Twist Bioscience revenues climb 19% as DNA synthesis and NGS demand accelerates

Twist Bioscience (NASDAQ:TWST) reported financial results for its second fiscal quarter ended March 31, 2026, showcasing sustained double-digit growth across its core synthetic biology and NGS platforms.

Total revenues reached $110.7 million, a 19% increase compared to the $92.8 million recorded in the second quarter of fiscal 2025.

The company’s DNA Synthesis and Protein Solutions (DSPS) segment emerged as the primary growth engine, with revenue jumping 28% year-over-year to $53.3 million.

This segment also saw a 4% sequential increase from the first quarter of fiscal 2026.

Meanwhile, Next-Generation Sequencing (NGS) Applications revenue rose 12% year-over-year and 9% sequentially to $57.4 million, reflecting broad-based adoption of Twist’s target enrichment and library preparation tools.

Twist also demonstrated significant progress in its path toward profitability, reporting a gross margin of 51.6% for the quarter.

This represents a notable improvement from the 49.6% reported in the prior year’s comparable period.

The expansion was driven by operational efficiencies at the company’s "Factory of the Future" and a favorable product mix toward higher-margin NGS offerings.

On the expense side, research and development (R&D) costs decreased to $19.7 million from $23.9 million a year ago, as the company prioritized its most commercially viable projects.

However, selling, general and administrative (SG&A) expenses rose to $76.1 million, up from $63.7 million in Q2 2025, partly reflecting increased commercial activity and legal costs.

The company also reported a net loss for the quarter of $44 million, or $0.71 per share, compared to a net loss of $39.3 million, or $0.66 per share, in the prior-year period.

This widened loss was impacted by a settlement in principle regarding a securities class action.

Twist booked $7.2 million in litigation settlement costs, net of insurance recoveries, for the quarter; the total settlement is expected to be approximately $17.1 million.

Excluding these one-time litigation costs, the company’s adjusted EBITDA showed improvement, narrowing to a loss of $13.3 million compared to a $14.8 million loss in Q2 2025.

As of March 31, 2026, Twist maintained a healthy liquidity profile with approximately $172 million in cash, cash equivalents, and short-term investments.