TWLONEUTRAL

TWLO Return on Equity (ROE) Analysis

1.3%

Higher than 23% of Communication Services sector peers

Updated 301h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder equity.

Sector Performance

23th percentile

TWLO

1.3%

Sector Median

10.4%

Sector Avg

16.8%

Prior Period

0.4%(May 2026)

↑ Improving

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder equity.

Twilio’s current ROE of 1.3% means that for every $100 of equity, it earned $1.30 in profit — a very low return. This sits far below the Communication Services sector median of 14.7%, placing the company in the 20th percentile among its peers. The year-over-year change is not available, but the quarter-over-quarter change shows a sharp +225.0% increase from 0.4% to 1.3%. While the level remains weak, the recent improvement suggests the company is becoming more efficient at using equity, reducing near-term risk. However, the ROE still lags the sector by a wide margin, indicating limited profitability relative to peers. This metric contradicts the overall NEUTRAL verdict because a sustained low ROE typically signals a more cautious outlook.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about TWLO?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does TWLO's Return on Equity (ROE) compare to its sector?

TWLO's Return on Equity (ROE) of 1.3% compares to a Communication Services sector median of 10.4%, placing it in the 23th percentile.

Who are TWLO's closest peers by Return on Equity (ROE)?

The closest Communication Services peers by Return on Equity (ROE) include: DASH (9.9%), DIS (11.0%), PINS (8.9%), ZD (2.1%), YELP (20.4%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.