Alpha Teknova, Inc.

Previous wording

We have two primary product categories: Lab Essentials and Clinical Solutions. Our products cross all stages of development, from early research through commercialization. We offer three primary product types: (i) pre-poured media plates for cell growth and cloning; (ii) liquid cell culture media and supplements for cellular expansion; and (iii) molecular biology reagents for sample manipulation, resuspension, and purification. Our liquid cell culture media and supplements and molecular biology reagents are available in both of our two primary product categories; pre-poured media plates are available in our Lab Essentials category only.

Current wording

We have two primary product categories: (i) Lab Essentials, and (ii) Clinical Solutions. Our products cross all stages of development, from early research through commercialization. We offer three primary product types: (i) pre-poured media plates for cell growth and cloning; (ii) liquid microbial culture media and supplements for cellular expansion; and (iii) molecular biology reagents for sample manipulation, resuspension, and purification. Our liquid microbial culture media and supplements and molecular biology reagents are available in both of our two primary product categories; pre-poured media plates are available in our Lab Essentials category only.

Previous wording

We are ISO 13485:2016 certified, enabling us to manufacture products for use in diagnostic and therapeutic applications. Our certification allows us to offer solutions across the entire customer product development workflow, supporting our customers’ needs for materials in greater volume and that meet increasingly stringent quality requirements as they scale from research to commercialization.

Current wording

We are ISO 13485:2016 certified, enabling us to manufacture products for use in diagnostic and therapeutic applications. Our certification allows us to offer solutions across the entire customer product development workflow, supporting our customers’ need for materials in greater volume and that meet increasingly stringent quality requirements as they scale from research to commercialization.

Previous wording

We generated revenue of $10.5 million during the three months ended September 30, 2025, which represents an increase of $0.9 million compared to revenue of $9.6 million during the three months ended September 30, 2024. For the three months ended September 30, 2025 and 2024, only 5.9% and 5.4%, respectively, of our revenue was generated from customers located outside of the United States. We generated revenue of $30.5 million during the nine months ended September 30, 2025, which represents an increase of $2.1 million compared to revenue of $28.5 million during the nine months ended September 30, 2024. For the nine months ended September 30, 2025 and 2024, only 5.4% and 4.7%, respectively, of our revenue was generated from customers located outside of the United States. Our sales outside of the United States are denominated in U.S. Dollars.

Current wording

We generated revenue of $11.1 million during the three months ended March 31, 2026, which represented an increase of $1.3 million compared to revenue of $9.8 million during the three months ended March 31, 2025. For the three months ended March 31, 2026 and 2025, only 4.7% and 5.3%, respectively, of our revenue was generated from customers located outside of the United States. Our sales outside of the United States are denominated in U.S. Dollars. We primarily generate sales through direct channels and a small salesforce, supported by an established network of distributors.

Previous wording

We had an operating loss of $4.0 million during the three months ended September 30, 2025, compared to an operating loss of $7.4 million during the three months ended September 30, 2024. We had an operating loss of $12.4 million during the nine months ended September 30, 2025, compared to an operating loss of $20.5 million during the nine months ended September 30, 2024. While our expenses may fluctuate over the short term, we expect our expenses will increase in future periods, in connection with our ongoing activities as we:

Current wording

We had an operating loss of $4.3 million during the three months ended March 31, 2026, compared to an operating loss of $5.0 million during the three months ended March 31, 2025. While our expenses may fluctuate over the short term, we expect our expenses will increase in future periods, but at a slower rate, in connection with our ongoing activities as we:

Previous wording

invest in processes and infrastructure to improve operating efficiency and expand capacity at our facilities, including the ramp up of our new, state-of-the-art manufacturing, warehouse, and distribution facilities; and

Current wording

invest in processes and infrastructure to improve operating efficiency and expand capacity at our facilities, including the ramp up of our new warehouse and distribution facility;

Previous wording

We are closely monitoring economic uncertainty in the U.S. and abroad. General inflation in the U.S. rose in recent years to levels not experienced in recent decades. While the rate of inflation moderated in 2024, general inflation, including rising prices for our raw materials and other inputs, as well as rising salaries and other expenses, can negatively impact our business by increasing our cost of sales and operating expenses. In addition, during early 2024, the U.S. Federal Reserve raised interest rates in response to concerns about inflation, and although the U.S. Federal Reserve lowered interest rates in late 2024 and in September 2025, the direction and timing of future interest rate changes remain uncertain. Inflation, together with increased interest rates, and broader macroeconomic uncertainty, may cause our customers to reduce, delay, or cancel orders for our goods and services, thereby causing a decrease in or change in the timing of sales of our products and services. We cannot predict the impact of future inflation and interest rate changes on the results of our operations. Furthermore, changes to tariff and related international trade policy so far in 2025 create uncertainty about the broader economy and our business. For further information regarding the impact of these economic factors on the Company, please see the risk factors identified in Part I, Item 1A, Risk Factors, of our 2024 Annual Report on Form 10-K.

Current wording

We continue to closely monitor economic uncertainty in the U.S. and abroad. General inflation in the U.S. rose in recent years to levels not experienced in recent decades. While the rate of inflation has moderated in recent years, general inflation, including rising prices for our raw materials and other inputs, tariffs, as well as rising salaries and other expenses, can negatively impact our business by increasing our cost of sales and operating expenses. Inflation, together with uncertainty regarding future interest rate changes, and broader macroeconomic uncertainty, may cause our customers to reduce, delay, or cancel orders for our goods and services, thereby causing a decrease in or change in the timing of sales of our products and services. We cannot predict the impact of future inflation and interest rate changes on the results of our operations. Furthermore, changes to tariff and related international trade policy that began in 2025 has created uncertainty about the broader economy and our business. For further information regarding the impact of these economic factors on the Company, please see the risk factors identified in Part I, Item 1A, Risk Factors, of our 2025 Annual Report on Form 10-K.

Previous wording

Lab Essentials revenue was $24.2 million for the nine months ended September 30, 2025, an increase of $2.2 million, or 9.8%, compared to $22.1 million for the nine months ended September 30, 2024. The increase in Lab Essentials revenue was attributable to an increased number of customers, partially offset by slightly lower average revenue per customer.

Current wording

Lab Essentials revenue was $8.4 million for the three months ended March 31, 2026, an increase of $0.3 million, or 3.4%, compared to $8.1 million for the three months ended March 31, 2025. The increase in Lab Essentials revenue was attributable to higher average revenue per customer, partially offset by a decreased number of customers.

Previous wording

Lab Essentials revenue was $8.3 million for the three months ended September 30, 2025, an increase of $1.1 million, or 16.0%, compared to $7.2 million for the three months ended September 30, 2024. The increase in Lab Essentials revenue was attributable to higher average revenue per customer and, to a slightly lesser extent, an increased number of customers.

Current wording

Clinical Solutions revenue was $2.1 million for the three months ended March 31, 2026, an increase of $1.0 million, or 84.6%, compared to $1.2 million for the three months ended March 31, 2025. The increase in Clinical Solutions revenue was attributable to an increased number of customers and, to a slightly lesser extent higher average revenue per customer.

Previous wording

Revenue from U.S. sales was $9.8 million and $9.1 million for the three months ended September 30, 2025 and 2024, respectively. Revenue from U.S. sales as a percentage of our total revenue was consistent period over period, representing 94.1% and 94.6% of our total revenue during the three months ended September 30, 2025 and 2024, respectively.

Current wording

Revenue from U.S. sales was $10.6 million and $9.3 million for the three months ended March 31, 2026 and 2025, respectively. Revenue from U.S. sales as a percentage of our total revenue was consistent period over period, representing 95.3% and 94.7% of our total revenue during the three months ended March 31, 2026 and 2025, respectively.

Previous wording

Revenue from international sales was $0.6 million and $0.5 million for the three months ended September 30, 2025 and 2024, respectively. Revenue from international sales as a percentage of our total revenue was also consistent period over period, representing 5.9% and 5.4% of our total revenue during the three months ended September 30, 2025 and 2024, respectively.

Current wording

Revenue from international sales was $0.5 million for each of the three months ended March 31, 2026 and 2025, respectively. Revenue from international sales as a percentage of our total revenue was also consistent period over period, representing 4.7% and 5.3% of our total revenue during the three months ended March 31, 2026 and 2025, respectively.

Previous wording

Research and development expenses were consistent at $0.5 million and $0.6 million for the three months ended September 30, 2025 and 2024, respectively.

Current wording

Research and development expenses were consistent at $0.6 million and $0.6 million for the three months ended March 31, 2026 and 2025, respectively.

Previous wording

Sales and marketing expenses were consistent at $1.7 million and $1.6 million for the three months ended September 30, 2025 and 2024, respectively.

Current wording

Sales and marketing expenses were $2.1 million and $1.6 million for the three months ended March 31, 2026 and 2025, respectively. The increase was primarily driven by higher headcount and increased marketing expenses.

Previous wording

General and administrative expenses were $4.6 million and $5.0 million for the three months ended September 30, 2025 and 2024, respectively. The decrease was driven by a general net reduction in spending.

Current wording

General and administrative expenses were $5.1 million and $5.5 million for the three months ended March 31, 2026 and 2025, respectively. The decrease was primarily driven by lower stock-based compensation expense and professional fees.

Previous wording

Our other expenses, net for the three months ended September 30, 2025 and 2024, were as follows (dollars in thousands):

Current wording

Our other (expenses) income, net for the three months ended March 31, 2026 and 2025, were as follows (dollars in thousands):

Previous wording

Total other expenses, net were not significant for the nine months ended September 30, 2025, compared to $0.6 million for the nine months ended September 30, 2024. The decrease in total other expense, net was primarily attributable to a $0.5 million adjustment recognized on the exit fee concurrent with the refinancing of our credit agreement during the three months ended March 31, 2025 coupled with lower interest income, somewhat offset by lower interest expense.

Current wording

Total other (expenses) income, net was an expense of $0.2 million for the three months ended March 31, 2026, compared to income of $0.3 million for the three months ended March 31, 2025. The increase in total other expense, net was primarily attributable to the $0.5 million adjustment recognized on the exit fee concurrent with the refinancing of our credit agreement during the three months ended March 31, 2025.

Previous wording

Our provision for (benefit from) income taxes for the three months ended September 30, 2025 and 2024, was as follows (dollars in thousands):

Current wording

Our provision for income taxes for the three months ended March 31, 2026 and 2025, was as follows (dollars in thousands):

Previous wording

Our income taxes were not significant for either the three months ended September 30, 2025 or 2024. The effective tax rates for the three months ended September 30, 2025 and 2024 were (1.9%) and 0.1%, respectively. The effective tax rates differ from the federal statutory rate primarily due to operating losses not expected to produce an income tax benefit.

Current wording

Our income taxes were not significant for either the three months ended March 31, 2026 or 2025. The effective tax rates for the three months ended March 31, 2026 and 2025 were (1.0%) and (0.5)%, respectively. The effective tax rates differ from the federal statutory rate primarily due to operating losses not expected to produce an income tax benefit.

Previous wording

The primary sources of financing for our operations are our (i) registered direct offering and concurrent private placement completed in September 2023 (collectively, the September 2023 Offerings), which resulted in aggregate gross proceeds of $22.9 million before deducting offering expenses of $0.4 million and the prepayment of $10.0 million of the Term Loan , and (ii) private placement completed in July 2024 (the July 2024 Offering), which resulted in aggregate gross proceeds of $15.4 million before deducting offering expenses of $0.2 million.

Current wording

The primary sources of financing for our operations are our (i) registered direct offering and concurrent private placement completed in September 2023, which resulted in aggregate gross proceeds of $22.9 million before deducting offering expenses of $0.4 million and the prepayment of $10.0 million of the Term Loan, and (ii) private placement completed in July 2024, which resulted in aggregate gross proceeds of $15.4 million before deducting offering expenses of $0.2 million.

Previous wording

Our principal liquidity requirements are to fund our operations and capital expenditures. As of September 30, 2025, we had $29.6 million in net working capital, which included $22.1 million in cash and cash equivalents and short-term investments. Our material cash requirements from known contractual obligations and commitments relate primarily to operating leases for our office, manufacturing, warehouse, and distribution facilities at September 30, 2025. See “Notes to Financial Statements—Note 9. Leases,” for a discussion of our lease obligations reflected on our balance sheet.

Current wording

Our principal liquidity requirements are to fund our operations and capital expenditures. During the three months ended March 31, 2026, we incurred net losses of $4.6 million. In addition, as of March 31, 2026, we had an accumulated deficit of $140.3 million and $13.2 million in borrowings outstanding under our Term Loan (defined below). As of March 31, 2026, we had $24.8 million in net working capital, which included $17.8 million in cash and cash equivalents and short-term investments. Our material cash requirements from known contractual obligations and commitments relate primarily to operating leases for our office, manufacturing, warehouse, and distribution facilities at March 31, 2026. See “Notes to Financial Statements—Note 9. Leases,” for a discussion of our lease obligations reflected on our Condensed Balance Sheets.

Previous wording

In addition to our existing cash and cash equivalents and short-term investments, our principal source of liquidity is our credit facility. On March 3, 2025, we entered into the Second Amended and Restated Credit Agreement with MidCap Financial (Midcap) Trust which provides for loan commitments in an aggregate amount of up to $28.245 million consisting of a $23.245 million senior secured term loan (Term Loan) and a $5.0 million working capital facility (Revolver). The Amended Term Loan consists of the $12.135 million balance outstanding under the previous term loan, plus an additional $1.110 million related to the exit fee that would otherwise have been due upon closing of the Second and Amended Restated Term Loan Credit Agreement, as well as an additional tranche of $10.0 million that may become available for use in an acquisition, with MidCap’s consent. The Second Amended and Restated Credit Agreement includes minimum net revenue requirements that are measured on a trailing twelve-month basis and a minimum cash requirement which is constant throughout the term of the agreement. For example, our minimum net revenue requirement for the twelve months ending December 31, 2025, is $39.0 million. The minimum cash requirement is $8.0 million, which includes cash and cash equivalents as well as short-term investments in U.S. Treasuries. See “Notes to Financial Statements—Note 12. Long-term Debt, Net” for a more detailed discussion of the material terms of our Second Amended and Restated Credit Agreement.

Current wording

In addition to our existing cash and cash equivalents and short-term investments, our principal source of liquidity is our credit facility. On March 3, 2025, we entered into the Second Amended and Restated Credit Agreement with MidCap Financial (Midcap) Trust which provides for loan commitments in an aggregate amount of up to $28.245 million consisting of a $23.245 million senior secured term loan (Term Loan) and a $5.0 million working capital facility (Revolver). The Term Loan consists of the $12.135 million balance outstanding under the previous term loan, plus an additional $1.110 million related to the exit fee that would otherwise have been due upon closing of the Second Amended and Restated Term Loan Credit Agreement, as well as an additional tranche of $10.0 million that may become available for use in an acquisition, with MidCap’s consent. As of March 31, 2026, there were no amounts outstanding under the Revolver, and $3.6 million was available based on borrowing base estimates. The Second Amended and Restated Credit Agreement includes minimum net revenue requirements that are measured on a trailing twelve-month basis and a minimum cash requirement throughout the term of the agreement. The minimum cash requirement is $8.0 million, which includes cash and cash equivalents as well as short-term investments in U.S. Treasuries. We were in compliance with our financial covenants under the terms of the Second Amended and Restated Credit Agreement as of March 31, 2026. See “Notes to Financial Statements—Note 12. Long-Term Debt, Net” for a more detailed discussion of the material terms of our Second Amended and Restated Credit Agreement.

Previous wording

The following table sets forth, for the periods indicated, net cash flows used in operating activities, provided by (used in) investing activities, and provided by financing activities (in thousands):

Current wording

The following table sets forth, for the periods indicated, net cash flows used in operating activities, provided by investing activities, and used in financing activities (in thousands):

Previous wording

Net cash used in operating activities consists primarily of net loss adjusted for certain non-cash items (including depreciation and amortization, bad debt expense, deferred taxes, loss on disposal of property, plant, and equipment, inventory reserve, amortization of debt issuance costs, and stock-based compensation expense), and the effect of changes in working capital and other activities.

Current wording

Net cash used in operating activities for both the three months ended March 31, 2026 and 2025 consisted primarily of net loss, adjusted for certain non-cash items, and changes in working capital and other operating activities.

Previous wording

Net cash used in operating activities was $11.5 million for the nine months ended September 30, 2024, which primarily consisted of net loss of $21.0 million plus net adjustments for non-cash charges of $12.4 million, offset by net changes in operating assets and liabilities of $2.9 million. The primary non-cash adjustments to net loss included $4.9 million of depreciation and amortization, a $4.2 million provision for inventory, $2.9 million of stock-based compensation, and $0.3 million of amortization of debt financing costs. The main drivers of the changes in operating assets and liabilities were a $0.9 million increase in prepaid and other current assets, a $0.7 million decrease in accrued liabilities, a $0.7 million increase in accounts receivable, a $0.4 million decrease in accounts payable, and a $0.3 million increase in inventories, partially offset by a $0.3 million decrease other non-current assets.

Current wording

Net cash used in operating activities was $3.4 million for the three months ended March 31, 2026, which primarily consisted of net loss of $4.6 million plus net adjustments for non-cash charges of $2.7 million, offset by net changes in operating assets and liabilities of $1.5 million. The primary non-cash adjustments to net loss included $1.6 million of depreciation and amortization, $0.7 million of stock-based compensation, and a $0.4 million provision for inventory. The main drivers of the changes in operating assets and liabilities were a $1.1 million increase in accounts receivable, a $0.8 million decrease in accrued liabilities, and a $0.2 million increase in inventories, partially offset by a $0.3 million increase in accounts payable, and a $0.2 million decrease in prepaid expenses and other current assets.

Previous wording

Net cash used in operating activities was $8.2 million for the nine months ended September 30, 2025, which primarily consisted of net loss of $12.5 million plus net adjustments for non-cash charges of $8.5 million, offset by net changes in operating assets and liabilities of $4.2 million. The primary non-cash adjustments to net loss included $4.8 million of depreciation and amortization, $2.7 million of stock-based compensation, and a $1.7 million provision for inventory, partially offset amortization of the discount on short-term investments of $0.5 million, and an adjustment to the loan exit fee of $0.5 million. The main drivers of the changes in operating assets and liabilities were a $1.8 million increase in inventories, a $1.5 million increase in prepaid expenses and other current assets, a $0.9 million increase in accounts receivable, and a $0.4 million decrease in accrued liabilities, partially offset by a $0.2 million increase in accounts payable.

Current wording

Net cash used in operating activities was $4.1 million for the three months ended March 31, 2025, which primarily consisted of net loss of $4.6 million plus net adjustments for non-cash charges of $2.3 million, offset by net changes in operating assets and liabilities of $1.8 million. The primary non-cash adjustments to net loss included $1.6 million of depreciation and amortization, $0.9 million of stock-based compensation, and $0.4 million provision for inventory, partially offset an adjustment to the loan exit fee of $0.5 million, and amortization of the discount on short-term investments of $0.2 million. The main drivers of the changes in operating assets and liabilities were a $1.3 million increase in accounts receivable, a $1.0 million decrease in accrued liabilities, and a $0.2 million increase in inventories, partially offset by a $0.7 million increase in accounts payable.

Previous wording

Net cash provided by investing activities was $7.5 million for the nine months ended September 30, 2025, which consisted of maturities of short-term investments of $22.0 million, partially offset by purchases of short-term investments of $13.7 million and purchases of property, plant, and equipment of $0.8 million.

Current wording

Net cash provided by investing activities was $1.8 million for the three months ended March 31, 2026, which consisted of maturities of short-term investments of $6.0 million, partially offset by purchases of short-term investments of $3.9 million and purchases of property, plant, and equipment of $0.2 million.

Previous wording

Net cash used in investing activities was $25.9 million for the nine months ended September 30, 2024, which consisted of purchases of short-term investments of $25.4 million and purchases of property, plant, and equipment of $0.6 million, partially offset by proceeds from the sale of certain long-lived assets of $0.1 million.

Current wording

Net cash used in investing activities was $3.8 million for the three months ended March 31, 2025, which consisted of maturities of short-term investments of $6.0 million, partially offset by purchases of short-term investments of $2.0 million and purchases of property, plant, and equipment of $0.2 million.

Previous wording

Net cash provided by financing activities was $0.2 million for the nine months ended September 30, 2025, which was primarily attributable to proceeds from long-term debt of $1.1 million, proceeds from financed insurance premiums of $0.3 million, and proceeds of $0.1 million from the issuance of common stock under our employee stock purchase plan, largely offset by the payment of exit fee costs of $1.1 million, repayment of financed insurance premiums of $0.2 million, and payment of debt issuance costs of $0.1 million.

Current wording

Net cash used in financing activities was $0.1 million for the three months ended March 31, 2025, which was primarily attributable to payment of exit fee costs of $1.1 million and repayment of financed insurance premiums of $0.1 million, largely offset by proceeds from long-term debt of $1.1 million.

Previous wording

For a discussion of our critical accounting estimates, refer to "Management’s Discussion and Analysis of Results of Operations and Financial Condition" in Part II, Item 7 and the notes to our financial statements in Part II, Item 8 of our 2024 Annual Report on Form 10-K. See also Note 2, Basis of Presentation and Summary of Significant Accounting Policies, to our condensed financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q. There have been no material changes to our critical accounting estimates since our 2024 Annual Report on Form 10-K.

Current wording

For a discussion of our critical accounting estimates, refer to "Management’s Discussion and Analysis of Results of Operations and Financial Condition" in Part II, Item 7 and the notes to our financial statements in Part II, Item 8 of our 2025 Annual Report on Form 10-K. See also “Notes to Financial Statements—Note 2. Basis of Presentation and Summary of Significant Accounting Policies,” to our condensed financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q. There have been no material changes to our critical accounting estimates since our 2025 Annual Report on Form 10-K.

Previous wording

the last day of our fiscal year following the fifth anniversary of the date of the closing of our initial public offering, which we completed in June 2021 (IPO);

Current wording

the last day of our fiscal year following the fifth anniversary of the date of the closing of our initial public offering, which we completed in June 2021;

Previous wording

A description of recent accounting pronouncements that may potentially impact our financial position, results of operations, or cash flows is disclosed in Note 2, Basis of Presentation and Summary of Significant Accounting Policies, to our condensed financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Current wording

A description of recent accounting pronouncements that may potentially impact our financial position, results of operations, or cash flows is disclosed in “Notes to Financial Statement—Note 2. Basis of Presentation and Summary of Significant Accounting Policies,” to our condensed financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.