Twist Bioscience Q2 2025 slides: revenue grows 23%, margins approach 50% target

Introduction & Market Context

Twist Bioscience Corporation (NASDAQ:TWST) presented its fiscal second quarter 2025 results on May 5, 2025, highlighting continued revenue growth across all business segments and steady progress toward profitability. The synthetic DNA manufacturer reported revenue of $92.8 million for the quarter, meeting its guidance range, while showing improved margins and reduced EBITDA losses.

The company’s performance builds on its strong finish to fiscal 2024, when it reported 28% year-over-year growth. Twist’s stock closed at $39.24 on May 2, 2025, up 4.06% for the day, though it was trading down slightly in premarket activity following the results.

Quarterly Performance Highlights

Twist Bioscience reported Q2 FY2025 revenue of $92.8 million, meeting the company’s guidance of approximately $91-93 million. Adjusted EBITDA came in at $(14.8) million, beating guidance of $(16) million, while gross margin reached 49.6%, continuing the company’s progress toward its target of exceeding 50% by the end of fiscal 2025.

As shown in the following chart of quarterly revenue growth, Twist has demonstrated consistent revenue expansion across its business segments:

The company’s revenue was distributed across three main business segments:

1. SynBio Write: $36.0 million (21% year-over-year growth), with approximately 227,000 genes shipped

2. NGS Read: $51.1 million (25% year-over-year growth)

3. Biopharma Solutions: $5.7 million (21% year-over-year growth), with $6.4 million in orders

Twist’s geographic revenue diversification continues to expand, with growth across the Americas, EMEA, and APAC regions, as illustrated in the presentation:

Detailed Financial Analysis

The company’s financial performance showed continued improvement in key metrics. Gross margin reached 49.6%, approaching the company’s target of exceeding 50% by the end of fiscal 2025. Operating expenses included $23.9 million in R&D and $63.7 million in SG&A for the quarter.

Twist maintained a strong cash position with $257.1 million in cash, cash equivalents, and short-term investments as of March 31, 2025. Net loss attributable to common stockholders was $(39.3) million for the quarter.

The company’s progress toward breakeven is evident in its Adjusted EBITDA trend, which shows steady improvement from $(45.5) million in Q2 FY2023 to $(14.8) million in the current quarter:

This improvement aligns with the company’s strategy of crossing the threshold to profitability through continued revenue and margin growth, operational execution, and platform enhancements. As illustrated in the presentation:

Strategic Initiatives

A significant development highlighted in the presentation was the launch of Atlas Data Storage with $155 million in funding from prominent investors including ARCH Venture Partners, Deerfield Management, Bezos Expeditions, and others. This venture aims to commercialize DNA-based data storage technology, with leadership from Varun Mehta (CEO), Bill Banyai (CTO), and George Kadifa (Executive Chairman).

The company’s biopharma business continues to expand, now encompassing 406 partners with 95 active programs and 82 milestones/royalties. The presentation highlighted the diverse disease indications and modalities being addressed:

Twist is also advancing product innovation across all business segments, with several new offerings in development:

Forward-Looking Statements

Twist Bioscience provided guidance for the remainder of fiscal 2025, projecting continued growth and margin improvement:

For Q3 FY2025, the company expects:

• Revenue of approximately $94-97 million
• SynBio revenue of $37-39 million
• NGS revenue of $51-52 million
• Biopharma revenue of approximately $6 million
• Adjusted EBITDA of approximately $(13) million

For full fiscal year 2025, Twist projects:

• Revenue of $372-379 million
• SynBio revenue of $144-147 million
• NGS revenue of $205-209 million
• Biopharma revenue of approximately $23 million
• Adjusted EBITDA of $(48-53) million
• Gross margin exceeding 50% by Q4 FY2025

The company’s vision for its next chapter focuses on continued revenue and margin growth, strong operational execution, platform enhancements, market expansion, and leveraging its core strengths:

Twist Bioscience’s Q2 FY2025 results demonstrate steady progress toward its financial goals, with consistent revenue growth across all segments and improving margins. The launch of Atlas Data Storage represents a significant strategic expansion, while the company’s continued product innovation and operational improvements position it well for future growth. As Twist approaches its target of 50% gross margin and continues to reduce EBITDA losses, investors will be watching closely for signs of the company reaching its profitability inflection point.

Full presentation:

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