Alpha Teknova 2025 Q3 Earnings Revenue Rises 9% as Net Loss Narrows 43%

Alpha Teknova (TKNO) reported Q3 2025 earnings that exceeded expectations, with 9% year-over-year revenue growth and a 43% reduction in net losses. The company reaffirmed its full-year revenue guidance of $39–$42 million but noted continued softness in Clinical Solutions demand. Management emphasized operational efficiency and customer diversification as key strengths amid biotech funding challenges.

Revenue

Alpha Teknova’s total revenue rose 9.2% year-over-year to $10.45 million, driven by a 16% increase in Lab Essentials sales to $8.3 million. Clinical Solutions revenue declined 13% to $1.7 million, reflecting weaker demand from biopharma clients. The Lab Essentials segment, which includes catalog and custom reagents, outperformed expectations, while Clinical Solutions faced headwinds from delayed large-scale orders.

Earnings/Net Income

The company narrowed its net loss to $4.29 million ($0.08 per share) in Q3 2025, a 43.3% improvement from $7.57 million ($0.15 per share) in Q3 2024. Gross margin surged to 30.7% from 0.9% year-over-year, driven by cost optimization and non-recurring inventory charges in the prior period. The EPS improvement reflects disciplined cost management, though losses persist as the company invests in long-term growth.

Post-Earnings Price Action Review

Following the earnings release, Alpha Teknova’s stock surged 5.25% in after-hours trading but reversed course in the subsequent week, with a 10.29% decline. Month-to-date, the stock has fallen 11.30%, reflecting mixed investor sentiment. While analysts praised operational progress, concerns over biotech funding delays and Clinical Solutions demand weighed on short-term momentum.

CEO Commentary

CEO Stephen Gunstream highlighted the company’s fifth consecutive quarter of revenue growth, attributing success to Lab Essentials strength and operational efficiency. He emphasized diversifying Clinical Solutions customers and scaling production capabilities for GMP reagents. “We feel like we are in a really good spot to let the rest of our strategy play out,” Gunstream stated, underscoring confidence in long-term commercialization opportunities.

Guidance

Teknova reiterated 2025 revenue guidance of $39–$42 million and expects free cash outflow of less than $12 million. The company anticipates modest growth in custom biopharma products (25% of revenue) and low double-digit growth in the remaining 75% of its business. Adjusted EBITDA break-even is targeted at $50–$55 million in annualized revenue.

Additional News

1. Pluristyx Collaboration: Teknova secured an exclusive U.S. and Canadian distribution agreement for Pluristyx’s PluriFreeze™ cryopreservation system, expanding its offerings in allogeneic cell therapy.

2. Product Launch: The company launched new RUO+ reagents, bridging the gap between catalog and GMP standards, to attract mid-stage biopharma clients.

3. Capital Efficiency: Teknova reported $22.1 million in cash and equivalents as of Q3 2025, reaffirming confidence in executing growth strategies without additional capital raises.