Core Viewpoint - Twist Bioscience (TWST) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on February 2, with a consensus estimate of a quarterly loss of $0.48 per share, reflecting a year-over-year change of +9.4% [3][11]. - Revenues are projected to reach $101.45 million, which is a 14.4% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their initial estimates during this period [4]. - The Most Accurate Estimate for Twist Bioscience is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.05%, suggesting a bearish outlook from analysts [11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the deviation of actual earnings from the consensus estimate, with positive readings being more reliable [8][9]. - Twist Bioscience currently holds a Zacks Rank of 2 (Buy), but the negative Earnings ESP complicates predictions of an earnings beat [11]. Historical Performance - In the last reported quarter, Twist Bioscience was expected to post a loss of $0.40 per share but actually reported a loss of $0.45, resulting in a surprise of -12.50% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates two times [13]. Industry Comparison - Regeneron (REGN), another player in the biomedical and genetics industry, is expected to report earnings of $10.6 per share for the same quarter, indicating a year-over-year change of -12.2% and revenues of $3.82 billion, up 0.7% from the previous year [17][18]. - Regeneron has an Earnings ESP of +1.06% and a Zacks Rank of 1 (Strong Buy), suggesting a higher likelihood of beating the consensus EPS estimate [19].

Core Viewpoint - Twist Bioscience is positioned as an emerging leader in life science tools, focusing on a semiconductor approach to DNA synthesis and serving multiple applications in the multibillion-dollar markets [2][3]. Group 1: Company Overview - Twist Bioscience operates globally and is recognized for outperforming in the markets it serves [2]. - The company offers a diverse range of products, including DNA synthesis and protein solutions, as well as applications in next-generation sequencing (NGS) [3]. Group 2: Key Applications - The primary applications of Twist's technology include therapeutic drug discovery, diagnostics, and sustainable chemical production using engineered organisms [3]. - The company emphasizes its role in enhancing food security through the engineering of traits in plants and animals [3]. Group 3: Market Position - Twist Bioscience serves top-tier institutions across various markets, indicating a strong reputation and demand for its products [4].

Summary of Twist Bioscience FY Conference Call Company Overview - **Company**: Twist Bioscience (NasdaqGS:TWST) - **Industry**: Life Science Tools - **Key Technology**: Semiconductor approach to DNA synthesis - **Core Products**: DNA synthesis, protein solutions, NGS applications, and AI-driven drug discovery solutions [2][3] Market Position and Growth - **Customer Base**: Nearly 4,000 customers across various markets [3] - **Serviceable Addressable Market (SAM)**: - 2020: $2 billion - 2025: $7 billion - 2030 (projected): >$12 billion [4][5] - **Revenue Growth**: - Over 20% year-over-year growth last year - 12 consecutive quarters of revenue growth at a CAGR of 24% [5][9] Financial Performance - **Gross Margin**: Exceeded 50% last year, with a focus on revenue growth rather than gross margin growth moving forward [8][22] - **Adjusted EBITDA Break-even**: Expected in Q4 2026, marking a significant milestone for the company [6][22] - **Q1 FY 2025 Performance**: - DNA synthesis and protein solutions revenue: $52 million (27% growth) - NGS application revenue: $53 million (8% growth, 18% excluding one transitioning customer) [23][24] Product and Innovation Strategy - **NPI (New Product Introduction) Machine**: Continuous product development leading to a diverse product lineup, enhancing competitive advantage [4][19] - **AI Drug Discovery**: Contributed $25 million to revenue growth in FY 2025, with a focus on large pharma, AI companies, and the "Magnificent Seven" tech firms [12][28] - **Customer Engagement**: Strategy to expand wallet share by upselling additional products and services to existing customers [11][12] Competitive Advantages - **Product Quality and Speed**: Ability to deliver high-quality products quickly and at competitive prices, which is a key factor for customer retention and acquisition [11][26] - **Operational Excellence**: Leveraging automation to maintain low variable costs and high gross margins [21][22] - **Market Adaptability**: Ability to pivot and meet customer needs, especially in the rapidly evolving AI drug discovery space [13][27] Industry Dynamics - **NGS Applications**: Majority of revenue derived from diagnostic companies, with a strong correlation between diagnostic revenue growth and Twist's revenue [31] - **Impact of Sequencing Costs**: Lower sequencing costs are expected to benefit the business by making tests more affordable and accessible [40][41] Future Outlook - **Growth Strategy**: Focus on continuous product launches, expanding SAM, and maintaining high customer satisfaction [44] - **Market Positioning**: Despite strong performance, the company believes its market valuation does not reflect its execution and innovation compared to competitors [44] Conclusion - Twist Bioscience is positioned for significant growth with a robust product pipeline, strong financial performance, and a strategic focus on innovation and customer satisfaction. The company aims to leverage its technological advantages to capture a larger share of the expanding life science tools market [22][44]

WRITING THE FUTURE JANUARY 2026 LEGAL DISCLAIMER This presentation contains forward-looking statements. All statements other than statements of historical facts contained herein are forward-looking statements the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding future growth and expansion, estimated turnaround times, revenue and gross margin growth, market si ...

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] Group 1: AI and Energy Demand - AI technologies, particularly large language models like ChatGPT, are extremely energy-intensive, with data centers consuming as much energy as small cities [2] - The increasing demand for AI is straining global power grids, leading to rising electricity prices and a need for utilities to expand capacity [2] - Industry leaders, including Sam Altman and Elon Musk, have highlighted the critical link between AI development and energy availability, warning of potential shortages [2] Group 2: Investment Opportunity - A specific company is positioned as a key player in the AI energy sector, owning critical energy infrastructure assets that will benefit from the anticipated surge in energy demand from AI data centers [3][7] - This company is not a chipmaker or cloud platform but is described as a "toll booth" operator in the energy market, profiting from the increasing need for electricity [5][6] - The company is debt-free and has significant cash reserves, equating to nearly one-third of its market capitalization, making it an attractive investment option [8] Group 3: Market Position and Growth Potential - The company plays a vital role in U.S. LNG exportation, which is expected to grow under the current administration's energy policies [7] - It is capable of executing large-scale engineering, procurement, and construction projects across various energy sectors, positioning it well for future growth [7] - The company also holds a substantial equity stake in another AI-related venture, providing investors with indirect exposure to multiple growth opportunities [9] Group 4: Valuation and Investor Interest - The stock is currently trading at less than 7 times earnings, which is considered undervalued given its connections to AI and energy sectors [10] - There is growing interest from hedge funds, indicating that this investment opportunity is gaining traction among sophisticated investors [9][10] - The company is characterized as delivering real cash flows and owning critical infrastructure, distinguishing it from speculative stocks [11]

Core Insights - Twist Biosciences Corporation is highlighted as one of the most promising gene editing stocks according to analysts, with recent price target increases reflecting confidence in its performance [1][2]. Company Overview - Twist Bioscience (NASDAQ: TWST) is a biotechnology company that has developed a proprietary silicon-based DNA synthesis platform, which is essential for modern genetic research and engineering [4]. Analyst Ratings and Price Targets - Barclays raised its price target for TWST from $37 to $39 while maintaining an Overweight rating, indicating confidence in the company's margin progress and expected performance in the life sciences tools sector [1]. - Stephens initiated coverage on TWST with an Overweight rating and a price target of $41, citing the company's proprietary technology as a competitive advantage in synthetic biology and research markets [2]. Product Developments - On December 4, 2025, Twist Bioscience launched research-grade Plasmid DNA Preps aimed at supporting pre-clinical nucleic acid therapeutics research, enhancing its role as a supplier for biotech and pharmaceutical discovery workflows [3].

Group 1 - Twist Bioscience's revenue growth is moderating due to macro headwinds and temporary factors affecting growth [1] - Narweena, an asset manager, focuses on identifying market dislocations and businesses with long-term growth opportunities [1] - The investment strategy emphasizes smaller cap stocks and markets with less obvious competitive advantages [1] Group 2 - An aging population and low population growth are expected to create new investment opportunities, contrasting with past trends [1] - Many industries may experience stagnation or secular decline, potentially improving business performance due to reduced competition [1] - The economy is increasingly dominated by asset-light businesses, leading to a decline in infrastructure investment needs [1]

Group 1 - Twist Bioscience's revenue growth is moderating due to macro headwinds and temporary factors affecting growth [1] - Narweena, an asset manager, focuses on identifying market dislocations and businesses with long-term growth opportunities [1] - The investment strategy emphasizes smaller cap stocks and markets with less obvious competitive advantages [1] Group 2 - The aging population and low population growth are expected to create new investment opportunities distinct from past trends [1] - Many industries may experience stagnation or secular decline, potentially improving business performance due to reduced competition [1] - The economy is increasingly dominated by asset-light businesses, leading to a decline in infrastructure investment needs [1]

Core Insights - Twist Bioscience Corporation (NASDAQ:TWST) is recognized as a leading gene-editing stock by hedge funds, with an Overweight rating and a price target of $41 assigned by analyst Steven Etoch from Stephens [1][2] - The company's DNA synthesis platform, which utilizes silicon chip technology, provides advantages in cost, speed, and scalability, serving markets such as drug discovery, next-generation sequencing (NGS), and synthetic biology [1][4] Financial Performance - Twist has experienced strong revenue growth of 22.7% over the past year, with a five-year compound annual growth rate (CAGR) of 42% [2] - The company is expected to reach adjusted EBITDA break-even by the end of fiscal year 2026 [2] Market Opportunities - NGS is identified as a significant growth opportunity, particularly in applications like liquid biopsy and minimal residual disease (MRD) monitoring [3] - Expansion into adjacent markets is seen as a strategy for strengthening customer relationships [3]

Summary of Twist Bioscience Conference Call Company Overview - **Company**: Twist Bioscience (NasdaqGS:TWST) - **Industry**: Biotechnology, specifically focusing on DNA, RNA, and protein synthesis - **Key Customers**: Academic researchers, clinical diagnostic companies, biopharmaceutical companies, industrial chemical companies [1][2] Financial Performance - **Q4 Revenue**: $99 million - **Annual Revenue**: $376.6 million - **Guidance Exceeded**: Exceeded initial guidance by approximately $7 million despite a challenging economic environment [8][9] - **Gross Margin Improvement**: Increased by 20 percentage points over the last two years, now above 50% [9] - **Agility Beta Break-Even**: Projected to reach break-even by Q4 2026, with a loss of $8 million in the last quarter [9][10] Market Dynamics - **Stock Performance**: Despite strong quarterly updates, the stock is down over 40% year-to-date, indicating a disconnect between market perception and company performance [2][3] - **NGS Segment**: - Revenue of $208 million last year, accounting for about 55% of total sales, with over 20% year-over-year growth. - Guidance for fiscal 2026 implies about 12% growth [25][29] - Addressable market for MRD liquid biopsy estimated at $2.2 billion [25] - Overall NGS opportunity estimated at $3 billion with less than 10% market share [29] Customer Dynamics - **Key Customer Transition**: One significant NGS customer transitioning from clinical trials to commercial ramp, causing short-term revenue fluctuations [10][34] - **Volume Growth**: Excluding the impact of the key customer, the business is growing at approximately 20% [34][36] Strategic Insights - **R&D Focus**: Shifted from gross margin optimization to revenue growth, with flat operating expenses from 2022 to 2025 while growing revenue by 85% [16][17] - **Market Adaptability**: The company is positioned to pivot based on market dynamics, with a blended R&D approach across segments [20][23] - **Emerging Opportunities**: Identified new revenue streams from AI companies, with over $25 million in order growth anticipated from 2024 to 2025 [21][22] Pricing and Sales Strategy - **Pricing Dynamics**: Average Selling Price (ASP) decreased by 11% in Q4, attributed to increased volume in therapeutics and competitive pricing strategies [53][55] - **Pharma Orders**: Significant pharma orders in Q4 are expected to provide visibility and revenue growth in the first half of the fiscal year [56][57] Future Outlook - **Growth Potential**: The company aims to leverage its technology and market position to explore new revenue opportunities, with a focus on maintaining a competitive edge in both NGS and DNA synthesis segments [20][24] - **Long-term Vision**: Emphasis on adaptability and customer proximity to capitalize on emerging market trends and demands [23][24] Conclusion - Twist Bioscience demonstrates strong financial performance and growth potential despite market challenges. The company is strategically positioned to capitalize on emerging opportunities in the biotechnology sector while addressing short-term customer dynamics and pricing strategies.