Twist Bioscience (TWST, Financial) and Element Biosciences are enhancing their partnership by integrating additional Twist library preparation and target enrichment workflows into Element’s AVITI systems and Trinity flowcells. As part of this collaboration, Twist has been named the exclusive partner for these workflows, which are designed to be compatible with Element's Trinity sequencing technology.
The two companies are also planning to collaborate on commercial and promotional efforts to broaden the accessibility of these advanced sequencing tools for customers. This strategic partnership aims to leverage the strengths of both companies in developing next-generation sequencing solutions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for Twist Bioscience Corp (TWST, Financial) is $50.92 with a high estimate of $62.00 and a low estimate of $40.00. The average target implies an upside of 78.87% from the current price of $28.47. More detailed estimate data can be found on the Twist Bioscience Corp (TWST) Forecast page.
Based on the consensus recommendation from 13 brokerage firms, Twist Bioscience Corp's (TWST, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Twist Bioscience Corp (TWST, Financial) in one year is $54.86, suggesting a upside of 92.69% from the current price of $28.47. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Twist Bioscience Corp (TWST) Summary page.
TWST Key Business Developments
Release Date: May 05, 2025
- Revenue: $92.8 million, an increase of 23% year over year and 4.6% sequentially.
- Gross Margin: 49.6%, up from 41% in the second quarter of fiscal 2021.
- SynBio Revenue: $36 million, a growth of 21% year over year.
- NGS Revenue: $51.1 million, an increase of 25% year over year.
- Biopharma Services Revenue: $5.7 million, a growth of 21% year over year.
- Adjusted EBITDA Loss: Approximately $14.8 million, an improvement of about $11.9 million versus the second quarter of fiscal 2024.
- Cash, Cash Equivalents, and Short-term Investments: Approximately $257.1 million.
- Operating Expenses: Approximately $87.6 million, driven by a $5.5 million increase in noncash stock-based compensation.
- Guidance for Fiscal 2025 Revenue: $372 million to $379 million, indicating growth of approximately 20% at the midpoint year over year.
- Guidance for Q3 Fiscal 2025 Revenue: $94 million to $97 million, growth of approximately 17% versus Q3 of fiscal '24 at the midpoint.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Twist Bioscience Corp (TWST, Financial) reported a record revenue of $92.8 million for the second quarter of fiscal 2025, marking a 23% increase year over year.
- The company achieved a gross margin of 49.6%, surpassing expectations and demonstrating effective cost management and process improvements.
- Twist Bioscience Corp (TWST) successfully spun out its DNA Data Storage business into a new company, Atlas Data Storage, securing a significant $155 million investment to accelerate commercialization.
- The SynBio segment saw a revenue increase to $36 million, growing 21% year over year, supported by innovative customer programs like the Twist Wallet.
- The NGS segment reported $51.1 million in revenue, a 25% increase year over year, with strong adoption in the AgBio space and potential for future growth in the $500 million market.
Negative Points
- Despite improvements, Twist Bioscience Corp (TWST) reported an adjusted EBITDA loss of approximately $14.8 million for the second quarter of fiscal 2025.
- Operating expenses increased to $87.6 million, driven by a $5.5 million rise in noncash stock-based compensation.
- The company faces uncertainties related to tariffs and potential impacts on its supply chain, although it expects minimal effects.
- The academic market, while showing growth, is under pressure due to funding constraints, which could impact future revenue.
- Twist Bioscience Corp (TWST) is still working towards adjusted EBITDA breakeven, with a target set for the end of fiscal 2026, indicating ongoing financial challenges.
