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Alpha Teknova (TKNO)
NASDAQ:TKNO
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Alpha Teknova
(NASDAQ:TKNO)
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Rating:46Neutral
Price Target:
$4.50
▲(12.22% Upside)
Alpha Teknova's overall stock score is primarily impacted by its financial performance, which shows persistent losses and weak cash flow generation. Technical analysis indicates a bearish trend, further weighing on the score. Valuation metrics are unfavorable due to negative earnings. The earnings call provides some optimism with revenue growth and strategic investments, but challenges in key segments remain.
Positive Factors
Revenue Growth
Consistent revenue growth, especially in Lab Essentials, indicates strong demand and effective market positioning, supporting long-term business expansion.
Operational Efficiency
Investments in operational efficiency projects are expected to enhance productivity and reduce costs, improving long-term profitability and competitiveness.
Improved Gross Margin
Significant improvement in gross margin reflects better cost management and pricing strategies, which can lead to sustainable profitability.
Negative Factors
Weak Cash Flow
Weak cash flow generation limits the company's ability to invest in growth opportunities and manage financial obligations, posing long-term risks.
Biopharma Market Challenges
Challenges in the biopharma market may hinder revenue growth and affect strategic partnerships, impacting long-term business prospects.
Clinical Solutions Revenue Decline
Declining revenue in Clinical Solutions indicates potential issues in product demand or market competition, affecting overall revenue diversification.
Alpha Teknova (TKNO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$214.65M
Dividend YieldN/A
Average Volume (3M)318.88K
Price to Earnings (P/E)―
Beta (1Y)1.04
Revenue Growth9.50%
EPS Growth53.74%
CountryUS
Employees173
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.08
Shares Outstanding53,529,175
10 Day Avg. Volume259,294
30 Day Avg. Volume318,881
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)4.74
Price to Sales (P/S)10.34
P/FCF Ratio-28.88
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue6.72
Enterprise Value/Gross Profit21.70
Enterprise Value/Ebitda-23.07
Forecast
1Y Price Target
$7.00Price Target Upside74.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Alpha Teknova Business Overview & Revenue Model
Company DescriptionAlpha 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.
How the Company Makes MoneyAlpha Teknova generates revenue primarily through the sale of its custom reagents and molecular biology products, which are tailored to meet the specific needs of its customers. The company offers a wide range of products, including buffers, enzymes, and other laboratory supplies, which are sold both directly and through distribution partnerships. Key revenue streams include bulk orders from pharmaceutical companies and recurring sales to research institutions and laboratories. Additionally, Teknova may engage in collaborations or partnerships with larger biotech firms, enhancing its reach and providing opportunities for co-development projects, which can further contribute to its earnings.
Alpha Teknova Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 17, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with consistent revenue growth driven by Lab Essentials products and operational improvements, but challenges persist in the Clinical Solutions segment and biopharma market. Despite these challenges, the company has made strategic investments to ensure long-term growth and improve operational efficiency.Q3-2025 Updates
Positive Updates
Consistent Revenue Growth
Revenue increased by 9% compared to the same period last year, marking the fifth consecutive quarter of year-over-year growth. Lab Essentials products revenue grew 16%.
Operational Efficiency Improvements
Implemented key projects like electronic batch records and high-throughput dispensing lines, expected to be operational in 2026, with improved metrics such as on-time delivery.
Increased and Diversified Customer Base
Expanded Clinical Solutions customer base, expected to translate to significant revenue growth as therapies and diagnostics move towards commercialization in 2 to 3 years.
Improved Gross Profit and Margin
Gross profit for the third quarter of 2025 was $3.2 million, with a gross margin of 30.7%, up from 0.9% in the third quarter of 2024.
Reduction in Net Loss
Net loss for the third quarter of 2025 was $4.3 million, compared to a net loss of $7.6 million in the third quarter of 2024.
Negative Updates
Decrease in Clinical Solutions Revenue
Clinical Solutions revenue decreased by 13% from $2.0 million in the third quarter of 2024 to $1.7 million in the third quarter of 2025 due to lower average revenue per customer.
Challenges in Biopharma Market
Continued delays in larger purchases of custom products due to the biotech funding environment, with only modest improvement expected in 2026.
Persistent Softness in Clinical Solutions Demand
Soft demand from biopharma customers for Clinical Solutions products, with expectations of finishing slightly below the revenue guidance midpoint for 2025.
Company Guidance
During the Teknova Third Quarter 2025 Earnings Conference Call, the company provided guidance indicating continued confidence in their growth strategy despite challenges in the biotech funding environment. Teknova reported a 9% increase in revenue to $10.5 million compared to the same period last year, with Lab Essentials products growing by 16%. The company maintained its 2025 revenue guidance of $39 million to $42 million, expecting to finish slightly below the midpoint due to persistent softness in demand for Clinical Solutions products from biopharma customers. Gross profit improved significantly from $0.1 million in Q3 2024 to $3.2 million in Q3 2025, with a gross margin increase to 30.7%. Operating expenses decreased to $7.2 million, resulting in a net loss of $4.3 million. Teknova anticipates low double-digit growth in 75% of its revenue, primarily from catalog products, while expecting modest growth in the 25% of revenue from custom biopharma products. The company expects to become adjusted EBITDA positive at an annualized revenue of $50 million to $55 million and projects free cash outflow of less than $12 million for the full year 2025.Alpha Teknova Financial Statement Overview
Summary
Alpha Teknova faces significant financial challenges, with persistent losses and weak cash flow generation. Despite some improvements in revenue and gross profit margins, profitability and cash flow issues remain critical concerns. The balance sheet shows moderate leverage, but negative returns on equity highlight the need for strategic improvements.Income Statement
Alpha Teknova's income statement shows a challenging financial position with negative net profit margins and EBIT margins over the past years. Despite a slight revenue growth in the TTM period, the company has consistently reported losses, indicating ongoing profitability issues. The gross profit margin has improved in the TTM period compared to the previous year, but overall profitability remains weak.Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio, indicating manageable leverage. However, the return on equity is negative, highlighting the company's inability to generate profits from shareholders' equity. The equity ratio remains stable, suggesting a reasonable level of financial stability despite ongoing losses.Cash Flow
Cash flow analysis reveals significant challenges, with negative free cash flow growth and operating cash flow coverage ratios in recent years. Although there is a positive operating cash flow in the TTM period, the free cash flow remains weak, indicating potential liquidity issues. The company needs to improve its cash generation to support operations and growth.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 39.80M | 37.74M | 36.68M | 41.42M | 36.89M | 31.30M |
| Gross Profit | 12.32M | 7.23M | 10.30M | 17.48M | 17.62M | 17.75M |
| EBITDA | -11.59M | -19.57M | -25.54M | -25.69M | -9.13M | 6.71M |
| Net Income | -18.22M | -26.75M | -36.78M | -47.47M | -9.80M | 3.57M |
Balance Sheet | ||||||
| Total Assets | 107.63M | 118.77M | 128.59M | 152.26M | 166.51M | 62.91M |
| Cash, Cash Equivalents and Short-Term Investments | 3.20M | 30.40M | 28.48M | 42.24M | 87.52M | 5.13M |
| Total Debt | 15.90M | 30.17M | 30.46M | 42.31M | 11.87M | 0.00 |
| Total Liabilities | 34.98M | 36.38M | 38.55M | 52.38M | 23.31M | 46.14M |
| Stockholders Equity | 72.65M | 82.39M | 90.04M | 99.89M | 143.20M | 16.77M |
Cash Flow | ||||||
| Free Cash Flow | -10.39M | -13.52M | -26.75M | -55.55M | -28.95M | -2.96M |
| Operating Cash Flow | -9.02M | -12.39M | -18.81M | -27.40M | -9.07M | 2.50M |
| Investing Cash Flow | 6.08M | -27.27M | -7.74M | -28.15M | -17.52M | -1.74M |
| Financing Cash Flow | 1.00K | 14.89M | 12.80M | 10.27M | 110.79M | -1.60M |
Alpha Teknova Technical Analysis
Negative
4.01
Price Trends
4.55
Negative
4.77
Negative
5.12
Negative
Market Momentum
-0.19
Positive
40.00
Neutral
69.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TKNO, the sentiment is Negative. The current price of 4.01 is below the 20-day moving average (MA) of 4.30, below the 50-day MA of 4.55, and below the 200-day MA of 5.12, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 40.00 is Neutral, neither overbought nor oversold. The STOCH value of 69.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TKNO.
Alpha Teknova Risk Analysis
Alpha Teknova disclosed 71 risk factors in its most recent earnings report. Alpha Teknova reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Alpha Teknova Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
59 Neutral | $499.10M | -6.58 | -25.64% | ― | ― | -1.89% | |
58 Neutral | $660.48M | 25.78 | ― | ― | -10.42% | ― | |
57 Neutral | $198.36M | -19.91 | -47.05% | ― | 2.82% | 60.26% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $291.11M | -5.96 | ― | ― | 0.47% | -430.88% | |
46 Neutral | $214.65M | -11.76 | -22.79% | ― | 9.50% | 53.74% |
* Healthcare Sector Average
TKNO
Alpha Teknova
4.01
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-50.37%
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DERM
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BIOA
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.