Press Release: Azenta Reports Second Quarter Results for Fiscal 2026, Ended March 31, 2026, Updates Full Year Fiscal 2026 Guidance, and Extends Long-Range Plan to 2029

Dow Jones
05/06
   -- FY'26 total reported revenue from continuing operations to range between 
      approximately $603 to $621 million 
 
   -- FY'26 organic revenue is now expected to range from down approximately 2% 
      to up 1%, compared to prior guidance of 3% to 5% growth 
 
   -- FY'26 Adjusted EBITDA margin is now expected to range from down 
      approximately 125 basis points to flat, compared to prior expectations of 
      approximately 300 basis points of expansion 
 
   -- Long-range plan timing updated to 2029 versus 2028 before in connection 
      with revised 2026 guidance. Market opportunities, strategic priorities, 
      and value creation framework remain intact. 

BURLINGTON, Mass., May 5, 2026 /PRNewswire/ -- Azenta, Inc. (Nasdaq: AZTA) today reported financial results for the second quarter ended March 31, 2026.

 
 
 
The results of B Medical Systems are treated as discontinued operations and 
reflected in total diluted EPS, following the Company's announcement in the 
first fiscal quarter of 2025 of its intention to pursue a sale and the entry 
into a definitive agreement to sell the business. 
 
                                         Quarter Ended 
                 ------------------------------------------------------------- 
Dollars in 
millions, 
except per 
share data         March 31,     December 31,    March 31,        Change 
                                                             Prior 
                          2026             2025     2025(1)   Qtr    Prior Yr. 
                 -------------  ---------------  ----------  ------  --------- 
Revenue from 
 Continuing 
 Operations           $    145        $     149   $     143   (3) %        1 % 
   Organic 
    growth                                                               (3) % 
   Sample 
    Management 
    Solutions     $         81  $            81  $       80   (0) %        2 % 
   Multiomics     $         64  $            67  $       64   (5) %        0 % 
 
Diluted EPS 
 Continuing 
 Operations         $   (3.41)      $    (0.11)  $   (0.43)    NM       NM 
Diluted EPS 
 Total              $   (3.49)      $    (0.34)  $   (1.04)    NM       NM 
 
Non-GAAP 
 Diluted EPS 
 Continuing 
 Operations         $   (0.04)       $     0.09     $  0.01    NM       NM 
Adjusted EBITDA 
 - Continuing 
 Operations      $           8  $            13  $       12  (39) %     (36) % 
Adjusted EBITDA 
 Margin - 
 Continuing 
 Operations              5.4 %            8.5 %       8.5 % 
 
(1) Reflects revisions for an immaterial classification error among cost of 
revenue, research and development expenses,    and selling, general and 
administrative expenses, and other immaterial adjustments, as further 
described in the Annual    Report on Form 10-K for the fiscal year ended 
September 30, 2025. 
 
 

Management Comments

"Our second quarter results fell short of our expectations, reflecting both execution gaps and a more cautious demand environment, particularly in North America," said John Marotta, President and CEO of Azenta Life Sciences. "As a result, we have revised our fiscal 2026 outlook and taken decisive actions to strengthen execution, reinforce operational discipline, and improve visibility across the business. At the same time, we saw areas of resilience, including continued growth in Sample Repository Solutions and Consumables and Instruments, reinforcing the strength of our recurring revenue offerings.

In 2026, our priority is the transformation of our Multiomics business, with a focus on strengthening commercial execution, optimizing our operating footprint, and improving productivity through Azenta Business System. We have strengthened leadership and are increasing operational rigor to drive greater accountability and consistency across the organization.

Given the updated 2026 outlook, we are extending the timeline of our long--range plan targets from 2028 to 2029. This reflects a disciplined and prudent approach to execution in the current environment and, while postponing achievement of the financial targets, does not change our confidence in our strategy. While near--term conditions remain measured, we continue to see a compelling long--term market opportunity and believe the actions underway position Azenta for improved execution, greater consistency, and profitable long--term value creation."

Second Quarter Fiscal 2026 Results - Continuing Operations

   -- Revenue was $145 million, up 1% year over year. Organic revenue, which 
      excludes a 3-percentage point impact from foreign exchange and a 
      1-percentage point from the acquisition of UK Biocentre Limited, declined 
      3% year over year, reflecting lower revenue in Multiomics and in Sample 
      Management Solutions. 
 
   -- Sample Management Solutions revenue was $81 million, up 2% over year. 
 
          -- Organic revenue, which excludes the impact from foreign exchange 
             and the contribution from the acquisition of UK Biocentre Limited, 
             declined 3%, mainly driven by lower revenue in Core Products, 
             particularly in Automated Stores and Cryogenic Systems, partially 
             offset by higher revenue in Sample Repository Solutions, Product 
             Services and Consumables and Instruments. 
 
   -- Multiomics revenue was $64 million, flat year over year. 
 
          -- Organic revenue, which excludes the impact from foreign exchange, 
             was down 2% year over year, primarily driven by lower Sanger 
             Sequencing revenue, partially offset by higher revenue in Next 
             Generation Sequencing and Gene Synthesis. 

Summary of GAAP Earnings Results - Continuing Operations

   -- Operating loss was $165.8 million. Operating margin was (114.5%), down 
      102% year over year. 
 
          -- Gross margin was 42.8%, down 96 basis points year over year, 
             driven by lower fixed-cost absorption from reduced volumes in 
             North America, as well as costs related to Automated Stores rework, 
             and an increase in inventory reserves recorded during the period. 
 
          -- Operating expenses in the quarter were $228 million, up 181% 
             year-over-year, primarily driven by a non-cash goodwill impairment 
             charge of $149 million. The increase also reflects higher research 
             and development expenses, partially offset by lower selling, 
             general and administrative expenses and lower restructuring 
             charges. 
 
   -- Total other income included $4 million of net interest income and $4 
      million gain related to the non-cash settlement of a preexisting 
      contractual relationship with UK Biocentre Limited, versus $4 million and 
      $1 million, respectively, in the prior year period. 
 
   -- Diluted EPS from continuing operations was ($3.41) compared to ($0.43) in 
      the second quarter of fiscal year 2025. Diluted EPS from discontinued 
      operations was ($0.08), compared to ($0.61) a year ago. Total diluted EPS 
      was ($3.49), compared to ($1.04) a year ago. 

Summary of Non-GAAP Earnings Results - Continuing Operations

   -- Adjusted operating loss was $7.0 million. Adjusted operating margin was 
      (4.9%), a decrease of 300 basis points year over year. 
 
          -- Adjusted gross margin was 44.3%, down 110 basis points compared to 
             the second quarter of fiscal 2025, driven by lower fixed-cost 
             absorption from reduced volumes in North America, costs related to 
             Automated Stores rework, and an increase in inventory reserves 
             recorded during the period. 
 
          -- Adjusted operating expenses in the quarter were $71 million, up 5% 
             year over year, driven by higher research and development costs 
             and higher selling, general and administrative expenses. 
 
   -- Adjusted EBITDA was $7.8 million, and Adjusted EBITDA margin was 5.4%, a 
      decrease of 320 basis points year over year. 
 
   -- Non-GAAP Diluted EPS was ($0.04), compared to $0.01 one year ago. 

Cash and Liquidity as of March 31, 2026

   -- The Company ended the quarter with a total balance of cash, cash 
      equivalents, restricted cash and marketable securities of $565 million. 
 
   -- Operating cash flow was $12 million in the quarter. Capital expenditures 
      were $7 million, and free cash flow (cash flow from operations less 
      capital expenditures) was $5 million. 

Share Repurchase Program Update

   -- On December 8, 2025, our Board of Directors approved a share repurchase 
      program authorizing the repurchase of up to $250 million of our common 
      stock through December 31, 2028, or the 2025 Repurchase Program. 
      Repurchases under the 2025 Repurchase Program may be made in the open 
      market or through privately negotiated transactions (including under an 
      accelerated share repurchase agreement), or by other means, including 
      through the use of trading plans intended to qualify under Rule 10b5-1 
      under the Exchange Act, subject to market and business conditions, legal 
      requirements, and other factors. We are not obligated to acquire any 
      particular amount of common stock under the 2025 Repurchase Program, and 
      share repurchases may be commenced or suspended at any time at our 
      discretion. As of the date of this press release , there have been no 
      repurchases under the 2025 Repurchase Program. 

Updated Fiscal 2026 Guidance -- Continuing Operations

   -- The Company now expects total reported revenue from continuing operations 
      to range between approximately $603 to $621 million for the fiscal year 
      ending September 30, 2026. 
 
   -- Total organic revenue, which excludes the impact of foreign exchange and 
      the contribution from the acquisition of UK Biocentre Limited, is now 
      expected to range between down approximately 2% to up 1% relative to 
      fiscal 2025, compared to prior guidance of 3% to 5% growth. 
 
          -- Organic revenue for Sample Management Solutions is now expected to 
             grow approximately low-single-digits, versus prior expectations of 
             mid-single-digit growth. 
 
          -- Organic revenue for Multiomics is now expected to decline 
             approximately mid-single-digits, versus prior expectations of 
             low-single-digit growth. 
 
   -- Adjusted EBITDA margin is now expected to decline in a range of 
      approximately 125 basis points to flat relative to fiscal 2025, compared 
      to prior expectations of approximately 300 basis points expansion. This 
      outlook excludes an expected dilution of approximately 35 basis points 
      from the UK Biocentre acquisition. 
 
   -- Free Cash flow (cash flow from operations less capital expenditures) is 
      now expected to improve approximately 10% to 15% year-over-year, compared 
      to prior expectations of approximately 30% improvement. 

Long-Range Plan Update

   -- In connection with the revised 2026 outlook, the Company is extending the 
      timeline of its long-range plan by one year, from 2028 to 2029. The 
      Company continues to believe in the strength of its market opportunities, 
      strategic priorities, and long-term value creation framework. 

Sale of B Medical Systems

   -- On December 23, 2025, we entered into a definitive Sale and Purchase 
      Agreement with Thelema S.À R.L. for the sale of B Medical Systems 
      business, for a purchase price of $63 million. As previously disclosed, 
      the transaction was expected to close on or before March 31, 2026, 
      subject to the satisfaction of customary closing conditions, including 
      the buyer securing required financing. On March 27, 2026, the Company was 
      informed by Thelema that it has not yet secured the financing required to 
      complete the transaction and, as a result, the transaction did not close 
      by March 31, 2026. Thelema has indicated that it requires additional time 
      to complete its financing arrangements. The transaction remains subject 
      to the satisfaction of all closing conditions, including the buyer 
      securing the required financing, and there can be no assurance that the 
      transaction will be completed on a revised timeline or at all. The 
      parties have not amended or terminated the agreement as of the date of 
      this press release. 

Azenta does not provide forward-looking guidance on a GAAP basis for the measures on which it provides forward-looking non-GAAP guidance as the Company is unable to provide a quantitative reconciliation of forward-looking non-GAAP measures to the most directly comparable forward-looking GAAP measure, without unreasonable effort, because of the inherent difficulty in accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliations that have not yet occurred, are dependent on various factors, are out of the company's control, or cannot be reasonably predicted. Such adjustments include, but are not limited to, transformation costs, restructuring charges, costs related to acquisitions and divestitures costs, governance-related matters, goodwill and intangible impairments, stock-based compensation, and other gains and charges that are not representative of the normal operations of the business.

Conference Call and Webcast

Azenta management will webcast its second quarter fiscal 2026 earnings conference call on May 06, 2026 at 8:30 a.m. Eastern Time. During the call, Company management will respond to questions concerning, but not limited to, the Company's financial performance, business conditions and industry outlook. Management's responses could contain information that has not been previously disclosed.

The call will be broadcast live over the Internet and, together with presentation materials and supplemental information referenced on the call, will be hosted at the Investor Relations section of Azenta's website at https://investors.azenta.com/events. The supplemental information is being posted at the time of this earnings release, and the presentation materials will be posted ahead of the earnings call. A replay of the webcast will be archived on the website for convenient on-demand access.

Regulation G -- Use of Non-GAAP financial Measures

The Company supplements its GAAP financial measures with certain non-GAAP financial measures to provide investors a better perspective on the results of business operations, which the Company believes is more comparable to the similar analyses provided by its peers. These measures are not presented in accordance with, nor are they a substitute for, U.S. generally accepted accounting principles, or GAAP. These measures should always be considered in conjunction with appropriate GAAP measures. A reconciliation of non-GAAP measures to the most nearly comparable GAAP measures is included at the end of this release following the consolidated balance sheets and statements of operations. Certain amounts in the tables that supplement the consolidated financial statements may not sum due to rounding. All percentages are calculated using unrounded amounts.

"Safe Harbor Statement" under Section 21E of the Securities Exchange Act of 1934

Some statements in this release are forward-looking statements made under Section 21E of the Securities Exchange Act of 1934. These statements are neither promises nor guarantees but involve risks and uncertainties, both known and unknown, that could cause Azenta's actual financial and business results to differ materially from those expressed or implied by such statements. They are based on the facts and assumptions known to management at the time they are made. Forward looking statements include, but are not limited to, statements regarding the Company's guidance and outlook for fiscal year 2026, including revenue, organic revenue growth, earnings, Adjusted EBITDA margin and free cash flow expectations; expectations regarding the timing, execution and benefits of operational, commercial and organizational transformation initiatives; anticipated productivity improvements and cost actions; expectations regarding demand trends and end market conditions; statements regarding the Company's long range plan and multi-year financial targets, including the extension of the long range plan timeline to 2029.

Factors that could cause actual results to differ materially from those expressed or implied by forward looking statements include, but are not limited to: the Company's ability to execute on and realize the expected benefits from its transformation and operational improvement initiatives; changes in customer demand, purchasing behavior or funding conditions in the markets the Company serves; macroeconomic, geopolitical or regulatory developments; the impact of foreign currency fluctuations; the Company's ability to effectively manage costs, improve productivity and achieve anticipated margin improvements; supply chain disruptions; competitive dynamics; the ability of customers to meet payment obligations; uncertainty regarding the timing or completion of the B Medical Systems divestiture; and other risks and uncertainties described in the Company's filings with the Securities and Exchange Commission, including but not limited to its Annual Report on Form 10 K, Quarterly Reports on Form 10 Q and Current Reports on Form 8 K. Because forward looking statements relate to future events and are based on current expectations, they are inherently subject to significant uncertainties, particularly with respect to projections and assumptions extending over multiple years. As a result, actual outcomes may differ materially from those projected.

Azenta expressly disclaims any obligation or undertaking to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

About Azenta Life Sciences

Azenta, Inc. (Nasdaq: AZTA) is a leading provider of life sciences solutions worldwide, enabling life science organizations around the world to bring impactful breakthroughs and therapies to market faster. Azenta provides a full suite of reliable cold-chain sample management solutions and multiomics services across areas such as drug development, clinical research and advanced cell therapies for the industry's top pharmaceutical, biotech, academic and healthcare institutions globally. Our global team delivers and supports these products and services through our industry-leading brands, including GENEWIZ, FluidX, Ziath, 4titude, Limfinity, Freezer Pro, and Barkey.

Azenta is headquartered in Burlington, Massachusetts, with operations in North America, Europe, and Asia. For more information, please visit www.azenta.com.

AZENTA INVESTOR CONTACTS:

Yvonne Perron

Vice President, Financial Planning & Analysis and Investor Relations

ir@azenta.com

Maria Isabel Cuartas

Manager Investor Relations

ir@azenta.com

 
                                     AZENTA, INC. 
                         CONSOLIDATED STATEMENTS OF OPERATIONS 
                                      (unaudited) 
                         (In thousands, except per share data) 
 
                         Three Months Ended                   Six Months Ended 
                              March 31,                           March 31, 
                 ----------------------------------  ---------------------------------- 
                       2026              2025              2026              2025 
                 ----------------  ----------------  ----------------  ---------------- 
Revenue 
Products           $       37,642    $       41,955    $       78,726    $       85,782 
Services                  107,153           101,383           214,711           204,992 
                 ----------------  ----------------  ----------------  ---------------- 
   Total 
    revenue               144,795           143,338           293,437           290,774 
                 ----------------  ----------------  ----------------  ---------------- 
Cost of revenue 
Products                   22,122            24,994            46,871            49,035 
Services                   60,638            55,561           120,825           110,137 
                 ----------------  ----------------  ----------------  ---------------- 
   Total cost 
    of revenue             82,760            80,555           167,696           159,172 
                 ----------------  ----------------  ----------------  ---------------- 
Gross profit               62,035            62,783           125,741           131,602 
                 ----------------  ----------------  ----------------  ---------------- 
Operating 
expenses 
Research and 
 development                9,433             7,602            18,622            14,715 
Selling, 
 general and 
 administrative            67,887            69,795           128,498           139,771 
Impairment of 
 goodwill and 
 intangible 
 assets                   149,083                --           149,083                -- 
Restructuring 
 charges                    1,422             3,580             2,565             4,011 
                 ----------------  ----------------  ----------------  ---------------- 
   Total 
    operating 
    expenses              227,825            80,977           298,768           158,497 
                 ----------------  ----------------  ----------------  ---------------- 
   Operating 
    loss                (165,790)          (18,194)         (173,027)          (26,895) 
Other income 
Interest 
 income, net                4,387             4,489             9,485             8,787 
Other income, 
 net                        4,059             1,158             4,138             2,362 
                 ----------------  ----------------  ----------------  ---------------- 
   Loss from 
    continuing 
    operations 
    before 
    income 
    taxes               (157,344)          (12,547)         (159,404)          (15,746) 
Income tax 
 (benefit) 
 expense                    (323)             7,243             2,807            11,117 
                 ----------------  ----------------  ----------------  ---------------- 
 Loss from 
  continuing 
  operations            (157,021)          (19,790)         (162,211)          (26,863) 
 Loss from 
  discontinued 
  operations, 
  net of tax              (3,777)          (27,871)          (14,019)          (31,790) 
                 ----------------  ----------------  ----------------  ---------------- 
 Net loss            $  (160,798)      $   (47,661)      $  (176,230)      $   (58,653) 
                 ================  ================  ================  ================ 
Basic net loss 
per share: 
 Loss from 
  continuing 
  operations     $         (3.41)  $         (0.43)  $         (3.53)  $         (0.59) 
 Loss from 
  discontinued 
  operations, 
  net of tax     $         (0.08)  $         (0.61)  $         (0.30)  $         (0.70) 
                 ----------------  ----------------  ----------------  ---------------- 
Basic net loss 
 per share       $         (3.49)  $         (1.04)  $         (3.83)  $         (1.29) 
                 ================  ================  ================  ================ 
Diluted net 
loss per 
share: 
 Loss from 
  continuing 
  operations     $         (3.41)  $         (0.43)  $         (3.53)  $         (0.59) 
 Loss from 
  discontinued 
  operations, 
  net of tax     $         (0.08)  $         (0.61)  $         (0.30)  $         (0.70) 
                 ----------------  ----------------  ----------------  ---------------- 
Diluted net 
 loss per 
 share           $         (3.49)  $         (1.04)  $         (3.83)  $         (1.29) 
                 ================  ================  ================  ================ 
Weighted 
average shares 
used in 
computing net 
loss per 
share: 
 Basic                     46,063            45,732            45,995            45,658 
 Diluted                   46,063            45,732            45,995            45,658 
 
 
                                AZENTA, INC. 
                        CONSOLIDATED BALANCE SHEETS 
                                (unaudited) 
              (In thousands, except share and per share data) 
 
                                          March 31,         September 30, 
                                          ----------------  ---------------- 
 
Assets 
 Current assets 
   Cash and cash equivalents              $        234,033  $        279,783 
   Short-term marketable securities                146,484            61,137 
   Accounts receivable, net of allowance 
    for expected credit losses 
    ($4,481and $4,649, respectively)               131,318           142,181 
   Inventories                                      78,510            74,956 
   Short-term restricted cash                        2,410             2,359 
   Refundable income taxes                           6,838             9,728 
   Prepaid expenses and other current 
    assets                                          50,214            64,660 
   Current assets held for sale                     77,178            73,535 
                                          ----------------  ---------------- 
     Total current assets                          726,985           708,339 
 Property, plant and equipment, net                171,832           153,954 
 Long-term marketable securities                   177,831           201,585 
 Long-term deferred tax assets                         501               726 
 Operating lease right-of-use assets                59,451            54,048 
 Goodwill                                          552,396           702,395 
 Intangible assets, net                             92,107           101,814 
 Long-term income taxes receivable                  45,600            45,600 
 Other assets                                        8,814             6,115 
 Noncurrent assets held for sale                    68,372            85,006 
                                          ----------------  ---------------- 
     Total assets                            $   1,903,889     $   2,059,582 
                                          ================  ================ 
Liabilities and stockholders' equity 
 Current liabilities 
   Accounts payable                           $     33,136      $     37,722 
   Deferred revenue                                 39,013            31,569 
   Derivative liability                             29,615            33,420 
   Accrued warranty and retrofit costs               4,157             4,713 
   Accrued compensation and benefits                29,146            35,799 
   Accrued customer deposits                        36,217            26,499 
   Accrued income taxes payable                      8,753             9,416 
   Accrued expenses and other current 
    liabilities                                     45,739            30,268 
   Current liabilities held for sale                31,416            28,268 
                                          ----------------  ---------------- 
     Total current liabilities                     257,192           237,674 
 Long-term deferred tax liabilities                 15,747            18,245 
 Long-term operating lease liabilities              55,711            51,244 
 Other long-term liabilities                        10,892            11,142 
 Noncurrent liabilities held for sale                9,670            14,291 
                                          ----------------  ---------------- 
     Total liabilities                             349,212           332,596 
                                          ----------------  ---------------- 
 
Stockholders' equity 
 Preferred stock, $0.01 par value - 
 1,000,000 shares authorized, no shares 
 issued or outstanding                                  --                -- 
 Common stock, $0.01 par value - 
  125,000,000 shares authorized, 
  59,553,293 shares issued and 
  46,091,424 shares outstanding at March 
  31, 2026; 59,320,848 shares issued and 
  45,858,979 shares outstanding at 
  September 30, 2025                                   596               594 
 Additional paid-in capital                        538,782           529,605 
 Accumulated other comprehensive loss             (27,471)          (22,213) 
 Treasury stock, at cost - 13,461,869 
  shares at March 31, 2026 and September 
  30, 2025                                       (200,956)         (200,956) 
 Retained earnings                               1,243,726         1,419,956 
                                          ----------------  ---------------- 
   Total stockholders' equity                    1,554,677         1,726,986 
                                          ----------------  ---------------- 
     Total liabilities and stockholders' 
      equity                                 $   1,903,889     $   2,059,582 
                                          ================  ================ 
 
 
                                AZENTA, INC. 
                   CONSOLIDATED STATEMENTS OF CASH FLOWS 
                                (unaudited) 
                               (In thousands) 
 
                                              Six Months Ended March 31, 
                                          ---------------------------------- 
                                                2026              2025 
                                          ----------------  ---------------- 
Cash flows from operating activities 
 Net loss                                 $      (176,230)  $       (58,653) 
 Adjustments to reconcile net loss to 
 net cash provided by operating 
 activities: 
   Depreciation and amortization                    27,650            32,053 
   Impairment of goodwill and intangible 
   assets                                          149,083                -- 
   Non-cash gain from settlement of 
   preexisting contractual relationship            (3,858)                -- 
   Loss on assets held for sale                     15,965            31,848 
   Inventory write-downs and other asset 
    write-offs                                       1,883             4,326 
   Stock-based compensation                         10,420            13,453 
   Amortization and accretion on 
    marketable securities                            (682)             (983) 
   Deferred income taxes                           (5,298)           (4,183) 
   Loss (gain) on disposals of property, 
    plant and equipment                                 19               (7) 
 Changes in operating assets and 
 liabilities: 
     Accounts receivable                             8,541             6,713 
     Inventories                                   (6,700)           (5,780) 
     Accounts payable                              (4,380)             1,981 
     Deferred revenue                                7,141            12,042 
     Accrued warranty and retrofit costs             (122)               343 
     Accrued compensation and tax 
      withholdings                                 (6,245)           (1,956) 
     Accrued restructuring costs                       506             1,547 
     Other assets and liabilities                   15,338            11,457 
                                          ----------------  ---------------- 
      Net cash provided by operating 
       activities                                   33,031            44,201 
                                          ----------------  ---------------- 
Cash flows from investing activities 
 Purchases of property, plant and 
  equipment                                       (13,595)          (15,158) 
 Purchases of marketable securities              (328,835)         (236,237) 
 Sales and maturities of marketable 
  securities                                       266,470           184,636 
 Acquisition of UK Biocentre, net of 
 cash acquired                                     (9,688)                -- 
 Proceeds from other investment                         --             2,130 
 Net investment hedge settlement                        --             3,043 
 Deposit received for the sale of B 
 Medical Systems business                            9,000                -- 
                                          ----------------  ---------------- 
      Net cash used in investing 
       activities                                 (76,648)          (61,586) 
                                          ----------------  ---------------- 
Cash flows from financing activities 
 Proceeds from issuance of common stock              1,179             1,553 
 Payments of finance leases                          (411)             (457) 
 Withholding tax payments on net share 
 settlements on equity awards                      (2,420)                -- 
 Excise tax payment for settled share 
  repurchases                                           --          (11,376) 
                                          ----------------  ---------------- 
      Net cash used in financing 
       activities                                  (1,652)          (10,280) 
                                          ----------------  ---------------- 
Effects of exchange rate changes on 
 cash, cash equivalents and restricted 
 cash                                              (2,128)           (4,459) 
                                          ----------------  ---------------- 
Net decrease in cash, cash equivalents 
 and restricted cash                              (47,397)          (32,124) 
Cash, cash equivalents and restricted 
 cash, beginning of period                         296,685           320,990 
                                          ----------------  ---------------- 
Cash, cash equivalents and restricted 
 cash, end of period                          $    249,288    $      288,866 
                                          ================  ================ 
Supplemental disclosures: 
 Cash paid / (received) for income 
  taxes, net                                  $      3,466     $     (4,594) 
 Purchases of property, plant and 
  equipment included in accounts payable 
  and accrued expenses                        $      5,296       $     5,773 
 
Reconciliation of cash, cash equivalents 
and restricted cash to the condensed 
consolidated balance sheets 
                                          ----------------  ---------------- 
                                             March 31,       September 30, 
                                                2026              2025 
 Cash and cash equivalents of continuing 
  operations                               $       234,033       $   279,783 
 Cash included in current assets held 
  for sale                                           8,763            13,206 
 Short-term restricted cash                          2,410             2,359 
 Long-term restricted cash included in 
  other assets                                       4,082             1,337 
                                          ----------------  ---------------- 
   Total cash, cash equivalents and 
    restricted cash shown in the 
    condensed consolidated statements of 
    cash flows                             $       249,288   $       296,685 
                                          ================  ================ 
 

Notes on Non-GAAP Financial Measures - Continuing Operations

Non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management adjusts the GAAP results for the impact of amortization of intangible assets, restructuring charges, purchase price accounting adjustments and charges related to M&A, non-recurring costs related to the Company's business transformation initiatives and share repurchases to provide investors better perspective on the results of operations which the Company believes is more comparable to the similar analysis provided by its peers. Management also excludes special charges and gains, such as impairment losses, gains and losses from the sale of assets, certain tax benefits and charges, as well as other gains and charges that are not representative of the normal operations of the business. Management strongly encourages investors to review our financial statements and publicly filed reports in their entirety and not rely on any single measure.

 
                                                  Quarter Ended 
                  ----------------------------------------------------------------------------- 
                       March 31, 2026           December 31, 2025         March 31, 2025(*) 
                  -------------------------  ------------------------  ------------------------ 
Amounts in 
thousands,                         per                       per                       per 
except per share                  diluted                   diluted                   diluted 
data                   $           share         $           share         $           share 
                  -----------  ------------  ----------  ------------  ----------  ------------ 
Net loss from 
 continuing 
 operations       $ (157,021)  $     (3.41)  $  (5,190)    $   (0.11)  $ (19,790)    $   (0.43) 
Adjustments: 
---------------- 
 Amortization of 
  completed 
  technology            2,076          0.05       1,860          0.04       2,308          0.05 
 Amortization of 
  other 
  intangible 
  assets                3,563          0.08       3,551          0.08       3,803          0.08 
 Transformation 
  costs(1)                440          0.01       1,202          0.03       5,183          0.11 
 Restructuring 
  charges               1,422          0.03       1,143          0.02       3,580          0.08 
 Impairment of 
  goodwill and 
  intangible 
  assets(2)           149,083          3.24          --            --          --            -- 
 Merger and 
  acquisition 
  costs(3)              2,175          0.05          13          0.00         688          0.02 
 Non-recurring 
  other 
  income(4)           (3,858)        (0.08)          --            --     (2,130)        (0.05) 
 Tax 
  adjustments(5)           --            --          --            --       6,900          0.15 
 Tax effect of 
  adjustments             331          0.01       1,570          0.03          98          0.00 
 Other 
  adjustments              13          0.00          13          0.00        (17)          0.00 
                  -----------  ------------  ----------  ------------  ----------  ------------ 
Non-GAAP 
 adjusted net 
 income (loss) 
 from continuing 
 operations       $   (1,776)    $   (0.04)   $   4,162  $       0.09    $    623  $       0.01 
                  -----------  ------------  ----------  ------------  ----------  ------------ 
 Stock-based 
  compensation, 
     pre-tax            6,268          0.14       3,862          0.08       8,031          0.18 
   Tax rate              13 %            --        13 %            --        17 %            -- 
 Stock-based 
  compensation, 
  net of tax            5,453          0.12       3,360          0.07       6,690          0.15 
                  -----------  ------------  ----------  ------------  ----------  ------------ 
Non-GAAP 
 adjusted net 
 income 
 excluding 
 stock-based 
 compensation - 
 continuing 
 operations         $   3,677  $       0.08   $   7,522  $       0.16    $  7,313  $       0.16 
                  ===========  ============  ==========  ============  ==========  ============ 
 
 Shares used in 
  computing 
  non-GAAP 
  diluted net 
  income per 
  share                              46,063                    45,929                    45,732 
 
 
                                            Six Months Ended 
                  -------------------------------------------------------------------- 
                            March 31, 2026                   March 31, 2025(*) 
                  ----------------------------------  -------------------------------- 
Amounts in 
thousands,                                per                               per 
except per share                        diluted                           diluted 
data                     $               share              $              share 
                  ---------------  -----------------  -------------  ----------------- 
Net loss from 
 continuing 
 operations        $    (162,211)  $          (3.53)  $    (26,863)  $          (0.59) 
Adjustments: 
---------------- 
 Amortization of 
  completed 
  technology                3,935               0.09          3,808               0.08 
 Amortization of 
  other 
  intangible 
  assets                    7,113               0.15          8,376               0.18 
 Transformation 
  costs(1)                  1,642               0.04          8,229               0.18 
 Restructuring 
  charges                   2,565               0.06          4,011               0.09 
 Impairment of 
  goodwill and 
  intangible 
  assets(2)               149,083               3.24             --                 -- 
 Merger and 
  acquisition 
  costs(3)                  2,188               0.05          2,258               0.05 
 Non-recurring 
  other 
  income(4)               (3,858)             (0.08)        (2,130)             (0.05) 
 Tax 
  adjustments(5)               --                 --          7,300               0.16 
 Tax effect of 
  adjustments               1,901               0.04          1,106               0.02 
 Other 
  adjustments                  26               0.00            (9)               0.00 
                  ---------------  -----------------  -------------  ----------------- 
Non-GAAP 
 adjusted net 
 income from 
 continuing 
 operations       $         2,384   $           0.05     $    6,086   $           0.13 
                  ---------------  -----------------  -------------  ----------------- 
 Stock-based 
  compensation, 
  pre-tax                  10,130               0.22         12,904               0.28 
 Tax rate                    13 %                 --           17 %                 -- 
 Stock-based 
  compensation, 
  net of tax                8,813               0.19         10,710               0.23 
                  ---------------  -----------------  -------------  ----------------- 
Non-GAAP 
 adjusted net 
 income 
 excluding 
 stock-based 
 compensation - 
 continuing 
 operations           $    11,197   $           0.24     $   16,796   $           0.37 
                  ===============  =================  =============  ================= 
 
 Shares used in 
  computing 
  non-GAAP 
  diluted net 
  income per 
  share                                       45,995                            45,658 
 
 
 
(*)  See footnote (1) on Page 1. 
(1)  Transformation costs represent non-recurring expenses for strategic 
     projects with anticipated long-term benefits to the Company focused on 
     cost reduction and productivity improvement that do not meet the 
     definition of restructuring charges. These costs are directed at 
     simplifying, standardizing, streamlining, and optimizing the Company's 
     operations, processes and systems to permanently alter the Company's 
     operations for the long term. For a project to be considered 
     transformational, successful completion of the project must be expected 
     to bring long-term material benefits to the organization and involve 
     significant changes to process and/or underlying technology. 
     Transformation costs primarily relate to one time asset write downs 
     associated with changes in technology, one time inventory write downs 
     relating to restructuring actions, and third-party consulting costs 
     associated with process and systems re-design. 
(2)  Represents a non-cash goodwill impairment charge recognized in the second 
     quarter of fiscal 2026 as a result of the Company's quantitative goodwill 
     impairment analysis as of March 31, 2026, including $112.4 million for 
     the Multiomics reporting unit and $36.6 million for the Sample Management 
     Solutions reporting unit. 
(3)  Includes expenses related to governance-related matters. 
(4)  The Company recognized $3.9 million non-cash gain from the settlement of 
     the pre-existing contractual relationship with UK Biocentre Limited in 
     the second quarter of fiscal 2026. The Company received $2.1 million of 
     cash proceeds from a cost method investment which had no cost basis in 
     the second quarter of fiscal 2025. These are non-recurring and 
     non-operational gains. 
(5)  Tax adjustments for the three and six months ended March 31, 2025 are 
     primarily driven by $6.4 million of tax expenses related to a one-time 
     repatriation of historical earnings from China. 
 
 
                                 Quarter Ended                        Six Months Ended 
                  -------------------------------------------- 
Dollars in          March 31,    December 31,     March 31,       March 31,      March 31, 
thousands              2026           2025          2025(*)          2026          2025(*) 
                  -------------  -------------  --------------  -------------  -------------- 
GAAP net loss     $   (160,798)  $    (15,432)  $     (47,661)  $   (176,230)  $     (58,653) 
 Less: Loss from 
  discontinued 
  operations            (3,777)       (10,242)        (27,871)       (14,019)        (31,790) 
                  -------------  -------------  --------------  -------------  -------------- 
GAAP net loss 
 from continuing 
 operations           (157,021)        (5,190)        (19,790)      (162,211)        (26,863) 
Adjustments: 
---------------- 
 Interest 
  income, net           (4,387)        (5,098)         (4,489)        (9,485)         (8,787) 
 Income tax 
  expense                 (323)          3,130           7,243          2,807          11,117 
 Depreciation             8,338          8,207           7,818         16,545          15,297 
 Amortization of 
  completed 
  technology              2,076          1,860           2,308          3,935           3,808 
 Amortization of 
  other 
  intangible 
  assets                  3,563          3,551           3,803          7,113           8,376 
                  -------------  -------------  --------------  -------------  -------------- 
Earnings before 
 interest, 
 taxes, 
 depreciation 
 and 
 amortization - 
 Continuing 
 operations       $   (147,754)  $       6,460    $    (3,107)  $   (141,296)      $    2,948 
                  =============  =============  ==============  =============  ============== 
 
 
                                 Quarter Ended                        Six Months Ended 
                                                                ----------------------------- 
Dollars in          March 31,    December 31,     March 31,       March 31,      March 31, 
thousands              2026           2025          2025(*)          2026          2025(*) 
                  -------------  -------------  --------------  -------------  -------------- 
Earnings before 
 interest, 
 taxes, 
 depreciation 
 and 
 amortization - 
 Continuing 
 operations       $   (147,754)  $       6,460    $    (3,107)  $   (141,296)      $    2,948 
Adjustments: 
---------------- 
 Stock-based 
  compensation            6,268          3,862           8,031         10,130          12,904 
 Restructuring 
  charges                 1,422          1,143           3,580          2,565           4,011 
 Impairment of 
  goodwill and 
  intangible 
  assets(1)             149,083             13              --        149,083              -- 
 Merger and 
  acquisition 
  costs(2)                2,175          1,202             688          2,188           2,258 
 Transformation 
  costs(3)                  440             12           5,183          1,642           8,229 
 Non-recurring 
  other 
  income(4)             (3,858)             --         (2,130)        (3,858)         (2,130) 
Adjusted 
 earnings before 
 interest, 
 taxes, 
 depreciation 
 and 
 amortization - 
 Continuing 
 operations          $    7,776     $   12,692   $      12,245  $      20,454   $      28,220 
                  =============  =============  ==============  =============  ============== 
 
 
 
(*)  See footnote (1) on Page 1. 
(1)  Represents a non-cash goodwill impairment charge recognized in the second 
     quarter of fiscal 2026 as a result of the Company's quantitative goodwill 
     impairment analysis as of March 31, 2026, including $112.4 million for 
     the Multiomics reporting unit and $36.6 million for the Sample Management 
     Solutions reporting unit. 
(2)  Includes expenses related to governance-related matters. 
(3)  Transformation costs represent non-recurring expenses for strategic 
     projects with anticipated long-term benefits to the Company focused on 
     cost reduction and productivity improvement that do not meet the 
     definition of restructuring charges. These costs are directed at 
     simplifying, standardizing, streamlining, and optimizing the Company's 
     operations, processes and systems to permanently alter the Company's 
     operations for the long term. For a project to be considered 
     transformational, successful completion of the project must be expected 
     to bring long-term material benefits to the organization and involve 
     significant changes to process and/or underlying technology. 
     Transformation costs primarily relate to one time asset write downs 
     associated with changes in technology, one time inventory write downs 
     relating to restructuring actions, and third-party consulting costs 
     associated with process and systems re-design. 
(4)  The Company recognized $3.9 million non-cash gain from the settlement of 
     the pre-existing contractual relationship with UK Biocentre Limited in 
     the second quarter of fiscal 2026. The Company received $2.1 million of 
     cash proceeds from a cost method investment which had no cost basis in 
     the second quarter of fiscal 2025. These are non-recurring and 
     non-operational gains. 
 
 
                                       Quarter Ended 
                ----------------------------------------------------------- 
Dollars in 
thousands         March 31, 2026    December 31, 2025    March 31, 2025(*) 
                ------------------  ------------------  ------------------- 
GAAP gross 
 profit         $   62,035  42.8 %  $   63,706  42.9 %  $   62,783   43.8 % 
Adjustments: 
-------------- 
 Amortization 
  of completed 
  technology         2,076   1.4 %       1,860   1.3 %       2,308    1.6 % 
 Other 
  Adjustments           --    -- %          --    -- %         (9)  (0.0 %) 
                ----------  ------  ----------  ------  ----------  ------- 
Non-GAAP 
 adjusted 
 gross profit   $   64,111  44.3 %  $   65,566  44.1 %  $   65,082   45.4 % 
                ==========  ======  ==========  ======  ==========  ======= 
 
 
                                    Six Months Ended 
                  ---------------------------------------------------- 
Dollars in 
thousands              March 31, 2026            March 31, 2025(*) 
                  -------------------------  ------------------------- 
GAAP gross 
 profit           $         125,741  42.9 %  $         131,602  45.3 % 
Adjustments: 
---------------- 
 Amortization of 
  completed 
  technology                  3,935   1.3 %              3,808   1.3 % 
 Transformation 
  costs(1)                       --    -- %                 52   0.0 % 
                  -----------------  ------  -----------------  ------ 
Non-GAAP 
 adjusted gross 
 profit           $         129,676  44.2 %  $         135,462  46.6 % 
                  =================  ======  =================  ====== 
 
 
 
(*)  See footnote (1) on Page 1. 
(1)  Transformation costs represent non-recurring expenses for strategic 
     projects with anticipated long-term benefits to the Company focused on 
     cost reduction and productivity improvement that do not meet the 
     definition of restructuring charges. These costs are directed at 
     simplifying, standardizing, streamlining, and optimizing the Company's 
     operations, processes and systems to permanently alter the Company's 
     operations for the long term. For a project to be considered 
     transformational, successful completion of the project must be expected 
     to bring long-term material benefits to the organization and involve 
     significant changes to process and/or underlying technology. 
     Transformation costs primarily relate to one time asset write downs 
     associated with changes in technology, one time inventory write downs 
     relating to restructuring actions, and third-party consulting costs 
     associated with process and systems re-design. 
 
 
                             Sample Management Solutions                                    Multiomics 
                -----------------------------------------------------  ---------------------------------------------------- 
                                    Quarter Ended                                         Quarter Ended 
                -----------------------------------------------------  ---------------------------------------------------- 
Dollars in         March 31,        December 31,        March 31,         March 31,        December 31,       March 31, 
thousands             2026              2025             2025(*)             2026              2025             2025(*) 
                ----------------  ----------------  -----------------  ----------------  ----------------  ---------------- 
GAAP gross 
 profit         $ 37,084  45.7 %  $ 35,785  43.9 %  $ 36,147   45.3 %  $ 24,951  39.2 %  $ 27,921  41.5 %  $ 26,636  41.9 % 
Adjustments: 
-------------- 
 Amortization 
  of completed 
  technology       1,389   1.7 %     1,177   1.4 %     1,449    1.8 %       687   1.1 %       683   1.0 %       859   1.4 % 
 Other 
  Adjustments         --    -- %        --    -- %       (9)  (0.0 %)        --    -- %        --    -- %        --    -- % 
                --------  ------  --------  ------  --------  -------  --------  ------  --------  ------  --------  ------ 
Non-GAAP 
 adjusted 
 gross profit   $ 38,473  47.4 %  $ 36,962  45.4 %  $ 37,587   47.1 %  $ 25,638  40.2 %  $ 28,604  42.6 %  $ 27,495  43.3 % 
                ========  ======  ========  ======  ========  =======  ========  ======  ========  ======  ========  ====== 
 
 
                                              Segment Total 
                -------------------------------------------------------------------------- 
                                              Quarter Ended 
                -------------------------------------------------------------------------- 
Dollars in             March 31,              December 31,               March 31, 
thousands                 2026                     2025                    2025(*) 
                -----------------------  -----------------------  ------------------------ 
GAAP gross 
 profit         $        62,035  42.8 %  $        63,706  42.9 %  $        62,783   43.8 % 
Adjustments: 
-------------- 
 Amortization 
  of completed 
  technology              2,076   1.4 %            1,860   1.3 %            2,308    1.6 % 
 Other 
  Adjustments                --    -- %               --    -- %              (9)  (0.0 %) 
                ---------------  ------  ---------------  ------  ---------------  ------- 
Non-GAAP 
 adjusted 
 gross profit   $        64,111  44.3 %  $        65,566  44.1 %  $        65,082   45.4 % 
                ===============  ======  ===============  ======  ===============  ======= 
 
 
                        Sample Management Solutions                        Multiomics 
                  ----------------------------------------  ---------------------------------------- 
                              Six Months Ended                          Six Months Ended 
Dollars in 
thousands           March 31, 2026      March 31, 2025(*)     March 31, 2026      March 31, 2025(*) 
                  -------------------  -------------------  -------------------  ------------------- 
GAAP gross 
 profit           $    72,867  44.8 %  $    75,290  46.8 %  $    52,874  40.4 %  $    56,312  43.4 % 
Adjustments: 
 Amortization of 
  completed 
  technology            2,565   1.6 %        2,088   1.3 %        1,370   1.0 %        1,720   1.3 % 
 Transformation 
  costs(1)                 --    -- %           52   0.0 %           --    -- %           --    -- % 
                  -----------  ------  -----------  ------  -----------  ------  -----------  ------ 
Non-GAAP 
 adjusted gross 
 profit           $    75,432  46.4 %  $    77,430  48.1 %  $    54,244  41.4 %  $    58,032  44.7 % 
                  ===========  ======  ===========  ======  ===========  ======  ===========  ====== 
 
 
                                     Segment Total 
                  ---------------------------------------------------- 
                                    Six Months Ended 
                  ---------------------------------------------------- 
Dollars in 
thousands              March 31, 2026            March 31, 2025(*) 
                  -------------------------  ------------------------- 
GAAP gross 
 profit           $         125,741  42.9 %  $         131,602  45.3 % 
Adjustments: 
 Amortization of 
  completed 
  technology                  3,935   1.3 %              3,808   1.3 % 
 Transformation 
  costs(1)                       --    -- %                 52   0.0 % 
                  -----------------  ------  -----------------  ------ 
Non-GAAP 
 adjusted gross 
 profit           $         129,676  44.2 %  $         135,462  46.6 % 
                  =================  ======  =================  ====== 
 
 
 
(*)  See footnote (1) on Page 1. 
(1)  Transformation costs represent non-recurring expenses for strategic 
     projects with anticipated long-term benefits to the Company focused on 
     cost reduction and productivity improvement that do not meet the 
     definition of restructuring charges. These costs are directed at 
     simplifying, standardizing, streamlining, and optimizing the Company's 
     operations, processes and systems to permanently alter the Company's 
     operations for the long term. For a project to be considered 
     transformational, successful completion of the project must be expected 
     to bring long-term material benefits to the organization and involve 
     significant changes to process and/or underlying technology. 
     Transformation costs primarily relate to one time asset write downs 
     associated with changes in technology, one time inventory write downs 
     relating to restructuring actions, and third-party consulting costs 
     associated with process and systems re-design. 
 
 
                       Sample Management Solutions                    Multiomics 
                  -------------------------------------  ------------------------------------- 
                              Quarter Ended                          Quarter Ended 
Dollars in         March 31,    December     March 31,    March 31,    December     March 31, 
thousands             2026      31, 2025      2025(*)        2026      31, 2025      2025(*) 
                  -----------  -----------  -----------  -----------  -----------  ----------- 
GAAP operating 
 income (loss)    $     1,668  $     3,731  $   (1,236)  $  (10,759)  $   (5,044)  $   (6,372) 
Adjustments: 
---------------- 
 Amortization of 
  completed 
  technology            1,389        1,177        1,449          687          683          859 
 Transformation 
  costs(1)                 55           57        2,606           --           --           -- 
 Other 
  adjustments               3           12         (10)            5           --         (23) 
                  -----------  -----------  -----------  -----------  -----------  ----------- 
Non-GAAP 
 adjusted 
 operating 
 income (loss)    $     3,115  $     4,977  $     2,809  $  (10,067)  $   (4,361)  $   (5,536) 
                  ===========  ===========  ===========  ===========  ===========  =========== 
 
 
                            Total Segments                           Corporate                               Total 
                  -----------------------------------  -------------------------------------  ----------------------------------- 
                             Quarter Ended                         Quarter Ended                         Quarter Ended 
                  -----------------------------------  -------------------------------------  ----------------------------------- 
                     March      December      March       March      December       March        March     December      March 
Dollars in            31,          31,         31,         31,          31,          31,          31,         31,         31, 
thousands             2026         2025      2025(*)       2026         2025       2025(*)        2026        2025      2025(*) 
                  -----------  -----------  ---------  -----------  -----------  -----------  -----------  ---------  ----------- 
GAAP operating 
 loss             $   (9,091)  $   (1,313)  $ (7,608)  $ (156,699)  $   (5,924)  $  (10,586)  $ (165,790)  $ (7,237)  $  (18,194) 
Adjustments: 
---------------- 
 Amortization of 
  completed 
  technology            2,076        1,860      2,308           --           --           --        2,076      1,860        2,308 
 Amortization of 
  other 
  intangible 
  assets                   --           --         --        3,563        3,551        3,803        3,563      3,551        3,803 
 Transformation 
  costs(1)                 55           57      2,606          385        1,145        2,577          440      1,202        5,183 
 Restructuring 
  charges                  --           --         --        1,422        1,143        3,580        1,422      1,143        3,580 
 Impairment of 
  goodwill and 
  intangible 
  assets(2)                --           --         --      149,083           --           --      149,083         --           -- 
 Merger and 
  acquisition 
  costs(3)                 --           --         --        2,175           13          688        2,175         13          688 
 Other 
  adjustments               8           12       (33)           --           --           --            8         12         (33) 
                  -----------  -----------  ---------  -----------  -----------  -----------  -----------  ---------  ----------- 
Non-GAAP 
 adjusted 
 operating 
 income (loss)    $   (6,952)     $    616  $ (2,727)  $      (71)    $    (72)     $     62  $   (7,023)    $   544   $  (2,665) 
                  ===========  ===========  =========  ===========  ===========  ===========  ===========  =========  =========== 
 
 
                       Sample Management Solutions                      Multiomics 
                  --------------------------------------  -------------------------------------- 
                             Six Months Ended                        Six Months Ended 
Dollars in            March 31,           March 31,           March 31,           March 31, 
thousands                2026               2025(*)              2026               2025(*) 
                  ------------------  ------------------  ------------------  ------------------ 
GAAP operating 
 income (loss)    $            5,398  $            2,786  $         (15,802)  $          (9,566) 
Adjustments: 
 Amortization of 
  completed 
  technology                   2,565               2,088               1,370               1,720 
 Transformation 
  costs(1)                       112               2,709                  --                  -- 
 Other 
  adjustments                     17                 (3)                   5                   3 
                  ------------------  ------------------  ------------------  ------------------ 
Non-GAAP 
 adjusted 
 operating 
 income (loss)    $            8,092  $            7,580  $         (14,427)  $          (7,843) 
                  ==================  ==================  ==================  ================== 
 
 
                       Total Segments              Corporate                   Total 
                  ------------------------  ------------------------  ------------------------ 
                      Six Months Ended          Six Months Ended          Six Months Ended 
Dollars in         March 31,    March 31,    March 31,    March 31,    March 31,    March 31, 
thousands             2026       2025(*)        2026       2025(*)        2026       2025(*) 
                  -----------  -----------  -----------  -----------  -----------  ----------- 
GAAP operating 
 loss             $  (10,404)  $   (6,780)  $ (162,623)  $  (20,115)  $ (173,027)  $  (26,895) 
Adjustments: 
 Amortization of 
  completed 
  technology            3,935        3,808           --           --        3,935        3,808 
 Amortization of 
  other 
  intangible 
  assets                   --           --        7,113        8,376        7,113        8,376 
 Transformation 
  costs(1)                112        2,709        1,530        5,520        1,642        8,229 
 Restructuring 
  charges                  --           --        2,565        4,011        2,565        4,011 
 Impairment of 
  goodwill and 
  intangible 
  assets(2)                --           --      149,083           --      149,083           -- 
 Merger and 
  acquisition 
  costs(3)                 --           --        2,188        2,258        2,188        2,258 
 Other 
  adjustments              22           --           --           --           22           -- 
                  -----------  -----------  -----------  -----------  -----------  ----------- 
Non-GAAP 
 adjusted 
 operating 
 income (loss)     $  (6,335)   $    (263)   $    (144)     $     50  $   (6,479)   $    (213) 
                  ===========  ===========  ===========  ===========  ===========  =========== 
 
 
 
(*)  See footnote (1) on Page 1. 
(1)  Transformation costs represent non-recurring expenses for strategic 
     projects with anticipated long-term benefits to the Company focused on 
     cost reduction and productivity improvement that do not meet the 
     definition of restructuring charges. These costs are directed at 
     simplifying, standardizing, streamlining, and optimizing the Company's 
     operations, processes and systems to permanently alter the Company's 
     operations for the long term. For a project to be considered 
     transformational, successful completion of the project must be expected 
     to bring long-term material benefits to the organization and involve 
     significant changes to process and/or underlying technology. 
     Transformation costs primarily relate to one time asset write downs 
     associated with changes in technology, one time inventory write downs 
     relating to restructuring actions, and third-party consulting costs 
     associated with process and systems re-design. 
(2)  Represents non-cash goodwill impairment charges recognized in the second 
     quarter of fiscal 2026 as a result of the Company's annual and interim 
     impairment assessment, including $112.4 million for the Multiomics 
     reporting unit and $36.6 million for the Sample Management Solutions 
     reporting unit. 
(3)  Includes expenses related to governance-related matters. 
 
 
                Sample Management Solutions            Multiomics                   Azenta Total 
                ----------------------------  ----------------------------  ---------------------------- 
                       Quarter Ended                 Quarter Ended                 Quarter Ended 
                ----------------------------  ----------------------------  ---------------------------- 
Dollars in      March 31,  March 31,          March 31,  March 31,          March 31,  March 31, 
millions           2026       2025    Change     2026       2025    Change     2026       2025    Change 
                ---------  ---------  ------  ---------  ---------  ------  ---------  ---------  ------ 
Revenue         $      81  $      80     2 %  $      64  $      64     0 %  $     145  $     143     1 % 
 Acquisitions         (1)         --   (2) %         --         --    -- %        (1)         --   (1) % 
 Currency 
  exchange 
  rates               (2)         --   (3) %        (2)         --   (3) %        (4)         --   (3) % 
                ---------  ---------  ------  ---------  ---------  ------  ---------  ---------  ------ 
 Organic 
  revenue       $      78  $      80   (3) %  $      62  $      64   (2) %  $     140  $     143   (3) % 
                =========  =========  ======  =========  =========  ======  =========  =========  ====== 
 
 
                Sample Management Solutions            Multiomics                   Azenta Total 
                ----------------------------  ----------------------------  ---------------------------- 
                      Six Months Ended              Six Months Ended              Six Months Ended 
                ----------------------------  ----------------------------  ---------------------------- 
Dollars in      March 31,  March 31,          March 31,  March 31,          March 31,  March 31, 
millions           2026       2025    Change     2026       2025    Change     2026       2025    Change 
                ---------  ---------  ------  ---------  ---------  ------  ---------  ---------  ------ 
Revenue         $     163  $     161     1 %  $     131  $     130     1 %  $     293  $     291     1 % 
 Acquisitions         (1)         --   (1) %         --         --    -- %        (1)         --   (0 %) 
 Currency 
  exchange 
  rates               (4)         --   (3) %        (3)         --   (2) %        (7)         --   (2) % 
                ---------  ---------  ------  ---------  ---------  ------  ---------  ---------  ------ 
Organic 
 revenue        $     157  $     161   (2) %  $     128  $     130   (1) %  $     285  $     291   (2) % 
                =========  =========  ======  =========  =========  ======  =========  =========  ====== 
 

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