Twilio Inc (TWLO)
Profitability ratios
Return on sales
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 48.98% | 49.49% | 50.00% | 49.66% | 49.16% | 48.35% | 47.38% | 46.89% | 46.52% | 46.23% | 46.13% | 45.95% | 45.86% | 46.07% | 45.45% | 46.28% | 46.96% | 47.70% | 49.76% | 49.82% |
| Operating profit margin | 1.78% | 0.61% | -0.91% | -2.39% | -4.83% | -7.10% | -9.19% | -13.09% | -17.40% | -22.62% | -25.96% | -29.28% | -30.14% | -29.53% | -31.80% | -30.99% | -29.86% | -28.95% | -26.79% | -25.88% |
| Pretax margin | 0.91% | -0.37% | -1.99% | -10.02% | -13.47% | -16.93% | -23.99% | -20.90% | -29.52% | -34.13% | -32.50% | -36.03% | -31.55% | -31.33% | -33.81% | -33.99% | -32.96% | -31.02% | -28.63% | -25.81% |
| Net profit margin | 0.43% | -0.74% | -2.45% | -10.66% | -14.02% | -17.37% | -24.45% | -21.44% | -30.11% | -34.79% | -32.83% | -36.17% | -31.16% | -30.86% | -33.43% | -32.89% | -32.40% | -30.34% | -27.87% | -26.01% |
The profitability ratios of Twilio Inc. over the period from September 2020 to June 2025 reflect a significant trend toward improved profitability despite initial losses.
Starting with gross profit margin, the data indicates a stable yet gradually increasing trend. In September 2020, the gross margin was approximately 49.82%, which slightly declined through March 2022 to around 46-47%. From this point onward, there is a clear upward trajectory, culminating in September 2024 at approximately 49.66% and reaching 50.00% in December 2024. The continued increase suggests enhancements in cost management or product mix that bolster gross profitability.
Operating profit margins, however, depict a different pattern. Throughout the period from September 2020 to around September 2023, Twilio operated at a loss, with operating margins remaining deeply negative—ranging from -25.88% to approximately -13.09%. Notably, there is a consistent improvement over this time, with the losses narrowing substantially. Starting in late 2023, the operating margin crosses into positive territory, first slightly at 0.61% in March 2025 and further improving to 1.78% by June 2025, indicating the company's transition toward operational profitability.
Pretax margins mirror the operating margin trend, initially negative and gradually approaching break-even. Beginning with significant losses of -25.81% in September 2020, these margins improve over time, moving toward zero, with positive figures emerging in the latter part of 2024 and early 2025 (+0.91% at June 2025). This indicates that before tax considerations, Twilio’s profitability is also improving steadily.
Net profit margins follow a similar trajectory. Starting at around -26.01% in September 2020, the net margins narrow consistently over time, reaching near breakeven at -0.74% in March 2025 and turning positive at +0.43% by June 2025. The progression of net income margins signifies that Twilio has successfully reduced its losses, ultimately moving into profitability after years of operating at a deficit.
In summary, Twilio Inc. has demonstrated a trend of recovering profitability over the analyzed period. While gross profit margins have remained relatively stable and high, the narrowing of operating, pretax, and net margins from highly negative figures indicates substantial improvements in operational efficiency and cost control. The upward movement into positive margins in late 2024 and mid-2025 suggests a potentially sustainable turnaround, reflecting enhanced profitability prospects for the firm.
Return on investment
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.86% | 0.28% | -0.41% | -1.03% | -1.95% | -2.64% | -3.29% | -4.53% | -5.92% | -7.28% | -7.91% | -8.46% | -7.97% | -7.16% | -6.95% | -6.08% | -5.37% | -4.70% | -4.97% | -5.95% |
| Return on assets (ROA) | 0.21% | -0.35% | -1.11% | -4.61% | -5.66% | -6.45% | -8.75% | -7.42% | -10.25% | -11.19% | -10.00% | -10.45% | -8.24% | -7.49% | -7.31% | -6.46% | -5.83% | -4.92% | -5.18% | -5.98% |
| Return on total capital | 0.53% | -0.21% | -1.11% | -5.28% | -6.58% | -7.52% | -10.24% | -8.59% | -11.99% | -13.09% | -11.78% | -12.47% | -9.72% | -8.69% | -8.38% | -7.43% | -6.68% | -5.78% | -5.67% | -6.47% |
| Return on equity (ROE) | 0.25% | -0.43% | -1.38% | -5.62% | -6.85% | -7.71% | -10.43% | -8.81% | -12.23% | -13.34% | -11.90% | -12.52% | -9.78% | -8.84% | -8.61% | -7.56% | -6.83% | -5.88% | -5.81% | -6.97% |
The analysis of Twilio Inc.’s profitability ratios over the specified periods reveals a consistent negative trend from September 2020 through September 2024, indicating ongoing challenges in generating positive returns on assets, capital, and equity.
Operating Return on Assets (Operating ROA): Throughout the observed timeframe, Twilio's Operating ROA remained negative, reflecting unprofitable core operations relative to assets employed. Starting at -5.95% in September 2020, the ratio deteriorated marginally over the subsequent year, reaching a low of -8.46% in September 2022, before gradually improving towards a less negative stance. By September 2024, the Operating ROA had narrowed to -1.03%, signaling a significant recovery trend that ultimately culminated in a positive figure of 0.86% by June 2025, suggesting a potential shift toward operational profitability.
Return on Assets (ROA): The ROA followed a similar downward pattern, indicating that the company's net earnings consistently lagged behind its total assets. From -5.98% in September 2020, the ratio declined to a low of -10.45% in September 2022. A modest upward trajectory ensued, and by September 2024, the ROA improved to -4.61%, moving closer to breakeven, and eventually reaching a minimal positive margin of 0.21% in June 2025, which points to a significant turnaround in overall profitability.
Return on Total Capital: The ratio remained negative across all periods, indicating that the company’s returns on all invested capital have been insufficient to cover the cost of capital and generate gains. It worsened from -6.47% in September 2020 to a trough of -12.47% in September 2022, then demonstrated a consistent recovery, reaching near breakeven at -0.21% in March 2025. This suggests improving efficiency in generating returns from both debt and equity financing.
Return on Equity (ROE): Reflecting shareholder value, the ROE was persistently negative, indicating shareholders’ investments have historically not generated positive returns. ROE declined from -6.97% in September 2020 to a low of -13.34% in March 2023. However, there has been a clear improvement, especially in the latest period (up to June 2025), with the ratio rising to 0.25%, signaling a potential resurgence in profitability attributable to enhanced operational performance or restructuring.
Overall, Twilio Inc. exhibited consistent losses in profitability metrics for the majority of the analyzed period, highlighting ongoing operational and financial challenges. Nevertheless, recent data indicates a positive trend with ratios moving toward breakeven and modest profitability, suggesting that strategic initiatives or market changes may be beginning to yield favorable results.