Is the business good?
How good a business is TWLO?
Twilio Inc. earns 3.1% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
3.1%
Return on invested capital · cost of capital 9.0% · 5.9 points below what the capital costs: growth destroys value
- Operating margin
- 5.2%
Operating margin · Software - Infrastructure median 6.1% · 12 months to Q2 2026
- Share count, year on year
- +0.01%
Share count, year on year · flat: no meaningful dilution
- R&D as % of revenue
- 19%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | −28% |
| FY2021 | −32% |
| FY2022 | −32% |
| FY2023 | −21% |
| FY2024 | −1.2% |
| FY2025 | 3.1% |
Details›
- Gross margin12 months to Q2 2026
- 49%
- Operating margin12 months to Q2 2026
- 5.2%
- Net margin12 months to Q2 2026
- 21%
- R&D as % of revenue
- 19%
- Revenue, trailing twelve months
- $5.57B
- Net income, trailing twelve months
- $1.15B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 3.1%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Infrastructure
Ranks #50 of 78 by Smart Score