Alpha Teknova Q2 Earnings Call Highlights

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.

“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.

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.

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 h...