Twilio (TWLO) Morgan Stanley Technology, Media & Telecom Conference 2026 summary

Financial performance and execution

• Achieved 13% organic revenue growth in 2025, up from 9% in 2024, with broad-based contributions across products and channels.

• Reduced operating expenses by 1% in 2025 while maintaining financial discipline and strong operating leverage.

• Generated nearly $950 million in free cash flow in 2025, guiding to over $1 billion in 2026.

• Returned 90% of free cash flow to shareholders via share repurchases, exceeding the 50% target.

• Stock-based compensation as a percentage of revenue reduced from 22% to 12%, targeting 10% by 2027.

Growth drivers and business channels

• Voice product grew in the high teens in Q4, its highest rate since 2022, driven by agentic and AI use cases.

• Self-serve channel grew 28% in Q4, fueled by AI-native developers and improved onboarding and tooling.

• ISV channel grew 26% year-over-year in Q4, with large deals increasing 36%, including a record nine-figure renewal.

• Dollar-based net expansion rate improved to 109, with volume growth and cross-sell as key contributors.

Competitive positioning and technology

• Maintains a strong moat with nearly 5,000 global carrier connections and compliance in over 180 countries.

• Platform trusted for fraud detection, intelligent routing, and regulatory adherence, built over 17 years.

• AI and automation are being leveraged for operational efficiency, especially in customer support and lead conversion.