Alpha Teknova, Inc. (TKNO) reported fourth‑quarter and full‑year 2025 results that exceeded revenue expectations and improved profitability. Total revenue for the year was $40.5 million, a 7 % increase from $37.7 million in 2024, while fourth‑quarter revenue reached $10.0 million, up 8 % from $9.3 million a year earlier. Gross profit rose to $13.4 million, giving a gross margin of 33.2 % versus 19.2 % in 2024. Operating expenses fell to $30.4 million, a $2.1 million reduction from the prior year after excluding non‑recurring charges. Earnings per share of $-0.09 matched the consensus estimate of $-0.09, giving the company a neutral earnings beat.
Year‑over‑year revenue growth was driven by a 47 % jump in Clinical Solutions sales in the fourth quarter and low‑double‑digit growth in catalog product revenue, as noted by CEO Stephen Gunstream. The company also increased its customer base for clinical products to 60, a 25 % rise from 2024, and maintained an on‑time delivery rate of approximately 95 %. Operating expenses were largely controlled, with fourth‑quarter operating costs of $7.9 million, supporting the margin expansion.
Management highlighted the impact of recent capital investments on commercial capabilities. "After another successful year of disciplined execution against our strategic objectives, we've decided to further invest in our commercial capabilities this year," said Gunstream. CFO Matt Lowell added, "We delivered strong financial results in 2025 compared to 2024, including an acceleration of top line growth and continued significant improvement in Adjusted EBITDA and Free Cash Outflow." The company also noted that it supported 5 therapies in Phase II or later and 12 in Phase I at year‑end, up from 3 and 10 in 2024.
For 2026, Alpha Teknova guided total revenue to $42–$44 million, slightly below analyst consensus of about $45 million, and projected free cash outflow of less than $10 million. The company reiterated its goal of becoming adjusted EBITDA positive by the end of 2027, citing the improving biotech funding environment. "As we begin to realize the benefits of the substantial capital investments we've made in recent years, and amid signs that the biotech funding environment is likely to continue to improve, we believe that additional and targeted commercial efforts should enable us to become Adjusted EBITDA positive by the end of 2027," Gunstream said.
Market reaction to the earnings release was muted, with after‑hours trading showing limited movement. Analysts noted that the guidance fell short of consensus estimates and that the company continues to burn cash, tempering enthusiasm despite the solid margin expansion. Investors are focusing on the company’s ability to translate its commercial investments into sustained revenue growth and profitability.
Alpha Teknova’s results underscore a strategic shift toward investment in commercial capabilities, which is expected to drive faster growth and margin expansion in the medium to long term. The company’s ability to maintain high gross margins of 60 % to 65 % and target adjusted EBITDA margins of 25 % to 30 % positions it well for future profitability, provided the biotech funding environment continues to improve.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.