Twist Bioscience Q3 2025 slides: revenue hits $96.1M as margins exceed 50% target

Introduction & Market Context

Twist Bioscience (NASDAQ:TWST) released its fiscal third quarter 2025 financial results on August 4, 2025, showcasing continued progress toward profitability with improved margins and reduced losses. The synthetic biology company reported revenue of $96.1 million, meeting its guidance range of $94-97 million, while its gross margin exceeded the 50% target ahead of schedule.

The company’s stock closed at $33.68 on August 1, 2025, and showed a slight decline of 0.53% in premarket trading to $33.50. Twist’s shares have traded within a 52-week range of $27.12 to $55.33, with the current price sitting near the middle of this range.

Quarterly Performance Highlights

Twist Bioscience reported solid financial results for Q3 FY2025, meeting revenue expectations while exceeding targets for gross margin and adjusted EBITDA. The company achieved $96.1 million in revenue, a 53.4% gross margin, and an adjusted EBITDA loss of $8.0 million, which beat the company’s guidance of a $13 million loss.

As shown in the following quarterly highlights:

The company also reported a gain from sale of business of $48.8 million, contributing to a net income attributable to common stockholders of $20.4 million. This marks a significant improvement in the company’s overall financial position, with cash, cash equivalents, and short-term investments totaling $250.8 million as of June 30, 2025.

Segment Performance Analysis

Twist Bioscience’s business is divided into three main segments, each showing year-over-year growth in the third quarter. The NGS ( Next (LON:NXT) Generation Sequencing) Read segment led growth with a 27% increase compared to the same period last year.

The NGS Read business generated $55.3 million in revenue, benefiting from an expanded collaboration with Element Biosciences. Future initiatives for this segment include RNA sequencing workflow, liquid biopsy applications, and regulated products.

As illustrated in the NGS segment performance:

The SynBio Write segment contributed $35.2 million in revenue, growing 7% year-over-year. During the quarter, the company shipped approximately 237,000 genes and expanded Express turnaround time for all Gene Fragments. Upcoming developments include the launch of manufacturing in Wilsonville, Oregon, Express Genes, and additional Express products.

The Biopharma Solutions segment, while smaller at $5.6 million in revenue, achieved 10% year-over-year growth with $6.2 million in orders. A key highlight was the launch of a humanized transgenic mouse model. The company maintains partnerships with 430 organizations across 111 active programs, with 82 potential milestone or royalty opportunities.

Financial Progress Toward Profitability

Twist Bioscience has demonstrated consistent progress toward profitability over the past several quarters. The company’s adjusted EBITDA loss has steadily decreased from $29.6 million in Q3 FY2023 to just $8.0 million in the current quarter, while gross margins have improved from 34.4% to 53.4% during the same period.

The following chart illustrates this trajectory toward breakeven:

This improvement aligns with the company’s previously stated goal of achieving EBITDA breakeven by the end of fiscal 2026. The strong revenue growth across quarters has been a key driver of this progress, as shown in the revenue trend visualization:

CEO Emily Leproust had emphasized in the previous quarter’s earnings call that the company views the current environment "not just as something to manage through, but the chance to accelerate our impact and strengthen our competitive position." The Q3 results suggest this strategy is yielding positive results.

Forward Guidance and Strategic Initiatives

Looking ahead, Twist Bioscience provided guidance for both Q4 FY2025 and the full fiscal year. For Q4, the company expects revenue of approximately $96-98 million with gross margins of 51-52% and an adjusted EBITDA loss of $6-8 million. For the full fiscal year 2025, Twist projects revenue of $374-376 million, gross margins of 50.5-51%, and an adjusted EBITDA loss of $45-47 million.

The detailed guidance is presented below:

The company’s path to profitability is supported by several strategic initiatives, including continued revenue and margin growth, operational and commercial execution, platform enhancements, and market expansion. Twist is also focusing on product innovation across all three business segments, with developments such as long gene fragments, tumor-informed MRD (Minimal Residual Disease), and AI/ML affinity maturation.

As Twist Bioscience continues to execute on its strategic plan, the company appears well-positioned to capitalize on growing markets while improving operational efficiency. The achievement of gross margins exceeding 50% ahead of schedule suggests the company may be able to reach EBITDA breakeven earlier than anticipated if current trends continue.

Full presentation:

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