TWLONEUTRAL

TWLO FCF Yield Analysis

3.3%

Updated 11h ago·SEC filings & market data

Key Takeaway

A 3.3% FCF yield means TWLO generates free cash flow equal to 3.3% of its market value, a simple way to gauge the cash return an investor gets relative to the share price.

Sector Performance

39th percentile

TWLO

3.3%

Sector Median

4.2%

Sector Avg

9.3%

Prior Period

3.0%(Jul 2026)

↑ Improving

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Deep Analysis

A 3.3% FCF yield means TWLO generates free cash flow equal to 3.3% of its market value, a simple way to gauge the cash return an investor gets relative to the share price.

That sits below the sector median of 4.2%, putting TWLO in the 40th percentile among peers, so it offers less cash return than most comparable companies. The trend data is limited: year-over-year change is not available, but the quarter-over-quarter change shows a +10.0% increase, moving from 3.0% to 3.3% in the most recent period. The level below the median suggests the stock is not a standout on cash generation, though the quarterly improvement points to recent strengthening. This combination implies a moderate risk-opportunity profile: limited cash yield creates some downside vulnerability, but the upward trajectory may attract value-focused investors. Overall, this metric supports the NEUTRAL verdict because the FCF yield is neither clearly weak enough to reject the stock nor strong enough to justify a bullish stance.

Frequently Asked Questions

What does the FCF Yield tell investors about TWLO?

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.

How is the FCF Yield calculated?

FCF Yield is calculated as: Free Cash Flow / Market Cap.

Who are TWLO's closest peers by FCF Yield?

The closest peers by FCF Yield include: RARE (-18.7%), CG (-19.3%), RXRX (-20.3%), PLUG (-22.0%), NTLA (-22.5%).

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Learn More About FCF Yield

Understanding Free Cash Flow

Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.

Free Cash Flow Yield: Why It Matters More Than Earnings Per Share

EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.

The Formula

Free Cash Flow / Market Cap

Why It Matters

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.