Is TWLO a good stock to buy? We came across a bullish thesis on Twilio Inc. on ARMR Report Be The Smart Money’s Substack by Bret Rosenthal. In this article, we will summarize the bulls’ thesis on TWLO. Twilio Inc.’s share was trading at $143.79 as of April 24th. TWLO’s trailing and forward P/E were 684.71 and 26.60 respectively according to Yahoo Finance.
Twilio Inc. (TWLO) is positioned as a leading global communications and AI orchestration platform, transitioning from low-margin CPaaS messaging transit to high-margin AI-driven software infrastructure. Operates as the critical abstraction layer over fragmented global telecom networks, converting complex carrier infrastructure into a unified API stack while shifting up the value chain through Customer Data Platform, Segment.
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Twilio is evolving from a pure communications router into an intelligence layer that determines who receives messages, when they are delivered, and how enterprises automate customer engagement. In FY25, Twilio generated $5.07 billion in revenue, growing 14% year over year, with $158 million in GAAP operating income and $945 million in free cash flow, up 43% and showing strong conversion. Non-GAAP operating margins expanded to 18.7%, while dollar-based net expansion reached 109%, reinforcing durable enterprise adoption.
The most significant growth vector is Voice AI, expanding at over 60% year over year, enabling Twilio to directly target global call-center spend by replacing human labor with automated conversational agents. Segment has reached profitability and strengthens cross-sell economics across the platform. Despite gross margins stabilizing near 50% due to carrier pass-through costs, pricing power is shifting toward software and AI orchestration.
The company is supported by a $2 billion buyback program, with over $1.1 billion remaining, reinforcing downside protection. Trading at 29x forward earnings and 4.6x EV/Sales, Twilio is mispriced versus AI infrastructure potential. With hyperscaler partnerships, deep switching costs, and expanding enterprise AI adoption, Twilio is positioned for structural re-rating as Voice AI monetization accelerates.
Previously, we covered a bullish thesis on Twilio Inc. (TWLO) by Stefan Waldhauser in March 2025, which highlighted profitability turnaround, strong free cash flow growth, and Twilio’s positioning as an AI-driven SaaS infrastructure platform. TWLO’s stock price has appreciated by approximately 45.28% since our coverage. Bret Rosenthal shares a similar view but emphasizes AI orchestration and Voice AI monetization.
Twilio Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 70 hedge fund portfolios held TWLO at the end of the fourth quarter which was 55 in the previous quarter. While we acknowledge the risk and potential of TWLO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TWLO and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
