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After Plunging 33.8% in 4 Weeks, Here's Why the Trend Might Reverse for Twist Bioscience (TWST)
ZACKS· 2025-08-07 14:36
Core Viewpoint - Twist Bioscience (TWST) has experienced significant selling pressure, resulting in a 33.8% decline in stock price over the past four weeks, but analysts anticipate improved earnings in the near future [1] Group 1: Technical Analysis - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold conditions, with a reading below 30 typically indicating that a stock is oversold [2] - TWST's current RSI reading is 23.07, suggesting that the heavy selling may be exhausting, indicating a potential for a price rebound [5] - RSI helps investors identify potential entry points for stocks that have fallen below their fair value due to excessive selling pressure [3] Group 2: Fundamental Analysis - There has been a consensus among sell-side analysts to raise earnings estimates for TWST, with a 4.3% increase in the consensus EPS estimate over the last 30 days [7] - An upward trend in earnings estimate revisions is generally associated with price appreciation in the near term [7] - TWST holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate trends and EPS surprises, indicating strong potential for a turnaround [8]
Twist Bioscience(TWST) - 2025 Q3 - Quarterly Report
2025-08-04 20:24
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38720 Twist Bioscience Corporation (Exact Name of Registrant as Specified in its Charter) Delaware 46-2058888 ...
Twist Bioscience(TWST) - 2025 Q3 - Earnings Call Transcript
2025-08-04 13:02
Financial Data and Key Metrics Changes - For the fiscal year 2025 third quarter, the company reported record revenue of $96.1 million, an increase of 18% year over year [9][20] - Gross margin for the quarter was 53.4%, up from 43.3% in the previous year, reflecting improved operational efficiency and cost management [10][24] - Adjusted EBITDA loss was approximately $8 million, an improvement of about $14 million compared to the previous year [26] Business Line Data and Key Metrics Changes - Revenue from the synthetic biology (SynBio) segment was $35.2 million, reflecting a 7% year-over-year growth [10][20] - Next-generation sequencing (NGS) revenue increased to $55.3 million, a 27% year-over-year growth, driven by commercial assays for diagnostic tests [11][20] - Biopharma services revenue was $5.6 million, a 10% increase year over year [12][20] Market Data and Key Metrics Changes - Healthcare revenue rose to $56.4 million, a 32% increase compared to the same period last year [21] - Industrial chemical revenue was approximately flat at $23.1 million, while academic revenue grew by 7% to $15.9 million [22] - Geographically, revenue in the Americas increased by 16% to $59.4 million, while EMEA revenue rose by 30% to $30.7 million [23] Company Strategy and Development Direction - The company is focused on expanding its product portfolio and increasing market reach, particularly in the academic sector [9][10] - There is an emphasis on leveraging AI for drug discovery and enhancing customer engagement to drive growth [34] - The company aims to achieve adjusted EBITDA breakeven as a key operational milestone, with plans for continued top-line growth [18][35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the SynBio and NGS segments, citing strong customer relationships and demand [11][34] - The company is adapting to market shifts and challenges, viewing them as opportunities for innovation and growth [31][34] - Management highlighted the importance of maintaining gross margins above 50% while focusing on revenue growth [35] Other Important Information - The company ended the quarter with approximately $250.8 million in cash, cash equivalents, and short-term investments [27] - Guidance for total revenue for fiscal year 2025 is narrowed to $374 million to $376 million, indicating a year-over-year growth of approximately 19.7% at the midpoint [28] Q&A Session Summary Question: Insights on SynBio growth and customer trends - Management noted that existing products resonate well with customers, and there is a strong pipeline of new product introductions [39][40] Question: NGS product launch timelines and expectations - Management confirmed that product launches are on track, with expectations for significant growth in 2026 [46][49] Question: Impact of customer transition on revenue - Management indicated a $5 million revenue impact in Q4 due to a customer transition, with expectations for recovery in Q1 [60][61] Question: Academic market growth attribution - Management attributed growth in the U.S. academic market to the company's technology advantage and value proposition [64][66] Question: International growth and market adaptation - Management emphasized the company's low variable costs and ability to navigate tariff uncertainties, positioning it well for international growth [82]
Twist Bioscience(TWST) - 2025 Q3 - Earnings Call Transcript
2025-08-04 13:00
Financial Data and Key Metrics Changes - The company reported record revenue of $96.1 million for the third quarter of fiscal 2025, an increase of 18% year over year [7][18] - Gross margin improved to 53.4%, up from 43.3% in the same quarter of fiscal 2024, reflecting better volume leverage and continuous improvement efforts [8][22] - Adjusted EBITDA loss was approximately $8 million, an improvement of about $14 million compared to fiscal 2024 [23] Business Line Data and Key Metrics Changes - Revenue from the synthetic biology (SynBio) segment was $35.2 million, reflecting a 7% year-over-year growth, with underlying revenue growth exceeding 20% when excluding a significant prior year order [9][18] - Next-generation sequencing (NGS) revenue reached $55.3 million, a 27% increase year over year, driven by commercial assays for diagnostic tests [9][19] - Biopharma services revenue was $5.6 million, growing 10% year over year, with a strong order funnel [10][19] Market Data and Key Metrics Changes - Healthcare revenue rose to $56.4 million, a 32% increase year over year, driven by large pharma and biotech customers [19] - Industrial chemical revenue was approximately flat at $23.1 million, while academic revenue grew 7% to $15.9 million [20] - Geographically, revenue in the Americas increased 16% to $59.4 million, EMEA revenue rose 30% to $30.7 million, and APAC revenue was $5.9 million [21] Company Strategy and Development Direction - The company is focused on expanding its product portfolio and increasing market reach, particularly in the academic sector [7][9] - Plans for new product launches in synthetic biology are expected to unlock new market opportunities [15][29] - The company aims to achieve adjusted EBITDA breakeven as a key operational milestone while continuing to drive top-line growth [16][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in synthetic biology and NGS, highlighting strong customer relationships and demand [9][31] - The company is adapting to market shifts and leveraging AI as a catalyst for increased demand across its product offerings [31][32] - Management acknowledged potential short-term fluctuations in certain product groups but emphasized the resilience of their diversified customer base [31][32] Other Important Information - The company ended the quarter with approximately $250.8 million in cash, cash equivalents, and short-term investments [24] - Guidance for total revenue in fiscal 2025 is narrowed to $374 million to $376 million, indicating a year-over-year growth of approximately 19.7% at the midpoint [24][25] Q&A Session Summary Question: Insights on SynBio growth and customer trends - Management noted that existing products resonate well with customers, and there is a significant opportunity to convert smaller accounts into future growth drivers [36][38] Question: NGS product launch timelines and expectations - Management confirmed that product launches have been on time, with expectations for significant growth in MRD revenue in 2026 [42][46] Question: Impact of customer transition on revenue - Management indicated a $5 million revenue impact in Q4 due to a customer transition, with expectations for some recovery in Q1 [50][60] Question: U.S. academic market growth drivers - Management attributed growth in the U.S. academic market to their technology advantage and the ability to provide more value for the same budget [62] Question: International growth and market adaptation - Management highlighted their low variable costs and ability to navigate tariff uncertainties, positioning them well for continued growth [78][80]
Twist Bioscience(TWST) - 2025 Q3 - Earnings Call Presentation
2025-08-04 12:00
Financial Performance - The company reported revenue of $96.1 million, meeting guidance of approximately $94-97 million[9] - Adjusted EBITDA was $(8.0) million, exceeding guidance of $(13) million[9] - Gross margin reached 53.4%, achieving the target of exceeding 50%+ by 4QFY25[9] - Cash, cash equivalents, and short-term investments totaled $250.8 million as of June 30, 2025[34] Segment Revenue - SynBio revenue was $35.2 million, a 7% year-over-year growth, with approximately 237,000 genes shipped[13] - NGS revenue was $55.3 million, a 27% year-over-year growth, driven by expanded collaborations[16] - Biopharma Solutions revenue was $5.6 million, a 10% year-over-year growth, with $6.2 million in orders[19] FY2025 Guidance - Q4 FY2025 revenue is projected to be approximately $96 to $98 million, with SynBio contributing ~$38 to 39 million, NGS ~$52 to 53 million, and Biopharma ~$6 million[37] - Full-year FY2025 revenue is guided at approximately $374 to $376 million, with SynBio contributing ~$144 to 145 million, NGS ~$207 to 208 million, and Biopharma ~$23 million[37] - Full-year FY2025 Adjusted EBITDA is expected to be ~$(45 to 47M)[37]
Twist Bioscience(TWST) - 2025 Q3 - Quarterly Results
2025-08-04 11:21
[Third Quarter Fiscal 2025 Financial Performance](index=1&type=section&id=FISCAL%202025%20THIRD%20QUARTER%20FINANCIAL%20RESULTS) Twist Bioscience achieved record Q3 FY25 revenue of $96.1 million, an 18% increase, with a significant shift to $20.4 million net income due to a business sale gain Q3 FY2025 Key Financial Metrics (vs. Q3 FY2024) | Metric | Q3 FY2025 (Millions USD) | Q3 FY2024 (Millions USD) | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $96.1M | $81.5M | +18% | | Gross Margin | 53.4% | 43.3% | +10.1 p.p. | | Net Income (Loss) | $20.4M | ($85.6M) | N/A | | Adjusted EBITDA | ($8.0M) | ($22.0M) | +63.6% | Q3 FY2025 Revenue by Segment (vs. Q3 FY2024) | Segment | Q3 FY2025 Revenue (Millions USD) | Q3 FY2024 Revenue (Millions USD) | YoY Growth | | :--- | :--- | :--- | :--- | | NGS | $55.3M | $43.4M | +27% | | SynBio | $35.2M | $33.0M | +7% | | Biopharma | $5.6M | $5.1M | +10% | - The company's shift to net income was significantly impacted by a **$48.8 million gain** on the sale of a business during the quarter[19](index=19&type=chunk) - Operating expenses showed mixed changes, with **Research and Development expenses decreasing to $18.0 million** from $22.5 million, while **Selling, General and Administrative expenses increased to $63.4 million** from $56.8 million year-over-year[6](index=6&type=chunk) [Business and Operational Highlights](index=2&type=section&id=Recent%20Highlights%3A) The company expanded its customer base, increased gene shipments, and advanced strategic collaborations and product launches in Q3 - Operational metrics showed continued customer adoption with **2,484 customers** and **237,000 genes shipped**, up from the prior year[6](index=6&type=chunk) - Key strategic developments include a revised collaboration with Ginkgo Bioworks, an expanded collaboration with Element Biosciences, and the launch of a humanized transgenic mouse model for antibody discovery[6](index=6&type=chunk) [Updated Fiscal 2025 and Q4 Financial Guidance](index=2&type=section&id=Updated%20Fiscal%202025%20Financial%20Guidance) The company updated FY25 guidance, narrowing revenue to $374-$376 million and raising gross margin, while reaffirming its FY26 adjusted EBITDA breakeven goal Full Year Fiscal 2025 Guidance | Metric | FY2025 Guidance (Millions USD) | Previous Guidance (Millions USD) | | :--- | :--- | :--- | | Total Revenue | $374M - $376M | $372M - $379M | | Gross Margin | 50.5% - 51.0% | 49.5% | | Adjusted EBITDA | ($45.0M) - ($47.0M) | ($48.0M) - ($53.0M) | Fourth Quarter Fiscal 2025 Guidance | Metric | Q4 FY2025 Guidance (Millions USD) | | :--- | :--- | | Total Revenue | $96M - $98M | | Gross Margin | 51% - 52% | | Adjusted EBITDA | ($6.0M) - ($8.0M) | - The company maintains its long-term target of achieving **adjusted EBITDA breakeven by the end of fiscal 2026**[1](index=1&type=chunk)[7](index=7&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) This section presents unaudited financial statements, including detailed Q3 and YTD results, highlighting revenue growth, profitability, and liquidity [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Revenues for Q3 FY25 increased to $96.1 million, with a $48.8 million gain on business sale contributing to a net income of $20.4 million Q3 Income Statement Highlights (in thousands USD) | Line Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenues | $96,057 | $81,464 | | Loss from operations | ($30,120) | ($88,922) | | Gain on sale of business | $48,847 | $— | | Net income (loss) | $20,390 | ($85,571) | | Net income (loss) per share, basic | $0.34 | ($1.47) | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were $643.6 million, with cash and equivalents at $250.8 million, reflecting a strong financial position Key Balance Sheet Items (in thousands USD) | Line Item | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $201,373 | $226,316 | | Short-term investments | $49,425 | $50,083 | | Total current assets | $339,776 | $346,776 | | Total assets | $643,605 | $614,323 | | Total liabilities | $165,407 | $141,634 | | Total stockholders' equity | $478,198 | $472,689 | [Adjusted EBITDA Reconciliation](index=9&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA loss significantly improved to $8.0 million in Q3 FY25, reconciled from GAAP net income by adjusting for a business sale gain and non-cash expenses Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA (in thousands USD) | Line Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | GAAP net income (loss) | $20,390 | ($85,571) | | Gain on sale of business | ($48,847) | $— | | Stock-based compensation expense | $16,057 | $13,734 | | Depreciation and amortization | $6,065 | $8,301 | | Impairment of long-lived assets | $— | $44,930 | | **Adjusted EBITDA** | **($7,998)** | **($21,957)** | [Supplementary Information](index=3&type=section&id=Supplementary%20Information) This section provides context for financial results, including non-GAAP measure definitions, investor call details, and forward-looking statement disclaimers - The company uses **non-GAAP measures such as Adjusted EBITDA**, which it believes enhances investors' ability to compare results period-over-period by excluding certain non-cash or non-recurring items[8](index=8&type=chunk) - A **reconciliation of forward-looking Adjusted EBITDA guidance to GAAP net loss is not provided** due to the difficulty in predicting certain reconciling items, such as stock-based compensation expense[11](index=11&type=chunk) - The report includes a safe harbor statement cautioning that **forward-looking statements**, including financial guidance, are subject to various risks and uncertainties that could cause actual results to differ materially[15](index=15&type=chunk)
Twist Bioscience: Still Not There Yet
Seeking Alpha· 2025-07-15 20:02
Group 1 - The article highlights the ongoing discussions in the biotech sector, particularly focusing on covered call opportunities that have gained traction in recent quarters [1] - Twist Bioscience Corporation (NASDAQ: TWST) is being spotlighted for the first time in 2025, indicating a renewed interest in the company's performance and potential [2] - The investing group, The Biotech Forum, offers a model portfolio featuring 12-20 high upside biotech stocks, along with live chat discussions and weekly research updates [2] Group 2 - The article does not provide any specific financial data or performance metrics for Twist Bioscience Corporation or other companies mentioned [3][4]
Twist Bioscience (TWST) FY Conference Transcript
2025-06-03 16:00
Summary of Twist Bioscience (TWST) FY Conference Call - June 03, 2025 Company Overview - **Company**: Twist Bioscience - **Industry**: Biotechnology, specifically in DNA synthesis and related applications Key Points and Arguments 1. **Revolutionary Technology**: Twist Bioscience has miniaturized DNA synthesis onto a silicon platform, enabling the writing of 1,000,000 oligonucleotides in one run, which is described as unprecedented in scale and quality [5][6] 2. **Growth Trajectory**: The company has shown consistent growth over approximately ten years, with a target of reaching $1 billion in revenue, supported by strong operational and commercial execution [7][8] 3. **Market Understanding**: The leadership team has deep knowledge of end markets, which allows for innovative product development and market share expansion [6][8] 4. **Production Capacity**: Twist has the capacity to produce 16,000,000 oligonucleotides per day, which supports a diverse product portfolio and strong differentiation in the market [7][49] 5. **Financial Performance**: For Q2 FY 2025, the company reported revenue of $92.8 million with a margin just under 50%, and an adjusted EBITDA of $14.8 million [50][51] 6. **Operational Efficiency**: The company maintains discipline in spending, with SG&A and R&D expenses controlled, allowing for margin expansion as revenue grows [10][31] 7. **Market Opportunities**: The company is positioned to capitalize on growing markets, including liquid biopsy and minimal residual disease (MRD), with innovative product offerings tailored to these segments [12][36] 8. **Customer-Centric Approach**: Twist focuses on providing a positive user experience, which is critical for customer retention and satisfaction [11][17] 9. **Sustainability**: The miniaturization of DNA synthesis significantly reduces the carbon footprint of gene production, enhancing the company's appeal in environmentally conscious markets [34][38] 10. **Diverse Product Portfolio**: The company offers a wide range of products across various segments, including Synbio, next-generation sequencing (NGS), and biopharma solutions, catering to diverse customer needs [32][47] Additional Important Insights 1. **Geopolitical Tailwinds**: The company benefits from being a U.S.-based manufacturer, which is advantageous in the current geopolitical climate [12] 2. **Long-Term Strategy**: Twist emphasizes a long-term approach to product development, focusing on sustained innovation rather than short-term gains [16][29] 3. **Competitive Landscape**: The company is aware of its competition and aims to differentiate itself through superior technology and customer service [22][40] 4. **Emerging Markets**: The company sees significant potential in the MRD market, which is characterized by bespoke tumor-informed panels that leverage Twist's strengths [58][60] 5. **Investment in Infrastructure**: Twist is investing heavily in automation and infrastructure to support its growth and capacity expansion, with a focus on maintaining low variable costs [28][31] This summary encapsulates the key points discussed during the conference call, highlighting Twist Bioscience's innovative technology, growth strategy, financial performance, and market opportunities.
Twist Bioscience: Expansion Efforts Continue To Face Challenges
Seeking Alpha· 2025-05-07 06:18
Company Performance - Twist Bioscience (NASDAQ: TWST) reported solid results in the second quarter of FY2025, but the management team appeared downbeat on the earnings call [1] - The company has chosen to spin out its data storage segment, with a fairly modest value attached to the business [1] Investment Insights - Narweena, an asset manager led by Richard Durant, focuses on identifying market dislocations due to poor understanding of long-term business prospects [1] - The firm believes excess risk-adjusted returns can be achieved by identifying businesses with secular growth opportunities in markets with barriers to entry [1] - Narweena's research process emphasizes company and industry fundamentals to uncover unique insights [1] Market Trends - An aging population with low population growth and stagnating productivity growth is expected to create a different opportunity set compared to past trends [1] - Many industries may face stagnation or secular decline, which could improve business performance if competition decreases [1] - Conversely, some businesses may encounter rising costs and diseconomies of scale [1] - The economy is increasingly dominated by asset-light businesses, leading to a declining need for infrastructure investments over time [1] - A large pool of capital is chasing a limited set of investment opportunities, driving up asset prices and compressing risk premia [1]
Twist Bioscience(TWST) - 2025 Q2 - Quarterly Report
2025-05-05 20:05
PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, and cash flows, for the period ended March 31, 2025 Condensed Consolidated Balance Sheet Highlights (unaudited) | (In thousands) | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $210,437 | $226,316 | | Total current assets | $338,442 | $346,776 | | Total assets | $595,615 | $614,323 | | **Liabilities & Stockholders' Equity** | | | | Total current liabilities | $74,976 | $71,006 | | Total liabilities | $155,507 | $141,634 | | Total stockholders' equity | $440,108 | $472,689 | Condensed Consolidated Statements of Operations Highlights (unaudited) | (In thousands, except per share data) | Six Months Ended March 31, 2025 | Six Months Ended March 31, 2024 | | :--- | :--- | :--- | | Revenues | $181,506 | $146,800 | | Loss from operations | $(76,205) | $(95,866) | | Net loss | $(70,922) | $(88,500) | | Net loss per share, basic and diluted | $(1.19) | $(1.54) | Condensed Consolidated Statements of Cash Flows Highlights (unaudited) | (In thousands) | Six Months Ended March 31, 2025 | Six Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(34,414) | $(42,396) | | Net cash used in investing activities | $(2,962) | $(1,075) | | Net cash provided by financing activities | $21,140 | $355 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, revenue disaggregation, financial instrument valuations, stock-based compensation, legal proceedings, and a significant subsequent spin-off event - As of March 31, 2025, the company had an accumulated deficit of **$1,312.8 million**, with management believing current cash, cash equivalents, and short-term investments are sufficient to fund operations for at least one year[31](index=31&type=chunk) Revenue by Product (Six Months Ended March 31) | (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Synthetic genes | $54,708 | $42,083 | | NGS tools | $99,788 | $80,191 | | Other | $26,910 | $24,526 | | **Total** | **$181,506** | **$146,800** | - On October 21, 2024, the company received an upfront payment of **$15.0 million** from XOMA Royalty for half of future potential milestone and royalty payments, recorded as a liability related to the sale of future revenue[98](index=98&type=chunk) - On May 2, 2025, the company sold its DNA digital data storage assets to Atlas Data Storage, Inc. for equity, cash, promissory notes, and potential future milestone and royalty payments[101](index=101&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results, highlighting a **23% revenue increase** and improved gross margin for the three months ended March 31, 2025, alongside reduced net loss and improved operating cash flow, with sufficient capital for near-term operations [Overview](index=29&type=section&id=Overview) This overview describes the company's synthetic biology business and highlights key financial improvements for the three months ended March 31, 2025, including a **23% revenue increase** and improved gross margin Q2 FY2025 Financial Highlights (vs. Q2 FY2024) | Metric | Q2 FY2025 | Q2 FY2024 | | :--- | :--- | :--- | | Revenues | $92.8 million | $75.3 million | | Gross Margin | 49.6% | 41.0% | | Loss from Operations | $(41.6) million | $(48.9) million | | Net Loss | $(39.3) million | $(45.5) million | | Net Loss per Share | $(0.66) | $(0.79) | - The company serves approximately **3,562 customers** annually across healthcare, chemicals/materials, food/agriculture, and academic research industries[106](index=106&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) This section details financial results for the three and six months ended March 31, 2025, showing **23% revenue growth**, significant gross margin expansion, and mixed trends in operating expenses Revenue Comparison (Three Months Ended March 31) | (in thousands) | 2025 | 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenues | $92,793 | $75,302 | $17,491 | 23% | - For the three months ended March 31, 2025, the increase in revenues was primarily driven by a **$10.4 million** growth in NGS tools and a **$5.9 million** growth in synthetic genes[118](index=118&type=chunk) Operating Expenses Comparison (Three Months Ended March 31) | (in thousands) | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Cost of Revenues | $46,765 | $44,420 | 5% | | Research & Development | $23,917 | $24,149 | (1)% | | Selling, General & Administrative | $63,671 | $55,622 | 14% | [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company held **$210.4 million** in cash and equivalents, with operations financed through equity, debt, and revenue, and improved operating cash flow usage for the six-month period - As of March 31, 2025, the company held **$210.4 million** in cash and cash equivalents and **$46.7 million** in short-term investments[138](index=138&type=chunk) - Net cash used in operating activities decreased to **$34.4 million** for the six months ended March 31, 2025, compared to **$42.4 million** for the same period in 2024[143](index=143&type=chunk)[144](index=144&type=chunk) - Financing activities provided **$21.1 million** in cash, primarily from a **$15.0 million** upfront payment from XOMA for the sale of future revenue, alongside proceeds from stock option exercises and the ESPP[148](index=148&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's exposure to market risk has not materially changed since September 30, 2024, with further details available in the Annual Report on Form 10-K - The company's exposure to market risk has not materially changed since September 30, 2024[155](index=155&type=chunk) [Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes in internal control over financial reporting during the quarter - Based on an evaluation as of March 31, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[156](index=156&type=chunk) - No changes occurred during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[157](index=157&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company is defending against a securities class action lawsuit and a related shareholder derivative suit, both stemming from a November 2022 short-seller report, with potential loss currently inestimable - The company is defending against a securities class action lawsuit (Peters v. Twist Bioscience Corporation, et al.) filed in December 2022, based on allegations from a Scorpion Capital report[75](index=75&type=chunk) - A shareholder derivative suit (Shumacher vs. Leproust et al.) was filed in September 2023 based on substantially the same allegations as the securities class action, currently stayed pending a motion to dismiss in the class action case[79](index=79&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) Key risk factors include adverse global economic conditions, geopolitical tensions, U.S. policy changes, and the potential failure to realize anticipated benefits from the DNA data storage business spin-out - Adverse global economic conditions, geopolitical tensions, and U.S. policy changes like new tariffs and halts on federal research grants could negatively affect the company's business and financial condition[163](index=163&type=chunk) - The company may not achieve the anticipated benefits from the May 2025 spin-out of its DNA data storage business to Atlas Data Storage, and the divestiture reduces business diversification[164](index=164&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[165](index=165&type=chunk) [Defaults Upon Senior Securities](index=44&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None[166](index=166&type=chunk) [Mine Safety Disclosures](index=46&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - Not applicable[167](index=167&type=chunk) [Other Information](index=46&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the fiscal quarter ended March 31, 2025 - No directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the quarter ended March 31, 2025[168](index=168&type=chunk) [Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including amendments to the Certificate of Incorporation, the 2018 Equity Incentive Plan, and CEO/CFO certifications - Key exhibits filed include the Certificate of Amendment to Amended and Restated Certificate of Incorporation, the Amended and Restated 2018 Equity Incentive Plan, and certifications by the CEO and CFO[170](index=170&type=chunk)