Teknova Delivers Record-Breaking Revenue Growth in Q3 2026

Welcome to Teknova's third quarter 2026 financial results conference call. Today, we're excited to share that the company has achieved its second consecutive quarter of record revenue growth, with a remarkable 22% increase compared to the same period last year.

According to Stephen Gunstream, Teknova's President and Chief Executive Officer, this impressive top-line growth is particularly noteworthy because it comes from sales of custom products to life science tools and diagnostics customers, as well as biopharma customers. The recent acceleration of revenue growth from sales to biopharma customers is seen as an early indication that the company is benefiting from the increase in biotech funding observed over the previous four quarters.

In a call with investors, Gunstream provided more color on the revenue growth, highlighting that catalog products, which were about 60% of revenue in 2025, have grown in the mid-single digits year to date. While sales to large pharma have grown in the mid-teens, total catalog growth was offset by headwinds from products sold into other biopharma end markets, like cell and gene therapy and contract manufacturing.

However, this quarter saw a significant uptick in custom product purchases from biopharma customers, much of which were for programs already in clinical trials. The growth was broad-based across multiple accounts and therapeutic modalities, combined with direct conversations with customers regarding planned purchases in 2027. This data leads the company to believe that the revenue growth is tied to the recent increase in biotech funding, which multiple sources report is up approximately 70% on a trailing 12-month basis.

Additionally, Teknova saw continued robust revenue growth from sales of custom products to tools and diagnostics customers, with notable demand from liquid biopsy and sequencing-related applications such as spatial biology. The company's internal performance is also commendable, with the number of custom order line items increasing by approximately 30% year to date, and a nearly 10% expansion of its customer base.

With this strong momentum heading into 2027, Teknova's management feels confident about the company's prospects. As Gunstream noted, "Given this backdrop, we feel confident as we head into 2027." The recent surge in biotech funding and the company's ability to capitalize on it are expected to drive further growth and success for Teknova in the coming year.