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Twist Bioscience Corp (TWST)
NASDAQ:TWST
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Twist Bioscience
(NASDAQ:TWST)
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Rating:43Neutral
Price Target:
$28.00
▼(-19.40% Downside)
Twist Bioscience's overall stock score is primarily impacted by its financial performance and technical analysis. Despite revenue growth and margin improvements, significant profitability and cash flow challenges persist. The technical indicators suggest a bearish trend, and the valuation remains unattractive due to negative earnings. While the earnings call highlighted strong growth and future potential, the immediate financial and technical challenges weigh heavily on the score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, positioning Twist Bioscience for continued expansion.
Gross Margin Improvement
Improved gross margins reflect better cost management and operational efficiency, enhancing long-term profitability potential.
AI-Enabled Discovery Growth
Growth in AI-driven projects highlights innovation and potential for new revenue streams, strengthening Twist's competitive edge.
Negative Factors
Profitability Challenges
Ongoing profitability issues could hinder long-term financial health, limiting reinvestment and growth opportunities.
Cash Flow Issues
Weak cash flow generation can strain operations and limit flexibility, impacting the company's ability to finance growth.
Moderate Revenue Growth Guidance
Slower projected growth may signal market saturation or increased competition, potentially affecting future performance.
Twist Bioscience (TWST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.13B
Dividend YieldN/A
Average Volume (3M)1.11M
Price to Earnings (P/E)―
Beta (1Y)2.11
Revenue Growth20.32%
EPS Growth63.81%
CountryUS
Employees923
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)-0.45
Shares Outstanding61,273,650
10 Day Avg. Volume1,088,441
30 Day Avg. Volume1,109,427
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 Cap0.73
Enterprise Value/Revenue4.10
Enterprise Value/Gross Profit8.08
Enterprise Value/Ebitda-29.57
Forecast
1Y Price Target
$41.25Price Target Upside18.74% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
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:Nov 14, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jan 30, 2026
Earnings Call Sentiment Positive
Twist Bioscience reported strong financial performance with record revenue and significant margin improvement, driven by growth in SynBio, Biopharma, and NGS segments. However, the transition of a major customer and moderate growth guidance for fiscal 2026 presents challenges. The company is optimistic about future growth driven by AI-enabled discovery and new product introductions.Q4-2025 Updates
Positive Updates
Record Revenue Achievement
Twist Bioscience reported a record quarter with $99 million in revenue, exceeding guidance and marking a 17% year-over-year increase. For the fiscal year, revenue was $376.6 million, a growth of 20% over fiscal 2024.
Significant Gross Margin Improvement
Gross margin for the quarter was 51.3%, and for the year, it was 50.7%, up from 42.6% in fiscal 2024, marked by a nearly 20 margin points increase over the last two years.
Strong SynBio and Biopharma Growth
SynBio revenue was $39.5 million, up 17% year-over-year, driven by the Express portfolio. Biopharma revenue grew by 22% year-over-year to $6.4 million.
NGS Revenue Growth
NGS reported revenues of $53 million, representing a 16% year-over-year growth, driven by successful diagnostic customer assays.
AI-Enabled Discovery Growth
AI-enabled drug discovery projects grew more than $25 million versus fiscal 2024, highlighting significant growth potential in AI-driven drug discovery.
Negative Updates
Customer Transition Impact on NGS
A large cancer diagnostics customer is transitioning their assay from research to commercial, impacting Q4 and Q1 NGS revenue, with expected reacceleration in Q2 of fiscal 2026.
Moderate Revenue Growth Guidance
Guidance for fiscal 2026 indicates a revenue growth of 13% to 15.5%, which is slower compared to the previous year's growth rate.
Limited Contribution from MRD in Fiscal 2026
Only 1 to 2 points of overall growth for MRD products are assumed in fiscal 2026, with significant ramp expected later.
Company Guidance
During the Twist Bioscience's 2025 Fourth Quarter Financial Results Conference Call, the company reported a record quarterly revenue of $99 million, marking a 17% year-over-year increase and surpassing their guidance. For the entire fiscal year 2025, Twist Bioscience achieved $376.6 million in revenue, reflecting a 20% growth compared to fiscal 2024. The company's gross margin for the quarter was 51.3%, and for the year, it stood at 50.7%, up from 42.6% in the previous fiscal year. The SynBio segment reported $39.5 million in revenue, also a 17% year-over-year increase, while NGS revenue grew by 16% to $53 million. The Biopharma Services segment saw a 22% year-over-year revenue increase to $6.4 million. The company anticipates an adjusted EBITDA breakeven by the end of fiscal 2026, driven by robust growth from AI-enabled drug discovery projects, which contributed over $25 million more in orders compared to fiscal 2024. Looking ahead to fiscal 2026, Twist Bioscience projects total revenues between $425 million and $435 million, representing 13% to 15.5% growth, with a gross margin expected to exceed 52%.Twist Bioscience Financial Statement Overview
Summary
Twist Bioscience is experiencing revenue growth and improved gross margins, but it faces significant profitability and cash flow challenges. The balance sheet is stable with low leverage, yet negative earnings and cash flow issues persist.Income Statement
Twist Bioscience has shown some revenue growth, with a 3.95% increase in the latest year. However, the company is still facing significant profitability challenges, as evidenced by negative net profit margins and EBIT margins. The gross profit margin has improved to 50.72%, indicating better cost management, but the overall profitability remains a concern.Balance Sheet
The company's balance sheet shows a relatively low debt-to-equity ratio of 0.16, suggesting conservative leverage. However, the return on equity is negative, reflecting ongoing losses. The equity ratio is not explicitly calculated, but the company's equity position appears stable relative to its assets.Cash Flow
Twist Bioscience's cash flow situation is challenging, with negative operating and free cash flows. The free cash flow has improved slightly, but the operating cash flow to net income ratio is negative, indicating cash flow issues. The free cash flow to net income ratio suggests some ability to cover net losses, but overall cash flow health is weak.| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 376.57M | 376.57M | 312.97M | 245.11M | 203.56M | 132.33M |
| Gross Profit | 191.00M | 191.00M | 133.35M | 89.73M | 84.23M | 51.71M |
| EBITDA | -52.20M | -52.10M | -176.71M | -174.15M | -211.68M | -143.91M |
| Net Income | -77.67M | -77.67M | -208.73M | -204.62M | -217.86M | -152.10M |
Balance Sheet | ||||||
| Total Assets | 641.86M | 641.86M | 614.32M | 776.40M | 961.38M | 702.10M |
| Cash, Cash Equivalents and Short-Term Investments | 232.43M | 232.43M | 276.40M | 336.41M | 504.97M | 477.86M |
| Total Debt | 75.57M | 75.57M | 85.03M | 94.07M | 94.91M | 62.92M |
| Total Liabilities | 168.90M | 168.90M | 141.63M | 152.97M | 171.99M | 121.28M |
| Stockholders Equity | 472.96M | 472.96M | 472.69M | 623.43M | 789.38M | 580.82M |
Cash Flow | ||||||
| Free Cash Flow | -75.63M | -75.63M | -69.17M | -170.25M | -226.24M | -139.31M |
| Operating Cash Flow | -47.63M | -47.63M | -64.09M | -142.47M | -124.39M | -112.24M |
| Investing Cash Flow | -24.76M | -24.76M | -3.07M | 50.61M | -232.93M | 156.16M |
| Financing Cash Flow | 28.54M | 28.54M | 6.89M | 911.00K | 270.53M | 329.18M |
Twist Bioscience Technical Analysis
Positive
34.74
Price Trends
31.46
Positive
30.02
Positive
32.30
Positive
Market Momentum
1.08
Negative
57.13
Neutral
76.26
Neutral
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 34.74 is above the 20-day moving average (MA) of 33.09, above the 50-day MA of 31.46, and above the 200-day MA of 32.30, indicating a bullish trend. The MACD of 1.08 indicates Negative momentum. The RSI at 57.13 is Neutral, neither overbought nor oversold. The STOCH value of 76.26 is Neutral, 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 | $885.67M | 14.44 | 24.11% | ― | 14.46% | ― | |
70 Outperform | $3.82B | -8.45 | -16.83% | ― | 20.53% | 82.91% | |
55 Neutral | $1.66B | -14.45 | -12.99% | ― | 10.10% | -44.29% | |
53 Neutral | $862.15M | -19.90 | -3.80% | ― | 13.60% | 74.64% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
43 Neutral | $2.13B | -26.54 | -16.43% | ― | 20.32% | 63.81% | |
41 Neutral | $611.48M | -1.51 | -72.52% | ― | 0.21% | -233.51% |
* Healthcare Sector Average
TWST
Twist Bioscience
34.74
-8.84
-20.28%
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12.83
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1.58%
CDNA
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17.22
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-31.31%
FLGT
Fulgent Genetics
27.89
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GRAL
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98.04
79.47
427.95%
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.