May 4th, 2026

The call presented a predominantly positive operational and commercial story: strong top-line growth (19% YoY), robust outperformance in therapeutics (55% YoY), gross margin above 50%, strategic partnerships (AWS) and an explicit path to adjusted EBITDA breakeven in Q4 FY2026. Offsetting these positives are ongoing adjusted EBITDA losses, higher operating expenses tied to strategic investments, a reduction in cash balances, a pending litigation settlement and certain end-market pressures (academic funding headwinds and some segment declines). Management provided clear remediation steps (cost reductions, targeted automation, acceptance-rate improvements) and raised full-year guidance, indicating confidence in execution.

Company Guidance

Twist guided fiscal 2026 revenue of $442–447 million (growth ~17–19%) and Q3 revenue of $114–115 million (≈19% YoY at the midpoint), said NGS will drive H2 sequential growth and return to ~20% growth by Q4, and reiterated a target of adjusted‑EBITDA breakeven in Q4 FY2026. They expect full‑year gross margin of ~52%+ (Q2 was 51.6%), cited a 75–80% average incremental gross‑margin drop‑through on new revenue, and plan approximately $6 million of sequential OpEx improvement in Q4 from cost actions; Q2 adjusted EBITDA was a loss of ~$13.3 million (an improvement of ~$1.5M YoY). Cash was $171.7 million at quarter end (versus $197.9M at 12/31/25); Q2 used $17.6M in operating cash, spent $7.9M in CapEx and $5.0M on the Invenra license, and recorded $7.2M of litigation settlement costs as part of a ~$17.1M class‑action resolution expected to be largely insurance‑covered.