Twist Bioscience Corporation Q4 2026 Earnings Call Summary Moby Intelligence Thu, November 12, 2026 at 5:15 PM EST 4 min read NVDA TWST Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
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Achieved the milestone of positive adjusted EBITDA in the fourth quarter, providing the company with more options to reinvest profits into growth-driving capabilities and capacity.
Revenue growth was primarily driven by the AI drug discovery segment, which saw a 175% year-over-year increase as customers transitioned from model-building to recurring discovery cycles.
Management attributes their structural advantage in cost and scale to a proprietary silicon-based platform that miniaturizes DNA chemistry by 99.8% compared to traditional methods.
The company is strategically positioning itself as the physical 'build and test' partner for AI-enabled drug discovery, capturing value regardless of which experimental path a customer chooses.
Operational focus has shifted toward 'automating the automation,' increasing throughput and improving turnaround times to stay ahead of exponential demand in personalized medicine.
NGS growth of 24% in the fourth quarter was largely propelled by diagnostic customers, particularly those developing tumor-informed molecular residual disease (MRD) assays.
Fiscal 2027 revenue guidance of $550 million to $560 million assumes $100 million from AI drug discovery, reflecting only programs with a high degree of confidence today.
The company plans to invest approximately $150 million in capital expenditures over the next two years to expand long-term capacity to support more than $1 billion in annual revenue.
Management expects triple-digit percentage order growth for AI drug discovery in fiscal 2027, with momentum accelerating throughout the year as new capacity comes online.
Gross margin expansion in the near term will be partially offset by 2 to 3 points of depreciation headwind as the company builds out infrastructure ahead of anticipated demand.
Strategic initiatives include the expansion of cell-free protein offerings for antibody discovery and the scaling of manufacturing capabilities to capture a larger share of the nucleic acid therapeutics market, specifically for mRNA and siRNA therapies.
Raised approximately $425 million in net proceeds through equity and ATM sales to provide flexibility for capacity expansion and emerging opportunities.
Management flagged that distinguishing AI-specific revenue from traditional pharma will become increasingly difficult as AI programs are integrated into standard biotech workflows.
The company is expanding its complex gene capabilities to accept the vast majority of sequences up to 7 kilobases, addressing previous technical limitations.
A new characterization lab is being added to the Oregon facility to provide a 5x capacity expansion for assays compared to the fiscal 2026 exit rate.
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Management clarified that the $100 million guide is a conservative baseline of high-confidence programs, with significant upside potential as capacity is added.
Growth is contingent on the speed of adding new workflows, such as the recently launched cell-free protein expression, to capture more customer wallet share.
The underlying incremental margin drop-through remains at 75% to 80%, but reported margins will reflect the costs of bringing new capacity online before full utilization.
Management is prioritizing maximizing total gross profit dollars over reaching a specific margin percentage, preferring a larger business at 50% margin over a smaller one at 60%.
Management views internal customer labs as a non-threat, noting that even if customers do their own experimental work, they still require Twist's DNA and protein inputs.
The platform is designed to meet customers at any point in their workflow, whether they buy individual genes or use the full 'DNA-to-data' service.
While currently a medium-to-long-term opportunity with modest revenue, management is positioning Twist to be the primary supplier for personalized cancer vaccines as they move to clinical scale.
The ambition is to bring the economics of the silicon platform to the mRNA market, making personalized manufacturing faster and more affordable.
