stockrowWhat it does
Twist Bioscience makes synthetic DNA and related tools for customers working in healthcare, industrial materials, agriculture and academic research. Its chief executive officer is Emily M. Leproust, Ph.D. The company’s platform uses silicon chips to manufacture DNA sequences designed by customers. Those sequences give researchers material they can use to test biological ideas, develop products and study disease.
Its synthetic biology products include genes, gene fragments and pools of short DNA sequences called oligonucleotides. Customers can order custom sequences in different lengths and configurations. For example, a drug developer may order variations of a gene to find a sequence that meets its research objective.
Twist also sells tools used to prepare samples for next-generation sequencing, or NGS. Its synthetic DNA probes bind to selected sequences in a sample so researchers can isolate the material they want to study. Customers use these tools in work ranging from cancer and rare-disease research to population genetics and agriculture.
Alongside products, Twist provides antibody discovery and development services to biopharmaceutical customers. These services include creating and screening antibody libraries and characterizing potential drug candidates. Twist also offers synthetic RNA and proteins. Its customers include biotechnology and pharmaceutical companies, diagnostic companies, hospitals, research institutions and industrial companies.
How it makes money
Twist has one reportable segment and earns revenue from synthetic biology products, NGS tools and antibody discovery services. Fiscal 2025 revenue was $376.6 million; fiscal third-quarter 2026 revenue was $118.4 million.
Customers purchase synthetic genes, gene fragments, oligonucleotide pools, DNA libraries and sequencing sample-preparation products. NGS tools generated $208.1 million in fiscal 2025, while synthetic genes generated $113.6 million. Customers can specify the DNA sequences they need, and Twist’s online platform lets them design and validate orders, obtain customized quotes and track delivery.
Pricing depends on the order or supply agreement. Twist charges a premium for its Express Genes offering, which provides a faster turnaround. Product revenue is generally recognized when control passes to the customer, typically when a freight forwarder picks up the order.
Antibody discovery partnerships can generate licensing fees and payments for services, as well as potential milestone payments tied to clinical, regulatory or commercial progress. Some agreements also include royalties. As of September 30, 2025, Twist had 84 active programs, with 82 of the programs including milestones and/or royalties. Twist sold half of future milestone and royalty payments from certain existing collaborations to XOMA Royalty; it retains upfront and service revenue from those agreements.
Customers may order repeatedly, but purchases are not described as subscription contracts. Twist defines a repeat customer as one that purchased products or services more than once in the current fiscal year.
| Product or service | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| NGS tools | $208.1 million | 55.3% | 23.0% |
| Synthetic genes | $113.6 million | 30.2% | 22.6% |
| Antibody discovery | $23.5 million | 6.23% | 15.4% |
| Oligo pools | $20.2 million | 5.37% | 19.7% |
| DNA libraries | $11.2 million | 2.97% | −19.7% |
Customers and how it sells
Twist served more than 3,800 customers in fiscal 2025. Its customer base includes pharmaceutical and biotechnology companies, diagnostic companies and hospitals, research institutions, agricultural biotechnology companies and consumer genetics companies. Customers use its products for research and development as well as in sequencing workflows.
Healthcare customers accounted for $215.1 million of fiscal 2025 revenue. Chemicals and materials customers generated $93.2 million, academic research customers generated $65.9 million, and food and agriculture customers generated $2.4 million. One customer accounted for 10.0% of fiscal 2025 revenue. In fiscal third-quarter 2026, Twist’s top 10 NGS applications customers accounted for approximately 48% of NGS applications revenue.
Twist sells through specialized direct sales teams, business development representatives, distributors and an e-commerce platform. Online customers can configure customized DNA orders and follow them through manufacturing and delivery.
Geographic revenue is based on customer shipping addresses. In fiscal 2025, the Americas generated $225.6 million. Twist also generated revenue in Europe, the Middle East and Africa, and in Asia-Pacific.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Americas | $225.6 million | 59.9% | 16.3% |
| EMEA | $124.2 million | 33.0% | 34.2% |
| APAC | $26.8 million | 7.10% | 0.86% |
Suppliers and costs
Twist manufactures its products and multiple subassemblies at facilities in South San Francisco, California, and Wilsonville, Oregon. It also outsources some subassemblies. Its on-demand gene synthesis operation runs continuously, and its NGS manufacturing workflow uses both proprietary and commercially available laboratory equipment.
The company buys components and raw materials from suppliers worldwide. Certain items are available from only one supplier, and Twist depends on a single-source supplier for a critical component in its DNA synthesis process. It works on contingency plans and qualifies additional suppliers for key materials.
Cost of revenue includes production materials, personnel, equipment and consumables, laboratory supplies, depreciation, facilities and royalties for licensed technology. Fiscal 2025 cost of revenue was $185.6 million. Gross margin rose to 50.7% in fiscal 2025 from 42.6% in fiscal 2024, with higher revenue, relatively flat fixed manufacturing costs and process improvements contributing to the increase.
Twist also spends on research and development and on sales, marketing and administration. The company sees an opportunity to use proprietary enzymes in its workflows to improve performance and cost and reduce supplier dependence.
- Revenue$376.6M
- Cost of revenue−$185.6M
- Research and development−$80.3M
- Selling, general and administrative−$247.0M
- Operating income−$136.3M
Competitive position
Twist competes on price, product quality and accuracy, turnaround time, breadth of offerings, production scale and technical support. In synthetic biology, competitors include GenScript Biotech, Integrated DNA Technologies and GeneArt. In sequencing sample preparation, competitors include Thermo Fisher Scientific, Illumina, Roche, Integrated DNA Technologies and Agilent Technologies. Antibody discovery competitors include GenScript, Adimab and AbCellera Biologics.
Twist’s platform combines silicon-based DNA synthesis with software, automation and an online ordering system. The company owns or exclusively licenses patents covering areas including DNA synthesis, NGS and antibody libraries. Its products work across multiple sequencing platforms, and its antibody services extend from library generation to screening and characterization.
Our reading: Manufacturing scale and automation are a meaningful potential advantage because they support many customized sequences, although rivals compete on the same dimensions and the evidence does not establish a market-share lead. Our reading: Patents and integrated ordering and laboratory services can help protect the business, but their strength depends on enforcement and continued product development.
Twist believes its ability to combine synthesis, protein production and characterization data is a competitive advantage. It also says rapid turnaround at scale differentiates its Express offerings.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| GenScript Biotech Corporation | Synthetic biology products and antibody discovery services | High |
| Integrated DNA Technologies, Inc. | Synthetic biology products and sequencing sample preparation | High |
| Thermo Fisher Scientific Inc. | Synthetic biology through GeneArt and sequencing sample preparation | High |
| Illumina, Inc. | Sequencing sample preparation | Medium |
| Roche Holding AG | Sequencing sample preparation | Medium |
| Agilent Technologies, Inc. | Sequencing sample preparation | Medium |
| Adimab, LLC | Antibody discovery | Medium |
| AbCellera Biologics Inc. | Antibody discovery | Medium |
Growth opportunities
Twist plans to expand its synthetic DNA, RNA and protein offerings, grow its sequencing sample-preparation business, add antibody and protein production capabilities, and broaden its global presence. It is also developing proprietary enzymes and adding products and services for customers working on drug discovery.
AI-enabled discovery is one area the company is pursuing. Customers can use computational models to design sequences, then use Twist to synthesize DNA, produce proteins and characterize them. Twist expects to meet or exceed its target of triple-digit percentage order growth for AI-enabled discovery in fiscal 2026 compared with fiscal 2025. It believes it has the potential to repeat triple-digit percentage order growth in fiscal 2027.
In sequencing, Twist is targeting applications including liquid biopsy and molecular residual disease testing. It is also adding data-characterization capacity ahead of demand. The company projects its serviceable addressable market will reach $13 billion by 2030.
Revenue grew from $313.0 million in fiscal 2024 to $376.6 million in fiscal 2025, primarily reflecting growth in NGS tools and synthetic genes. For fiscal 2026, Twist expects $456 million to $457 million in revenue and expects adjusted EBITDA breakeven in the fourth quarter. That adjusted measure is not the same as net income.
- $132.3MFY2021
- $203.6MFY2022
- $245.1MFY2023
- $313.0MFY2024
- $376.6MFY2025
- $456.0MFY2026 guidance
Structural risks
- Losses and financing: Twist has incurred net losses in every period to date and may never achieve profitability. It may require additional financing, which may not be available on acceptable terms or at all.
- Single-source supply: A critical component of the DNA synthesis process comes from one supplier. A disruption, without an alternative supply arrangement, could prevent Twist from completing synthesis until supply is restored or another source is secured.
- Customer concentration and demand: The loss of a limited number of large customers could hurt revenue, cash flow and reputation. Research funding, customer budgets and market acceptance can also affect purchasing.
- Competition and technology: Rapid technological change and competition could make Twist’s products obsolete or noncompetitive if it does not continue to develop and manufacture improved products.
- Intellectual property and regulation: Twist’s ability to protect its technology is uncertain. If regulators determine that research-use products require clearance or approval, or if regulation expands, the business could be adversely affected.
Bottom line
Our reading
Twist is a tools and manufacturing business built around custom synthetic DNA, with sequencing products and antibody services extending the same platform into different customer workflows. Its growth opportunities depend on customers ordering more complex biological material and related services, while its exposure includes a critical single-source component, large customer relationships and continuing losses. Improved gross margin shows the effect of spreading fixed manufacturing costs over higher revenue, but adjusted EBITDA breakeven would not itself establish net profitability.