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Twist Bioscience Corp (TWST)·Q3 2025 Earnings Summary

Executive Summary

  • Record revenue of $96.06M (+18% YoY), gross margin expanded to 53.4% (+1,010 bps YoY); normalized EPS beat Street, while GAAP EPS of $0.33 was driven by a one-time $48.85M gain from the Atlas spin-out .
  • Revenue and normalized EPS modestly beat consensus; revenue +$0.41M vs $95.64M*, normalized EPS -$0.47 vs -$0.57*; EBITDA also better than consensus* .
  • FY25 guidance raised/narrowed: revenue to $374–$376M (from $372–$379M), gross margin to 50.5–51.0% (from 49.5%), adjusted EBITDA loss improved to $(45)–$(47)M (from $(48)–$(53)M) .
  • Near-term watch: a top-10 NGS customer transition creates a planned ~$5M revenue “air pocket” in Q4 and some Q1 impact, with management reiterating sequential growth into FY26 and MRD ramps thereafter .

What Went Well and What Went Wrong

What Went Well

  • “Another quarter of record revenue” with total revenue $96.06M (+18% YoY), and gross margin 53.4% vs 43.3% YoY, reflecting volume leverage, mix, and process improvements .
  • NGS strength: $55.3M (+27% YoY), with clinical assay customers and smaller accounts contributing; top-10 NGS accounted for ~44% of NGS revenue; 608 NGS customers and 155 adopting products in Q3 .
  • Management tone on profitability path: raised full-year margin guidance to 50.5–51.0% and reiterated adjusted EBITDA breakeven by end of FY26; “Breakeven is not the finish line. It's a platform from which we intend to accelerate.” .

What Went Wrong

  • SynBio revenue $35.2M (+7% YoY) underperformed earlier intra-quarter hopes, partly due to tough prior-year comp from a large contracted customer; underlying growth >20% ex one-time prior-year order .
  • Guidance flagged near-term NGS normalization: ~$5M revenue step-down in Q4 with some Q1 impact from a top account transitioning from validation to commercial deployment .
  • Academic market variability (EMEA NGS dip at university-led sites); management highlighted evolving funding dynamics and used promotions to offset headwinds .

Financial Results

Consolidated Financials (GAAP and Non-GAAP)

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$88.713 $92.793 $96.057
Gross Margin %48.3% 49.6% 53.4%
Net Income (Loss) ($USD Millions)$(31.594) $(39.328) $20.390
Diluted EPS (GAAP) ($USD)$(0.53) $(0.66) $0.33
Adjusted EBITDA ($USD Millions)$(16.271) $(14.830) $(7.998)

Notes: Q3 GAAP net income and EPS benefited from a $48.847M gain on sale of Atlas Data Storage ; CFO described the one-time gain and subsequent equity accounting for Atlas .

Segment Revenue

Segment ($USD Millions)Q1 2025Q2 2025Q3 2025
SynBio$34.4 $36.0 $35.2
NGS$48.6 $51.1 $55.3
Biopharma$5.7 $5.7 $5.6

Additional YoY commentary: SynBio +7%, NGS +27%, Biopharma +10% in Q3 .

KPIs and Mix

KPIQ3 2024Q2 2025Q3 2025
Customers shipped (approx.)~2,300 2,431 2,484
Genes shipped (approx.)~212,000 ~227,000 ~237,000
NGS customers served—610 608
NGS “adopted” customers—150 155
Top-10 NGS % of NGS revenue—~43% ~44%
Biopharma active programs—95 111
Biopharma orders ($USD Millions)—$6.4 $6.2

Geography (Q3 vs Q2)

Geography Revenue ($USD Millions)Q2 2025Q3 2025
Americas~$55.2 ~$59.4
EMEA~$30.6 ~$30.7
APAC~$7.0 ~$5.9
China % of total~1.5% ~1.5%

Actual vs Consensus (S&P Global)

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD)$88.71 vs $86.95 estimate*$92.79 vs $92.04 estimate*$96.06 vs $95.64 estimate*
Primary EPS (Normalized) ($USD)-0.53 vs -0.62 estimate*-0.66 vs -0.54 estimate*-0.47 vs -0.57 estimate*
EBITDA ($USD)-$28.26M vs -$34.40M estimate*-$35.16M vs -$29.20M estimate*-$24.06M vs -$26.67M estimate*

Disclaimer: * Values retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue ($USD)FY 2025$372–$379M $374–$376M Narrowed; midpoint slightly higher
Gross Margin %FY 2025~49.5% 50.5–51.0% Raised
Adjusted EBITDA ($USD)FY 2025$(48)–$(53)M $(45)–$(47)M Improved
SynBio Revenue ($USD)FY 2025$144–$147M $144–$145M Narrowed
NGS Revenue ($USD)FY 2025$205–$209M $207–$208M Raised midpoint
Biopharma Revenue ($USD)FY 2025$23M $23M Maintained
Total Revenue ($USD)Q4 2025—$96–$98M New detail
SynBio Revenue ($USD)Q4 2025—$38–$39M New detail
NGS Revenue ($USD)Q4 2025—$52–$53M New detail
Biopharma Revenue ($USD)Q4 2025—~$6M New detail
Gross Margin %Q4 2025Over 50% (Q2 commentary) 51–52% Raised specificity
Adjusted EBITDA ($USD)Q4 2025—$(6)–$(8)M New detail

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3)Trend
Gross margin expansionRoadmap to >50% by Q4; sequential improvements; process savings and internal enzymes 53.4% achieved; timing/mix aided; FY25 margin raised to 50.5–51% Improving; sustained >50% targeted
NGS clinical and MRDClinical assays drove growth; MRD small in FY25, ramps expected FY26–27 Continued clinical strength; MRD still small; capacity plans; customer transitioning causes Q4 normalization Positive medium-term; near-term normalization
SynBio executionExpress portfolio and promotions to offset academic pressure; wallet growth Adapter-off gene fragments launch; internal primer manufacturing; underlying growth >20% ex one-time Positive product innovation; near-term mixed
Academic & fundingUnder-indexed NIH; promotions; more “shots on goal” value proposition US academic orders/revenue up 10% sequentially; EMEA NGS dip in university-led sites Mixed but share gains continue
Tariffs/supply chainExposure minimized; US-sourced inputs; miniaturized chemistry reduces materials No material pull-forward in EMEA; tariffs more headwind to competitors Managed; potential share tailwind
Atlas spin-outFY25 Q2: announced spin-out with $155M funding; EBITDA and cash burn benefit One-time $48.8M gain; equity accounting going forward Portfolio focus; accounting shifts GAAP EPS

Management Commentary

  • CEO: “We delivered another quarter of record revenue... expanding our product portfolio, and deepening our reach... laying the groundwork for robust, sustained growth ahead.”
  • COO: “We did what we promised... improved margin from 31% to over 53%... approximately 75% to 80% of all incremental revenue drops to the gross margin line.”
  • CFO: “We are narrowing our total revenue guide to $374–$376M... full-year gross margin of approximately 50.5%–51%... adjusted EBITDA loss of approximately $45–$47M.”
  • CEO on strategy: “Breakeven is not the finish line. It's a platform from which we intend to accelerate.”

Q&A Highlights

  • SynBio trajectory: growth high-single-digits YoY with >20% underlying ex large prior-year order; ramp from net new customers takes time .
  • NGS normalization: ~$5M step-down in Q4 from a top account transition, with some Q1 impact; sequential growth still expected beyond .
  • Gross margin drivers: order timing contributed 1–2 points; ongoing improvements support sustained >50% margins into FY26 .
  • Academic trends: US academic orders and revenue up 10% sequentially; promotions to drive adoption; EMEA university-led clinical dip noted .
  • Tariffs: limited impact; DNA products largely exempt; competitive headwind more likely for non-US producers .

Estimates Context

  • Q3 2025: revenue $96.06M beat $95.64M*; normalized EPS -$0.47 beat -$0.57*; EBITDA -$24.06M beat -$26.67M* (small, quality beats).
  • FY25: consensus revenue ~$374.97M*, company now guiding $374–$376M; EPS normalized consensus -$1.34*, SPGI “actual” shows -$2.12* likely reflecting treatment of one-time items; investors should rely on normalized metrics for comparability .
  • Takeaway: modest positive revisions likely to FY25 gross margin and profitability trajectories; near-term EPS optics influenced by Atlas gain, so Street’s normalized EPS lens remains appropriate*.

Disclaimer: * Values retrieved from S&P Global.

Key Takeaways for Investors

  • Quality beat: revenue and normalized EPS slightly ahead of consensus; GAAP EPS positive due to one-time Atlas gain—focus on normalized EPS for ongoing performance .
  • Margin story intact: 53.4% GM achieved; FY25 GM raised to 50.5–51.0%; process and mix benefits continue .
  • Guidance improved: FY25 revenue narrowed/raised at midpoint and EBITDA loss tightened; Q4 guide detailed with GM 51–52% .
  • Near-term modeling caution: ~$5M NGS revenue normalization in Q4 and some Q1 impact from top account transition; sequential growth still expected thereafter .
  • NGS clinical and MRD optionality: clinical remains core growth driver; MRD ramps expected in FY26–27 per customer roadmaps .
  • SynBio product innovation: adapter-off gene fragments and internal primer manufacturing bolster speed, flexibility, and margin; underlying SynBio growth >20% ex one-time .
  • Portfolio focus post-Atlas: cleaner P&L and cash burn profile; equity stake offers potential upside without operational drag .

Appendix: Additional Q3 Press Releases

  • Board addition: Trynka Shineman Blake appointed to Board and Audit Committee, bringing scaled custom-product and customer experience expertise .
  • Oncology DNA CGP Panel: launched a customizable, platform-agnostic RUO CGP panel covering 562 genes, expanding NGS portfolio relevance across translational oncology .