TKNO

• Overall Q2 2026 Performance • Total revenue grew 18% YoY to $12 million, the highest quarterly revenue in Technova's 30-year history, with broad-based growth (no single customer represents more than 7% of total revenue) • Free cash outflow reached its lowest level since the company's 2021 IPO, and gross margin improved 140 basis points YoY to 40.1% • Net loss narrowed to $3.2 million ($0.06 per diluted share) from $3.6 million ($0.07 per diluted share) in Q2 2025

• Market Growth Dynamics • Growth was achieved across all major target markets, with the sole exception of cell and gene therapy accounts, which declined partially due to order timing • Excluding cell and gene therapy, biopharma (including biotech, large pharma, and CDMOs) grew significantly, led by custom product sales, and the company maintained strong performance in the liquid biopsy market • Catalog sales grew through improved distributor engagement, with overall catalog revenue up low double digits YoY

• AI Product Innovation (BuildTech) • The company soft launched BuildTech, an AI-powered custom product order configurator trained on 30 years of Technova's manufacturing experience • The tool reduces the custom product quote process from multiple weeks to a few business days by eliminating iterative back-and-forth between customers and internal teams, and supports starting with partial information, uploading reference files, and designing multiple products in one session • The company has already received quote requests from customers that previously only ordered catalog products, and will continue adding new features including instant quoting, saved accounts, and customization of existing catalog products

• Commercial Investment Progress • Investments in the commercial organization initiated in January 2026 (including expanded field sales and new lead generation systems) are performing on or ahead of plan, enabling access to high-profile accounts that were previously out of reach

• 2027 Growth Tailwinds • Technova products support manufacturing for over 70 therapies and diagnostics in clinical trials, with at least one expected to reach commercialization by the end of 2027; commercialization typically increases customer purchase value by ~10x vs Phase 3 and ~30x vs Phase 1 • Biotech funding has increased over the past three quarters compared to the prior year, and with a historical 4-quarter lag between funding and revenue recognition, this is expected to drive positive revenue impact in late 2026 or early 2027

• 2026 full-year total revenue guidance was raised to $45 million to $47 million, up from the prior range of $42 million to $44 million; at the new midpoint, this represents 14% year-over-year revenue growth, up from 6% at the prior midpoint
• 2027 full-year revenue guidance remains unchanged, with management maintaining a target in the low $50 million range
• Full-year 2026 gross margin is expected to land in the mid-to-upper 30% range
• Full-year 2026 operating expenses are expected to be approximately $2 million for the stepped-up sales and marketing investments, with quarterly operating expenses expected to be at least $8 million through the end of 2026
• Full-year 2026 total free cash outflow is expected to be less than $8 million, even with increased commercial investments and potential higher capital expenditures in the second half of 2026
• Adjusted EBITDA positivity is expected to occur when annualized revenue reaches $52 to $57 million; if 2027 end markets are strong and commercial investments deliver as expected, the company could reach positive adjusted EBITDA on a quarterly basis before the end of 2027

Technova operates two core product segments. The first is Lab Essentials, which serves the Research Use Only (RUO) market with both catalog and custom products. In Q2 2026, Lab Essentials generated revenue of $9.2 million, an 18% increase from $7.8 million in Q2 2025, contributing approximately 76.7% of total company revenue. Growth was driven by higher average revenue per customer, with a slight contribution from an increased number of total customers. The second segment is Clinical Solutions, which produces products manufactured under GMP quality standards for use as inputs in diagnostic and therapeutic product development and manufacturing. In Q2 2026, Clinical Solutions generated revenue of $2.4 million, an 18% increase from $2.1 million in Q2 2025, contributing approximately 20% of total company revenue. Growth came from an increased number of customers, which was partially offset by lower average revenue per customer, a dynamic expected to reverse as newer smaller customers ramp up purchase volumes as they progress through clinical trials. Total company revenue for Q2 2026 was $12 million, a record high and 18% year-over-year growth.

• Cell and gene therapy order volumes have been muted so far in 2026, creating drag on overall biopharma revenue
• Clinical Solutions revenue is subject to quarter-to-quarter lumpiness due to the segment's larger average order size
• Biotech funding improvements will not flow through to revenue until late 2026 at the earliest, per the historical 4-quarter lag, and these gains are not yet included in 2026 guidance
• Forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from current expectations, as detailed in the company's SEC filings
• M&A opportunities are dependent on market conditions and seller valuation expectations, and there is no guarantee that attractive opportunities will be found on acceptable terms

Q: What visibility do you have into the Q3/Q4 order funnel for biopharma/CDMOs, and is the improved biotech funding already reflected in the new guidance? / A: The current order funnel is strong, but the biotech funding improvements have not yet started flowing through to revenue, and none of this potential growth is factored into the 2026 back half guidance. Cell and gene therapy remains muted outside of one small order pushed from Q2 to Q3, but there is no risk of that order being pushed further out. Growth is currently coming from large pharma, CDMOs, and general biotech, with no unexpected deviations from planned trends.

Q: Do you expect to charge customers for BuildTech, and what impact will it have on revenue? / A: BuildTech is not a monetized standalone product; there is no upfront charge for customer use. The tool's value comes from streamlining internal processes, reducing the time required to generate custom quotes, and attracting new custom product orders from customers that previously only purchased catalog products. It is expected to drive future revenue growth by expanding the company's custom business, rather than generating direct fees.

Q: What is driving the increase in average revenue per customer in the Lab Essentials segment? / A: Overall Lab Essentials revenue grew 18% YoY, while catalog sales (which make up ~60% of total company revenue) grew only low double digits. This means the custom product side of Lab Essentials grew significantly faster than catalog, and the higher average order size for custom products is the primary driver of increased average revenue per customer. Most of this custom growth is coming from tool developers in liquid biopsy and spatial biology, along with preclinical work.

Q: Is the company still pursuing inorganic growth, and what types of targets are you looking for? / A: The company has sufficient liquidity (cash + revolver access) to fund organic growth to cash flow positive, and is actively evaluating M&A opportunities. Management is prioritizing targets that expand the company's geographic distribution footprint, and add complementary product lines, particularly complementary reagents in categories like proteins. The company will only pursue deals that make strategic and financial sense at the right valuation.

Q: When will benefits from the 2026 commercial investments start hitting revenue, and what form will those benefits take? / A: The commercial expansion (new field sales team and new AI-powered lead generation tools) is on track to meet or beat plan. The investments are focused on large, complex accounts that require longer sales cycles, so revenue benefits are not expected until Q1 2027. The expected benefits include more new account wins, higher funnel conversion, and larger deal sizes.