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Twist Bioscience Corp (TWST)·Q4 2025 Earnings Summary

Executive Summary

  • Record Q4 FY2025 revenue of $99.0M, up 17% YoY; revenue beat S&P Global consensus ($97.36M*) while EPS (-$0.45) modestly missed consensus (-$0.417*) .
  • Gross margin of 51.3% (vs 45.1% PY, 53.4% in Q3); sequential moderation driven by mix and a temporary NGS customer transition; management expects FY2026 GM >52% and to exit FY2026 at adjusted EBITDA breakeven .
  • Segment strength: SynBio $39.5M (+17% YoY), NGS $53.0M (+16% YoY), Biopharma $6.4M (+22% YoY); EMEA grew 35% YoY to $34.6M, highlighting international momentum .
  • FY2026 guidance: total revenue $425–$435M, DNA Synthesis & Protein Solutions $194–$199M (new combined segment), NGS Applications $231–$236M; Q1 FY2026 revenue $100–$101M; path back to ~20% NGS growth by Q4 on a large diagnostic ramp and early MRD contribution .
  • Near-term stock catalysts: large AI drug discovery order (record PO), new MRD Express product (12-hour turnaround) and platform partnerships (Element Trinity Freestyle, sequencer-agnostic traction) .

What Went Well and What Went Wrong

What Went Well

  • Record quarter and 11th consecutive sequential growth; FY revenue hit $376.6M (+20% YoY), with GM up 8.1 margin points YoY to 50.7% .
  • AI-enabled drug discovery demand accelerated; AI project orders increased >$25M YoY, including Twist’s single largest purchase order; management emphasized convergence of SynBio and Biopharma into “DNA synthesis and protein solutions” .
  • International outperformance: EMEA revenue rose to $34.6M (+35% YoY), with Americas $57.3M (+9% YoY) and APAC $7.2M (+9% YoY); China ~1% of FY revenue, limiting macro exposure .
  • Quote: “We have successfully positioned the business for continued profitable growth…Fiscal 2026 is about translating our margin strength into durable revenue growth.” — CEO Emily Leproust .

What Went Wrong

  • Sequential GM compression to 51.3% from 53.4% in Q3, driven by customer mix and an NGS customer transition timing; management guided improvements through FY2026 .
  • NGS guide perceived below Street for FY2026 (11–13.5% growth); air pocket continuing into Q1 before ramp in Q2; underlying NGS ex-large customer ~20% growth in FY2025 .
  • Operating expenses (ex-CoR) rose YoY in Q4 to $80.8M; focus remains on revenue growth while sustaining margin discipline; adjusted EBITDA still negative in Q4 at $(7.8)M despite YoY improvement .

Financial Results

Headline Metrics vs Prior Periods

MetricQ4 2024Q3 2025Q4 2025
Revenue ($USD Millions)$84.7 $96.1 $99.0
Gross Margin (%)45.1% 53.4% 51.3%
Net Income (Loss) ($USD Millions)$(34.7) $20.4 $(27.1)
Diluted EPS ($USD)$(0.59) $0.33 $(0.45)

Segment Revenue

Segment ($USD Millions)Q4 2024Q3 2025Q4 2025
SynBio$33.9 $35.2 $39.5
NGS$45.5 $55.3 $53.0
Biopharma$5.3 $5.6 $6.4

Geographic Revenue

Geography ($USD Millions)Q4 2024Q3 2025Q4 2025
Americas$52.7 $59.4 $57.3
EMEA$25.5 $30.7 $34.6
APAC$6.5 $5.9 $7.2

KPIs

KPIQ3 2025Q4 2025
NGS Top 10 customer concentration (% of NGS revenue)44% 39%
NGS customers served (count)610 588
NGS product adopters (count)150 159
Biopharma orders ($USD Millions)$6.2 $11.5
Active biopharma programs (count)111 84
New biopharma programs started (count)88 47
Adjusted EBITDA ($USD Millions)$(8.0) $(7.8)
Cash, cash equivalents & ST investments ($USD Millions)$250.8 $232.4
Net cash used in operating activities (LTM, $USD Millions)—$47.6
Capital expenditures (FY, $USD Millions)—$28.0

Estimate Comparison (Q4 2025)

MetricQ4 2025 Consensus*Q4 2025 Actual
Revenue ($USD)$97.36M*$99.01M
Primary EPS ($USD)$(0.417)*$(0.45)

Values retrieved from S&P Global.*

Guidance Changes

FY2026 and Q1 FY2026

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue ($USD)FY2026N/A$425–$435M New
DNA Synthesis & Protein Solutions Revenue ($USD)FY2026N/A$194–$199M New
NGS Applications Revenue ($USD)FY2026N/A$231–$236M New
Gross Margin (%)FY2026N/A>52% New
Adjusted EBITDAQ4 FY2026Breakeven by end FY2026 (prior narrative) Breakeven (exit Q4) Maintained
Total Revenue ($USD)Q1 FY2026N/A$100–$101M New
NGS growth trajectoryFY2026N/APath back to ~20% YoY by Q4 New
MRD contribution (ppt to NGS growth)FY2026N/A~1–2 ppt New

Q4 FY2025 Guidance vs Actual

MetricPeriodPrevious GuidanceActualChange
Total Revenue ($USD)Q4 FY2025$96–$98M $99.0M Beat
Gross Margin (%)Q4 FY202551–52% 51.3% In-line
SynBio Revenue ($USD)Q4 FY2025~$38–$39M $39.5M Beat
NGS Revenue ($USD)Q4 FY2025~$52–$53M $53.0M In-line
Biopharma Revenue ($USD)Q4 FY2025~$6M $6.4M In-line to Beat
Adjusted EBITDA ($USD)Q4 FY2025$(6)–$(8)M $(7.8)M In-line

Earnings Call Themes & Trends

TopicQ2 FY2025 (Q-2)Q3 FY2025 (Q-1)Q4 FY2025 (Current)Trend
AI/Technology initiativesSpun out DNA data storage (Atlas); internal enzyme development for workflows Expanded Express genes; capacity and margin initiatives; Element collaboration expanded AI-driven orders +$25M YoY; largest PO; segment rebrand to DNA synthesis & protein solutions Accelerating AI demand; deeper integration across products/services
Supply chain & tariffs/macroTariff exposure minimized by US sourcing and miniaturization; viewed as tailwind vs competitors No material pull-forward in EMEA; resilient multi-end market exposure Cautious macro stance in guide; stability assumed; growth driven by specific ramps Manageable; company-specific resilience
Product performance (NGS)25% YoY NGS growth; focus on clinical diagnostics; agbio FlexPrep push 27% YoY NGS; clinical assays drive; air pocket from large customer into Q4/Q1 NGS $53M (+16% YoY); air pocket continues in Q1; back to ~20% YoY by Q4 Temporary Q1 softness; re-acceleration in 2H FY2026
MRD initiativesCapacity +200%, TAT -20% to prep for bespoke MRD Many MRD customers moving toward commercial; sequencing-agnostic MRD Express: 12-hour tumor-informed panels; ~1–2 ppt NGS growth in FY2026 Building toward late-2026/2027 ramps
Regional trendsAmericas +20% YoY; EMEA +38%; APAC flat Americas +16% YoY; EMEA +30% YoY; APAC down YoY EMEA +35% YoY; Americas +9% YoY; APAC +9% YoY EMEA strength consistent
Academic market & SynBioAcademic promo (Express pricing parity); wallet program; 20% YoY academic growth SynBio underlying >20% YoY ex one-time prior-year order; broad reach SynBio $39.5M (+17% YoY); academic promo ongoing; stronger gene volumes Continued share gains; pricing strategy effective
Partnerships & platformsCollaboration with Curio Genomics; sequencer-agnostic strategy Element AVITI workflow integration; Ultima, PacBio, ONT traction Element Trinity Freestyle: sample-to-sequencer ~5 hours, exclusive access; OEM with Illumina Platform breadth expanding
Regulatory/biosecurity——Science publication on AI biosecurity screening; industry leadership Proactive stance; reputational strength

Management Commentary

  • “With gross margins now above 50%, we have successfully positioned the business for continued profitable growth…Fiscal 2026 is about translating our margin strength into durable revenue growth.” — CEO Emily Leproust .
  • “We expect gross margin to be above 52% for fiscal 2026, and we expect to exit fiscal 2026 with our fourth quarter achieving adjusted EBITDA breakeven.” — CFO Adam Laponis .
  • “Our MRD Express solution provides the speed and simplicity of a tumor-naive test while maintaining the precision and sensitivity of a tumor-informed assay…manufacture and ship…as fast as 12 hours.” — President/COO Patrick Finn .
  • “We will combine Synbio and Biopharma revenue…under the term DNA synthesis and protein solutions…Our NGS tools will now be called NGS applications…” — CEO Emily Leproust .

Q&A Highlights

  • Gross margin incrementals: management expects long-run 75–80% of incremental revenue to drop to GM on average, with quarter-to-quarter mix noise; focus shifting to optimizing gross profit dollars .
  • NGS outlook: temporary “air pocket” continues in Q1 due to a large diagnostic transition; sequential growth from Q2; back to ~20% YoY by Q4 FY2026; MRD contributes ~1–2 ppt to FY2026 NGS growth .
  • MRD Express scope & pricing: Twist is an enabler (does not run tests); pricing not yet set; value proposition anchored on 12-hour turnaround and supply chain resiliency .
  • Academic promotion: Express pricing parity for academics persists given success; supports SynBio gene volume and stickiness .
  • Segment reclassification rationale: better reflects integrated customer workflows; expected synergies (1+1=3) across DNA synthesis and protein solutions .

Estimates Context

  • Revenue beat: $99.01M actual vs $97.36M S&P Global consensus*; EPS miss: -$0.45 actual vs -$0.417 S&P Global consensus* .
  • Forward estimate implications: NGS growth trajectory and MRD contribution suggest potential upward revisions for 2H FY2026 growth assumptions, while Q1 softness may temper near-term estimates .

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Revenue resilience with a modest EPS miss; sequential GM moderation tied to mix and customer transition, with FY2026 GM guided >52% and EBITDA breakeven by Q4 — supportive of a profitability inflection narrative .
  • Strength in EMEA and continued clinical diagnostic traction buttress NGS despite near-term air pocket; expect re-acceleration from Q2 FY2026 and ~20% YoY by Q4 .
  • AI-driven drug discovery is emerging as a material demand driver, validating Twist’s integrated platform and combined DNA synthesis/protein solutions segment framing .
  • MRD Express’s 12-hour turnaround is strategically differentiated and could catalyze diagnostic adoption over 2026–2027; early FY2026 contribution (~1–2 ppt to NGS growth) builds the base .
  • Platform partnerships (Element Trinity Freestyle) and sequencer-agnostic approach enhance moat and customer lock-in across workflows .
  • Watch Q1 FY2026: guidance embeds NGS transition headwind; look for sequential growth resume from Q2 and margin progression aligned with volume .
  • Cash of ~$232M and improving operating cash burn offer flexibility to invest in growth initiatives without near-term financing pressure .