Twist Bioscience Q2 FY2025 Earnings Summary

Twist Bioscience reported strong results for the second quarter of fiscal year 2025, showing continued revenue growth and improving margins, while announcing a strategic spin-out.
Key Financial Highlights (Q2 FY2025 vs Q2 FY2024):
• Revenue: $92.8 million (up 23% from $75.3M)
o SynBio: $36.0M (up 21%)
o NGS: $51.1M (up 25%)
o Biopharma: $5.7M (up 21%)
• Gross margin: 49.6% (up from 41.0%)
• Net loss: $39.3M or $0.66 per share (improved from $45.5M or $0.79)
• Adjusted EBITDA: $(14.8)M (improved from $(26.8)M)
• Cash & investments: $257.1 million
Business Highlights:
• Spun out Atlas Data Storage, backed by major investors like ARCH Venture, Deerfield, Bezos Expeditions, and In-Q-Tel.
• Shipped to ~2,431 customers (up from ~2,253) and delivered ~227,000 genes (up from ~193,000).
• Partnered with Curio Genomics to enhance NGS offerings in agrigenomics.
• Launched high-throughput dual index adapter system.
FY2025 Guidance (unchanged revenue range, improved margins):
• Revenue: $372–$379 million (19–21% YoY growth)
o SynBio: $144–$147M
o NGS: $205–$209M
o Biopharma: ~$23M
• Gross margin: ~49.5% for FY25; >50% expected in Q4
• Adjusted EBITDA: $(48)M to $(53)M (narrowed from $(55)M–$(60)M)
• EBITDA breakeven targeted by end of FY2026

Twist Bioscience reported record revenue of $88.7 million for the first quarter of fiscal 2025, marking an increase of 24% from the same period in the prior year. This quarter also marked the company's eighth consecutive quarter of sequential revenue growth. Gross margin improved to 48.3%, up from 40.5% in the first quarter of fiscal 2024.

CEO Emily M. Leproust emphasized the company’s progress toward achieving adjusted EBITDA breakeven, noting multiple growth opportunities expected to drive sustainable expansion. The company expects total revenue for fiscal 2025 to range between $372 million and $379 million, reflecting year-over-year growth of 19% to 21%. Gross margin is projected to exceed 50% in the fourth quarter of fiscal 2025.

Revenue from synthetic biology (SynBio) grew 28% year-over-year to $34.4 million, while next-generation sequencing (NGS) revenue increased 23% to $48.6 million. Biopharma revenue also saw a modest rise, reaching $5.7 million.

Net loss for the quarter was $31.6 million, or $0.53 per share, compared to a loss of $43.0 million, or $0.75 per share, in the same quarter last year. Adjusted EBITDA improved to negative $16.3 million from negative $27.8 million in the prior year.

For the second quarter of fiscal 2025, Twist anticipates revenue between $91 million and $93 million, with continued sequential improvements in adjusted EBITDA.

The company remains focused on advancing its synthetic DNA platform for applications in healthcare, industrial chemicals, agriculture, and academic research. It also continues to develop longer-term initiatives, such as digital data storage in DNA and biologics drug discovery.

Twist will hold a conference call to discuss its financial results and business updates, with a webcast available for investors.