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]

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Teknova reported a 5% year-over-year revenue increase to $9.8 million for Q1 2025, driven by strong performance in its Lab Essentials segment, while announcing a strategic collaboration and maintaining a solid cash position - **Total Revenue** increased by **5%** to **$9.8 million** in Q1 2025 from $9.3 million in Q1 2024[2](index=2&type=chunk)[6](index=6&type=chunk)[7](index=7&type=chunk) - Entered into a collaboration with Pluristyx, Inc. to become the exclusive US and Canadian manufacturer and distributor of the PluriFreeze™ cryopreservation system, **strengthening its cell therapy product portfolio**[2](index=2&type=chunk)[6](index=6&type=chunk) - As of the end of Q1 2025, the company held **$26.3 million** in total cash and short-term investments, with total borrowings of **$13.2 million**[6](index=6&type=chunk) - Management highlighted the company's ability to drive organic growth in an uncertain macroenvironment, citing the criticality of its product portfolio and diverse customer base[3](index=3&type=chunk) [Q1 2025 Financial Performance Analysis](index=2&type=section&id=Q1%202025%20Financial%20Performance%20Analysis) The company's financial performance in Q1 2025 showed mixed results across segments but overall improvement in profitability, with Lab Essentials revenue growing 12% while Clinical Solutions declined 32%, and gross margin expanded significantly to 30.7% from 23.8% [Revenue Analysis](index=2&type=section&id=Revenue%20Analysis) Revenue by Segment (in thousands) | Segment | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Lab Essentials | $8,117 | $7,266 | +12% | | Clinical Solutions | $1,162 | $1,718 | -32% | | Other | $516 | $306 | +69% | | **Total Revenue** | **$9,795** | **$9,290** | **+5%** | [Profitability Analysis](index=2&type=section&id=Profitability%20Analysis) Profitability Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Gross Profit | $3.0 million | $2.2 million | | Gross Margin | 30.7% | 23.8% | | Operating Expenses | $8.0 million | $10.2 million | | Net Loss | $4.6 million | $8.1 million | | Diluted EPS | ($0.09) | ($0.20) | - The increase in gross margin was primarily driven by **higher revenue** combined with **lower overhead costs**[8](index=8&type=chunk) - The decrease in operating expenses was mainly due to **lower stock-based compensation expense** and **reduced general spending**, after excluding a non-recurring charge from Q1 2024[9](index=9&type=chunk) [Non-GAAP Measures & Cash Flow](index=2&type=section&id=Non-GAAP%20Measures%20%26%20Cash%20Flow) Non-GAAP & Cash Flow Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Adjusted EBITDA | ($2.5 million) | ($3.8 million) | | Free Cash Flow | ($4.3 million) | ($6.7 million) | [2025 Financial Outlook](index=2&type=section&id=2025%20Financial%20Outlook) Teknova has reaffirmed its full-year 2025 financial guidance, projecting total revenue in the range of $39 million to $42 million and anticipating free cash outflow of less than $12 million - The company reiterates its fiscal 2025 total revenue guidance of **$39 million to $42 million**[12](index=12&type=chunk)[2](index=2&type=chunk) - The company continues to anticipate free cash outflow of **less than $12 million** for fiscal year 2025[12](index=12&type=chunk)[3](index=3&type=chunk) [Corporate Information & Events](index=2&type=section&id=Corporate%20Information%20%26%20Events) Teknova will be participating in several upcoming investor conferences in May and June 2025, including the Sidoti Micro Cap Conference, the William Blair Growth Stock Conference, and the Jefferies Global Healthcare Conference, following a conference call to discuss Q1 2025 results - Teknova will participate in three upcoming investor conferences: - Sidoti Micro Cap Conference (Virtual) on May 21, 2025 - William Blair 45th Annual Growth Stock Conference (Chicago, IL) on June 4, 2025 - Jefferies 2025 Global Healthcare Conference (New York, NY) on June 5, 2025[13](index=13&type=chunk) - The company hosted a conference call and webcast on May 8, 2025, to discuss the quarterly financial results[13](index=13&type=chunk)[14](index=14&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section provides the detailed, unaudited condensed financial statements for the period ended March 31, 2025, including the Statements of Operations, Balance Sheets, and Statements of Cash Flows, comparing the current period with the corresponding prior period or year-end [Condensed Statements of Operations](index=5&type=section&id=Condensed%20Statements%20of%20Operations) Condensed Statements of Operations (Unaudited, in thousands) | | For the Three Months Ended March 31, | | | :--- | :--- | :--- | | | **2025** | **2024** | | Revenue | $9,795 | $9,290 | | Cost of sales | 6,788 | 7,081 | | **Gross profit** | **3,007** | **2,209** | | Total operating expenses | 7,971 | 10,195 | | **Loss from operations** | **(4,964)** | **(7,986)** | | Total other income (expenses), net | 341 | (145) | | **Net loss** | **$(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) Condensed Balance Sheets (Unaudited, in thousands) | | As of Mar 31, 2025 | As of Dec 31, 2024 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $3,377 | $3,708 | | Short-term investments | 22,896 | 26,688 | | Total current assets | 39,733 | 42,776 | | **Total assets** | **$113,993** | **$118,769** | | **LIABILITIES AND EQUITY** | | | | 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** | | **Total liabilities and stockholders' equity** | **$113,993** | **$118,769** | [Condensed Statements of Cash Flows](index=7&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) Condensed Statements of Cash Flows (Unaudited, in thousands) | | For the Three Months Ended March 31, | | | :--- | :--- | :--- | | | **2025** | **2024** | | Cash used in operating activities | $(4,103) | $(6,558) | | Cash provided by investing activities | 3,824 | 13 | | Cash used in financing activities | (52) | (343) | | **Change in cash and cash equivalents** | **(331)** | **(6,888)** | | Cash and cash equivalents at beginning of period | 3,708 | 28,484 | | **Cash and cash equivalents at end of period** | **$3,377** | **$21,596** | [Reconciliation of Non-GAAP Measures](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) Teknova provides a detailed reconciliation of its non-GAAP financial measures, Adjusted EBITDA and Free Cash Flow, to the most directly comparable GAAP measures, showing a net loss of $4.6 million reconciled to an Adjusted EBITDA of negative $2.5 million for Q1 2025 Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss – as reported | $(4,645) | $(8,097) | | Adjustments (Interest, Taxes, D&A, etc.) | 1,746 | 1,747 | | **EBITDA** | **$(2,899)** | **$(6,350)** | | Other and non-recurring expenses | 367 | 2,594 | | **Adjusted EBITDA** | **$(2,532)** | **$(3,756)** | Reconciliation to Free Cash Flow (in thousands) | | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Cash used in operating activities | $(4,103) | $(6,558) | | Purchases of property, plant, and equipment | (206) | (112) | | **Free Cash Flow** | **$(4,309)** | **$(6,670)** |

Core Insights - Alpha Teknova, Inc. reported total revenue of $9.8 million for the first quarter of 2025, reflecting a 5% increase from $9.3 million in the same period of 2024 [1][5] - The company introduced the proprietary PluriFreeze™ cryopreservation system in collaboration with Pluristyx, Inc., enhancing its cell therapy product portfolio [1][8] - Teknova reaffirmed its revenue guidance for 2025, expecting total revenue between $39 million and $42 million [1][11] Financial Performance - Lab Essentials revenue reached $8.1 million, a 12% increase from $7.3 million in Q1 2024, while Clinical Solutions revenue decreased by 32% to $1.2 million from $1.7 million [4][5] - Gross profit for Q1 2025 was $3.0 million, with a gross margin of 30.7%, up from 23.8% in Q1 2024, driven by higher revenue and lower overhead costs [6] - Operating expenses decreased to $8.0 million from $10.2 million in Q1 2024, primarily due to lower stock-based compensation and reduced spending [7] Cash Flow and Losses - The 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 [9][21] - Adjusted EBITDA improved to negative $2.5 million from negative $3.8 million year-over-year, while free cash flow was negative $4.3 million, an improvement from negative $6.7 million in Q1 2024 [10][27] Strategic Developments - The collaboration with Pluristyx, Inc. positions Teknova as the exclusive manufacturer and distributor of the PluriFreeze™ product line in the U.S. and Canada, expanding its market reach [1][8] - The company maintains a strong cash position with total cash and short-term investments of $26.3 million and total borrowings of $13.2 million at the end of Q1 2025 [8]

Core Viewpoint - Alpha Teknova, Inc. is set to report its financial results for Q1 2025 on May 8, 2025, after market close, indicating a focus on transparency and communication with investors [1]. Group 1: Financial Reporting - The company will announce its financial results for the first quarter ended March 31, 2025, on May 8, 2025 [1]. - A webcast and conference call will be held on the same day at 5 p.m. Eastern Time for investors to access the results [2]. Group 2: Company Overview - Teknova has been innovating in the manufacture of critical reagents since 1996, supporting the life sciences industry [3]. - The company offers customizable solutions for various stages of the workflow, aiding in molecular diagnostics, synthetic biology, and emerging therapeutic modalities [3]. - Teknova operates from a 180,000 square feet facility in Hollister, California, designed for efficient production of foundational ingredients for next-generation therapies [3].

Core Insights - Alpha Teknova, Inc. has partnered with Pluristyx, Inc. to exclusively distribute the PluriFreeze™ cryopreservation system, enhancing the development of cell therapies [1][2] - The PluriFreeze system is designed to streamline the commercialization of allogeneic cell therapies, featuring a synthetic and animal-origin-free formulation [2][3] Company Overview - Teknova specializes in producing critical reagents for the life sciences sector, focusing on novel therapies, vaccines, and molecular diagnostics since 1996 [5] - Pluristyx is a biotechnology company that provides a range of products and services for cell and gene therapy development, including induced Pluripotent Stem Cells (iPSCs) [6] Product Details - The PluriFreeze system includes PluriFreeze Base, a cellular wash that mimics intracellular space, and PluriFreeze PF10, a low viscosity freezing medium with 10% DMSO [2][3] - Research-grade pricing for PluriFreeze Base starts at $240 per 100 mL, while PluriFreeze PF10 starts at $260 per 100 mL [3] Collaboration Benefits - The collaboration allows for better control and optimization of biopreservation conditions, facilitating the scaling of cell therapy development [3] - Customers can access both RUO and GMP-grade versions of the PluriFreeze products, with options for custom formulations [3]

Core Insights - Teknova and Pluristyx have launched the PluriFreeze cryopreservation system, which is exclusively available through Teknova, aimed at enhancing the manufacturing process of allogeneic cell therapies [1][2] Company Overview - Teknova is a leading producer of critical reagents for the life sciences industry, focusing on the discovery, development, and commercialization of novel therapies, vaccines, and molecular diagnostics [1][5] - Pluristyx specializes in induced Pluripotent Stem Cells (iPSCs) and innovative technologies that aim to shorten the development lifecycle of cell therapies [1][6] Product Details - The PluriFreeze system is entirely synthetic and animal-origin-free, consisting of PluriFreeze Base, a cellular wash that mimics intracellular space, and PluriFreeze PF10, a low viscosity freezing medium with 10% dimethyl sulfoxide (DMSO) [2] - The system is designed to streamline the development and commercialization of next-generation allogeneic cell therapies, providing metabolic support and simplifying scale-up processes [2][3] Pricing and Availability - Research-grade PluriFreeze Base is priced at $240 per 100 mL, while PluriFreeze PF10 is priced at $260 per 100 mL [3] - Custom formulations and GMP-grade versions are available upon request, with free product samples offered until March 21, 2025 [3] Strategic Collaboration - The collaboration between Teknova and Pluristyx allows for better control and optimization of biopreservation conditions, enhancing the viability and functionality of cells throughout the product lifecycle [3]

Core Insights - Teknova and Pluristyx have announced a collaboration to produce and commercialize the PluriFreeze™ cryopreservation system, aimed at enhancing the development of allogeneic cell therapies [1][2] - Teknova will serve as the exclusive manufacturer and distributor of the PluriFreeze product line in the United States and Canada, facilitating wider access for customers [2][3] Company Overview - Teknova specializes in manufacturing critical reagents for the life sciences industry, supporting the discovery and development of novel therapies, vaccines, and diagnostics [5] - Pluristyx focuses on providing induced Pluripotent Stem Cells (iPSCs) and innovative technologies to accelerate the development lifecycle of cell therapies [6][7] Product Details - The PluriFreeze system includes a protective wash and a low viscosity freezing medium, designed to streamline the manufacturing process of cell products [3][4] - PluriFreeze Base mimics intracellular space and provides metabolic support, while PluriFreeze PF10 contains 10% dimethyl sulfoxide (DMSO) to simplify scale-up and automation [3] Future Developments - Additional information regarding pricing and availability of the PluriFreeze products will be disclosed at the BioProcess International West conference in San Diego, starting March 19, 2025 [4]