UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40538 ALPHA TEKNOVA, INC. (Exact name of registrant as specified in its charter) Delaware 94-3368109 (State or other jurisdiction ...

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $10.3 million, a 7% increase from $9.6 million in Q2 2024, marking the fourth consecutive quarter of year-over-year growth [13][19] - Adjusted EBITDA improved to negative $800,000, the best quarterly result since going public in mid-2021, compared to negative $2.6 million in Q2 2024 [8][18] - Gross profit increased to $4 million with a gross margin of 38.7%, up from 29.2% in Q2 2024, driven by manufacturing efficiency gains [16][17] Business Line Data and Key Metrics Changes - Lab Essentials revenue was $7.8 million, a 2% increase from $7.6 million in Q2 2024, attributed to an increased number of customers [14] - Clinical Solutions revenue rose to $2.1 million, a 32% increase from $1.6 million in Q2 2024, also due to an increased number of customers [15][16] Market Data and Key Metrics Changes - Revenue from catalog products, which represents about 60% of annual revenue, grew in the low double digits year-over-year, aligning with historical growth rates from 2009 to 2019 [9][10] - The growth in catalog products was driven by key accounts in large pharma and life science tools, indicating above-market growth rates [10] Company Strategy and Development Direction - The company aims to be a leader in essential research reagents and to support emerging therapeutic developers through custom research and clinical grade reagents [9][12] - Inorganic growth opportunities are being pursued, including collaborations and acquisitions to enhance product offerings and operational scale [12][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook for end markets, despite challenges faced by small to mid-sized biotech customers [11][24] - The company reiterated its 2025 total revenue guidance of $39 million to $42 million, expecting continued growth in catalog products while custom products may see lower growth due to macroeconomic conditions [19][20] Other Important Information - The company reduced its headcount by about 40% from its peak, cutting annual operating expenses by approximately $18 million over the past three years [6] - Free cash flow for Q2 2025 was negative $2.3 million, an improvement from negative $3 million in Q2 2024 [18] Q&A Session Summary Question: How has the company managed through headwinds in the biotech funding landscape? - Management noted that while early-stage small to mid-sized biotech companies are struggling, the company has balanced losses with expected spending from larger companies and later-stage therapies [26][27][30] Question: Can you elaborate on the inorganic opportunities and gaps in the product portfolio? - The company is focusing on collaborations with smaller companies and potential acquisitions to fill gaps in upstream products like cell culture media and transfection reagents [31][32] Question: How is the RUO Plus initiative trending? - The initiative is performing as anticipated, providing flexibility for customers transitioning to clinical applications [36] Question: What are the expectations for Clinical Solutions revenue patterns? - Management indicated that revenue in Clinical Solutions can be lumpy, with no significant large orders affecting Q2 results, and that the business is currently in a normal range [38][75] Question: What are the key factors driving customer spending decisions in the current environment? - Customers are looking for predictability and stability, with recent positive engagement suggesting potential recovery in spending [50][51] Question: How has the company's sales force and online presence evolved? - The company has shifted from a reactive to a proactive approach in attracting new customers, contributing to growth despite macroeconomic challenges [56][59] Question: What are the expectations for gross margins in the second half of the year? - Management expects gross margins to remain lower than Q2 but anticipates continued improvements in efficiency and potential upside in the long term [61][66]

Financial Performance - Q2 2025 - Total revenue for Q2 2025 increased by 7% year-over-year, reaching $103 million[20] - Clinical Solutions revenue increased significantly by 32% compared to Q2 2024[21] - Gross margin improved from 292% in Q2 2024 to 387% in Q2 2025[23] - Adjusted EBITDA improved from a loss of $26 million in Q2 2024 to a loss of $08 million in Q2 2025[26] - Free cash flow improved from a negative $30 million in Q2 2024 to a negative $23 million in Q2 2025[28] Revenue Breakdown - 2024 - Catalog products accounted for approximately 60% of total revenue in 2024[14, 15] - Custom products represented about 35% of total revenue in 2024, with biopharma contributing 70% of custom revenue and 25% of total revenue[14, 15] - Other revenue, including services and shipping, made up roughly 5% of total revenue in 2024[14, 15] Customer Migration and Spending - Customers purchasing GMP reagents spent 44 times more annually compared to catalog-only customers in 2024[17] - 58% of 2024 revenue came from custom and/or clinical accounts[17] - 27% of 2024 revenue was generated from Cell and Gene Therapy (CGT) customers[17] 2025 Outlook - The company estimates total revenue between $39 million and $42 million, representing a 7% year-over-year increase at the midpoint[41] - The company is targeting a free cash outflow of less than $12 million for 2025[41] - The company estimates an annualized revenue range of $50 million to $55 million to achieve Adjusted EBITDA break-even[41]

Exhibit 99.1 Teknova Reports Second Quarter 2025 Financial Results Matt Lowell, Teknova's Chief Financial Officer, added, "Compared to 2024, we delivered 7% revenue growth in the second quarter 2025 along with significant improvements in adjusted EBITDA and free cash outflow. We believe the Company is well positioned to maintain its momentum. We therefore reiterate our 2025 revenue guidance of $39-42 million and continue to anticipate full-year free cash outflow of less than $12 million," he explained. Corp ...

Core Viewpoint - Alpha Teknova, Inc. is set to report its financial results for the second quarter of 2025 on August 7, 2025, after market close, highlighting its ongoing role in the life sciences industry as a producer of critical reagents for novel therapies and diagnostics [1]. Group 1 - Teknova will host a webcast and conference call on August 7, 2025, at 5 p.m. Eastern Time, providing access through its Investor Relations section [2]. - The webcast will be available for replay on the company's website approximately two hours after the event [2]. Group 2 - Founded in 1996, Teknova specializes in manufacturing critical reagents for the life sciences sector, aiming to accelerate the discovery and development of new therapies [3]. - The company offers customizable solutions for various stages of the workflow, supporting sectors such as molecular diagnostics and synthetic biology [3]. - Teknova operates from a 180,000 square feet facility in Hollister, California, utilizing a modular manufacturing platform designed by experts to produce foundational ingredients for next-generation therapies [3].

Summary of Technova Conference Call Company Overview - **Company**: Technova - **Industry**: Life Sciences, specifically reagents for biotech, pharma, and diagnostics - **Founded**: 1996 by a scientist from Genentech - **Public Offering**: Took the company public in February 2021 Key Points and Arguments - **Market Position**: Technova is a leading provider of reagents for the life science community, serving over 3,000 customers in the U.S. [3][4] - **Growth Trajectory**: The company has historically grown at 12% since February 2009 and aims for a top-line growth of 20-25% due to clinical programs in the pipeline [4][47] - **Revenue Potential**: Technova is positioned to scale its business to $200-250 million in revenue without significant additional capital expenditures (CapEx) [4][41] - **Gross Margin**: 70% of every additional dollar in revenue contributes to the bottom line, indicating strong profitability potential [5][56] - **Customer Retention**: The company boasts a 95% retention rate of its customer base year on year, making it difficult for customers to switch suppliers [53] Product Offerings - **Product Categories**: - Catalog products (60% of business) for general R&D and academic use [16] - Custom products (35% of business), with 25% of that being biopharma-related [18] - **Growth in Custom Products**: Custom biopharma products grew by 40% last year, indicating strong demand [18] - **Speed of Delivery**: Technova can deliver research-use products in 2-3 weeks and custom GMP products in 4-8 weeks, significantly faster than competitors who may take 4-8 months [28][29] Competitive Advantage - **Customization and Quality**: Technova focuses on providing high-quality, customized reagents quickly, which is a gap in the market compared to larger players [10][19] - **Modular Manufacturing**: The company employs a modular manufacturing approach, allowing for flexibility in production sizes and formulations [25][27] - **Customer Service**: High levels of customer service and support, reflected in a net promoter score in the seventies [22] Financial Outlook - **Capital Position**: Technova had $26 million in cash at the end of Q1 and an untapped revolving line of credit, providing a solid financial foundation [61] - **Path to Profitability**: Adjusted EBITDA breakeven is expected at $50-55 million in revenue, with cash flow positive anticipated shortly thereafter [62] Industry Context - **Biotech Environment**: The company is navigating a challenging biotech funding environment but continues to gain clinical customers, projecting a 15% growth in this segment by 2025 [52] - **Regulatory Impact**: Technova feels insulated from tariff impacts due to its U.S.-based manufacturing and limited reliance on foreign raw materials [49][50] Future Strategies - **Partnerships and Collaborations**: Technova is looking to expand partnerships, such as the recent collaboration with Pluristics for cryopreservation media, to enhance its product offerings [45][58] - **Focus on Emerging Therapies**: The company aims to support the growing complexity in bioprocessing for therapies like cell and gene therapy, which require more customized solutions [36][39] Conclusion - **Long-term Growth**: Technova is positioned for sustainable growth with a strong foundational business, significant investments already made, and a clear strategy to scale operations without the need for further major investments [47][48]

PART I. FINANCIAL INFORMATION [Condensed Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Condensed%20Financial%20Statements%20(Unaudited)) Unaudited Q1 2025 financials show revenue up 5.4% to $9.8M and net loss reduced to $4.6M, with key notes - In January 2024, the company implemented a workforce reduction of approximately **35 positions**, incurring **$1.3 million** in related costs for severance and termination benefits, which were recorded in Q1 2024[32](index=32&type=chunk) - On March 3, 2025, the company entered into a Second Amended and Restated Credit Agreement with MidCap Financial Trust, providing a **$28.245 million** credit facility, including a **$23.245 million** term loan and a **$5.0 million** revolver, maturing on March 1, 2030[52](index=52&type=chunk)[53](index=53&type=chunk)[56](index=56&type=chunk) - In January 2024, the company repriced **1,631,016** outstanding stock options, resulting in an incremental stock-based compensation expense of **$0.9 million**[64](index=64&type=chunk)[65](index=65&type=chunk) - A legal claim from a former employee regarding labor laws was settled for **$0.4 million**, accrued as of March 31, 2025, and paid in April 2025[75](index=75&type=chunk) [Condensed Statements of Operations](index=5&type=section&id=Condensed%20Statements%20of%20Operations) Q1 2025 revenue rose to $9.8M, gross profit to $3.0M, and reduced operating expenses narrowed net loss to $4.6M Condensed Statements of Operations (Unaudited) | | For the Three Months Ended March 31, | | | :--- | :--- | :--- | | (in thousands, except per share data) | **2025** | **2024** | | **Revenue** | **$9,795** | **$9,290** | | Gross profit | $3,007 | $2,209 | | Loss from operations | $(4,964) | $(7,986) | | **Net loss** | **$(4,645)** | **$(8,097)** | | Net loss per share—basic and diluted | $(0.09) | $(0.20) | [Condensed Balance Sheets](index=6&type=section&id=Condensed%20Balance%20Sheets) Total assets decreased to $114.0M as of March 31, 2025, primarily due to reduced cash and investments Condensed Balance Sheet Highlights (Unaudited) | | As of March 31, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | (in thousands) | | | | Cash and cash equivalents | $3,377 | $3,708 | | Short-term investments, held-to-maturity | $22,896 | $26,688 | | Total current assets | $39,733 | $42,776 | | **Total assets** | **$113,993** | **$118,769** | | Total current liabilities | $7,045 | $11,211 | | Long-term debt, net | $12,989 | $9,443 | | **Total liabilities** | **$35,388** | **$36,375** | | **Total stockholders' equity** | **$78,605** | **$82,394** | [Condensed Statements of Cash Flows](index=8&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) Net cash used in operating activities improved to $4.1M in Q1 2025, with overall cash decreasing by $0.3M Condensed Statements of Cash Flows (Unaudited) | | For the Three Months Ended March 31, | | | :--- | :--- | :--- | | (in thousands) | **2025** | **2024** | | Net cash used in operating activities | $(4,103) | $(6,558) | | Net cash provided by investing activities | $3,824 | $13 | | Net cash used in financing activities | $(52) | $(343) | | **Change in cash and cash equivalents** | **$(331)** | **$(6,888)** | | Cash and cash equivalents at end of period | $3,377 | $21,596 | [Notes to Financial Statements](index=9&type=section&id=Notes%20to%20Financial%20Statements) Notes detail revenue disaggregation, a new credit agreement with covenants, and a significant customer concentration Revenue by Product Category (in thousands) | Product Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Lab Essentials | $8,117 | $7,266 | | Clinical Solutions | $1,162 | $1,718 | | Other | $516 | $306 | | **Total revenue** | **$9,795** | **$9,290** | - A single distributor customer accounted for **22%** of revenue in Q1 2025, up from **16%** in Q1 2024[40](index=40&type=chunk) - The new credit agreement includes a minimum net revenue requirement of **$39.0 million** for the twelve months ending December 31, 2025, and a minimum cash requirement of **$8.0 million**[55](index=55&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes Q1 2025 results, highlighting a 5.4% revenue increase, improved gross margin, and reduced operating expenses [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Q1 2025 revenue increased by 5.4% to $9.8M, driven by Lab Essentials growth, improving gross margin and narrowing net loss Results of Operations Comparison (in thousands) | | Q1 2025 | Q1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | **$9,795** | **$9,290** | **$505** | **5.4%** | | Gross profit | $3,007 | $2,209 | $798 | 36.1% | | Total operating expenses | $7,971 | $10,195 | $(2,224) | (21.8)% | | Loss from operations | $(4,964) | $(7,986) | $3,022 | (37.8)% | | **Net loss** | **$(4,645)** | **$(8,097)** | **$3,452** | **(42.6)%** | - The increase in total revenue was driven by a **$0.9 million (11.7%)** rise in Lab Essentials revenue, attributed to an increased number of customers[88](index=88&type=chunk) - Clinical Solutions revenue decreased by **$0.6 million (32.4%)** due to lower average revenue per customer[89](index=89&type=chunk) - The gross profit margin increased to **30.7%** in Q1 2025 from **23.8%** in Q1 2024, primarily due to higher revenue and lower overhead costs[92](index=92&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company had $32.7M in net working capital, supported by cash and a new credit facility - As of March 31, 2025, the company had **$32.7 million** in net working capital, which included **$26.3 million** in cash and cash equivalents and short-term investments[100](index=100&type=chunk) - The company entered into a Second Amended and Restated Credit Agreement on March 3, 2025, providing for up to **$28.245 million** in loan commitments, subject to covenants including minimum revenue and cash requirements[101](index=101&type=chunk) Net Cash Flow Summary (in thousands) | | For the Three Months Ended March 31, | | | :--- | :--- | :--- | | | **2025** | **2024** | | Net cash used in operating activities | $(4,103) | $(6,558) | | Net cash provided by investing activities | $3,824 | $13 | | Net cash used in financing activities | $(52) | $(343) | [Quantitative and Qualitative Disclosures About Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company, as a smaller reporting entity, is not required to provide market risk disclosures - Alpha Teknova is a smaller reporting company and is not required to provide quantitative and qualitative disclosures about market risk[113](index=113&type=chunk) [Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - Management, including the Chief Executive Officer and Chief Financial Officer, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[116](index=116&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[117](index=117&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any material legal proceedings, with other contingencies detailed in the financial notes - The company is not a party to any material legal proceedings at this time[121](index=121&type=chunk) [Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors from the 2024 Annual Report, reiterating ongoing operating losses and potential stock dilution - The company has a history of operating losses, including a net loss of **$4.6 million** for the three months ended March 31, 2025, and may incur losses in the future[124](index=124&type=chunk) - A significant portion of the company's **53,437,060** outstanding shares of common stock are available for resale, which could cause the market price to drop[125](index=125&type=chunk)[126](index=126&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales of equity securities or stock repurchases during the quarter - There were no unregistered sales of equity securities or company stock repurchases during the reported quarter[129](index=129&type=chunk)[131](index=131&type=chunk) [Defaults Upon Senior Securities](index=32&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - None[132](index=132&type=chunk) [Mine Safety Disclosures](index=32&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[133](index=133&type=chunk) [Other Information](index=32&type=section&id=Item%205.%20Other%20Information) A board member adopted a Rule 10b5-1 trading plan to sell shares for tax obligations, with no other similar plans by officers or directors - On March 12, 2025, board member Martha J. Demski adopted a Rule 10b5-1 trading plan to sell a maximum of **8,000 shares** of common stock, with sales eligible to begin on June 27, 2025[134](index=134&type=chunk) - No other officers or directors adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the first quarter of 2025[135](index=135&type=chunk) [Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including credit agreements and SOX certifications - The filing includes key exhibits such as the Second Amended and Restated Credit Agreements (Term Loan and Revolving Loan) and certifications from the CEO and CFO pursuant to Sarbanes-Oxley Act Sections 302 and 906[136](index=136&type=chunk)[137](index=137&type=chunk)

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $9.8 million, a 5% increase from $9.3 million in Q1 2024 [15] - Gross profit for Q1 2025 was $3 million, compared to $2.2 million in Q1 2024, with a gross margin of 30.7%, up from 23.8% [18] - Net loss for Q1 2025 was $4.6 million, or negative $0.09 per diluted share, compared to a net loss of $8.1 million, or negative $0.20 per diluted share, in Q1 2024 [19] Business Line Data and Key Metrics Changes - Revenue from Lab Essentials products was $8.1 million in Q1 2025, a 12% increase from $7.3 million in Q1 2024 [16] - Clinical Solutions revenue was $1.2 million in Q1 2025, a 32% decrease from $1.7 million in Q1 2024, attributed to lower average revenue per customer [17] - Revenue from custom products sold to biopharma customers grew mid single digits compared to Q1 2024, with expectations of at least 15% growth in 2025 [10][11] Market Data and Key Metrics Changes - The company serves over 500 academic and government institutions, which represented less than 4% of total revenue in February 2024 [7] - Less than 5% of total revenue comes from sales to customers outside the United States, with no material revenue from sales to customers in China [8] Company Strategy and Development Direction - The growth strategy focuses on engaging early-stage therapeutic developers and supporting them through clinical trials to commercialization, aiming for sustainable growth rates of 20% to 25% annually [8] - The company signed a collaboration agreement with Pluristics to manufacture and distribute a novel cryopreservation product, enhancing its product portfolio and market presence [12][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving guidance for 2025, despite challenges in the biotech funding landscape affecting small and mid-sized biotech customers [9][24] - The company anticipates a gross margin in the high 20s for fiscal year 2025, with operating expenses expected to be at least $8 million per quarter [23] Other Important Information - Capital expenditures for Q1 2025 were $200,000, compared to $100,000 in Q1 2024, with free cash flow of negative $4.3 million for Q1 2025, an improvement from negative $6.7 million in Q1 2024 [20] - The company does not expect to raise additional capital to execute its organic growth strategy based on current liquidity and growth assumptions [24] Q&A Session Summary Question: Update on cell and gene therapy customer count and demand after FDA leadership change - Management noted no immediate changes in demand post-leadership change, with customers in execution mode and expecting 15% growth in the segment [31] Question: Commentary on revenue per customer and mix shift with new customers - Management indicated that as new customers onboard, revenue per customer may soften, but mature customers are expected to increase their spending significantly as they progress through clinical trials [34] Question: Competitive position of the collaboration with Pluristics - Management expressed excitement about the collaboration, which targets existing customers and aims to expand into the cell therapy market, though material impact is not expected until 2026 [40] Question: Exposure to vaccines and recent CBER appointment - Management clarified that exposure to vaccines is minimal, with only 4% of revenue from academic and government institutions, and no immediate impact from NIH funding concerns [49][52] Question: Customer order patterns and potential risks to outlook - Management did not detect any pull-forward of orders and remains optimistic about mid-single-digit growth for the catalog business for the full year [59]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $9.8 million, a 5% increase from $9.3 million in Q1 2024 [15] - Gross profit for Q1 2025 was $3 million, compared to $2.2 million in Q1 2024, with a gross margin of 30.7%, up from 23.8% [19] - Net loss for Q1 2025 was $4.6 million, or negative $0.09 per diluted share, compared to a net loss of $8.1 million, or negative $0.20 per diluted share in Q1 2024 [20] Business Line Data and Key Metrics Changes - Revenue from Lab Essentials products was $8.1 million in Q1 2025, a 12% increase from $7.3 million in Q1 2024 [16][17] - Clinical Solutions revenue was $1.2 million in Q1 2025, a 32% decrease from $1.7 million in Q1 2024, attributed to lower average revenue per customer [17][18] - Revenue from custom products sold to biopharma customers grew mid single digits compared to Q1 2024, with expectations of at least 15% growth in 2025 [11][12] Market Data and Key Metrics Changes - The company serves over 500 academic and government institutions, which represented less than 4% of total revenue in February 2024 [7] - Less than 5% of total revenue comes from sales to customers outside the United States, with no material revenue from sales in China [7][8] - The company expects no material direct adverse impact from recent tariff policy changes due to its diverse customer base [8] Company Strategy and Development Direction - The growth strategy focuses on engaging early-stage therapeutic developers and supporting them through clinical trials to commercialization [9] - The company aims for sustainable above-market growth rates of 20% to 25% annually, despite current challenges in biotech funding [9] - A collaboration agreement with Pluristics was signed to expand the product portfolio, targeting both existing and new customer segments [13][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing the 2025 plan, citing a strong start to the year and expectations for continued growth [10][14] - The company anticipates mid single-digit growth in catalog products and at least 15% growth in custom biopharma products for 2025 [22][23] - Management noted that while the macro environment is challenging, the core business is returning to double-digit growth [27] Other Important Information - Capital expenditures for Q1 2025 were $200,000, compared to $100,000 in Q1 2024 [21] - Free cash flow was negative $4.3 million for Q1 2025, an improvement from negative $6.7 million in Q1 2024 [21] - The company continues to expect free cash outflow of less than $12 million for the full year 2025 [26] Q&A Session Summary Question: Demand for cell and gene therapy customers after FDA leadership change - Management noted no immediate changes in demand but will assess customer feedback at upcoming conferences [32] Question: Revenue per customer trends and utilization of mature customers - Management indicated that as clinical customers progress through trials, spending increases significantly, with expectations of a 30-fold increase as they move to commercialization [35] Question: Competitive position of the collaboration with Pluristics - The collaboration is expected to enhance the company's presence in cell therapy workflows and target existing customers, though material impact is not anticipated until 2026 [40][41] Question: Exposure to academic and government institutions amid NIH funding cuts - Management confirmed that the 4% revenue from academic and government institutions is resilient, with no immediate impact observed from funding concerns [52][53] Question: Potential impacts of FDA and NIH changes on early-stage research - Management acknowledged potential benefits from a shift towards non-animal models but noted that it is still speculative [64] Question: Economics of the cryopreservation collaboration - The collaboration is expected to contribute positively to adjusted EBITDA, with the potential for broader market access through research use only versions of the product [70][71]

Financial Performance - Q1 2025 - Total revenue increased by 5% year-over-year, from $9.3 million in Q1 2024 to $9.8 million in Q1 2025[23] - Lab Essentials revenue increased by 12% compared to the same period last year[23] - Clinical Solutions revenue decreased by 32% compared to the same period last year[23] - Gross margin increased from 23.8% in Q1 2024 to 30.7% in Q1 2025[25] - Total Operating Expenses (OpEx) decreased from $10.2 million in Q1 2024 to $8.0 million in Q1 2025, or $8.9 million excluding non-recurring workforce reduction expenses[26] - Adjusted EBITDA improved from a loss of $3.8 million in Q1 2024 to a loss of $2.5 million in Q1 2025[28] - Free Cash Flow improved from a loss of $6.7 million in Q1 2024 to a loss of $4.3 million in Q1 2025[32] Revenue Breakdown - 2024 - Catalog products accounted for approximately 60% of total revenue in 2024[14] - Custom products accounted for approximately 35% of total revenue in 2024, with Biopharma representing 70% of Custom Revenue and 25% of Total Revenue[14, 15] - Other revenue, including services and shipping, accounted for approximately 5% of total revenue in 2024[14] 2025 Outlook - The company estimates total revenue between $39 million and $42 million, representing a 7% year-over-year growth at the midpoint[44] - The company is targeting a free cash outflow of less than $12 million for 2025[44] - The company estimates an annualized revenue range of $50 million to $55 million to achieve Adjusted EBITDA break-even[44]