Twist Bioscience (TWST) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 FY26 revenue of $110.7 million, up 19% year-over-year, marking the 13th consecutive quarter of sequential growth and surpassing guidance.

• Gross margin improved to 51.6%, up approximately 2 percentage points year-over-year.

• Adjusted EBITDA loss narrowed to $(13.3) million, showing continued progress toward breakeven.

• Net loss for the quarter was $44.0 million ($0.71 per share), compared to $39.3 million ($0.66 per share) in the prior year, reflecting higher SG&A and litigation settlement costs.

• Secured partnership with Amazon Web Services for AI-powered drug discovery and entered a bispecific licensing agreement with Invenra.

Financial highlights

• Q2 FY26 revenue reached $110.7 million, up 19% year-over-year and 7% sequentially.

• Gross margin expanded to 51.6%, a 2 percentage point improvement YoY.

• Adjusted EBITDA loss was $(13.3) million, improved from $(14.8) million YoY.

• Cash, cash equivalents, and short-term investments totaled ~$172 million as of March 31, 2026.

• Operating expenses (excluding cost of revenues and litigation) were $95.8 million, up from $87.6 million YoY.

Outlook and guidance

• FY26 revenue guidance raised to $442–$447 million (17–19% growth), with gross margin expected above 52%.

• Q3 FY26 revenue expected at $114–$115 million, up ~19% YoY at midpoint.

• Adjusted EBITDA breakeven targeted for Q4 FY26.

• Management expects current cash and investments to fund operations for at least one year.

• SG&A expenses expected to moderate in H2 FY26 due to cost-saving initiatives.