Twist Bioscience Corporation

What they do

Twist writes DNA on silicon chips, miniaturizing chemical synthesis to produce over 1,000,000 oligonucleotides up to 500 bases per chip while using an estimated 99.8% less chemicals per gene than plate-based synthesis. It sells synthetic genes, NGS sample-preparation tools, and antibody discovery and optimization services through direct sales forces and an e-commerce platform. Customers span healthcare, chemicals/materials, food/agriculture, and academic research, supported by a manufacturing facility in Wilsonville, Oregon.

Revenue drivers

• NGS Applications — NGS tools used to prepare patient samples for sequencing generated $61.8 million in Q3 FY26, up 12% year over year, and are the larger of the two reported product lines.
• DNA Synthesis and Protein Solutions (DSPS) — Synthetic DNA, RNA, protein and biopharma discovery offerings generated $56.6 million in Q3 FY26, up 39% year over year and 6% sequentially.
• Healthcare end market — The healthcare sector produced $215.1 million, or about 57%, of FY2025 revenue of $376.6 million.
• Chemicals/materials and academic research — These sectors contributed $93.2 million and $65.9 million of FY2025 revenue respectively; food/agriculture was $2.4 million.

Recent performance

Q3 FY26 revenue was a record $118.4 million, up more than 23% from $96.1 million in Q3 FY25 and the 14th consecutive quarter of sequential growth. DSPS rose 39% to $56.6 million and NGS rose 12% to $61.8 million. Gross margin was 52.8%, up 120 basis points sequentially. Net loss was $35.1 million, or $0.56 per diluted share, against net income of $20.4 million a year earlier that had included a $48.8 million gain from the Atlas Data Storage spin out. Adjusted EBITDA was negative $11.3 million.

Strategy

Twist is moving up the value chain from fragments to genes to preps to proteins, tightening the link between its SynBio and Biopharma products as more customers use both. It sold its DNA data storage business to Atlas Data Storage to let each company focus on its own products and customers. It raised FY2026 revenue guidance to $456-$457 million and reiterated expectations of reaching adjusted EBITDA breakeven in Q4 FY26, which management calls a foundation for profitable growth into fiscal 2027. New commercial efforts include broad launch of Twist Complex Genes and a Comprehensive Viral Research Panel. It also hosted an inaugural Investor Day at its Wilsonville, Oregon site.

Risks

• No profitability to date — The company has incurred net losses in every period, reported a $77.7 million net loss in FY2025 and an accumulated deficit of $1,319.6 million, and may never achieve profitability.
• Customer concentration — The company states that revenue, cash flows and reputation could suffer from the loss of a limited number of large customers.
• Single-source supplier — Twist depends on one single-source supplier for a critical component of its DNA synthesis process, and a supply failure could delay future capacity.
• Competitive and technology change — Twist operates in a highly competitive industry where rapidly changing technology could make its synthetic biology products obsolete or non-competitive.

Outlook

Management guides FY2026 total revenue to $456-$457 million, about 21% growth year over year and an increase of $12 million at the midpoint versus prior guidance. Gross margin is expected above 52%. The company reiterates that it expects to achieve adjusted EBITDA breakeven in Q4 FY26, which it frames as the foundation for disciplined execution and profitable growth in fiscal 2027.