Multiple Headwinds Hit Twist BioScience Corp. (TWST) in Q3

Conestoga Capital Advisors, an asset management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets continued their momentum that began in early April, reaching new all-time highs in the third quarter. The Conestoga Micro-Cap Composite returned 11.7% net-of-fees in the third quarter, compared to the Russell Microcap Growth Index’s return of 19.9%. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025.

In its third-quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Twist Bioscience Corporation (NASDAQ:TWST). Twist Bioscience Corporation (NASDAQ:TWST) manufactures and distributes synthetic DNA-based products. The one-month return of Twist Bioscience Corporation (NASDAQ:TWST) was 23.58%, and its shares lost 18.74% of their value over the last 52 weeks. On October 21, 2025, Twist Bioscience Corporation (NASDAQ:TWST) stock closed at $33.39 per share, with a market capitalization of $2.015 billion.

Conestoga Capital Advisors stated the following regarding Twist Bioscience Corporation (NASDAQ:TWST) in its third quarter 2025 investor letter:

“Twist Bioscience Corporation (NASDAQ:TWST) manufactures and supplies synthetic DNA, libraries, and genomics tools used in drug discovery. Demand for synthetic DNA products softened in biotech and academic research markets hurting quarterly results. Order growth slowed amid tighter biopharma funding and cautious research spending, while expansion investments pressured profitability. Cash burn concerns persisted despite long term growth potential in genomics and DNA data storage. Valuation compression across synthetic biology peers added to weakness.”

Is Twist Bioscience Corporation (TWST) The Best Immunology Stock To Buy Now?

Twist Bioscience Corporation (NASDAQ:TWST) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 23 hedge fund portfolios held Twist Bioscience Corporation (NASDAQ:TWST) at the end of the second quarter, compared to 30 in the previous quarter. In the third quarter of fiscal 2025, Twist Bioscience Corporation (NASDAQ:TWST) reported revenue of $96.1 million, reflecting a growth of 18% year-over-year and approximately 4% sequentially. While we acknowledge the risk and potential of Twist Bioscience Corporation (NASDAQ:TWST) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Twist Bioscience Corporation (NASDAQ:TWST) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Twist Bioscience Corporation (NASDAQ:TWST) and shared the list of best emerging technology stocks to buy. Conestoga Capital Advisors reinvested in Twist Bioscience Corporation (NASDAQ:TWST) in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.