What if a biotech company could flip its financial narrative from loss to profit in just a year? Twist Bioscience Corporation (NASDAQ:TWST) has done just that, reporting a surprising third-quarter income that defied analysts’ expectations
On Monday, Twist Bioscience reported a third-quarter income of 33 cents per share, a turnaround from a loss of $1.47 a year ago. The analyst consensus was a loss of 55 cents.
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The company’s net income of $20.39 million included a gain on the sale of the business of $48.85 million, equivalent to 80 cents. Twist reported an adjusted loss of 47 cents per share, excluding the gain.
The life sciences company reported sales of $96.057 million, up from $81.45 million a year ago, beating the consensus of $95.47 million, and within the management guidance range of $94 million-$97 million.
The company shipped products to approximately 2,484 customers in the third quarter of fiscal 2025, compared to approximately 2,300 a year ago. Twist shipped approximately 237,000 genes compared to approximately 212,000 genes a year ago.
Gross margin for the third quarter of fiscal 2025 increased to 53.4% compared to 43.3% a year ago.
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Adjusted EBITDA for the third quarter of fiscal 2025 was $(8.0) million compared to $(22.0) million for the same period of fiscal 2024.
Guidance: Twist Bioscience narrowed fiscal year 2025 sales guidance from $372 million-$379 million to $374 million-$376 million compared to the consensus of $376.21 million.
The guidance includes SynBio's revenue guidance of approximately $144 million – $145 million (prior $144 million-$147 million), up 16% – 17%; NGS revenue of $207 million – $208 million (prior $205 million-$209 million), up 22% – 23%; and Biopharma revenue is expected to be approximately $23 million, up 5% – 13%.
Gross margin is projected to be approximately 50.5% to 51.0% for fiscal 2025 with quarterly sequential improvements, compared to the previous guidance of 49.5%.
Adjusted EBITDA of approximately $(45.0) million to $(47.0) million for fiscal 2025, compared to previous guidance of $(48.0) million to $(53.0) million.
The company expects fourth-quarter 2025 sales of around $96 million-$98 million versus the consensus of $99.17 million, including SynBio's revenue guidance of approximately $38 million-$39 million, NGS revenue of $52 million-$53 million, and Biopharma revenue is expected to be approximately $6 million.
Twist expects the fourth quarter 2025 gross margin of 51%-52%, with an adjusted EBITDA of approximately $(6.0) million to $(8.0) million.
Twist expects to achieve adjusted EBITDA breakeven by the end of fiscal 2026.
TWST Price Action: Twist Bioscience shares were down 11.13% at $29.93 at the time of publication on Monday, according to Benzinga Pro.
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