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Twilio TWLO

Twilio scores average on business quality (5.8 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$289.47Oct 10, 2026
Business qualityAverage
Next earningsOct 29, 2026, after the close
Insiders, 90 daysSelling

Why it matters

  1. What Twilio does

    Twilio sells cloud communications infrastructure, letting software developers embed text messaging, voice, and email directly into their apps via APIs. Enterprises pay per message or interaction.

  2. What it does best

    Twilio dominates developer mindshare in programmable communications, handling massive message volumes at scale. Its gross margin sits at 48.6%, lagging peers like Okta at 78.1%, as carrier fees and messaging costs squeeze the direct infrastructure layer.

  3. The main risk

    Twilio faces fierce volume concentration and low switching costs for basic text delivery. If major enterprise clients build direct carrier relationships or migrate traffic to rivals, high-margin messaging streams evaporate quickly.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityWeak

Operating margin sits at 6.0% with a net margin of 20.6%, producing an ROE of 14.2%. Profitability is slowly stabilizing into positive territory after years of cash burn, though gross margins lag software peers.

MoatWeak

Twilio relies on a developer ecosystem moat, ranking in the middle of the pack for sector gross margins at 34th percentile. Rival platforms peel away accounts because API wrappers lack deep structural switching costs.

GrowthSteady

Revenue growth hit 13.7% over the latest period, bringing total revenue to $5.6B. Annual history shows steady expansion from $4.1B in 2023, though growth cools compared to early-stage spikes.

Financial healthStrong

Twilio holds $2.5B in cash against $992M in debt, creating a net cash position of $1.5B. Free cash flow reached $989M, backed by $820M in share buybacks. The balance sheet is strengthening.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

3 sold $130.6M outside pre-planned sales.

Our sealed record on TWLO

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is TWLO a good business?

Twilio scores average on the Cluenex quality check (5.8 of 10), measured against its own industry. Profitability is weak, moat weak, growth steady and financial health strong.

Are insiders buying TWLO?

In the last 90 days of SEC Form 4 filings: 3 sold $130.6M outside pre-planned sales.

When does TWLO report earnings?

Oct 29, 2026, after the close.

For members

See TWLO today

  • Today's verdict on TWLO, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Twilio (TWLO)”, https://cluenex.com/stocks/twlo/, data as of Oct 10, 2026.