Twilio vs Zscaler
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KIRAβs take AI analyst
I put Twilio and Zscaler side by side, using each oneβs latest annual report. Here is what stands out:
- Twilio is the larger business, with $5.1B of revenue in fiscal 2025 against $3.4B for Zscaler, about 1.5 times as much.
- Zscaler grew revenue faster (25.4%, against 13.7%).
- Twilio kept more of each dollar of sales as operating profit (3.1% operating margin, against β4.0%).
- Zscaler turned more of its sales into free cash flow (25.4% FCF margin, against 19.7%).
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Twilio
TWLO
5/10
Operating marginNet marginReturn on equityPiotroski F-scoreShare count change
Zscaler
ZS
5/10
Revenue growth5-year growthGross marginFCF marginNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | TWLO FY25 | ZS FY26 |
|---|---|---|
| Size | ||
| Market cap | $42.1B | $41.7B |
| Revenue | $5.1B | $3.4B |
| Free cash flow | $997M | $852M |
| Net income | $33.8M | β$63.2M |
| Growth | ||
| Revenue growth | 13.7% | 25.4% |
| 5-year growth | 23.5% | 37.9% |
| Share count change | β3.7% | 3.8% |
| Profitability | ||
| Gross margin | 48.9% | 76.8% |
| Operating margin | 3.1% | β4.0% |
| Net margin | 0.7% | β1.9% |
| FCF margin | 19.7% | 25.4% |
| Return on capital | 1.5% | β |
| Return on equity | 0.4% | β2.9% |
| Balance sheet | ||
| Net debt | β$1.5B | β$1.8B |
| Net debt / EBITDA | β4.2x | β116.4x |
| Dividends and buybacks | $869M | $0.0M |
| Valuation & quality | ||
| P/E | 36.7x | β |
| Piotroski F-score | 6 | 3 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.