Breaking Down Twist Bioscience Corporation (TWST) Financial Health: Key Insights for Investors

You're looking at Twist Bioscience Corporation (TWST) and trying to map the path to profitability against the recent market volatility, and honestly, the numbers tell a story of two speeds. The company closed out its fiscal year 2025 with a record $376.6 million in revenue, a solid 20% growth year-over-year, which is defintely a win for their synthetic DNA platform. But the market reacted with a sharp drop-over 11% in pre-market trading-because the Q4 earnings per share (EPS) loss of $0.45 was wider than expected, which highlights the pressure on cost management. Still, the financial health is improving where it matters for a growth story: the full-year net loss narrowed dramatically to $77.7 million, down from $208.7 million in the prior year, and the gross margin expanded significantly to 50.7%. That margin expansion is a huge operational lever. Plus, with $232.4 million in cash on the balance sheet and a clear target to hit adjusted EBITDA breakeven by the end of fiscal 2026, the runway is there to capitalize on the massive tailwind from AI-enabled drug discovery, where orders alone surged by more than $25 million in 2025.

Revenue Analysis

You need to know where the growth is coming from at Twist Bioscience Corporation (TWST) to judge its future value, and the fiscal year 2025 results give a clear picture: the company is still a high-growth story, but the mix is shifting. Total revenue for the year hit a record $376.6 million, marking a strong 20% year-over-year increase from fiscal 2024's $313.0 million. That's solid execution in a challenging biotech market.

The primary revenue streams break down into three core segments, with Next-Generation Sequencing (NGS) tools continuing to be the largest contributor. This segment is the clear revenue engine, but the growth in the smaller Biopharma segment points to a critical future opportunity in drug discovery.

Here's the quick math on how the segments contributed to the $376.6 million in 2025 revenue:

The NGS segment, which provides tools for sample preparation in sequencing, delivered $208.1 million in revenue, growing 23% year-over-year. This makes up over half of the total revenue, reflecting strong demand from diagnostic customers whose clinical assays rely on Twist Bioscience Corporation's products. The SynBio segment, focused on DNA synthesis products like synthetic genes, grew by 17% to reach $145.0 million.

What's defintely a key change is the growing influence of AI-enabled drug discovery. Orders from customers working on these AI-driven projects grew by more than $25 million versus fiscal 2024, which is a massive signal for future revenue quality. This trend is driving the new organizational structure, where SynBio and Biopharma are being combined into a single DNA Synthesis and Protein Solutions Group for fiscal 2026 reporting.

You should also note the geographical shift: while the Americas still accounts for the majority (60%) of revenue, the EMEA region saw exceptional growth, with Q4 revenue rising 35% year-over-year. This international expansion is a crucial part of scaling the business. For a deeper dive into the company's valuation, check out our full post on Breaking Down Twist Bioscience Corporation (TWST) Financial Health: Key Insights for Investors.

Profitability Metrics

You're looking at Twist Bioscience Corporation (TWST) and seeing impressive revenue growth, but the bottom line is still in the red. The key takeaway for fiscal year 2025 is that the company made significant strides in manufacturing efficiency, but aggressive commercial spending kept operating profitability out of reach. It's a classic growth-stage trade-off: scale the platform or optimize for immediate profit.

For the full fiscal year 2025, Twist Bioscience Corporation reported total revenue of $376.6 million, marking a solid 20% increase over the prior year. The good news is that the core technology's operating leverage (the ability to increase profit margins as revenue grows) is kicking in, but the massive operating expenses are the anchor holding back net income.

Gross Profit and Margin Trends

The most encouraging trend is the substantial improvement in gross profitability. The company's proprietary silicon-based DNA synthesis platform is showing its scale advantage, driving down the cost of goods sold (COGS) relative to revenue.

• Gross Profit for FY 2025 hit $191.0 million.
• Gross Margin expanded to 50.7% for the year, a jump from 42.6% in fiscal 2024.

This nearly 8.1 percentage point expansion in Gross Margin is defintely a win, demonstrating that the manufacturing side of the business is becoming materially more efficient as volume increases. This is the engine of future profitability, and management expects to keep the gross margin above 50% going into fiscal 2026.

Operating and Net Profitability Analysis

Once you move past the Gross Profit line, the picture shifts dramatically. The company is still operating at a significant loss, a common characteristic of high-growth biotech firms pouring capital into market expansion and R&D.

Here's the quick math on the 2025 profitability ratios:

The operating loss of $(136.3) million is a significant improvement from the prior year's loss of $(220.8) million, but it shows where the capital is going. Selling, General and Administrative (SG&A) expenses rose to $247.0 million in fiscal 2025, outpacing revenue growth and consuming a hefty chunk of the revenue. R&D expenses, however, were managed down to $80.3 million. The path to profitability hinges directly on controlling that commercial overhead and letting the gross margin gains flow through.

Comparison with Industry Peers

When you stack Twist Bioscience Corporation against established players in the genomics and synthetic biology space, the difference in maturity is clear, particularly in gross margin. For instance, a major genomics peer, Illumina, reported a Gross Margin of 67.62% in the third quarter of 2025. Another synthetic biology competitor, GenScript Biotech, reported an adjusted Gross Margin of 73.6% for the first half of 2025.

Twist Bioscience Corporation's 50.7% Gross Margin is lower, but it's crucial to remember that its core business involves high-volume, custom manufacturing of DNA, which is inherently lower margin than selling proprietary instruments and high-margin consumables like Illumina does. Illumina's non-GAAP operating margin guidance for the full year 2025 is around 22.88% (midpoint of 22.75% to 23%), while Twist Bioscience Corporation is at a negative -36.2%. This comparison confirms that Twist Bioscience Corporation is still very much in a high-investment, market-capture phase, prioritizing revenue growth and platform scale over near-term GAAP profitability.

For a deeper look at the institutional investors betting on this growth story, check out Exploring Twist Bioscience Corporation (TWST) Investor Profile: Who's Buying and Why?

The action item here is simple: Watch the SG&A line. Management is targeting adjusted EBITDA breakeven by the end of fiscal 2026. If the Gross Margin continues to climb and SG&A growth slows, that target is achievable.

Debt vs. Equity Structure

The core takeaway for Twist Bioscience Corporation (TWST) is that it maintains a highly equity-centric and low-leverage capital structure, which is typical for a growth-stage synthetic biology firm still chasing profitability. This approach prioritizes financial flexibility over the cost-efficiency of debt, a smart move given its negative net income of $(77.7) million for fiscal year 2025.

Your Debt-to-Equity (D/E) ratio stood at approximately 0.16 for fiscal year 2025. To be fair, this is significantly below the general ceiling of 1.0 to 1.5 that most analysts consider healthy. The average D/E for the broader Biotechnology industry is around 0.17, putting Twist Bioscience Corporation right in line with its peers who also rely heavily on capital raises to fund long, expensive research and development (R&D) cycles.

Here's the quick math on the balance sheet for the most recent data available in fiscal 2025:

The company's debt profile is surprisingly clean, consisting primarily of operating lease liabilities and a small amount of other non-current liabilities, rather than large-scale corporate bonds or term loans. As of June 30, 2025, total liabilities were $165.4 million, but only a fraction of that is traditional interest-bearing debt.

What this low-debt estimate hides is the company's reliance on equity-linked financing. The primary capital activities in the near-term have been equity-focused, including a $200 million convertible note raise in April 2024. Convertible notes are debt instruments that can be converted into stock, essentially delaying dilution until the company hits certain valuation milestones. This is a classic growth-company financing tool.

Twist Bioscience Corporation's financing strategy is clear: fund growth through equity and equity-linked instruments to keep the balance sheet light, preserving a strong liquidity position. As of the end of fiscal 2025 (September 30, 2025), the company held a robust cash and short-term investment balance of $232.4 million, which provides a significant buffer to cover its cash burn as it drives toward its goal of adjusted EBITDA breakeven by the end of fiscal year 2026.

The company is defintely prioritizing runway over minimizing its cost of capital, and that's the right call for a high-growth, pre-profit business. You can dive deeper into the full financial picture in the full post: Breaking Down Twist Bioscience Corporation (TWST) Financial Health: Key Insights for Investors.

Actions to consider:

• Monitor the conversion price of the 2024 convertible note.
• Watch for new equity raises to gauge cash burn rate.
• Confirm no major credit rating changes (unlikely with this low debt).

Liquidity and Solvency

Twist Bioscience Corporation (TWST) holds a strong near-term liquidity position as of fiscal year (FY) 2025, largely due to a substantial cash reserve built from prior capital raises. However, you must pair this strength with the reality of its negative cash flow from operations, which is the key near-term risk.

The company's liquidity ratios are excellent, reflecting its ability to cover short-term debts. The Current Ratio, which measures current assets against current liabilities, sits at a robust 3.64 for FY 2025. Even more telling is the Quick Ratio (or acid-test ratio), which excludes inventory-often the least liquid current asset-and still registers a high 3.17. Honestly, anything above 1.0 is considered healthy, so these numbers are defintely a significant strength.

Here's the quick math on the balance sheet position as of September 30, 2025 (in thousands of USD):

The resulting working capital-the capital available to fund day-to-day operations-is a substantial $241.56 million. This is a great buffer, but what this estimate hides is the burn rate. The trend in working capital is positive, but it relies on the company's large cash pile, not yet on self-sustaining profitability. For more on the strategic direction driving these figures, you can check out the Mission Statement, Vision, & Core Values of Twist Bioscience Corporation (TWST).

Cash Flow: The Path to Breakeven

The cash flow statement gives you a clearer picture of the operational reality. While the balance sheet looks great, the company is still a growth-stage entity consuming cash. For the full FY 2025, the net cash used in operating activities was $(47.6) million. The good news is this is a marked improvement from the $(64.1) million used in FY 2024, showing the company is closing the gap to operational cash flow breakeven.

The three main cash flow categories show a clear, focused strategy:

• Operating Cash Flow: Still negative at $(47.6) million, but the trend is strongly positive, driven by a full-year gross margin of 50.7%.
• Investing Cash Flow: The company spent approximately $28 million on capital expenditures, which is a necessary investment to expand production capacity for future growth.
• Financing Cash Flow: Twist Bioscience Corporation raised approximately $28.5 million through financing activities, including funds from a Royalty Purchase Agreement and stock option exercises. This shows the company is still tapping external sources, though less aggressively than in prior years.

The key takeaway here is that the liquidity strength is currently a function of its war chest, not its business model's inherent cash generation. The improving operating cash flow is the most critical metric to watch. Management is targeting adjusted EBITDA breakeven toward the end of fiscal 2026, which is the next major milestone to solidify long-term financial health.

Action: Monitor the quarterly operating cash flow figures in 2026; they must continue their positive trajectory to validate the path to self-sufficiency.

Valuation Analysis

You're looking at Twist Bioscience Corporation (TWST) and wondering if the market has it right, especially with the volatility over the last year. The short answer is that analysts see significant upside, but the valuation metrics tell the story of a high-growth biotech company that is still in heavy investment mode. The consensus is a Moderate Buy, suggesting the stock is currently undervalued relative to its future potential, not its present earnings.

Here's the quick math: the average 12-month price target from analysts sits between $45.00 and $47.80 per share, a considerable premium over the recent trading price of around $28.56 to $31.57 in November 2025. What this estimate hides is the inherent risk of a company not yet profitable. Your investment decision hinges on their path to profitability, not just their impressive revenue growth.

Is Twist Bioscience Corporation Overvalued or Undervalued?

Based on traditional valuation ratios, Twist Bioscience Corporation appears expensive or unquantifiable because it is not yet generating net income or positive earnings before interest, taxes, depreciation, and amortization (EBITDA). This is common for a growth-focused synthetic biology firm that is aggressively expanding its market share and technology platform.

• Price-to-Earnings (P/E) Ratio: The trailing twelve-month (TTM) P/E ratio is negative, hovering around -21.77. Since the company reported a loss of -$0.45 per share for Q4 2025, you can't use P/E to value it against profitable peers.
• Enterprise Value-to-EBITDA (EV/EBITDA): This metric is also negative, sitting at approximately -29.16 as of Q3 2025. A negative EV/EBITDA means the company has negative EBITDA, so it's a poor tool for comparative valuation right now.
• Price-to-Book (P/B) Ratio: The P/B ratio is a more useful measure here, coming in at 3.81 for Q3 2025. This means the market values the company at nearly four times its net assets (book value), reflecting high expectations for future growth and the value of its intellectual property, like its silicon-based DNA synthesis platform.

The market is defintely pricing in the growth. Full-year fiscal 2025 revenue hit $376.6 million, a 20% year-over-year increase, but the losses persist.

Stock Trend and Analyst View

The stock's performance over the past year has been tough, with the share price falling by roughly 30.65% as of November 2025. The 52-week trading range of $24.07 to $55.33 shows how volatile this name is. That kind of swing is a clear sign of investor uncertainty around the timeline for profitability.

Still, the professional view remains optimistic. Of the analysts covering Twist Bioscience Corporation, ten have a 'Buy' rating, and two have a 'Sell' rating, giving it a collective 'Moderate Buy' rating. They are betting on the company's projection to achieve adjusted EBITDA breakeven by Q4 of fiscal 2026. This is the key milestone to watch. Also, don't look for a dividend; the yield and payout ratios are 0.00%, as all capital is being reinvested into growth.

To dig deeper into the operational drivers behind these numbers, you should read the full blog post: Breaking Down Twist Bioscience Corporation (TWST) Financial Health: Key Insights for Investors.

Risk Factors

You're looking at Twist Bioscience Corporation (TWST) because you see the massive potential in synthetic biology, but you need to be a trend-aware realist about the hurdles. The core takeaway is this: while Twist Bioscience Corporation is growing fast-FY2025 revenue hit a record $376.6 million-it is still a growth-stage company that is not yet profitable. That means the risks are amplified, and you must focus on the path to cash-flow neutrality.

The most immediate financial risk is the continued net loss. For the full fiscal year 2025, the company reported a Net Loss of $(77.7) million, which translates to a Net Loss Per Share of $(1.30). This is a significant improvement from the prior year's loss, but it still means the company is burning cash from operations, though net cash used in operating activities fell by 26% to $47.6 million in 2025. They are targeting adjusted EBITDA breakeven by the fourth quarter of fiscal 2026 to mitigate this. That's the single most important financial metric to watch right now. Breaking Down Twist Bioscience Corporation (TWST) Financial Health: Key Insights for Investors

Operational and Financial Headwinds

The company's reliance on its proprietary silicon-based DNA synthesis platform is both its greatest strength and a key operational risk. Any disruption to that core technology or its supply chain would hit the business hard. For example, the company is dependent on a single-source supplier for a critical component in its DNA synthesis process, which creates a clear risk of supply chain disruption. Also, as a high-growth player, scaling is an inherent challenge.

Here's the quick math on their volatility: Twist Bioscience Corporation's stock has a high beta of 3.2, indicating it is significantly more volatile than the overall market. That's a massive swing factor in your portfolio. You have to be prepared for significant price fluctuations, especially around earnings reports.

• Profitability: Net loss of $(77.7) million in FY2025.
• Supply Chain: Reliance on a single-source supplier for a critical component.
• Scaling Risk: Challenges in scaling manufacturing capacity to meet unpredictable future demand.

Market Competition and Customer Transition

The synthetic biology market is intensely competitive, with both established players and new entrants constantly innovating. Twist Bioscience Corporation's proprietary technology gives them an edge, but the rapid pace of technological advancements means their products could become obsolete if they don't keep pushing research and development. This is a capital-intensive race, and the company must continue to invest heavily to maintain its competitive position. They are mitigating this by rebalancing strategic R&D toward revenue-generating activities, like expanding into data-driven services for antibody discovery.

In the near-term, watch the Next-Generation Sequencing (NGS) segment. Management has acknowledged that a key NGS customer is transitioning their assay from research to commercial use, which is creating a temporary headwind and softening the revenue guidance for the first half of fiscal year 2026. To be fair, they are counteracting this by expanding their product portfolio with new NGS offerings like methylation and mRNA sequencing.

The table below summarizes the core external threats and the company's strategic response:

You need to see continued gross margin expansion-which hit 50.7% in FY2025, up from 42.6% in the prior year-to confirm their cost engineering efforts are defintely working against these competitive pressures.

Growth Opportunities

You're looking past the current stock noise and want to know where Twist Bioscience Corporation (TWST) will make its money next, and honestly, the path is clear: their proprietary technology is fueling a massive surge in AI-driven drug discovery and a critical expansion into cancer diagnostics.

For fiscal year 2025, Twist Bioscience Corporation delivered a record $376.6 million in revenue, a 20% jump over the previous year, which shows their silicon-based DNA synthesis platform is winning market share. What this estimate hides is the underlying shift toward high-value, high-growth applications, particularly from AI customers.

Key Growth Drivers: AI and Diagnostics

The biggest near-term opportunity is the acceleration of AI-enabled drug discovery. Orders from these customers grew by more than $25 million in fiscal 2025 alone, including the largest single purchase order in the company's history. This trend is driving the merger of their legacy SynBio and Biopharma services into a new, streamlined segment for fiscal 2026, called the DNA Synthesis and Protein Solutions Group.

Also, the Next-Generation Sequencing (NGS) market is ripe for expansion, specifically in Minimal Residual Disease (MRD) monitoring, which is a key area in cancer diagnostics. Twist Bioscience Corporation is capitalizing on this with product innovations like the MRD Express, a solution that offers a 12-hour turnaround for customized panels and is expected to launch commercially in early calendar 2026.

• AI-driven drug discovery: Orders grew over $25 million in FY2025.
• NGS/MRD: Launching MRD Express for cancer diagnostics.
• Express Portfolio: Expanding rapid-delivery products like Express Genes.

Future Revenue Projections and Profitability

The company's management is defintely a trend-aware realist, guiding for total revenue between $425 million and $435 million for fiscal 2026, representing a growth of 13% to 15.5% over fiscal 2025. Here's the quick math on where that growth is expected to land:

While the net loss was still substantial at $(77.7) million in fiscal 2025, the focus on operational efficiency is paying off. Gross margin improved significantly to 50.7% for the year, up from 42.6% in the previous year. The critical action for management now is hitting their target of adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) break-even by the end of fiscal 2026.

Competitive Edge and Strategic Moves

Twist Bioscience Corporation's main competitive advantage is its proprietary, silicon-based DNA synthesis platform. This semiconductor-based approach allows for high-throughput, cost-effective, and rapid DNA production, offering a massive efficiency edge-it uses 99.8% less chemical per gene compared to older methods. This cost leadership is what helps them gain market share, even in the highly competitive synthetic biology sector.

Their strategic initiatives focus on deeper customer integration, especially with AI-driven companies that rely on Twist Bioscience Corporation for the full design, build, test, and learn cycle. Plus, their diverse base of over 3,800 customers across sectors like healthcare (which accounted for $215.1 million in 2025 revenue), chemicals, and agriculture, reduces reliance on any single market. You can read more about their long-term vision here: Mission Statement, Vision, & Core Values of Twist Bioscience Corporation (TWST).