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

Exhibit 99.1

 

img201297901_0.jpg

 

Teknova Reports Third Quarter 2025 Financial Results

 

Third quarter 2025 total revenue was $10.5 million, up 9% from prior year

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

Company reaffirms 2025 revenue guidance of $39-42 million

 

 

HOLLISTER, Calif., November 6, 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 third quarter ended September 30, 2025.

 

“We had a strong third quarter, our fifth consecutive quarter of year-over-year revenue growth, despite a very challenging funding backdrop for small- to mid-size biotech companies” said Stephen Gunstream, President and Chief Executive Officer at Teknova. “Notwithstanding those challenges, the number of our Clinical Solutions customers continues to rise. We believe that our relationships with those customers, paired with our diverse Lab Essentials product portfolio and customer base, position us for long-term, sustainable, above-market growth.”

Matt Lowell, Teknova’s Chief Financial Officer, added, “Compared to 2024, we delivered 9% revenue growth in the third quarter 2025, while Adjusted EBITDA improved and Free Cash Outflow was the same as last year. The Company is performing well operationally, and revenue from sales of our Lab Essentials products more than offset lagging Clinical Solutions sales. We therefore reiterate our 2025 revenue guidance of $39-42 million, while we continue to anticipate full-year Free Cash Outflow of less than $12 million,” he explained.

 

Corporate and Financial Updates

Third quarter 2025 total revenue of $10.5 million, up 9% from the third quarter 2024
Revenue was up year-over-year for each of the past five consecutive quarters
Total cash and short-term investments were $22.1 million and total borrowings were $13.2 million at the end of the third quarter 2025

 

Revenue for the Third Quarter 2025

 

 

 

For the Three Months Ended
September 30,

 

 

For the Nine Months Ended
September 30,

 

(Dollars in thousands)

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Lab Essentials

 

$

8,308

 

 

$

7,161

 

 

$

24,217

 

 

$

22,065

 

Clinical Solutions

 

 

1,706

 

 

 

1,964

 

 

 

4,928

 

 

 

5,247

 

Other

 

 

440

 

 

 

451

 

 

 

1,391

 

 

 

1,168

 

Total revenue

 

$

10,454

 

 

$

9,576

 

 

$

30,536

 

 

$

28,480

 

 


 

Third Quarter 2025 Financial Results

 

Total revenue for the third quarter 2025 was $10.5 million, up 9% compared to $9.6 million in the third quarter 2024. Lab Essentials revenue was $8.3 million in the third quarter 2025, up 16% compared to $7.2 million in the third quarter 2024. Clinical Solutions revenue was $1.7 million in the third quarter 2025, down 13% compared to $2.0 million in the third quarter 2024.

Gross profit for the third quarter 2025 was $3.2 million, compared to $0.1 million in the third quarter 2024. Gross margin for the third quarter 2025 was 30.7%, compared to 0.9% in the third quarter 2024. The increase was primarily driven by $2.8 million of non-recurring and non-cash charges during the third quarter 2024 related to the disposal of expired inventory and write down of excess inventory. Excluding those non-recurring and non-cash charges, gross profit would have been $2.9 million and gross margin would have been 29.8%, respectively, in the third quarter 2024. The improvement in gross margin from 29.8% to 30.7% was driven primarily by higher revenue.

 

Operating expenses for the third quarter 2025 were $7.2 million, compared to $7.5 million in the third quarter 2024. The decrease was driven by an overall net reduction in general and administrative spending.

Net loss for the third quarter 2025 was $4.3 million, or negative $0.08 per diluted share, compared to $7.6 million, or negative $0.15 per diluted share, for the third quarter 2024.

Adjusted EBITDA for the third quarter 2025 was negative $1.6 million, compared to negative $5.0 million for the third quarter 2024. Free Cash Outflow was $2.4 million for the third quarter 2025, compared to $2.4 million for the third 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.

 

Upcoming Investor Conference Attendance

Craig-Hallum 16th Annual Alpha Select Conference (New York, NY)

November 18, 2025

Stephens Annual Investment Conference 2025 (Nashville, TN)

November 19, 2025

Piper Sandler 37th Annual Healthcare Conference (New York, NY)

December 4, 2025

Conference Call and Webcast

 

Teknova will host a webcast and conference call on Thursday, November 6, 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 (Outflow).

 

Teknova defines Adjusted EBITDA as net income (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 (Outflow) as cash provided by (used in) operating activities less purchases of property, plant, and equipment.

 

Teknova provides Adjusted EBITDA and Free Cash Flow (Outflow) 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; 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 Teknova makes only as of the date hereof, even if they are repeated by Teknova subsequently. Teknova does not intend and shall have no obligation to update, amend, or clarify these forward-looking statements, 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
September 30,

 

 

For the Nine Months Ended
September 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Revenue

 

$

10,454

 

 

$

9,576

 

 

$

30,536

 

 

$

28,480

 

Cost of sales

 

 

7,248

 

 

 

9,486

 

 

 

20,339

 

 

 

23,377

 

Gross profit

 

 

3,206

 

 

 

90

 

 

 

10,197

 

 

 

5,103

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

542

 

 

 

627

 

 

 

1,675

 

 

 

2,165

 

Sales and marketing

 

 

1,747

 

 

 

1,640

 

 

 

4,960

 

 

 

4,763

 

General and administrative

 

 

4,647

 

 

 

4,968

 

 

 

15,068

 

 

 

17,832

 

Amortization of intangible assets

 

 

287

 

 

 

287

 

 

 

861

 

 

 

861

 

Total operating expenses

 

 

7,223

 

 

 

7,522

 

 

 

22,564

 

 

 

25,621

 

Loss from operations

 

 

(4,017

)

 

 

(7,432

)

 

 

(12,367

)

 

 

(20,518

)

Other expenses, net

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(190

)

 

 

(141

)

 

 

(499

)

 

 

(558

)

Other adjustment to loan exit fee

 

 

 

 

 

 

 

 

485

 

 

 

 

Total other expenses, net

 

 

(190

)

 

 

(141

)

 

 

(14

)

 

 

(558

)

Loss before income taxes

 

 

(4,207

)

 

 

(7,573

)

 

 

(12,381

)

 

 

(21,076

)

Provision for (benefit from) income taxes

 

 

79

 

 

 

(8

)

 

 

120

 

 

 

(50

)

Net loss

 

$

(4,286

)

 

$

(7,565

)

 

$

(12,501

)

 

$

(21,026

)

Net loss per share—basic and diluted

 

$

(0.08

)

 

$

(0.15

)

 

$

(0.23

)

 

$

(0.47

)

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

 

 

53,516,986

 

 

 

51,821,395

 

 

 

53,462,768

 

 

 

44,520,132

 

 


ALPHA TEKNOVA, INC.

Condensed Balance Sheets

(Unaudited)

(In thousands)

 

 

 

As of September 30,

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

3,204

 

 

$

3,708

 

Short-term investments, held -to-maturity

 

 

18,912

 

 

 

26,688

 

Accounts receivable, net

 

 

5,135

 

 

 

4,312

 

Inventories, net

 

 

6,914

 

 

 

6,801

 

Prepaid expenses and other current assets

 

 

2,398

 

 

 

1,267

 

Total current assets

 

 

36,563

 

 

 

42,776

 

Property, plant, and equipment, net

 

 

42,623

 

 

 

45,753

 

Operating right-of-use lease assets

 

 

14,894

 

 

 

15,767

 

Intangible assets, net

 

 

12,230

 

 

 

13,091

 

Other non-current assets

 

 

1,315

 

 

 

1,382

 

Total assets

 

$

107,625

 

 

$

118,769

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

1,084

 

 

$

825

 

Accrued liabilities

 

 

3,966

 

 

 

4,541

 

Current portion of operating lease liabilities

 

 

1,886

 

 

 

1,800

 

Current portion of long-term debt

 

 

 

 

 

4,045

 

Total current liabilities

 

 

6,936

 

 

 

11,211

 

Deferred tax liabilities

 

 

946

 

 

 

827

 

Other accrued liabilities

 

 

 

 

 

10

 

Long-term debt, net

 

 

13,076

 

 

 

9,443

 

Long-term operating lease liabilities

 

 

14,017

 

 

 

14,884

 

Total liabilities

 

 

34,975

 

 

 

36,375

 

Stockholders’ equity:

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

Common stock

 

 

1

 

 

 

1

 

Additional paid-in capital

 

 

203,681

 

 

 

200,924

 

Accumulated deficit

 

 

(131,032

)

 

 

(118,531

)

Total stockholders’ equity

 

 

72,650

 

 

 

82,394

 

Total liabilities and stockholders’ equity

 

$

107,625

 

 

$

118,769

 

 


ALPHA TEKNOVA, INC.

Condensed Statements of Cash Flows

(Unaudited)

(In thousands)

 

 

 

For the Three Months Ended
September 30,

 

 

For the Nine Months Ended
September 30,

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(4,286

)

 

$

(7,565

)

 

$

(12,501

)

 

$

(21,026

)

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

 

 

 

 

 

 

 

 

 

 

 

 

Bad debt expense

 

 

22

 

 

 

5

 

 

 

71

 

 

 

61

 

Inventory reserve

 

 

732

 

 

 

3,339

 

 

 

1,657

 

 

 

4,235

 

Depreciation and amortization

 

 

1,591

 

 

 

1,671

 

 

 

4,761

 

 

 

4,933

 

Stock-based compensation

 

 

850

 

 

 

760

 

 

 

2,652

 

 

 

2,900

 

Deferred taxes

 

 

78

 

 

 

(8

)

 

 

119

 

 

 

(52

)

Accrued interest income on short-term investments

 

 

(62

)

 

 

(118

)

 

 

(8

)

 

 

(118

)

Amortization of discount on short-term investments

 

 

(153

)

 

 

 

 

 

(508

)

 

 

 

Amortization of debt financing costs

 

 

44

 

 

 

103

 

 

 

173

 

 

 

291

 

Other adjustment to loan exit fee

 

 

 

 

 

 

 

 

(485

)

 

 

 

Non-cash lease expense

 

 

31

 

 

 

46

 

 

 

92

 

 

 

140

 

Loss on disposal of property, plant, and equipment

 

 

 

 

 

 

 

 

19

 

 

 

49

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(17

)

 

 

(13

)

 

 

(894

)

 

 

(718

)

Inventories

 

 

(36

)

 

 

(26

)

 

 

(1,770

)

 

 

(315

)

Prepaid expenses and other current assets

 

 

(1,424

)

 

 

(1,356

)

 

 

(1,464

)

 

 

(943

)

Other non-current assets

 

 

33

 

 

 

128

 

 

 

67

 

 

 

334

 

Accounts payable

 

 

(136

)

 

 

(41

)

 

 

244

 

 

 

(430

)

Accrued liabilities

 

 

753

 

 

 

1,040

 

 

 

(399

)

 

 

(724

)

Other

 

 

 

 

 

(24

)

 

 

(10

)

 

 

(72

)

Cash used in operating activities

 

 

(1,980

)

 

 

(2,059

)

 

 

(8,184

)

 

 

(11,455

)

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of short-term investments

 

 

(3,973

)

 

 

(25,428

)

 

 

(13,708

)

 

 

(25,428

)

Maturities of short-term investments

 

 

6,000

 

 

 

 

 

 

22,000

 

 

 

 

Proceeds from sale of property, plant, and equipment

 

 

 

 

 

 

 

 

 

 

 

125

 

Purchases of property, plant, and equipment

 

 

(387

)

 

 

(331

)

 

 

(800

)

 

 

(558

)

Cash provided by (used in) investing activities

 

 

1,640

 

 

 

(25,759

)

 

 

7,492

 

 

 

(25,861

)

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from equity financing, net

 

 

 

 

 

15,141

 

 

 

 

 

 

15,104

 

Proceeds from long-term debt

 

 

 

 

 

 

 

 

1,110

 

 

 

 

Payment of exit fee costs

 

 

 

 

 

 

 

 

(1,110

)

 

 

 

Proceeds from financed insurance premiums

 

 

333

 

 

 

385

 

 

 

333

 

 

 

385

 

Repayment of financed insurance premiums

 

 

(94

)

 

 

(163

)

 

 

(150

)

 

 

(572

)

Proceeds from exercise of stock options

 

 

29

 

 

 

4

 

 

 

49

 

 

 

4

 

Proceeds from issuance of common stock under employee stock purchase plan

 

 

 

 

 

 

 

 

56

 

 

 

81

 

Payment of debt issuance costs

 

 

 

 

 

 

 

 

(100

)

 

 

(25

)

Cash used in financing activities

 

 

268

 

 

 

15,367

 

 

 

188

 

 

 

14,977

 

Change in cash and cash equivalents

 

 

(72

)

 

 

(12,451

)

 

 

(504

)

 

 

(22,339

)

Cash and cash equivalents at beginning of period

 

 

3,276

 

 

 

18,596

 

 

 

3,708

 

 

 

28,484

 

Cash and cash equivalents at end of period

 

$

3,204

 

 

$

6,145

 

 

$

3,204

 

 

$

6,145

 

 


ALPHA TEKNOVA, INC.

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

(Unaudited)

(In thousands)

 

 

 

For the Three Months Ended
September 30,

 

 

For the Nine Months Ended
September 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Net loss – as reported

 

$

(4,286

)

 

$

(7,565

)

 

$

(12,501

)

 

$

(21,026

)

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(190

)

 

 

(141

)

 

 

(499

)

 

 

(558

)

Provision for (benefit from) income taxes

 

 

79

 

 

 

(8

)

 

 

120

 

 

 

(50

)

Depreciation expense

 

 

1,304

 

 

 

1,384

 

 

 

3,900

 

 

 

4,072

 

Amortization of intangible assets

 

 

287

 

 

 

287

 

 

 

861

 

 

 

861

 

EBITDA

 

$

(2,426

)

 

$

(5,761

)

 

$

(7,121

)

 

$

(15,585

)

Other and non-recurring expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

850

 

 

 

760

 

 

 

2,652

 

 

 

2,900

 

Severance pay and other termination benefits

 

 

 

 

 

 

 

 

 

 

 

1,287

 

Other adjustment to loan exit fee

 

 

 

 

 

 

 

 

(485

)

 

 

 

Loss contingency

 

 

 

 

 

 

 

 

 

 

 

73

 

Adjusted EBITDA

 

$

(1,576

)

 

$

(5,001

)

 

$

(4,954

)

 

$

(11,325

)

 

 

 

For the Three Months Ended
September 30,

 

 

For the Nine Months Ended
September 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Cash used in operating activities

 

$

(1,980

)

 

$

(2,059

)

 

$

(8,184

)

 

$

(11,455

)

Purchases of property, plant, and equipment

 

 

(387

)

 

 

(331

)

 

 

(800

)

 

 

(558

)

Free Cash Flow

 

$

(2,367

)

 

$

(2,390

)

 

$

(8,984

)

 

$

(12,013

)