Twilio Inc (TWLO)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 20,244 | -34,037 | -109,403 | -462,341 | -594,322 | -728,651 | -1,015,441 | -879,455 | -1,220,075 | -1,376,657 | -1,256,145 | -1,318,119 | -1,059,901 | -964,985 | -949,900 | -837,855 | -730,660 | -602,730 | -490,979 | -401,875 |
| Total stockholders’ equity | US$ in thousands | 8,043,920 | 8,004,290 | 7,952,970 | 8,228,870 | 8,679,470 | 9,447,730 | 9,732,550 | 9,979,380 | 9,976,560 | 10,318,900 | 10,559,000 | 10,530,900 | 10,842,000 | 10,917,400 | 11,031,500 | 11,081,700 | 10,694,100 | 10,247,200 | 8,452,660 | 5,762,270 |
| 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% |
June 30, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $20,244K ÷ $8,043,920K
= 0.25%
The analysis of Twilio Inc.'s return on equity (ROE) over the period from September 2020 through June 2025 reveals a trend characterized initially by persistent negative values, indicating that the company was not generating positive returns on shareholders' equity during this period. Starting at -6.97% as of September 30, 2020, the ROE exhibited a gradual improvement over time, with fluctuations in the magnitude of losses.
Throughout 2021 and into early 2022, the ROE continued its negative trajectory, reaching a low of -13.34% in March 2023. This continued negative ROE suggests that Twilio was experiencing difficulties in converting shareholders' equity into profitable operations or earnings during this timeframe. The consistent negative values imply ongoing challenges in achieving profitability on a return basis, which is typical in early growth phases for technology and SaaS companies, especially those investing heavily in growth and expansion.
Beginning in the latter part of 2023, the ROE showed signs of improvement, with a lessening of losses, reaching around -6.85% in June 2024 and further mitigating to -5.62% by September 2024. Remarkably, by December 2024, the ROE approached a near break-even point at -1.38%, indicating significant progress towards positive returns. The trend towards improvement continued into 2025, with the ROE reaching -0.43% in March and turning positive at 0.25% in June 2025.
This progression from negative to positive territory over the analyzed period signals a substantial improvement in Twilio's profitability and efficiency in generating returns for shareholders. The movement towards a positive ROE reflects potentially favorable operational developments, improved revenue performance, cost management, or strategic adjustments that have begun to produce tangible financial benefits, moving beyond prior losses into an era of potential value creation for shareholders.
Peer comparison
Jun 30, 2025