0001581280-25-000009
SEC filingRevenue grew 18% to $96.1M, gross margin expanded to 53.4%, and net income of $20.4M driven by $48.8M gain on sale of DNA data storage business.
For the three months ended June 30, 2025, Twist Bioscience reported revenue of $96.1 million, an 18% increase from $81.5 million in the same period last year. The growth was primarily driven by NGS tools revenue, which rose $11.9 million, and synthetic genes revenue, which increased $2.7 million. Gross profit improved 45% to $51.3 million, and gross margin expanded 10.1 percentage points to 53.4%, attributed to revenue growth and relatively flat manufacturing costs. Operating loss narrowed significantly to $30.1 million from $88.9 million, largely due to the absence of a $44.9 million impairment charge recorded in the prior year and higher gross profit. Net income was $20.4 million compared to a net loss of $85.6 million, benefiting from a $48.8 million gain on the sale of the DNA data storage business. Interest income decreased to $2.7 million due to lower cash and investment balances.
Revenue by product showed NGS tools as the largest segment at $55.3 million (57% of total), growing 27% YoY. Synthetic genes contributed $27.7 million (29%), up 11%. Oligo pools grew 30% to $5.4 million, while DNA libraries declined 47% to $2.1 million. Antibody discovery revenue increased 10% to $5.6 million. By geography, Americas revenue grew 16% to $59.4 million (62% of total), EMEA increased 30% to $30.7 million (32%), and APAC declined 9% to $5.9 million (6%). By industry, healthcare represented 58% of revenue ($56.4 million, up 32%), industrial chemicals/materials 24% ($23.1 million, flat), academic research 17% ($15.9 million, up 7%), and food/agriculture 1% ($0.6 million, up 15%). Genes shipped increased 12% to 237,000, and customer count rose to approximately 2,484 from 2,300.
Management did not provide specific forward guidance in this MD&A. However, the company highlighted strategic priorities including leveraging its Wilsonville manufacturing facility, expanding NGS tools and synthetic genes, and unlocking value through the DNA data storage sale. The transaction with Atlas provides an upfront cash payment, promissory notes, and potential milestone and royalty payments. The company also entered into a $15.0 million sale of future revenue agreement with XOMA. Twist continues to invest in growth while managing costs, as evidenced by improved gross margins and reduced operating cash burn. The company expects to remain focused on achieving profitability through revenue growth and operational efficiencies.
As of June 30, 2025, Twist Bioscience held $201.4 million in cash and cash equivalents and $49.4 million in short-term investments, totaling $250.8 million in liquid assets. This compares to $276.4 million as of September 30, 2024. The Company also holds $54.3 million in equity securities, primarily from the Atlas transaction. Total stockholders' equity stood at $478.2 million, with an accumulated deficit of $1,292.4 million. The Company recognized a liability related to the sale of future revenue of $15.0 million, representing the upfront payment from XOMA Royalty. Management asserts that current liquidity is sufficient to fund operations for at least one year from the issuance date.
The Company has significant operating lease commitments, with total future minimum lease payments of $122.8 million as of June 30, 2025. The current portion of the operating lease liability is $15.5 million, with the remaining $62.6 million classified as non-current. The weighted-average remaining lease term is 15.2 years, with a discount rate of 6.5%. The Company also has $13.4 million in remaining performance obligations from customer contracts, expected to be recognized as revenue over the next twelve months. No material purchase commitments were disclosed in the Notes.
The Company did not pay dividends or conduct share buybacks during the period. Capital expenditures for the nine months ended June 30, 2025, were $15.6 million, primarily for property and equipment. Financing activities provided $23.0 million in net cash, driven by $15.0 million from the XOMA Royalty monetization and $8.0 million from stock option exercises and the employee stock purchase plan. The Company did not issue or repay traditional debt.
No segment-level operating income or margin data is disclosed in the Notes. Revenue is disaggregated by geography and product. Americas revenue was $168.3 million (60.6% of total) for the nine months, EMEA was $89.7 million (32.3%), and APAC was $19.6 million (7.1%). By product, NGS tools generated $155.1 million (55.9%), synthetic genes $82.4 million (29.7%), and antibody discovery $17.0 million (6.1%). By industry, healthcare contributed $158.5 million (57.1%).
Net loss of $(50,532) thousand narrowed significantly from $(174,071) thousand, yet operating cash use improved only modestly to $(35,814) thousand. Working-capital movements were mixed, with a large $(15,172) thousand increase in accounts receivable partially offset by payables growth. Capex intensity rose sharply to $(15,577) thousand from $(3,074) thousand, driving higher investing outflows. No dividends or meaningful share repurchases occurred; financing inflows stemmed mainly from a $15,000 thousand liability issuance and option exercises. One-time items include a $(48,847) thousand gain on sale of business and related non-cash equity consideration of $53,890 thousand. Overall cash declined $(25,227) thousand to $203,905 thousand.