Twist Bioscience(TWST) - 2025 Q3 - Quarterly Results

Third Quarter Fiscal 2025 Financial Performance 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] - 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] Business and Operational Highlights 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] - 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] Updated Fiscal 2025 and Q4 Financial Guidance 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][7] Financial Statements This section presents unaudited financial statements, including detailed Q3 and YTD results, highlighting revenue growth, profitability, and liquidity Condensed Consolidated Statements of Operations 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 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 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 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] - 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] - 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]