Earnings call transcript: Twist Bioscience Q3 2025 sees revenue rise 18%

Twist Bioscience Corp (TWST) reported its Q3 2025 earnings, showing a significant 18% year-over-year increase in revenue, reaching $96.1 million. Despite this growth, the company’s stock saw a decline of 5.58% in premarket trading, with shares priced at $31.80. The stock has experienced significant volatility, with a beta of 2.42 and a 27.5% decline year-to-date according to InvestingPro data. This reaction comes as the company posted an adjusted EBITDA loss of $8 million, although this was an improvement from the previous fiscal year.

Key Takeaways

• Twist Bioscience’s revenue grew by 18% year-over-year, driven by strong performance in its NGS segment.
• The company improved its gross margin to 53.4%, up from 43.3% in the previous year.
• Despite revenue growth, Twist Bioscience reported an adjusted EBITDA loss of $8 million.
• Premarket trading saw the company’s stock fall by 5.58%.

Company Performance

Twist Bioscience showed robust performance in Q3 2025, with revenue reaching $96.1 million, marking an 18% increase from the same quarter last year. The company’s gross margin improved significantly to 53.4%, reflecting enhanced operational efficiencies and cost management. The NGS segment was a standout, with a 27% year-over-year growth, contributing $55.3 million to the total revenue. InvestingPro analysis shows the company maintains strong financial health with a current ratio of 4.51, indicating robust liquidity. Despite these gains, the company continues to face challenges in achieving profitability, as evidenced by the adjusted EBITDA loss.

Financial Highlights

• Revenue: $96.1 million, up 18% year-over-year
• Gross Margin: 53.4%, up from 43.3% in FY2024
• Synbio Revenue: $35.2 million, 7% YoY growth
• NGS Revenue: $55.3 million, 27% YoY growth
• Biopharma Services Revenue: $5.6 million, 10% YoY growth
• Adjusted EBITDA Loss: $8 million, improved by $14 million compared to FY2024

Market Reaction

Following the earnings announcement, Twist Bioscience’s stock price dropped by 5.58% in premarket trading, settling at $31.80. This decline comes despite the company’s positive revenue growth and improved gross margins. According to InvestingPro, which offers 8 additional valuable insights about TWST, the stock has taken a significant hit over the last week, dropping 7.8%. The stock’s movement could reflect investor concerns over the continued adjusted EBITDA losses and the broader market sentiment towards biotech firms. InvestingPro’s comprehensive analysis indicates the stock is currently trading near its Fair Value.

Outlook & Guidance

Twist Bioscience provided guidance for the remainder of FY2025, projecting total revenue between $374 million and $376 million, which would represent a growth rate of approximately 19.7%. The company expects its gross margin to be in the range of 50.5% to 51%, with an adjusted EBITDA loss between $45 million and $47 million. Key growth areas include Synbio and NGS, with revenue guidance set at $144 million to $145 million and $267 million to $268 million, respectively.

Executive Commentary

CEO Emily Leproust highlighted the company’s innovative capabilities, stating, "We turned complexity into opportunity." President and COO Patrick Finn emphasized the competitive edge of Twist Bioscience’s technology, noting, "Our technology advantage gives us a product and a value proposition that resonates for the customer." These comments underscore the company’s strategic focus on leveraging its technology to drive growth and customer engagement.

Risks and Challenges

• Continued adjusted EBITDA losses could impact investor confidence.
• Market saturation in key segments like NGS might limit growth potential.
• Macroeconomic pressures and currency fluctuations could affect international sales.
• The competitive landscape in the biotech sector remains intense, requiring continuous innovation.

Q&A

During the earnings call, analysts inquired about the company’s strategies for sustaining growth in the Synbio and NGS markets. Management addressed these concerns by outlining plans for product innovation and expansion into new geographic markets. Additionally, questions were raised about the challenges in international markets, which the company acknowledged as a focus area for improvement.

Full transcript - Twist Bioscience Corp (TWST) Q3 2025:

Conference Operator: Ladies and gentlemen, thank you for standing by. Welcome to Twist Bioscience’s twenty twenty five Third Quarter Financial Results Conference Call. At this time, all participants are in a listen only mode. After the speakers’ presentation, there will be a question and answer session. To ask a question during the session, you would need to press 11 on your telephone.

Conference is being recorded. I would like now to turn the conference over to Angela Bidding, Senior Vice president of corporate affairs. Please go ahead.

Angela Bidding, Senior Vice President of Corporate Affairs, Twist Bioscience: Thank you, operator. Good morning, everyone. I would like to thank you for joining us for Twist Bioscience’s conference call to review our fiscal twenty twenty five third quarter financial results and business progress. We issued our financial results press release before the market, and it is available at our website at www.twistbioscience.com. With me on the call today are doctor Emily Laproust, CEO and cofounder of Twist Adam Laponis, CFO of Twist, and doctor Patrick Finn, president and COO of Twist.

Today, we will discuss our business progress, financial and operating performance, as well as growth opportunities. We will then open the call for questions. We ask that you limit your questions to only one and then re queue as a courtesy to others on the call. The call is being recorded. The audio portion will be archived in the investor section of our website and will be available for two weeks.

During today’s presentation, we will make forward looking statements within the meaning of The US Federal Securities Laws. Forward looking statements generally relate to future events or future financial or operating performance. Our expectations and beliefs regarding these matters may not materialize, and results in financial periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include those set forth in the press release we issued earlier today as well as those more fully described in our filings with the Securities and Exchange Commission. The forward looking statements in this presentation are based on the information available to us as of the date hereof, and we disclaim any obligations to update any forward looking statements except as required by law.

We’ll also discuss adjusted EBITDA, a financial measure that does not conform with generally accepted accounting principles. Information may be calculated differently than similar non GAAP data presented by other companies. When reported, a reconciliation between the GAAP and non GAAP financial measures will be included in our earnings documents, which can be found on the Investors section of our website. With that, I will now turn the call over to Doctor. Emily Leproust, our CEO and Co Founder.

Emily Leproust, CEO and Co-Founder, Twist Bioscience: Thank you, Angela, and good morning, everyone. During the fiscal twenty twenty five third quarter, we focused on delivering exceptional value for our customers, expanding our product portfolio, and extending our reach into the long tail of the academic market for our synthetic biology products and NGS tools. We added hundreds of net new customers and introduced the first in a series of planned portfolio expansions for our synbio product line, setting the stage for robust and sustained growth. Turning to our financial results, I am pleased to report another quarter of sequential growth and record performance across revenue, gross margin and adjusted EBITDA. For the ’25, we reported record revenue of $96,100,000 an increase of 18% year over year.

Gross margin for the quarter came in very strong at 53.4 compared to 43.3% for the 2024, demonstrating the leverage of fixed costs with higher volume, some benefit from mix, as well as our ongoing commitment to continuous improvement. Revenue for synbio was $35,200,000 reflecting 7% year over year growth. As previously communicated, results for the same quarter last year included a significant order from a large contracted customer and an anticipated event that was not expected to recur in fiscal twenty twenty five. At the same time, several of our largest US academic customers continued to place orders with Twist, demonstrating sustained engagement while managing evolving funding dynamics. In response to this shift, we accelerated our strategy to increase market reach, driving a strong influx of net new customers to the platform and expanding our commercial footprint across a broader segment of the SynBio landscape.

To better illustrate the momentum of our SynBio group, excluding the one time contribution from a large customer in the prior year quarter, underlying revenue grew more than 20% year over year. This growth highlights the strength of our customer relationships, the increased demand for Twist offering, and the impact of our efforts to diversify and extend our customer base. Turning to NGS, we reported $55,300,000 in revenue, an increase of 27% year over year, with trends coming primarily from our customers’ commercial assays for diagnostic tests, as well as growth in smaller accounts. Landing these smaller customers remains critical to our long term growth strategy as these accounts have the potential to become large accounts in the future. We continue to work with many minimal residual disease customers in various stages of their development and commercialization.

We see this growth level inflicting over time, following a similar pattern of growth that we have seen from our customers offering liquid biopsy tests. Turning to biopharma services, our revenue was $5,600,000 growth of 10% year over year, with orders of 6,200,000. We remain cautiously optimistic as the funnel of opportunities continues to build. We continue to see synergies between our biopharma services and our SynBio business, particularly within large pharma accounts where we see them purchase products and contract services to support their ongoing research efforts. In addition, the exponential growth of AI drug discovery generates significant opportunity for us as we offer a spectrum of products and services to accelerate this new wave of growth for the industry.

I would now like to turn the call over to Paddy for commentary on operations and innovation. Thanks Emily.

Patrick Finn, President and COO, Twist Bioscience: I’d like to take a few minutes to dive deeper into how we think about expanding our product portfolio by focusing on our recent launch of gene fragments shipped standard without adapters. In 2023, we began shipping oligo pools, gene fragments, clonal genes and more out of our Wilsonville, Oregon facility. Building on this infrastructure, we introduced Xpress genes and expanded that product line to include DNA preps and high throughput IgG protein. We continue to iterate and add to our portfolio of Symbiote products that build on this manufacturing line that truly highlights the power of our platform technology and their ability to leverage the speed, cost efficiency, quality and diversity to anticipate customer needs. This enhanced manufacturing line for our SynBio products augmented our SynBio contribution margin so that across our business, regardless of product line, approximately 75% to 80% of all incremental revenue drops to the gross margin line.

Last month, we activated a new growth lever in a high potential area of our portfolio by launching improved Adapter Off gene fragments. Since entering the commercial market in 2015, we’ve offered gene fragments as part of our core product offering. Historically, our manufacturing process included adapters with an option to remove them, a step that required primer sourced externally, which extended turnaround time. When one of two primer suppliers stopped shipping to us last year, our team quickly pivoted. In under twelve months, we developed and scaled an internal primer manufacturing process, allowing us to streamline production and enhance control across the workflow.

Today, we offer gene fragments without adapters as a default, while providing adapter add ons as needed, giving customers more flexibility with faster delivery. This initiative strengthens our supply chain, enhances vertical integration and builds on our existing infrastructure. With a modest investment of under $3,000,000 and exceptional execution by our team, we’ve unlocked an opportunity to grow share in a large serviceable and addressable market. We view this as a meaningful growth engine for Twist, reinforcing our competitive edge and operational agility. This is a clear example of how we execute on portfolio expansion and product innovation.

Over the next twelve months, we expect a series of new product launches in synthetic biology to unlock new market opportunities and expand our share in existing segments. We remain focused on broadening our offering and driving top line growth while continuing to invest in differentiated high impact innovation that fuels long term value creation. Turning to gross margin. In a little over two years, we did what we promised we would do in 2023, an improved margin from 31% to over 53%. We’ve driven this initiative through expanded revenue, volume leverage, as well as iteration of processes to increase contribution margin.

In parallel, we are investing in innovation to sustain continued robust growth across the business for the foreseeable future. As we look toward crossing the threshold of adjusted EBITDA breakeven, we see this as an important operational milestone to validate the strength and diversity of our platform, balanced with physical discipline. Breakeven is not the finish line. It’s a platform from which we intend to accelerate. We’ll continue to manage the business, redoubling our efforts to continue to drive robust top line growth.

At this time, I’d like to turn the call over to Adam to discuss our financials.

Adam Laponis, CFO, Twist Bioscience: Thank you, Patty. Revenue for the 2025 increased to $96,100,000 growth of 18% year over year and approximately Gross margin came in higher than expected at 53.4%, primarily due to increased revenue, volume leverage, as well as some order timing and mix benefit. Synbio revenue increased to $35,200,000 growth of 7% over $33,000,000 for the 2024. NGS revenue for the third quarter grew significantly to approximately 55,300,000.0 an increase of 27% year over year and 8% sequentially. Revenue from our top 10 NGS customers accounted for approximately 44% of NGS revenue for the quarter.

We served six zero eight NGS customers in the quarter with 155 having adopted our products. For biopharma, revenue was $5,600,000 growth of approximately 10% over 5,100,000.0 for the same period of fiscal twenty twenty four. We had 111 active programs at the June 2025, and we started 88 new programs during the quarter. Looking at revenue by industry, healthcare revenue rose to 56,400,000.0 for the 2025 compared to 42,800,000.0 in the same period of fiscal twenty four. An increase of 32% reflecting the increased uptake of our products by large pharma, biotech and diagnostic customers.

Industrial chemical revenue was $23,100,000 in the third quarter, approximately flat with $23,200,000 in the same period of fiscal twenty four, reflecting the anticipated step back in one large contracted customer as mentioned earlier. It is worth mentioning that we held revenue flat without the large customer, speaking to the health and growth of our accounts within the industrial chemical segment. Academic revenue was $15,900,000 for the 2025, up 7% from $14,900,000 in the same period of fiscal twenty twenty four, with growth coming from both SymBio and NGS customers. North America academic revenue grew 10% sequentially with orders up double digits both sequentially and over prior year. The only area of sequential decline in academic revenue was driven by a dip in EMEA NGS revenue from university led clinical sites.

Looking geographically, America’s revenue increased to approximately $59,400,000 in the third quarter, up 16% compared to $51,400,000 in the same period of fiscal twenty twenty four. EMEA revenue rose to $30,700,000 in the third quarter versus $23,600,000 up 30% compared to the same period of fiscal twenty twenty four. Revenue growth reflects ongoing demand dynamics in the region and we do not believe tariff concerns drove any material pull forward in EMEA. APAC revenue was 5,900,000.0 in the third quarter compared to 6,500,000.0 in the same period of fiscal twenty twenty four. China continues to be a relatively small portion of our revenue at approximately 1.5% of total revenue for the 2025.

Moving down the P and L. Our gross margin for the third quarter increased 53.4, an improvement of over 10 margin points versus the 2024, reflecting our strong revenue growth and customer base while holding expenses relatively flat year over year. We also benefited sequentially from customer mix, order timing, and the acceleration of continuous process improvement initiatives. Operating expenses excluding cost of revenues for the third quarter were approximately 81,400,000.0 compared with approximately 79,300,000.0 excluding impairment of long lived assets in the same period of 2024. OpEx decreased by approximately $5,900,000 sequentially.

Operating expenses included approximately $1,000,000 for data storage in the third quarter, net of one time reversals of compensation accruals. We realized the majority of the OpEx benefit from the Atlas transaction in Q3 and expect we will realize the full benefit of approximately $5,000,000 per quarter in Q4. Looking at our progress on our path to profitability. For the 2025, adjusted EBITDA was a loss of approximately $8,000,000 an improvement of about $14,000,000 versus the 2024. The Atlas Data Storage transaction resulted in a one time accounting gain of $48,800,000 in Q3.

This gain resulted in recording net income of $20,400,000 for the third quarter. As part of the Atlas transaction, our investment in Atlas was accounted for as an investment in equity securities and recorded at its fair value. We will assess the value of Atlas on a quarterly basis with any changes in value recorded as other expense. We ended the quarter with cash, cash equivalents, and short term investments of approximately $250,800,000 Turning to guidance. We are narrowing our total revenue guide to $374,000,000 to $376,000,000 for fiscal twenty twenty five, indicating growth of approximately 19.7% at the midpoint year over year.

Synbio revenue guidance of 144,000,000 to $145,000,000 growth of approximately 17% at midpoint year over year, reflecting the continued share gains we saw in H1 driven by the Xpress portfolio. NGS revenue of $2.00 7,000,000 to $2.00 $8,000,000 growth of approximately 23% in the midpoint year over year. Biopharma revenue guidance of $23,000,000 growth of approximately 13% year over year. For Q4 fiscal twenty twenty five, we expect total revenue of approximately 96,000,000 to $98,000,000 growth of approximately 14.5 versus Q4 fiscal twenty twenty four at the midpoint. Synbio revenue of approximately $38,000,000 to $39,000,000 NGS revenue of approximately $52,000,000 to $53,000,000 A key top 10 account is transitioning from validation to commercial deployment, a critical inflection point unlocking multi year revenue opportunities and more predictable reoccurring revenue streams.

We expect a planned $5,000,000 revenue normalization in Q4 and some Q1 impact as this customer optimizes their rollout. This temporary adjustment positions both companies for accelerated growth ahead. We expect biopharma revenue of approximately $6,000,000 For the full year fiscal twenty twenty five, we now expect gross margin of approximately 50.5% to 51%, an increase of one margin point over our prior margin guidance and 8.1 points of improvement year over year at the midpoint. We expect adjusted EBITDA loss of approximately 45,000,000 to $47,000,000 for fiscal twenty twenty five, an improvement of more than $46,000,000 versus fiscal twenty twenty four. We expect Q4 fiscal twenty twenty five adjusted EBITDA will be a sequential improvement over Q3, which as I mentioned earlier, did include the majority of that was gained.

In closing, I’d like to note that although variability may occur at the product line level, our exposure across multiple end markets and customer types mitigates risk and supports our outlook for continued top line expansion. With that, I’ll turn the call back to Emily.

Emily Leproust, CEO and Co-Founder, Twist Bioscience: Thank you, Adam. We continue to operate in a fast moving, ever evolving environment. At Twist, we view this as an opportunity. Our deep customer engagement drives sharp understanding of market needs. By anticipating our customer needs, we build products fit for purpose that evolve into high margin competitive portfolios.

As innovators, we play the long game. Product introductions today generate increasing revenue in three to five years. Our proprietary platform technology provides powerful differentiation by driving cost and scale efficiency early in the workflow through miniaturization and automation. We embed the structural cost advantages across all product lines, supporting attractive unit economics and scalable margin expansion. We continue to expand our product portfolio targeting diverse markets to enable resilience and extend our available share.

Our mindset enables us to adapt quickly to both challenges and opportunities. We respond to market shift with speed and creativity. Challenges become catalysts for innovation. Today, we have highlighted several powerful levels fueling our growth outlook. We have expanded our base of ordering customers, converting smaller accounts into future growth drivers.

We have multiple opportunities in our NGS portfolio, including FlexReb and MRD. We are seeing compelling synergies between our synthetic biology products and biopharma services, and we believe AI will serve as a catalyst for increased demand across our products and service offerings. In parallel, our customers continue to scale commercially, further expanding our opportunity. Importantly, we recognize that certain product groups may experience short term fluctuations, but our diversified customer base and broad portfolio creates a resilient growth engine that supports sustained performance and revenue growth across market cycles. Over the past two years, we have made margin expansion a top priority and our discipline has delivered.

We have achieved gross margin above 50%, a level we expect to sustain and grow going forward. With that foundation in place, we are now rebalancing our focus towards top line acceleration. As we look to cross Atlas Data breakeven next year, and with gross margin now consistently above 50%, we are operating from a position of strength. We see a clear path to driving top line growth while maintaining margin discipline, delivering quality growth with strong fundamentals. Our team, platform and mission remains our greatest asset to best serve our customers.

These cost trends drive sustainable, profitable growth and deliver lasting results. At this time, let’s open the call for questions. Operator?

Conference Operator: Thank you. As a reminder, to ask a question, please press 11 on your telephone and wait for your name to be announced. And to withdraw your question, please press 11 again. And our first question will come from Matt Larew with William Blair. Your line is open.

Matt Larew, Analyst, William Blair: Good morning. Thanks for taking the question. Wanted to start on Synbio. So you obviously the growth high single digits year over year, but you referenced X a large order closer to 20%. The fourth quarter, I think also is growth maybe in the low double digits and the five year CAGR for that business, of course, more in the 20% range and you have a lot of new products coming on and you referenced net new customers and academic.

So could you just give us a sense, what are you hearing from customers? What have order trends been like? Is there anything needed to unlock budgets for customers? How much are you anticipating new products to really start to contribute? Just trying to mix and match here between positive and more cautious signals that we’re seeing in numbers.

Emily Leproust, CEO and Co-Founder, Twist Bioscience: Yeah, thank you, Matt. Great question. Symbiote is a very important business for us. Maybe two parts to your question. One, existing products really resonate with customers.

Our customers are happy, and we don’t have all the customers. Actually, we have a small fraction of the customers who are very well integrated into the big accounts. But there’s a long tail of smaller customers that when we reach them, when we bring them on the platform, they are very happy and keep growing. And so the first opportunity for us is leveraging the Twist, leveraging our hosted marketing, leveraging our sales team to get people on the platform. The second part is we have a very rich roadmap of new product introductions that are coming.

Hadley mentioned one today with our adept of fragment, obviously we can’t foreshadow to our competitors that we do, but there’s a great opportunity for us to continuing to leverage our growth engine, continue to leverage our R and D as in their productives to keep launching highly differentiated products. And to that extent, AI is going to be a great catalyst for us. I think AI is changing a little bit again about how drug discovery is being done, and it’s driving that customer demand where the platform is great. So, you’re only as good as an adversity you are, and so we are definitely going to drive for growth. And as you know, the last point I’ve mentioned, when we started two years ago, the gross margin for Synbio maybe was not as great as the one for NGS.

And so there’s been a significant effort on bringing the gross margin to where it is today, which is think it can be over 50% and will be over 50% for the foreseeable future. So we’re going to rebalance a little bit our internal results, less on gross margin. We’ll keep moving forward, but maybe a bit more on both. Overall, very, very bullish for the future of Symbiotic.

Conference Operator: Thank you. And the next question will come from Subbu Nambi with Guggenheim. Your line is open.

Subbu Nambi, Analyst, Guggenheim: Hey, guys. Thank you for taking my questions. Adam, you have been more prudent with your guidance, especially when it comes to the NGS segment and not factoring in clinical diagnostic product plans until they have materialized, which we think makes sense given this is out of your control. That said, you still had some internal expectations of when the assays would launch. So we were curious to know how this played out in 2025 so far.

Did these launches tend to be more delayed than expected or on time or sooner? And then as we look into 2026, would you change your approach here? Thank you.

Adam Laponis, CFO, Twist Bioscience: Hi, Sibhu. Thank you for the question. We spent a lot of time talking about the forward looking elements of NGS and a lot of excitement around the nature of NGS growth. As I said on previous calls, we won’t change our methodology moving forward, but we never want to be on the wrong side of the guidance, particularly around a new product launch. Know, the product launches in the second week versus the eleventh week of the quarter, you know, that’s a meaningful impact.

As you saw in the upfront section of the call, we talked about one account going through a meaningful transition towards commercialization of course this quarter coming up in Q4. And so that is in line with our expectations for the year. And we incorporate that into our guidance for the year, but it is also one that it will slow down and be accelerated and really speak to the long term commitment and growth opportunity with this account for NGS. When I look at other launches coming, lot has been said around MRD. And I think the way I’d say today is MRD is a very small percentage of brand NGS business in 2025.

And we expect a significant ramp in 2026. But remember, we’re dealing

Adam Laponis, CFO, Twist Bioscience: with a lot of small ones.

Adam Laponis, CFO, Twist Bioscience: And while MRD revenue today is growing faster than the overall RDS business, and we expect that trend to continue in FY ’26 and beyond, it’s still a relatively small portion of our engine business. And so I think as we look forward to 2026, we have a number of MRD customers that are finalizing their testing, going through clinical validation, and we expect commercial launch of the ’26 and ’27, which we believe will continue to drive our annual growth well in the future. Excellent.

Conference Operator: Thank you. And the next question will come from Luke Sergott with Barclays. Your line is open.

Luke Sergott, Analyst, Barclays: Great. Thanks for the questions. I just wanted a quick cleanup and then to follow-up there on the NGS side. So on the customer push out that you guys said, 4,000,000 to $5,000,000 from 4Q, is that all, you know, any timing there that we can expect in ’26, or we get a little bit of that in at the back half of ’4 q just from a modeling sense? And then, on the NGS strength, you know, you guys are you the the the clinical piece is clearly one of the strongest parts of that market.

And so just an update there, how much that business comes from, from the clinic side? And the reason I’m asking is because you guys are also talking about penetrating the academic government market, given its weakness there and you’re just, you know, commercially violent. So trying to figure out, you know, is that NGS piece can you penetrate that A and G market with the NGS piece given it’s considered more crowded and definitely close to commoditized with the NGS side?

Adam Laponis, CFO, Twist Bioscience: Luke, this is Adam. Great question. Thank you. For the NGS, the one customer going to that transition, we expect a $5,000,000 air pocket in q four, and we expect some additional impact into q one of next year. That being said, we are very confident in the guidance we gave this quarter as well as continued sequential growth in 2026 quarter over quarter.

In terms of the other dynamics of the clinical, I’ll pass the ball over to Emily.

Emily Leproust, CEO and Co-Founder, Twist Bioscience: Yeah, thanks, Luka. In terms of NGS, 100% right that the strength has been in the clinical adoption. We’ve made a big bet 2017, 2018 at the time of the IPO, and it paid off. We continue to see future strength. MRD, we’ve discussed it just now in the previous question, is going to it’s still small, but it’s growing and it will become a meaningful part of our goal.

And so I think as far as the foreseeable future, clinical strength is going to continue key to our growth. And those unfortunately for patients, but from a business point of view, it’s a very recession proof type of business. At the same time, we’re investing into broadening our market access. We’ve launched FlexPrep. It’s clearly focused on AgBio.

We’ve mentioned multiple times that we think the days of the microarrays are numbered and tweaked with NGS is going to drive the transition in agBio. So we’ve invested in our enzyme portfolio to use in our NGS kit, and that’s going to give us more strength outside of clinical in the research market. So I would say in the short term, for sure, clinical strength is going to be continues to be the great growth engine. In the medium to long term. Are seeing green shoots outside of clinical trends that are going to diversify even more our portfolio and our growth opportunity.

Conference Operator: Thank you. And the next question is going to come from Vijay Kumar with Evercore. Your line is open.

Vijay Kumar, Analyst, Evercore: Hey guys. Thanks for taking my question. Congrats on nice execution here on gross margins. Maybe back on this prior question from Luke on this customer transition. I thought I heard a $5,000,000 number.

Is that the dollar revenue impact in Q4? Is that what’s driving this NGS step down Q on Q? And sort of related, I think you said you expect those revenues to be recognized in Q1. So it’s all 5,000,000 coming in Q1. And should seasonality should we be expecting normal seasonality just because of this of revenue push out when they think of the cadence from Q1 to Q2 of next fiscal?

Thank you.

Adam Laponis, CFO, Twist Bioscience: Hey, Vijay. This is Adam. Thanks for the question. What we’ve contemplated in the guidance is a $5,000,000 step down in Q4 for that one customer sequentially versus Q3. And that’s incorporated and that’s what’s driving the NGS guidance.

In Q1 and beyond, we do expect overall sequential growth in the business, but we expect some of that slowdown from that customer to also occur in Q1. Hopefully that clarifies the best. But we are committed and we’re committed to sequential growth in Q1.

Conference Operator: You. And the next question comes from Puneet Souda with Leerink. Your line is open.

Angela Bidding, Senior Vice President of Corporate Affairs, Twist Bioscience0: Hi, guys. You have Michael on for Puneet this morning. Thanks for taking my question. I was wondering if you could talk a little bit about The U. S.

Academic market. I think you noted 10% year over year growth, which sounds pretty positive given the backdrop. However, if you could attribute that to share gains that you’re pursuing with the waivers or if the end market has evolved differently than you expected?

Patrick Finn, President and COO, Twist Bioscience: Thanks for the question. Yeah, good results. It’s again by our core value proposition in a tough market. Our technology advantage gives us a product and a value proposition that resonates for the customer. More shots on goal for the same budget spend is really what’s driving our growth and share grab in that segment.

And when you couple that with that’s people trying the platform and you couple that with a product portfolio that shows some good breadth and really solving customer problems, it adds some runway to build from here.

Adam Laponis, CFO, Twist Bioscience: Michael, just to clarify, the growth in The US both on orders and on revenue was up 10% sequentially.

Conference Operator: You and the next question will come from Your line is open.

Angela Bidding, Senior Vice President of Corporate Affairs, Twist Bioscience1: Hi, this is Madeline Moulman on for Doug. You mentioned in the prepared remarks that the timing of orders benefited gross margin. Is it possible to give us a sense of how much of the strength in the quarter was due to that versus volume and leverage? And then as we look past 2025, is the Q4 exit rate of sort of 51%, 52% a good jumping off point for 2026? And then just a point of clarification on the $5,000,000 normalization.

Was that contemplated in the prior guidance?

Adam Laponis, CFO, Twist Bioscience: Adam, this is Adam, and thanks for the question. On a full year basis, the normalization was contemplated into the guidance. The timing was always the big question mark for us. In terms of the gross margin benefit, when you when you dissect the q four guidance, it’s that 51 to 52%. You see basically the majority of that step back to kind of one to two points.

You can attribute some of the timing elements, the benefits we saw in Q4. We do expect improvements in gross margin looking forward. So we’re about looking 26 versus 25 in aggregate. There’s no going backwards from the 50% that we’ve been out of the process, but we expect that continued improvement year on year in the gross margin. But as Emily mentioned, we are putting a lot of that energy that is driving the gross margin into continuing to meet customer unmet needs, but it’s a big process improvement for new product introductions.

So we are focusing on growth while also continuing to expand our gross margin.

Conference Operator: Thank you. And the next question will come from Tom Peterson with Baird. Your line is open.

Angela Bidding, Senior Vice President of Corporate Affairs, Twist Bioscience2: Hey, guys. Thanks for taking the questions. Congrats on a solid quarter. I was just wondering as we think about sort of the gross margin progression in the fourth quarter and into 2026 as well as some of the comments on the adjusted EBITDA breakeven target by 2016. How should we think about the balance of reinvestment back into the business here over the next twelve months or so?

How are you contemplating that versus further adjusted EBITDA improvement? And just how should we think about sort of your OpEx investment priorities over

Adam Laponis, CFO, Twist Bioscience: the next twelve months? Thanks. Tom, thank you for the question. And as we are looking towards the future, I think there’s a couple of things on One, first is we’ll be giving full formal guidance when we close out Q4 and November and we will initiate then.

We do expect continued sequential growth across the business in every quarter. We also expect improvement year on year in the gross margin line, and we are reestablishing our commitment to being adjusted EBITDA positive by Q4. All

Emily Leproust, CEO and Co-Founder, Twist Bioscience: that is

Adam Laponis, CFO, Twist Bioscience: to say the investments we see in OpEx are going to be modest. We still see the number one driver of our path to profitability, the continued revenue growth of the business, but we will be looking to ensure that we continue to accelerate growth and where there’s opportunity to invest efficiently and profitably, we absolutely will be.

Conference Operator: Thank you. And the next question will come from Brendan Smith Your line is open.

Angela Bidding, Senior Vice President of Corporate Affairs, Twist Bioscience3: Hey everyone, it’s Chad Witrowski on for Brendan. Now that Atlas, the spin out is executed,

Matt Larew, Analyst, William Blair: I just

Angela Bidding, Senior Vice President of Corporate Affairs, Twist Bioscience3: wanted to kind of take this opportunity to ask about M and A, sort of what do you view as maybe potential white space in the business today? Is that something you’re thinking about? Or is the focus in the near term as you march towards profitability just to continue to launch new products, which you’ve obviously been doing pretty efficiently in terms of R and D expense? Thanks.

Patrick Finn, President and COO, Twist Bioscience: Yeah, thanks for the question. I think we have just relentless focus on the drive to adjust these to breakeven. We’ve had a good track record in delivering just sequential performance over the last few years and there’s no reason for that to continue or not to continue, excuse me. We’re building the muscle to learn what’s going on in the market and think about inorganic augmentation of the product portfolio. But for the near term, we’re just on our game.

Conference Operator: Thank you. And the next question will come from Tom DeBorsey with Nephron Research. Your line is open.

Angela Bidding, Senior Vice President of Corporate Affairs, Twist Bioscience2: Hi. Thanks for taking the question. Just around, I guess, international growth, I know it’s been a little lumpy over time, but just wanted to understand kind of how the company is adapting its platform and kind of addressing regional market demands and maybe challenges given tariffs and other situations internationally, I guess your opportunity to grow there.

Emily Leproust, CEO and Co-Founder, Twist Bioscience: Yes. Thanks, Tom, for the question. Obviously, there’s some uncertainty around tariffs, but we have a good advantage. It’s that we have a low variable cost in our platform. And the cost is very important to drive volume.

And the last quarter or so, there has been tariff on, tariff off. But I think we were able to navigate that and we’re able to take more than our fair share. I think Patti mentioned earlier that, and I’ll reiterate, because it’s just very important, what we refer to our customers is fast, high quality, and lower cost in DNA than the competition, which means that anytime there is a funding issue due because of government funding or due to tariffs, we are in a better position to take advantage of it because we offer more short term goals for a given budget. So we’ll keep leaning into our differentiation, into our opportunity, and we’re committed to delivering continued sequential growth quarter after quarter. It’s all thanks to the very varied market that we serve, the hundreds of SKUs that we have, thousands of customers.

We have a very resilient growth engine and keep leveraging.

Conference Operator: Thank you. And the next question comes from Rachel Battenslow with JPMorgan. Your line is open.

Angela Bidding, Senior Vice President of Corporate Affairs, Twist Bioscience3: Hi, this is Jayden on for Rachel. I just had a

Adam Laponis, CFO, Twist Bioscience: quick one on Synbio for the quarter. I was wondering if you could speak more about what drove weakness on Synbio versus what you were originally guiding for 37,000,000 to 39,000,000? Thank you.

Emily Leproust, CEO and Co-Founder, Twist Bioscience: Yeah. Thanks for the question. So, we knew we had tough comp because we had a big contracted customer that didn’t repeat quarter over quarter. And so we knew we had to bring more customers on the platform, which we did. We added hundreds of customers.

Those are new customers, and we are still learning with them. And so there was a little bit of uncertainty in the forecast in terms of the fee at which they would ramp up. So if you exclude that 1.com, the business is absolutely reaping more than 20% growth. So, overall, the business is doing really, really well. And that is before the full introduction of the NCI roadmap that we have.

So overall, I think the future opportunity in Synbio is brighter than ever. And it happens at a time where we have a gross margin, a contribution margin for single dose that is very close to NGS. And at the time when we’ve crossed the threshold of 50% growth margin for business. And so now, it’s three times to pause to put the foot on the gas in terms of commercial execution and just go find all those new customers that are not yet switched it because we know that once they’re on the platform, they’re very happy and they are very sticky with the potential to create work. Overall, that platform with the hundreds of applications and thousands of customers is going to give us resilience and growth.

Conference Operator: Thank you. I show no further questions at this time. I would now like to turn the call back over to Emily for closing remarks.

Emily Leproust, CEO and Co-Founder, Twist Bioscience: At least, we turned complexity into opportunity. With a strong platform, disciplined execution, and a relentless focus on customer driven innovation, we are building high value products at scale with margin. With gross margins now consistently over 50% and as you see EBITDA breakeven in sight, we are operating from position of strength. We are well positioned to accelerate growth, deliver impact and to create lasting value. Thank you.

Conference Operator: This concludes today’s conference call. Thank you for participating, and you may now disconnect.

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