Teknova(TKNO) - 2025 Q1 - Quarterly Results

Financial & Operational Highlights 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][6][7] - 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][6] - 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] - 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] Q1 2025 Financial Performance Analysis 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 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 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] - 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] Non-GAAP Measures & Cash Flow 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 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][2] - The company continues to anticipate free cash outflow of less than $12 million for fiscal year 2025[12][3] Corporate Information & Events 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] - The company hosted a conference call and webcast on May 8, 2025, to discuss the quarterly financial results[13][14] Financial Statements 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 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 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 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 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) |