TKNO

Interested in Alpha Teknova, Inc.? Here are five stocks we like better. Record Q2 revenue: Revenue rose 18% year over year to more than $12 million, with growth across major product lines and no customer accounting for more than 7% of quarterly sales. Cell and gene therapy-related accounts were the main area of weakness due partly to order timing. Improved profitability and cash use: Gross margin expanded to 40.1%, net loss narrowed to $3.2 million, and free cash outflow fell to $0.6 million from $2.3 million a year earlier. Raised outlook and new growth initiative: Teknova increased 2026 revenue guidance to $45 million-$47 million while maintaining its low-$50 million 2027 target. The company also launched Build-Tek, an AI-powered custom-order configurator intended to shorten product design and quoting timelines. Alpha Teknova (NASDAQ:TKNO) reported second-quarter revenue growth of 18% from a year earlier, surpassing $12 million for its highest quarterly revenue in the company’s 30-year history. The company raised its full-year revenue outlook, citing first-half performance and confidence in the second half of 2026. President and Chief Executive Officer Stephen Gunstream said growth was broad-based rather than concentrated in a single customer or order. The company’s largest direct customer represented less than 7% of quarterly revenue, he said. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control “We achieved growth in sales of our products across all of our major target markets, with the exception of cell and gene therapy related accounts, which were down in part due to order timing,” Gunstream said. Lab Essentials revenue, which includes research-use-only catalog and custom products, rose 18% to $9.2 million in the second quarter from $7.8 million a year earlier. Chief Financial Officer Matt Lowell said the increase reflected higher average revenue per customer and, to a lesser extent, a larger customer base. → 3 Drone Stocks That Should Soar After the Summer Slump Clinical Solutions revenue, consisting of products manufactured to good manufacturing practices standards for diagnostic and therapeutic applications, increased 18% to $2.4 million from $2.1 million. The growth was driven by more customers, partly offset by lower average revenue per customer, Lowell said. Management said the company saw significant growth in biopharma outside of cell and gene therapy, led by custom-product sales. Teknova also reported continued strength among liquid biopsy customers and low-double-digit growth in catalog-product revenue across end markets. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Cell and gene therapy remained softer, particularly in early research and discovery activity. Gunstream said an order was pushed from the second quarter into the third quarter, though he characterized the order as relatively small and said there was no risk of a further delay. Gross profit increased to $4.9 million from $4.0 million a year earlier, while gross margin expanded to 40.1% from 38.7%. Lowell attributed the improvement primarily to higher revenue, partially offset by higher fixed-cost absorption in cost of goods sold associated with faster finished-goods inventory turns. Operating expenses rose to $7.8 million from $7.4 million, driven mainly by sales and marketing investments, including additional headcount and marketing spending. Those increases were partly offset by lower general and administrative expenses tied to reduced stock-based compensation. Net loss narrowed to $3.2 million, or $0.06 per diluted share, from $3.6 million, or $0.07 per diluted share. Adjusted EBITDA was negative $0.7 million, compared with negative $0.8 million in the prior-year quarter. Free cash outflow declined to $0.6 million from $2.3 million, aided by lower cash used in operating activities. As of June 30, Teknova had $17.4 million in cash equivalents and short-term investments and $13.2 million in total borrowings. The company ended the quarter with 156 associates, compared with 171 a year earlier. Teknova raised its 2026 revenue guidance to a range of $45 million to $47 million, from a prior range of $42 million to $44 million. The midpoint of the updated outlook implies approximately 14% growth from 2025, compared with the company’s prior midpoint expectation for 6% growth. Lowell said the guidance assumes a second half broadly consistent with the first half, with the company expecting the third quarter to be stronger than the seasonally lighter fourth quarter. Management said it has not incorporated potential benefits from improved biotech funding or recent commercial investments into its second-half outlook. The company reiterated its target for revenue in the low-$50 million range in 2027. Gunstream said Teknova is maintaining that dollar target because it does not yet have enough visibility into the potential effects of biotech funding, sales investments and customer therapies advancing toward commercialization. Teknova expects full-year gross margin in the mid-to-upper 30% range and operating expenses of at least $8 million per quarter through the end of 2026. The company expects free cash outflow of less than $8 million for the full year, despite commercial investments and potentially higher capital expenditures during the second half. Management said it expects to become adjusted EBITDA positive at annualized revenue between $52 million and $57 million. If end markets strengthen and commercial investments generate the anticipated returns, Lowell said the company could report a positive adjusted EBITDA quarter before the end of 2027. Teknova launched Build-Tek, an artificial intelligence-powered custom order configurator designed to help customers create specifications and submit quote requests for custom products. The tool is an expansion of the company’s buffer configurator introduced in 2024. Gunstream said Build-Tek is trained on 30 years of Teknova manufacturing experience and can guide users on product type, formulation, container format, manufacturing grade and quality-control testing. Customers can also upload formulations, files or published literature for reference. The company said the platform can reduce the custom-product design process from weeks to a few business days. Teknova will not charge customers to use Build-Tek, according to Gunstream, who described the tool as a way to strengthen the company’s custom-manufacturing capabilities and bring more customers into custom products. Management said it soft-launched the service during the prior quarter and has received quote requests from customers that previously ordered only catalog products. Teknova plans to add capabilities including catalog-product customization, online saved requests and instant quotes. Looking ahead, Gunstream pointed to several potential growth drivers, including products used in more than 70 therapies or diagnostics in clinical trials, increased biotech funding over the past three quarters, and investments in lead generation and field sales. The company expects the commercial investments to begin contributing more meaningfully around early 2027. Teknova also said it has substantial manufacturing capacity remaining. Gunstream estimated existing facilities could support approximately $200 million in revenue and said the company does not anticipate needing another major manufacturing facility capital expenditure in the near term. Alpha Teknova, Inc (NASDAQ: TKNO) is a life science tools and reagents company that develops, manufactures and distributes proprietary products to support research, drug discovery and biomanufacturing. Its offerings target academic institutions, pharmaceutical and biotechnology firms, and diagnostic developers, with a focus on high-purity reagents and optimized workflows designed to accelerate molecular biology and protein science applications. The company's portfolio includes molecular biology reagents, cell culture buffers, in vitro translation kits, custom recombinant proteins, high-throughput screening buffers and other specialized formulations. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Alpha Teknova Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Total Revenue: $12 million+ in Q2 2026, up 18% year-over-year, marking the highest quarterly revenue in company history. Lab Essentials Revenue: $9.2 million in Q2 2026, up 18% from $7.8 million in Q2 2025. Clinical Solutions Revenue: $2.4 million in Q2 2026, up 18% from $2.1 million in Q2 2025. Gross Profit: $4.9 million in Q2 2026, compared to $4.0 million in Q2 2025. Gross Margin: 40.1% in Q2 2026, up from 38.7% in Q2 2025. Operating Expenses: $7.8 million in Q2 2026, compared to $7.4 million in Q2 2025. Net Loss: $3.2 million, or -$0.06 per diluted share, in Q2 2026, compared to a net loss of $3.6 million, or -$0.07 per diluted share, in Q2 2025. Adjusted EBITDA: -$0.7 million in Q2 2026, compared to -$0.8 million in Q2 2025. Capital Expenditures: $0.1 million in Q2 2026, compared to $0.2 million in Q2 2025. Free Cash Outflow: $0.6 million in Q2 2026, compared to $2.3 million in Q2 2025. Cash and Investments: $17.4 million in cash equivalents and short-term investments as of June 30, 2026. Total Borrowings: $13.2 million as of June 30, 2026. 2026 Revenue Guidance: Increased to between $45 million and $47 million, up from $42 million to $44 million previously. 2027 Revenue Target: Low $50 millions range. Warning! GuruFocus has detected 3 Warning Signs with TKNO. Is TKNO fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Alpha Teknova Inc (NASDAQ:TKNO) achieved its highest quarterly revenue in company history, with total revenue growing 18% year-over-year to exceed $12 million in Q2 2026. The company raised its full-year 2026 revenue guidance to $45-$47 million, up from the previous $42-$44 million range, reflecting strong first-half performance and confidence in the back half. Revenue growth was broad-based, with the largest direct customer representing less than 7% of total revenue, and growth was seen across all major target markets except cell and gene therapy. Alpha Teknova Inc (NASDAQ:TKNO) launched Build-Tek, an AI-powered custom order configurator that reduces custom product design time from weeks to days, already generating quote requests from new customers. The company significantly reduced its free cash outflow to $0.6 million in Q2 2026, down from $2.3 million in the prior year quarter, marking its lowest cash burn since before its IPO. Alpha Teknova Inc (NASDAQ:TKNO) sees multiple tailwinds for 2027, including therapies in clinical trials progressing toward commercialization, improved biotech funding, and early positive results from commercial investments. Cell and gene therapy related accounts experienced a decline in Q2 2026, partly due to order timing, and biopharma revenue has been muted so far this year due to softness in this segment. The company has not yet seen the positive revenue impact from improved biotech funding, which typically lags by approximately four quarters, and is not factoring this into back-half guidance. Gross margin improvement in Q2 2026 was partially masked by a difficult comparison to Q2 2025, which included unusually favorable manufacturing efficiencies. Operating expenses increased to $7.8 million in Q2 2026 due to investments in sales and marketing, and the company expects operating expenses to remain at least $8 million per quarter through the end of 2026. Alpha Teknova Inc (NASDAQ:TKNO) expects free cash outflow to increase in the next two quarters, with full-year 2026 free cash outflow projected to be less than $8 million. The company's 2027 revenue target remains unchanged at the low $50 millions, and management is being prudent about upside potential until the impact of biotech funding and commercial investments becomes clearer. Q: Can you speak to the visibility you have on the order funnel in Q3 and Q4, especially in the biotech pharma CDMOs bucket, and what growth assumptions underpin the new guidance? A: Stephen Gunstream (CEO): Our funnel looks strong, but it is not due to biotech funding flowing through yet. We have not yet seen that happen. We have seen nice growth in large pharma and CDMOs, but cell and gene therapy has been muted. We are not factoring the biotech funding roll-through into the back half of the year. Matt Lowell (CFO) added that the guidance midpoint of $46 million essentially mirrors the first half run rate, with Q3 expected to be stronger than Q4 due to seasonal business days. Q: Is 20% growth still on the table for 2027, and what elements need to continue improving to reach that level? A: Stephen Gunstream (CEO): We have left the 2027 target at the low $50 million range, which is essentially unchanged from our initial guidance. We are being prudent because it is still mid-2026 and we don't have enough visibility on how biotech funding, commercial investments, and customer commercialization will impact us. If these tailwinds come to fruition, there could be upside from that level. Q: How are inter-quarter demand trends tracking, and what is the confidence level that the cell and gene therapy order pushed out to Q3 will come in? A: Stephen Gunstream (CEO): The order that slid is a relatively small part of our revenue and there is no risk it won't happen in Q3. Matt Lowell (CFO) added that the back-half guidance assumes a similar pattern to prior years, with Q3 stronger than Q4, which is typically seasonally light due to fewer business days. Q: Can you double-click on the life science diagnostic tool space, particularly liquid biopsy, and where you are seeing the biggest signs of growth? A: Stephen Gunstream (CEO): We sell to almost all companies doing some form of liquid biopsy. For some, we provide reagents and buffers in bulk for DNA purification or next-gen sequencing library prep; for others, we do full outsourced GMP manufacturing. We are seeing growth across the board and play in each segment you mentioned, including early detection, MRD, and prenatal testing. Q: What is driving the increase in average revenue per customer in the Lab Essentials business? A: Stephen Gunstream (CEO): The catalog business grew low double digits, but overall Lab Essentials revenue grew 18%, meaning the custom side grew significantly more. The average revenue per customer is driven by larger orders on the custom side, particularly from tools and diagnostics customers running LDTs, and some preclinical work. Q: Are you still looking at inorganic growth opportunities, and what types of things are you looking for? A: Stephen Gunstream (CEO): We believe we have the liquidity to fund the business to cash flow positive based on our organic strategy. We are actively looking at M&A opportunities to expand geographically and potentially our product portfolio, including complementary reagents in the area of proteins. We are hopeful we can find something that makes sense at the right price. Q: Can you provide any color on the GMP customer count in the first half of 2026, and is there an update on the Pluristyx collaboration? A: Stephen Gunstream (CEO): We saw an increase in GMP customer count, though some customers have been acquired or gone out of business. We are excited about the progression of customers' therapies through clinical trials. Regarding Pluristyx, we are getting in early with customers to try the product, but we wouldn't expect anything material as a growth driver in the near term as it takes a long time for therapies to migrate. Q: Is cell and gene therapy the only pocket of weakness, and are there differences between earlier-stage and late-stage customers? A: Stephen Gunstream (CEO): Cell and gene therapy was the only end market not growing significantly this quarter, partly due to order timing. Later-stage therapies continue to move forward and order, while the early-stage R&D side has not yet come back from biotech funding. It is more of a timing-related issue than anything else. Q: How has quote volume trended since the Build-Tek beta launch, and could it become a growth tailwind into 2027? A: Stephen Gunstream (CEO): We are very excited about Build-Tek and have seen an increase in usage, including from customers who had not typically ordered custom products from us. It is a big differentiator and we believe it will be a tailwind, helping customers figure out what they need and getting it into our system quickly. Q: How are the commercial investments in field sales and lead generation going, and where will the benefit show up? A: Stephen Gunstream (CEO): Both the field sales team and lead generation resources are executing really well, generating improvements in the funnel and more meetings with the right customers. We targeted this investment towards the biggest opportunities, which will take time to play through. We expect to see the impact in the Q1 2027 timeframe. Q: Can you remind us where you are with utilization in your key facilities and how you think about that moving forward? A: Stephen Gunstream (CEO): We have a lot of room to go, estimating capacity at $200 million in revenue. We are operating between four and five days on one shift, and can add multiple shifts or weekends. We are well within capacity and don't need another facility build. Manufacturing projects are focused on driving efficiency and new capabilities like automation. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Second quarter 2026 total revenue was $12.2 million, up 18% over the same quarter prior yearCompany raises 2026 revenue guidance to $45-47 millionLaunched proprietary AI-powered Build-Tek™ custom order configurator, giving developers a faster path from preclinical to clinical manufacturing HOLLISTER, Calif., Aug. 05, 2026 (GLOBE NEWSWIRE) -- 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, 2026. "We delivered more than $12 million in quarterly revenue for the first time in Teknova's history, with growth across nearly all of the end markets we serve," said Stephen Gunstream, President and Chief Executive Officer at Teknova. "These results demonstrate the impact of the investments we've made in our commercial organization, state-of-the-art facilities, and manufacturing systems, and strengthen our confidence in our ability to deliver long-term, sustainable growth as the biotech market continues to recover." Matt Lowell, Teknova’s Chief Financial Officer, added, “We delivered excellent financial results in the second quarter 2026 compared to 2025, including 18% revenue growth and a significant improvement in Free Cash Outflow. We are therefore raising our 2026 revenue guidance to $45-47 million and adjusting down our expectations for full-year Free Cash Outflow to less than $8 million,” he explained. Corporate and Financial Updates Second quarter 2026 total revenue of $12.2 million, up 18% compared to $10.3 million for the second quarter 2025 Total cash and short-term investments were $17.4 million and total borrowings were $13.2 million at the end of the second quarter 2026 Following a second quarter beta release, the Company launched Build-Tek™, the AI-powered evolution of its proprietary custom configurator first introduced in 2024, now enabling therapeutic and diagnostic developers to build complex custom products in just minutes Revenue for the Second Quarter 2026 Second Quarter 2026 Financial Results Total revenue for the second quarter 2026 was $12.2 million, up 18% compared to $10.3 million in the second quarter 2025. Lab Essentials revenue was $9.2 million in the second quarter 2026, up 18% compared to $7.8 million in the second quarter 2025. Clinical Solutions revenue was $2.4 million in the second quarter 2026, up 18% compared to $2.1 million in the second quarter 2025. Gross profit for the second quarter 2026 was $4.9 million, compared to $4.0 million in the second quarter 2025. Gross margin for the second quarter 2026 was 40.1%, compared to 38.7% in the second quarter 2025. The increase in gross margin was primarily driven by higher revenue, partially offset by higher fixed cost absorption into cost of goods sold from faster finished goods inventory turns. This compares to the same period in the prior year that had benefited from unusually favorable manufacturing efficiency gains. Operating expenses for the second quarter 2026 were $7.8 million, compared to $7.4 million in the second quarter 2025. The increase was primarily driven by higher spending in sales and marketing, a result of higher headcount and increased marketing expenses, partially offset by lower general and administrative expenses attributable to lower stock-based compensation expense. Net loss for the second quarter 2026 was $3.2 million, or negative $0.06 per diluted share, compared to $3.6 million, or negative $0.07 per diluted share, for the second quarter 2025. Adjusted EBITDA for the second quarter 2026 was negative $0.7 million, compared to negative $0.8 million for the second quarter 2025. Cash used in operating activities for the second quarter 2026 was $0.5 million, compared to $2.1 million of cash used in operating activities for the second quarter 2025. Free Cash Outflow was $0.6 million for the second quarter 2026, compared to $2.3 million for the second quarter 2025. A full reconciliation of these non-GAAP measures to the most comparable GAAP measures is included at the end of this release. Improves 2026 Outlook Teknova raises its fiscal 2026 outlook for revenue and improves its outlook for Free Cash Outflow. The Company now anticipates total revenue of $45 million to $47 million for the fiscal year ending December 31, 2026 (“2026”). The Company also now expects Free Cash Outflow of less than $8 million for 2026. Upcoming Investor Conference Attendance Sidoti Microcap Conference (Virtual)August 19-20, 2026 ROTH Healthcare Opportunities Conference (New York, NY)September 29, 2026 Conference Call and Webcast Teknova will host a webcast and conference call on Wednesday, August 5, 2026, beginning at 6:00 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 genomics, molecular diagnostics, 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 defines 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 our expectations for 2026 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, 2025, 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 ContactMatt LowellChief Financial [email protected]+1 831-637-1100 Media ContactJennifer HenrySenior Vice President, [email protected]+1 831-313-1259 This press release was published by a CLEAR® Verified individual.

As you might know, Alpha Teknova, Inc. (NASDAQ:TKNO) just kicked off its latest first-quarter results with some very strong numbers. Results overall were credible, with revenues arriving 9.5% better than analyst forecasts at US$11m. Higher revenues also resulted in lower statutory losses, which were US$0.08 per share, some 9.5% smaller than the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Taking into account the latest results, the current consensus from Alpha Teknova's six analysts is for revenues of US$43.3m in 2026. This would reflect a credible 3.6% increase on its revenue over the past 12 months. Losses are expected to increase substantially, hitting US$0.35 per share. Before this earnings announcement, the analysts had been modelling revenues of US$43.0m and losses of US$0.35 per share in 2026. See our latest analysis for Alpha Teknova As a result there was no major change to the consensus price target of US$9.00, implying that the business is trading roughly in line with expectations despite ongoing losses. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Alpha Teknova, with the most bullish analyst valuing it at US$12.00 and the most bearish at US$7.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation. Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Alpha Teknova's growth to accelerate, with the forecast 4.8% annualised growth to the end of 2026 ranking favourably alongside historical growth of 0.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 6.5% annually. So it's clear that despite the acceleration in growth, Alpha Teknova is expected to grow meaningfully slower than the industry average. The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Alpha Teknova's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates. With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Alpha Teknova analysts - going out to 2028, and you can see them free on our platform here. Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Alpha Teknova that you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

First quarter 2026 total revenue was $11.1 million, up 13% over the same quarter prior year Company reaffirms 2026 revenue guidance of $42-44 million HOLLISTER, Calif., May 06, 2026 (GLOBE NEWSWIRE) -- 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 first quarter ended March 31, 2026. “We had a great start to 2026,” said Stephen Gunstream, President and Chief Executive Officer at Teknova. “The substantial investments we’ve made since 2021, combined with an improved market backdrop, position Teknova for sustainable above-market growth over the next couple years, particularly as our Clinical Solutions customers advance their therapies and diagnostics towards commercialization.” Matt Lowell, Teknova’s Chief Financial Officer, added, “We delivered strong financial results in the first quarter 2026 compared to 2025, including 13% revenue growth and significant improvements in Adjusted EBITDA and Free Cash Outflow. We believe the Company is well positioned to maintain its momentum. We therefore reiterate our 2026 revenue guidance of $42-44 million and continue to anticipate full-year Free Cash Outflow of less than $10 million,” he explained. Corporate and Financial Updates First quarter 2026 total revenue of $11.1 million, up 13% compared to $9.8 million for the first quarter 2025 Total cash and short-term investments were $17.8 million and total borrowings were $13.2 million at the end of the first quarter 2026 Revenue for the First Quarter 2026 First Quarter 2026 Financial Results Total revenue for the first quarter 2026 was $11.1 million, up 13% compared to $9.8 million in the first quarter 2025. Lab Essentials revenue was $8.4 million in the first quarter 2026, up 3% compared to $8.1 million in the first quarter 2025. Clinical Solutions revenue was $2.1 million in the first quarter 2026, up 85% compared to $1.2 million in the first quarter 2025. Gross profit for the first quarter 2026 was $3.8 million, compared to $3.0 million in the first quarter 2025. Gross margin for the first quarter 2026 was 34.2%, compared to 30.7% in the first quarter 2025. The increase in gross margin was primarily driven by higher revenue. Operating expenses for the first quarter 2026 were $8.1 million, compared to $8.0 million in the first quarter 2025. The increase was primarily driven by higher spending in sales and marketing, resulting from higher headcount and increased marketing expenses, partially offset by lower general and administrative expenses attributable to lower stock-based compensation expense and professional fees. Net loss for the first quarter 2026 was $4.6 million, or negative $0.08 per diluted share, compared to $4.6 million, or negative $0.09 per diluted share, for the first quarter 2025. Adjusted EBITDA for the first quarter 2026 was negative $2.0 million, compared to negative $2.5 million for the first quarter 2025. Cash used in operating activities for the first quarter 2026 was $3.4 million, compared to $4.1 million of cash used in operating activities for the first quarter 2025. Free Cash Outflow was $3.6 million for the first quarter 2026, compared to $4.3 million for the first quarter 2025. A full reconciliation of these non-GAAP measures to the most comparable GAAP measures is included at the end of this release. Reaffirms 2026 Outlook Teknova reaffirms its fiscal 2026 outlook for revenue and Free Cash Outflow. The Company continues to anticipate total revenue of $42 million to $44 million for the fiscal year ending December 31, 2026 (“2026”). The Company also anticipates Free Cash Outflow of less than $10 million for 2026. Upcoming Investor Conference Attendance Craig-Hallum Institutional Investor Conference (Minneapolis, MN) Thursday, May 28, 2026 William Blair Growth Stock Conference (Chicago, IL) Thursday, June 4, 2026 Conference Call and Webcast Teknova will host a webcast and conference call on Wednesday, May 6, 2026, beginning at 6:00 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 genomics, molecular diagnostics, 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 defines 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 our expectations for 2026 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, 2025, 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 [email protected] +1 831-637-1100 Media Contact Jennifer Henry Senior Vice President, Marketing [email protected] +1 831-313-1259

Image source: The Motley Fool. Wednesday, May 6, 2026 at 6 p.m. ET President and Chief Executive Officer — Stephen Gunstream Chief Financial Officer — Matthew C. Lowell Vice President, Investor Relations — Jennifer Henry Need a quote from a Motley Fool analyst? Email [email protected] Jennifer Henry: Thank you, operator. Welcome to Alpha Teknova, Inc.'s first quarter 2026 earnings conference call. With me on today's call are Stephen Gunstream, Alpha Teknova, Inc.'s President and Chief Executive Officer, and Matthew C. Lowell, Alpha Teknova, Inc.'s Chief Financial Officer, who will make prepared remarks and then take your questions. As a reminder, the forward-looking statements that we make during this call, including those regarding business goals and expectations for the financial performance of the company, are subject to risks and uncertainties that may cause actual events or results to differ. Additional information concerning these risk factors is included in the press release the company issued earlier today and they are more fully described in the company's various filings with the SEC. Today's comments reflect the company's current views, which could change as a result of new information, future events, or other factors, and the company does not obligate or commit itself to update its forward-looking statements except as required by law. The company's management believes that in addition to GAAP results, non-GAAP financial measures can provide meaningful insight when evaluating the company's financial performance and the effectiveness of its business strategies. We will therefore use non-GAAP financial measures for certain of our results during this call. Reconciliations of GAAP to non-GAAP financial measures are included in the press release that we issued this afternoon, which is posted to Alpha Teknova, Inc.'s website and at sec.gov/edgar. Non-GAAP financial measures should always be considered only as a supplement to, and not as a substitute for or as superior to, financial measures prepared in accordance with GAAP. The non-GAAP financial measures in this presentation may differ from similarly named non-GAAP financial measures used by other companies. Please also be advised that the company has posted a supplemental slide deck to accompany today's prepared remarks. It can be accessed on the Investor Relations section of Alpha Teknova, Inc.'s website and on today's webcast. And now I will turn the call over to Stephen. Stephen Gunstream: Thank you, Jennifer. Good afternoon, and thank you, everyone, for joining us for our first quarter 2026 earnings call. It was a relatively straightforward quarter for us across the board, with revenue and operating expenses delivering in line with or better than our expectations. Revenue grew 13% compared to the same period last year, led by 85% growth in Clinical Solutions. Gross margin, operating expenses, and free cash outflow were in line with our expectations, including the planned incremental spend in sales and marketing. From a macro environment perspective, we continue to see stabilization across our end markets, and as we learn more about how our customers are planning for late-stage clinical trials and commercial production, we are growing increasingly confident in our ability to deliver long-term, sustainable, above-market growth. Building on that, I would like to provide a little more detail around our thoughts on the current macro environment. In the first quarter, we saw an increase in the number and total dollar value of orders over $25 thousand compared to the same period last year, which we believe indicates that some of our customers are shifting their focus from cash conservation to strategic execution. While there are still accounts focused on conserving capital, we believe this headwind has now been offset by an increase in customers placing orders to move their research and clinical studies forward. Notably, we are seeing growth in nearly every end market segment we serve, including life science tools, diagnostics, and biopharma. Moreover, some of our leading indicators, such as customer engagement and funnel health, provide us more confidence in a predictable market backdrop going forward. We are therefore encouraged that we began ramping our commercial investment at the beginning of 2026. As a reminder, the roughly $2 million annual increase in commercial spend is split between marketing and sales to increase lead generation activities, build lead qualification infrastructure, and onboard sales associates with experience in tools, diagnostics, and large pharma. I am happy to say that these initiatives are on track and that we should be able to see their impact on revenue by early 2027. We believe these investments, combined with the rebound in biotech funding and the progression of our customers' therapies and diagnostics towards commercialization, should position us for approximately 20% revenue growth in 2027. Operationally, we continue to focus on driving throughput, process improvements, automation, and software implementation. In the first quarter, we increased our high-volume bottle production by tripling our single-batch size and implementing an automated aseptic filling line. This project allows us to not only scale production volumes but also to reduce labor hours per unit. From a software perspective, we have now migrated 90 of our 3 thousand-plus paper batch records to digital, providing enhanced data analytics, increased visibility, better documentation quality, and improved standardization. We are fortunate to have dedicated engineering and software development teams on staff to lead these initiatives as we look to scale and achieve profitability. In the meantime, we remain focused on executing our plan by driving growth in Lab Essentials customer wallet share and increasing our active Clinical Solutions customer count. We are excited about the traction we are seeing so far in 2026 and believe the substantial investments we have made over the past three years have positioned the company to scale and generate significant value for our customers and stockholders alike. I will now hand the call over to Matthew to talk through the financials. Matthew C. Lowell: Thanks, Stephen. Good afternoon, everyone. As Stephen explained, revenue was up 13% for the first quarter of 2026 compared to the same quarter in the prior year. This was also the first Q1 in which we earned over $11 million in revenue in nearly three years. I am also very pleased with our progress on key profitability measures and cash usage. Overall, we delivered strong financial results for the first quarter of 2026. For revenue, Lab Essentials products are targeted at the research use only, or RUO, market and include both catalog and custom products. Lab Essentials revenue was $8.4 million in the first quarter of 2026, up 3% compared to $8.1 million in 2025. The increase in Lab Essentials revenue was attributable to higher average revenue per customer, partially offset by a decreased number of customers. Clinical Solutions products are made according to Good Manufacturing Practices, or GMP, quality standards, and are primarily used by our customers as components or inputs in the development and manufacture of diagnostic and therapeutic products. Clinical Solutions revenue was $2.1 million for the first quarter of 2026, an 85% increase from $1.2 million in the first quarter of 2025. The increase in Clinical Solutions revenue was attributable to an increased number of customers and, to a slightly lesser extent, higher average revenue per customer. We expect revenue per customer to increase over time when a subset of these customers ramp up their purchase volume as they move through the clinical phases. However, this metric can be affected by the addition of newer Clinical Solutions or GMP catalog customers, who typically order less. Just as a reminder, due to the larger average order size in Clinical Solutions compared to Lab Essentials, there can be more quarter-to-quarter revenue lumpiness in this category. Onto the income statement. Gross profit for the first quarter of 2026 was $3.8 million, compared to $3.0 million in the first quarter of 2025. Gross margin was 34.2% in the first quarter of 2026, up from 30.7% in the first quarter of 2025. The increase in gross profit was driven primarily by higher revenue. Operating expenses for the first quarter of 2026 were $8.1 million, and for the first quarter of 2025 were $8.0 million. The increase in 2026 was primarily driven by higher spending in sales and marketing resulting from higher headcount and increased marketing expenses, partially offset by lower general and administrative expenses attributable to lower stock-based compensation expense and professional fees. Net loss for the first quarter of 2026 was $4.6 million, or negative $0.08 per diluted share, compared to a net loss of $4.6 million, or negative $0.09 per diluted share, for 2025. Adjusted EBITDA, a non-GAAP measure, was negative $2.0 million for 2026, compared to negative $2.5 million for 2025. Capital expenditures for the first quarter of 2026 and 2025 were both $200 thousand. Free cash outflow, a non-GAAP measure which we define as cash provided by or used in operating activities, less purchases of property, plant, and equipment, was $3.6 million for the first quarter of 2026, compared to $4.3 million for 2025. This decrease compared to the prior year was due to lower cash used in operating activities. Turning to the balance sheet. As of 03/31/2026, we had $17.8 million in cash, cash equivalents, and short-term investments, and $13.2 million in total borrowings. 2026 outlook. Turning to our 2026 guidance and outlook, we are reiterating our 2026 total revenue guidance of $42 million to $44 million. At the midpoint, this implies approximately 6% revenue growth compared to 2025. As our underlying end markets continue to recover, we have seen improvement in orders of custom products from both biopharma and life science tools and diagnostics customers. Customer conversations about future 2026 custom product orders continue to be encouraging, and we have started to see more large orders, those greater than $25 thousand, but are waiting to see more durability before we consider changing our guidance for the year. As we have indicated before, due to the high percentage of fixed costs associated with our operations, we estimate that each additional dollar of revenue drops through at a marginal cash rate of approximately 70%, with some variability quarter to quarter in reported results due to GAAP accounting. We continue to expect gross margin in the mid-30s percentage range for the full year 2026. The company posted operating expenses of $8.1 million in Q1 2026, which reflects our scaled investment in sales and marketing, which we expect to be approximately $2 million for the full year 2026. Our expectation is that these investments will pay off as soon as the end of 2026, but more likely in 2027, in the form of double-digit revenue growth rates. At this higher spending level, we expect to become adjusted EBITDA positive in the range of $52 million to $57 million in annualized revenue. As customer end markets are stronger in 2027 and our stepped-up commercial activity bears fruit as expected, we should report a positive adjusted EBITDA quarter by 2027. The company continues to see a reduction in free cash outflow during the first quarter of 2026 compared to the same quarter in the prior year. While the company saw an increase in free cash outflow compared to Q4 2025, this is consistent with the company's expectations for the year and is higher due to certain larger payments typically occurring during the first quarter. We anticipate lower average quarterly free cash outflow for the remainder of the year. As such, the company continues to expect free cash outflow of less than $10 million for the full year 2026, even with the increased investment in our commercial capabilities. With that, I will turn the call back to Stephen. Stephen Gunstream: Thanks, Matthew. Overall, we were very pleased with the start to 2026 and the progress we have made against our strategic priorities. We believe the outlook for our end markets remains positive, and we are committed to executing on our strategy to help our customers accelerate the introduction of novel therapies, diagnostics, and other products that improve human health. We will now open the call for questions. Operator: Thank you. Please press 11 on your telephone and wait for your name to be announced. To withdraw your question, please press 11 again. Please stand by while we compile. Our first question comes from the line of Mackie Tau with Stephens. Your line is open. Mackie Tau: Hey. Good afternoon, and thank you for taking my questions. Great to hear about the updated macro outlook. I have heard some of your peers talk about maybe a little bit of bifurcation between earlier-stage biotech and later-stage biotech. I would love to get your sense of what you are hearing at this point from these individual customers and whether you are seeing a similar trend in your customer base. Thank you. Stephen Gunstream: Yeah, thanks, Ben. In some ways, yes, we are seeing some similarities. We had some nice large pharma growth in the quarter, but on the clinical side of our business, we did still see some of these earlier-stage phase one, phase two place some nice orders with us. A lot of that probably has to do with the work we have been doing with them for some time. In the very early stage, on the research in the Lab Essentials, there is a little softness there, but we have not seen it as much. It could just be some of the accounts that we are supporting today, but we are starting to get more customer engagement from these smaller biotechs, and it is looking pretty encouraging right now. Mackie Tau: As we think about your different end markets, it sounds like all of them are coming back together as one. Are there any that are leading the pack more so than others? Stephen Gunstream: Yeah. Like I just mentioned, we had some nice growth in large pharma in the quarter. We did get some nice growth on the diagnostic side as well and the tools and diagnostics, but particularly on the biotech side we had some nice orders come in there. We are seeing some growth there. I think, like I said, the biopharma as a whole is a little bit slower, but you are starting to see some growth there. There are certainly pockets where we expect that to increase throughout the year. Mackie Tau: I appreciate the color. Thank you. Operator: Our next question comes from the line of Brendan Smith with TD Cowen. Your line is open. Brendan Smith: Great. Thanks for taking the questions, and congrats on the quarter. Following up on the commentary regarding customers advancing through clinical development, do you have a sense, even broad strokes, what percent of customers are in that preclinical/phase one bucket versus those in phase three or approaching commercial? I am wondering how that funnel is looking at this point, especially if the funding environment continues to improve. Stephen Gunstream: Yeah, Brendan. It is not that different than what we put out in our slides for the 2025 full year. We are supporting approximately 70 therapies. There are five therapies in phase two or phase three that are nearing completion at the moment, and then 12 in phase one, and then the rest are preclinical. We would expect those numbers to increase as we go throughout this year. That is our strategy as you onboard more of these clinical customers, and certainly if biotech funding comes back, we would expect that to continue, and we have done that really since we started targeting these clinical customers back in 2020. Brendan Smith: Got it. And as a quick follow-up, we have started to see some increases in wet lab spending activity as a result of customers rolling out AI capabilities and needing to validate models and new targets. It feels early, but do you have any sense of this materializing in your customers' ordering patterns, and is there any reason why that would not be a notable tailwind for Alpha Teknova, Inc. over the coming quarters? Stephen Gunstream: Yeah. I think these AI data generation programs are significant, and it is lots of reagents. They are generating significant amounts of data. We are supporting many of the customers that are supporting the end users here to generate that data, or directly. So the standard products we offer in our catalog, products like LB broth for bacteria, or the buffers and things to purify proteins, I would expect that to be a tailwind for us. There are customers we are supporting that we are seeing pick up their spend with us for those reasons, but it is not yet significant or material. Operator: Thank you. Our next question comes from the line of Matthew Richard Larew with William Blair. Your line is open. Matthew Richard Larew: Nice upside in the quarter relative to the Street, but the guide was maintained. You referenced wanting to see more durability before changing the guide. It seems like more companies than normal have called out benefit from more days in the quarter that reverses later in the year. Was there any timing impact like that or any orders that got pulled forward into the print, or is it just an effort to be conservative given the broader macro picture? Matthew C. Lowell: Good question, Matt. We do have some of this phenomenon where we have business days impacts, particularly in the catalog portion of our business, which is about 60% of the total business. I would say that was not really a factor for Q1. It will be and usually is for Q4. We saw pretty typical ordering and delivery behavior in Q1, so I do not think that really impacted the quarter. As you noted, and I did as well, there is still macro uncertainty, and while we are off to a good start here, we are certainly optimistic, but not ready to increase our guidance range at this time. It is definitely something that we are evaluating each quarter, and it is encouraging to have this great start. Matthew Richard Larew: You brought up 2027 in your remarks and being in position for 20% revenue growth. If I look at TTM revenue, it has improved over a year ago, particularly on the Clinical Solutions side, and Lab Essentials has stabilized at least in the mid-single digits. From where we are today, what elements do you see improving the most to get to 20% in 2027? Stephen Gunstream: A couple of things come into play. First is an improving backdrop. We have seen biotech funding now two quarters ahead of where it has been. From past data, we think it is pretty similar this time that we will start seeing an impact with about a three- to four-quarter lag, and we are expecting to see that towards the end of this year. That will drive a portion of that growth, so the baseline is picking up a little bit. On the clinical side, we are supporting more customers, and more of them are moving later into the pipeline, including where we would expect either diagnostic or therapeutic commercial approval by the end of next year. Even moving from phase one to phase two or phase two to phase three or phase three into commercial will drive significant growth. That base is relatively small, and on the diagnostic side there are a couple in there, including on the leukocyte side, that we may be supporting larger volumes for next year. In addition, the investment we are making on the commercial side, both in marketing and in the field, will take six to twelve months to ramp up, and that will help us as well. Historically, Lab Essentials has grown 11% on average since 2008. I think we start to see that pick up a little bit, and combined with these other things, that should get us into that 20% range. Operator: Thank you. Our next question comes from the line of Matthew Hewitt with Craig-Hallum Capital Group. Your line is open. Matthew Hewitt: Good afternoon, and congratulations on the nice start to the year. Regarding Clinical Solutions, phenomenal Q1, up 85% year over year. Was there a larger order that drove some of that, or was it more broad-based as you noted several large orders? And how should we be thinking about cadence for that bucket over the remainder of the year? Stephen Gunstream: I will let Matthew touch on the cadence in a minute, but when you look at the customers we supported in Q1—and we have talked a lot about the lumpiness—the question is right: Is this just a lumpy quarter, or is this more broad-based? In this case, it is more broad-based. In fact, we had a fairly large customer last year order, and then we came over that, and we had a number of customers that we delivered for in Q1. I would say it is pretty positive that this one is not just a one-time lumpy piece for a quarter. I will let Matthew talk a little bit about the cadence for the rest of the year. Matthew C. Lowell: I would echo what Stephen said. We are feeling pretty good about the diversity in that part of the business in Q1 and also based on the discussions we are having now for the rest of the year. That is an area where we should continue to see results at these kinds of levels, let us say in the $2 million range per quarter or better, depending on how things go later in the year. That is definitely going to be an important component of growth this year. All to say that part is looking good, and we should continue to see good results there. Matthew Hewitt: Thank you. Switching gears a bit, with the investments you have been making—digitizing paper, creating larger batch sizes—as I think about your target 60% to 65% gross margins in a few years, how much of that comes from volume leverage versus these strategic initiatives? Matthew C. Lowell: That is a good question. I believe the single biggest driver, and it will continue to be, is volume growth. But we are not going to sit and rest on our laurels and wait for that to play out. There are lots of other things we can be doing and are doing. The example you gave is a good one, and they are meaningful. These are not trivial things. Sometimes they play out as productivity benefits where we see the benefit more as we grow than immediately in terms of cost reduction. It can show up as cost strength as we grow. We have that digitization and a lot of other projects always going on, and there is a never-ending set of opportunities. But I would still say the main driver is volume growth, and we are seeing that happen right now, and we are excited about it. Matthew Hewitt: Got it. Thank you. Operator: Please stand by for our next question. Our next question comes from the line of Matthew Moriarty Parisi with KeyBanc Capital Markets. Your line is open. Matthew Moriarty Parisi: Hi. This is Matthew Parisi on for Paul Knight. Congrats on the quarter, and thanks for the question. You mentioned the onboarding of new sales associates during the call. How long does that ramp period take? Stephen Gunstream: Typically, my experience is six to twelve months until you really start to see the impact. I mentioned that probably towards the end of this year we will be able to see it. We are starting to see some early indicators with more meetings and more engagement with some of the target accounts that we are after. It has been great to onboard them, and we are very happy we started in January. I think all is going to plan. Matthew Moriarty Parisi: Thank you. That is all for me. Operator: Ladies and gentlemen, I am showing no further questions in the queue. That concludes today's conference call. Thank you for your participation. You may now disconnect. Before you buy stock in Alpha Teknova, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alpha Teknova wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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Clinical Solutions revenue surged 85% year-over-year, driven by a broader base of customers advancing therapies through clinical phases rather than a single lumpy order. Management observed a shift in customer behavior from cash conservation to strategic execution, evidenced by an increase in orders exceeding $25 thousand. Operational efficiency improved through the implementation of automated aseptic filling and tripling batch sizes for high-volume bottle production. Digital transformation is underway with 90 of 3,000+ paper batch records migrated to digital systems to enhance data analytics and standardization. The company is seeing growth across nearly every end market segment, including life science tools, diagnostics, and biopharma, indicating a predictable market backdrop. A planned $2 million annual increase in commercial spend is being deployed to build lead generation infrastructure and onboard specialized sales associates. Management projects approximately 20% revenue growth in 2027, predicated on a three- to four-quarter lag following the recent rebound in biotech funding. The company expects to reach adjusted EBITDA positivity when annualized revenue reaches the $52 million to $57 million range, likely by 2027. Guidance for 2026 was maintained despite a strong Q1 as management seeks more evidence of durability in large-order trends before adjusting targets. Incremental revenue is expected to deliver a marginal cash drop-through rate of approximately 70% due to the high percentage of fixed operating costs. Commercial investments made in early 2026 are expected to yield material revenue impacts starting in early 2027 following a six- to twelve-month ramp period. Free cash outflow for the full year 2026 is expected to be less than $10 million, despite the stepped-up investment in commercial capabilities. The Clinical Solutions segment remains subject to quarter-to-quarter revenue lumpiness due to larger average order sizes compared to Lab Essentials. Gross margins are expected to remain in the mid-30s percentage range for the full year 2026, with volume growth cited as the primary driver for long-term expansion. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management noted that while some early-stage research shows softness, they are seeing encouraging engagement from smaller biotechs and growth in large pharma. Clinical orders remain healthy as customers move forward with established projects despite broader macro caution. AI-driven programs are generating significant data requiring large volumes of reagents, which management views as a long-term tailwind for catalog products like LB broth and buffers. While engagement is increasing, these AI-related orders are not yet considered a material driver of total revenue. The company is currently supporting approximately 70 therapies, with five in phase two or three nearing completion. Growth in 2027 is expected to be fueled by these therapies moving toward commercial approval and higher volume requirements. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

Alpha Teknova (NASDAQ:TKNO) reported first-quarter 2026 results that management said were largely in line with expectations, highlighted by double-digit revenue growth and a sharp increase in its Clinical Solutions business. President and CEO Stephen Gunstream said the company saw “a relatively straightforward quarter” and pointed to improving demand signals across multiple end markets. Chief Financial Officer Matt Lowell said revenue increased 13% year over year, marking “the first Q1 in which we earned over $11 million in revenue in nearly three years.” Growth was led by the company’s GMP-focused Clinical Solutions segment, while Lab Essentials posted modest gains. Lab Essentials revenue was $8.4 million, up 3% from $8.1 million a year earlier. Lowell attributed the increase to higher average revenue per customer, “partially offset by a decreased number of customers.” Clinical Solutions revenue was $2.1 million, up 85% from $1.2 million in the prior-year quarter. Lowell said the increase was driven by an increased number of customers and, to a lesser extent, higher average revenue per customer. → Berkshire Hathaway’s Record Cash Hoard: Why and What's Next? Lowell reminded investors that Clinical Solutions can be “more quarter-to-quarter revenue lumpiness” due to larger average order sizes, though management later characterized the quarter’s growth as broad-based rather than driven by a single order. Teknova’s gross profit rose to $3.8 million from $3.0 million in the year-ago quarter, while gross margin improved to 34.2% from 30.7%. Lowell said the increase in gross profit was driven “primarily by higher revenue.” → A Prada Payday: Is AMC Back in Style? Operating expenses were $8.1 million, up slightly from $8.0 million in the first quarter of 2025. Lowell said higher sales and marketing costs—driven by headcount and marketing expenses—were partially offset by lower general and administrative expenses due to reduced stock-based compensation and professional fees. Net loss was $4.6 million, or negative $0.08 per diluted share, compared with a net loss of $4.6 million, or negative $0.09 per diluted share, in the prior-year quarter. Adjusted EBITDA improved to negative $2.0 million from negative $2.5 million. → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% Gunstream said the company continues to see “stabilization across our end markets,” and noted an increase in both the number and total dollar value of orders greater than $25,000 compared with the prior-year period. He said Teknova believes this indicates some customers are shifting “from cash conservation to strategic execution.” Gunstream said the company is seeing growth in “nearly every end market segment we serve, including life science tools, diagnostics, and biopharma,” and cited customer engagement and funnel health as improving leading indicators. In response to an analyst question about a potential bifurcation between early-stage and late-stage biotech, Gunstream said Teknova saw “some nice large pharma growth” during the quarter and also received orders from earlier-stage clinical customers. He added that in the Lab Essentials business, “there is a little softness there,” but said customer engagement from smaller biotechs is improving. Gunstream also pointed to strength in diagnostics, particularly “on the liquid biopsy,” where he said the company received “some nice orders.” Gunstream outlined ongoing operational initiatives aimed at scaling production and improving efficiency. He said Teknova tripled single batch size for high-volume bottle production and implemented an automated aseptic filling line, which he said allows the company to scale volumes and reduce labor hours per unit. On software and digitization, Gunstream said Teknova has migrated 90% of its 3,000-plus paper batch records to digital, citing improved analytics, visibility, documentation quality, and standardization. Commercially, management reiterated that Teknova began ramping investment at the start of 2026, with an approximately $2 million annual increase split between marketing and sales. Gunstream said initiatives to increase lead generation, build lead qualification infrastructure, and onboard sales associates are “on track,” and he expects their impact on revenue by early 2027. In a later Q&A, he estimated new sales associate ramp time at “six to 12 months” before meaningful impact is seen, while noting early indicators such as more meetings and engagement with target accounts. Asked about the role of AI-driven data generation in customer ordering patterns, Gunstream said such programs are “significant” and require “lots of reagents.” He said Teknova supports customers involved in those workflows and expects it to be a tailwind, though he added it is “not yet…a significant material” driver. Teknova reiterated full-year 2026 revenue guidance of $42 million to $44 million, which Lowell said implies approximately 6% growth at the midpoint. Lowell said the company is seeing improved orders of custom products from biopharma and life science tools and diagnostics customers, along with more large orders above $25,000, but management wants to see more durability before adjusting guidance. Lowell said Teknova expects full-year 2026 gross margin in the “mid thirties % range.” He also said the company estimates that each incremental dollar of revenue drops through at a marginal cash rate of about 70%, given a high percentage of fixed costs, though results may vary quarter to quarter due to GAAP accounting. On profitability, Lowell said the company expects to become adjusted EBITDA positive at an annualized revenue run rate of $52 million to $57 million, and that if markets are stronger in 2027 and commercial investments perform as expected, Teknova “should report a positive Adjusted EBITDA quarter by the end of 2027.” In discussing longer-term growth, Gunstream said Teknova believes increased commercial investment, a rebound in biotech funding, and customers progressing toward commercialization could position the company for approximately 20% revenue growth in 2027. He cited a three-to-four-quarter lag between biotech funding improvements and Teknova’s results, expected clinical pipeline progress among customers, and incremental benefits from the stepped-up sales and marketing investment. On cash flow, free cash outflow was $3.6 million in the quarter, compared with $4.3 million in the first quarter of 2025. Capital expenditures were $0.2 million in both periods. As of March 31, 2026, Teknova reported $17.8 million in cash, cash equivalents, and short-term investments, and $13.2 million in total borrowings. Lowell said the company continues to expect free cash outflow of less than $10 million for full-year 2026, even with increased commercial investment, and anticipates lower average quarterly free cash outflow for the remainder of the year following larger first-quarter payments. During the Q&A, management also addressed the sustainability of Clinical Solutions growth. Gunstream said the quarter’s performance was “more broad-based,” and Lowell said he expects that segment to remain “in the $2 million range a quarter or better,” depending on how the year develops. Alpha Teknova, Inc (NASDAQ: TKNO) is a life science tools and reagents company that develops, manufactures and distributes proprietary products to support research, drug discovery and biomanufacturing. Its offerings target academic institutions, pharmaceutical and biotechnology firms, and diagnostic developers, with a focus on high-purity reagents and optimized workflows designed to accelerate molecular biology and protein science applications. The company's portfolio includes molecular biology reagents, cell culture buffers, in vitro translation kits, custom recombinant proteins, high-throughput screening buffers and other specialized formulations. The article "Alpha Teknova Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.