Twist Bioscience Corp

Previous 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.

Current wording

At the core of our platform is a differentiated method of manufacturing synthetic DNA by “writing” DNA on a silicon chip. By integrating proprietary hardware, software, and scalable infrastructure, including our e-commerce platform, we achieve high levels of precision, automation, and throughput at a lower cost relative to legacy methods.

Previous wording

We generate revenue through our DNA synthesis and protein solutions as well as our NGS applications. As we have moved further up the value chain from fragments to genes to preps to proteins and beyond, the strategic connection between what we previously described as our "synthetic biology" portfolio and "biopharma services" tightens. Beginning fiscal 2026, we combined revenue from synthetic biology tools and biopharma services into a new category called DNA synthesis and protein solutions. Additionally, we renamed NGS tools to NGS applications to better reflect their role in DNA sequencing workflows.

Current wording

We generate revenue primarily from DNA synthesis and protein solutions and NGS applications. As we have expanded from DNA fragments to genes, sample preparation, protein expression, and biologics discovery, the integration of our offerings has strengthened. Beginning in fiscal 2026, we combined synthetic biology tools and biopharma services into a single category, DNA synthesis and protein solutions, and renamed NGS tools to NGS applications to reflect their role in sequencing workflows.

Previous 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.

Current wording

Since our inception, we have incurred net losses each year. Our net loss for the three and six months ended March 31, 2026 was $44.0 million and $74.5 million, respectively. As of March 31, 2026, we have an accumulated net deficit of $1,394.1 million and cash, cash equivalents and short-term investments of $171.7 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 therapeutics, diagnostics, industry and applied, academic research and government, and global supply partners revenue industries as well as leveraging our investment in our manufacturing infrastructure.

Previous wording

•Gross margin increased to 52.0% from 48.3% primarily due to increases in revenues and driving additional cost savings through continuous process improvement initiatives;

Current wording

•For the three and six months ended March 31, 2026, gross margin increased to 51.6% from 49.6% and to 51.8% from 49.0%, respectively, primarily due to increases in revenues and driving additional cost savings through continuous process improvement initiatives.

Previous wording

•Loss from operations decreased to $32.9 million from $34.6 million primarily due to an increase in both revenues and gross profit. Additionally, contributing factors were a decrease in research and development expenses, offset by an increase in selling, general and administrative expenses for the three months ended December 31, 2025;

Current wording

•For the three and six months ended March 31, 2026, loss from operations increased 10.4% to $45.9 million and 3.4% to $78.8 million primarily due to an increase in selling, general and administrative expenses and litigation settlement costs, net of recoveries, offset by increases in both revenues and gross profit and a decrease in research and development expenses.

Previous wording

Comparison of the Three Months Ended December 31, 2025 and 2024

Current wording

Comparison of the Three and Six Months Ended March 31, 2026 and 2025

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 primarily 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 DNA synthesis and protein solutions and NGS applications 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

We historically reported revenue by industrial chemicals/materials, academic research, healthcare, and food/agriculture. Beginning fiscal 2026, we will disclose revenue by therapeutics, diagnostics, industry and applied, academic research and government, and global supply partners revenue. These updated categories better align with our operations and increase clarity around our key customer groups. The table below summarizes revenues by industry:

Current wording

We historically reported revenue by industrial chemicals/materials, academic research, healthcare, and food/agriculture. Beginning fiscal 2026, we disclose revenue by therapeutics, diagnostics, industry and applied, academic research and government, and global supply partners revenue. These updated categories better align with our operations and increase clarity around our key customer groups. The table below summarizes revenues by industry:

Previous 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.

Current wording

The number of customers who purchased products from us was approximately 2,583 and 2,431 customers for the three months ended March 31, 2026 and March 31, 2025, respectively.

Previous 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%.

Current wording

Revenues increased 19% to $110.7 million for the three months ended March 31, 2026, as compared to $92.8 million for the three months ended March 31, 2025. The increase in revenues primarily reflects growth in DNA synthesis and protein solutions revenue of 28% and growth in NGS applications revenue of 12%, both of which are primarily attributable to an increase in revenues from our customers in therapeutics, diagnostics, academic research and government industries, as well as an increase in the number of customers. The number of genes shipped in the three months ended March 31, 2026, increased to approximately 300,000 genes, compared to approximately 227,000 genes in the three months ended March 31, 2025, an increase of 32%.

Previous 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.

Current wording

Cost of revenues increased 15% to $53.6 million for the three months ended March 31, 2026, as compared to $46.8 million for the three months ended March 31, 2025. The increase is primarily attributable to an increase in material costs of $6.3 million driven by increased sales and a $0.7 million increase in personnel costs. Gross margin increased 2.0% to 51.6% for the three months ended March 31, 2026, as compared to 49.6% in the same period of the prior year, mainly due to an increase in revenues and driving additional cost savings through continuous process improvement initiatives.

Previous wording

Research and development expenses decreased 20% to $17.1 million for the three months ended December 31, 2025, as compared to $21.3 million for the three months ended December 31, 2024. The decrease is primarily driven by a $2.6 million decrease in personnel costs, including a $1.1 million decrease in stock-based compensation expenses, a $0.9 million decrease in outside services costs, and a $0.6 million decrease in costs for facilities and depreciation and amortization. These decreases are largely attributable to the sale of our DNA digital data storage business in fiscal year 2025.

Current wording

Research and development expenses decreased 18% to $19.7 million for the three months ended March 31, 2026, as compared to $23.9 million for the three months ended March 31, 2025. The decrease is primarily driven by a $2.0 million decrease in personnel costs, including a $1.4 million decrease in stock-based compensation expenses, a $1.2 million decrease in professional services costs, and a $0.9 million decrease in costs for facilities and depreciation and amortization. These decreases are largely attributable to the sale of our DNA data storage business in fiscal year 2025.

Previous wording

Selling, general and administrative expenses increased 24% to $69.7 million for the three months ended December 31, 2025, as compared to $56.2 million for the three months ended December 31, 2024. The increase is primarily attributable to a $7.7 million increase in personnel costs, including a $2.4 million increase in stock-based compensation expense, and a $5.4 million increase in outside services costs as we continue to scale our commercial organization and invest into our corporate infrastructure.

Current wording

Selling, general and administrative expenses increased 22% to $145.8 million for the six months ended March 31, 2026, as compared to $119.8 million for the six months ended March 31, 2025. The increase is primarily attributable to a $15.9 million increase in personnel costs, including a $2.7 million increase in stock-based compensation expense, and a $5.0 million increase in IT services, a $2.3 million increase in marketing costs, and a $4.6 million increase in other costs. These increases were partially offset by a $1.8 million decrease in professional services costs. The increase in selling, general and administrative expenses reflect headcount additions and investments in our commercial organization and corporate infrastructure to support the continued growth of the business.

Previous 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.

Current wording

Interest income decreased 39% to $1.7 million for the three months ended March 31, 2026, as compared to $2.8 million for the three months ended March 31, 2025, due to lower cash equivalents and short-term investments balances and lower interest rates.

Previous 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.

Current wording

We recorded an income tax provision of less than $0.1 million and $0.2 million for the three months ended March 31, 2026 and March 31, 2025, respectively. We recorded an income tax provision of $0.3 million and $0.3 million for the six months ended March 31, 2026 and March 31, 2025, 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, 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.

Current wording

Since our inception, we have financed our operations and capital expenditures 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 data storage assets and revenue from our commercial operations.

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, including facilities costs and capital expenditures. We had $12.9 million in commitments for capital expenditures as of December 31, 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 $15.7 million in commitments for capital expenditures as of March 31, 2026.

Previous 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.

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 March 31, 2026, our operating lease liability was $95.8 million. See Note 10, 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

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.

Current wording

Net cash used in operating activities was $42.4 million during the six months ended March 31, 2026, which was primarily due to a net loss of $74.5 million, adjusted for non-cash items, including depreciation and amortization of $12.6 million, stock-based compensation expense of $32.2 million, and a net cash outflow from operating assets and liabilities of $11.8 million. The net cash outflow from operating assets and liabilities was mainly due to increases in inventories of $5.2 million, accounts receivable of $7.4 million due to the increase in revenues and the timing of collections, and prepaid and other current assets of $18.9 million, and a decrease in accrued compensation of $4.3 million, partially offset by an increase in accrued and other liabilities of $22.8 million. The changes in accrued compensation, accrued expenses and other liabilities, and accounts payable are due to timing of payments to vendors and employees.

Previous 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.

Current wording

Net cash used in operating activities was $34.4 million during the six months ended March 31, 2025 primarily due to a net loss of $70.9 million adjusted for non-cash items including depreciation and amortization expense of $12.8 million, stock-based compensation expense of $32.3 million and a net cash outflow from operating assets and liabilities of $9.4 million. The net cash outflow from operating assets and liabilities was mainly due to an increase in accounts receivable of $15.3 million due to timing of collections, a decrease in accrued compensation of $8.7 million offset by decreases in inventories of $3.2 million, increases in accrued expenses of $3.3 million, accounts payable of $6.4 million and other liabilities of $1.3 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 $9.9 million during the three months ended December 31, 2025, which consisted of the purchases of property and equipment of $10.0 million.

Current wording

Net cash used in investing activities was $22.6 million during the six months ended March 31, 2026, which consisted of the purchases of property and equipment of $17.9 million and cash paid for asset acquisition of $5.0 million.

Previous 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.

Current wording

Net cash used in investing activities was $3.0 million during the six months ended March 31, 2025, which consisted of the purchases of property and equipment of $6.4 million offset by the proceeds from the net impact of purchases and maturity of investments of $3.5 million.

Previous wording

Net cash provided by financing activities was $0.3 million in the three months ended December 31, 2025, which consisted of $0.3 million from the exercise of stock options.

Current wording

Net cash provided by financing activities was $4.4 million in the six months ended March 31, 2026, which consisted of $2.1 million from the exercise of stock options and $2.4 million proceeds from issuance of shares under the ESPP.

Previous 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.

Current wording

Net cash provided by financing activities was $21.1 million in the six months ended March 31, 2025, which consisted of $15.0 million from XOMA for the sale of future revenue, $3.7 million from the exercise of stock options and $2.4 million proceeds from issuance of shares under the ESPP.

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 three months ended December 31, 2025.

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 six months ended March 31, 2026.

Previous wording

For a description of accounting changes and recent accounting pronouncements, including the expected dates of adoption and estimated effects, if any, on our condensed consolidated financial statements, see Note 2, “Summary of Significant Accounting Policies” in Item 1 of Part I of this Form 10-Q.

Current wording

For a description of accounting changes and recently issued accounting pronouncements, including the expected dates of adoption and estimated effects, if any, on our condensed consolidated financial statements, see Note 2, “Summary of Significant Accounting Policies” in Item 1 of Part I of this Form 10-Q.