tiprankstipranks
Trending News
More News >
Twist Bioscience Corp (TWST)
NASDAQ:TWST
Advertisement

Twist Bioscience (TWST) AI Stock Analysis

Compare
1,070 Followers

Top Page

TWST

Twist Bioscience

(NASDAQ:TWST)

Rating:48Neutral
Price Target:
$28.00
▲(7.69% Upside)
Twist Bioscience's overall stock score reflects strong revenue growth and operational improvements, as highlighted in the earnings call. However, significant challenges in profitability, cash flow, and technical indicators weigh heavily on the score. The recent board appointment is a positive strategic move, but the stock's valuation remains unattractive due to ongoing losses.
Positive Factors
Financial Performance
NGS drove the quarter, delivering $55M and beating expectations.
Growth Strategy
Management signaled a shift in focus back to top-line growth, including new product launches intended to expand the SynBio market opportunity.
Profitability
Profitability was well ahead of expectations.
Negative Factors
Macro Environment
Macro headwinds have impacted new customer ramps and project orders for existing customers.
Market Reaction
TWST shares were down sharply (-10.3% vs. XBI +1%) in response to the F3Q meet and narrowing of guide.
Revenue Guidance
TWST narrowed their guide downward to $374M-$376M from $372M-$379M.

Twist Bioscience (TWST) vs. SPDR S&P 500 ETF (SPY)

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 its synthetic DNA products and services. The company operates on a revenue model that is driven by the demand for custom DNA synthesis, which serves a diverse clientele from research institutions to commercial enterprises. Key revenue streams include the sale of oligonucleotides, gene fragments, and complete genes, as well as DNA libraries for various applications in research and development. Additionally, Twist has formed significant partnerships and collaborations with major companies and institutions in the biotech and pharmaceutical industries, which further enhances its market reach and contributes to its earnings. The company also benefits from recurring revenue through long-term contracts and agreements with its clients, solidifying its financial stability and growth potential.

Twist Bioscience Earnings Call Summary

Earnings Call Date:Aug 04, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Nov 24, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook with record revenue growth, significant improvements in gross margin, and strong performance in the NGS segment. However, there were challenges noted in specific regions and slower-than-expected growth in SynBio. Despite these, the company remains optimistic about future growth opportunities, especially in SynBio and NGS, and is on track to achieve adjusted EBITDA breakeven.
Q3-2025 Updates
Positive Updates
Record Revenue Growth
Twist Bioscience reported a record revenue of $96.1 million for the third quarter of fiscal 2025, an increase of 18% year-over-year.
Strong Gross Margin Improvement
Gross margin increased to 53.4% compared to 43.3% in the same quarter last year, reflecting improved efficiency and product mix.
NGS Revenue Surge
NGS (Next-Generation Sequencing) revenue grew by 27% year-over-year to $55.3 million, driven by strength in diagnostic tests and smaller accounts.
Expansion in SynBio Customer Base
The company added hundreds of net new customers and expanded its SynBio product line, positioning for sustained growth.
Positive Biopharma Services Growth
Biopharma services revenue grew by 10% year-over-year to $5.6 million, with a strong funnel of opportunities in large pharma accounts.
Geographic Revenue Growth
Revenue in EMEA rose by 30% and in the Americas by 16% year-over-year, indicating strong performance in these regions.
Negative Updates
Challenges in APAC Revenue
APAC revenue decreased to $5.9 million from $6.5 million in the same period of fiscal 2024, with China contributing only 1.5% to total revenue.
SynBio Growth Slower Than Expected
SynBio revenue grew 7% year-over-year, lower than the company's historical growth trajectory, due to a tough comp from a large previous order.
Impact of Customer Transition in NGS
A key NGS customer is transitioning, resulting in a $5 million revenue normalization in Q4, impacting short-term revenue expectations.
Company Guidance
During Twist Bioscience's fiscal 2025 third quarter financial results conference call, the company reported record revenue of $96.1 million, representing an 18% year-over-year increase. The gross margin for the quarter improved significantly to 53.4% from 43.3% in the same period of fiscal 2024. The SynBio segment generated $35.2 million in revenue, reflecting a 7% year-over-year growth, while NGS revenue surged by 27% to $55.3 million. The Biopharma Services segment also saw a 10% increase, reaching $5.6 million in revenue. For the full fiscal year 2025, Twist Bioscience expects total revenue between $374 million and $376 million, with a gross margin of 50.5% to 51%. The company is targeting an adjusted EBITDA loss of $45 million to $47 million for the year, marking a significant improvement of over $46 million compared to fiscal 2024.

Twist Bioscience Financial Statement Overview

Summary
Twist Bioscience is experiencing strong revenue growth and improving gross margins, but profitability and cash flow remain significant challenges. The balance sheet is stable with low leverage, but the company needs to address its negative cash flow and profitability to enhance financial health.
Income Statement
45
Neutral
Twist Bioscience has shown consistent revenue growth, with a TTM revenue growth rate of 4.2%. However, profitability remains a challenge, as indicated by negative net profit and EBIT margins. The gross profit margin has improved to 49.2% TTM, suggesting some operational efficiency gains.
Balance Sheet
50
Neutral
The company's debt-to-equity ratio is relatively low at 0.16 TTM, indicating conservative leverage. However, the return on equity is negative, reflecting ongoing losses. The equity ratio is stable, showing a solid capital structure despite profitability challenges.
Cash Flow
40
Negative
Twist Bioscience's cash flow situation is concerning, with negative operating and free cash flows. The free cash flow to net income ratio is positive, indicating some cash flow efficiency, but the overall cash flow position remains weak.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue362.27M312.97M245.11M203.56M132.33M90.10M
Gross Profit178.40M133.35M89.73M84.23M51.71M28.69M
EBITDA-123.48M-176.71M-174.15M-191.55M-143.91M-132.09M
Net Income-85.19M-208.73M-204.62M-217.86M-152.10M-139.93M
Balance Sheet
Total Assets643.61M614.32M776.40M961.38M702.10M398.88M
Cash, Cash Equivalents and Short-Term Investments250.80M276.40M336.41M504.97M477.86M290.00M
Total Debt78.15M85.03M94.07M94.91M62.92M35.98M
Total Liabilities165.41M141.63M152.97M171.99M121.28M62.62M
Stockholders Equity478.20M472.69M623.43M789.38M580.82M336.26M
Cash Flow
Free Cash Flow-68.71M-69.17M-170.25M-226.24M-139.31M-152.12M
Operating Cash Flow-51.13M-64.09M-142.47M-124.39M-112.24M-142.25M
Investing Cash Flow-13.64M-3.07M50.61M-232.93M156.16M-114.65M
Financing Cash Flow26.59M6.89M911.00K270.53M329.18M303.73M

Twist Bioscience Technical Analysis

Technical Analysis Sentiment
Negative
Last Price26.00
Price Trends
50DMA
32.32
Negative
100DMA
33.13
Negative
200DMA
39.10
Negative
Market Momentum
MACD
-1.52
Negative
RSI
36.55
Neutral
STOCH
26.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TWST, the sentiment is Negative. The current price of 26 is below the 20-day moving average (MA) of 27.12, below the 50-day MA of 32.32, and below the 200-day MA of 39.10, indicating a bearish trend. The MACD of -1.52 indicates Negative momentum. The RSI at 36.55 is Neutral, neither overbought nor oversold. The STOCH value of 26.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TWST.

Twist Bioscience Risk Analysis

Twist Bioscience disclosed 60 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$4.59B190.925.14%2.40%-40.03%
64
Neutral
$15.36B12.3968.11%-3.32%
59
Neutral
$1.18B-17.68%22.37%86.08%
57
Neutral
$8.41B-4584.47%28.74%18.25%
51
Neutral
$7.90B-0.33-41.69%2.23%23.45%-1.99%
48
Neutral
$1.58B-17.58%22.72%62.11%
48
Neutral
$8.98B-35.51%12.56%-464.28%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TWST
Twist Bioscience
26.00
-14.02
-35.03%
EXAS
Exact Sciences
49.27
-11.64
-19.11%
ILMN
Illumina
96.07
-33.69
-25.96%
GH
Guardant Health
65.06
40.73
167.41%
SHC
Sotera Health
15.98
-0.50
-3.03%
GRAL
GRAIL Inc
32.42
18.95
140.68%

Twist Bioscience Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Twist Bioscience Appoints Trynka Shineman Blake to Board
Positive
Aug 6, 2025

On August 5, 2025, Twist Bioscience appointed Trynka Shineman Blake to its Board of Directors, where she will also serve on the Audit Committee. Ms. Shineman Blake, with her extensive experience in corporate governance and digital transformation, is expected to contribute significantly to Twist’s strategic direction as the company aims for adjusted EBITDA breakeven and continued innovation. Her previous leadership roles at Vistaprint highlight her ability to drive growth and innovation, aligning with Twist’s customer-centric growth strategy.

The most recent analyst rating on (TWST) stock is a Buy with a $56.00 price target. To see the full list of analyst forecasts on Twist Bioscience stock, see the TWST Stock Forecast page.

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.Date of analysis: Aug 14, 2025