Twist Bioscience's Q3 2025: Navigating Contradictions in Revenue Growth, Academic Market Dynamics, and NGS Strategies

Revenue growth expectations, academic market growth and dynamics, guidance for NGS growth and methodology, investment and organic growth strategy, and NGS revenue and product launches are the key contradictions discussed in Twist Bioscience's latest 2025Q3 earnings call.



Revenue and Gross Margin Growth:
- Twist Bioscience reported record revenue of $96.1 million for Q3 2025, up 18% year-over-year.
- The company's gross margin improved to 53.4%, an increase of over 10 margin points compared to the same quarter in 2024.
- This growth was driven by increased revenue, volume leverage, and ongoing improvement initiatives, including order timing and mix benefits.

Synthetic Biology and NGS Performance:
- Synthetic Biology (SynBio) segment revenue was $35.2 million, reflecting a 7% year-over-year increase, while NGS reported $55.3 million in revenue, growing 27% year-over-year.
- SynBio growth was supported by increased customer engagement and product portfolio expansion, while NGS growth was driven by commercial assay demand and smaller account growth, particularly in minimal residual disease (MRD) customers.

Adjusted EBITDA Improvement:
- Twist Bioscience achieved an adjusted EBITDA loss of approximately $8 million, an improvement of about $14 million compared to the same quarter in 2024.
- The improvement was partly attributed to strong revenue growth, flat operating expenses, and the benefits from the Atlas Data Storage transaction.

Expansion in Academic and Healthcare Sectors:
- Academic and healthcare revenue grew by 7% and 32% year-over-year, respectively, with U.S. academic revenue growing 10% sequentially.
- The growth was driven by increased orders from large pharma and biotech customers, as well as the company's strategy to diversify and expand market reach.