8-K: Twist Bioscience Achieves Record FY25 Revenue, Nears Profitability

Twist Bioscience reported record revenues for fiscal year 2025 and the fourth quarter, alongside significant gross margin improvement and a clear path to adjusted EBITDA breakeven in fiscal 2026.

Summary

• Record total revenue of $376.6 million in Fiscal 2025, a 20% increase over $313.0 million in Fiscal 2024.
• Record revenue of $99.0 million in Q4 FY25, a 17% increase over $84.7 million in Q4 FY24, marking the 11th consecutive quarter of sequential growth.
• Gross margin improved to 50.7% in FY25, up 8.1 margin points from 42.6% in FY24.
• Net loss attributable to common stockholders significantly decreased to $77.7 million ($1.30 per share) in FY25 from $208.7 million ($3.60 per share) in FY2024.
• Adjusted EBITDA improved to $(46.9) million in FY25 from $(93.5) million in FY24.
• The company shipped products to approximately 3,800 customers in FY25, an increase from 3,550 in FY24, and shipped approximately 938,000 genes, up from 772,000 in FY24.
• Cash, cash equivalents, and short-term investments totaled $232.4 million as of September 30, 2025.

Sentiment

Score: 8

Explanation: The filing presents strong financial performance with record revenues, significant gross margin expansion, and a substantial reduction in net loss and adjusted EBITDA loss. The positive outlook for FY26, including the expectation of adjusted EBITDA breakeven, indicates a clear path towards profitability and sustainable growth. New product launches and customer expansion further bolster a very positive sentiment.

Positives

• Achieved record total revenue of $376.6 million for FY25, representing a 20% year-over-year increase.
• Reported record revenue of $99.0 million for Q4 FY25, a 17% increase over Q4 FY24, marking the 11th consecutive quarter of sequential growth.
• Significantly improved gross margin to 50.7% for FY25 (up 8.1 margin points from 42.6% in FY24) and 51.3% for Q4 FY25 (up from 45.1% in Q4 FY24).
• Reduced net loss attributable to common stockholders to $77.7 million in FY25 from $208.7 million in FY24.
• Adjusted EBITDA loss nearly halved to $(46.9) million in FY25 from $(93.5) million in FY24, demonstrating progress towards profitability.
• Experienced strong revenue growth across all segments in FY25: SynBio (17%), NGS (23%), and Biopharma (15%).
• Expanded customer base to approximately 3,800 in FY25 and increased gene shipments to approximately 938,000.
• Provided positive financial guidance for FY26, projecting total revenue growth of 13% to 15.5% and an expectation to achieve adjusted EBITDA breakeven by Q4 FY26.
• Launched new products including the Trinity Freestyle Fast Hybridization workflow and the Twist Oncology DNA Comprehensive Genomic Profiling (CGP) Panel.
• Appointed Trynka Shineman to the board of directors, potentially strengthening governance and strategic oversight.

Negatives

• Despite significant improvements, the company still reported a net loss of $77.7 million for FY25 and an adjusted EBITDA loss of $(46.9) million for FY25.
• Selling, General and Administrative expenses increased to $247.0 million in FY25 from $218.4 million in FY24.
• Cash, cash equivalents, and short-term investments decreased to $232.4 million as of September 30, 2025, from $276.399 million as of September 30, 2024.

Risks

• Ability to attract new customers and retain and grow sales from existing customers.
• Ability to achieve sufficient revenue to achieve or maintain positive cash flow from operations or profitability in any given period.
• Risks and uncertainties of rapidly changing technologies and extensive competition in synthetic biology that could make products obsolete or non-competitive.
• Ability to integrate and leverage artificial intelligence and machine learning technologies to improve operational efficiency, product development, and customer solutions.
• Ability to expand DNA synthesis manufacturing capacity.
• Dependence on one supplier for a critical component.
• Dependence on key personnel.
• Additional regulations that could increase costs and delay commercialization efforts.
• Changes in U.S. trade policies and other trade actions that could result in increased costs and supply chain disruptions.
• Risks associated with the spin out of Atlas Data Storage.
• Ability to maintain and enforce intellectual property protection.
• Uncertainty as to economic and market conditions and the impact of adverse economic conditions.
• Ability to obtain financing when necessary.

Future Outlook

Twist Bioscience expects total revenue for fiscal year 2026 to be in the range of $425 million to $435 million, representing 13% to 15.5% year-over-year growth. This includes DNA Synthesis and Protein Solutions revenue of $194 million to $199 million (15% to 18% growth) and NGS Applications revenue of $231 million to $236 million (11% to 13.5% growth). The company anticipates gross margin to be above 52% for fiscal 2026 and aims to achieve adjusted EBITDA breakeven by the fourth quarter of fiscal 2026. For Q1 FY26, total revenue is projected to be $100 million to $101 million, a 13% to 14% growth compared to Q1 FY25.

Management Comments

• "We ended the fiscal year with record revenue in the fourth quarter exceeding our guidance."
• "By leveraging our technology, commercial execution and meeting the needs of our customers, we expanded our customer base and grew revenue 20% for the full fiscal year compared to the year prior."
• "As we enter fiscal 2026, we begin a new phase of growth for Twist, during which we expect to maintain gross margin above 50%, exit the fourth quarter of fiscal 2026 having achieved adjusted EBITDA breakeven and drive toward sustained and profitable growth."

Industry Context

Twist Bioscience operates in the rapidly evolving synthetic biology and genomics sectors, which are critical for advancements in medicine, agriculture, and industrial chemicals. The company's continued revenue growth, particularly in NGS and SynBio, indicates strong demand for its silicon-based DNA synthesis platform and related products. The focus on improving gross margins and achieving adjusted EBITDA breakeven aligns with a broader industry trend towards demonstrating profitability and sustainable growth, especially for mid-cap biotech companies. The launch of new oncology panels and hybridization workflows suggests an expansion into high-value clinical and research applications, positioning the company to capitalize on precision medicine trends.

Comparison to Industry Standards

• The filing does not provide specific comparable companies, projects, or results to global benchmarks, thus a direct comparison to industry standards with specific details is not possible based solely on this document.

Management Changes

Corporate Governance

Stakeholder Impact

• Shareholders: Positive impact due to record revenue, improved profitability metrics, and positive future guidance, potentially leading to increased share value.
• Employees: Continued growth and expansion may lead to job stability and potential opportunities.
• Customers: Benefit from new product launches (e.g., Trinity Freestyle Fast Hybridization workflow, Twist Oncology DNA CGP Panel) and expanded offerings, supporting their research and development efforts.
• Creditors: Improved financial health and a path to profitability reduce credit risk.
• Suppliers: Continued growth implies stable or increased demand for components and services.

Next Steps

• Twist will report SynBio and Biopharma revenue together under "DNA Synthesis and Protein Solutions" and NGS revenue under "NGS Applications" starting Q1 FY26.
• The company expects to achieve adjusted EBITDA breakeven by the fourth quarter of fiscal 2026.
• Twist expects to file its Annual Report on Form 10-K with the SEC on November 17, 2025.
• A conference call and live audio webcast for analysts and investors is scheduled for November 14, 2025, at 8:00 a.m. Eastern Time to discuss results and provide a business update.

Key Dates

Recommendation

The filing demonstrates exceptional financial performance with record revenues, significant gross margin expansion, and a substantial reduction in net loss and adjusted EBITDA loss, indicating strong operational efficiency and market demand. The clear guidance towards achieving adjusted EBITDA breakeven by Q4 FY26, coupled with continued revenue growth projections for FY26, signals a robust trajectory towards sustained profitability. New product launches and customer base expansion further solidify the company's market position and growth potential in critical biotech sectors. These factors collectively present a highly attractive investment opportunity.

Keywords

Twist Bioscience, TWST, financial results, Q4 2025, FY 2025, revenue, gross margin, net loss, adjusted EBITDA, synthetic biology, SynBio, NGS, Biopharma, DNA synthesis, genomic profiling, biotech, life sciences, financial guidance, profitability