10-Q · May 4, 2026
Twist Bioscience reported strong Q2 FY26 results with revenue of $110.7 million, surpassing expectations of $107.7 million, showing a year-over-year increase of 19%. However, the company reported an EPS of -$0.59, which…
Earnings analysis · 10-Q
TWST earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
Twist delivered Q3 FY26 revenue of $118.376 million, up 23.2% year over year, supported by 39% growth in DNA synthesis and protein solutions and 12% growth in NGS applications. Profitability remains the key offset:…
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Twist delivered Q3 FY26 revenue of $118.376 million, up 23.2% year over year, supported by 39% growth in DNA synthesis and protein solutions and 12% growth in NGS applications. Profitability remains the key offset: gross margin declined 0.6 percentage points to 52.8%, operating loss widened to $36.3 million, and reported EPS was negative $0.56. Liquidity of $166.8 million supports the stated more-than-12-month runway, but operating cash use of $41.258 million and capex of $27.611 million in the first nine months keep cash burn and potential ATM dilution in focus.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.56
- Segment
- One reportable segment; product revenue: DNA synthesis and protein solutions $56.571 million (48% of revenue), NGS applications $61.805 million (52% of revenue).
What stood out
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Revenue growth remained strong
Q3 revenue rose 23.2% year over year to $118.376 million from $96.057 million. Revenue also increased sequentially from $111 million in Q2 FY26 to $118.376 million in Q3 FY26.
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Both product categories expanded
DNA synthesis and protein solutions revenue increased 39% to $56.571 million, while NGS applications grew 12% to $61.805 million. Therapeutics revenue increased to $40.413 million from $27.048 million, a major contributor to growth.
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Volume and customer base increased
The company shipped approximately 369,000 genes, up 56% from approximately 237,000 in the prior-year quarter, while purchasing customers increased to approximately 2,664 from approximately 2,484.
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Gross margin held near 53%
Gross margin was 52.8%, down only 0.6 percentage points from 53.4% a year earlier despite a 25% increase in cost of revenue to $55.922 million. Sequentially, margin improved from 51.6% in Q2 FY26.
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Cost actions targeted for Q4
Management expects SG&A expense to moderate in Q4 FY26 following cost-saving initiatives; Q3 SG&A was $80.709 million, or 68% of revenue.
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Liquidity supports near-term operations
Liquidity totaled $166.8 million at June 30, 2026, comprising $117.4 million of cash and cash equivalents and $49.4 million of short-term investments. The company states this is sufficient for more than 12 months under its current business plan.
What to watch
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Operating losses increased with SG&A
The operating loss widened 20.5% year over year to $36.3 million, despite the 23.2% increase in revenue. Operating margin was negative 30.7%, while SG&A rose 27% to $80.709 million.
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Cash burn and capex remain elevated
Net cash used in operations rose 15.2% to $41.258 million for the first nine months of FY26. Combined with $27.611 million of property-and-equipment purchases, this implies approximately $68.869 million of nine-month free-cash-flow usage.
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Working capital consumed cash
Accounts receivable increased by $8.5 million and inventories increased by $6.9 million during the first nine months, partly reflecting revenue growth and inventory built for anticipated demand. These working-capital uses contributed to operating cash outflow.
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Litigation cost and accumulated deficit
The company recorded $7.205 million of litigation settlement costs, net of recoveries, during the first nine months of FY26 and reported an accumulated deficit of $1.4292 billion at June 30, 2026.
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Potential equity dilution from ATM
The company has a $200.0 million at-the-market equity program, with its full capacity available at June 30, 2026. While no shares had been sold, future usage could dilute shareholders.
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No new risk-factor changes disclosed
The filing states that there were no material changes to risk factors from the November 17, 2025 Form 10-K. The principal disclosed liquidity constraint remains ongoing losses, including a $109.6 million net loss for the first nine months of FY26.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance. Management expects selling, general and administrative expense to moderate in Q4 fiscal 2026 from cost-saving initiatives.
Earlier filings 4
10-Q · February 2, 2026
Twist reported quarterly revenue of $103,698 (in thousands), up $14,985 (16.9%) year-over-year and up ~$4,698 (4.7%) sequentially, with gross margin expanding to ~52.1% (Revenue $103,698; Cost of revenues $49,726).…
10-K · November 17, 2025
Twist reported fiscal year 2025 revenue of $376.6 million driven by healthcare ($215.1M) and chemicals/materials ($93.2M) while continuing to invest in product expansion (Express products, NGS tools, antibody services).…
10-Q · August 4, 2025
Twist reported quarterly revenue of $96,057,000 and delivered GAAP net income of $20,390,000 (diluted EPS $0.33) for the three months ended June 30, 2025, driven largely by a $48,847,000 gain on the sale of its DNA Data…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.