Twist Bioscience Corporation (TWST) is getting closer to that elusive profitability milestone, and investors got a detailed roadmap on Friday showing exactly how the synthetic DNA company plans to get there.

The fourth-quarter results told a familiar story for high-growth biotech: revenue momentum paired with continued losses. Twist posted a loss of 45 cents per share, slightly wider than the consensus estimate of a 43-cent loss. But sales hit $99.01 million, up 17% year over year and comfortably ahead of the $97.32 million analysts expected.

The more interesting narrative is in the trajectory. Adjusted EBITDA losses narrowed to $7.8 million in the quarter, compared to a $17 million loss a year ago. That's the kind of progress that matters when you're telling a story about eventual profitability.

Volume Growth and Margin Expansion

The operational metrics show a company hitting its stride. Twist shipped products to approximately 3,800 customers in fiscal 2025, up from roughly 3,550 the prior year. More impressively, the company shipped approximately 938,000 genes compared to about 772,000 genes a year earlier. That's the kind of volume expansion that helps drive margin improvement.

Speaking of margins, gross margin for the fourth quarter climbed to 51.3%, a significant jump from 45.1% in the year-ago period. Management expects to keep gross margins above 52% throughout fiscal 2026, suggesting the improvement isn't a one-quarter fluke.

Guidance That Turned Heads

Here's where things get interesting. Twist Bioscience expects fiscal 2026 sales of $425 million to $435 million. Consensus was sitting at $374.69 million. That's not a modest beat on guidance—that's a statement.

The forecast breaks down into DNA Synthesis and Protein Solutions revenue of approximately $194 million to $199 million, with NGS Applications bringing in $231 million to $236 million. For the first quarter of fiscal 2026, the company expects sales of $100 million to $101 million, roughly in line with the $100.34 million consensus.

The real headline: Twist expects to achieve adjusted EBITDA breakeven by the fourth quarter of fiscal 2026. That would mark a significant inflection point for a company that's been investing heavily in growth.

CEO and co-founder Emily M. Leproust framed it as entering "a new growth phase," with the goal of maintaining gross margins above 50%, reaching adjusted EBITDA breakeven by Q4, and moving toward sustained profitable growth.

The Bull Case Remains Intact

William Blair analyst Matt Larew remains bullish on the long-term story. He notes that Twist trades at 3.9 times its calendar 2026 sales target, compared to an average of 6.3 times for comparable high-growth life science tools companies.

Larew sees a company with multiple growth levers across distinct markets, creating what he calls "a long runway of 20%-plus growth and a variety of upside shots on goal." The firm maintains an Outperform rating on the stock.

"In our view, the company's efforts to moderate investments as it scales into the FOTF and pushes toward adjusted EBITDA breakeven make sense and should broaden the appeal of the story if the company can execute toward that goal," Larew noted.

Price Action: TWST stock was trading lower by 11.20% to $26.55 at last check Friday.