Twist Bioscience Reports 23% Revenue Growth to $92.8 Million in Q2 FY 2025

Twist Bioscience Corporation reported a revenue increase of 23% for the second quarter of fiscal year 2025, generating $92.8 million compared to $75.3 million in the same period last year. The growth was primarily driven by a significant rise in sales of next-generation sequencing (NGS) tools and synthetic genes. The company also noted an improvement in gross margin, which rose to 49.6% from 41.0%, attributed to higher revenues and the spreading of fixed costs over a larger revenue base. Despite the revenue growth, Twist Bioscience continued to incur net losses, reporting a net loss of $39.3 million for the quarter, down from $45.5 million a year earlier.

In terms of operational metrics, the number of customers increased to approximately 2,431 in the latest quarter, up from 2,253 in the prior year. The company shipped around 227,000 genes during the quarter, an 18% increase from the 193,000 genes shipped in the same quarter of 2024. The Americas remained the largest market, contributing 59% of total revenues, while EMEA accounted for 33%, reflecting a growing international presence.

Twist Bioscience's total operating expenses for the quarter were $134.4 million, up from $124.2 million in the previous year, with selling, general, and administrative expenses rising by 14% to $63.7 million. This increase was largely due to higher stock-based compensation and third-party spending. Research and development expenses slightly decreased to $23.9 million, reflecting a focus on cost management amid ongoing investments in product development.

The company ended the quarter with $210.4 million in cash and cash equivalents, alongside $46.7 million in short-term investments. This financial position is expected to support operations for at least the next year. Additionally, Twist Bioscience executed a Royalty Purchase Agreement with XOMA (US) LLC, receiving an upfront payment of $15 million in exchange for future milestone and royalty payments from certain customer agreements, which will be recorded as a liability related to the sale of future revenue.

Looking ahead, Twist Bioscience aims to leverage its proprietary DNA synthesis platform to expand its product offerings and market reach. The company is focused on enhancing its manufacturing capabilities and exploring new market opportunities in synthetic biology and biologic drugs. Despite the ongoing net losses, management remains optimistic about achieving profitability through continued revenue growth and operational efficiencies.