0001581280-25-000025
SEC filingTwist Bioscience achieved 20% revenue growth and gross margin expansion to 50.7%, driven by NGS tools and synthetic genes, while significantly narrowing operating losses.
Twist Bioscience Corporation has developed a proprietary silicon-based DNA synthesis platform that writes over 1,000,000 oligonucleotides up to 500 bases on each chip, reducing chemical usage by an estimated 99.8% versus plate-based methods. The integrated platform combines this technology with proprietary software, scalable infrastructure and an e-commerce system to deliver high-quality synthetic DNA at lower cost and higher throughput.
Revenue is generated through three primary lines: synthetic biology products, NGS tools and biopharma services. In fiscal 2025 the company reported sector-level revenue of $215.1 million from healthcare, $93.2 million from chemicals/materials, $65.9 million from academic research and $2.4 million from food/agriculture.
Synthetic biology offerings include clonal and non-clonal genes up to 5,000 base pairs, oligo pools up to one million sequences, and IgG proteins produced in CHO or HEK293 lines. NGS tools comprise library preparation kits, human exome and custom panels, FastHyb solutions, methylation detection kits and synthetic controls. Biopharma services provide end-to-end antibody discovery using in vivo, in vitro and in silico methods.
A multi-channel model combines direct sales teams for synthetic DNA and NGS, a dedicated biopharma business development group, an e-commerce platform for on-demand ordering, and distributors plus consultants in Europe and Asia. The company serves more than 3,800 customers globally and had 442 revenue-generating partnerships as of September 30, 2025.
The synthetic biology market is characterized by price, quality, turnaround time and scale competition. Named competitors include GenScript, GENEWIZ, Integrated DNA Technologies, GeneArt, Eurofins Genomics, Elegen, Ansa Biotechnologies, Thermo Fisher, Illumina, Agilent, Adimab and AbCellera.
Stated priorities are to remain the provider of choice for affordable synthetic DNA/RNA/proteins, expand antibody and protein production capabilities, become a leading NGS sample-preparation supplier, grow biopharma services, and increase global reach.
As of September 30, 2025 the company employed 979 people, with 412 dedicated to manufacturing and operations across facilities in South San Francisco and Wilsonville. The workforce operates under guiding principles of grit, impact, service and trust, supported by leadership programs, tuition reimbursement and quarterly engagement surveys.
Twist Bioscience Corporation delivered a strong fiscal year 2025, marked by robust revenue growth and significant margin expansion. Total revenues increased 20% to $376.6 million, up from $313.0 million in fiscal 2024. This top-line acceleration was primarily fueled by a $39.0 million increase in NGS tools and a $20.9 million increase in synthetic genes, driven by higher sales volumes to customers in the healthcare, industrial chemicals/materials, and academic research industries. The company's customer base expanded to over 3,800 accounts, with repeat customers contributing 99% of revenue, underscoring strong loyalty and platform stickiness.
Profitability metrics showed dramatic improvement. Gross profit surged 43% to $191.0 million, with gross margin expanding 810 basis points to 50.7% from 42.6% in the prior year. Management attributed this to revenue growth, holding fixed manufacturing costs relatively flat, and driving cost savings through continuous process improvement initiatives. This operational leverage flowed through to the bottom line, where the net loss narrowed substantially to $77.7 million from $208.7 million. The loss from operations decreased to $(136.3) million from $(220.8) million, a $84.5 million improvement. This was aided by a 12% reduction in research and development expenses to $80.3 million, primarily due to the sale of the DNA data storage business, partially offset by a 13% increase in selling, general and administrative expenses to $247.0 million, driven by higher stock-based compensation and personnel costs.
Twist's product mix continued to be dominated by NGS tools, which accounted for 55% of total revenue at $208.1 million, growing 23% year-over-year. Synthetic genes, representing 30% of revenue, also grew 23% to $113.6 million, supported by a 22% increase in the number of genes shipped to approximately 938,000. The strategic convergence of the SynBio and Biopharma businesses was highlighted, with antibody discovery revenue growing 15% to $23.5 million. Geographically, the Americas remained the largest market at 60% of revenue, while EMEA showed strong momentum, growing to 33% of the mix from 30% in the prior year. The company's multi-channel strategy, combining a direct sales force with an e-commerce platform, continues to effectively address its diverse, global customer base.
Management's outlook is focused on leveraging its integrated platform to serve the full spectrum of innovation from DNA to proteins. The company believes its existing cash, cash equivalents, and short-term investments of $232.4 million, combined with anticipated cash flows from operations, are sufficient to meet capital needs for more than 12 months. Strategic actions, including the sale of the DNA data storage business to Atlas for a $48.8 million gain and a $15.0 million royalty monetization with XOMA, have bolstered liquidity and sharpened the company's strategic focus. While no specific quantitative guidance was provided, the narrative emphasizes continued penetration of domestic and international markets, new product launches, and leveraging the manufacturing facility in Wilsonville, Oregon, to drive future revenue growth and progress toward profitability.
As of September 30, 2025, Twist Bioscience held $183.0M in cash and cash equivalents and $49.4M in short-term investments, totaling $232.4M. Total assets were $641.9M, with stockholders' equity of $473.0M. The company has no long-term debt, but recorded a $15.0M liability related to the sale of future revenue (XOMA Royalty agreement). Inventory increased to $28.3M from $24.1M, and accounts receivable rose to $57.0M from $34.9M. Goodwill decreased to $82.2M due to the sale of the DNA data storage business.
Future minimum lease payments under non-cancellable operating leases total $118.9M as of September 30, 2025, with $14.0M due within one year, $17.0M in years 1-3, and $88.0M thereafter. The company also has a $15.0M liability from the XOMA royalty purchase agreement, which will be repaid through future milestone and royalty payments. No other material purchase commitments were disclosed.
Twist Bioscience did not repurchase any shares or pay dividends in FY2025. Capital expenditures were $28.0M, primarily for property and equipment. The company issued $15.0M in debt-like liability through the XOMA agreement. No new buyback authorization or dividend program was announced.
The company operates as a single reportable segment. Revenue by product: NGS tools $208.1M (55%), synthetic genes $113.6M (30%), antibody discovery $23.5M (6%), oligo pools $20.2M (5%), and DNA libraries $11.2M (3%). Geographically, Americas contributed $225.6M (60%), EMEA $124.2M (33%), and APAC $26.8M (7%). No customer exceeded 10% of revenue.
Twist Bioscience has incurred net losses every period since inception, with $77.7 million net loss in FY2025 and an accumulated deficit of $1.3 billion. The company expects continued losses and may never achieve profitability. Revenue growth is uncertain, and failure to manage growth could harm operations. The company depends on a single-source supplier for a critical DNA synthesis component; loss of this supplier could cause delays. Manufacturing is concentrated in two facilities (Wilsonville, OR and South San Francisco, CA), vulnerable to natural disasters.
The synthetic biology market is highly competitive, with rivals like GenScript, IDT, Thermo Fisher, and others. Rapid technological change, including AI, could render products obsolete. Twist relies heavily on its synthetic DNA products and must continuously innovate to maintain its position. Customer concentration is a risk, as a limited number of large customers account for significant revenue.
Twist's e-commerce platform and IT systems face cybersecurity threats, including phishing, ransomware, and AI-driven attacks. Despite ISO 27001 certification, breaches could disrupt operations, expose sensitive data, and lead to litigation. The company also faces data privacy regulations globally.
New U.S. tariffs and trade restrictions, as well as geopolitical tensions, could increase costs and disrupt supply chains. The company is subject to export controls, biosecurity regulations (FSAP), and potential FDA regulation of IVD products. Changes in tax laws, such as the One Big Beautiful Bill Act, may impact financial results.
Twist owns or licenses over 200 patents, but patent protection is uncertain. Litigation may be necessary to enforce IP rights, and competitors may design around patents. The company also faces risks from trade secret misappropriation and potential infringement claims.
The spin-out of DNA data storage to Atlas may not yield anticipated benefits. The company has never paid dividends and expects to retain earnings. Stock price volatility is likely due to various factors, including short seller attacks and market conditions.
No Consolidated Statements of Cash Flows data included in provided excerpt. Unable to assess CFO vs net income, capex intensity, or FCF. Balance sheet indicates cash and equivalents decreased year-over-year.