Twist Bioscience Corporation (NASDAQ:TWST) shares are down on Monday as the company reported its fiscal 2026 second-quarter financial results.
The life science company reported an adjusted loss of 59 cents, missing the consensus loss of 48 cents.
The sales came in at $110.72 million, beating the consensus of $107.66 million, and the management guidance of $107 million-$108 million.
Management Maintains Profitability Timeline
“We expect to chart toward profitability while simultaneously building on the strong momentum we are seeing across the portfolio. We continue to anticipate achieving adjusted EBITDA breakeven in the fourth quarter of fiscal 2026 while holding gross margin above 52% for the fiscal year,” Emily Leproust, CEO and co-founder of Twist Bioscience.
Segment Growth Driven By AI-Enabled Drug Discovery
DNA Synthesis and Protein Solutions (DSPS) revenue grew 28% to $53.3 million. NGS Applications revenue grew 12% to $57.4 million, due to continued strength in AI-enabled drug discovery.
During its earnings investor call, academic research and government revenue were 12.8 million for the quarter, driven by strength in U.S. accounts.
The company reached a settlement in principle regarding the securities class action for approximately $17.1 million. $7.2 million was booked for litigation settlement costs.
The company shipped products to approximately 2,583 customers in the second quarter of fiscal 2026, up from approximately 2,431 a year ago.
Physically shipped approximately 300,000 genes, up from approximately 227,000 a year ago.
Twist Bioscience raised its fiscal 2026 sales guidance from $435 million-$440 million to $442 million-$447 million compared to the consensus of $439.12 million.
The company expects third-quarter sales of $114 million-$115 million versus the consensus of $111.37 million.
Portfolio Expansion Targets Complex Gene Synthesis
On Monday, Twist Bioscience expanded its clonal genes portfolio with the early access launch of Complex Genes.
The company said the complex synthesis capabilities support the advancement of AI-enabled drug discovery and nucleic acid therapeutics.
TWST Stock Price Activity: Twist Bioscience shares were down 4.21% at $57.86 at the time of publication on Monday, according to Benzinga Pro data.
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