Twist Bioscience Corp (TWST) Q1 2025 Earnings Analysis: Strong Revenue Beat with Improving Margins

Summary

Twist Bioscience delivered a strong first quarter of fiscal 2025, beating revenue estimates with $88.7M against $86.94M expected, marking their 8th consecutive quarter of sequential growth. The company showed significant improvement in gross margins and reduced losses, while providing positive guidance updates for the full fiscal year.

Financial Performance

Revenue

• Q1 Revenue: $88.7M vs. $86.94M estimated (Beat)
• Year-over-Year Growth: 24% (from $71.5M in Q1 FY24)
• Key Revenue Drivers:
  • SynBio revenue grew 28% to $34.4M
  • NGS revenue increased 23% to $48.6M
  • Biopharma revenue reached $5.7M

Profitability Metrics

• Adjusted EPS: -$0.53 vs. -$0.62 estimated (Beat)
• Net Loss: $31.6M (improved from -$43.0M year-over-year)
• Operating Margin: 48.3% (improved 7.8 points from 40.5% in Q1 FY24)
• Key Profitability Factors:
  • Improved gross margins
  • Reduced R&D expenses ($21.3M vs. $23.1M year-over-year)
  • Better operational efficiency

Operational Highlights

• Shipped products to 2,376 customers (up from 2,140 in Q1 FY24)
• Delivered approximately 205,000 genes (increased from 171,000 year-over-year)
• Strong cash position of $270.8M in cash and short-term investments
• Continued progress toward adjusted EBITDA breakeven

Forward Outlook

Near-Term Guidance (Q2)

• Revenue Guidance: $91M-$93M vs. $92.12M estimated (In-line)
• Management expects sequential improvements in adjusted EBITDA throughout 2025
• Projected continued margin improvements

Full-Year Fiscal 2025 Outlook

• Updated Revenue Target: $372M-$379M vs. $372.96M estimated (Positive)
• Gross margin projected to reach over 50% by Q4 FY25
• Improved adjusted EBITDA guidance to -$55M to -$60M
• Strategic focus on sustainable growth and profitability

Investment Implications

The Q1 results demonstrate strong execution and improving fundamentals:

• Revenue growth and margin expansion show operational strength
• Better-than-expected EPS indicates improving cost management
• Raised full-year guidance suggests management confidence
• Strong cash position provides operational flexibility

However, investors should note:

• Company still operating at a loss
• Continued need for operational efficiency improvements
• Market conditions and competition remain challenging factors

Long-term investors may find the improving fundamentals and progress toward profitability attractive, while shorter-term traders should monitor quarterly execution against guidance targets.

Additional Resources

View Full TWST Earnings Report

View TWST Stock Chart

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. All trading and investment decisions should be made based on your own research, experience, and risk tolerance.