Free cash flow remains deeply negative at -23.1% of revenue, reflecting the ongoing capital intensity of the business as evidenced by capital expenditures consuming 7.1% of revenue in 2026Q2.
| Cash from Operations | -55.59M | -47.63M | -64.09M | -142.47M | -124.39M | -112.24M | -142.25M | -87.94M | -66.16M | -51.3M | -38.59M |
| Operating CF Margin % | - | -12.65% | -20.48% | -58.13% | -61.1% | -84.82% | -157.89% | -161.69% | -260.21% | -476.47% | -1700.84% |
| Operating CF Growth % | 49.92% | 25.69% | 55.01% | -14.54% | -10.82% | 21.1% | -61.77% | -32.91% | -28.97% | -32.93% | - |
| Net Income | -81.28M | -77.67M | -208.73M | -204.62M | -217.86M | -152.1M | -139.93M | -107.67M | -71.24M | -59.31M | -44.09M |
| Depreciation & Amortization | 24.68M | 24.85M | 31.43M | 29.31M | 16.51M | 9.75M | 6.68M | 6.11M | 5.73M | 5.02M | 4.23M |
| Stock-Based Compensation | 64.35M | 64.46M | 50.92M | 30.28M | 79.66M | 37M | 17.1M | 11.17M | 2.96M | 1.89M | 857K |
| Deferred Taxes | 0 | 0 | 0 | -410K | 0 | 0 | -214K | -1.06M | 42K | 768K | -68K |
| Other Non-Cash Items | -48.31M | -46.66M | 46.86M | 3.98M | 2.66M | 2.49M | -707K | 515K | 562K | 458K | 238K |
| Working Capital Changes | -15.03M | -12.61M | 15.41M | -1.01M | -5.36M | -9.38M | -25.18M | 3M | -4.22M | -129K | 240K |
| Change in Receivables | -14.54M | -22.38M | 8.44M | -4.32M | -9.62M | -2.2M | -14.27M | -6.68M | -3.07M | -1.62M | -702K |
| Change in Inventory | -12.65M | -4.23M | 7.99M | 7.24M | -7.54M | -19.49M | -4.96M | -1.3M | -4.2M | -599K | -1.23M |
| Change in Payables | 4.45M | 9.33M | -11.8M | -2.51M | 7.38M | 8.54M | -5.51M | 3.28M | 3.76M | 560K | 466K |
| Cash from Investing | -44.44M | -24.76M | -3.07M | 50.61M | -232.93M | 156.16M | -114.65M | -104.81M | 26.87M | -9.87M | -33.34M |
| Capital Expenditures | -39.45M | -28M | -5.08M | -27.78M | -101.86M | -27.06M | -9.87M | -14.76M | -3.69M | -6.59M | -6.23M |
| CapEx % of Revenue | 9.63% | 7.44% | 1.62% | 11.33% | 50.04% | 20.45% | 10.95% | 27.13% | 14.5% | 61.24% | 274.53% |
| Acquisitions | 2.5M | 2.5M | 0 | 5.86M | -8.16M | -483K | 104.78M | 21K | 17K | 266K | 254K |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -5.1M | 0 | 0 | -5.86M | -5.75M | 0 | -104.78M | -90.05M | -434K | 120K | 174K |
| Cash from Financing | 11.84M | 28.54M | 6.89M | 911K | 270.53M | 329.18M | 303.73M | 158.58M | 88.82M | 63.8M | 69.65M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | -1.56M | -3.33M | -3.33M | -2.5M | 0 | -2M | 7.23M |
| Equity Issued (Net) | 6.26M | 13.54M | -3.98M | -4.41M | 262.07M | 313.01M | 293.14M | 156.21M | 90.85M | 65.6M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -15K | -16K | -3.98M | -4.41M | -7.75M | -10.85M | -2.42M | 0 | 0 | 0 | 0 |
| Other Financing | 5.58M | 15M | 10.87M | 5.32M | 10.02M | 19.5M | 13.92M | 4.87M | -2.03M | 205K | 62.42M |
| Net Change in Cash | -88.09M | -43.27M | -60.15M | -90.98M | -87.1M | 373.11M | 46.85M | -34.14M | 49.53M | 2.63M | -2.29M |
| Free Cash Flow | -95.14M | -75.63M | -69.17M | -170.25M | -226.24M | -139.31M | -152.12M | -102.69M | -69.85M | -57.9M | -44.82M |
| FCF Margin % | -23.23% | -20.08% | -22.1% | -69.46% | -111.14% | -105.27% | -168.84% | -188.83% | -274.72% | -537.71% | -1975.36% |
| FCF Growth % | -45.27% | -9.34% | 59.37% | 24.75% | -62.41% | 8.43% | -48.13% | -47.02% | -20.65% | -29.17% | - |
| FCF per Share | -1.54 | -1.26 | -1.19 | -2.99 | -4.20 | -2.89 | -3.88 | -3.74 | -2.63 | -3.08 | -2.39 |
| FCF Conversion (FCF/Net Income) | 1.17x | 0.61x | 0.31x | 0.70x | 0.57x | 0.74x | 1.02x | 0.82x | 0.93x | 0.86x | 0.88x |
| Interest Paid | 0 | 0 | 0 | 0 | 9K | 167K | 438K | 779K | 751K | 702K | 391K |
| Taxes Paid | -16K | 683K | 344K | 420K | 246K | 101K | 172K | 291K | 179K | 6K | 14K |
Persistent operating cash burn
According to recent quarterly filings, TWST consistently reports negative net income alongside operating cash outflows, with the OCF/NI ratio fluctuating significantly, reaching 0.40 in 2026Q2, which highlights the disconnect between accounting losses and the actual cash required to sustain the company's high-fixed-cost manufacturing operations.
The persistent divergence between net income and operating cash flow suggests that non-cash charges, particularly stock-based compensation, are masking the true extent of the company's cash consumption. Investors should monitor whether the company can narrow this gap as it attempts to scale, as the current reliance on non-cash adjustments to reconcile the bottom line may not be sustainable in a higher-cost capital environment.
As reported in financial statements, the company's free cash flow trajectory remains firmly in negative territory, with a 2026Q2 FCF margin of -23.1%, indicating that the business model has yet to reach the critical mass required to self-fund its ongoing research and development and infrastructure investments.
The consistent negative FCF trajectory underscores the company's status as a growth-stage entity that remains highly dependent on external capital to bridge the gap between its current revenue base and its long-term R&D ambitions. The lack of a clear path to positive FCF suggests that the company may face continued pressure to manage its cash runway carefully until operational efficiencies are fully realized.
Based on the provided data, capital expenditures have trended upward, reaching 7.1% of revenue in 2026Q2, which reflects the ongoing investment in the 'Factory of the Future' and the specialized hardware required to maintain the company's competitive advantage in silicon-based DNA synthesis.
This level of capital intensity is indicative of a company prioritizing long-term capacity expansion over short-term cash preservation. While these investments are necessary to support future growth, they also increase the company's fixed-cost burden, making it imperative that management achieves higher utilization rates to justify the capital deployed.
Analysis of recent quarterly reports shows that working capital changes have been inconsistent, with a notable $13.4M outflow in 2026Q1 followed by a $1.6M inflow in 2026Q2, suggesting that the company's cash position is sensitive to the timing of inventory stocking and customer payment cycles.
The volatility in working capital movements may indicate challenges in managing supply chain efficiency or potential fluctuations in customer demand patterns. Investors should monitor these swings closely, as they can significantly impact the company's short-term liquidity and the accuracy of cash flow forecasting in the near term.
As indicated by the financial data, stock-based compensation remains a substantial non-cash expense, totaling $18.9M in 2026Q2, which effectively masks the true economic cost of talent acquisition and retention while simultaneously diluting existing shareholders to support the company's ongoing operational cash burn.
The reliance on equity-based compensation as a primary tool for managing cash expenses warrants further investigation, as it may be masking the true cost of operations. This practice suggests that the company's reported cash flow figures may be more favorable than the underlying economic reality of the business, which remains heavily reliant on external funding.
Quick answers to the most common questions about buying TWST stock.
Twist Bioscience Corporation (TWST) generated $-47.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Twist Bioscience Corporation (TWST) reported negative free cash flow of $75.6M in 2025, indicating capital requirements exceeded cash from operations.
Twist Bioscience Corporation (TWST) spent $28.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Twist Bioscience Corporation (TWST) spent $0.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.