Alpha Teknova, Inc.

the conference over to your first speaker today, Senior Vice President of Marketing, Jennifer Henry. Please go ahead.

Thank you, Operator. Welcome to Technova's third quarter 2025 earnings conference call. With me on today's call are Stephen Gunstream, Technova's President and Chief Executive Officer, and Matt Lowell, Technova's Chief Financial Officer, who will make prepared remarks and then take your questions. As a reminder, the forward-looking statements that we make during this call, including those regarding business goals and expectations for the financial performance of the company, are subject to risks and uncertainties that may cause actual events or results to differ. Additional information concerning these risk factors is included in the press release the company issued earlier today, and they are more fully described in the company's various filings with the SEC. Today's comments reflect the company's current views which could change as a result of new information, future events, or other factors, and the company does not obligate or commit itself to update its forward-looking statements except as required by law. The company's management believes that, in addition to GAAP results, non-GAAP financial measures can provide meaningful insight in evaluating the company's financial performance and the effectiveness of its business strategies. We will therefore use non-GAAP financial measures of certain of our results during this call. Reconciliations of GAAP to non-GAAP financial measures are included in the press release that we issued this afternoon, which is posted on both Technova's and the SEC's website. Non-GAAP financial measures should always be considered only as a supplement to and not as a substitute for or as superior to financial measures prepared in accordance with GAAP. The non-GAAP financial measures in this presentation may differ from similarly named non-GAAP financial measures by other companies. Please also be advised that the company has posted a supplemental slide deck to accompany today's prepared remarks. It can be accessed on the investor relations section of Technova's website. And now I will turn the call over to Steven.

Thank you, Jen. Good afternoon and thank you everyone for joining us for our third quarter 2025 earnings call. We were encouraged by our third quarter results. Revenue increased by 9% compared to the same period last year making it the fifth consecutive quarter of year-over-year growth. That growth was driven by strength in sales of our Lab Essentials products, revenue from which grew 16%. We also executed extremely well operationally. I'm pleased with the progress we have made to prepare Technova for long-term, sustainable, above-market growth. Through investments we've made in distributor management, purchasing integration, and price optimization, we have succeeded once again in growing revenue double digits in catalog products, which represents the majority of our lab essentials revenue compared to the same period last year. We have also increased and diversified our clinical solutions customer base, which we believe will translate to significant revenue growth as these therapies and diagnostics move towards commercialization in the next two to three years. Operationally, we continue to execute extremely well. Key projects to drive operating efficiency and reduce costs, such as moving to electronic batch records, automating high-throughput dispensing lines, and adding larger batch size capabilities, are on track and expected to be operational in 2026. We are already seeing the results from previous investments through improved operational metrics, such as on-time delivery, which allow us to further differentiate Tefnova from other reagent suppliers in the marketplace. The progress made operationally over the past couple years has given us more confidence in our ability to scale Technova to more than $200 million in annualized revenue without significant additional capital investments. We also remain active in pursuing potential tuck-in acquisitions and collaborations to bolster our capabilities, reduce our time to profitability, and accelerate top-line growth. Now, I'd like to turn my attention to the broader market. As a reminder, we do not have material exposure to the geopolitical environment, given that our sales are predominantly in the United States. Only about $1 million annually of our raw materials we estimate are imported, and less than 4% of 2024 revenue was directly attributable to government, research institutes, and academic institutions. Nonetheless, we do have exposure to changes in biotech funding levels. because approximately 25% of our total revenue is derived from purchases of custom products by biopharma customers, most of which are supporting therapies in preclinical or early stage clinical trials. While the value of catalog products purchased by customers in this segment remains steady and growing in 2025, we have seen continued delays in larger purchases of custom products. Though we observed a sequential uptick in biotech funding in the third quarter, Unless we see sustained improvement in the biotech funding environment or advancement through clinical trials of the therapies we already support, we expect only modest improvement in this end market in 2026. Fortunately, the other 75% of our revenue from sales of catalog products and custom products across all other market segments has grown in the low double digits for the year-to-date period, and we are seeing an uptick in demand for custom reagents in these other segments of the market, such as animal health, life science tools, and diagnostics. Taken together, we remain very confident in our strategy and are optimistic for the long term. First, we have a foundational business that is predictable and growing that can support the company until the biopharma market returns to historical growth rates. Second, we have demonstrated our ability to execute operationally and commercially. And finally, we continue to attract and onboard new clinical solutions customers, which we believe, in combination with our Lab Essentials products, will allow us to achieve a sustainable 20% to 25% top-line growth as therapies and diagnostics migrate from research to commercialization. I will now hand the call over to Matt to talk through the financials.