Alpha Teknova Q2 Revenue Jumps 7%, Narrowing Net Loss Per Share to $0.07

Alpha Teknova's Q2 revenue increased 7% to $10.3 million, exceeding market expectations, and the net loss per share narrowed to $0.07. The Clinical Solutions segment saw a 32% YoY revenue increase, while the Lab Essentials segment revenue rose 2% from the prior year. Gross margin expanded to 38.7%, up from 29.2% last year, due to manufacturing efficiency gains and higher revenue levels. Adjusted EBITDA showed a narrower deficit compared to the same period last year.

Alpha Teknova Inc. (TKNO) has reported robust financial performance for the second quarter of 2025, with revenue growth and a significant reduction in net loss per share. The company's earnings report, released on August 7, 2025, showed a 7% increase in quarterly revenue to $10.3 million, surpassing analyst expectations of $10.3 million and a net loss per share of $0.10.

The Clinical Solutions segment, which provides custom and good manufacturing practice (GMP)-grade components for diagnostics and therapy manufacturing, was a key driver of growth. Revenue in this segment jumped 32% year over year, rebounding after a weak start to the year. Meanwhile, the Lab Essentials segment, which supplies the majority of the company’s revenue, saw a 2% increase in revenue from the prior year.

Alpha Teknova’s gross margin expanded significantly to 38.7%, up from 29.2% in the comparable period last year. This improvement was attributed to gains in manufacturing efficiency and higher revenue levels. Operating expenses declined, partly due to lower insurance and facility costs, contributing to an improved net loss.

Adjusted EBITDA, a non-GAAP measure used by management to track core profitability, showed a narrower deficit compared to the same period last year. During the quarter, Teknova launched an expanded partnership with Pluristics, gaining exclusive manufacturing and resale rights for the Flurry Freeze cryopreservation reagent product line in the United States and Canada. While the product launch caters to existing customer needs, management does not expect this collaboration to materially affect financial performance in 2025; contributions are expected to grow in later years.

Free cash flow (non-GAAP) remained negative but improved versus the same quarter last year. Both inventory levels and accounts receivable increased. The company ended the quarter with $24.0 million in cash and short-term investments, compared to $13.2 million in total borrowings, leaving it with a net cash position.

Management reaffirmed its revenue outlook of $39–$42 million for FY2025 and expects free cash outflow (non-GAAP) below $12 million for FY2025. The company anticipates a path toward profitability at higher annual revenue levels, noting that positive adjusted EBITDA (non-GAAP) is not expected until revenue reaches approximately $50–$55 million annually.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3TX2ZF:0-alpha-teknova-inc-expected-to-post-a-loss-of-10-cents-a-share-earnings-preview/
[2] https://www.nasdaq.com/articles/alpha-teknova-tkno-q2-revenue-jumps-7