Twist Bioscience Reports 19.3% Revenue Growth in Q2 Fiscal 2026 Despite Increased Net Loss

Twist Bioscience Corporation reported its financial results for the second quarter of fiscal 2026, revealing a revenue increase of 19.3% to $110.7 million compared to $92.8 million in the same period last year. For the six months ended March 31, 2026, revenues rose 18.1% to $214.4 million from $181.5 million. The growth was primarily driven by strong performance in DNA synthesis and protein solutions, which saw a 28% increase, and NGS applications, which grew by 12%. Despite the revenue growth, the company reported a net loss of $44.0 million for the quarter, up from a loss of $39.3 million in the prior year, and a six-month net loss of $74.5 million compared to $70.9 million.

The company's gross margin improved to 51.6% for the three months ended March 31, 2026, up from 49.6% in the same period last year, attributed to increased revenues and cost-saving initiatives. However, total costs and expenses rose to $156.6 million for the quarter, driven by higher selling, general, and administrative expenses, which increased by 19% to $76.1 million. The company also recorded litigation settlement costs of $7.2 million during the quarter, contributing to the overall increase in losses.

Operationally, Twist Bioscience served over 3,800 customers in the last year, with a notable increase in the number of genes shipped, which rose to approximately 300,000 in the latest quarter from 227,000 a year earlier. The company has also expanded its product offerings, combining synthetic biology tools and biopharma services into a single category, now referred to as DNA synthesis and protein solutions. This strategic shift aims to enhance clarity around its key customer groups and improve operational efficiency.

In February 2026, Twist entered into a significant license agreement with Invenra Inc. for its bispecific antibody discovery platform, alongside acquiring a 6.24% ownership interest in Invenra through the purchase of Series B Preferred Stock. The total commitment for these transactions amounts to $33.8 million, settled through a combination of cash and common stock. This acquisition is expected to bolster Twist's capabilities in the therapeutics market.

Looking ahead, the company anticipates that its current cash, cash equivalents, and short-term investments, totaling $171.7 million, will be sufficient to fund operations for at least the next year. However, management acknowledges the ongoing need for additional financing to support future growth and operational needs. The company remains focused on leveraging its manufacturing infrastructure and expanding its product portfolio to drive revenue growth and achieve profitability in the long term.