Twist Bioscience's Q2 2025 Earnings: A Growth Spurt in Synthetic Biology and NGS
18min read Twist Bioscience Corporation (TWST) delivered a strong performance in Q2 2025, with its earnings call transcript revealing robust revenue growth, margin expansion, and heightened optimism about its long-term prospects. The company reported a 24% year-over-year revenue increase to $88.7 million, driven by surging demand for its synthetic biology (SynBio) and next-generation sequencing (NGS) products. This outperformance, coupled with improved profitability metrics and upwardly revised full-year guidance, positions Twist as a key player in the rapidly evolving biotechnology sector.
Revenue Growth and Segment Performance
The Q2 results underscored the strength of Twist’s dual-engine growth model. SynBio revenue rose 28% YoY to $34.4 million, reflecting increased adoption of its DNA synthesis technologies in drug discovery and industrial biotech applications. Meanwhile, NGS revenue grew 23% to $48.6 million, fueled by partnerships with leading research institutions and pharmaceutical companies. This balanced growth across both segments highlights Twist’s ability to capitalize on secular trends in genomics and synthetic biology.
Margin Expansion and Profitability Improvements
A standout achievement was the significant improvement in gross margin, which jumped to 48.3% in Q2 2025 from 40.5% in the same quarter last year. This expansion suggests successful operational efficiencies, including cost reductions in DNA synthesis and higher utilization of its manufacturing capacity. The adjusted EBITDA loss narrowed to $16.3 million, a $11.5 million improvement over Q2 2024, signaling progress toward profitability. Management attributed these gains to better pricing discipline, economies of scale, and reduced supply chain disruptions.
Guidance and Future Outlook
Twist raised its full-year 2025 revenue guidance to a range of $372–$379 million, up from its prior forecast of $350–$360 million. This revision reflects confidence in continued momentum across both SynBio and NGS segments. Perhaps more compelling is the expectation for gross margins to exceed 50% by Q4 2025, driven by further scale-up of its DNA synthesis platform and higher NGS throughput. The company also emphasized its strategic focus on high-margin applications like gene therapy and mRNA vaccines, which could amplify its competitive edge.
Investment Implications
Twist’s Q2 results validate its transition from a high-growth, capital-intensive startup to a more mature, profitable enterprise. The company’s focus on scaling its DNA synthesis business—critical for drug discovery and industrial biotech—aligns with the $20 billion synthetic biology market, projected to grow at a 22% CAGR through 2030. Additionally, its NGS offerings are well-positioned to benefit from the global genomics market’s expansion, which is expected to hit $80 billion by 2030.
While Twist remains in a high-risk, high-reward sector, its improving margins and strong cash flow generation (despite operating losses) suggest it is nearing a potential inflection point. The stock’s current valuation—trading at around 10x its 2025 revenue guidance—appears reasonable given its growth trajectory and industry tailwinds. However, investors should monitor execution risks, including competition and the pace of margin improvements.
Conclusion
Twist Bioscience’s Q2 2025 earnings demonstrate a company in full command of its growth narrative. With revenue growth accelerating, margins expanding meaningfully, and a clear path to achieving its 50% gross margin target, Twist is solidifying its position as a leader in the synthetic biology and NGS space. The raised revenue guidance and margin targets further underscore management’s confidence in scaling operations and capturing market share.
For investors, Twist represents a compelling opportunity to capitalize on the biotechnology sector’s long-term growth drivers. While challenges remain, the data—from surging SynBio adoption to margin improvements—paints a picture of a company primed to deliver outsized returns as its technologies become mainstream. The coming quarters will be critical, but the foundation laid in Q2 suggests Twist is on the right path.
In short, Twist Bioscience’s Q2 results are a strong vote of confidence in its strategy and execution. With the biotech industry’s innovation pipeline expanding rapidly, Twist is well-positioned to benefit—and investors should take note.
