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Twist Bioscience Corp (TWST)·Q1 2025 Earnings Summary

Executive Summary

  • Record revenue of $88.7M (+24% YoY; +~5% QoQ) and gross margin of 48.3% (up ~780 bps YoY), marking the eighth consecutive quarter of sequential growth .
  • Full-year FY25 guidance raised: revenue to $372–$379M (from $367–$377M), gross margin to ~49% (from 48%) with 4Q >50%, and adjusted EBITDA loss improved to $(55)–$(60)M (from $(60)–$(65)M); Q2 revenue guided to $91–$93M and adjusted EBITDA ~$(16)M .
  • Segment strength: NGS $48.6M (+23% YoY), SynBio $34.4M (+28% YoY), Biopharma $5.7M; geographic mix: Americas $53.7M, EMEA $28.3M, APAC $6.7M; China ~2% of revenue .
  • Catalysts: continued Express portfolio penetration, proprietary enzyme integration, tariff-driven relative advantage vs non-U.S. competitors, and sustained margin initiatives supporting the path to adjusted EBITDA breakeven .

What Went Well and What Went Wrong

What Went Well

  • “We exceeded our guidance for revenue and margin” with record $88.7M revenue and 48.3% gross margin; 8th straight quarter of sequential growth .
  • Express portfolio driving net new accounts and wallet share expansion across fragments, clonal genes, preps, and IgG; express turnaround speed improving commercialization and margins .
  • NGS strength underpinned by liquid biopsy and rare disease; first “very significant conversion” to Twist plus sequencing underscores platform stickiness and scope .

What Went Wrong

  • SG&A rose to $56.2M (vs $52.8M YoY), with Q1 seasonality (merit and bonus payouts) elevating OpEx despite ongoing discipline .
  • Biopharma remains “cautiously optimistic”: revenue $5.7M and orders $5.9M; funnel building but still early and dependent on sustained commercial execution .
  • Macro/tariffs and academic budget pressure create uncertainty; Twist is under-indexed to NIH (small exposure) but will need to convert opportunity to share gains .

Financial Results

Income Statement and Profitability vs Prior Periods and YoY

MetricQ1 FY2024Q4 FY2024Q1 FY2025
Revenue ($USD Millions)$71.5 $84.7 $88.7
Gross Margin %40.5% 45.1% 48.3%
Cost of Revenues ($USD Millions)$42.5 $46.5 $45.9
Research and Development ($USD Millions)$23.1 $21.1 $21.3
Selling, General & Administrative ($USD Millions)$52.8 $53.1 $56.2
Net Loss ($USD Millions)$43.0 $34.7 $31.6
EPS ($USD)$(0.75) $(0.59) $(0.53)
Adjusted EBITDA ($USD Millions)$(27.8) $(17.0) $(16.3)
Total Operating Expenses ($USD Millions)$118.5 $120.8 $123.4

Segment Revenue Breakdown

Segment Revenue ($USD Millions)Q1 FY2024Q4 FY2024Q1 FY2025
SynBio$26.9 $33.9 $34.4
NGS$39.4 $45.5 $48.6
Biopharma$5.2 $5.3 $5.7

Geographic Revenue

Region Revenue ($USD Millions)Q4 FY2024Q1 FY2025
Americas$52.7 $53.7
EMEA$25.5 $28.3
APAC$6.5 $6.7
China (% of total)~2% ~2%

KPIs

KPIQ1 FY2024Q4 FY2024Q1 FY2025
Customers shipped (approx)2,140 2,402 2,376
Genes shipped (approx)171,000 N/A205,000
Cash, cash equivalents & ST investments ($USD Millions)N/A$276.4 $270.8

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue ($USD Millions)FY2025$367–$377 $372–$379 Raised
SynBio Revenue ($USD Millions)FY2025$142–$146 $144–$147 Raised
NGS Revenue ($USD Millions)FY2025$204–$209 $205–$209 Raised to top
Biopharma Revenue ($USD Millions)FY2025$21–$22 $23 Raised
Gross Margin (%)FY2025~48% (4Q 50%) ~49% (4Q >50%) Raised
Adjusted EBITDA ($USD Millions)FY2025$(60)–$(65) $(55)–$(60) Improved
Total Revenue ($USD Millions)Q2 FY2025N/A$91–$93 New/outlined
SynBio Revenue ($USD Millions)Q2 FY2025N/A$35.5–$36.0 New/outlined
NGS Revenue ($USD Millions)Q2 FY2025N/A$50–$51 New/outlined
Biopharma Revenue ($USD Millions)Q2 FY2025N/A$5.5–$6.0 New/outlined
Adjusted EBITDA ($USD Millions)Q2 FY2025N/A~$(16) New/outlined

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 FY2024 and Q4 FY2024)Current Period (Q1 FY2025)Trend
Express portfolio (genes, fragments, preps, IgG)Sequential growth; converting makers to buyers; expanded portfolio (Express antibodies, multiplexed fragments) Continued adoption and wallet share expansion; speed and price differentiators; high customer satisfaction Strengthening
Gross margin initiativesProcess automation gains; reduced plastic tips/reagents; 75–80% incremental revenue drops to GM GM 48.3%; tips initiative implemented; pipeline of COGS improvements; sequential GM improvement expected Improving
Proprietary enzymesNew enzyme roadmap; ligase outperformance in liquid biopsy; high ROI with minimal R&D resourcing Enzyme leverage for margin and product differentiation; timing baked into guidance Expanding
NGS (liquid biopsy, MRD, RNA)Strength with clinical customers; MRD uptake expected beyond FY25; RNA workflow differentiation Liquid biopsy and rare disease remain primary drivers; first conversion to Twist + sequencing; broad workflow components Steady growth
Tariffs/macro & supply chainLow NIH exposure (<1%); 100% DNA made in USA as tailwind vs competitors De minimis removal; 25% tariff on Canada/Mexico goods and 10% China affecting competitors; limited Mexico exposure; Canada DNA not tariffed Tailwind vs non-U.S. peers
Data storage (DNA)Terabit Century archive targeting early access; enzymatic chemistry shift Terabyte-scale milestones outlined; enzymatic synthesis on CMOS chips; capital allocation disciplined Progress, paced investment

Management Commentary

  • “We are pleased to report yet another quarter of strong sequential growth in both revenue and gross margin…progress towards adjusted EBITDA breakeven” — Emily Leproust, CEO .
  • “We continue to identify incremental areas of improvement in COGS…implemented [new tips approach]…seeing pull-through of those savings as one more sequential step in our positive gross margin trajectory” — Patrick Finn, President & COO .
  • “For the first quarter of fiscal 2025, adjusted EBITDA was a loss of approximately $16.3M…We are increasing our guidance for fiscal 2025” — Adam Laponis, CFO .
  • “We ship clonal genes in as few as four days…making Express shipping the default option at no additional cost [for academics]” — Press release .
  • “We expect to exit the fourth quarter of fiscal 2025 with gross margin over 50%” — Press/8-K exhibit .

Q&A Highlights

  • Path to profitability: management reiterated sequential EBITDA improvements and gross margin >50% by Q4; no equity raise planned; timing of breakeven not precisely guided yet .
  • Gross margin drivers: primary driver is revenue scale with 75–80% of incremental revenue dropping to GM; process improvements (e.g., tips) and proprietary enzymes are additive .
  • Tariffs/macro: de minimis removal and tariffs on non-U.S. DNA producers create headwinds for competitors; Twist’s U.S.-based manufacturing sustains price/speed advantages .
  • Express portfolio traction: sequential revenue improvement; conversion of makers to buyers across genes, preps, and IgG; competitive capacity/price differentiation .
  • Guidance clarity: raised FY25 revenue and margin guide; Q2 specifics provided; biopharma orders improving but early; visibility improving in SynBio later quarters .

Estimates Context

  • S&P Global consensus EPS and revenue estimates for Q1 FY2025 were unavailable at time of writing due to data access limits. We default to S&P Global as the anchor for Wall Street consensus, but could not retrieve figures in this session; please advise if you’d like us to refresh and populate the “vs estimates” comparison once accessible.
  • Implication: Company raised FY25 revenue and gross margin guidance; absent consensus figures, we expect sell-side models to update higher for FY25 revenue and adjust EBITDA loss ranges, contingent on each analyst’s framework .

Key Takeaways for Investors

  • Revenue/margin momentum intact: Q1 delivered record revenue and 48.3% GM; sequential GM expansion supported by scale and cost initiatives; path to >50% GM by Q4 FY25 is reiterated .
  • Guidance raised across headline and segments: FY25 revenue, GM, adjusted EBITDA loss ranges improved; Q2 guide shows continued top-line growth and operating leverage .
  • Express portfolio is a multi-pronged growth driver: speed plus price points converting makers to buyers across multiple product types, broadening share of wallet and supporting margins .
  • NGS franchise durability: liquid biopsy and rare disease anchor growth; first notable conversion to Twist + sequencing underscores competitive positioning .
  • Enzymes as incremental ROI/margin lever: Twist-developed enzymes improve product performance and internal COGS with limited investment; timing embedded in guidance .
  • Macro/tariff backdrop favors U.S. manufacturing: de minimis removal and tariffs likely pressure non-U.S. competitors, while Twist’s domestic supply chain mitigates customer concerns .
  • Watch biopharma: improving orders and 89 active programs, but still early-stage; consider upside optionality vs execution risk .

Appendix: Additional Context and Trend References

  • Prior quarter (Q4 FY2024) performance and initial FY25 guide: $84.7M revenue, 45.1% GM; FY25 revenue $367–$377M; GM ~48% with Q4 50%; adjusted EBITDA $(60)–$(65)M .
  • Q3 FY2024 demand signals: record $81.5M revenue; GM 43.3%; Express and NGS growth; MRD ramp expected beyond FY25; automation/efficiency initiatives underway .
  • Jan–Mar 2025 updates: academic Express shipping promotion (no premium) and agrigenomics collaboration with Curio to accelerate NGS adoption via FlexPrep UHT + software .