Twist Bioscience Corporation (NASDAQ: TWST) Q3 2025 Earnings | 08/04/2025

18 days ago

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Twist Bioscience Q3 2025 Earnings Call Summary

Date: August 4, 2025
Participants:

Angela Bidding (SVP, Corporate Affairs) – Introduced the call.
Dr. Emily Leproust (CEO & Co-founder) – Highlighted financial results and strategic progress.
Dr. Patrick Finn (President & COO) – Discussed operational updates and product innovation.
Adam Lapona (CFO) – Reviewed financial performance and guidance.

Key Highlights:

1. Strong Financial Performance

Revenue: $96.1M (+18% YoY, +4% QoQ).
- SynBio: $35.2M (+7% YoY, +20% ex-one-time large order).
- NGS: $55.3M (+27% YoY, +8% QoQ), driven by clinical diagnostics and MRD (minimal residual disease) adoption.
- Biopharma: $5.6M (+10% YoY), with synergies in AI-driven drug discovery.
Gross Margin: 53.4% (vs. 43.3% YoY), driven by volume leverage, mix, and operational efficiency.
Adjusted EBITDA Loss: $8M (improved by $14M YoY).
Cash Position: $250.8M (boosted by $48.8M gain from Atlas data storage transaction).

2. Business Segment Updates

SynBio: Expanded customer base (hundreds of net new accounts), launched adapter-free gene fragments (faster delivery, improved margins).
NGS: Growth led by clinical diagnostics (44% of revenue from top 10 customers). MRD still early but accelerating.
Biopharma: Growing funnel, especially in AI drug discovery partnerships.

3. Operational & Strategic Progress

Product Innovation: New SynBio launches (e.g., gene fragments) driving 75-80% incremental gross margin flow-through.
Market Expansion:
- Academic Growth: +10% sequentially in North America.
- Geographic Mix: EMEA +30% YoY; APAC soft (China ~1.5% of revenue).
Profitability Path: Targeting adjusted EBITDA breakeven by FY2026, with sustained >50% gross margins.

4. Guidance for FY2025 & Q4

FY2025 Revenue: $374–376M (+19.7% YoY).
- SynBio: $144–145M (+17% YoY).
- NGS: $207–208M (+23% YoY).
Q4 Revenue: $96–98M (+14.5% YoY).
- NGS normalization: $5M impact from a top customer transitioning to commercial deployment (temporary Q4/Q1 slowdown).
Gross Margin: 50.5–51% for FY2025 (up from prior guide).
Adjusted EBITDA Loss: $45–47M (improving YoY).

Key Takeaways:

Growth Drivers: Clinical NGS adoption, SynBio product launches, and biopharma-AI synergies.
Margin Expansion: Operational efficiency and volume leverage sustaining >50% gross margins.
Long-Term Focus: Balancing top-line acceleration with profitability (breakeven target in 2026).
Risks: Short-term NGS customer transition (Q4/Q1), but diversified portfolio mitigates volatility.

Closing: Twist emphasized resilience through innovation, customer diversification, and disciplined execution.

About this video

Twist Bioscience Corporation delivered a remarkable Q3 2025, swinging to a GAAP net profit of $20.4 million ($0.33 per diluted share) from a net loss of $85.6 million ($1.47 loss per share) in the prior year, largely aided by a $48.8 million one-time gain from the sale of its Atlas Data Storage business. Revenue climbed 18% year-over-year to a record $96.1 million, with Next Generation Sequencing (NGS) revenues jumping 27% to $55.3 million, Synthetic Biology up 7% at $35.2 million, and Biopharma contributing $5.6 million (+10%). Customer count rose to approximately 2,484, and gene shipments reached 237,000 units. Gross margin expanded sharply to 53.4%, up from 43.3% in Q3 2024, reflecting higher factory utilization and process efficiencies. Adjusted EBITDA loss narrowed to $(8) million from $(22) million a year ago. Excluding the Atlas sale, the company posted a non-GAAP net loss of $29 million, or a loss of $0.47 per share, still showing substantial operational improvement. Management updated fiscal 2025 guidance, narrowing expected revenue to $374–$376 million and raising gross margin guidance to 50.5–51%. Adjusted EBITDA loss is now forecast between $(45)–$(47) million (improved from prior guidance). Q4 revenue is projected at $96–$98 million with gross margin of 51–52%, and the company reaffirmed its target for adjusted EBITDA breakeven by the end of fiscal 2026. Twist continues to drive strategic growth through innovation—launching new Express gene fragment options, expanding NGS partnerships, and spinning out its DNA data storage operations for long-term royalties and equity. The company remains focused on scaling its bioscience platform through technology advances and disciplined operational execution. About Inside Ticker: For more expert analysis and real-time updates on Twist Bioscience Corporation (NASDAQ: TWST) and other market movers, follow Inside Ticker and visit http://www.insideticker.com/ for in-depth reports, financial insights, and the latest news on leading companies. #TwistBioscience #TWST #Q32025 #Earnings #FinancialResults #RevenueGrowth #Profitability #NextGenSequencing #SyntheticBiology #Biopharma #AtlasDataStorage #GrossMargin #GeneSynthesis #Innovation #CustomerGrowth #Guidance #CashFlow #DNADataStorage #InsideTicker #2025Outlook

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