Twist Bioscience Reports Record Revenue and Narrowed Guidance Amid Challenges

Twist Bioscience reported record Q3 revenue of $96.1 million, an 18% YoY increase, driven by growth in the NGS and healthcare segments. Gross margins improved to 53.4%, up from 43.3% last year. The company expanded its customer base and added hundreds of new customers, with SynBio revenue growing by over 20% YoY. However, challenges remain, including the impact of customer transitions on revenue and stagnant performance in the industrial chemical sector.

Twist Bioscience Corp (TWST) reported its Q3 2025 earnings, showing a significant 18% year-over-year increase in revenue, reaching $96.1 million. Despite this growth, the company’s stock saw a decline of 5.58% in premarket trading, with shares priced at $31.80. The stock has experienced significant volatility, with a beta of 2.42 and a 27.5% decline year-to-date according to InvestingPro data. This reaction comes as the company posted an adjusted EBITDA loss of $8 million, although this was an improvement from the previous fiscal year. Key Takeaways Twist Bioscience’s revenue grew by 18% year-over-year, driven by strong performance in its NGS segment. The company improved its gross margin to 53.4%, up from 43.3% in the previous year. Despite revenue growth, Twist Bioscience reported an adjusted EBITDA loss of $8 million. Premarket trading saw the company’s stock fall by 5.58%. Company Performance Twist Bioscience showed robust performance in Q3 2025, with revenue reaching $96.1 million, marking an 18% increase from the same quarter last year. The company’s gross margin improved significantly to 53.4%, reflecting enhanced operational efficiencies and cost management. The NGS segment was a standout, with a 27% year-over-year growth, contributing $55.3 million to the total revenue. InvestingPro analysis shows the company maintains strong financial health with a current ratio of 4.51, indicating robust liquidity. Despite these gains, the company continues to face challenges in achieving profitability, as evidenced by the adjusted EBITDA loss. Financial Highlights Revenue: $96.1 million, up 18% year-over-year Gross Margin: 53.4%, up from 43.3% in FY2024 Synbio Revenue: $35.2 million, 7% YoY growth NGS Revenue: $55.3 million, 27% YoY growth Biopharma Services Revenue: $5.6 million, 10% YoY growth Adjusted EBITDA Loss: $8 million, improved by $14 million compared to FY2024 Market Reaction Following the earnings announcement, Twist Bioscience’s stock price dropped by 5.58% in premarket trading, settling at $31.80. This decline comes despite the company’s positive revenue growth and improved gross margins. According to InvestingPro, which offers 8 additional valuable insights about TWST, the stock has taken a significant hit over the last week, dropping 7.8%. The stock’s movement could reflect investor concerns over the continued adjusted EBITDA losses and the broader market sentiment towards biotech firms. InvestingPro’s comprehensive analysis indicates the stock is currently trading near its Fair Value. Outlook & Guidance Twist Bioscience provided guidance for the remainder of FY2025, projecting total revenue between $374 million and $376 million, which would represent a growth rate of approximately 19.7%. The company expects its gross margin to be in the range of 50.5% to 51%, with an adjusted EBITDA loss between $45 million and $47 million. Key growth areas include Synbio and NGS, with revenue guidance set at $144 million to $145 million and $267 million to $268 million, respectively. Executive Commentary CEO Emily Leproust highlighted the company’s innovative capabilities, stating, "We turned complexity into opportunity." President and COO Patrick Finn emphasized the competitive edge of Twist Bioscience’s technology, noting, "Our technology advantage gives us a product and a value proposition that resonates for the customer." These comments underscore the company’s strategic focus on leveraging its technology to drive growth and customer engagement. Risks and Challenges Continued adjusted EBITDA losses could impact investor confidence. Market saturation in key segments like NGS might limit growth potential. Macroeconomic pressures and currency fluctuations could affect international sales. The competitive landscape in the biotech sector remains intense, requiring continuous innovation. Q&A During the earnings call, analysts inquired about the company’s strategies for sustaining growth in the Synbio and NGS markets. Management addressed these concerns by outlining plans for product innovation and expansion into new geographic markets. Additionally, questions were raised about the challenges in international markets, which the company acknowledged as a focus area for improvement. Full transcript - Twist Bioscience Corp (TWST) Q3 2025: Conference Operator: Ladies and gentlemen, thank you for standing by. Welcome to Twist Bioscience’s twenty twenty five Third Quarter Financial Results Conference Call. At this time, all participants are in a listen only mode. After the speakers’ presentation, there will be a question and answer session. To ask a question during the session, you would need to press 11 on your telephone. Conference is being recorded. I would like now to turn the conference over to Angela Bidding, Senior Vice president of corporate affairs. Please go ahead. Angela Bidding, Senior Vice President of Corporate Affairs, Twist Bioscience: Thank you, operator. Good morning, everyone. I would like to thank you for joining us for Twist Bioscience’s conference call to review our fiscal twenty twenty five third quarter financial results and business progress. We issued our financial results press release before the market, and it is available at our website at www.twistbioscience.com. With me on the call today are doctor Emily Laproust, CEO and cofounder of Twist Adam Laponis, CFO of Twist, and doctor Patrick Finn, president and COO of Twist. Today, we will discuss our business progress, financial and operating performance, as well as growth opportunities. We will then open the call for questions. We ask that you limit your questions to only one and then re queue as a courtesy to others on the call. The call is being recorded. The audio portion will be archived in the investor section of our website and will be available for two weeks. During today’s presentation, we will make forward looking statements within the meaning of The US Federal Securities Laws. Forward looking statements generally relate to future events or future financial or operating performance. Our expectations and beliefs regarding these matters may not materialize, and results in financial periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include those set forth in the press release we issued earlier today as well as those more fully described in our filings with the Securities and Exchange Commission. The forward looking statements in this presentation are based on the information available to us as of the date hereof, and we disclaim any obligations to update any forward looking statements except as required by law. We’ll also discuss adjusted EBITDA, a financial measure that does not conform with generally accepted accounting principles. Information may be calculated differently than similar non GAAP data presented by other companies. When reported, a reconciliation between the GAAP and non GAAP financial measures will be included in our earnings documents, which can be found on the Investors section of our website. With that, I will now turn the call over to Doctor. Emily Leproust, our CEO and Co Founder. Emily Leproust, CEO and Co-Founder, Twist Bioscience: Thank you, Angela, and good morning, everyone. During the fiscal twenty twenty five third quarter, we focused on delivering exceptional value for our customers, expanding our product portfolio, and extending our reach into the long tail of the academic market for our synthetic biology products and NGS tools. We added hundreds of net new customers and introduced the first in a series of planned portfolio expansions for our synbio product line, setting the stage for robust and sustained growth. Turning to our financial results, I am pleased to report another quarter of sequential growth and record performance across revenue, gross margin and adjusted EBITDA. For the ’25, we reported record revenue of $96,100,000 an increase of 18% year over year. Gross margin for the quarter came in very strong at 53.4 compared to 43.3% for the 2024, demonstrating the leverage of fixed costs with higher volume, some benefit from mix, as well as our ongoing commitment to continuous improvement. Revenue for synbio was $35,200,000 reflecting 7% year over year growth. As previously communicated, results for the same quarter last year included a significant order from a large contracted customer and an anticipated event that was not expected to recur in fiscal twenty twenty five. At the same time, several of our largest US academic customers continued to place orders with Twist, demonstrating sustained engagement while managing evolving funding dynamics. In response to this shift, we accelerated our strategy to increase market reach, driving a strong influx of net new customers to the platform and expanding our commercial footprint across a broader segment of the SynBio landscape. To better illustrate the momentum of our SynBio group, excluding the one time contribution from a large customer in the prior year quarter, underlying revenue grew more than 20% year over year. This growth highlights the strength of our customer relationships, the increased demand for Twist offering, and the impact of our efforts to diversify and extend our customer base. Turning to NGS, we reported $55,300,000 in revenue, an increase of 27% year over year, with trends coming primarily from our customers’