Twist Bioscience (TWST) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 FY26 revenue of $103.7M, up 17% year-over-year, marking the twelfth consecutive quarter of sequential growth and surpassing guidance.

• Gross margin improved to 52.0%, a 4-point year-over-year increase, driven by revenue growth and process improvements.

• Net loss narrowed to $30.5M ($0.50 per share) from $31.6M ($0.53 per share) year-over-year; adjusted EBITDA loss improved to $(13.4)M from $(16.3)M.

• Shipped approximately 271,000 genes, up 32% year-over-year, serving 2,538 customers in the quarter.

• Cash, cash equivalents, and short-term investments totaled $198M as of December 31, 2025.

Financial highlights

• DNA Synthesis and Protein Solutions revenue grew 27% year-over-year to $51.1M; NGS Applications revenue was $52.6M, up 8% (18% excluding one large customer transition).

• Operating loss was $32.9M, improved from $34.6M year-over-year; net loss per share was $(0.50) vs. $(0.53) year-over-year.

• Research and development expenses decreased to $17.1M, while SG&A expenses rose to $69.7M.

• Net cash used in operations was $24.8M; capital expenditures were $10M.

• 74% of incremental revenue in Q1 FY26 dropped through to gross margin.

Outlook and guidance

• Fiscal 2026 revenue guidance raised to $435M–$440M, representing 16% growth at the midpoint.

• Q2 FY26 revenue expected at $107M–$108M, up 16% year-over-year at the midpoint.

• Gross margin expected to remain above 52% for the year, with sequential improvements as automation and scale increase.

• Adjusted EBITDA breakeven targeted for Q4 FY26.

• Management expects current liquidity to fund operations for at least one year from the reporting date.