12,564	11,610	9,866	9,771
Total liabilities	83	90	590	871	1,035	1,967	2,005	1,877	1,912	1,949
Shareholders' equity	329	360	438	4,279	8,453	11,032	10,559	9,733	7,953	7,822
Margins and ratios
Gross margin	56.5%	54.2%	53.7%	53.7%	52.0%	48.9%	47.4%	49.2%	51.1%	48.9%
Operating margin	−14.9%	−16.6%	−17.7%	−32.6%	−28.0%	−32.2%	−31.5%	−21.1%	−1.2%	3.1%
Net margin	−14.9%	−16.0%	−18.8%	−27.1%	−27.9%	−33.4%	−32.8%	−24.4%	−2.5%	0.7%
Free cash flow margin	−1.5%	−3.1%	0.4%	−2.8%	0.4%	−3.7%	−7.5%	9.7%	15.9%	19.7%
Return on capital	—	−112.5%	−94.2%	−19.3%	−9.0%	−11.6%	−13.5%	−9.8%	−0.6%	1.5%
Return on equity	−18.5%	−18.5%	−30.6%	−13.0%	−7.7%	−9.8%	−11.6%	−10.0%	−1.2%	0.4%
Return on assets	−14.5%	−14.8%	−16.5%	−9.9%	−6.7%	−8.4%	−9.8%	−8.4%	−1.0%	0.3%
Net debt to EBITDA	—	—	—	—	—	—	—	—	−9.2x	−4.2x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Twilio's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Twilio.