Alpha Teknova, Inc. Q4 FY2025 earnings call

• 2025 was a year of strong execution with top - line revenue growth accelerating to 7%. Catalog product sales grew in low double digits. Clinical product customers increased to 60, 25% more than 2024. Delivered ~95% of products on time. Beat gross margin and adjusted EBITDA targets with $10 million cash use vs $12 million guidance. • Saw inflection point in growth strategy: critical supplier of GMP - grade reagents to emergent therapies/diagnostics; research - grade reagents to large diverse customers; expected 60 - 65% gross margins and 25 - 30% adjusted EBITDA margins by 2026. • GMP - grade reagents: critical supplier to 60 clinical customers (50 biopharma - related), supporting at least 70 therapies, 5 in phase two or later and 12 in phase one at end of 2025, expecting at least one commercial therapy by end of 2027. • Research reagents: built diverse predictable business with low double - digit growth, over 3,000 customers, 95% retention rate, 18% top 10 customer revenue. Plan to streamline order - to - purchase and expand private label manufacturing. • Anticipate operating leverage as revenue increases, expect to be adjusted EBITDA positive by end of 2027. • Catalysts: invest $2 million in commercial capabilities, biotech funding uptick may lead to biopharma - related revenue growth in Q4 2026, therapies/diagnostics supported may get FDA approval in 2027, opportunity to expand product portfolio via collaborations/acquisitions.

In 2025, total revenue was $40.5 million, up 7% from 2024. LabEssentials products: ~75% of revenue from catalog in 2025, full - year revenue $31.0 million, up 7% from 2024; ~25% from custom. Clinical solutions products: ~90% of revenue from custom in 2025, full - year revenue $7.7 million, up 8% from 2024; ~10% from catalog. Fourth quarter 2025 LabEssentials revenue $6.8 million (same as 2024), Clinical solutions revenue $2.7 million, up 47% from 2024. Gross profit in fourth quarter 2025 was $3.2 million vs $2.1 million in 2024; full - year gross profit $13.4 million vs $7.2 million in 2024. Gross margin in fourth quarter 2025 32.5% vs 23.0% in 2024; full - year 33.2% vs 19.2% in 2024. Operating expenses in fourth quarter 2025 $7.9 million vs $7.8 million in 2024; full - year 2025 $30.4 million vs $33.4 million in 2024. Net loss in fourth quarter 2025 $4.8 million vs $5.7 million in 2024; full - year 2025 $17.3 million vs $26.7 million in 2024. Adjusted EBITDA in fourth quarter 2025 negative $1.8 million vs negative $3.2 million in 2024; full - year 2025 negative $6.7 million vs negative $14.5 million in 2024. Free cash flow in fourth quarter 2025 negative $0.8 million vs negative $1.5 million in 2024; full - year 2025 negative $9.8 million vs $13.5 million in 2024.

• 2026 total revenue guidance 42 million to 44 million, midpoint implies ~6% growth from 2025. • Expect gross margin in mid - 30s in 2026. • Increase sales and marketing investment by ~$2 million in 2026, expect adjusted EBITDA positive in $52 - $57 million annualized revenue range. • 2026 guidance doesn't include potential biotech funding impact yet. • Aim to be adjusted EBITDA positive by end of 2027, need ~13 - 14 million per quarter revenue at midpoint.

Q: Brendan Smith with TD Cowan asked about emerging segments and $2 million investment.

A: Part of commercial investment, bringing in people with customer relationships, building branding, and doing more private labeling for existing customers.

Q: Brendan Smith also asked about four - quarter lag from biopharma funding changes.

A: Custom biopharma segment most affected, historically 25% of revenue, four - quarter lag on up, maybe faster down, not built into 2026 plan.

Q: Matt LaRue with William Blair asked about adjusted EBITDA target.

A: By end of 2027, need ~13 - 14 million per quarter revenue, excited about investments, timing is challenge, see therapies and diagnostics close to commercialization, biotech funding, and marketing as ways to get there.

Q: Matt LaRue asked about RUO to GMP customer transition.

A: Supporting 60 clinical customers, 50 have purchased over $5,000 in 2025, supporting 70 therapies, 5 in phase two or later, 12 in phase one, step - up from phase one to commercial is 30 - fold, late - stage phase two/three to commercial is 10 - fold.

Q: Matt Hewitt with Craig Hallam asked about average revenue per customer down.

A: Therapy dependent, early - stage therapies have lower spend, as therapies move through pipeline spend increases, clinical trials take time, FDA guidance changes may impact.

Q: Matthew Parisi with KeyBank Capital Markets asked about Celengene customers.

A: 24% of total revenue in 2025 came from cell and gene therapy - related customers, but exact number of Celengene customers not provided immediately.