EX-99.1 2 tkno-ex99_1.htm EX-99.1 EX-99.1

Exhibit 99.1

 

img201297901_0.jpg

 

Teknova Reports Second Quarter 2025 Financial Results

 

Second quarter 2025 total revenue was $10.3 million, up 7% from prior year

Achieves four consecutive quarters of year-over-year revenue growth

Company reaffirms 2025 revenue guidance of $39-42 million

 

 

HOLLISTER, Calif., August 7, 2025 – Alpha Teknova, Inc. (“Teknova” or the “Company”) (Nasdaq: TKNO), a leading producer of critical reagents for the discovery, development, and commercialization of novel therapies, vaccines, and molecular diagnostics, today announced financial results for the second quarter ended June 30, 2025.

 

“Despite continued uncertainty in the macroenvironment, we delivered another strong quarter of results, with improvements in both the top and bottom lines,” said Stephen Gunstream, President and Chief Executive Officer at Teknova. “We continue to believe that the investments we’ve made in our operational and commercial infrastructure, combined with our diverse product portfolio and customer base, position Teknova for sustainable, above-market growth over the long-term.”

Matt Lowell, Teknova’s Chief Financial Officer, added, “Compared to 2024, we delivered 7% revenue growth in the second quarter 2025 along with significant improvements in adjusted EBITDA and free cash outflow. We believe the Company is well positioned to maintain its momentum. We therefore reiterate our 2025 revenue guidance of $39-42 million and continue to anticipate full-year free cash outflow of less than $12 million,” he explained.

 

Corporate and Financial Updates

Second quarter 2025 total revenue of $10.3 million, up 7% from the second quarter 2024
Revenue was up year-over-year for each of the past four consecutive quarters
Total cash and short-term investments were $24.0 million and total borrowings were $13.2 million at the end of the second quarter 2025

 

Revenue for the Second Quarter 2025

 

 

 

For the Three Months Ended
June 30,

 

 

For the Six Months Ended
June 30,

 

(Dollars in thousands)

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Lab Essentials

 

$

7,792

 

 

$

7,638

 

 

$

15,909

 

 

$

14,904

 

Clinical Solutions

 

 

2,060

 

 

 

1,565

 

 

 

3,222

 

 

 

3,283

 

Other

 

 

435

 

 

 

411

 

 

 

951

 

 

 

717

 

Total revenue

 

$

10,287

 

 

$

9,614

 

 

$

20,082

 

 

$

18,904

 

 

Second Quarter 2025 Financial Results

 

Total revenue for the second quarter 2025 was $10.3 million, up 7% compared to $9.6 million in the second quarter 2024. Lab Essentials revenue was $7.8 million in the second quarter 2025, up 2% compared to $7.6


million in the second quarter 2024. Clinical Solutions revenue was $2.1 million in the second quarter 2025, up 32% compared to $1.6 million in the second quarter 2024.

Gross profit for the second quarter 2025 was $4.0 million, compared to $2.8 million in the second quarter 2024. Gross margin for the second quarter 2025 was 38.7%, compared to 29.2% in the second quarter 2024. The increase in gross margin was driven by manufacturing efficiency gains and higher revenue.

 

Operating expenses for the second quarter 2025 were $7.4 million, compared to $7.9 million in the second quarter 2024. Excluding a non-recurring charge of $0.1 million recorded in the second quarter of 2024 related to a loss contingency, operating expenses were down $0.5 million. The decrease was driven by reduced spending, primarily on insurance and facility costs.

Net loss for the second quarter 2025 was $3.6 million, or negative $0.07 per diluted share, compared to $5.4 million, or negative $0.13 per diluted share, for the second quarter 2024.

Adjusted EBITDA for the second quarter 2025 was negative $0.8 million, compared to negative $2.6 million for the second quarter 2024. Free Cash Flow was negative $2.3 million for the second quarter 2025, compared to negative $3.0 million for the second quarter 2024. A full reconciliation of these non-GAAP measures to the most comparable GAAP measures is included at the end of this release.

 

Reiterates 2025 Outlook

 

Teknova reiterates its fiscal 2025 outlook for revenue and free cash outflow. The Company continues to anticipate total revenue of $39 million to $42 million for the fiscal year ending December 31, 2025. The Company also anticipates free cash outflow of less than $12 million for 2025.

 

Conference Call and Webcast

 

Teknova will host a webcast and conference call on Thursday, August 7, 2025, beginning at 5:00 p.m. Eastern Time. To access the live webcast, listeners can log onto the call from the Investor Relations section of the Teknova website or by using this link. If you would like to participate in the call, please register for the webcast here to receive a unique PIN number and dial-in information. The webcast will be available for replay on the Company’s website approximately two hours after the event.

 

About Teknova

 

Teknova makes solutions possible. Since 1996, Teknova has been innovating the manufacture of critical reagents for the life sciences industry to accelerate the discovery and development of novel breakthroughs that will help people live longer, healthier lives. We offer fully customizable solutions for every stage of the workflow, supporting industry leaders in molecular diagnostics, synthetic biology, and emerging therapeutic modalities. Our fast turnaround of high-quality agar plates, microbial culture and cryopreservation media, buffers and reagents, and water helps our customers scale seamlessly from RUO to GMP. Headquartered in Hollister, California, with over 180,000 square feet of state-of-the-art facilities, Teknova’s modular manufacturing platform was designed by our team of scientists, engineers, and quality control experts to efficiently produce the foundational ingredients for the discovery and commercialization of next-generation therapies.

 


Non-GAAP Financial Measures

 

This press release contains financial measures that have not been calculated in accordance with U.S. generally accepted accounting principles (GAAP). Teknova uses the following non-GAAP financial measures in assessing the performance of its business and the effectiveness of its business strategies: (a) Adjusted EBITDA and (b) Free Cash Flow.

 

Teknova defines Adjusted EBITDA as net loss adjusted for interest income (expense), net, provision for (benefit from) income taxes, depreciation expense, amortization of intangible assets, and stock-based compensation expense. Adjusted EBITDA reflects further adjustments to eliminate the impact of certain items, including certain non-cash and other items that Teknova does not consider representative of its ongoing operating performance.

 

Teknova continues to define Free Cash Flow as cash used in operating activities plus purchases of property, plant, and equipment.

 

Teknova provides Adjusted EBITDA and Free Cash Flow in this press release because Teknova believes that analysts, investors, and other interested parties frequently use these measures to evaluate companies in Teknova’s industry and that such measures facilitate comparisons on a consistent basis across reporting periods. Teknova also believes such measures are helpful in highlighting trends in Teknova’s operating results because they exclude items that are not indicative of Teknova’s core operating performance. Investors should consider non-GAAP financial measures in addition to, and not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. The non-GAAP financial measures presented by Teknova may be different from the non-GAAP financial measures used by other companies.

 

A full reconciliation of these non-GAAP measures to the most comparable GAAP measures is included at the end of this release.

 

Forward-Looking Statements

 

Statements in this press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements.” These statements include, but are not limited to, statements relating to Teknova’s anticipated total revenue, including expectations for 2025 revenue and free cash outflow guidance, and other statements about Teknova’s business prospects, including about Teknova’s profitability, strategy of managing operating expenses, and long-term growth strategy. The words, without limitation, “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these or similar identifying words. These forward-looking statements are based on management’s current expectations and beliefs and are subject to risks and uncertainties, all of which are difficult to predict and many of which are beyond Teknova’s control and could cause actual results to differ materially and adversely from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to, demand for Teknova’s products (including the potential delay to or pausing of customer orders); Teknova’s assessment of fundamental indicators of future demand across its target customer base; Teknova’s cash flows and revenue growth rate; Teknova’s supply chain, sourcing, manufacturing, and warehousing; inventory management; risks related to global economic and marketplace uncertainties, including those related to the conflicts in Ukraine and the Middle East; reliance on a limited number of customers for a high percentage of Teknova’s revenue; potential acquisitions and integration of other companies; and other factors discussed in the “Risk Factors” section of Teknova’s most recent periodic


reports filed with the Securities and Exchange Commission (“SEC”), including in Teknova’s Annual Report on Form 10-K for the year ended December 31, 2024, and subsequent Quarterly Reports on Form 10-Q filed with the SEC, all of which you may obtain for free on the SEC’s website at www.sec.gov. Although Teknova believes that the expectations reflected in its forward-looking statements are reasonable, Teknova does not know whether its expectations will prove correct. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, even if subsequently made available by Teknova on its website or otherwise. Teknova does not undertake any obligation to update, amend, or clarify these forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities laws.

 

Investor Contact

Matt Lowell

Chief Financial Officer

matt.lowell@teknova.com

+1 831-637-1100

 

Media Contact

Jennifer Henry

Senior Vice President, Marketing

jenn.henry@teknova.com

+1 831-313-1259

 


ALPHA TEKNOVA, INC.

Condensed Statements of Operations

(Unaudited)

(In thousands, except share and per share data)

 

 

 

For the Three Months Ended
June 30,

 

 

For the Six Months Ended
June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Revenue

 

$

10,287

 

 

$

9,614

 

 

$

20,082

 

 

$

18,904

 

Cost of sales

 

 

6,303

 

 

 

6,810

 

 

 

13,091

 

 

 

13,891

 

Gross profit

 

 

3,984

 

 

 

2,804

 

 

 

6,991

 

 

 

5,013

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

581

 

 

 

678

 

 

 

1,133

 

 

 

1,538

 

Sales and marketing

 

 

1,573

 

 

 

1,456

 

 

 

3,213

 

 

 

3,123

 

General and administrative

 

 

4,929

 

 

 

5,483

 

 

 

10,421

 

 

 

12,864

 

Amortization of intangible assets

 

 

287

 

 

 

287

 

 

 

574

 

 

 

574

 

Total operating expenses

 

 

7,370

 

 

 

7,904

 

 

 

15,341

 

 

 

18,099

 

Loss from operations

 

 

(3,386

)

 

 

(5,100

)

 

 

(8,350

)

 

 

(13,086

)

Other income (expenses), net

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(165

)

 

 

(272

)

 

 

(309

)

 

 

(417

)

Other adjustment to loan exit fee

 

 

 

 

 

 

 

 

485

 

 

 

 

Total other income (expenses), net

 

 

(165

)

 

 

(272

)

 

 

176

 

 

 

(417

)

Loss before income taxes

 

 

(3,551

)

 

 

(5,372

)

 

 

(8,174

)

 

 

(13,503

)

Provision for (benefit from) income taxes

 

 

19

 

 

 

(8

)

 

 

41

 

 

 

(42

)

Net loss

 

$

(3,570

)

 

$

(5,364

)

 

$

(8,215

)

 

$

(13,461

)

Net loss per share—basic and diluted

 

$

(0.07

)

 

$

(0.13

)

 

$

(0.15

)

 

$

(0.33

)

Weighted average shares used in computing net loss per share—basic and diluted

 

 

53,448,736

 

 

 

40,853,882

 

 

 

53,435,210

 

 

 

40,829,383

 

 


ALPHA TEKNOVA, INC.

Condensed Balance Sheets

(Unaudited)

(In thousands)

 

 

 

As of June 30,

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

3,276

 

 

$

3,708

 

Short-term investments, held -to-maturity

 

 

20,724

 

 

 

26,688

 

Accounts receivable, net

 

 

5,140

 

 

 

4,312

 

Inventories, net

 

 

7,610

 

 

 

6,801

 

Prepaid expenses and other current assets

 

 

1,307

 

 

 

1,267

 

Total current assets

 

 

38,057

 

 

 

42,776

 

Property, plant, and equipment, net

 

 

43,605

 

 

 

45,753

 

Operating right-of-use lease assets

 

 

14,960

 

 

 

15,767

 

Intangible assets, net

 

 

12,517

 

 

 

13,091

 

Other non-current assets

 

 

1,348

 

 

 

1,382

 

Total assets

 

$

110,487

 

 

$

118,769

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

1,204

 

 

$

825

 

Accrued liabilities

 

 

3,388

 

 

 

4,541

 

Current portion of operating lease liabilities

 

 

1,886

 

 

 

1,800

 

Current portion of long-term debt

 

 

 

 

 

4,045

 

Total current liabilities

 

 

6,478

 

 

 

11,211

 

Deferred tax liabilities

 

 

868

 

 

 

827

 

Other accrued liabilities

 

 

 

 

 

10

 

Long-term debt, net

 

 

13,032

 

 

 

9,443

 

Long-term operating lease liabilities

 

 

14,052

 

 

 

14,884

 

Total liabilities

 

 

34,430

 

 

 

36,375

 

Stockholders’ equity:

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

Common stock

 

 

1

 

 

 

1

 

Additional paid-in capital

 

 

202,802

 

 

 

200,924

 

Accumulated deficit

 

 

(126,746

)

 

 

(118,531

)

Total stockholders’ equity

 

 

76,057

 

 

 

82,394

 

Total liabilities and stockholders’ equity

 

$

110,487

 

 

$

118,769

 

 


ALPHA TEKNOVA, INC.

Condensed Statements of Cash Flows

(Unaudited)

(In thousands)

 

 

 

For the Three Months Ended
June 30,

 

 

For the Six Months Ended
June 30,

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(3,570

)

 

$

(5,364

)

 

$

(8,215

)

 

$

(13,461

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Bad debt expense

 

 

4

 

 

 

49

 

 

 

49

 

 

 

56

 

Inventory reserve

 

 

488

 

 

 

987

 

 

 

925

 

 

 

896

 

Depreciation and amortization

 

 

1,590

 

 

 

1,626

 

 

 

3,170

 

 

 

3,262

 

Stock-based compensation

 

 

950

 

 

 

833

 

 

 

1,802

 

 

 

2,140

 

Deferred taxes

 

 

20

 

 

 

(9

)

 

 

41

 

 

 

(44

)

Accrued interest income on short-term investments

 

 

108

 

 

 

 

 

 

54

 

 

 

 

Amortization of discount on short-term investments

 

 

(171

)

 

 

 

 

 

(355

)

 

 

 

Amortization of debt financing costs

 

 

43

 

 

 

104

 

 

 

129

 

 

 

188

 

Other adjustment to loan exit fee

 

 

 

 

 

 

 

 

(485

)

 

 

 

Non-cash lease expense

 

 

31

 

 

 

47

 

 

 

61

 

 

 

94

 

Loss on disposal of property, plant, and equipment

 

 

19

 

 

 

 

 

 

19

 

 

 

49

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

472

 

 

 

(86

)

 

 

(877

)

 

 

(705

)

Inventories

 

 

(1,525

)

 

 

(767

)

 

 

(1,734

)

 

 

(289

)

Prepaid expenses and other current assets

 

 

(36

)

 

 

239

 

 

 

(40

)

 

 

413

 

Other non-current assets

 

 

(29

)

 

 

89

 

 

 

34

 

 

 

206

 

Accounts payable

 

 

(360

)

 

 

(522

)

 

 

380

 

 

 

(389

)

Accrued liabilities

 

 

(135

)

 

 

(40

)

 

 

(1,152

)

 

 

(1,764

)

Other

 

 

 

 

 

(24

)

 

 

(10

)

 

 

(48

)

Cash used in operating activities

 

 

(2,101

)

 

 

(2,838

)

 

 

(6,204

)

 

 

(9,396

)

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of short-term investments

 

 

(7,765

)

 

 

 

 

 

(9,735

)

 

 

 

Maturities of short-term investments

 

 

10,000

 

 

 

 

 

 

16,000

 

 

 

 

Proceeds from sale of property, plant, and equipment

 

 

 

 

 

 

 

 

 

 

 

125

 

Purchases of property, plant, and equipment

 

 

(207

)

 

 

(115

)

 

 

(413

)

 

 

(227

)

Cash provided by (used in) investing activities

 

 

2,028

 

 

 

(115

)

 

 

5,852

 

 

 

(102

)

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from long-term debt

 

 

 

 

 

 

 

 

1,110

 

 

 

 

Payment of exit fee costs

 

 

 

 

 

 

 

 

(1,110

)

 

 

 

Payments related to equity financing

 

 

 

 

 

 

 

 

 

 

 

(37

)

Repayment of financed insurance premiums

 

 

 

 

 

(103

)

 

 

(56

)

 

 

(409

)

Proceeds from exercise of stock options

 

 

16

 

 

 

 

 

 

20

 

 

 

 

Proceeds from issuance of common stock under employee stock purchase plan

 

 

56

 

 

 

81

 

 

 

56

 

 

 

81

 

Payment of debt issuance costs

 

 

(100

)

 

 

(25

)

 

 

(100

)

 

 

(25

)

Cash used in financing activities

 

 

(28

)

 

 

(47

)

 

 

(80

)

 

 

(390

)

Change in cash and cash equivalents

 

 

(101

)

 

 

(3,000

)

 

 

(432

)

 

 

(9,888

)

Cash and cash equivalents at beginning of period

 

 

3,377

 

 

 

21,596

 

 

 

3,708

 

 

 

28,484

 

Cash and cash equivalents at end of period

 

$

3,276

 

 

$

18,596

 

 

$

3,276

 

 

$

18,596

 

 


ALPHA TEKNOVA, INC.

Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures

(Unaudited)

(In thousands)

 

 

 

For the Three Months Ended
June 30,

 

 

For the Six Months Ended
June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Net loss – as reported

 

$

(3,570

)

 

$

(5,364

)

 

$

(8,215

)

 

$

(13,461

)

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(165

)

 

 

(272

)

 

 

(309

)

 

 

(417

)

Provision for (benefit from) income taxes

 

 

19

 

 

 

(8

)

 

 

41

 

 

 

(42

)

Depreciation expense

 

 

1,303

 

 

 

1,339

 

 

 

2,596

 

 

 

2,688

 

Amortization of intangible assets

 

 

287

 

 

 

287

 

 

 

574

 

 

 

574

 

EBITDA

 

$

(1,796

)

 

$

(3,474

)

 

$

(4,695

)

 

$

(9,824

)

Other and non-recurring expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

950

 

 

 

833

 

 

 

1,802

 

 

 

2,140

 

Severance pay and other termination benefits

 

 

 

 

 

 

 

 

 

 

 

1,287

 

Other adjustment to loan exit fee

 

 

 

 

 

 

 

 

(485

)

 

 

 

Loss contingency

 

 

 

 

 

73

 

 

 

 

 

 

73

 

Adjusted EBITDA

 

$

(846

)

 

$

(2,568

)

 

$

(3,378

)

 

$

(6,324

)

 

 

 

For the Three Months Ended
June 30,

 

 

For the Six Months Ended
June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Cash used in operating activities

 

$

(2,101

)

 

$

(2,838

)

 

$

(6,204

)

 

$

(9,396

)

Purchases of property, plant, and equipment

 

 

(207

)

 

 

(115

)

 

 

(413

)

 

 

(227

)

Free Cash Flow

 

$

(2,308

)

 

$

(2,953

)

 

$

(6,617

)

 

$

(9,623

)