Twist Bioscience Corporation (TWST): A Bull Case Theory

Core Thesis - Twist Bioscience Corporation is positioned as a leader in synthetic biology and next-generation genomics, with a strong growth trajectory and potential for re-rating in the market [1][4]. Company Overview - Twist Bioscience manufactures synthetic DNA-based products using a unique silicon-based DNA synthesis technology, enabling high-precision and high-throughput manufacturing [2]. - The company's offerings include synthetic DNA, gene fragments, next-generation sequencing tools, and a growing biopharma business focused on antibody discovery and humanized transgenic mouse models [2]. Customer Adoption and Financial Performance - Customer adoption has increased to approximately 2,484, up from 2,300 a year earlier, supported by collaborations with partners like Element Biosciences and Ginkgo Bioworks [3]. - For Q3 2025, revenue reached $96.1 million, an 18% year-over-year increase, driven by growth in synthetic biology ($35.2 million), next-generation sequencing ($55.3 million), and biopharma ($5.6 million) [3]. - Gross margin was reported at 53.4%, leading to a net income of $20.4 million and adjusted EBITDA of $8 million [3]. Financial Outlook - The company projects full-year revenue between $374 million and $376 million, with expectations for adjusted EBITDA breakeven by fiscal 2026 [4]. - Twist has a solid balance sheet with $250.8 million in cash and $478.2 million in equity, indicating a strong financial position [4]. - Despite a market cap of $1.6 billion and a share price of $26.33, the current valuation reflects caution rather than the company's strengths, suggesting potential for future growth [4].