Twist Bioscience 2025 Q2 Earnings Misses Targets, Net Loss Narrows 13.5%

Twist Bioscience (TWST) reported its fiscal 2025 Q2 earnings on May 05th, 2025. Twist Bioscience's Q2 2025 results fell short of expectations, with earnings per share missing estimates by $0.07 and revenue falling short by over $1 million. Despite these misses, the company maintained its revenue guidance for fiscal 2025, projecting growth of approximately 20% year-over-year. Twist's proactive measures in adapting to changing market demands and strategic focus on core business areas, such as SynBio and NGS revenue, aim to steer it toward adjusted EBITDA breakeven by the end of fiscal 2026.

Revenue
The total revenue of Twist Bioscience increased by 23.2% to $92.79 million in 2025 Q2, up from $75.30 million in 2024 Q2.

Earnings/Net Income
Twist Bioscience narrowed losses to $0.66 per share in 2025 Q2 from a loss of $0.79 per share in 2024 Q2 (16.5% improvement). Meanwhile, the company successfully narrowed its net loss to $-39.33 million in 2025 Q2, reducing losses by 13.5% compared to the $-45.49 million net loss reported in 2024 Q2. The Company has sustained losses for 8 years over the corresponding fiscal quarter, highlighting ongoing financial headwinds. The EPS performance suggests ongoing challenges despite improvements.

Price Action
The stock price of Twist Bioscience has tumbled 14.59% during the latest trading day, has tumbled 9.95% during the most recent full trading week, and has dropped 5.97% month-to-date.

Post-Earnings Price Action Review
The impact of Twist Bioscience's earnings report on its stock price has been mixed across different time frames. Revenue figures show a short-term potential for positive returns, with win rates of 38.10% over 3 days, 52.38% over 10 days, and 57.14% over 30 days. Earnings per share (EPS) and net income also reflect similar short-term trends, indicating a higher likelihood of stock price appreciation following earnings reports. Maximum returns of 9.09% have been observed over 30 days post-earnings, suggesting that investors might find opportunities in the stock's price movements. While all three metrics—revenue, net income, and EPS—show potential for positive stock performance in the short term, the overall impact is tempered by recent price declines, reflecting broader market sentiment and investor caution.

CEO Commentary
Emily Leproust, CEO and Co-Founder of Twist Bioscience, emphasized the company's proactive response to the rapidly changing global landscape, highlighting a strong commitment to agility and strategic opportunities. She announced record revenue of $92.8 million for Q2 2025, driven by a robust SynBio performance, and noted that 75% to 80% of incremental revenue contributes to gross margin. Leproust also expressed enthusiasm about spinning out DNA Data Storage into Atlas Data Storage, which will allow both companies to focus on their core missions. The CEO maintained an optimistic tone, stating, "Our view of the future is clear and optimistic," while reinforcing the company's ability to adapt and thrive amid challenges.

Guidance
Twist Bioscience reiterated its total revenue guidance for fiscal 2025, projecting between $372 million and $379 million, indicating approximately 20% year-over-year growth. The SynBio revenue guidance is set at $144 million to $147 million, while NGS revenue is expected to be between $205 million and $209 million. For Q3 fiscal 2025, total revenue is anticipated to be approximately $94 million to $97 million. The company expects adjusted EBITDA losses between $48 million and $53 million for fiscal 2025, with a path to breakeven by the end of fiscal 2026.

Additional News
Twist Bioscience has recently spun out its DNA data storage technology into a new company, Atlas Data Storage, which received $155 million in seed financing from investors like ARCH Venture Partners and Bezos Expeditions. This strategic move allows Twist to concentrate on its core life sciences business while maintaining a minority stake in Atlas. Furthermore, Twist has expanded its NGS tools portfolio with the launch of a High Throughput UDI Adapter System, doubling its high throughput offering to enable large-scale genetic studies. In another development, Twist partnered with Curio Genomics to boost NGS adoption in agrigenomics, combining Twist's library preparation kit with Curio's bioinformatics platform for enhanced genotyping workflows.