Twist Bioscience Reports 23% Revenue Growth in Q3 Fiscal 2026 Despite Net Loss

Twist Bioscience Corporation reported a significant increase in revenue for the third quarter of fiscal 2026, with total revenues reaching $118.4 million, a 23% increase from $96.1 million in the same period last year. For the nine months ending June 30, 2026, revenues also rose by 20% to $332.8 million compared to $277.6 million in the prior year. The growth was primarily driven by strong performance in DNA synthesis and protein solutions, which saw a 39% increase, and NGS applications, which grew by 12%. However, the company continues to face challenges, reporting a net loss of $35.1 million for the quarter, a stark contrast to a net income of $20.4 million in the same quarter of the previous year.

The financial performance reflects a notable increase in costs, particularly in selling, general, and administrative expenses, which rose by 27% to $80.7 million for the quarter. This increase was attributed to higher personnel costs and investments in the company's commercial infrastructure. Additionally, litigation settlement costs of $7.2 million were recorded for the nine months ended June 30, 2026, further impacting profitability. The gross margin for the quarter decreased slightly to 52.8% from 53.4% year-over-year, while the nine-month gross margin improved to 52.1% from 50.5%, indicating some operational efficiencies despite rising costs.

Operationally, Twist Bioscience has expanded its customer base, serving over 3,800 customers annually across various sectors, including therapeutics and diagnostics. The number of genes shipped increased significantly, with approximately 369,000 genes shipped in the latest quarter compared to 237,000 in the same quarter last year. The company has also made strategic moves, including a license agreement with Invenra Inc. for a bispecific antibody discovery platform, which represents a total commitment of $33.8 million, settled through cash and common stock.

As of June 30, 2026, Twist Bioscience reported cash and cash equivalents of $117.4 million, down from $183.0 million at the end of the previous fiscal year. The company anticipates that its current cash reserves will be sufficient to fund operations for at least the next year. Looking ahead, the company has established an at-the-market equity offering program with a capacity of up to $200 million, which could provide additional liquidity if needed. Despite the ongoing losses and challenges, management remains focused on leveraging its manufacturing infrastructure and expanding its product offerings to drive future growth.