Alpha Teknova, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the third quarter of 2026 was $12.7 million, a 22% increase compared to $10.5 million in the third quarter of 2025.
• Lab Essentials revenue was $9.0 million (up 9% year-over-year), and Clinical Solutions revenue was $3.2 million (up 86% year-over-year).
• Gross profit for the quarter was $4.8 million, compared to $3.2 million in the prior year period; gross margin improved to 38.0% from 30.7%.
• Operating expenses were $8.0 million, up from $7.2 million in the prior year, driven by higher sales and marketing spending due to increased headcount.
• Net loss was $3.5 million ($0.06 per diluted share), an improvement from $4.3 million ($0.08 per diluted share) in the prior year.
• Adjusted EBITDA was negative $1.0 million, improving from negative $1.6 million in the prior year.
• Cash used in operating activities was $1.3 million, down from $2.0 million in the prior year; Free Cash Outflow was $1.4 million, down from $2.4 million.
• Total cash and short-term investments stood at $16.6 million, with total borrowings at $13.2 million as of September 30, 2026.

Guidance and Future Outlook:

• The company raised its full-year 2026 revenue guidance to a range of $46 million to $48 million.
• The company reaffirmed its expectation for full-year 2026 Free Cash Outflow to be less than $8 million.
• Management cited increased purchases by small and mid-sized biotech customers and their contract manufacturers as an early indication of biotech funding improvements over the past four quarters.

Business Segments and Product Lines:

• Clinical Solutions segment showed significant growth, with revenue increasing 86% year-over-year to $3.2 million.
• The company launched the Fill-Tek Dispensing System, an expansion of its modular manufacturing platform that allows customers to order specific single-use bag sizes, quantities, and fill volumes across RUO, RUO+, and GMP grades without added turnaround time.

Market and Competitive Landscape:

• Growth was driven by increased sales to life science tools, diagnostics, and biopharma customers.
• The company noted a trend of increased custom product purchases from small and mid-sized biotech customers, signaling potential market recovery.

Risks and Challenges:

• Forward-looking statements highlight risks including potential delays or pauses in customer orders, supply chain and manufacturing uncertainties, and global economic or marketplace uncertainties related to conflicts in Ukraine and the Middle East.
• Risks also include inventory management, potential acquisitions, and the possibility that actual results may differ materially from expectations.

Management Commentary and Tone:

• CEO Stephen Gunstream described the results as "record revenue for the second consecutive quarter" and noted the positive trend in biotech funding.
• CFO Matt Lowell characterized the results as "excellent," highlighting the 22% revenue growth and significant improvements in Adjusted EBITDA and Free Cash Outflow.
• Management expressed satisfaction with the strengthened balance sheet and the flexibility gained from the recent equity offering.

Other Key Points:

• On October 22, 2026, the company closed an underwritten public offering of 9,200,000 shares at $5.00 per share, generating gross proceeds of $46.0 million and net proceeds of approximately $42.9 million.
• The offering welcomed a significant number of new investors to the shareholder base.
• The company will host a conference call and webcast on November 4, 2026, and will attend the Craig-Hallum Alpha Select Conference on November 17, 2026, and the Stephens Annual Investment Conference on November 18, 2026.