Q3 2025 Twist Bioscience Corp Earnings Call

Operator: Ladies and gentlemen, thank you for standing by. Welcome to Twist Bioscience's 2025 third quarter financial results conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw the question, please press star one one again. Please be advised that today's conference is being recorded. I would like now to turn the conference over to Angela Bitting, Senior Vice President of Corporate Affairs. Please go ahead.

Ladies and gentlemen, thank you for standing by. Welcome to Twist Bioscience's Q3 2025 Financial Results Conference Call. At this time, all participants are in a listen-only mode.

After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press *1, 1 on your telephone. You will then hear an automated message advising you that your hand is raised. To withdraw your question, please press *1, 1 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to Angela Bitting, Senior Vice President of Corporate Affairs. Please go ahead.

Angela Bitting: Thank you, Operator. Good morning, everyone. I would like to thank you for joining us for Twist Bioscience's conference call to review our fiscal 2025 third quarter financial results and business progress. We issued our financial results press release before the market, and it is available at our website at www.twistbioscience.com. With me on the call today are Dr. Emily Leproust, CEO and Co-Founder of Twist, Adam Laponis, CFO of Twist, and Dr. Patrick Finn, President and COO of Twist. Today, we will discuss our business progress, financial and operating performance, as well as growth opportunities. We will then open the call for questions. We ask that you limit your questions to only one and then reach you as a courtesy to others on the call. The call is being recorded.

Thank you, operator. Good morning, everyone. I would like to thank you for joining us for Twist Bioscience's conference call to review our fiscal 2025 third quarter financial results and business progress.

We issued our financial results press release before the market, and it is available on our website at www.twistbioscience.com.

With me on the call today are Dr. Emily Leproust, CEO and Co-Founder of Twist, Adam Laponis, CFO of Twist, and Dr. Patrick Finn, President and CEO of Twist.

Today, we will discuss our business progress, financial and operating performance, as well as growth opportunities.

We will then open the call for questions. We ask that you limit your questions to only one, and then reach out as a courtesy to others on the call.

Angela Bitting: The audio portion will be archived in the investor section of our website and will be available for two weeks. During today's presentation, we will make forward-looking statements within the meaning of the U.S. Federal Securities Laws. Forward-looking statements generally relate to future events or future financial or operating performance. Our expectation and beliefs regarding these matters may not materialize, and actual results in financial periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include those set forth in the press release we issued earlier today, as well as those more fully described in our filings with the Securities and Exchange Commission.

The call is being recorded. The audio portion will be archived in the investor section of our website and will be available for 2 weeks.

During today's presentation, we will make forward-looking statements within the meaning of the U.S. Federal Securities laws.

Forward-looking statements generally relate to future events or future financial or operating performance.

Our expectations and beliefs regarding these matters may not materialize, and actual rebuilt and financial periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected.

These risks include those set forth in the press release we issued earlier today, as well as those more fully described in our filings with the Securities and Exchange Commission.

Angela Bitting: The forward-looking statements in this presentation are based on the information available to us as of the date hereof, and we disclaim any obligations to update any forward-looking statements except as required by law. We will also discuss adjusted EBITDA, a financial measure that does not conform with generally accepted accounting principles. Information may be calculated differently than similar non-GAAP data presented by other companies. When reported, a reconciliation between the GAAP and non-GAAP financial measures will be included in our earnings documents, which can be found on the investor section of our website. With that, I will now turn the call over to Dr. Emily Leproust, our CEO and Co-Founder.

The forward-looking statements in this presentation are based on the information available to us as of the date hereof, and we disclaim any obligations to update any forward-looking statements except as required by law.

We'll also discuss adjusted EBITDA, a financial measure that does not conform with generally accepted accounting principles.

Information may be calculated differently than similar non-GAAP data presented by other companies. A reconciliation between the GAAP and non-GAAP financial measures will be included in our earnings documents, which can be found in the investor section of our website.

With that, I will now turn the call over to Dr. Emily Leproust, our CEO and co-founder.

Emily Leproust: Thank you, Angela Bitting, and good morning, everyone. During the fiscal 2025 third quarter, we focused on delivering exceptional value for our customers, expanding our product portfolio, and extending our reach into the long tail of the academic market for our synthetic biology products and NGS tools. We added hundreds of net new customers and introduced the first in a series of planned portfolio expansions for our SynBio product line, setting the stage for robust and sustained growth. Turning to our financial results, I am pleased to report another quarter of sequential growth and record performance across revenue, gross margin, and adjusted EBITDA. For the third quarter of fiscal 2025, we reported record revenue of $96.1 million, an increase of 18% year over year.

And introduced the first in a series of planned portfolio extensions for seen by a product line, setting the stage for robust and sustained growth.

Turning to our financial results, I am pleased to report another quarter of sequential growth and recovery across revenue, gross margin, and a CDP down.

Emily Leproust: Gross margin for the quarter came in very strong at 53.4% compared to 43.3% for the third quarter of fiscal 2024, demonstrating the leverage of fixed costs with higher volume, some benefit from mix, as well as our ongoing commitment to continuous improvement. Revenue for SynBio was $35.2 million, reflecting 7% year-over-year growth. As previously communicated, results for the same quarter last year included a significant order from a large contracted customer and an anticipated event that was not expected to recur in fiscal 2025. At the same time, several of our largest U.S. academic customers continue to place orders with Twist Bioscience, demonstrating sustained engagement while managing evolving funding dynamics. In response to this shift, we accelerated our strategy to increase market reach, driving a strong influx of net new customers to the platform and expanding our commercial footprint across a broader segment of the SynBio landscape.

For the third quarter of fiscal 2025, we reported record revenue of $96.1 million, an increase of 18% year-over-year. Gross margin for the quarter came in very strong at 503.4%, compared to 43.3% for the third quarter of fiscal 2024, demonstrating the leverage of our costs with higher volume. Some benefit from next, as well as our ongoing commitment to continuous improvement.

Revenue for Bio is $35.2 million, reflecting a 7% year-over-year growth.

As previously communicated, results for the same quarter last year included a significant order from a large contracted customer and an anticipated event that was not expected to recur in fiscal 2025.

Emily Leproust: To better illustrate the momentum of our SynBio group, excluding the one-time contribution from a large customer in the prior year quarter, underlying revenue grew more than 20% year over year. This growth highlights the strength of our customer relationships, the increased demand for Twist Bioscience's offering, and the impact of our efforts to diversify and extend our customer base. Turning to NGS, we reported $55.3 million in revenue, an increase of 27% year over year, with strength coming primarily from our customers' commercial assays for diagnostic tests, as well as growth in smaller accounts. Landing these smaller customers remains critical to our long-term growth strategy, as these accounts have the potential to become large accounts in the future. We continue to work with many minimal residual disease customers in various stages of their development and commercialization.

At the same time, several of our largest U.S. academic customers continue to place orders with Twist, demonstrating sustained engagement while managing evolving funding dynamics in response to this shift. We accelerated our strategy to increase market reach, driving a strong influx of net new customers to the platform and expanding our commercial footprint across a broader segment of the synthetic biology landscape.

To better illustrate the momentum of our symbiote group, excluding the one-time contribution from a large customer in the prior year quarter, underlying revenue grew more than 20% year-over-year.

Growth highlights the strength of our customer relationships, the increased demand for Twist's offerings, and the impact of our efforts to diversify and extend our customer base.

To NGS, we reported $55.3 million in revenue, an increase of 27% year-over-year, with strength coming primarily from our customers' commercial lessons for diagnostic tests, as well as growth in smaller accounts.

Landing these smaller customers remains critical to our long-term growth strategy, as these accounts have the potential to become large accounts in the future.

Emily Leproust: We see this growth level inflecting over time, following a similar pattern of growth that we have seen from our customers offering liquid biopsy tests. Turning to Biopharma services, our revenue was $5.6 million, growth of 10% year over year with orders of $6.2 million. We remain cautiously optimistic as the funnel of opportunities continues to build. We continue to see synergies between our Biopharma services and our SynBio business, particularly within large pharma accounts where we see them purchase products and contract services to support their ongoing research efforts. In addition, the exponential growth of AI drug discovery generates an unexpected opportunity for us as we offer a spectrum of products and services to accelerate this new wave of growth for the industry. I would now like to turn the call over to Patrick Finn for commentary on operations and innovation.

We continue to work with many minimal residual disease customers in various stages of their development and commercialization.

We see this growth level inflecting over time, following a similar pattern of growth that we have seen from our customers offering liquid biopsy tests.

Turning to biopharma services, our Revenue was 5.6 million dollars growth of 10% year-over-year with orders of 6.2 million.

We remain cautiously optimistic, as a founder of opportunities continues to build. We continue to see synergies between our bio for services and our seen by a business.

Particularly within large amounts, we see them purchase products and contract services to support their ongoing research efforts.

In addition, the exponential growth of AI drug Discovery. Generates significant opportunity for us as we offer a spectrum of products and services to accelerate this new wave of growth for the industry.

I will now like to turn the call over to Patty for commentary on operations and innovation.

Patrick Finn: Thanks, Emily. I would like to take a few minutes to dive deeper into how we think about expanding our product portfolio by focusing on our recent launch of gene fragments shipped standard without adapters. In 2023, we began shipping oligopool, gene fragments, conal genes, and more out of our Wilsonville, Oregon facility. Building on this infrastructure, we introduced Express genes and expanded that product line to include DNA preps and high-throughput IgG proteins. We continue to iterate and add to our portfolio of SynBio products and build on this manufacturing line that truly highlights the power of our platform technology and our ability to leverage the speed, cost efficiency, quality, and diversity to anticipate customer needs.

Thanks Emery.

I'd like to take a few minutes to dive deeper into how we think about expanding our product portfolio by focusing on our recent launch of gene fragments ship standards without adapters.

In 2023, we began shipping all good proof gene fragments, Chrono jeans, and more out from our Wilsonville, Oregon facility.

Building on this infrastructure, we introduced Express jeans and expanded that product line to include DNA, preps, and high-throughput IgG proteins.

Patrick Finn: This enhanced manufacturing line for our SynBio products augmented our SynBio contribution margin so that across our business, regardless of product line, approximately 75% to 80% of all incremental revenue drops to the gross margin line. Last month, we activated a new growth lever in a high-potential area of our portfolio by launching improved adapter-off gene fragments. Since entering the commercial market in 2015, we have offered gene fragments as part of our core product offering. Historically, our manufacturing process included adapters with an option to remove them, a step that required primers sourced externally, which extended turnaround time. When one of two primer suppliers stopped shipping to us last year, our team quickly pivoted. In under 12 months, we developed and scaled an internal primer manufacturing process, allowing us to streamline production and enhance control across the workflow.

We continue to iterate and add to our portfolio of symbiote products that build on this manufacturing line, which truly highlights the power of our platform technology and its ability to leverage speed, cost efficiency, quality, and diversity to anticipate customer needs.

This enhanced manufacturing line for our bioproducts augmented our SynBio contribution margin. So, across our business, regardless of product line, approximately 75% to 80% of all incremental revenue drops to the gross margin line.

Last month, we activated a new growth labor in a high-potential area of our portfolio by launching improved, adapter-off gene fragments.

Since entering the commercial market in 2015, we've offered gene fragments as part of our core product offering.

Historically, our manufacturing process included adapters with an option to remove them.

Step would require primer source to externally, which extended turnaround time.

We pivoted.

Patrick Finn: Today, we offer gene fragments without adapters as a default, while providing adapter add-ons as needed, giving customers more flexibility with faster delivery. This initiative strengthens our supply chain, enhances vertical integration, and builds on our existing infrastructure. With a modest investment of under $3 million and exceptional execution by our team, we have unlocked an opportunity to grow share in a large serviceable and addressable market. We view this as a meaningful growth engine for Twist Bioscience, reinforcing our competitive edge and operational agility. This is a clear example of how we execute on portfolio expansion and product innovation. Over the next 12 months, we expect a series of new product launches in synthetic biology to unlock new market opportunities and expand our share in existing segments.

And under 12 months, we developed and scaled an internal primer manufacturing process, allowing us to streamline production and enhance control across the workflow.

Today, we offer gene fragments without adapters as a default while providing adapter add-ons as needed, giving customers more flexibility with faster delivery.

This initiative strengthens our supply chain, enhances vertical integration, and builds on our existing infrastructure.

With a modest investment of under $3 million and exceptional execution by our team, we've unlocked an opportunity to grow share in a large serviceable and addressable market.

We view this as a meaningful growth engine for Twist, reinforcing our competitive edge and operational agility.

This is a clear example of how we execute on portfolio expansion and product innovation.

Over the next 12 months, we expect a series of new product launches and synthetic biology to unlock new market opportunities and expand our share in existing segments.

Patrick Finn: We remain focused on broadening our offering and driving top-line growth while continuing to invest in differentiated, high-impact innovation that fuels long-term value creation. Turning to gross margin, in a little over two years, we did what we promised we would do in 2023 and improved margin from 31% to over 53%. We have driven this initiative through expanded revenue, volume leverage, as well as iteration of processes to increase contribution margin. In parallel, we are investing in innovation to sustain continued robust growth across the business for the foreseeable future. As we look toward crossing the threshold of adjusted EBITDA break-even, we see this as an important operational milestone to validate the strength and diversity of our platform, balanced with fiscal discipline.

We remain focused on broadening our offering and driving topline growth, while continuing to invest in differentiated, high-impact innovations that fuel long-term value creation.

Coming to gross margin in a little over 2 years, we did what we promised we would do in 2023 and improved margin from 31% to over 53%.

We've driven this initiative through expanded revenue, volume leverage, as well as iteration of processes to increase contribution margin.

In parallel, we are investing in innovation to sustain continued, robust growth across the business for the foreseeable future.

Patrick Finn: Break-even is not a finish line; it is a platform from which we intend to accelerate. We will continue to manage the business, redoubling our efforts to continue to drive robust top-line growth. At this time, I would like to turn the call over to Adam to discuss our financials.

As we look to more crossing the threshold of adjusting to break even, we see this as an important operational milestone to validate the strength and diversity of our platform balance of physical discipline.

Break-even is not a finish line.

It's a platform from which we intend to accelerate.

We'll continue to manage the business, redoubling our efforts to continue to drive robust top-line growth.

At this time, I'd like to turn the call over to Adam to discuss our financials.

Adam Laponis: Thank you, Paddy. Revenue for the third quarter of 2025 increased to $96.1 million, growth of 18% year over year and approximately 4% sequentially. Gross margin came in higher than expected at 53.4%, primarily due to increased revenue, volume leverage, as well as some order timing and mixed benefit. SynBio revenue increased to $35.2 million, growth of 7%, over $33 million for the third quarter of fiscal 2024. NGS revenue for the third quarter grew significantly to approximately $55.3 million, an increase of 27% year over year and 8% sequentially. Revenue from our top 10 NGS customers accounted for approximately 44% of NGS revenue for the quarter. We served 608 NGS customers in the quarter, with 155 having adopted our product. For Biopharma services, revenue was $5.6 million, growth of approximately 10%, over $5.1 million for the same period of fiscal 2024.

Thank you, Patty.

Revenue for the third quarter of 2025 increased to $96.1 million, representing an 18% growth year-over-year and approximately 4% sequentially.

Gross margin came in higher than expected at 53.4%.

Primarily due to increased revenue volume leverage, as well as some ordered timing and mixed benefits.

Symbiote revenue increased to $35.2 million, a growth of 7% over $33 million for the third quarter of fiscal 2024.

NGS revenue for the third quarter grew significantly to approximately $55.3 million, an increase of 27% year-over-year and 8% sequentially.

Revenue from our top 10 NGS customers accounted for approximately 44% of NGS revenue for the quarter.

We served 68 NGS customers in the quarter, with 155 having adopted our products.

Adam Laponis: We had 111 active programs at the end of June 2025, and we started 88 new programs during the quarter. Looking at revenue by industry, healthcare revenue rose to $56.4 million for the third quarter of 2025, compared to $42.8 million in the same period of fiscal 2024, an increase of 32%, reflecting the increased uptake of our products by large pharma, biotech, and diagnostic customers. Industrial chemical revenue was $23.1 million in the third quarter, approximately flat at $23.2 million in the same period of fiscal 2024, reflecting the anticipated step back in one large contracted customer, as mentioned earlier. It is worth mentioning that we held revenue flat without the large customer, speaking to the health and growth of our accounts within the industrial chemical segment.

For Biofarma, revenue was $5.6 million, representing a growth of approximately 10% over $5.1 million for the same period of fiscal 2024.

We had 111 active programs at the end of June 2025, and we started 88 new programs during the quarter.

Looking at Revenue by industry.

Healthcare revenue rose to $56.4 million for the third quarter of 2025 compared to $42.8 million in the same period of fiscal 2024.

An increase of 32%, reflecting the increased uptake of our products by large pharma, biotech, and diagnostic customers.

Industrial chemical revenue was $23.1 million in the third quarter, approximately flat with $23.2 million in the same period of fiscal 2024. This reflects the anticipated step back in one large contracted customer mentioned earlier.

It is worth mentioning that we held revenue flat without the large customer, speaking to the health and growth of our accounts within the industrial chemical segment.

Adam Laponis: Academic revenue was $15.9 million for the third quarter of 2025, up 7% from $14.9 million in the same period of fiscal 2024, with growth coming from both SynBio and NGS customers. North America academic revenue grew 10% sequentially, with orders up double digits both sequentially and over prior years. The only area of sequential decline in academic revenue was driven by a dip in NGS revenue from university-led clinical sites. Looking geographically, America's revenue increased to approximately $59.4 million in the third quarter, up 16% compared to $51.4 million in the same period of fiscal 2024. EMEA revenue rose to $30.7 million in the third quarter versus $23.6 million, up 30% compared to the same period of fiscal 2024. Revenue growth reflects ongoing demand dynamics in the region, and we do not believe tariff concerns drove any material pull forward in EMEA.

Academic revenue is $15.9 million for the third quarter of 2025, up 7% from $14.9 million in the same period of fiscal 2024.

The growth coming from both Symbiote and NGS customers.

North America academic revenue grew 10% sequentially, with orders up double digits, both sequentially and over the prior year.

The only area of sequential decline in academic revenue was driven by a dip in the Nia NGS revenue from university-led clinical sites.

Looking geographically.

School 2024.

A Mia revenue rose to $30.7 million in the third quarter versus $23.6 million.

Up 30% compared to the same period of fiscal 2024.

Revenue growth reflects ongoing demand dynamics in the region, and we do not believe tariff concerns drove any material pull forward in AIA.

Adam Laponis: APAC revenue was $5.9 million in the third quarter compared to $6.5 million in the same period of fiscal 2024. China continues to be a relatively small portion of our revenue at approximately 1.5% of total revenue for the third quarter of fiscal 2025. Moving down to P&L, our gross margin for the third quarter increased to 53.4%, an improvement of over 10 margin points versus the third quarter of fiscal 2024, reflecting our strong revenue growth and customer base, while holding expenses relatively flat year over year. We also benefited sequentially from customer mix, order timing, and the acceleration of continuous process improvement initiatives. Operating expenses, excluding cost of revenues for the third quarter, were approximately $81.4 million compared with approximately $79.3 million, excluding impairment of long-lived assets in the same period of 2024. OpEx decreased by approximately $5.9 million sequentially.

In APAC, revenue is $5.9 million in the third quarter compared to $6.5 million for the same period of fiscal 2024.

Trying to continue to be a relatively small portion of our revenue at approximately 1.5% of total revenue for the third quarter of fiscal 2025.

Moving down the p&l.

Our growth margin for the third quarter increased to 53.4%, an improvement of over 10 margin points versus the third quarter of fiscal 2024, reflecting our strong revenue growth and customer base while holding expenses relatively flat year-over-year.

We also benefited sequentially from customer mix, order timing, and the acceleration of continuous process improvement initiatives.

Operating expenses, excluding costs of revenues, for the third quarter, were approximately $81.4 million, compared with approximately $79.3 million, excluding impairment of longer assets, in the same period of 2024.

OPEX decreased by approximately $5.9 million sequentially.

Adam Laponis: Operating expenses included approximately $1 million for data storage in the third quarter, net of one-time reversals of compensation accruals. We realized the majority of the OpEx benefit from the Atlas transaction in Q3 and expect we will realize the full benefit of approximately $5 million per quarter in Q4. Looking at our progress on our path to profitability, for the third quarter of fiscal 2025, adjusted EBITDA was a loss of approximately $8 million, an improvement of about $14 million versus the third quarter of fiscal 2024. The Atlas Data Storage transaction resulted in a one-time accounting gain of $48.8 million in Q3. This gain resulted in recording net income of $20.4 million for the third quarter. As part of the Atlas transaction, our investment in Atlas was accounted for as an investment in equity securities and recorded at its fair value.

Operating expenses included approximately $1 million for data storage in the third quarter, net of one-time reversals of compensation.

We realized the majority of the Opex benefits. Net was a transaction in Q3 and we expect to realize the full benefit of approximately $5 million per quarter in Q4.

Looking at our progress on our path to profitability.

For the third quarter of fiscal 2025, we reported a loss of approximately $8 million, which reflects an improvement of about $14 million compared to the third quarter of fiscal 2024.

The Atlas data storage transaction resulted in a one-time accounting gain of $48.8 million in Q3.

This game resulted in recording a net income of $20.4 million for the third quarter.

Adam Laponis: We will assess the value of Atlas on a quarterly basis with any changes in value recorded as other expense. We ended the quarter with cash, cash equivalents, and short-term investments of approximately $250.8 million. Turning to guidance, we are narrowing our total revenue guide at $374 million to $376 million for fiscal 2025, indicating growth of approximately 19.7% at the midpoint year over year. SynBio revenue guidance of $144 to $145 million, growth of approximately 17% at the midpoint year over year, reflecting the continued share gains we saw in H1 driven by the Express genes portfolio. NGS revenue of $207 to $208 million, growth of approximately 23% at the midpoint year over year. Biopharma revenue guidance is $23 million, growth of approximately 13% year over year.

As part of the Atlas transaction, our investment in Atlas was accounted for as an investment in equity securities and recorded at its fair value.

We will assess the value of Atlas on a quarterly basis, with any changes in value recorded as other expenses.

We ended the quarter with cash, cash equivalents, and short-term investments of approximately $250.8 million.

Turning to guidance.

We are narrowing our toll revenue guide to $374 million to $376 million for fiscal 2025, indicating growth of approximately 19.7% at the midpoint year-over-year.

Revenue guidance of $144 million to $145 million, reflecting growth of approximately 17% at the midpoint for the year, indicates continued share gains. We observed this in H1, driven by the express portfolio.

NGS revenue of $207 to $208 million, growth of approximately 23% in the midpoint year-over-year.

Basis is $23 million, with a growth of approximately 13% year-over-year.

Adam Laponis: For Q4 fiscal 2025, we expect total revenue of approximately $96 to $98 million, growth of approximately 14.5% versus Q4 fiscal 2024 at the midpoint. SynBio revenue of approximately $38 to $39 million. NGS revenue of approximately $52 to $53 million. A key top 10 account is transitioning from validation to commercial deployment, a critical inflection point unlocking multi-year revenue opportunity and more predictable reoccurring revenue streams. We expect a planned $5 million revenue normalization in Q4 and some Q1 impact as this customer optimizes their rollout. This temporary adjustment positions both companies for accelerated growth ahead. We expect Biopharma revenue of approximately $6 million. For the full year fiscal 2025, we now expect a gross margin of approximately 50.5% to 51%, an increase of one margin point over our prior margin guidance and 8.1 points of improvement year over year at the midpoint.

For Q4 fiscal 2025, we expect total revenue of approximately $96 to $98 million, representing growth of approximately 14.5% versus Q4 fiscal 2024 at this point.

Symbol revenue of approximately $38 million to $39 million.

NDS revenue of approximately $52 to $53 million.

A key top 10 account is transitioning from validation to commercial deployment.

A critical inflection point unlocking multi-year revenue opportunities and more predictable recurring revenue streams.

We expect a plan for $5 million in revenue normalization in Q4, with some Q1 impact, as this customer optimizes their rollout.

This temporary adjustment positions both companies for accelerated growth ahead.

We expect Biofarma revenue of approximately $6 million.

For the full fiscal year 2025, we now expect a gross margin of approximately 50.5% to 51%, an increase of 1 margin point over our prior margin guidance, and 8.1 points of improvement year-over-year at the midpoint.

Adam Laponis: We expect an adjusted EBITDA loss of approximately $45 to $47 million for fiscal 2025, an improvement of more than $46 million versus fiscal 2024. We expect Q4 fiscal 2025 adjusted EBITDA will be a sequential improvement over Q3, which, as I mentioned earlier, did include the majority of Atlas Data Storage gains. In closing, I would like to note that although variability may occur at the product line level, our exposure across multiple end markets and customer types mitigates risk and supports our outlook as continued top-line expansion. With that, I will turn the call back to Emily Leproust.

We expected it adjusted. Even with a loss of approximately $45 to $47 million for fiscal 2025, there are improvements of more than $46 million versus fiscal 2024.

We expect Q4 fiscal 2025 to show a sequential improvement over Q3, which, as I mentioned earlier, did include the majority of Battle of Games.

Let's continue the Top Line expansion with that. I'll turn the call back to Emily.

Emily Leproust: Thank you, Adam Laponis. We continue to operate in a fast-moving, ever-evolving environment. At Twist Bioscience, we view this as an opportunity. Our deep customer engagement drives sharp understanding of market needs. By anticipating our customer needs, we build products fit for purpose that evolve into high-margin, competitive portfolios. As innovators, we play the long game. Product introductions today generate increasing revenue in three to five years. Our proprietary platform technology provides powerful differentiation. By driving cost and scale efficiency early in the workflow through monetization and automation, we embed the structural cost advantages across all product lines, supporting attractive unit economics and scalable margin expansion. We continue to expand our product portfolio, targeting diverse markets to enable resilience and extend our available share. Our mindset enables us to adapt quickly to both challenges and opportunities. We respond to market shifts with speed and creativity. Challenges become catalysts for innovation.

Thank you, Adam.

We continue to operate in a fast-moving, ever-evolving environment. We view this as an opportunity. Our deep customer engagement drives our sharp understanding of market needs by anticipating our customers' needs. We build products fit for purpose that evolve into high-margin competitive portfolios.

As innovators, we play the long game. Product introductions today generate increasing revenue in 3 to 5 years.

Our proprietary platform technology provides powerful differentiation by driving cost and scale efficiency early in the workflow through miniaturization and automation. We embed the structural cost advantages across all product lines, supporting attractive unit economics and scalable margin expansion.

We continue to expand our product portfolio targeting diverse markets to enable resilience and extend our available share.

Our mindset enables us to adapt quickly to both changes and opportunities. We respond to market shifts with speed and creativity; challenges become catalysts for innovation.

Emily Leproust: Today, we have highlighted several powerful levers fueling our growth outlook. We have expanded our base of ordering customers, converting smaller accounts into future growth drivers. We have multiple opportunities in our NGS tools portfolio, including Express genes and MRD. We are seeing compelling synergies between our synthetic biology products and Biopharma services, and we believe AI will serve as a catalyst for increased demand across our product and service offerings. In parallel, our customers continue to scale commercially, further expanding our opportunity. Importantly, we recognize that certain product groups may experience short-term fluctuations, but our diversified customer base and broad portfolio create a resilient growth engine that supports sustained performance and revenue growth across market cycles. Over the past two years, we have made margin expansion a top priority, and our discipline has delivered.

Today, we have highlighted several powerful levels. Shielding our growth outlook, we have expanded our base of ordering customers, converting smaller accounts into future growth drivers.

We have multiple opportunities in our NVS portfolio, including Flex and press NMVR. We are seeing compelling synergies between our synthetic biology products and biopharma services, and we believe AI will serve as a catalyst for increased demand across our products and service offerings.

In parallel, our customers continue to scale commercially further, expanding our opportunity.

Importantly, we recognize that certain prayer groups may experience short-term fluctuations, but our diversified customer base and broad portfolio create a resilient growth engine that supports sustained performance and revenue growth across market cycles.

Emily Leproust: We have achieved gross margin above 50%, a level we expect to sustain and grow going forward. With that foundation in place, we are now rebalancing our focus to our top-line acceleration. As we look to cross-adjust EBITDA break-even next year and with gross margin now consistently above 50%, we are operating from a position of strength. We see a clear path to driving top-line growth while maintaining margin discipline, delivering quality growth with strong fundamentals. Our team, platform, and mission remain our greatest asset to best serve our customers. These core strengths drive sustainable, profitable growth and deliver lasting results. At this time, let's open the call for questions. Operator?

Over the past two years, we have made margin expansion a top priority, and our discipline has developed.

We have achieved a growth margin of 50%. We expect to sustain and grow going forward.

With that foundation in place, we are now rebalancing our focus to our top-line acceleration.

As we look to cross into the next year and with gross margins consistently around 50%, we are operating from a position of strength. We see a clear path to driving topline growth while maintaining mountain discipline, delivering quality growth with strong fundamentals.

Our team, platform, and mission remain our greatest assets to best serve our customers. These cost strengths drive sustainable, profitable growth and deliver lasting results.

At this time, we support the call for questions. Operator?

Operator: Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. We do ask to please limit to one question, you may return to the queue if you have additional questions. Our first question will come from Matt Larew with William Blair. Your line is open.

Thank you. As a reminder, to ask a question, please press star 1, 1 on your phone.

And wait for your name to be in the queue and to withdraw your question. Please press *1*1 again. We do ask you to please limit yourself to one question, and you may return to the queue if you have additional questions.

And our first question will come from Matt LaRue with William Blair. Your line is open.

Matt Larew: Good morning. Thanks for taking the question. I wanted to start on SynBio. You obviously see the growth high single digits year over year, but you referenced a large border closer to 20%. The fourth quarter I think also is growth maybe in the low double digits, and the five-year CAGR for that business of course more in the 20% range. You have a lot of new products coming on, and you referenced net new customers in academics. Could you just give us a sense what are you hearing from customers? What have order trends been like? Is there anything needed to unlock budgets for customers? How much are we anticipating new products to really start to contribute? Just trying to mix and match here between positive and more cautious signals that we are seeing in numbers.

20%, uh, you know, the fourth quarter, you know, I think also is, uh, growth maybe in the low double digits. Um, and the five-year kicker for that business, of course, more in the 20% range. And you have a lot of new products coming on any reference, net new customers and academic. So, could you just give us a sense? You know, what are you hearing from customers? What have ordered transplant, Mike? Is there anything needed to unlock budgets for customers? How much anticipating new products, uh, to really start to contribute? Uh, just trying to, you know, mix and match here between positive and, uh, you know, more cautious signals that we're seeing in the numbers.

Emily Leproust: Yeah, thank you, Matt. That's a great question. SynBio's very important business rollout. There are two parts to your question. One, existing products really resonate with customers. Our customers are happy, and we don't have all the customers. Actually, we have a small fraction of the customers who are very well integrated into the big accounts. So there's a long tail of smaller customers that when we reach them, when we bring them on the platform, they are very happy and they keep growing. That's the first opportunity for us is leveraging the Twist, whether it's leveraging our digital marketing, leveraging our sales team to get people on the platform. The second part is we have a very rich roadmap of new product contributions that are coming. Paddy mentioned once a day with our adaptive fragment.

Yeah, thank you Amanda, great question. Um, and the symbol is very important business, uh, follow up. Um, I mean 2 2. 2 Pops to to to your questions, 1 existing product, really resonates with the customer.

Um, our customers are happy, um, and we don't have all the systems, actually. We have a small fraction of the system as well. Very well integrated into the big accounts, but there's a long hill of, uh, of um, that um, when we reach them, when we bring them on the platform. Yeah, they have the keyboard. And so that's, that's the.

Emily Leproust: Obviously, we can't foreshadow who our business is going to be, but there's a great opportunity for us to continue to leverage our growth engine, continue to leverage our R&D in this product to keep launching highly differentiated products. To that extent, AI is a great catalyst for us. I think AI is changing a little bit the game about how drug discovery is being done, and it's driving that customer demand where the platform is great. Overall, join us with us in the first day you are. We are definitely going to drive forward. As you know, maybe the last point I'd mention, when we started two years ago, the growth margin for SynBio maybe was not as great as the one for NGS.

Um, that's the the first opportunity for us is leveraging, um, um, The Twist, whether it's reaching out, boosted marketing, delivering, our sales team to get people on on the platform. The second part is um we have a very rich uh road map of new product construction that are coming. Um Harry mentioned once a day with the Prime Minister. Um but we we can't uh floor Shadow to our completed. Those that we do. But there's a great opportunity for us to continuing to leverage our growth in engine. Uh, continue to leverage our R&D in their productive to keep launching highly differentiated, um, products and to, to, to that extent. Um, AI is need to be a great citizen for us. I think AI is a

Little bit again about our project Discovery is being done and it's driving that customer within where where the platform is right? So overall um you only as good as the university you are and so we we are definitely going to to drive for both and um as as you know me the last point I mentioned uh when we started uh 2 years ago, the growth model in BIO maybe was not as great as the 1 for NGS.

Emily Leproust: There's been a significant effort on bringing the growth margin to where it is today, which is significantly over 50% and will be over 50% for the rest of the future. We're going to rebalance a little bit our internal resource, less on growth margin. We'll keep moving forward, but maybe a bit more on growth. Overall, very, very bullish for the future.

um,

and so there's there's been a, the thing is, you cannot pay for on bringing the the growth out into it. Is uh, today which is uh, same thing over 50% and will be as of this person for the rest. So the possible future. Um, and and so, we're going to rebalance a little bit. Our internal resource, uh, Less on both marketing. I will keep moving forward, but maybe a bit more on hold. So overall they they do this for, um, the so the future of

Operator: Thank you. The next question will come from Subbu Nambi with Guggenheim Securities. Your line is open.

Thank you. The next question will come from...

Subu Nambi with Guggenheim, your line is open.

Subbu Nambi: Hey, guys. Thank you for taking my questions. Adam, you have been more prudent with your guidance, especially when it comes to the NGS segment and not factoring in clinical diagnostic product plans until they have materialized, which we think makes sense given this is out of your control. That said, you still had some internal expectations of when the assets would launch. So we were curious to know how this played out in 2025 so far. Did these launches tend to be more delayed than expected or on time or sooner? As you look into 2026, would you change your approach here? Thank you.

Thank you for taking my questions. Um, Adam, you have been more prudent with your guidance, especially when it comes to the MGs segment and not factoring in clinical diagnostic product plans until they have materialized, which we think makes sense, given this is out of your control. That said, you still had some internal expectations of when the assets would launch, so we were curious to know how this played out in 2025 so far. Did these launches tend to be more delayed than expected, or on time, or sooner? And then, as we look into 2026, would you change your approach here? Thank you.

Adam Laponis: Absolutely. Thank you for the question. We spent a lot of time talking about forward-looking elements of NGS and a lot of excitement around the future of NGS growth. As I said on previous calls, we will not change our methodology moving forward, but we never want to be on the wrong side of the guidance, particularly around a new product launch. A product that launches in the second week versus the 11th week of the quarter can have a booming point. As you saw in the upfront section of the call, we talked about one account going through a meaningful transition toward commercialization this quarter coming up in Q4. That is in line with our expectations for the year.

Hi, good evening. Thank you for the question. Um, you know, we spent a lot of time talking about...

For local developers. And yes, there is a lot of excitement around the future growth of NGS. Um, as I said on previous calls, we won't change our methodology moving forward, but we never want to be on the wrong side.

Of the guidance, particularly around a new product launch. Um, you know, our product launches in the second week versus the 11th week of the quarter can have a meaningful impact.

Adam Laponis: We incorporate that into our guidance for the year, but it is also one that will slow down and reaccelerate and really speed up the long-term commitment and growth opportunity with this account for NGS. When I look at other launches coming, a lot has been said around MRD. I think what I would say today is MRD is a very small percentage of our NGS business in 2025. We expect a significant ramp in 2026. Remember, we are dealing with a lot of small entities. While MRD revenue today is growing faster than the overall NGS business, we expect that trend to continue in that market and beyond. It is still a relatively small portion of our NGS business. I think if we look forward to 2026, we have a number of MRD customers. They are finalizing their tests and going through clinical validation.

With our expectations for the year. And, um, we we we we incorporate that into our guidance for the year, but it is also 1 that it will, you know, slow down as if the accelerate and it really speaks to the long-term commitment and growth opportunity with this account and for NGS, I look at other launches coming. A lot has been said around. Mrs. And I think we had said today is mrd, is a very small percentage of brand that you have students in 2025 and we expect a significant ramp in 2026. But remember, we're dealing with a lot smaller.

Adam Laponis: We expect commercial launches in 2026 and 2027, which we believe will continue to drive our annual growth well into the future.

And while MRD revenue today is growing fast because of the overall idea of the business, we expect that trend to continue in that voice to be on. It's still a relatively small portion of our interests. And so, I think we look forward, um, you know, to 2026; we have it in the number of MRD customers, they're finalizing their tests and going through clinical validation, and we expect commercial offices of 2016 and 277, which we believe will continue to drive our endless growth, as well as the future. Thanks to this.

Operator: Thank you. The next question will come from Luke Sergott with Barclays. Your line is open.

Thank you. And the next question will come from Luke Surrogate with Barclays. Your line is open.

Luke Sergott: Great. Thanks for the questions. I just wanted a quick cleanup and then to follow up there on the NGS side. On the customer push-out that you guys said $4 million to $5 million from Q4, is that all, you know, any timing there that we can expect in 2026, or do we get a little bit of that in at the back half of Q4 just from a modeling sense? On the NGS strength, you guys are, the clinical piece is clearly one of the strongest parts of that market. Just an update there, how much that business comes from the clinic side. The reason I am asking is just because you guys are also talking about penetrating the academic government market, given its weakness there and you are just, you know, commercially violent.

Great, thanks for the questions. Um, I just wanted to Quick clean up and then to to follow up there on on the NGS side. So on the the customer push out that you guys said 4 to 5 million from 4 q. Is that, is that all, um, you know, any timing there that we can expect in 26 or we get a little bit of that in, at the back, half of fork, you just from a modeling sense.

And then, um, on the NGS strength.

um,

Luke Sergott: Trying to figure out, is that NGS piece, can you penetrate that A&G market with the NGS piece, given it is considered more crowded and definitely close to commoditized with the NGS side?

You know, you guys are you the the the clinical piece is clearly 1 of the strongest parts of that market. And so, just an update there, how much that business comes from uh, from the clinic side? And the reason I'm asking is because you guys are also talking about penetrating, the academic government Market, um, given that its weakness there, and you're just, you know, commercially violent. So, trying to figure out, you know, is, is, is that ngsp

Um, can you penetrate that AMG market with the NGS piece? Given it's considered more crowded and definitely, uh, close to commoditized with the NGS.

Adam Laponis: Luke, this is Adam Laponis. Great question. Thank you. For the NGS, the one cut we are going through that transition, we expect a $5 million air pocket in Q4, and we expect some additional impact into Q1 of next year. That being said, we are very confident in the guidance we gave this quarter, as well as continued sequential growth in 2026, quarter over quarter. In terms of the other dynamics of the clinical, I will pass the ball over to Emily Leproust.

Yeah, Luke um this is this is Adam, great question, thank you for the NGS. The 1 customer going through that transition. We expect a 5 million dollar air pocket in before and we expect some additional impact in the q1 of next year. Um, that being said we are very confident in the guidance. We gave this quarter as well as continued sequential growth in 2026 quarter of a quarter. Um, in terms of

Emily Leproust: Yeah, thanks, Luke. In terms of NGS, Harverson writes that the strength has been in the clinical adoption. We have made a big bet in 2017, 2018 at the time of the IPO, and it has paid off. We continue to see future strength. MRD, we have discussed it just now on the previous question, is going to, it is still small, but it is growing and it will become a meaningful, significant part of our goal. I think as far as the foreseeable future, clinical strength is going to continue to be key to our goal. Those, unfortunately for patients, but from a business point of view, it is a very recession-proof type of business.

The the other dynamics of the clinical, I'll pass the ball over to Emily. Yeah. Thanks. Okay. And in terms of NGS, um, you know, Harvest on right there, so the, the the strength has been, um, in the clinical education. Um, you know, we we've made a big bet. Um, 2017, 2018. There's some of the IPO and, uh, it's, it's, it's made us, uh, we continue to see future strength, uh, mrd was discussed. Just now in the previous question, uh, is going to receive small, um, uh, but it's, it's it's growing and, and, uh, it will become a meaningful significant, uh,

Part of of our goal. So I think as far as the the foreseeable future um vehicle strength is going to continue uh to to heat to our growth and you know those

Emily Leproust: At the same time, we are investing into broadening our market access. We have launched FlexPress. It is squarely focused on AgBio. We have mentioned multiple times that the days of the microarrays are numbered, and Twist Bioscience with NGS is going to drive that transition in AgBio. We have invested in our enzyme portfolio to use in our NGS kit, and that is going to give us more strength outside of clinical in the research market. I would say in the short term, for sure, the clinical strength is going to continue to be the great growth engine. In the medium to longer term, we are seeing green shoots outside of clinical strength that is going to diversify even more our portfolio and our growth opportunity.

Uh, unfortunately, for patients, but uh, from a business point of view, it's very Recession Proof, uh, type of of business. But at the same time, we're investing into a broadening, uh, our Market access, um, we've launched Flex prep, it, it's clearly produced on on, on a bio we've mentioned multiple times that uh we think the the the days that the microarrays are numbered and and tweaked with NGS using to to drive that the transition um in in

In, in a bio.

I'll talk to you, and I'll go for opportunity.

Operator: Thank you. The next question is going to come from Vijay Kumar with Evercore ISI. Your line is open.

Thank you. And the next question is going to Emily Leproust.

From VJ Cummer with Evercore, your line is open.

Matt Larew: Hey, guys. Thanks for taking my question. Congrats on the nice execution here on gross margins. Maybe back on this prior question from Luke Sergott on this customer transition. I thought I heard a $5 million number. Is that the dollar revenue impact in Q4? Is that what's driving this NGS step down Q1? Related, I think you said you expect those revenues to be recognized in Q1. Is all $5 million coming in Q1? Should seasonality, should we be expecting normal seasonality just because of this revenue push-out when you think of a cadence from Q1 to Q2 of next fiscal? Thank you.

Hey guys. Um, uh, thanks for taking my question and congrats on the nice execution here on a gross. Margins, maybe back on this, prior question, from Luke on, on this, uh, customer uh transition. I, I thought I heard a 5 million number, is that the dollar Rally impact in Q4 is that what's driving this NG a step down Q on Q and sort of related? I think you said, um, you expect those revenues to be recognized in q1. So it's all 5 million coming in q1, uh, and should seasonality should be be expecting normal seasonality, just because of this of Revenue per share when they think of a Cadence from q1 to Q2 next. Let's go. Thank you.

Adam Laponis: Hey, Vijay. This is Adam. Thanks for the question. What we've contemplated in the guidance is a $5 million step down in Q4 for that one customer sequentially to Q3. That is incorporated in that driving the NGS guidance. In Q1 and beyond, we do expect overall sequential growth in the business, but we expect some of that slowdown from that customer also occurring. Hopefully, that clarifies the back burn. We are committed to sequential growth in Q1 and beyond.

Hey DJ. This is Adam. Thanks for the question. What we've contemplated in the guidance is a 5 million dollar debt down 824 for that 1 customer sequentially, but 23 and that's Incorporated has been thriving. The DNS guidance in q1 and Beyond we do expect overalls to point to a growth in the business but we expect some of that slow down from that customer but also a current team hopefully that clarifies the investment but we are committed and we're committed to sequential growth in q1 again.

Operator: Thank you. The next question comes from Puneet Souda with Leerink Partners. Your line is open.

Thank you. And the next question comes from Punnett suda with lying. Your line is open.

Adam Laponis: Hi, guys. You have Michael on for Puneet Souda this morning. Thanks for taking my question. I was wondering if we could talk a little bit about the U.S. academic market. I think you noted 10% year-over-year growth, which sounds pretty positive given the backdrop. However, if you could attribute that to share gains that you're pursuing with the waivers or if the end market has evolved differently than you expected.

Hi, guys. Um, you have Michael on for if you need this morning. Um, thanks for taking my question. Um, I was wondering if we could talk a little bit about the US academic Market, I think you noted 10% year-over-year growth with some pretty positive, given the backdrop. I wonder if you could attribute that to, you know, share gains that you're pursuing with uh, the waivers for if uh, the End Market has evolved differently than you expected.

Patrick Finn: Yeah, thanks for the question. As you could tell, it's really underpinned again by our core value proposition. In a tough market, our technology advantage gives us a product and a value proposition that resonates with the customer. More short-term goals and steamboated spend is really what's driving our growth and share grab in that segment. When you couple that with, you know, that's people trying the platform, and you couple that with our product portfolio that's shown some good growth and really solving customer problems, then it adds some runway to build from here.

Yeah, thanks for the question. Yeah, yeah, good result. It's really fun to paint Again by core value proposition, and a tough Market.

Our technology Advantage gives us a product and a value. Proposition that resonates with the customer more shots on goal. For the same budget spend is is really what what's driving our growth and um share grabs in that segment.

and when you couple that with, you know, that's people trying the platform and you couple that with a, you know, a product portfolio that that shows some good breaths and really solving customer problems and

Adam Laponis: Michael, just to clarify, the growth in the U.S., both on orders and on revenue, was up 10% sequentially. Thanks for the dry line.

That's the wrong way to build from here.

Michael, just to clarify the growth, in the US, uh, both on orders and on Revenue with, uh, 10% sequential. So, this is right.

Operator: Thank you. The next question will come from Doug Schenkel with Wolfe Research. Your line is open.

Thank you. And the next question will come from

Doug shinkle with wolf research. Your line is open.

Madeline Molman: Hi, this is Madeline Molman on for Doug Schenkel. You mentioned in the prepared remarks that the timing of orders benefited gross margin. Is it possible to give us a sense of how much of the strength in the quarter was due to that versus volume and leverage? As we look past 2025, is the Q4 exit rate of sort of 51%, 52% a good jumping-off point for 2026? Just a point of clarification on the $5 million normalization. Was that contemplated in the prior guidance?

Hi. This is Moline. Mullman on for Doug, you mentioned in the prepared remarks, that the timing of orders benefited growth margin, is it possible to give us a sense of how much of the strength in the quarter was due to that versus volume and leverage? And then as we look past 2025 is the Q4 exit rate of sort of 5152 percent, a good jumping off point for 2026 and then just a point of clarification on the 5 million normalization, was that contemplated in the prior guide and

Adam Laponis: Madeline for that, and thank you for the question. On a full-year basis, the normalization was contemplated in the guidance. The timing was always the big question mark for us. In terms of the gross margin benefit, when you dissect the Q4 guidance, it's at 51% to 52%. So you see basically the majority of that step back about one to two points. You could attribute to some of the timing elements of the benefits we saw in Q4. We do expect improvements in gross margin moving forward. If I look at 2026 versus 2025 in aggregate, there's no going backwards from the 50% that we've seen out of the profit, but we expect continued improvements year on year in the gross margin.

that I'm

the question on a full year basis.

Explained it into the guidance. The timing was always the big question mark for us in terms of the gross margin benefit. Um when you when you dissect the Q4 guidance is that 51 to 52% you see bases the majority that step back to about 1 to 2 points.

Adam Laponis: As Emily Leproust mentioned, we are putting a lot of that energy that is driving our gross margin into continuing to be customer-driven at need, but as we continue with product improvements and new product introductions. So we are focusing on growth while also continuing to expand our gross margin.

Contribute to some of the the timing on the benefits we saw before we do expect improvements in gross margin moving forward and what I like is 26 versus 25 in aggregate. There's no going backwards from the 50% that we can out of the process but we expect a continued Improvement year on year in the gross margin. But the Emily mentioned we are putting a lot of that energy that is driving the growth margin in the continuing to be customer. And that means but it because it was process Improvement through new projects. So we are focusing on growth while also continuing to expand.

Operator: Thank you. The next question will come from Thomas Peterson with Baird. Your line is open.

Thank you. And the next question will come from Tom Peterson with beard. Your line is open.

Thomas Peterson: Hey, guys. Thanks for taking the questions. Congrats on a solid quarter. I was just wondering, as we think about sort of the gross margin progression in Q4 and into 2026, as well as some of the comments on the adjusted EBITDA break-even target by 2026 end, how should we think about the balance of reinvestment back into the business here over the next 12 months or so? How are you contemplating that versus further adjusted EBITDA improvements? Just how should we think about sort of your OpEx investment priorities over the next 12 months? Thanks.

For taking the questions. Congrats on a solid quarter.

Um, I was just wondering, as we think about sort of the gross margin progression in the fourth quarter and into 2026.

Uh, as well as some of the comments on the adjusted e, with our break, even Target by 26 end. You know, how should we think about the balance of reinvestment back into the business here over the next 12 months or so. Um, how are you controlling the ad versus further adjusted with that improvements? And just, how should we think about sort of your Opex investment priorities over the next 12 months? Thanks.

Adam Laponis: Tom, thank you for the question. As we are looking towards the future, I think there's a couple of things on 2026 to say. One first is we will be giving full formal guidance when we close out Q4 in November, and we will initiate then. We do expect continued sequential growth across the business in every quarter. We also expect improvements year on year at the gross margin line, and we are reestablishing our commitment to being adjusted EBITDA positive by Q4. All that is to say is the investments we see in OpEx are going to be positive. We still see the number one driver of our passive profitability is the continued revenue growth of the business. We will be looking to ensure that we continue to accelerate growth and where there's opportunities to invest efficiently and profitably, we absolutely will be.

Tom, thank you for the question and we are looking towards the future, you know. I think there's a couple things on 2026 to say 1 first is we'll be giving full formal guidance when we uh we close out a few for it and

November. And

Appreciate that. But we do expect continuous sequential growth across the business. And every quarter, we also expect improvements year over year in the gross margin line, and we are re-establishing our commitment to being adjusted and even positive by Q4. All that is to say, the investments we see in the office are going to be models.

Uh, we still see the number 1 driver of our passive profitability revenue of the business, but we will be looking to ensure that we continue to accelerate growth and where there's opportunities to invest efficiently, and possibly, we absolutely will be.

Operator: Thank you. The next question will come from Brendan Smith with TD Cowen. Your line is open.

Thank you. And the next question will come from Brendan Smith with TV Cohen. Your line is open.

Chad Widtroskian: Hey, everyone. It's Chad Widtroskian for Brendan. Now that Atlas, the spin-out, is executed, I just wanted to kind of take this opportunity to ask about M&A. What do you view as maybe potential white space in the business today? Is that something you're thinking about, or is the focus in the near term as you march towards profitability just to continue to launch new products, which you've obviously been doing pretty efficiently in terms of R&D expense? Thanks.

Hey everyone. It's chavan for Brendan. Um, now that Atlas uh, the spin out is executed, I just wanted to kind of take this opportunity to ask about m&a.

Sort of, what do you view as maybe potential White space in the business? Today uh is that something you're thinking about? Or is the focus in the near-term as you march towards profitability? Just to continue to launch new products uh which you've obviously been doing pretty efficiently in terms of R&D expense. Thanks.

Patrick Finn: Yeah, thanks for the question. I think we have this relentless focus on the drive to adjust leadership break-even. We have a good track record in delivering this sequential performance over the last few years, and there's no reason for that to continue, or not to continue, excuse me. We're building the model and to learn what's going out in the market and think about inorganic augmentation of the product portfolio. For the near term, we're concentrating just relentlessly on our game.

Yeah, thanks. Thanks for the question. I think we have just Relentless Focus.

on the drive to adjust these to break even

Um, you know, we we've got a good track record in delivering this sequential performance over the last few years and there's no reason for that to continue a lot to continue. Excuse me. Um, you know, we're building the muscle and to, to learn what's going out in the market and think about inorganic augmentation of the product portfolio. Um, so, you know, but for the near term, we're we're concentrating.

Just wasn't, so, I will.

Operator: Thank you. The next question will come from Thomas Peterson with Wolfe Research. Your line is open.

Game, thank you. And the next question will come from Tom deori with nephron research. Your line is open.

Thomas Peterson: Hi. Thanks for taking the question. Just around, I guess, international growth. I know it has been a little lumpy over time, but just wanted to understand how the company is adapting its platform and addressing regional market demands and maybe challenges given tariffs and other situations internationally and, I guess, your opportunity to grow there.

Hi, thanks for checking the question. Um, just around, I guess, international growth. Uh, I know it's been a little lovey over time, but just wanted to understand kind of.

How the company is adapting, its platform, and how it is addressing regional market demand, maybe challenges given it, uh,

Tariffs and other situations, uh, internationally, at I guess your opportunity to grow their.

Emily Leproust: Yeah, thanks, Tom, for the question. Obviously, there is some uncertainties around tariffs, but we have a good advantage. It is that we have a low variable cost in our platform. The goal for doing all of this is to drive volume. I wrote the last quarter or so, there has been tariff on, tariff off. I think we were able to navigate that, and we are able to take more than our fair share. Adam Laponis mentioned earlier that, and I will reiterate because it is just very important, is what we offer to our customers is fast, high-quality, and lower cost in DNA than the competition, which means that anytime there is a funding issue either due from government funding or due to tariff, we are in a better position to take advantage of it because we offer more certain goals for a given budget.

Yes, thanks for for the question. Um, you know, you see there, there's some certainty around Paris but we, we, we, we have a, a good Advantage. Um, it's that, um, we have a low, um, low viable because, you know platform, um, and, uh, took off with the apology to drive William and, uh, I will the last quarter or so that has been started on start off. Um, but I think we, we're able to mitigate that and we're able to take more than enough, fair share. Um, and I didn't mention earlier, uh,

Emily Leproust: We will keep leaning into our differentiation, into our opportunity, and we are committed to delivering continuous sequential growth quarter after quarter. It is all thanks to the very varied markets that we serve, the hundreds of SKUs that we have and thousands of customers. We have a very resilient growth engine, and we keep leveraging.

Continue to control the growth process, the quarter.

And um, and it's all thanks to uh, the very varied Market that we serve the hundreds of views that we have a thousands of of of customers. Um, we have a very resilient growth engine and and and keep everything

Operator: Thank you. The next question comes from Rachel Fattenstall with J.P. Morgan. Your line is open.

Thank you. And the next question comes from Rachel Fat. With JP Morgan, your line is open.

Jaden: Hi. This is Jaden on for Rachel. I just had a quick one on SynBio for the quarter. I was wondering if you could speak more about what drove weakness on SynBio versus what you were originally guiding for $37 million to $39 million. Thank you.

Hi. This is Jaden on for Rachel. I just had a quick 1 on, send bio for the quarter. I was wondering if you could speak more about what drove weakness on some bio versus what you originally guiding for, uh, 37 to 39 million. Thank you.

Emily Leproust: Yeah, thanks for the question. We knew we had a tough call because we had a bigger complexity of customers that didn't repeat quarter by quarter. We knew we had to bring more customers on the platform, which we did. We added hundreds of customers. However, those are new customers, and we're still learning with them. There was a little bit of uncertainty in the forecast in terms of the speed at which they will run. If you exclude that one tough call, the business is absolutely ripping, more than 20% growth. Overall, the business is doing really, really well. That is before the full introduction of the MPI roadmap that we have. Overall, I think the future opportunity in SynBio is brighter than ever. It happens at a time where we have a gross margin, a contribution margin for SynBio that is very close to NGS.

Yes, thanks. Thanks for the question. Um, so we knew with a test comp if we were a big contracted customer that, um, that didn't, uh, repeat, what of a quarter. And so, when you, we had to bring more development on a platform, uh, which we did, we added 100s of of customers, um, over the, those are new customers and, and we are still learning with them. And so, the, uh, there was a little bit of sense in, in the, in the podcast, in terms of the speed at which they, they would ramp up. Um, so if you exclude, you know, that that 1 that have come. Um, uh, the business is absolutely ripping. Um,

um, so, uh

Emily Leproust: At the time when we've crossed the initial threshold of 50% gross margin for business. Now it's really time for us to put the foot on the gas in terms of commercial execution. Let's just go find all those new customers that are not yet Twist Bioscience customers because we know that once they're on the platform, they're very happy, and they are very sticky with the potential to create growth. Overall, that platform with the hundreds of applications and thousands of customers is going to give us a resilience and growth.

Overall, uh, the business is doing really, really well. Um, and that is before the, the full introduction of of the NPI roadmap that we have. So overall, I think the, um, the the future opportunity in some bio um, is, is brighter than than ever and it happens every time where, um, we have a growth margin, um, a contribution amount for single is very close to, to, to NGS. Um, and at the time when we we we've crossed the the initial threshold of of 50% growth model for business. And so now 3 time to force to uh to put the the foot on the gas in terms of of commercial execution.

And then just um go uh, find all those increasing levels that are not, not yet with with customer because we know that once they're on the platform and they're very happy. Uh, they are very easy, uh, with the potential to create to create for food, um, overall, um, um, that that platform with the hundreds of applications and thousands of customers is going to, to give us a resilience and go.

Operator: Thank you. I show no further questions at this time. I would now like to turn the call back over to Emily Leproust for closing remarks.

Thank you. I show no further questions at this time, I would now like to turn the call back over to Emily for closing remarks.

Emily Leproust: At Twist Bioscience, we turn complexity into opportunity. With a strong platform, a disciplined discussion, and a relentless focus on customer-driven innovation, we are building high-value products that scale with margin. With gross margins that are consistently above 60% and adjusted EBITDA break-even in sight, we are operating from a position of strength. We are well positioned to accelerate growth, deliver impact, and to create lasting value. Thank you.

I think we done complexity into opportunity with a strong platform discipline description, and a Relentless focus on customer Innovation. We are building high value products at scale with margin.

With close, margins are consistently over. 50%, and I receive it in place. We operating from traditional strength. Well, well, positioned to accelerate growth digital impact and to create lasting space. Thank you.

Operator: This concludes today's conference call. Thank you for participating, and you may now disconnect.

this concludes today's conference call, thank you for participating and you may now disconnect