Twist Bioscience Corp

Previous wording

We are a leading, rapidly growing synthetic biology company that has developed a disruptive DNA synthesis platform to industrialize the engineering of biology. The core of our platform is a proprietary technology that pioneers a new method of manufacturing synthetic DNA by “writing” DNA on a silicon chip. We have combined our silicon-based DNA writing technology with proprietary software, scalable commercial infrastructure and an e-commerce platform to create an integrated technology platform that enables us to achieve high levels of quality, precision, automation, and manufacturing throughput at a significantly lower cost than our competitors. We have applied our unique technology to manufacture a broad range of synthetic DNA-based products, including synthetic genes, tools for next generation sequencing, or NGS, sample preparation, and antibody libraries for drug discovery and development, all designed to enable our customers to conduct research more efficiently and effectively. Leveraging our same technology, we have expanded our footprint beyond DNA synthesis to manufacture synthetic RNA as well as antibody proteins to disrupt and innovate within larger market opportunities, in addition to discovery partnerships for biologic drugs.

Current wording

We offer customizable solutions across the biological continuum. We have developed a disruptive DNA synthesis platform to industrialize the engineering of biology. The core of our platform is a proprietary technology that pioneers a new method of manufacturing synthetic DNA by “writing” DNA on a silicon chip. We have combined our silicon-based DNA writing technology with proprietary software, scalable commercial infrastructure and an e-commerce platform to create an integrated technology platform that enables us to achieve high levels of quality, precision, automation, and manufacturing throughput at a significantly lower cost than our competitors. We have applied our unique technology to manufacture a broad range of synthetic DNA-based products, including synthetic genes, tools for next generation sequencing, or NGS, sample preparation, and antibody libraries for drug discovery and development, all designed to enable our customers to conduct research more efficiently and effectively. Leveraging our same technology, we have expanded our footprint beyond DNA synthesis to manufacture synthetic RNA as well as express antibody proteins and conduct many diverse assays to characterize these proteins. We have further expanded our offering to deliver data from the characterization of antibody proteins to our customers and partners.

Previous wording

We believe our products enable a broad range of applications that may ultimately improve health and the sustainability of the planet across multiple industries including healthcare, chemicals/materials, food/agriculture, and academic research. We sell our synthetic DNA and synthetic DNA-based products to a customer base of approximately 3,562 customers annually across a broad range of industries. In order to address this diverse customer base, we employ a multi-channel strategy comprised of a direct sales force targeting synthetic DNA customers, a direct sales force focusing on the NGS market and an e-commerce platform that serves both commercial channels. We employ business development and sales representatives for our biopharma solutions as well. Our easy-to-use e-commerce platform allows customers to design, validate and place on-demand orders of customized DNA online, and enables them to receive real-time customized quotes for their products and track their order status through the manufacturing and delivery process. This is a critical part of our strategy to address our large markets and diverse customer base, as well as drive commercial productivity, enhance the customer experience, and promote loyalty.

Current wording

We believe our products enable a broad range of applications that may ultimately improve health and the sustainability of the planet across multiple industries including therapeutics, diagnostics, industry and applied, academic research and government, and global supply partners revenue. We sell our synthetic DNA and synthetic DNA-based products to a customer base of more than 3,800 customers annually across a broad range of industries. In order to address this diverse customer base, we employ a multi-channel strategy comprised of a direct sales force targeting synthetic DNA customers, a direct sales force focusing on the NGS market and an e-commerce platform that serves both commercial channels. We employ business development and sales representatives for our protein solutions and biologics discovery service offering. Our easy-to-use e-commerce platform allows customers to design, validate and place on-demand orders of customized DNA online, and enables them to receive real-time customized quotes for their products and track their order status through the manufacturing and delivery process. This is a critical part of our strategy to address our large markets and diverse customer base, as well as drive commercial productivity, enhance the customer experience, and promote loyalty.

Previous wording

Since our inception, we have incurred net losses each year. Our net income for the three months ended June 30, 2025 was $20.4 million due to sale of DNA Data Storage business compared to net loss of $85.6 million, which included impairment of long-lived assets of $44.9 million for the three months ended June 30, 2024. As of June 30, 2025, we have accumulated net deficit of $1,292.4 million and cash, cash equivalents and short-term investments of $250.8 million. Our ability to generate product revenue sufficient to achieve profitability will depend heavily on the success of our existing products and the development and commercialization of additional products in the synthetic biology and biologic drug industries as well as leveraging our investment in our manufacturing facility in Wilsonville, Oregon.

Current wording

Since our inception, we have incurred net losses each year. Our net loss for the three months ended December 31, 2025 was $30.5 million compared to a net loss of $31.6 million for the three months ended December 31, 2024. As of December 31, 2025, we have accumulated net deficit of $1,350.1 million and cash, cash equivalents and short-term investments of $197.9 million. Our ability to generate product revenue sufficient to achieve profitability will depend heavily on the success of our existing products and the development and commercialization of additional products in the synthetic biology and biologic drug industries as well as leveraging our investment in our manufacturing facility in Wilsonville, Oregon.

Previous wording

•Increase in revenues of 18% to $96.1 million from $81.5 million, primarily due to growth in NGS tools and synthetic genes revenues;

Current wording

•Revenues growth of 16.9% to $103.7 million from $88.7 million, primarily due to growth in NGS Applications and DNA Synthesis and Protein Solutions revenues;

Previous wording

We have one reportable segment from the manufacturing of synthetic DNA products. The following table shows our revenues by geography, based on our customers’ shipping addresses. Americas consists of United States, Canada, Mexico and South America; EMEA consists of Europe, Middle East and Africa; and APAC consists of Japan, China, South Korea, India, Singapore, Malaysia, Australia, New Zealand, Thailand and Taiwan.

Current wording

We have one reportable segment from the manufacturing of synthetic DNA products. The following table shows our revenues by geography, based on our customers’ shipping addresses. Americas consists of United States, Canada, Mexico and South America; EMEA consists of Europe, Middle East and Africa; and APAC primarily consists of Japan, China, South Korea, India, Singapore, Malaysia, Australia, New Zealand, Thailand and Taiwan.

Previous wording

The number of customers who purchased products from us were approximately 2,484 and 2,300 customers for the three months ended June 30, 2025 and 2024, respectively.

Current wording

The number of customers who purchased products from us were approximately 2,538 and 2,376 customers for the three months ended December 31, 2025 and 2024, respectively.

Previous wording

Revenues increased 18% to $96.1 million for the three months ended June 30, 2025, as compared to $81.5 million for the three months ended June 30, 2024. The increase in revenues primarily reflects growth in NGS tools revenue of $11.9 million and growth in synthetic genes revenue of $2.7 million, which is primarily attributable to increase in revenues from our customers in the healthcare and academic research industries and an increase in the number of customers. The number of our genes shipped in the three months ended June 30, 2025 increased to approximately 237,000 genes compared to approximately 212,000 genes in the three months ended June 30, 2024, an increase of 12%.

Current wording

Revenues increased 16.9% to $103.7 million for the three months ended December 31, 2025, as compared to $88.7 million for the three months ended December 31, 2024. The increase in revenues primarily reflects growth in NGS Applications revenue of 8.2% and growth in DNA Synthesis and Protein Solutions revenue of 27.4%, both of which are primarily attributable to increase in revenues from our customers in therapeutics, global supply partners, and industry and applied industries, primarily driven by an increase in number of customers. The number of genes shipped in the three months ended December 31, 2025, increased to approximately 271,000 genes, compared to approximately 205,000 genes in the three months ended December 31, 2024, an increase of 32.2%.

Previous wording

Cost of revenues increased 3% to $137.4 million for the nine months ended June 30, 2025, as compared to $133.1 million for the nine months ended June 30, 2024. The increase is primarily attributable to increases in material costs of $7.3 million due to higher sales volume, stock-based compensation expense of $2.3 million and production overheads costs including facilities, IT services, and laboratory supplies of $0.8 million. The increase was partially offset by decreases in depreciation and amortization expense of $4.4 million due to impairment of long-lived assets in fiscal year 2024 and outside services costs of $1.7 million. Gross margin increased 8.8% to 50.5% for the nine months ended June 30, 2025, as compared to 41.7% for the nine months ended June 30, 2024, mainly due to increase in revenues and holding manufacturing costs relatively flat and driving additional cost savings through continuous process improvement..

Current wording

Cost of revenues increased 8% to $49.7 million for the three months ended December 31, 2025, as compared to $45.9 million for the three months ended December 31, 2024. The increase is primarily attributable to an increase in material costs of $2.7 million driven by increased sales and a $1.4 million increase in personnel costs. Gross margin increased 3.7% to 52.0% for the three months ended December 31, 2025, as compared to 48.3% in the same period of the prior year, mainly due to increase in revenues and driving additional cost savings through continuous process improvement initiatives.

Previous wording

Interest income decreased 27% to $2.7 million for the three months ended June 30, 2025, as compared to $3.7 million for the three months ended June 30, 2024, due to lower cash equivalents and short-term investments balance.

Current wording

Interest income decreased 33% to $2.2 million for the three months ended December 31, 2025, as compared to $3.2 million for the three months ended December 31, 2024, due to lower cash equivalents and short-term investments balances and lower interest rates.

Previous wording

We recorded an income tax provision of $0.2 million and $0.2 million for the three months ended June 30, 2025 and June 30, 2024, respectively.

Current wording

We recorded an income tax provision of $0.3 million and $0.1 million for the three months ended December 31, 2025 and December 31, 2024, respectively.

Previous wording

To date, we have financed our operations principally through public equity raises, private placements of our convertible preferred stock, borrowings from credit facilities and revenue from our commercial operations. At June 30, 2025, we had a balance of $201.4 million of cash and cash equivalents and $49.4 million in short-term investments.

Current wording

To date, we have financed our operations principally through public equity raises, private placements of our convertible preferred stock, borrowings from credit facilities, proceeds from the royalty purchase agreement, sale of DNA digital data storage assets and revenue from our commercial operations. At December 31, 2025, we had a balance of $148.6 million of cash and cash equivalents and $49.4 million in short-term investments.

Previous wording

Our primary uses of capital are, and we expect will continue to be for the near future, compensation and related expenses, manufacturing costs, laboratory and related supplies, legal and other regulatory expenses and general overhead costs and capital expenditures. We had $10.3 million in commitments for capital expenditures as of June 30, 2025.

Current wording

Our primary uses of capital are, and we expect will continue to be for the near future, compensation and related expenses, manufacturing costs, laboratory and related supplies, legal and other regulatory expenses and general overhead costs, including facilities costs and capital expenditures. We had $12.9 million in commitments for capital expenditures as of December 31, 2025.

Previous wording

Net cash used in operating activities was $35.8 million during the nine months ended June 30, 2025 primarily due to a net loss of $50.5 million adjusted for non-cash items including depreciation and amortization expense of $18.8 million, stock-based compensation expense of $48.4 million, gain on sale of business of $48.8 million and a net cash outflow from operating assets and liabilities of $5.6 million. The net cash outflow from operating assets and liabilities was mainly due to an increase in accounts receivable of $15.2 million due to the increase in revenues and the timing of collections, increases in inventories of $1.9 million and prepaid and other current assets of $1.8 million, a decrease in accrued compensation of $4.7 million offset by increases in accounts payable of $9.6 million, other liabilities of $5.5 million and accrued expenses of $3.4 million. The changes in accrued compensation, accrued expenses, and accounts payable are due to timing of payments to vendors and employees.

Current wording

Net cash used in operating activities was $24.8 million during the three months ended December 31, 2025, which was primarily due to a net loss of $30.5 million, adjusted for non-cash items, including depreciation and amortization of $6.2 million, stock-based compensation expense of $13.3 million, and a net cash outflow from operating assets and liabilities of $13.4 million. The net cash outflow from operating assets and liabilities was mainly due to increases in inventories of $4.6 million and prepaid and other current assets of $7.7 million, and a decrease in accrued compensation of $12.4 million, partially offset by increase in accounts receivable of $6.8 million, due to the increase in revenues and the timing of collections, and decreases in accounts payable of $1.5 million, other liabilities of $1.3 million and accrued expenses of $1.5 million. The changes in accrued compensation, accrued expenses, and accounts payable are due to timing of payments to vendors and employees.

Previous wording

Net cash used in operating activities was $48.8 million during the nine months ended June 30, 2024 and consisted primarily of a net loss of $174.1 million adjusted for non-cash items including depreciation and amortization expense of $24.8 million, stock-based compensation expense of $38.6 million, impairment of long-lived assets of $44.9 million and a net change in operating assets and liabilities of $16.6 million. The change in operating assets and liabilities was mainly due to decreases in accounts receivable of $11.4 million due to the timing of collections, inventories of $3.6 million, other non-current assets of $0.5 million, accounts payable of $6.9 million and other liabilities of $1.8 million offset by increases in prepaid expenses of $0.2 million, accrued compensation of $5.9 million and accrued expenses of $4.1 million.

Current wording

Net cash used in operating activities was $21.4 million during the three months ended December 31, 2024, which was primarily due to a net loss of $31.6 million, adjusted for non-cash items, including depreciation and amortization of $6.4 million, stock-based compensation expense of $12.0 million, and a net cash outflow from operating assets and liabilities of $8.2 million. The net cash outflow from operating assets and liabilities was mainly due to an increase in accounts receivable of $4.5 million due to timing of collections, a decrease in accrued compensation of $11.9 million offset by increases in accrued expenses of $3.1 million and accounts payable of $5.7 million. The changes in accrued compensation, accrued expenses, and accounts payable are due to timing of payments to vendors and employees.

Previous wording

Net cash used in investing activities was $12.4 million during the nine months ended June 30, 2025, which consisted of the purchases of property and equipment of $15.6 million offset by the proceeds from the sale of our data storage business of $2.5 million and the net impact of purchases and maturity of investments of $0.7 million.

Current wording

Net cash used in investing activities was $9.9 million during the three months ended December 31, 2025, which consisted of the purchases of property and equipment of $10.0 million.

Previous wording

Net cash used in investing activities was $1.8 million during the nine months ended June 30, 2024, which consisted of the purchases of laboratory property, equipment and computers of $3.1 million offset by the proceeds from the net impact of purchases and maturity of investments of $1.3 million.

Current wording

Net cash used in investing activities was $1.5 million during the three months ended December 31, 2024, which consisted of the purchases of laboratory property, equipment and computers of $2.3 million offset by the proceeds from the net impact of purchases and maturity of investments of $0.7 million.

Previous wording

Net cash provided by financing activities was $23.0 million in the nine months ended June 30, 2025, which consisted of $15.0 million from XOMA for the sale of future revenue, $5.6 million from the exercise of stock options and $2.4 million proceeds from issuance of shares under the ESPP.

Current wording

Net cash provided by financing activities was $17.9 million in the three months ended December 31, 2024, which consisted of $15.0 million from sale of future revenue and $3.0 million from the exercise of stock options.

Previous wording

Our contractual obligations have not materially changed from those reported in our Annual Report on Form 10-K.

Current wording

Our contractual obligations have not materially changed from those reported in our Annual Report on Form 10-K except for lease commitments. As of December 31, 2025, our operating lease liability was $98.1 million. See note 9, Leases of the notes to our condensed consolidated financial statements included elsewhere in this Form 10-Q for information on our operating lease commitments.

Previous wording

The preparation of our Condensed Consolidated Financial Statements in accordance with generally accepted accounting principles in the United States of America requires management to make estimates and judgments that affect the reported amounts in the financial statements and related disclosures. On an ongoing basis, we evaluate our significant accounting policies and estimates. We base our estimates on historical experience and on various market-specific and other relevant assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Estimates are assessed each period and updated to reflect current information. Actual results may differ significantly from these estimates. A summary of our critical accounting policies and estimates is presented in Part II, Item 7 of our Annual Report on Form 10-K. There were no changes to our critical accounting policies and estimates during the nine months ended June 30, 2025 other than the updates to the critical accounting policies and estimates set forth below.

Current wording

The preparation of our Condensed Consolidated Financial Statements in accordance with generally accepted accounting principles in the United States of America requires management to make estimates and judgments that affect the reported amounts in the financial statements and related disclosures. On an ongoing basis, we evaluate our significant accounting policies and estimates. We base our estimates on historical experience and on various market-specific and other relevant assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Estimates are assessed each period and updated to reflect current information. Actual results may differ significantly from these estimates. A summary of our critical accounting policies and estimates is presented in Part II, Item 7 of our Annual Report on Form 10-K. There were no changes to our critical accounting policies and estimates during the three months ended December 31, 2025.