Twist Bioscience — Fiscal 2026 Earnings Summary

Financial Performance:

• Total revenue for fiscal 2026 reached a record $459.4 million, a 22% increase from $376.6 million in fiscal 2025.
• Fiscal 2026 fourth-quarter revenue was a record $126.6 million, a 28% increase from $99.0 million in the same period of fiscal 2025, marking the 15th consecutive quarter of sequential growth.
• Gross margin for fiscal 2026 improved to 52.4% from 50.7% in fiscal 2025; fourth-quarter gross margin was 53.1% compared to 51.3% in the prior year period.
• Net loss for fiscal 2026 was $130.2 million ($2.08 per diluted share), compared to a net loss of $77.7 million ($1.30 per diluted share) in fiscal 2025.
• Net loss for the fourth quarter of fiscal 2026 decreased to $20.6 million ($0.32 per diluted share) from $27.1 million ($0.45 per diluted share) in the same period of fiscal 2025.
• Adjusted EBITDA for fiscal 2026 was $(35.9) million, an improvement from $(46.9) million in fiscal 2025; fourth-quarter adjusted EBITDA was positive at $2.2 million, compared to $(7.8) million in the prior year period.
• Cash, cash equivalents, and short-term investments totaled approximately $582 million as of September 30, 2026.
• Research and development expenses decreased to $71.8 million in fiscal 2026 from $80.3 million in fiscal 2025; fourth-quarter R&D expenses were $17.0 million, consistent with the prior year.
• Selling, general, and administrative expenses increased to $301.2 million in fiscal 2026 from $247.0 million in fiscal 2025; fourth-quarter SG&A was $74.7 million compared to $63.8 million in the prior year.
• Cost of revenues for fiscal 2026 was $218.6 million compared to $185.6 million in fiscal 2025; fourth-quarter cost of revenues was $59.4 million compared to $48.2 million in the prior year.

Guidance and Future Outlook:

• Full fiscal 2027 revenue guidance is set at $550 million to $560 million, representing approximately 21% year-over-year growth at the midpoint.
• First quarter fiscal 2027 revenue guidance is $130 million to $132 million, representing approximately 26% year-over-year growth at the midpoint.
• Fiscal 2027 gross margin is expected to be approximately 52.5% to 53%.
• Fiscal 2027 adjusted EBITDA is expected to be positive.
• Capital expenditures for fiscal 2027 are expected to be approximately $75 million as part of a two-year investment plan, excluding landlord-funded tenant improvements.
• Initial full-year revenue guidance assumes $100 million in revenue for AI drug discovery.

Business Segments and Product Lines:

• DNA Synthesis and Protein Solutions (DSPS) revenue grew 31.7% to $221.9 million in fiscal 2026 from $168.5 million in fiscal 2025; fourth-quarter DSPS revenue grew 33% to $61.0 million from $46.0 million in the prior year.
• NGS Applications (NGS) revenue grew 14.1% to $237.5 million in fiscal 2026 from $208.1 million in fiscal 2025; fourth-quarter NGS revenue grew 24% to $65.7 million from $53.0 million in the prior year.
• The company shipped products to approximately 4,100 customers in fiscal 2026, up from approximately 3,800 in fiscal 2025.
• Physical shipments increased to approximately 1.3 million genes in fiscal 2026 from approximately 938,000 in fiscal 2025.
• New product launches include Twist Express Screening Antibodies and Twist MRD Express, a custom panel with a turnaround time of as little as one day.
• The company joined Lilly TuneLab as a provider of antibody characterization services.

Other Key Points:

• The company raised net proceeds of approximately $425 million through an equity offering and at-the-market sales.
• The company reported a gain on sale of business of $48.8 million in fiscal 2025, with no such gain in fiscal 2026.
• Litigation settlement costs, net of recoveries, were $7.2 million in fiscal 2025, with no such costs in fiscal 2026.