Jacob Krahenbuhl

Jacob Krahenbuhl inquired about Teknova's adjusted EBITDA target for 2027, the updated annualized revenue range ($52M-$57M) needed for positive EBITDA, and the reasons for a more cautious outlook for 2026 compared to 2027. He also asked for clarification on the average expected revenue step-up per customer during the RUO to GMP transition and the number of therapies supported in Phase II and later.

Answer

Matt Lowell, CFO of Alpha Teknova, clarified that achieving positive adjusted EBITDA by the end of 2027 implies a quarterly revenue run rate of approximately $13M-$14M. He noted that while biotech fundraising in Q4 2025 and early 2026 is encouraging, sustained recovery is needed for a significant impact on 2026 guidance, making them more optimistic for 2027. Stephen Gunstream, President and CEO, added that the timing of revenue flow-through is a challenge for 2026 guidance. Mr. Gunstream confirmed supporting 60 clinical customers and over 70 therapies (5 in Phase II or later, 12 in Phase I), detailing a revenue step-up from 1x (Phase I) to 3x (late Phase II/III) to 30x (commercial).

Jacob Krahenbuhl asked for clarification on Teknova's adjusted EBITDA target for 2027, specifically the updated annualized revenue range of $52 million-$57 million, and what market developments are needed to bring forward bullishness for 2026.

Answer

Matt Lowell, CFO, clarified that achieving positive adjusted EBITDA by the end of 2027 implies a quarterly revenue run rate of approximately $13 million-$14 million. He expressed strong conviction in the planned investments but noted timing uncertainty, dependent on industry recovery and account penetration. Mr. Lowell highlighted encouraging biotech fundraising in Q4 2025 and early 2026 as a positive indicator for 2027, with potential upside for 2026 if sustained. Stephen Gunstream, President and CEO, added that multiple factors, including therapies nearing commercialization, diagnostics, biotech funding, and commercial investments, contribute to reaching the target, but the timing for 2026 guidance remains cautious.

Jacob Krahenbuhl asked what customers indicate would be the biggest catalyst to unlock spending, such as budget clarity or fund disbursement, and about the potential timeline for such an unlock.

Answer

CEO Serge Saxonov identified two primary factors based on customer feedback: long-term clarity on future budgets and, more immediately, the actual disbursement of awarded grant funds. He emphasized that the slow movement of money to researchers is a key factor holding back spending, and an acceleration here would provide the confidence to move forward with projects.

Jacob Krahenbuhl, on behalf of Matt Larue at William Blair & Company, inquired about the early uptake and sales strategy for the new Viper product and its potential contribution to 2025 guidance. He also asked about the sustainability of the record device sales for the Explorer product, given its reliance on specific grant funding.

Answer

CEO Kevin Knopp described Viper as a purpose-built, three-in-one analyzer for global customs, noting positive early feedback and a path to enterprise opportunities in 2026. CFO Joe Griffith added that Viper is primarily a 2026 growth story. Regarding Explorer, Kevin Knopp confirmed record Q2 placements (45 units) driven by strong demand for gas detection, with funding from the Assistant to Firefighters grant program expected to continue and increase under proposed legislation.

Jacob Krahenbuhl from William Blair asked for insights into the long-term P&L and margin structure of the company as a pure-play forensics business following the divestiture. He also questioned the company's capital allocation priorities for its new cash balance, weighing opportunities in S&M, R&D, or M&A.

Answer

CFO Joe Griffith explained that the divestiture eliminates roughly $20 million in annualized operating losses and sets a clear path to adjusted EBITDA positivity in Q4 2025 and cash flow positivity in 2026, with further margin leverage expected. Both Griffith and CEO Kevin Knopp stated that the near-term focus is on organic growth, feeling the organization is rightsized, but the strong balance sheet provides flexibility for opportunistic M&A if synergistic opportunities arise.