Multiple Headwinds Hit Twist BioScience Corp. (TWST) in Q3

Core Insights - Conestoga Capital Advisors reported that equity markets reached new all-time highs in Q3 2025, with the Conestoga Micro-Cap Composite returning 11.7% net-of-fees, while the Russell Microcap Growth Index returned 19.9% [1] Company Overview: Twist Bioscience Corporation - Twist Bioscience Corporation (NASDAQ:TWST) specializes in manufacturing and distributing synthetic DNA-based products, with a one-month return of 23.58% and a 52-week loss of 18.74% [2][3] - As of October 21, 2025, Twist Bioscience's stock closed at $33.39 per share, with a market capitalization of $2.015 billion [2] Financial Performance - In Q3 2025, Twist Bioscience reported revenue of $96.1 million, reflecting an 18% year-over-year growth and approximately 4% sequential growth [4] - The company faced challenges due to softened demand for synthetic DNA products in biotech and academic research markets, leading to slowed order growth amid tighter biopharma funding [3][4] Market Position and Investment Sentiment - Twist Bioscience was held by 23 hedge fund portfolios at the end of Q2 2025, a decrease from 30 in the previous quarter [4] - Despite the long-term growth potential in genomics and DNA data storage, concerns about cash burn and valuation compression across synthetic biology peers have impacted investor sentiment [3][4]