Twist Bioscience Corporation (TWST): BCG Matrix [Dec-2025 Updated]

You're looking for the hard numbers on where Twist Bioscience Corporation (TWST) is winning and where it's burning cash as we close out fiscal year 2025. Honestly, the picture shows a clear split: the NGS Applications unit is the clear Star, pulling in $208.1 million with 23% growth, while the established SynBio platform acts as the high-margin Cash Cow, underpinning the 50.7% gross margin that funds everything else. We've cut the long-term drain from Data Storage, but now we have to watch the smaller, high-potential Biopharma Solutions segment-a classic Question Mark-as the company pushes hard toward that Q4 fiscal year 2026 EBITDA target. Let's dive into the four quadrants to see exactly how management is positioning capital for the next phase.

Background of Twist Bioscience Corporation (TWST)

You're looking at Twist Bioscience Corporation (TWST) as of late 2025, and the story is one of significant operational improvement alongside continued, albeit slowing, growth. Twist Bioscience Corporation is a company that builds its foundation on an innovative silicon-based DNA Synthesis Platform, which they use to serve customers in medicine, agriculture, and industrial chemicals. They are fundamentally in the business of synthetic DNA tools, helping others accelerate their research and development efforts. Honestly, their technology is what sets them apart in this space.

Let's look at the numbers for the recently concluded fiscal year 2025, which ended on September 30, 2025. Twist Bioscience reported total revenues of $376.6 million for the full year, which represents a 20% increase over the $313.0 million they brought in during fiscal 2024. That's solid top-line momentum, marking their 11th consecutive quarter of growth. Still, you have to look deeper than just the top line to see where the real progress is being made.

The company's revenue streams are primarily divided into two main areas, though they are reorganizing for fiscal 2026. For fiscal 2025, the Next-Generation Sequencing (NGS) segment was the largest contributor, bringing in $208.1 million, a healthy 23% year-over-year growth. The SynBio segment, which is their core DNA writing business, posted revenue of $145.0 million, growing 17% year-over-year. The smaller Biopharma segment contributed $23.5 million, up 15% from the prior year. The growth is broad-based, which is definitely a positive sign for a company of this size.

Where you really see the discipline is on the margin side. For the full fiscal year 2025, the gross margin jumped to 50.7%, a substantial improvement from 42.6% the year before. Management has been laser-focused on this, and they even raised guidance, expecting margins to stay above 50% going into 2026. This operational leverage is helping them manage the bottom line; the net loss for fiscal 2025 narrowed significantly to $77.7 million, down from a $208.7 million loss in fiscal 2024. The adjusted EBITDA loss also improved to $(46.9) million from $(93.5) million the year prior.

As of the end of September 2025, Twist Bioscience held $232.4 million in cash, cash equivalents, and short-term investments. This cash position is key because management has signaled a clear path forward, projecting they will achieve adjusted EBITDA breakeven by the end of the fourth quarter of fiscal 2026. For the upcoming fiscal year 2026, they are guiding for total revenue between $425 million and $435 million, which translates to growth of about 13% to 15.5%.

To reflect their strategy, Twist Bioscience is changing how they report things starting in fiscal 2026. They are grouping SynBio and Biopharma together into a new segment called DNA Synthesis and Protein Solutions, while NGS will become NGS Applications. This move is intended to better align reporting with how their customers are using their technology, especially with new product launches like the express workflow for minimal residual disease (MRD) testing.

Twist Bioscience Corporation (TWST) - BCG Matrix: Stars

You're looking at the engine driving current momentum for Twist Bioscience Corporation, which, in the BCG framework, is clearly the Next-Generation Sequencing (NGS) Applications segment. This unit is the clear leader, showing high growth in a market that Twist Bioscience Corporation views as expanding rapidly. The numbers from the close of fiscal year 2025 confirm this positioning, showing this segment is the largest revenue generator for the company.

The NGS Applications segment generated $208.1 million in revenue for the full fiscal year 2025. That figure represents a 23% year-over-year growth rate. To put that into perspective against the whole company, Twist Bioscience Corporation's total revenue growth for fiscal 2025 was 20% over fiscal 2024, meaning the NGS unit grew faster than the company average. This high-growth, high-share position is the textbook definition of a Star, demanding investment to maintain that lead.

Here's how the key revenue-generating segments stacked up for the full fiscal year 2025:

This segment's strength in the high-growth genomics and diagnostics space is supported by the overall operational improvements at Twist Bioscience Corporation, including a full-year fiscal 2025 gross margin of 50.7%. You see the investment required to keep this Star shining, as these high-growth areas consume significant cash to capture market share, but the potential payoff is a future Cash Cow when market growth naturally decelerates.

To accelerate this trajectory further, Twist Bioscience Corporation is preparing to launch its new minimal residual disease (MRD) Express product commercially in early calendar 2026. This new offering is designed to be a significant catalyst in the personalized diagnostics area, promising a turnaround time as fast as 12 hours for customized panels. This move is intended to solidify market leadership and diversify the revenue base within this critical area.

Key financial metrics supporting the Star status of the core business units as of the end of fiscal 2025 include:

• Total Fiscal 2025 Revenue: $376.6 million.
• Gross Margin for Q4 FY2025: 51.3%.
• Fiscal 2025 Gross Margin: 50.7%.
• Projected FY2026 NGS Applications Revenue Growth: 11% to 13.5%.

Twist Bioscience Corporation (TWST) - BCG Matrix: Cash Cows

You're looking at the segment that provides the necessary stability for Twist Bioscience Corporation's aggressive growth strategy. While the company is fundamentally a growth entity, meaning a true, low-growth, mature market Cash Cow is not present, the Synthetic Biology (SynBio) product line functions as the internal cash generator.

The SynBio segment is the most established, high-margin product line, generating $145.0 million in fiscal year 2025 revenue. This revenue stream is critical for funding the rest of the portfolio.

The overall gross margin for the full fiscal year 2025 reached 50.7%, a significant improvement from the 42.6% recorded in fiscal year 2024. This margin expansion is largely attributed to the scale and efficiency achieved within the core silicon-based DNA synthesis platform underpinning the SynBio offerings.

Here's a quick look at how the SynBio revenue contributes to the overall financial picture, which supports the idea of it being the foundational cash provider:

This segment provides the stable, high-margin foundation that funds the substantial operating expenses of the other, higher-risk ventures. For context, the company's fiscal 2025 Selling, General and Administrative Expenses were $247.0 million, and Research and Development Expenses were $80.3 million.

Twist Bioscience Corporation is leveraging this core technology's cash generation to target adjusted EBITDA breakeven by Q4 fiscal year 2026. The adjusted EBITDA loss for fiscal 2025 was $(46.9) million, an improvement of approximately $46.6 million versus fiscal 2024's loss of $(93.5) million.

The strategic focus for this segment involves maintaining productivity, which is reflected in the guidance:

• Expected fiscal 2026 gross margin to exceed 52%.
• Expected fiscal 2026 DNA synthesis and protein solutions revenue of $194 million to $199 million.
• Targeted adjusted EBITDA breakeven by Q4 fiscal year 2026.

Finance: draft 13-week cash view by Friday.

Twist Bioscience Corporation (TWST) - BCG Matrix: Dogs

The DNA Data Storage business was spun out into an independent entity, Atlas Data Storage, in May 2025. Atlas Data Storage commenced operations with a seed financing round of $155 million from investors including ARCH Venture Partners, Deerfield Management, and Bezos Expeditions.

This spin-out effectively removed a long-term, high-R&D, non-revenue-generating project from Twist Bioscience Corporation's core operating expenses. Research and Development Expenses for the full fiscal year 2025 were $80.3 million, a decrease from $90.9 million in fiscal 2024.

The company's overall net loss attributable to common stockholders for FY2025 was $77.7 million, a significant improvement from the $208.7 million net loss reported in fiscal 2024, indicating the need to cut non-core, cash-burning activities. You're looking at a clear strategic pivot away from capital-intensive, pre-commercial ventures.

Here's the quick math on the financial context surrounding this strategic move:

The divestiture allows Twist Bioscience Corporation to focus on its core segments, with management now projecting to achieve adjusted EBITDA breakeven by the end of fiscal 2026.

Non-strategic or legacy products that do not utilize the core silicon platform's scale and efficiency would fall here, though management is focused on margin expansion across the board. The remaining core business segments are:

• SynBio revenue for FY2025: $145.0 million, a 17% growth year-over-year.
• NGS revenue for FY2025: $208.1 million, a 23% growth year-over-year.
• Biopharma revenue for FY2025: $23.5 million, a 15% growth year-over-year.

The overall Gross Margin improved to 50.7% in fiscal 2025 from 42.6% in fiscal 2024. Still, the historical presence of a high-burn unit like DNA Storage necessitated this action to improve the overall financial profile.

Twist Bioscience Corporation (TWST) - BCG Matrix: Question Marks

You're looking at the pieces of Twist Bioscience Corporation that are in high-growth markets but haven't yet captured a commanding market share. These are the units consuming cash now with the hope of becoming future Stars, but they carry the risk of becoming Dogs if the investment doesn't pay off quickly.

The Biopharma Solutions unit fits this profile well, representing the smallest reported segment in the last full fiscal year. For fiscal year 2025, Biopharma Solutions generated $23.5 million in revenue compared to $20.3 million in fiscal 2024, showing a 15% year-over-year growth rate. This segment is deeply involved in partnerships centered around AI-driven drug discovery, which naturally requires substantial upfront capital to secure and advance those high-potential collaborations.

To better track this area, Twist Bioscience Corporation is reorganizing its reporting structure starting in fiscal year 2026. The former SynBio revenue, which was $145.0 million in fiscal 2025, will be combined with Biopharma revenue under the new DNA Synthesis and Protein Solutions umbrella. This combined segment is guided for a strong growth trajectory, which is exactly what you look for in a Question Mark.

Here's how the new combined segment is positioned for the upcoming fiscal year:

This expected growth of 15% to 18% for the DNA Synthesis and Protein Solutions group signals management's belief in the market's high potential, even though the revenue base is still smaller relative to the NGS Applications group. Honestly, this is where the heavy lifting for future market leadership needs to happen.

Outside the core synthetic biology business, Twist Bioscience Corporation made a strategic move by spinning out its DNA data storage efforts into an independent company, Atlas Data Storage. This is a classic high-risk, high-reward play, as DNA storage is a nascent technology with massive potential for long-term data preservation.

The structure of this separation is key to understanding its Question Mark status for Twist Bioscience Corporation:

• Atlas Data Storage launched with $155 million in seed funding from external investors.
• Twist Bioscience Corporation retained a minority ownership interest in Atlas upon the close of the transaction.
• The agreement includes rights for Twist to participate in the upside through future technology and commercial milestone payments.
• Twist also retains a revenue share through royalties on Atlas's future products and services.

This structure allows Twist Bioscience Corporation to focus its operating cash flow on its core life sciences segments while still holding a stake in a potentially transformative, albeit speculative, technology. If Atlas succeeds in commercializing DNA data storage, Twist benefits without having to fund the entire development path from its own operating budget.

Finance: draft the cash flow impact analysis for the expected milestone payments from the Atlas spin-out by next Wednesday.