By Kelly Cloonan

Shares of Twist Bioscience declined after the company reported a second-quarter loss below Wall Street's expectations and said it plans to spin out its DNA storage as an independent company.

The stock fell 9% to $35.73. Shares have lost 13% over the past 12 months.

The company on Monday posted a loss of $39.3 million, or 66 cents a share, compared with a loss of $45.5 million, or 79 cents a share, a year earlier. Analysts polled by FactSet expected a loss per share of 55 cents.

Revenue rose to $92.8 million compared with $75.3 million a year ago. Analysts expected $92 million.

For fiscal 2025, the company maintained its previous guidance for revenue of $372 million to $379 million, up 19% to 21% from the prior year. Analysts expect $375.8 million.

For the third quarter, the company guided for revenue of $94 million to $97 million, up 15% to 19% from the year before. Analysts expect $95.5 million.

Twist also said Monday it is spinning out its DNA storage application as an independent company called Atlas Data Storage with $155 million in seed funding from strategic partners and investors.

The new company will focus solely on DNA storage technology and commercialization. The spinout allows Twist to focus on continued revenue growth and reach profitability, Twist Chief Executive Emily Leproust said.

Under the terms of the agreement, Twist licensed its DNA data storage technology to Atlas in exchange for a minority ownership interest, an upfront cash payment and a secured promissory note, the company said.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

May 05, 2025 11:37 ET (15:37 GMT)

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