A maker of synthetic DNA, Twist Bioscience writes custom genes and gene fragments on tiny silicon chips, shrinking the synthesis process dramatically. Its tools help researchers and drug developers discover and optimize antibodies, while its NGS products—target enrichment probes, library prep kits, and synthetic controls—are used in diagnostic tests for cancer, rare disease, and infectious disease. The company serves over 3,800 customers worldwide.
Q3 FY2026 revenue rose 23% to $118.4M while operating loss widened to $36.3M on higher SG&A.
SG&A climbed 27% and pulled the wider even as grew. Revenue rose 23% to $118.4M in Q3 FY2026 and was 52.8%, driven by 39% growth in DNA synthesis and protein solutions, while operating loss widened to $36.3M from $29.9M a year earlier. The company is growing but still losing money and has opened a $200M equity program as cash declines.
Key takeaways
SG&A expenses rose 27% to $80.7M in Q3, reflecting headcount additions and infrastructure investments, and drove the to widen 20.5% to $36.3M.
rose 23% to $118.4M in Q3 and 20% to $332.8M for the nine months, led by DNA synthesis and protein solutions up 39% and 31%.
declined 0.6 points to 52.8% in Q3 due to customer mix, while nine-month gross margin improved 1.6 points to 52.1% on volume and process savings.
Section summaries
Management's Discussion and Analysis
Revenue grew 23% to $118.4M in Q3 FY2026, driven by DNA synthesis and protein solutions, while operating loss widened to $36.3M on higher SG&A.
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Total rose 23% to $118.4M in Q3 and 20% to $332.8M in the first nine months, led by 39% and 31% growth in DNA synthesis and protein solutions.
Q3 declined 0.6pp to 52.8% due to customer mix, while nine-month gross margin improved 1.6pp to 52.1% on higher volume and process improvements.
A $7.2M contributed to a $115.0M for the nine-month period.
Cash used in operations rose to $41.3M for the nine months; the company held $166.8M in cash and short-term investments and established a $200M .
What changed
Q3 FY2026 came in at 52.8%, down 0.6 points from 53.4% in Q3 FY2025, as customer mix offset volume gains — the prior flag of margin trajectory from 53.4% is settled by the dip.
rose 23% to $118.4M against the $96.1M Q3 FY2025 base, holding near the 19% Q2 pace and above the 17% Q1 pace, answering the flag of whether growth fades toward 17%.
Cash plus short-term investments fell to $166.8M from $197.9M at the Q2 end, continuing the outflow the flags tracked from $232.4M at FY2025 year-end.
The XOMA agreement yielded no recognized milestone or royalty income this quarter, leaving the flagged item open.
SG&A's rise continued — up 27% to $80.7M in Q3 after the 24% Q1 increase to $69.7M — confirming the flag that the commercial scaling would keep pressuring the .
The $7.2M litigation settlement from Q2 led to no further stated legal costs this quarter, but the charge added to the nine-month as the prior flag warned.
What to watch
Q4 FY2026 against the $118.4M base to see if growth holds near 23% or fades toward the 20% nine-month pace.
Next quarter from 52.8% as customer mix and Wilsonville scale with volume.
Cash balance from $166.8M given the $41.3M nine-month operating outflow and draws under the $200M .
Whether the XOMA agreement produces recognized milestone or royalty income in a future period.
SG&A expenses jumped 27% in Q3 to $80.7M and 24% in the nine-month period to $226.5M, reflecting headcount additions and infrastructure investments.
increased 20.5% to $36.3M in Q3, and a $7.2M litigation settlement charge contributed to a $115.0M operating loss for the nine-month period.
Cash used in operations rose to $41.3M for the nine months; the company held $166.8M in cash and short-term investments and established a $200M at-the-market equity program.
Quantitative and Qualitative Disclosures About Market Risk
Information about our market risk is presented in Part II, Item 7A “Quantitative and Qualitative Disclosures about Market Risk” of our Annual Report on Form 10-K. Our exposure to market risk has not changed materially since September 30, 2025.
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Information about our market risk is presented in Part II, Item 7A “Quantitative and Qualitative Disclosures about Market Risk” of our Annual Report on Form 10-K. Our exposure to market risk has not changed materially since September 30, 2025.
For a description of material pending legal proceedings, see Note 11 “Commitments and Contingencies - Legal Proceedings” of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q. In addition, we are subject to various legal proceed…
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For a description of material pending legal proceedings, see Note 11 “Commitments and Contingencies - Legal Proceedings” of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q. In addition, we are subject to various legal proceedings and claims arising in the ordinary course of business. Although occasional adverse decisions or settlements may occur, management believes that the final disposition of such matters will not have a material adverse effect on our business, financial position, results of operations or cash flows.
In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the risk factors and other cautionary statements described under the heading “Item 1A. Risk Factors” included in our Annual Report on Form 10-K filed with the SEC…
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In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the risk factors and other cautionary statements described under the heading “Item 1A. Risk Factors” included in our Annual Report on Form 10-K filed with the SEC on November 17, 2025, which could materially affect our business, financial condition or future results. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition or future results. There have been no material changes in our risk factors from those described in our Annual Report on Form 10-K. We may disclose changes to risk factors or additional risk factors from time to time in our future filings with the SEC.