Alpha Teknova Reports $37.7 Million Revenue for Fiscal Year 2024, Reduces Net Loss

Alpha Teknova, Inc. reported a total revenue of $37.7 million for the fiscal year ending December 31, 2024, marking a 2.9% increase from $36.7 million in 2023. The growth was primarily driven by a 5.3% rise in Clinical Solutions revenue, which reached $7.1 million, while Lab Essentials revenue remained relatively stable at $28.9 million. The company experienced a net loss of $26.7 million in 2024, a notable improvement from the $36.8 million loss reported in the previous year. This reduction in losses was attributed to a decrease in operating expenses, which fell by 27.2% to $33.4 million, largely due to workforce reductions and lower spending in research and development.

In terms of strategic developments, Alpha Teknova undertook a significant workforce reduction in January 2024, affecting approximately 15% of its employees, which is expected to yield annual cost savings of around $6.4 million. Additionally, the company completed a private placement in July 2024, raising approximately $15.4 million, and entered into a new credit agreement with MidCap Financial Trust in March 2025, providing up to $28.245 million in loan commitments. This agreement includes minimum net revenue requirements and a minimum cash requirement, reflecting the company's ongoing efforts to stabilize its financial position.

Operationally, Alpha Teknova reported a customer retention rate of approximately 95% for customers spending over $10,000 annually, which constitutes about 15% of its customer base and 90% of its revenue. The company has approximately 3,000 customers, primarily in the life sciences sector, including pharmaceutical and biotechnology firms. As of December 31, 2024, the company employed 173 full-time staff, a reduction from previous years, reflecting its efforts to streamline operations.

Looking ahead, Alpha Teknova's management expressed cautious optimism regarding future growth, particularly in the cell and gene therapy markets, which have seen increased FDA approvals. The company aims to leverage its expertise in custom reagents and manufacturing processes to capture a larger share of this expanding market. However, management also acknowledged the potential impact of broader economic conditions, including inflation and interest rate fluctuations, on customer spending and overall demand for its products.

In summary, while Alpha Teknova has shown signs of improved financial performance and strategic positioning, it continues to navigate challenges related to market conditions and operational efficiency. The company's focus on cost management and customer retention, alongside its recent capital raises, positions it for potential growth in the evolving life sciences landscape.