Will Build-Tek be monetized directly, or is its value primarily in internal time savings and customer engagement, and what is its potential impact on revenue or OpEx?

Build-Tek will not be charged for; its purpose is to enhance custom manufacturing capabilities, increase brand strength, and bring more customers to custom products by simplifying the process. It's not expected to directly impact revenue or OpEx but rather drive custom product adoption. “This is about building our capability around custom manufacturing and enabling our customers to get those custom products faster. The configurator is really built upon training data for 30 years of manufacturing.”

Given the identified tailwinds (commercialization, biotech funding, commercial investments), is 20% growth still achievable for 2027, and what elements need to improve most?

The low $50 million revenue target for 2027 remains unchanged due to current lack of full visibility on the impact of tailwinds. If these factors materialize as expected, there could be upside, but prudence dictates maintaining the current target. “But if these things that I just mentioned do come to fruition and we start seeing those impacting our results, then there could be upside from there. But right now, that's what we're seeing.”

What is driving the increase in average revenue per customer in the Lab Essentials business, particularly whether it's expanding clinical trials work?

The increase is primarily driven by larger orders on the custom side of the Lab Essentials business, which grew significantly more than the catalog business. This is seen more in the tools diagnostics space (e.g., spatial, liquid biopsy companies) than in preclinical work. “So the average revenue per customer is likely a lot more driven by the fact that these orders are larger and more of the business is based on the custom side.”

TKNO

Alpha Teknova (TKNO) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Health Care· Aug 5, 2026

Source: earnings call transcript

Executive summary

Alpha Teknova Q2 FY26 — Record Revenue and Raised Full-Year Outlook

Alpha Teknova delivered a record-breaking second quarter, achieving its highest-ever quarterly revenue with broad-based growth across most target markets. The company raised its full-year revenue guidance, reflecting confidence in its commercial investments and the underlying market recovery, despite continued softness in the cell and gene therapy segment. Strategic initiatives like the Build-Tek AI configurator are expected to enhance customer engagement and custom product adoption.

Highlights

Total revenue grew 18% year-over-year to over $12 million, the highest quarterly revenue in company history.
Free cash outflow significantly reduced to $0.6 million in Q2 FY26, compared to $2.3 million in Q2 FY25.
Lab Essentials revenue increased 18% to $9.2 million, driven by higher average revenue per customer.
Clinical Solutions revenue increased 18% to $2.4 million, driven by an increased number of customers.
Gross margin improved to 40.1% in Q2 FY26, up from 38.7% in Q2 FY25.

Concerns

Cell and gene therapy-related accounts were down in Q2 FY26 due to order timing and muted demand.
Biopharma revenue has been muted year-to-date due to softness in cell and gene therapy orders.
Operating expenses increased to $7.8 million in Q2 FY26, primarily due to investments in sales and marketing capabilities.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year 2026 Total Revenue	$45 million to $47 million high materiality	FY26	High
Full-year 2027 Total Revenue	low $50 million high materiality	FY27	Medium
Full-year 2026 Gross Margin	mid- to upper 30s percentage range medium materiality	FY26	High
Quarterly Operating Expenses	at least $8 million per quarter medium materiality	Q3 FY26, Q4 FY26	High
Adjusted EBITDA Positive	before the end of 2027 high materiality	FY27	Medium
Annualized Revenue for Adjusted EBITDA Positive	$52 million to $57 million medium materiality	Future	High
Full-year 2026 Free Cash Outflow	less than $8 million medium materiality	FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Lab Essentials Revenue growth was attributable to higher average revenue per customer and, to a slightly lesser extent, an increased number of customers. The custom side grew significantly more than the catalog business. Q2 FY25 Revenue: $7.8 millionGrowth drivers: higher average revenue per customer, increased number of customers	$9.2 million	18%	—	—
Clinical Solutions The increase was attributable to an increased number of customers, partially offset by lower average revenue per customer due to the addition of newer GMP catalog customers. Revenue per customer is expected to increase as customers ramp up clinical purchase volumes and move to commercialization. This category can experience quarter-to-quarter lumpiness due to larger average order sizes. Q2 FY25 Revenue: $2.1 millionGrowth drivers: increased number of customers, partially offset by lower average revenue per customer	$2.4 million	18%	—	—

Product announcements

Product	Type	Timeline	Details
Build-Tek	launch	officially launched Q2 FY26 (soft launched last quarter)

Risks & headwinds

Muted demand in Cell and Gene Therapy (CGT) segment Q2 FY26, year-to-date 2026

down in Q2 FY26; biopharma revenue muted year-to-date

Mitigation:Company expects biotech funding increase to positively impact revenue with a 4-quarter lag, and commercial investments to translate to revenue by early 2027.

Seasonally light Q4 revenue Q4 FY26

Q4 is seasonally light for us typically because of the fewer business days in that year

Mitigation:Factored into the full-year guidance, with Q3 expected to be stronger than Q4.

What to watch in Q3 FY26

Biotech funding impact on revenue

end of 2026 or early 2027

Current Not yet seen in revenue, 4-quarter lag expected

Target Positive revenue impact from additional funding

Why it matters

Biotech funding has increased for three quarters, and its translation to Teknova's revenue is a key indicator of market recovery and future growth.

Given that we have historically seen an approximately four-quarter lag from funding changes to revenue recognition, we believe there may be a positive revenue impact from this additional funding at the end of this year or in early 2027.

Find out whether TKNO delivers this. Inve re-checks your case every morning.

Q&A highlights

What is the visibility on the order funnel for Q3/Q4, especially in biopharma/CDMO, and is the biotech funding impact coming earlier than the typical 4-quarter lag?

The funnel is strong, but current growth is not yet driven by biotech funding. Cell and gene therapy remains muted, though one Q2 order pushed to Q3 has no risk of further delay. The back half guidance does not factor in biotech funding flow-through.

“Our funnel looks strong. It is not due to what we believe the biotech funding flowing through yet, right? So we have not yet seen that happen.”

asked by Brendan Smith · answered by Stephen Gunstream

2 min read 5 chapters

Detailed narrative

Broad-Based Revenue Growth and Market Strength

Teknova achieved its highest quarterly revenue in company history, exceeding $12 million in Q2 FY26, representing 18% year-over-year growth. This growth was broad-based, with no single customer dominating, and sales increased across all major target segments except cell and gene therapy. The company noted particular strength in supporting customers in the liquid biopsy market and driving catalog sales through improved distributor engagement.

Future Growth Tailwinds and Biotech Funding

The company anticipates several tailwinds for 2027, including over 70 therapies/diagnostics using its products in clinical trials, with one expected commercialization by year-end 2027. This commercialization could increase customer purchases approximately tenfold. An increase in total biotech funding over the past three quarters is also expected to positively impact revenue by late 2026 or early 2027, following a typical four-quarter lag.

Commercial Investments Yielding Results

Investments made in the commercial organization since January 2026, including new lead generation resources and additions to the field sales team, are producing results ahead of plan. These efforts are enabling access to high-profile accounts and creating new opportunities, which are expected to translate into revenue by early 2027. The company will evaluate further commercial investments in late Q3/early Q4.

Launch of Build-Tek AI Configurator

Teknova officially launched Build-Tek, an AI-powered custom order configurator, which streamlines the design and quoting process for complex custom products. Trained on 30 years of manufacturing data, Build-Tek allows customers to create specifications in minutes, significantly reducing the weeks-long back-and-forth process. This tool is expected to increase brand strength and attract more customers to custom products, rather than being a direct revenue generator.

Operational Efficiency and Capacity

The company continues to focus on operational efficiency, with gross margin improving to 40.1% in Q2 FY26. Teknova currently operates its facilities at 4-5 days on one shift, indicating significant remaining capacity, estimated at up to $200 million in revenue, before requiring major capital expenditures for expansion. Current manufacturing projects focus on driving efficiency and new capabilities.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.