Twist Raises Outlook as Revenue Growth Accelerates
The company lifted its fiscal 2026 revenue forecast by $12 million at the midpoint.
Twist Bioscience (TWST), the synthetic-biology company, reported faster revenue growth in its fiscal third quarter as demand for its DNA synthesis products strengthened.
Revenue growth accelerated to 23% from 19% in the prior quarter, while gross margin improved sequentially and the adjusted EBITDA loss narrowed. The results kept Twist on course for its targeted fiscal fourth-quarter adjusted EBITDA breakeven.
Fiscal third-quarter revenue rose to $118.4 million from $96.1 million a year earlier and increased about 7% from the preceding quarter. The company recorded a net loss of $35.1 million, or $0.56 a share, compared with net income of $20.4 million a year earlier, when results included a $48.8 million gain from the Atlas Data Storage spinout.
DNA Synthesis Products revenue climbed 39% to $56.6 million, accelerating from 28% growth in the prior quarter. NGS Applications revenue increased 12% to $61.8 million, maintaining its year-over-year growth rate while rising 8% sequentially.
Customer shipments increased to about 2,650, and physical gene shipments rose to approximately 369,000 from 237,000 a year earlier. The gene total also increased roughly 23% from the second quarter, supporting the faster growth in the DNA synthesis business.
Gross margin expanded 1.2 percentage points from the prior quarter to 52.8%, while remaining below the year-earlier 53.4%. The adjusted EBITDA loss narrowed to $11.3 million from $13.3 million sequentially, even as selling, general and administrative expense rose to $80.7 million.
Twist now expects fiscal 2026 revenue of $456 million to $457 million, up from its previous forecast of $442 million to $447 million, while maintaining guidance for gross margin above 52% and fourth-quarter adjusted EBITDA breakeven. Its fourth-quarter revenue outlook of $123 million to $124 million implies about 25% growth at the midpoint, with sequential gains expected in both major businesses.
The company commercially launched Twist Complex Genes for broad access during the quarter following an early-access period. Cash, cash equivalents and short-term investments declined to about $167 million from $172 million at the end of the prior quarter, leaving the breakeven target as the next test of Twist’s improving operating trajectory.