Alpha Teknova Reports $9.8 Million Revenue in Q1 2025, Net Loss Reduces to $4.6 Million

Alpha Teknova, Inc. reported a revenue of $9.8 million for the first quarter of 2025, marking a 5.4% increase from $9.3 million in the same period of 2024. The company's gross profit also improved significantly, rising to $3.0 million, up from $2.2 million a year earlier, resulting in a gross profit margin of 30.7%, compared to 23.8% in the prior year. Despite the increase in revenue, Alpha Teknova recorded a net loss of $4.6 million, a notable reduction from the $8.1 million loss reported in the first quarter of 2024.

The company’s operating expenses decreased by 21.8% to $8.0 million, down from $10.2 million in the previous year. This reduction was primarily driven by lower general and administrative costs, which fell by 25.6% to $5.5 million, largely due to decreased stock-based compensation expenses. Research and development expenses also saw a significant decline of 35.8%, reflecting the impact of a workforce reduction that occurred in early 2024. The overall decrease in operating expenses contributed to a 37.8% improvement in the loss from operations, which was $5.0 million for the quarter.

In terms of operational metrics, Alpha Teknova's customer base expanded, contributing to the increase in revenue from its Lab Essentials product category, which grew by 11.7% to $8.1 million. However, revenue from Clinical Solutions decreased by 32.4% to $1.2 million, attributed to lower average revenue per customer despite an increase in customer count. Geographically, the company generated 94.7% of its revenue from the United States, with international sales accounting for 5.3% of total revenue.

Looking ahead, Alpha Teknova is focused on enhancing its operational efficiency and expanding its manufacturing capabilities. The company has entered into a new credit agreement that provides for a total credit facility of $28.245 million, which includes a $23.245 million term loan and a $5 million working capital facility. This financial backing is expected to support the company's growth initiatives, including investments in infrastructure and personnel. Despite the positive trends, the company remains cautious about broader economic conditions, including inflation and interest rate fluctuations, which could impact customer demand and operational costs.