Twist Bioscience Corp (TWST): Results of Operations and Financial Condition
Twist Bioscience Corp (TWST) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Twist Bioscience Reports Fiscal Third Quarter 2026 Financial Results — Record revenue of $118.4 million in 3QFY26 ; Increase of more than 23% over $96.1 million in 3QFY25; 14th consecutive quarter of sequential growth — — Gross margin of 52.8% in 3QFY26, sequential i
How this was made
The 30-second read
Why it matters
The key tradable items are the raised FY2026 revenue range ($456-$457M vs prior $442-$447M) and the reiterated expectation to reach adjusted EBITDA breakeven in Q4 FY26, alongside reported gross margin improvement to 52.8%.
Market read
A fresh earnings-and-guidance disclosure with explicit revenue and margin targets, likely prompting near-term estimate revisions and positioning ahead of the Q4 breakeven milestone.
What to watch
SG&A rose to $80.7M from $63.4M year over year, and adjusted EBITDA was still $(11.3)M in 3Q, so margin and cost discipline into Q4 are key to follow-through.
Record revenue of $118.4 million in 3QFY26; FY 2026 Revenue guidance raised to $456-$457M; Reiterating Q4 FY26 Adj EBITDA breakeven
Revenue grew 23% to a record $118.4 million, both operating segments delivered sequential growth, gross margin expanded sequentially, and full-year revenue guidance was raised. The result remains weighed by a $35.1 million net loss and adjusted EBITDA of $(11.3) million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $118.4 million | – | 23% |
| Cost of revenuesGAAP | $55.9 million | – | – |
| Gross marginGAAP | 52.8% | 120 basis points | – |
| Research and development expensesGAAP | $18.0 million | – | – |
| Selling, general and administrative expensesGAAP | $80.7 million | – | – |
| Net (loss) incomeGAAP | $(35.1) million | – | – |
| Net (loss) income per diluted shareGAAP | $0.56 per diluted share | – | – |
| Adjusted EBITDAnon-GAAP | $(11.3) million | – | – |
| Customers shipped products toother | approximately 2,650 customers | – | – |
| Genes physically shippedother | approximately 369,000 genes | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| DNA Synthesis and Protein Solutions (DSPS)Revenue grew compared to $40.8 million for the same period of fiscal 2025 and compared to $53.3 million for the second quarter of fiscal 2026. | $56.6 million | 6% | 39% |
| NGS Applications (NGS)Revenue grew compared to $55.3 million for the same period of fiscal 2025 and compared to $57.4 million for the second quarter of fiscal 2026. | $61.8 million | 8% | 12% |
fiscal 2026 and fourth quarter of fiscal 2026 outlook
- RevenueFor the full fiscal year 2026, total revenue in the range of $456 million to $457 million, growth of approximately 21% year over year. For the fourth quarter, total revenue of approximately $123 million to $124 million, growth of approximately 25% year over year at the midpoint.
- Gross marginFor the full fiscal year 2026, gross margin to be above 52%.
- NoteFor the fourth quarter, sequential growth in both DSPS and NGS Applications.
- NoteFor the fourth quarter, achieve adjusted EBITDA breakeven.
What drove it
- Twist reported its fourteenth consecutive quarter of growth.
- DSPS revenue grew 39% year over year and 6% sequentially.
- NGS revenue grew 12% year over year and 8% sequentially.
- Gross margin was 52.8%, up sequentially from 51.6% in the second quarter of fiscal 2026.
- The company launched Twist Complex Genes commercially for broad access following an early access period.
- The company reported consecutive quarter over quarter growth in genes manufactured for data characterization.
Concerns
- Net loss was $(35.1) million, compared to net income of $20.4 million for the same period of fiscal 2025.
- The third quarter of fiscal 2025 included a gain of $48.8 million from the spin out of Atlas Data Storage.
- Adjusted EBITDA was $(11.3) million, compared to $(8.0) million for the same period of fiscal 2025.
- Selling, general and administrative expenses were $80.7 million, compared to $63.4 million for the same period of fiscal 2025.
- The company continues to target adjusted EBITDA breakeven rather than providing fourth-quarter GAAP net (loss) income guidance.
What to watch
- Achievement of adjusted EBITDA breakeven in the fourth quarter of fiscal 2026.
- Delivery of fourth-quarter total revenue of approximately $123 million to $124 million.
- Sequential growth in both DSPS and NGS Applications in the fourth quarter.
- Full-year gross margin above 52%.
- Whether the company sustains growth in customer shipments and genes physically shipped.
Balance sheet and cash flow
- As of June 30, 2026, the company had approximately $167 million in cash, cash equivalents and short-term investments.
Analysis
Twist delivered record third-quarter revenue of $118.4 million, up 23% from $96.1 million in the same period of fiscal 2025. The company described this as its fourteenth consecutive quarter of growth. Both segments grew year over year and sequentially: DSPS revenue rose 39% to $56.6 million, while NGS revenue rose 12% to $61.8 million. Customer activity also expanded, with products shipped to approximately 2,650 customers and approximately 369,000 genes physically shipped.
The revenue mix showed faster expansion in DSPS, while NGS remained the larger reported segment by revenue. Gross margin reached 52.8%, up from 51.6% in the second quarter of fiscal 2026, a sequential improvement of 120 basis points. Cost of revenues increased to $55.9 million from $44.8 million, while research and development expenses remained $18.0 million.
Profitability remains the key counterweight to the revenue and gross-margin progress. Selling, general and administrative expenses increased to $80.7 million from $63.4 million. Net loss was $(35.1) million, or $0.56 per diluted share, versus net income of $20.4 million, or $0.33 per diluted share, in the prior-year period. The company noted that the prior-year quarter included a $48.8 million gain from the spin out of Atlas Data Storage. Adjusted EBITDA was $(11.3) million versus $(8.0) million in the same period of fiscal 2025.
Management raised full-year fiscal 2026 revenue guidance to $456 million to $457 million from prior guidance of $442 to $447 million and continues to expect growth of approximately 21% year over year. It expects fourth-quarter revenue of approximately $123 million to $124 million, sequential growth in both DSPS and NGS Applications, and adjusted EBITDA breakeven. The company also expects full-year gross margin to be above 52%. Cash, cash equivalents and short-term investments were approximately $167 million as of June 30, 2026.
Management, verbatim
We continued our pattern of strong growth, reporting our fourteenth consecutive quarter of growth and exceeding guidance with revenue for the third quarter of fiscal 2026 of $118.4 million, growth of more than 23% compared to the third quarter of fiscal 2025.
Emily M. Leproust, Ph.D., CEO and co-founder of Twist Bioscience
Well into our final quarter of the fiscal year, we remain confident in our trajectory and continue to expect to achieve adjusted EBITDA breakeven this quarter. That milestone is not the destination. It's the foundation for delivering disciplined execution and profitable growth as we move through fiscal 2027.
Emily M. Leproust, Ph.D., CEO and co-founder of Twist Bioscience
Not in the filing
stated, not guessed- Operating income or loss was not reported in the provided document.
- Gross profit was not reported in the provided document.
- Prior-year gross margin was not reported.
- Prior-quarter total revenue was not reported.
- Prior-quarter cost of revenues, research and development expenses, selling, general and administrative expenses, net (loss) income, diluted EPS, and adjusted EBITDA were not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Capital expenditures were not reported.
- Debt was not reported.
- Share repurchases were not reported.
- Dividends were not reported.
- Tax rate was not reported.
- A separate previous outlook document was not provided for a formal vs_prior_guidance comparison.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K (Item 2.02) with Exhibit 99.1 covering Twist’s fiscal third quarter ended June 30, 2026 results and updated FY2026 guidance.
Ticker impact
Twist reported 3QFY26 revenue of $118.4M, raised FY2026 revenue guidance to $456-$457M, and reiterated Q4 adjusted EBITDA breakeven.
Likely positive bias for the next session and into the next earnings window, with focus on whether DSPS and NGS momentum sustains.
The filing discloses fresh, quantified results and updated full-year revenue guidance, which typically drives revisions to forward estimates and discount-rate expectations for growth biotechs.
Market effects
Reinforces investor appetite for profitable-path genomics and DNA synthesis platforms, potentially supporting sentiment across value biotech with improving gross margins.
Limited, primarily company-specific impact for a South San Francisco biotech.
Modest, as the disclosure is company-specific and not a sector-wide regulatory or macro shock.
Counterpoint
Despite revenue growth, TWST still reported a sizable net loss and adjusted EBITDA remains negative in 3Q, so the market may discount the breakeven claim until achieved.
Key entities
- companyTwist Bioscience Corporation
NASDAQ-listed genomics and DNA synthesis company reporting 3QFY26 results and raising FY2026 revenue guidance.
- executiveEmily M. Leproust, Ph.D.
CEO and co-founder quoted on growth trajectory and adjusted EBITDA breakeven expectation.
