Alpha Teknova (TKNO) investor relations material

Executive summary

• Q3 2025 revenue grew 9% year-over-year to $10.5 million, marking the fifth consecutive quarter of growth, led by strong Lab Essentials sales, while Clinical Solutions declined 13%.

• Net loss narrowed to $4.3 million (or -$0.08 per share) from $7.6 million (-$0.15 per share) year-over-year, reflecting improved operational execution and cost controls.

• Gross margin rebounded to 30.7% from 0.9% in Q3 2024, driven by the absence of prior year non-recurring inventory charges and higher revenue.

• Clinical Solutions customer base expanded, expected to drive future revenue as therapies and diagnostics commercialize.

• Ongoing process improvements and automation projects are on track for 2026, supporting scalability to over $200 million in annualized revenue without significant new capital.

Financial highlights

• Q3 2025 revenue was $10.5 million, up from $9.6 million in Q3 2024; Lab Essentials revenue rose 16% to $8.3 million, while Clinical Solutions revenue declined to $1.7 million.

• Gross profit was $3.2 million (30.7% margin), up from $0.1 million (0.9% margin) in Q3 2024; prior year included $2.8 million in non-recurring inventory charges.

• Adjusted EBITDA improved to negative $1.6 million from negative $5.0 million year-over-year.

• Free cash outflow was $2.4 million, unchanged year-over-year; cash, cash equivalents, and short-term investments totaled $22.1 million as of September 30, 2025.

• Operating expenses decreased to $7.2 million from $7.5 million year-over-year.

Outlook and guidance

• 2025 total revenue guidance reiterated at $39–$42 million, with expectations to finish slightly below the midpoint due to continued softness in Clinical Solutions demand.

• Free cash outflow for full year 2025 expected to be less than $12 million; no need to raise additional capital for organic growth strategy.

• Expects to become Adjusted EBITDA positive at $50–$55 million in annualized revenue.

• Gross margin target for fiscal 2025 remains in the low 30s; expects operating expenses of at least $8 million in Q4 2025 to support increased sales and marketing.

• The credit agreement requires a minimum net revenue of $39.0 million for the twelve months ending December 31, 2025, and a minimum cash balance of $8.0 million.