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Twist Bioscience Corp (TWST)
NASDAQ:TWST
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Twist Bioscience
(NASDAQ:TWST)
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Rating:58Neutral
Price Target:
$49.00
▲(1.83% Upside)
Score is held back primarily by weak financial performance driven by ongoing losses and negative operating/free cash flow. Offsetting factors include strong technical momentum and a constructive earnings outlook with raised FY2026 guidance and continued margin expansion, while valuation remains challenged due to lack of profitability and no dividend support.
Positive Factors
Consistent Revenue Growth
Sustained top-line growth and a 24% three-year CAGR indicate durable market adoption of Twist’s synthetic DNA products across end markets. Consistent revenue expansion supports scale, R&D reinvestment and capacity utilization, improving long-term operating leverage and strategic optionality.
Gross Margin Expansion & Leverage
Margin expansion to ~52% and management’s claim that ~75–80% of incremental revenue drops to gross margin signal structural operating leverage in manufacturing and process improvements. Higher-quality unit economics make future scale more profitable and reduce break‑even dependency on fixed cost recovery.
AI-Enabled Demand Tailwind
Meaningful AI-driven orders and faster growth in DNA/protein solutions point to a structural demand shift. As AI drug discovery and bioinformatics scale, Twist’s molecule/data production capabilities become higher-value, recurring revenue sources that expand the addressable market over multiple years.
Negative Factors
Negative Operating & Free Cash Flow
Persistent negative operating and free cash flow—even if improved versus prior years—means the company remains reliant on financing until cash flows turn positive. This constrains balance sheet flexibility, limits internal funding for CapEx/R&D, and raises risk if revenue or margin progress slows.
Rising Debt and Negative Returns
Debt nearly doubled while equity remains sizable, but negative returns and ongoing losses mean leverage increases financial risk. Higher absolute debt raises interest and refinancing exposure and reduces tolerance for execution slippage before capital structure or liquidity become constraints on strategic initiatives.
Customer Concentration in NGS
Material concentration in NGS revenue and historical volatility from a single large customer create structural demand risk. Customer-specific swings can cause outsized quarter-to-quarter revenue and capacity impacts, complicating forecasting, margin stability and investments in scale-up.
Twist Bioscience (TWST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.95B
Dividend YieldN/A
Average Volume (3M)1.12M
Price to Earnings (P/E)―
Beta (1Y)2.09
Revenue Growth20.32%
EPS Growth63.81%
CountryUS
Employees923
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)-0.50
Shares Outstanding61,311,703
10 Day Avg. Volume1,361,716
30 Day Avg. Volume1,123,228
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)3.56
Price to Sales (P/S)4.47
P/FCF Ratio-22.25
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue7.40
Enterprise Value/Gross Profit14.34
Enterprise Value/Ebitda-56.64
Forecast
1Y Price Target
$52.00Price Target Upside8.06% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Twist Bioscience Business Overview & Revenue Model
Company DescriptionTwist Bioscience Corporation, a synthetic biology company, manufactures and sells synthetic DNA-based products. The company's DNA synthesis platform enables the manufacturing of synthetic DNA by writing DNA on a silicon chip. It offers synthetic DNA-based products, including synthetic genes, tools for sample preparation, antibody libraries for drug discovery and development, and DNA as a digital data storage medium. The company has collaboration agreements with Victorian Clinical Genetic Services; Vivlion GmbH.; Kyowa Kirin Pharmaceutical Research, Inc.; deepCDR Biologics AG; and Centogene N.V to develop advanced sequencing tools. It also has a research collaboration with Boehringer Ingelheim International GmbH to use proprietary antibody libraries to discover therapeutic antibodies against multiple targets. Twist Bioscience Corporation was incorporated in 2013 and is headquartered in South San Francisco, California.
How the Company Makes MoneyTwist Bioscience generates revenue primarily through the sale of synthetic DNA products, which are utilized by customers in genetic research, drug development, and various industrial applications. The company's revenue model is based on a combination of direct product sales, service contracts, and partnerships with pharmaceutical and biotechnology companies. Key revenue streams include sales of custom gene synthesis, oligonucleotides, and other DNA-related products. Additionally, Twist has formed strategic collaborations with leading organizations in the life sciences sector to expand its market reach and enhance its product offerings, which further contributes to its earnings. The company's innovative approach and scalable technology platform enable it to meet the growing demand for synthetic biology solutions, positioning it for continued growth in the biotechnology market.
Twist Bioscience Earnings Call Summary
Earnings Call Date:Feb 02, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call emphasized continued, broad-based revenue growth (Q1 revenue +17% YoY), margin expansion (gross margin 52%, +~4 pts YoY), accelerating demand from AI-enabled discovery (notably 27% growth in DNA synthesis & protein solutions and meaningful gene/data volumes), and raised fiscal 2026 guidance with a reiterated commitment to adjusted EBITDA breakeven. Headline negatives include a continuing adjusted EBITDA loss, increased operating spend to fund growth, some customer concentration in NGS (previous single-customer volatility), and near-term margin moderation from new product launches. On balance, management portrayed strong operational momentum and a clear path to profitability while intentionally investing to capture growth opportunities.Q1-2026 Updates
Positive Updates
Consistent Revenue Growth and Multi-Year CAGR
Q1 revenue of $103.7M, up 17% year-over-year and ~5% sequentially. Management noted the twelfth consecutive quarter of revenue growth and a three-year revenue CAGR of 24%.
Improved Gross Margin
Reported gross margin of 52% in Q1, an increase of ~4 percentage points versus fiscal 2025, supported by higher revenue and process improvements. Management reiterated full-year gross margin guidance above 52%.
Strong DNA Synthesis & Protein Solutions Performance
DNA synthesis and protein solutions revenue grew to $51.1M, up 27% year-over-year, driven by demand from AI-enabled discovery customers.
NGS Revenue Resilience and Underlying Growth
NGS applications revenue was $52.6M; excluding one large customer, NGS grew 18% year-over-year. Top-10 NGS customers accounted for ~36% of NGS revenue.
AI-Enabled Discovery Traction and Data Volume
Management highlighted $25M in orders tied to AI discovery booked in fiscal 2025, continued customer reorders into Q1, shipment of ~271,000 genes in the quarter (up >30% YoY), and production of 50,000+ genes for data characterization—driving increased DNA/protein throughput and higher-value data services.
Expanded Addressable Market and Market Share Wins
Estimated serviceable market expanded from ~$2B in 2020 to ~$7B today, with management targeting >$12B addressable market by 2030. Energy applications group SAM >$3B with ~10% share today.
Operational Leverage and Margin Conversion
Management reiterated a long-term profile where ~75%–80% of incremental revenue flows to gross margin; Q1 performance showed ~74% of incremental revenue dropping to gross margin, indicating operational leverage as volumes scale.
Raised Guidance and Path to Profitability
Fiscal 2026 revenue guidance raised to $435M–$440M (~16% growth at midpoint). Company reaffirmed commitment to adjusted EBITDA breakeven in 2026 and provided Q2 revenue expectation of $107M–$108M (~16% YoY at midpoint).
Improved Adjusted EBITDA Loss and Strong Cash Position
Adjusted EBITDA loss improved to ~$13.4M (an improvement of ~$2.8M versus prior year). Company ended Q1 with $197.9M in cash, cash equivalents, and short-term investments.
Geographic and Partner Growth
EMEA revenue grew to $38.4M (+36% YoY); Americas revenue $58.4M (+9% YoY); APAC revenue ~$7.0M. Global supply partner revenue rose to $12.8M (+50% YoY) driven by a new NGS partner, growth in diagnostics OEM partners, and APAC distributors.
Negative Updates
Adjusted EBITDA Still Loss-Making
Despite improvement, adjusted EBITDA remained a loss of approximately $13.4M in Q1 and the company used $24.8M in net cash from operating activities in the quarter.
Increased Operating Expenses and Front-Loaded Investments
Operating expenses (costs of revenues and operating spend) increased to $86.9M from $77.5M year-over-year, driven by commercial hires and digital infrastructure investments. Management indicated they accelerated operating expenses by about $10M per quarter to fund growth.
Customer Concentration and Volatility Risk in NGS
Company noted a prior 'air pocket' from a single large NGS customer (which has since returned). Top-10 NGS customers made up ~36% of NGS revenue, indicating concentration risk that can cause quarter-to-quarter volatility.
Flat Diagnostics Revenue (Headline) and Academic Softness
Diagnostics revenue was roughly flat at $35.3M versus $35.5M in prior year; management noted fewer large-scale academic projects in Q1 (academic/government revenue ~$12.2M, roughly flat YoY). Diagnostics excluding the large customer was up 12% YoY, underscoring dependence on certain partners for headline growth.
Short-Term Margin Moderation from Product Launches
Company explained that launching new products and characterizations often uses manual processes initially, moderating near-term margin expansion until automation and process optimization are implemented.
Ongoing Cash Burn and Investment Needs
Although cash balance is healthy ($197.9M), the combination of operating cash outflow (~$24.8M in Q1), ongoing investments (including ~$10M incremental OpEx per quarter), and CapEx ($10M in Q1) indicates continued near-term cash usage as the business scales toward breakeven.
Company Guidance
Twist guided fiscal 2026 revenue of $435–$440 million (≈16% growth at the midpoint) and reiterated its commitment to adjusted EBITDA breakeven in 2026 while targeting full‑year gross margin above 52%; the company also provided a quarterly revenue range of $107–$108 million (≈16% YoY at the midpoint). Management pointed to Q1 as the foundation for the guide — Q1 revenue $103.7M (+17% YoY, ~+5% sequential) with 52% gross margin (+~4 pts YoY), DNA synthesis & protein solutions $51.1M (+27% YoY), NGS ~$52.6M (NGS ex‑one large customer +18% YoY), 271,000 genes shipped and >50,000 genes manufactured for data characterization — and noted AI‑related orders of >$25M in FY2025. They said ~75–80% (74% in Q1) of incremental revenue should drop to gross margin, revealed a Q1 adjusted EBITDA loss of ~$13.4M (improved ~$2.8M YoY), net cash used in operations $24.8M, CapEx $10M, and cash, equivalents & short‑term investments of $197.9M, while signaling they have accelerated operating expense by about $10M per quarter to drive growth without jeopardizing FY2026 breakeven.Twist Bioscience Financial Statement Overview
Summary
Strong multi-year revenue growth and meaningfully improving margins/losses, but the company remains loss-making and cash flow is still materially negative (operating and free cash flow). Balance sheet leverage is manageable, though debt has increased and returns remain negative.Income Statement
Top-line momentum is solid, with revenue rising from $132.3M (2021) to $376.6M (FY 2025) and $391.6M in TTM (Trailing-Twelve-Months). Profitability is improving meaningfully: gross margin has expanded to ~51.6% in TTM (Trailing-Twelve-Months) from ~36.6% (2023), and net losses have narrowed sharply (net margin ~-19.6% in TTM vs. ~-66.7% in 2024). However, the company remains loss-making with negative operating profitability (EBIT margin still negative), and growth decelerated in the latest annual period (revenue growth ~20% in 2025 vs higher rates earlier).44
Neutral
Balance Sheet
Leverage looks manageable, with debt-to-equity around ~0.19 in FY 2025 and ~0.21 in TTM (Trailing-Twelve-Months), and equity remains sizable (~$456M–$473M recently). That said, returns remain negative due to ongoing losses (return on equity around -16% in FY 2025/TTM), and debt has stepped up versus prior years (roughly ~$94.1M in 2023 to ~$183.9M in TTM), which increases financial risk if profitability improvements stall.63
Positive
Cash Flow
Cash generation remains a key weakness: operating cash flow is negative in both FY 2025 (-$47.6M) and TTM (Trailing-Twelve-Months) (-$51.0M), and free cash flow is also negative (-$75.6M in FY 2025; -$86.7M in TTM). A positive is that cash burn has generally improved versus earlier periods (e.g., operating cash flow -$142.5M in 2023), and the net loss is narrowing—but the business still relies on external funding until operating cash flow turns positive.38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 376.57M | 312.97M | 245.11M | 203.56M | 132.33M |
| Gross Profit | 191.00M | 133.35M | 89.73M | 84.23M | 51.71M |
| EBITDA | -52.10M | -176.71M | -174.15M | -211.68M | -143.91M |
| Net Income | -77.67M | -208.73M | -204.62M | -217.86M | -152.10M |
Balance Sheet | |||||
| Total Assets | 641.86M | 614.32M | 776.40M | 961.38M | 702.10M |
| Cash, Cash Equivalents and Short-Term Investments | 232.43M | 276.40M | 336.41M | 504.97M | 477.86M |
| Total Debt | 137.32M | 85.03M | 94.07M | 94.91M | 62.92M |
| Total Liabilities | 168.90M | 141.63M | 152.97M | 171.99M | 121.28M |
| Stockholders Equity | 472.96M | 472.69M | 623.43M | 789.38M | 580.82M |
Cash Flow | |||||
| Free Cash Flow | -75.63M | -69.17M | -170.25M | -226.24M | -139.31M |
| Operating Cash Flow | -47.63M | -64.09M | -142.47M | -124.39M | -112.24M |
| Investing Cash Flow | -24.76M | -3.07M | 50.61M | -232.93M | 156.16M |
| Financing Cash Flow | 28.54M | 6.89M | 911.00K | 270.53M | 329.18M |
Twist Bioscience Technical Analysis
Positive
48.12
Price Trends
35.89
Positive
32.85
Positive
32.60
Positive
Market Momentum
2.97
Negative
73.27
Negative
86.55
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TWST, the sentiment is Positive. The current price of 48.12 is above the 20-day moving average (MA) of 41.60, above the 50-day MA of 35.89, and above the 200-day MA of 32.60, indicating a bullish trend. The MACD of 2.97 indicates Negative momentum. The RSI at 73.27 is Negative, neither overbought nor oversold. The STOCH value of 86.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TWST.
Twist Bioscience Risk Analysis
Twist Bioscience disclosed 61 risk factors in its most recent earnings report. Twist Bioscience reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Twist Bioscience Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $973.62M | 15.88 | 24.11% | ― | 14.46% | ― | |
70 Outperform | $3.85B | -8.52 | -16.83% | ― | 20.53% | 82.91% | |
58 Neutral | $2.95B | -37.76 | -16.79% | ― | 20.32% | 63.81% | |
55 Neutral | $1.55B | -13.48 | -12.99% | ― | 10.10% | -44.29% | |
53 Neutral | $789.19M | -18.21 | -3.80% | ― | 13.60% | 74.64% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
41 Neutral | $494.03M | -1.22 | -72.52% | ― | 0.21% | -233.51% |
* Healthcare Sector Average
TWST
Twist Bioscience
48.12
-5.54
-10.32%
MYGN
Myriad Genetics
5.30
-7.63
-59.01%
NEO
NeoGenomics
11.97
-2.12
-15.05%
CDNA
CareDx
18.93
-4.66
-19.75%
FLGT
Fulgent Genetics
25.53
8.69
51.60%
GRAL
GRAIL Inc
98.88
64.49
187.53%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.