8-K: Twist Bioscience Exceeds Q1 Revenue, Raises FY26 Guidance

Twist Bioscience reported record first-quarter fiscal 2026 revenue of $103.7 million, a 17% increase year-over-year, and raised its full fiscal year 2026 revenue guidance.

Summary

• Achieved record revenue of $103.7 million in the first quarter of fiscal 2026, marking a 17% increase over $88.7 million in the first quarter of fiscal 2025.
• This represents the twelfth consecutive quarter of sequential revenue growth.
• Gross margin improved to 52.0% in 1QFY26, an increase of approximately 4 margin points compared to 48.3% in 1QFY25.
• DNA Synthesis and Protein Solutions revenue grew 27% to $51.1 million for the quarter.
• NGS Applications revenue grew 8% to $52.6 million, or 18% when excluding one large customer transitioning an assay.
• Net loss decreased to $30.5 million, or $0.50 per share, compared to $31.6 million, or $0.53 per share, in the prior year's first quarter.
• Adjusted EBITDA improved to $(13.4) million from $(16.3) million in the first quarter of fiscal 2025.
• The company had approximately $198 million in cash, cash equivalents, and short-term investments as of December 31, 2025.
• Shipped products to approximately 2,538 customers and physically shipped approximately 271,000 genes in 1QFY26.
• Launched research-grade Plasmid DNA Preps to support pharmaceutical and biotech pre-clinical studies.
• Raised full fiscal year 2026 revenue guidance to a range of $435 million to $440 million, up from $425 million to $435 million.
• Reiterated the expectation to achieve adjusted EBITDA breakeven for the fourth quarter of fiscal 2026.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive report, driven by strong revenue growth, improved margins, and raised guidance, indicating solid operational execution and progress towards profitability despite continued net losses.

Positives

• Record revenue of $103.7 million for 1QFY26, exceeding guidance and demonstrating strong market demand.
• Achieved 12th consecutive quarter of sequential revenue growth, indicating consistent operational momentum.
• Significant year-over-year revenue growth of 17%.
• Gross margin improved substantially to 52.0% in 1QFY26, up from 48.3% in 1QFY25, reflecting enhanced efficiency.
• DNA Synthesis and Protein Solutions segment showed robust growth of 27%.
• NGS Applications revenue grew 18% excluding a specific customer transition, highlighting underlying strength.
• Net loss decreased and Adjusted EBITDA improved year-over-year, signaling progress towards profitability.
• Increased customer base (2,538 vs. 2,376) and higher gene shipments (271,000 vs. 205,000) indicate expanding market penetration.
• Raised full fiscal year 2026 revenue guidance to $435-$440 million, reflecting increased confidence in future performance.
• Reiterated commitment to achieving Adjusted EBITDA breakeven by Q4 FY26.
• Launched new research-grade Plasmid DNA Preps, expanding product offerings for pharmaceutical and biotech customers.

Negatives

• Continued to report a net loss of $30.5 million for the quarter.
• Selling, general and administrative expenses increased to $69.7 million from $56.2 million in the prior year, indicating higher operating costs.
• Cash and cash equivalents decreased from $183.0 million at September 30, 2025, to $148.6 million at December 31, 2025.
• Total current assets decreased from $332.9 million to $303.8 million quarter-over-quarter.
• Total liabilities increased from $168.9 million to $181.9 million quarter-over-quarter.

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

For the full fiscal year 2026, Twist Bioscience expects total revenue in the range of $435 million to $440 million, an increase from prior guidance of $425 million to $435 million, representing 16% growth at the midpoint. Gross margin is expected to be above 52% for fiscal 2026. For the second quarter, total revenue is projected to be approximately $107 million to $108 million, with sequential growth driven by key NGS accounts. The company reiterates its expectation to achieve adjusted EBITDA breakeven for the fourth quarter of fiscal 2026.

Management Comments

• "We're continuing to build on the momentum we established in fiscal 2025, starting the new fiscal year with our twelfth consecutive quarter of growth."
• "Revenue of $103.7 million exceeded guidance and increased 17% compared to the first quarter of 2025."
• "As we continue through the year and beyond, we remain focused on driving toward profitability with consistent revenue growth, gross margins above 50% and disciplined spending to invest in scalable, sustainable growth opportunities while serving more customers, launching more products and expanding our addressable markets."

Industry Context

StockSavvy.ai notes that Twist Bioscience operates in the highly competitive and rapidly evolving synthetic biology and genomics market. The company's continued revenue growth and improved gross margins suggest effective execution in a sector driven by innovation and increasing demand for synthetic DNA and next-generation sequencing applications. The focus on profitability and disciplined spending aligns with broader industry trends where companies are balancing growth with financial sustainability amidst varying capital market conditions.

Comparison to Industry Standards

• The filing does not provide sufficient specific data points or direct comparisons to named competitors' projects or results to allow for a detailed assessment against global industry benchmarks.
• However, the reported 17% year-over-year revenue growth and gross margin improvement to 52.0% are generally positive indicators within the biotech tools sector, which often sees high R&D investment and varying profitability profiles among growth-stage companies.

Stakeholder Impact

• Shareholders: Likely positive impact due to strong revenue growth, improved gross margins, raised full-year guidance, and clear progress towards profitability, which could lead to increased investor confidence.
• Customers: Positive impact from the launch of new research-grade Plasmid DNA Preps and increased gene shipments, indicating expanded product offerings and enhanced capacity to meet demand.
• Employees: Continued growth and investment in scalable opportunities suggest job stability and potential for growth, balanced with a focus on disciplined spending.
• Creditors: Improved financial performance and a stated path to Adjusted EBITDA breakeven could enhance the company's creditworthiness and reduce perceived risk.

Next Steps

• Continue driving toward profitability with consistent revenue growth.
• Maintain gross margins above 50% for fiscal 2026.
• Implement disciplined spending to invest in scalable, sustainable growth opportunities.
• Serve more customers, launch more products, and expand addressable markets.
• Achieve adjusted EBITDA breakeven for the fourth quarter of fiscal 2026.
• Host a conference call and live audio webcast for analysts and investors on February 2, 2026, to discuss results and provide a business update.

Key Dates

Recommendation

The company demonstrated strong operational performance with record revenue, significant gross margin expansion, and a raised full-year outlook, all while making tangible progress towards its adjusted EBITDA breakeven target. The consistent sequential growth and increased customer engagement suggest robust demand for its synthetic biology tools. While still operating at a net loss, the positive trajectory in key financial metrics and strategic focus on profitability make it an attractive growth opportunity for investors.

Keywords

Synthetic DNA, Genomics, Biotech, DNA Synthesis, NGS Applications, Gene Synthesis, Plasmid DNA, Life Sciences, Biotechnology, TWST, Financial Results, Earnings, Q1 2026