TWLOTwilio Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (4.6×) and margins widening.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Margin-driven, fat margins on slower asset turns. ROE 4% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
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.
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 5.8% · 12 months to Q2 2026
- Cash conversion
- 4.63×
Cash conversion · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.01%
Share count, year on year · flat: no meaningful dilution
| 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 is operating cash flow over operating profit after tax.
Software, Infrastructure
Ranks #44 of 80 by RyuScore