Twilio Shares Fall 17% Despite Strong Free Cash Flow Margin
Twilio shares dropped about 17% on October 30 after results, as weaker growth guidance outweighed cash generation near 24% of revenue, per GuruFocus.
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what happened
Twilio, a customer engagement communications platform, fell 17.25% to $200.16 by 11:15 a.m. ET on October 30, according to GuruFocus. Investors focused on the outlook rather than on cash flow.
For the September quarter, revenue reached $1.56 billion, organic growth was 16%, and free cash flow totaled $369.6 million, about 23.7% of revenue. Guidance for the fourth quarter, however, points to revenue of $1.595 billion to $1.605 billion, organic growth of 11% to 12%, and adjusted operating income of $300 million to $310 million. The midpoint of organic growth implies a 4.5-percentage-point slowdown from the latest quarter.
why it matters
The contrast matters for traders: strong cash generation supports the company, but slower expansion puts pressure on its valuation. GuruFocus notes that at $200.16 the shares trade 51.33% above its GF Value estimate of $132.27, a premium the source calls substantial even after the selloff. The estimate itself does not guarantee where the price goes next.
market impact
Twilio shares: weaker growth outlook weighs on the stock, strong cash flow offers partial support
- Twilio shares pressure down — weaker growth outlook outweighed strong cash generation
tags
instruments
sources
- Twilio Stocks Decline 17.26% Despite Nearly 24% Free-Cash-Flow Margin — gurufocus.com, 30 October 2026 at 19:27 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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