Alpha Teknova (TKNO) AI Stock Analysis

• Market Cap: $152.72M
• Dividend Yield: N/A
• Average Volume (3M): 318.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: 9.50%
• EPS Growth: 53.74%
• Country: US
• Employees: 173
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.09
• Shares Outstanding: 53,587,660
• 10 Day Avg. Volume: 259,294
• 30 Day Avg. Volume: 318,881
• PEG Ratio: 0.27
• Price to Book (P/B): 2.96
• Price to Sales (P/S): 5.02
• P/FCF Ratio: -22.01
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 4.00
• Enterprise Value/Gross Profit: 12.05
• Enterprise Value/Ebitda: -15.23
• 1Y Price Target: $7.00
• Price Target Upside: 211.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -0.35
• Revenue Forecast (FY): $43.01M

• Rating: 49 Neutral
• Price Target: $3.00 ▲(33.33% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is held back primarily by persistent losses and negative free cash flow despite improving revenue and margins. Technical signals also remain weak with the stock below key moving averages and a negative MACD. Offsetting these risks, the latest earnings call showed continued operational progress and a clearer path toward improved margins and reduced cash outflow, though near-term guidance remains modest.

Positive Factors

Recurring consumable revenue & customer retention

Teknova's business is rooted in consumable reagents with very high retention (~95%) and a large, diversified customer base (>3,000). Recurring purchases and low top-customer concentration support durable revenue predictability as customers standardize workflows and scale from R&D to clinical/commercial runs.

Improving gross margins and manufacturing efficiency

Margins expanded materially on higher volumes and manufacturing efficiencies, signaling better unit economics as production scales. Sustained gross-margin improvement provides structural leverage to convert incremental revenue into operating profit as volume and mix normalize beyond one-time adjustments.

Clinical pipeline traction and expanding clinical customer base

Growth in clinical customers and rising Clinical Solutions revenue show Teknova is winning higher-value, longer-term engagements. Supporting ~70 therapies and advancing customers into later-stage trials creates durable prospects for recurring, higher-margin manufacturing and commercial supply as programs progress.

Negative Factors

Persistent negative cash flow

Teknova continues to consume cash, with multi-year negative operating and free cash flow despite improvement. Ongoing cash burn forces reliance on the balance sheet or financing for operations and growth, constraining flexibility and raising execution risk until internal cash generation turns positive.

Sustained unprofitability

Despite margin gains, the company remains significantly loss-making and recorded meaningful net losses in 2025. Continued negative adjusted EBITDA and multi-year unprofitability mean Teknova must sustain growth and margin progress to achieve its targeted profitability horizon, creating execution risk.

Dependence on biotech funding recovery with lag

A material portion of demand is tied to biotech funding cycles and may lag funding improvements by roughly a year. This structural dependency can delay revenue inflection and push back targets for scale and adjusted EBITDA, making forecasts sensitive to macro funding conditions beyond management control.

Alpha Teknova Business Overview & Revenue Model

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.

How the Company Makes Money

Alpha Teknova makes money primarily by selling life-science reagents and consumable products to customers in biopharma, advanced therapies, vaccine developers, and related research and diagnostic markets. Its revenue model is largely product-based and includes (1) custom-manufactured reagents: customers contract Teknova to formulate and manufacture proprietary or customer-specific buffers, media, and other solutions, typically leveraging Teknova’s formulation expertise, quality controls, and scalable manufacturing; and (2) catalog products: standardized, off-the-shelf reagents sold through direct channels and distribution/e-commerce to research and development and process-development users. Revenue is generally recognized upon shipment/delivery of products under customer purchase orders and supply agreements. A key economic driver is that many reagents are recurring consumables—once a customer locks a formulation into a workflow (and especially if it progresses from R&D to clinical and commercial manufacturing), ongoing demand can repeat with each batch/run, and volumes can scale as a therapy or vaccine program advances. If information about specific named partnerships, customer concentration, pricing terms, or segment-level revenue breakdowns is not available here, it is null.

Alpha Teknova Financial Statement Overview

Summary

Strong 2025 revenue rebound and improved gross margin, plus reduced leverage, but the business remains meaningfully unprofitable and continues to burn cash (negative operating and free cash flow across 2021–2025). Overall profile still looks like an early-stage turnaround.

Income Statement

Revenue rebounded strongly in 2025 (up ~181% vs. 2024) after several uneven years, and gross margin improved to ~33% from ~19% in 2024. However, profitability remains weak: the company is still operating at meaningful losses (2025 net margin ~-43%), and it has been loss-making for five straight years after a profitable 2020. The trend is improving versus 2022–2024, but the business has not yet demonstrated sustainable earnings power.

Balance Sheet

Leverage looks manageable and improving, with total debt down sharply in 2025 and debt-to-equity declining to ~0.22 (from ~0.37 in 2024). Equity remains sizable relative to debt, which provides some balance-sheet flexibility. The key weakness is ongoing losses, which have coincided with a multi-year decline in equity and create continued pressure on the capital base if profitability does not turn.

Cash Flow

Cash generation is a clear weak spot: operating cash flow and free cash flow are negative across 2021–2025, indicating the company is consuming cash rather than funding itself internally. While cash burn improved versus the heavier outflows seen in 2022–2023, free cash flow worsened in 2025 versus 2024, and the business still relies on balance-sheet resources and/or financing to sustain operations.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	40.52M	37.74M	36.68M	41.42M	36.89M
Gross Profit	13.44M	7.23M	10.30M	17.48M	17.62M
EBITDA	-10.15M	-19.57M	-25.54M	-25.69M	-9.13M
Net Income	-17.26M	-26.75M	-36.78M	-47.47M	-9.80M
Balance Sheet
Total Assets	103.58M	118.77M	128.59M	152.26M	166.51M
Cash, Cash Equivalents and Short-Term Investments	5.91M	30.40M	28.48M	42.24M	87.52M
Total Debt	15.15M	30.17M	30.46M	42.31M	11.87M
Total Liabilities	34.81M	36.38M	38.55M	52.38M	23.31M
Stockholders Equity	68.78M	82.39M	90.04M	99.89M	143.20M
Cash Flow
Free Cash Flow	-9.23M	-13.52M	-26.75M	-55.55M	-28.95M
Operating Cash Flow	-8.08M	-12.39M	-18.81M	-27.40M	-9.07M
Investing Cash Flow	10.70M	-27.27M	-7.74M	-28.15M	-17.52M
Financing Cash Flow	151.00K	14.89M	12.80M	10.27M	110.79M

Alpha Teknova Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.25
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TKNO, the sentiment is Positive. The current price of 2.25 is below the 20-day moving average (MA) of 2.46, below the 50-day MA of 2.74, and below the 200-day MA of 4.33, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 58.47 is Neutral, neither overbought nor oversold. The STOCH value of 77.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TKNO.

Alpha Teknova Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRWD	61 Neutral	$526.68M	22.76	-8.22%	―	-10.42%	―
BIOA	59 Neutral	$878.47M	-2.61	-25.09%	―	―	-1.89%
DERM	57 Neutral	$231.13M	-19.19	-39.94%	―	2.82%	60.26%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TKNO	49 Neutral	$152.72M	-11.78	-23.32%	―	9.50%	53.74%
LFCR	45 Neutral	$152.16M	-9.61	-166.72%	―	0.47%	-430.88%