Twist Bioscience shipped approximately 369,000 genes during its fiscal third quarter of 2026, representing an increase of nearly 56% from approximately 237,000 genes during the prior-year period.
The increase substantially exceeded the company’s customer growth rate.
Twist shipped products to approximately 2,650 customers, compared with 2,480 customers a year earlier, representing growth of approximately 7%.
Based on those approximate figures, the number of physically shipped genes per customer increased by roughly 46%.
This suggests that higher utilization and larger orders from existing customers contributed significantly to the company’s growth.
Twist also reported consecutive quarter-over-quarter growth in genes manufactured for data characterization.
The company’s synthetic DNA platform produces genes, oligonucleotides, proteins, libraries, and other biological products used across research, therapeutic development, diagnostics, agriculture, and industrial applications.
Quarterly revenue increased 23% to a record $118.4 million from $96.1 million.
The performance marked Twist’s 14th consecutive quarter of sequential revenue growth.
DNA Synthesis and Protein Solutions was the company’s fastest-growing operation.
Segment revenue increased 39% to $56.6 million from $40.8 million and rose 6% sequentially from $53.3 million.
The growth brought the segment within $5.2 million of Twist’s larger NGS Applications business.
NGS Applications revenue increased 12% to $61.8 million from $55.3 million.
The segment also grew 8% sequentially from $57.4 million.
Growth across both businesses supported another improvement in gross margin.
Gross margin reached 52.8%, increasing 120 basis points from 51.6% during the second quarter.
Gross profit increased to approximately $62.5 million from $51.3 million.
However, the company’s operating loss widened because expenses increased faster than gross profit.
Research and development expense remained nearly unchanged at $18 million.
Selling, general and administrative expense increased 27% to $80.7 million from $63.4 million.
SG&A represented approximately 68% of quarterly revenue.
The increase contributed to an operating loss of $36.3 million, compared with a $30.1 million loss during the prior-year quarter.
Twist reported a net loss of $35.1 million, or $0.56 per share.
That compared with net income of $20.4 million, or $0.33 per diluted share, one year earlier.
The prior-year quarter included a $48.8 million gain from the spinout of Atlas Data Storage, making the reported year-over-year earnings comparison less representative of operating performance.
Adjusted EBITDA was negative $11.3 million, compared with negative $8 million.
Stock-based compensation expense reached $18.2 million, exceeding the company’s entire adjusted EBITDA loss.
Twist nevertheless reiterated its expectation of reaching adjusted EBITDA breakeven during the fourth quarter.
Achieving that milestone would require an improvement of more than $11 million from the third quarter.
Fourth-quarter revenue is expected to reach approximately $123 million to $124 million.
The midpoint implies sequential growth of approximately 4.3%, with continued expansion expected in both DNA Synthesis and Protein Solutions and NGS Applications.
Twist raised its full-year revenue outlook to between $456 million and $457 million.
The new midpoint is $12 million higher than the midpoint of the previous guidance range of $442 million to $447 million.
Full-year revenue is now expected to increase approximately 21%, while gross margin is projected to exceed 52%.
Twist ended June with approximately $167 million in cash, cash equivalents, and short-term investments.
That balance declined from approximately $232 million at the end of September 2025.
Inventories increased to $35.2 million from $28.3 million, partly reflecting the working capital required to support higher shipment levels.
Accounts receivable increased to $65.1 million from $57 million.
Prepaid expenses and other current assets increased sharply to $54.2 million from $15.2 million, although the earnings release did not explain the components behind the increase.
Twist also highlighted a scientific application of its technology during the quarter.
The company said its Comprehensive Viral Research Panel enabled researchers in the Democratic Republic of the Congo to identify a rare Ebola strain that PCR testing had missed.
The company also launched Twist Complex Genes commercially after completing an early-access period.
Twist’s third-quarter results demonstrate strong customer utilization and shipment growth, particularly within DNA Synthesis and Protein Solutions.
The next major financial milestone is converting that growing revenue and gross profit into adjusted EBITDA breakeven while controlling SG&A and preserving liquidity.
KEY QUOTES:
“We continued our pattern of strong growth, reporting our fourteenth consecutive quarter of growth and exceeding guidance with revenue for the third quarter of fiscal 2026 of $118.4 million.”
“We remain confident in our trajectory and continue to expect to achieve adjusted EBITDA breakeven this quarter.”
Emily M. Leproust, Ph.D., Chief Executive Officer And Co-Founder Of Twist Bioscience
