Alpha Teknova reported third‑quarter 2025 results that included a 9% year‑over‑year increase in revenue to $10.5 million, beating the consensus estimate of $10.28 million by $0.22 million. The company posted a net loss of $4.3 million, or –$0.08 per diluted share, a significant improvement over the –$0.15 per share loss reported in Q3 2024. The earnings beat on both revenue and earnings per share was driven by disciplined cost management and a favorable product mix shift toward higher‑margin catalog items.
Revenue growth was largely powered by the Lab Essentials segment, which grew 16% YoY to $8.3 million, reflecting strong demand for catalog reagents and a higher proportion of high‑margin sales. In contrast, the Clinical Solutions segment declined 13% to $1.7 million, a result of lower average revenue per customer amid funding delays in the biopharma sector. The company’s management noted that while the customer base in Clinical Solutions has expanded, the average deal size has contracted, contributing to the revenue dip.
Gross profit rose to $3.2 million, giving a gross margin of 30.7%, a dramatic jump from the 0.9% margin recorded in Q3 2024. The margin expansion is attributable to the higher mix of catalog sales, reduced impact of the $2.8 million inventory charge that weighed on the prior year, and improved pricing power in the core product lines.
Operating expenses fell to $7.2 million, down from $7.5 million in Q3 2024, largely due to a net reduction in general and administrative spending. Adjusted EBITDA improved to negative $1.6 million from negative $5.0 million, reflecting the combined effect of higher revenue, lower operating costs, and the elimination of the prior year’s inventory charge. Free cash outflow remained steady at $2.4 million, unchanged from the previous year.
Management reaffirmed its 2025 revenue guidance of $39 million to $42 million and its expectation of free cash outflow of less than $12 million. The company now expects full‑year results to be slightly below the midpoint of the revenue range, citing softness in the Clinical Solutions segment but confidence in continued growth in Lab Essentials and strategic acquisitions. CEO Stephen Gunstream emphasized the company’s ability to scale to over $200 million in annualized revenue without significant additional capital, while CFO Matthew C. Lowell highlighted the strong gross margin improvement and modest growth in custom biopharma products.
The earnings release was well received by investors, with analysts noting the company’s disciplined cost controls, margin expansion, and steady revenue growth as key factors supporting the positive outlook. Management’s focus on operational efficiency and strategic acquisitions signals confidence in sustaining the growth trajectory while navigating the biopharma funding environment.
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