Nasdaq:TWST
Twist Bioscience Corp
Twist Bioscience leverages a proprietary DNA synthesis engine to deliver custom genetic sequences for drug discovery and agriculture.
Key Metrics
Investment Thesis
Bull Case
Twist Bioscience possesses a disruptive technology platform that could fundamentally change how drugs and crops are developed, offering massive upside potential if they can achieve commercial scale. The narrowing net loss combined with strong revenue growth indicates the business model is maturing, potentially leading to a future profitable operating cycle. As synthetic biology adoption accelerates in agriculture and medicine, Twist's first-mover advantage positions it as a critical infrastructure provider for next-generation biotech.
Bear Case
Despite recent improvements in profitability metrics, the company continues to report significant net losses and negative cash flow from operations, creating substantial downside risk if funding dries up. The heavy investment in R&D and capital expenditures suggests high burn rates that could deplete cash reserves faster than revenue can grow. Investors should remain cautious given the long timeline required for synthetic biology products to reach widespread commercialization and generate consistent profits.
About Twist Bioscience Corp
Twist Bioscience Corp is a leading synthetic biology company that designs and manufactures custom DNA sequences to accelerate drug discovery, agriculture, and materials science. The company serves pharmaceutical, biotechnology, and agricultural markets with its proprietary DNA synthesis platform, enabling faster and more cost-effective development of new therapies and crops. Its key products include custom oligonucleotides, synthetic gene circuits, and next-generation sequencing services that drive innovation across multiple high-growth sectors.
Analysis
Management Discussion
Revenue growth accelerated from $245.1M in 2023 to $376.6M in 2025, reflecting strong market adoption of the company's synthetic biology platform. However, net losses narrowed significantly from -$208.7M in 2024 to -$77.7M in 2025, suggesting improved operational efficiency despite continued investment in R&D and capital expenditures. The reduction in loss magnitude is positive for investors, though the company still faces challenges in converting revenue growth into sustainable free cash flow.
Industry Overview
The DNA synthesis and synthetic biology industry is experiencing rapid growth as pharmaceutical and agricultural companies seek to accelerate R&D cycles and reduce costs. Traditional enzymatic synthesis methods face limitations in complexity and scale, creating an opening for innovative technologies like Twist's proprietary platform. This sector is highly competitive but offers significant opportunities for companies that can successfully commercialize advanced genetic engineering solutions.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $245.1M | $313.0M | $376.6M |
| Cost of Revenue | $155.4M | $179.6M | $185.6M |
| Gross Profit | $89.7M | $133.3M | $191.0M |
| Operating Expenses | $306.9M | $354.2M | $327.3M |
| Operating Income | $-217.2M | $-220.8M | $-136.3M |
| R&D | $106.9M | $90.9M | $80.3M |
| G&A | $189.7M | $218.4M | $247.0M |
| Stock-Based Comp | $30.3M | $50.9M | $64.5M |
| D&A | $29.3M | $31.4M | $24.9M |
| Depreciation | — | $27.3M | $23.8M |
| Amortization | $5.3M | $4.1M | $1.1M |
| Other OpEx | $10.3M | $44.9M | $0 |
| Non-Operating Income | $13.7M | $12.7M | $59.3M |
| Interest Expense | $5.0K | — | — |
| Interest Income | $14.4M | $15.3M | $11.4M |
| Pre-Tax Income | $-203.5M | $-208.2M | $-77.0M |
| Income Tax | $1.2M | $560.0K | $719.0K |
| Continuing Ops | $-204.6M | $-208.7M | $-77.7M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-204.6M | $-208.7M | $-77.7M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-204.6M | $-208.7M | $-77.7M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $424.3M | $346.8M | $333.0M |
| Cash & Equivalents | $286.5M | $226.3M | $183.0M |
| Marketable Securities | $49.9M | $50.1M | $49.4M |
| Accounts Receivable | $44.1M | $34.9M | $57.0M |
| Inventory | $32.1M | $24.1M | $28.3M |
| Prepaid Expenses | $11.7M | $11.4M | $15.2M |
| Other Current Assets | $0 | $0 | $0 |
| Long-Term Assets | $352.1M | $267.5M | $308.9M |
| PP&E (Net) | $131.8M | $102.5M | $102.3M |
| Goodwill | $85.8M | $85.8M | $82.2M |
| Operating Leases | $71.5M | $58.8M | $49.4M |
| Other LT Assets | $63.0M | $20.4M | $75.0M |
| Total Assets | $776.4M | $614.3M | $641.9M |
| Current Liabilities | $73.3M | $71.0M | $91.4M |
| Accounts Payable | $14.1M | $1.6M | $11.1M |
| Current Leases | $14.9M | $14.8M | $13.8M |
| Other Current Liab | $33.6M | $39.5M | $43.4M |
| Long-Term Liabilities | $79.6M | $70.6M | $77.5M |
| LT Operating Leases | $79.2M | $70.2M | $61.8M |
| Other LT Liab | $475.0K | $407.0K | $15.7M |
| Total Liabilities | $153.0M | $141.6M | $168.9M |
| Shareholders' Equity | $623.4M | $472.7M | $473.0M |
| Paid-In Capital | $1.66B | $1.72B | $1.79B |
| Retained Earnings | $-1.03B | $-1.24B | $-1.32B |
| AOCI | $-756.0K | $-522.0K | $-627.0K |
| Total L&E | $776.4M | $614.3M | $641.9M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $-204.6M | $-208.7M | $-77.7M |
| Non-Cash Adjustments | $62.6M | $163.7M | $-21.1M |
| Working Capital Changes | $-465.0K | $-19.1M | $51.2M |
| Cash from Operations | $-142.5M | $-64.1M | $-47.6M |
| Capital Expenditures | $27.8M | $5.1M | $28.0M |
| Cash from Investing | $50.6M | $-3.1M | $-24.8M |
| Debt Repayments | $0 | $0 | — |
| Cash from Financing | $911.0K | $6.9M | $28.5M |
| FX Effect | $-27.0K | $126.0K | $143.0K |
| Net Change in Cash | $-91.0M | $-60.1M | $-43.7M |
| Beginning Cash | $380.3M | $289.3M | $229.1M |
| Ending Cash | $289.3M | $229.1M | $185.4M |
Frequently Asked Questions
How does Twist Bioscience Corp make money?
Custom Oligonucleotide Synthesis providing base-by-base manufacturing of DNA/RNA for therapeutics, Synthetic Biology Solutions offering engineered gene circuits and cell lines, Sequencing Services delivering long-read genomic analysis, and Specialty Products including agricultural traits and materials science applications.
What are the main risks for TWST?
The company operates at a significant net loss with negative operating cash flow, raising concerns about long-term burn rates and ability to achieve profitability without substantial additional capital raises. High levels of accumulated other comprehensive income losses and a large retained earnings deficit indicate historical financial strain that could impact investor confidence if not addressed. Dependence on large pharma and biotech customers creates concentration risk, while rapid technological advancements by competitors could erode Twist's market share in DNA synthesis.
What is TWST's competitive advantage?
Twist's proprietary silicon-based DNA synthesis engine eliminates the need for natural biological inputs, allowing for rapid design and manufacture of custom sequences in days rather than weeks. The company's ability to synthesize any sequence provides a unique moat against traditional enzymatic synthesis methods that are limited by natural template availability. Its vertical integration from design to manufacturing creates significant cost advantages and scalability for complex genetic constructs.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.