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1. Company Snapshot

1.a. Company Description

Alpha Teknova, Inc.provides critical reagents for life sciences market in the United States and internationally.Its reagents enable the discovery, development, and production of biopharmaceutical products, such as drug therapies, novel vaccines, and molecular diagnostics.


The company offers pre-poured media plates for cell growth and cloning; liquid cell culture media and supplements for cellular expansion; and molecular biology reagents for sample manipulation, resuspension, and purification.It serves life sciences market, including pharmaceutical and biotechnology companies, contract development and manufacturing organizations, in vitro diagnostic franchises, and academic and government research institutions.The company was founded in 1996 and is headquartered in Hollister, California.

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1.b. Last Insights on TKNO

Alpha Teknova's recent performance has been negatively impacted by uncertainty surrounding its upcoming Q4 and full-year 2024 financial results, scheduled to be reported on March 4, 2025. The lack of visibility into the company's recent financial performance has likely contributed to investor caution. Additionally, the company's reliance on critical reagents for novel therapies, vaccines, and molecular diagnostics may be exposed to fluctuations in demand and pricing pressure, further weighing on the stock.

1.c. Company Highlights

2. Teknova's Q3 2025 Earnings: A Strong Foundation for Growth

Teknova reported revenue of $10.5 million, a 9% increase from $9.6 million in Q3 2024, driven by a 16% growth in Lab Essentials products. Gross profit was $3.2 million, with a gross margin of 30.7%. The net loss was $4.3 million, and the actual EPS was -0.08, beating estimates of -0.09384. The company's gross margins are up 600 basis points year-to-date, largely driven by scale, as noted by Matt Lowell, "We're working on projects to improve efficiency, and our high fixed cost, low variable cost mix in our cost profile will continue to drive strong margin performance."

Publication Date: Nov -20

📋 Highlights
  • Revenue Growth:: Q3 2025 revenue increased 9% to $10.5M, with Lab Essentials driving 16% sales growth.
  • Clinical Solutions Decline:: Revenue fell 13% due to lower average revenue per customer, despite customer base diversification.
  • Gross Margin Expansion:: Year-to-date gross margin improved 600 basis points to 30.7%, driven by scale and operational efficiency.
  • 2025 Guidance:: Revenue forecast of $39M–$42M, with catalog product growth in mid-teens and gross margin benefits from fixed-cost structure.
  • Market Positioning:: 75% of revenue growing in low double digits, 25% in mid-20s, targeting 20–25% top-line growth as therapies commercialize.

Revenue Growth Drivers

The company's Lab Essentials products drove revenue growth, with a 16% increase in sales. Clinical Solutions revenue decreased by 13% due to lower average revenue per customer. However, Stephen Gunstream noted that the company has increased and diversified its Clinical Solutions customer base, which will translate to significant revenue growth as therapies and diagnostics move towards commercialization.

Operational Efficiency and Outlook

The company has made investments in distributor management, purchasing integration, and price optimization, which have contributed to its operational efficiency. Teknova reiterated its 2025 total revenue guidance of $39 million to $42 million and expects revenue from sales of catalog products to grow in the mid-teens. Analysts estimate next year's revenue growth at 9.8%.

Valuation Metrics

With a P/S Ratio of 5.94 and an EV/EBITDA of -16.88, the market is pricing in significant growth expectations. The company's ROE is -23.53%, and the ROIC is -17.62%, indicating that the company is still in a growth phase and not yet profitable. The Net Debt / EBITDA is -0.86, indicating a healthy debt position.

Future Prospects

Teknova is optimistic about its long-term outlook, expecting to achieve sustainable 20% to 25% top-line growth as therapies and diagnostics migrate from research to commercialization. The company is also driving efficiencies in various areas, including operational, IT, and commercial processes, which will help drive top-line growth and continue to optimize its processes to achieve its goals.

3. NewsRoom

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Alpha Teknova (NASDAQ:TKNO) Shares Down 1.3% – Here’s What Happened

Nov -29

Source: defenseworld.net

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Alpha Teknova, Inc. (TKNO) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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Teknova Reports Third Quarter 2025 Financial Results

Nov -06

Source: globenewswire.com

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Teknova to Report Third Quarter 2025 Financial Results on November 6, 2025

Oct -28

Source: globenewswire.com

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Alpha Teknova, Inc. (TKNO) Q2 2025 Earnings Call Transcript

Aug -09

Source: seekingalpha.com

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Teknova Reports Second Quarter 2025 Financial Results

Aug -07

Source: globenewswire.com

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Teknova to Report Second Quarter 2025 Financial Results on August 7, 2025

Jul -24

Source: globenewswire.com

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Alpha Teknova, Inc. (TKNO) Q1 2025 Earnings Call Transcript

May -10

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.79%)

6. Segments

Lab Essentials

Expected Growth: 8.5%

Lab Essentials from Alpha Teknova, Inc. exhibits 8.5% growth driven by increasing demand for life science research tools, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, quality, and customer satisfaction contributes to its growth momentum.

Clinical Solutions

Expected Growth: 9.95%

Alpha Teknova's Clinical Solutions segment growth of 9.95% is driven by increasing demand for diagnostic testing, expansion into new markets, and strategic partnerships. Additionally, the company's focus on developing innovative products and services, such as its proprietary Teknova brand, has contributed to revenue growth.

Other

Expected Growth: 8.95%

Alpha Teknova's 8.95% growth is driven by increasing demand for its proprietary RNA sequencing products, expansion into new markets, and strategic partnerships. The company's focus on innovation, quality, and customer satisfaction has led to strong revenue growth and market share gains.

7. Detailed Products

Nucleic Acid Purification

Alpha Teknova's Nucleic Acid Purification products provide high-quality DNA and RNA purification kits and reagents for various applications, including PCR, sequencing, and gene expression analysis.

Protein Purification

Alpha Teknova's Protein Purification products offer a range of kits and reagents for protein purification, including affinity purification, size exclusion chromatography, and ion exchange chromatography.

Cell Culture Media

Alpha Teknova's Cell Culture Media products provide a range of serum-free and serum-containing media for cell culture applications, including cell therapy, vaccine production, and bioproduction.

Molecular Biology Reagents

Alpha Teknova's Molecular Biology Reagents products offer a range of reagents and enzymes for molecular biology applications, including PCR, DNA sequencing, and gene expression analysis.

Custom Manufacturing

Alpha Teknova's Custom Manufacturing services provide customized manufacturing of bioreagents and assay kits for various applications, including diagnostic and research applications.

Bioprocess Development

Alpha Teknova's Bioprocess Development services provide process development and optimization for biopharmaceutical manufacturing, including cell line development, process optimization, and scale-up.

8. Alpha Teknova, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Alpha Teknova, Inc. faces moderate threat from substitutes due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

Alpha Teknova, Inc. has a high bargaining power of customers due to the presence of large and established customers who can negotiate prices and terms.

Bargaining Power Of Suppliers

Alpha Teknova, Inc. has a low bargaining power of suppliers due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

Alpha Teknova, Inc. faces a moderate threat of new entrants due to the presence of barriers to entry and the company's established market position.

Intensity Of Rivalry

Alpha Teknova, Inc. operates in a highly competitive industry with intense rivalry among existing competitors, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 14.32%
Debt Cost 4.79%
Equity Weight 85.68%
Equity Cost 5.89%
WACC 5.73%
Leverage 16.72%

11. Quality Control: Alpha Teknova, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Cyclo Therapeutics

A-Score: 3.8/10

Value: 8.0

Growth: 3.4

Quality: 5.0

Yield: 0.0

Momentum: 5.5

Volatility: 1.0

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Assertio

A-Score: 3.4/10

Value: 9.2

Growth: 2.7

Quality: 4.5

Yield: 0.0

Momentum: 1.0

Volatility: 3.0

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TherapeuticsMD

A-Score: 3.2/10

Value: 7.3

Growth: 4.8

Quality: 5.0

Yield: 0.0

Momentum: 0.5

Volatility: 1.7

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Emergent BioSolutions

A-Score: 3.2/10

Value: 6.5

Growth: 1.3

Quality: 5.8

Yield: 0.0

Momentum: 5.0

Volatility: 0.7

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Alpha Teknova

A-Score: 3.2/10

Value: 6.6

Growth: 1.3

Quality: 4.3

Yield: 0.0

Momentum: 5.5

Volatility: 1.3

1-Year Total Return ->

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Rockwell Medical

A-Score: 2.6/10

Value: 6.4

Growth: 4.2

Quality: 3.4

Yield: 0.0

Momentum: 0.5

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.8$

Current Price

4.8$

Potential

-0.00%

Expected Cash-Flows