8-K: Twist Bioscience Reports Strong Q2 FY26 Results, Raises Guidance

Twist Bioscience announced record revenue of $110.7 million for its fiscal second quarter of 2026, a 19% increase year-over-year, and raised its full-year revenue guidance.

Summary

• Twist Bioscience reported record revenue of $110.7 million for the second quarter of fiscal year 2026, representing a 19% increase compared to $92.8 million in the same quarter of fiscal year 2025.
• This marks the 13th consecutive quarter of sequential revenue growth for the company.
• Gross margin improved to 51.6% in Q2 FY26, up approximately 2 margin points from 49.6% in Q2 FY25.
• The company raised its full fiscal year 2026 revenue guidance to a range of $442 million to $447 million, an increase from the previous guidance of $435 million to $440 million.
• Twist Bioscience reiterated its expectation to achieve adjusted EBITDA breakeven in the fourth quarter of fiscal year 2026.
• Net loss for the quarter was $44.0 million, or $0.71 per share, an increase from $39.3 million, or $0.66 per share, in the prior year's second quarter.
• Adjusted EBITDA improved to $(13.3) million from $(14.8) million in the prior year's second quarter.
• The company has approximately $172 million in cash, cash equivalents, and short-term investments as of March 31, 2026.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive report with strong revenue growth and raised guidance, though the increasing net loss and ongoing SG&A expenses temper the overall sentiment.

Positives

• Record revenue of $110.7 million in Q2 FY26, up 19% year-over-year.
• 13th consecutive quarter of sequential revenue growth.
• Gross margin improved to 51.6% in Q2 FY26.
• Full fiscal year 2026 revenue guidance raised to $442-$447 million.
• Reiterated expectation of adjusted EBITDA breakeven in Q4 FY26.
• Improved Adjusted EBITDA to $(13.3) million from $(14.8) million year-over-year.
• Shipped products to approximately 2,583 customers, an increase from 2,431 in the prior year.
• Physically shipped approximately 300,000 genes, up from 227,000 in the prior year.

Negatives

• Net loss increased to $44.0 million ($0.71 per share) in Q2 FY26 from $39.3 million ($0.66 per share) in Q2 FY25.
• Selling, general and administrative expenses increased to $76.1 million from $63.7 million year-over-year.
• Research and development expenses, while decreased year-over-year, remain a significant cost at $19.7 million.

Risks

• The ability to attract new customers and retain and grow sales from existing customers.
• The ability to achieve sufficient revenue to reach or maintain positive cash flow from operations or profitability.
• Rapidly changing technologies and extensive competition in synthetic biology could make products obsolete or non-competitive.
• Dependence on one supplier for a critical component.
• Additional regulations could increase costs and delay commercialization efforts.
• Changes in U.S. trade policies and other trade actions could result in increased costs and supply chain disruptions.
• Uncertainty as to economic and market conditions and the impact of adverse economic conditions.
• The ability to obtain financing when necessary.

Future Outlook

Twist Bioscience raised its full fiscal year 2026 revenue guidance to $442 million - $447 million, representing 17%-19% growth. The company expects gross margin to be above 52% for the full fiscal year. For the third quarter of fiscal 2026, total revenue is expected to be approximately $114 million to $115 million. The company reiterates its expectation to achieve adjusted EBITDA breakeven in the fourth quarter of fiscal year 2026.

Management Comments

• "We had a strong performance in the first half of fiscal 2026, ending the second quarter with our thirteenth consecutive quarter of growth. Revenue exceeded guidance, coming in at $110.7 million, growth of over 19% compared to the second quarter of 2025."
• "As we look ahead, we remain focused on delivering consistent, measurable growth designed to scale over time."
• "We expect to chart toward profitability while simultaneously building on the strong momentum we are seeing across the portfolio."
• "We continue to anticipate achieving adjusted EBITDA breakeven in the fourth quarter of fiscal year 2026 while holding gross margin above 52% for the fiscal year."

Industry Context

StockSavvy.ai notes that Twist Bioscience's continued revenue growth and raised guidance in a competitive synthetic biology market highlight its ability to scale operations and expand its customer base. The focus on achieving EBITDA breakeven signals a move towards profitability, a key milestone for growth-stage biotech companies.

Comparison to Industry Standards

• The reported 19% year-over-year revenue growth for Q2 FY26 is strong, especially for a mid-cap company in the biotech sector. Competitors like Ginkgo Bioworks (DNA) have also shown growth, but Twist's consistent sequential growth over 13 quarters suggests robust market penetration and product demand.
• The gross margin of 51.6% is competitive within the synthetic biology space, indicating efficient production processes. Companies like Amyris (AMRS) have faced challenges maintaining high gross margins due to production complexities, making Twist's performance notable.
• The company's stated goal of achieving adjusted EBITDA breakeven in Q4 FY26 aligns with industry trends where companies prioritize scaling and market share before full profitability, but the increasing net loss indicates ongoing investment in growth.

Legal Proceedings

• Reached a settlement in principle regarding a securities class action for approximately $17.1 million.
• $7.2 million was booked for litigation settlement costs, net of recoveries in the second quarter of fiscal year 2026.

Stakeholder Impact

• Shareholders: Positive impact from raised revenue guidance and continued growth, but concerns may remain regarding the increasing net loss.
• Employees: Continued investment in R&D and SG&A suggests ongoing hiring and operational expansion.
• Customers: Continued product shipments and new partnerships (e.g., AWS) indicate ongoing service and innovation.
• Suppliers: Increased cost of revenues suggests higher demand and potentially increased orders from suppliers.

Next Steps

• Achieve adjusted EBITDA breakeven in the fourth quarter of fiscal year 2026.
• Continue to focus on delivering consistent, measurable growth.
• Build on the strong momentum across the portfolio.
• Maintain gross margin above 52% for the fiscal year.

Key Dates

Recommendation

The company demonstrates strong revenue growth and has raised its full-year guidance, indicating positive operational momentum. However, the increasing net loss and significant SG&A expenses, coupled with the need to achieve EBITDA breakeven, suggest that while the company is on a positive trajectory, it still requires careful monitoring. A 'hold' recommendation reflects the balance between growth potential and ongoing profitability challenges.

Keywords

Twist Bioscience, DNA Synthesis, Synthetic Biology, Biotechnology, Financial Results, Revenue Growth, Gross Margin, EBITDA