BURLINGTON, Mass., Feb. 4, 2026 /PRNewswire/ -- Azenta, Inc. (Nasdaq: AZTA) today reported financial results for the first quarter ended December 31, 2025.
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, which is expected to close
on or before March 31, 2026.
Quarter Ended
-------------------------------------------------------------------
Dollars in
millions,
except per December September December
share data 31, 30, 31, Change
Prior Prior
2025 2025 2024 (1) Qtr Yr.
---------- ----------- ---------- ----- -------
Revenue from
Continuing
Operations $ 149 $ 159 $ 147 (7)% 1%
Organic
growth (1)%
Sample
Management
Solutions $ 81 $ 86 $ 81 (5)% 0%
Multiomics $ 67 $ 73 $ 66 (8)% 1%
Diluted EPS
Continuing
Operations $ (0.11) $ 1.12 $ (0.16) NM 27%
Diluted EPS
Total $ (0.34) $ 1.11 $ (0.25) NM (34)%
Non-GAAP
Diluted EPS
Continuing
Operations $ 0.09 $ 0.21 $ 0.12 (57)% (24)%
Adjusted
EBITDA -
Continuing
Operations $ 13 $ 21 $ 16 (39)% (21)%
Adjusted
EBITDA
Margin -
Continuing
Operations 8.5% 13.0% 10.8%
(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
"We delivered revenue performance consistent with our expectations. We also generated strong free cash flow in the quarter, reflecting our continued focus on operational discipline and working capital management, " said John Marotta, President and CEO. "Further, we saw challenges on the gross margin line, and our turnaround continues, and in any turnaround, it is never a straight line. We remain committed to our fiscal 2026 objectives and our expectation for a stronger second half of the year, supported by our ongoing execution initiatives. We are equally confident in our long-range plan outlined at Investor Day, which extends through 2028 and supports sustainable growth and long-term value creation."
First Quarter Fiscal 2026 Results - Continuing Operations
-- Revenue was $149 million, up 1% year over year. Organic revenue, which
excludes the impact from foreign exchange, declined 1% year over year,
reflecting flat revenue in Multiomics and lower revenue in Sample
Management Solutions.
-- Sample Management Solutions revenue was $81 million, flat year over year.
-- Organic revenue which excludes the impact from foreign exchange,
declined 2%, mainly driven by lower revenues in Core Products,
particularly in Automated Stores and Cryogenic Systems, partially
offset by higher revenue in Sample Storage, Product Services and
Consumables and Instruments.
-- Multiomics revenue was $67 million, up 1% year over year.
-- Organic revenue, which excludes the impact from foreign exchange,
was flat year over year, primarily driven by growth in Next
Generation Sequencing and Gene Synthesis, largely offset by a
year-over-year decline in Sanger Sequencing.
Summary of GAAP Earnings Results - Continuing Operations
-- Operating loss was $7.2 million. Operating margin was (4.9%), up 100
basis points year over year.
-- Gross margin was 42.9%, down 380 basis points year over year,
mainly driven by lost cost leverage from lower sales volumes in
certain areas of the portfolio and costs related to rework on
several Automated Stores projects.
-- Operating expenses were $71 million, down 8% year over year, due
to lower selling, general and administrative expenses, partially
offset by higher research and development costs and restructuring
charges.
-- Other income included $5 million of net interest income versus $4 million
in the prior year period.
-- Diluted EPS from continuing operations was ($0.11) compared to ($0.16) in
the first quarter of fiscal year 2025. Diluted EPS from discontinued
operations was ($0.22). Total diluted EPS was ($0.34), compared to
($0.25) a year ago.
Summary of Non-GAAP Earnings Results - Continuing Operations
-- Adjusted operating income was $0.5 million. Adjusted operating margin was
0.4%, a decline of 130 basis points year over year.
-- Adjusted gross margin was 44.1%, down 360 basis points compared to
the first quarter of fiscal 2025, mainly driven by lost cost
leverage from lower sales volumes in certain areas of the
portfolio and costs related to rework on several Automated Stores
projects.
-- Adjusted operating expense in the quarter was $65 million, down
4% year over year, driven by lower selling, general and
administrative expenses partially offset by higher research and
development costs.
-- Adjusted EBITDA was $13 million, and Adjusted EBITDA margin was 8.5%, a
decrease of 230 basis points year over year.
-- Non-GAAP Diluted EPS was $0.09, compared to $0.12 one year ago.
Cash and Liquidity as of December 31, 2025
-- The Company ended the quarter with a total balance of cash, cash
equivalents, restricted cash and marketable securities of $571 million.
-- Operating cash flow was $21 million in the quarter. Capital expenditures
were $6 million, and free cash flow (cash flow from operations less
capital expenditures) was $15 million.
Share Repurchase Program Update
-- On December 8, 2025, the Board of Directors approved a new share
repurchase program authorizing the repurchase of up to $250 million of
the Company's common stock through December 31, 2028 (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 ASR agreement), or by other means, including through
the use of trading plans intended to qualify under Rule 10b5-1 under the
Securities Exchange Act of 1934, as amended, subject to market and
business conditions, legal requirements, and other factors. The Company
is 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 the Company's discretion. As of the date of this
press release, the Company has not repurchased any shares of its common
stock under the 2025 Repurchase Program.
Guidance for Continuing Operations for Full Year Fiscal 2026
-- The Company is reiterating its guidance for fiscal year 2026:
-- Total organic revenue is expected to grow in the range of 3% to 5%
relative to fiscal 2025.
-- Adjusted EBITDA margin expansion is expected to be approximately
300 basis points relative to fiscal 2025.
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. The transaction is
expected to close on or before March 31, 2026.
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 first quarter fiscal 2026 earnings conference call today 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 referenced on the call, will be hosted at the Investor Relations section of Azenta's website at https://investors.azenta.com/events and will be archived online on this website for convenient on-demand replay.
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 financial and business results to differ materially from our expectations. They are based on the facts known to management at the time they are made. Forward-looking statements include but are not limited to statements about the Company's guidance for fiscal year 2026 including its revenue and earnings expectations, the expected timing of the closing of the B Medical Systems business disposition, and the manner in which repurchases under the Company's 2025 Share Repurchase Program may be made. Factors that could cause results to differ from our expectations include the following: uncertainties in global political and economic conditions, including the imposition of additional tariffs on goods imported into the US; our ability to reduce costs effectively; the volatility of the life sciences markets the Company serves; our possible inability to meet demand for our products due to difficulties in obtaining components and materials from our suppliers in required quantities and of required quality; the inability of customers to make payments to us when due; competition; and other factors and other risks, including those that we have described in our filings with the Securities and Exchange Commission, including but not limited to our Annual Report on Form 10-K, Current Reports on Form 8-K and our Quarterly Reports on Form 10-Q. As a result, we can provide no assurance that our future results will not be materially different from those projected. Azenta expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in our expectations or any change in events, conditions, or circumstance on which any such statement is based. Azenta undertakes no obligation to update the information contained in this press release.
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
December 31,
--------------------
2025 2024
--------- ---------
Revenue
Products $ 41,084 $ 43,827
Services 107,558 103,609
-------- --------
Total revenue 148,642 147,436
-------- --------
Cost of revenue
Products 24,749 24,041
Services 60,187 54,576
-------- --------
Total cost of revenue 84,936 78,617
-------- --------
Gross profit 63,706 68,819
-------- --------
Operating expenses
Research and development 9,189 7,113
Selling, general and administrative 60,611 69,976
Restructuring charges 1,143 431
-------- --------
Total operating expenses 70,943 77,520
-------- --------
Operating loss (7,237) (8,701)
Other income
Interest income, net 5,098 4,298
Other income, net 79 1,204
-------- --------
Loss from continuing operations before
income taxes (2,060) (3,199)
Income tax expense 3,130 3,874
-------- --------
Loss from continuing operations (5,190) (7,073)
Loss from discontinued operations, net of
tax (10,242) (3,919)
-------- --------
Net loss $(15,432) $(10,992)
======== ========
Basic net loss per share:
Loss from continuing operations $ (0.11) $ (0.16)
Loss from discontinued operations, net of
tax $ (0.22) $ (0.09)
-------- --------
Basic net loss per share $ (0.34) $ (0.25)
======== ========
Diluted net loss per share:
Loss from continuing operations $ (0.11) $ (0.16)
Loss from discontinued operations, net of
tax $ (0.22) $ (0.09)
-------- --------
Diluted net loss per share $ (0.34) $ (0.25)
======== ========
Weighted average shares used in computing
net loss per share:
Basic 45,929 45,626
Diluted 45,929 45,626
AZENTA, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except share and per share data)
December 31, September 30,
2025 2025
-------------- ---------------
Assets
Current assets
Cash and cash equivalents $ 336,631 $ 279,783
Short-term marketable securities 73,025 61,137
Accounts receivable, net of
allowance for expected credit
losses ($4,053 and $4,649,
respectively) 142,269 142,181
Inventories 82,458 74,956
Short-term restricted cash 2,393 2,359
Refundable income taxes 7,888 9,728
Prepaid expenses and other current
assets 60,549 64,660
Current assets held for sale 74,689 73,535
---------- -----------
Total current assets 779,902 708,339
Property, plant and equipment, net 152,032 153,954
Long-term marketable securities 155,914 201,585
Long-term deferred tax assets 527 726
Operating lease right-of-use assets 57,752 54,048
Goodwill 702,559 702,395
Intangible assets, net 96,604 101,814
Long term income taxes receivable 45,600 45,600
Other assets 7,743 6,115
Noncurrent assets held for sale 75,802 85,006
---------- -----------
Total assets $ 2,074,435 $ 2,059,582
========== ===========
Liabilities and stockholders' equity
Current liabilities
Accounts payable $ 38,767 $ 37,722
Deferred revenue 32,861 31,569
Derivative liability 33,304 33,420
Accrued warranty and retrofit
costs 4,315 4,713
Accrued compensation and benefits 30,440 35,799
Accrued customer deposits 36,885 26,499
Accrued income taxes payable 11,864 9,416
Accrued expenses and other current
liabilities 44,007 30,268
Current liabilities held for sale 34,770 28,268
---------- -----------
Total current liabilities 267,213 237,674
Long-term deferred tax liabilities 15,248 18,245
Long-term operating lease
liabilities 54,462 51,244
Other long-term liabilities 11,475 11,142
Noncurrent liabilities held for sale 11,205 14,291
---------- -----------
Total liabilities 359,603 332,596
---------- -----------
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,
59,479,828 shares issued and
46,017,959 shares outstanding at
December 31, 2025; 59,320,848
shares issued and 45,858,979 shares
outstanding at September 30, 2025 595 594
Additional paid-in capital 531,245 529,605
Accumulated other comprehensive loss (20,576) (22,213)
Treasury stock, at cost - 13,461,869
shares at December 31, 2025 and
September 30, 2025 (200,956) (200,956)
Retained earnings 1,404,524 1,419,956
---------- -----------
Total stockholders' equity 1,714,832 1,726,986
---------- -----------
Total liabilities and
stockholders' equity $ 2,074,435 $ 2,059,582
========== ===========
AZENTA, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
Three Months Ended December 31,
-------------------------------------
2025 2024
-------------------- ---------------
Cash flows from operating
activities
Net loss $ (15,432) $ (10,992)
Adjustments to reconcile net
loss to net cash provided by
operating activities:
Depreciation and
amortization 13,648 18,100
Loss on assets held for
sale 9,696 --
Inventory write-downs and
other asset write-offs (305) 1,470
Stock-based compensation 4,058 5,112
Amortization and accretion
on marketable securities (374) (541)
Deferred income taxes (5,788) 657
Loss on disposals of
property, plant and
equipment (42) (8)
Changes in operating assets
and liabilities:
Accounts receivable 723 4,850
Inventories (9,729) (7,622)
Accounts payable 4,572 (2,602)
Deferred revenue 3,195 10,462
Accrued warranty and
retrofit costs (248) 173
Accrued compensation and
tax withholdings (5,158) (637)
Accrued restructuring
costs 249 (566)
Other assets and
liabilities 21,782 11,942
--- --------------- -----------
Net cash provided by
operating activities 20,847 29,798
--- --------------- -----------
Cash flows from investing
activities
Purchases of property, plant
and equipment (6,192) (7,750)
Purchases of marketable
securities (108,692) (40,754)
Sales and maturities of
marketable securities 142,656 125,590
Deposit received for the sale
of B Medical Systems
business 9,000 --
--- --------------- -----------
Net cash provided by
investing activities 36,772 77,086
--- --------------- -----------
Cash flows from financing
activities
Payments of finance leases (214) (215)
Withholding tax payments on
net share settlements on
equity awards (2,418) --
Excise tax payment for settled
share repurchases -- (4,911)
--- --------------- -----------
Net cash used in
financing activities (2,632) (5,126)
--- --------------- -----------
Effects of exchange rate
changes on cash, cash
equivalents and restricted
cash 314 (8,311)
--- --------------- -----------
Net increase in cash, cash
equivalents and restricted
cash 55,301 93,447
Cash, cash equivalents and
restricted cash, beginning of
period 296,685 320,990
--- --------------- -----------
Cash, cash equivalents and
restricted cash, end of
period $ 351,986 $ 414,437
=== =============== ===========
Supplemental disclosures:
Cash paid / (received) for
income taxes, net 2,098 (6,148)
Purchases of property, plant
and equipment included in
accounts payable and accrued
expenses 5,703 3,249
Reconciliation of cash, cash
equivalents and restricted
cash to the condensed
consolidated balance sheets
December 31, September 30,
2025 2025
-------------------- ---------------
Cash and cash equivalents of
continuing operations $ 336,631 $ 279,783
Cash included in current
assets held for sale 10,000 13,206
Short-term restricted cash 2,393 2,359
Long-term restricted cash
included in other assets 2,962 1,337
--- --------------- -----------
Total cash, cash equivalents
and restricted cash shown
in the condensed
consolidated statements of
cash flows $ 351,986 $ 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
-----------------------------------------------------------------------------
December 31, 2025 September 30, 2025 December 31, 2024 (*)
----------------------- ------------------------- -----------------------
per per per
diluted diluted diluted
Amounts in
thousands,
except per share
data $ share $ share $ share
-------- --------- --------- ---------- -------- ---------
Net income (loss)
from continuing
operations $(5,190) $ (0.11) $ 51,653 $ 1.12 $(7,073) $ (0.16)
Adjustments:
----------------
Amortization of
completed
technology 1,860 0.04 2,088 0.05 1,500 0.03
Amortization of
other
intangible
assets 3,551 0.08 3,977 0.09 4,573 0.10
Transformation
costs(1) 1,202 0.03 634 0.01 3,046 0.07
Restructuring
charges 1,143 0.02 406 0.01 431 0.01
Merger and
acquisition
costs and costs
related to
share
repurchase(2) 13 0.00 87 0.00 1,570 0.03
Tax
adjustments(3) -- -- (46,960) (1.02) 400 0.01
Tax effect of
adjustments 1,570 0.03 (2,246) (0.05) 1,007 0.02
Other
adjustments 13 0.00 -- -- -- --
------- -------- -------- --------- ------- --------
Non-GAAP adjusted
net income from
continuing
operations $ 4,162 $ 0.09 $ 9,639 $ 0.21 $ 5,454 $ 0.12
------- -------- -------- --------- ------- --------
Stock-based
compensation,
pre-tax 3,862 0.08 3,901 0.08 4,872 0.11
Tax rate 13% -- 17% -- 15% --
Stock-based
compensation,
net of tax 3,360 0.07 3,238 0.07 4,141 0.09
------- -------- -------- --------- ------- --------
Non-GAAP adjusted
net income
excluding
stock-based
compensation -
continuing
operations $ 7,522 $ 0.16 $ 12,877 $ 0.28 $ 9,595 $ 0.21
======= ======== ======== ========= ======= ========
Shares used in
computing non-
GAAP diluted
net income per
share -- 45,929 -- 45,994 -- 45,626
(*) 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) Includes expenses related to governance-related matters.
(3) Tax adjustments during all periods include adjustments to tax benefits
related to stock compensation. These adjustments are recognized in the
period of vesting for US GAAP but included in the annual effective tax
rate for Non-GAAP reporting. Tax adjustments for the three and six months
ended March 31, 2025 include $6.6 million of tax expenses related to a
one-time repatriation of historical earnings from China.
Quarter Ended
-----------------------------------------------
December 31, September 30, December 31,
Dollars in
thousands 2025 2025 2024 (*)
-------------- --------------- --------------
GAAP net income
(loss) $ (15,432) $ 50,877 $ (10,992)
Less: Loss from
discontinued
operations (10,242) (776) (3,919)
---------- ----------- ----------
GAAP net income
(loss) from
continuing
operations (5,190) 51,653 (7,073)
Adjustments:
----------------
Interest income,
net (5,098) (5,019) (4,298)
Income tax
expense 3,130 (45,353) 3,874
Depreciation 8,207 8,338 7,478
Amortization of
completed
technology 1,860 2,088 1,500
Amortization of
other
intangible
assets 3,551 3,977 4,573
---------- ----------- ----------
Earnings before
interest, taxes,
depreciation and
amortization -
Continuing
operations $ 6,460 $ 15,684 $ 6,054
========== =========== ==========
Quarter Ended
-----------------------------------------------
December 31, September 30, December 31,
Dollars in
thousands 2025 2025 2024 (*)
-------------- --------------- --------------
Earnings before
interest, taxes,
depreciation and
amortization -
Continuing
operations $ 6,460 $ 15,684 $ 6,054
Adjustments:
----------------
Stock-based
compensation 3,862 3,901 4,872
Restructuring
charges 1,143 406 431
Merger and
acquisition
costs and costs
related to
share
repurchase(1) 13 87 1,570
Transformation
costs(2) 1,202 634 3,046
Other
adjustments 12 -- --
---------- ----------- ----------
Adjusted earnings
before interest,
taxes,
depreciation and
amortization -
Continuing
operations $ 12,692 $ 20,712 $ 15,973
========== =========== ==========
(*) See footnote (1) on Page 1.
(1) Includes expenses related to governance-related matters.
(2) 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.
Quarter Ended
----------------------------------------------------------
Dollars in December 31, September 30, December 31,
thousands 2025 2025 2024 (*)
--------------- --------------- ----------------
GAAP gross
profit $63,706 42.9% $72,274 45.4% $68,819 46.7%
Adjustments:
---------------
Amortization of
completed
technology 1,860 1.3% 2,088 1.3% 1,500 1.0%
Transformation
costs(1) -- --% -- --% 62 0.0%
------ ------ ------ ------ ------ -------
Non-GAAP
adjusted gross
profit $65,566 44.1% $74,362 46.7% $70,381 47.7%
====== ====== ====== ====== ====== =======
(*) 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
--------------------------------------------------- ---------------------------------------------------
December 31, September 30, December 31, December 31, September 30, December 31,
Dollars in
thousands 2025 2025 2024 (*) 2025 2025 2024 (*)
------------- ------------- ------------- ------------- ------------- -------------
GAAP gross profit $35,785 43.9% $41,175 47.9% $39,143 48.2% $27,921 41.5% $31,094 42.5% $29,676 44.8%
Adjustments:
----------------
Amortization of
completed
technology 1,177 1.4% 1,226 1.4% 639 0.8% 683 1.0% 862 1.2% 861 1.3%
Transformation
costs(1) -- --% -- --% 62 0.1% -- --% -- --% -- --%
------ ---- ------ ---- ------ ---- ------ ---- ------ ---- ------ ----
Non-GAAP adjusted
gross profit $36,962 45.4% $42,401 49.3% $39,844 49.1% $28,604 42.6% $31,956 43.7% $30,537 46.1%
====== ==== ====== ==== ====== ==== ====== ==== ====== ==== ====== ====
Segment Total
---------------------------------------------------
Quarter Ended
---------------------------------------------------
December 31, September 30, December 31,
Dollars in
thousands 2025 2025 2024 (*)
------------- ------------- -------------
GAAP gross profit $63,706 42.9% $72,274 45.4% $68,819 46.7%
Adjustments:
----------------
Amortization of
completed
technology 1,860 1.3% 2,088 1.3% 1,500 1.0%
Transformation
costs(1) -- --% -- --% 62 0.0%
------ ---- ------ ---- ------ ----
Non-GAAP adjusted
gross profit $65,566 44.1% $74,362 46.7% $70,381 47.7%
====== ==== ====== ==== ====== ====
(*) 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
---------------------------------- ----------------------------------
December September December December September December
31, 30, 31, 31, 30, 31,
Dollars in
thousands 2025 2025 2024 (*) 2025 2025 2024 (*)
--------- ---------- ----------- --------- ---------- -----------
GAAP operating
income (loss) $ 3,731 $ 8,015 $ 4,019 $ (5,044) $ (1,029) $ (3,195)
Adjustments:
----------------
Amortization of
completed
technology 1,177 1,226 639 683 862 861
Transformation
costs(1) 57 (57) 103 -- -- --
Restructuring
charges -- -- -- -- -- 23
Other
adjustments 12 42 9 -- 31 --
-------- --------- ---------- -------- --------- ----------
Non-GAAP adjusted
operating income
(loss) $ 4,977 $ 9,226 $ 4,770 $ (4,361) $ (136) $ (2,311)
======== ========= ========== ======== ========= ==========
Total Segments Corporate Total
--------------------------------- ------------------------------- -------------------------------
Quarter Ended Quarter Ended Quarter Ended
--------------------------------- ------------------------------- -------------------------------
December September December December September December December September December
31, 30, 31, 31, 30, 31, 31, 30, 31,
Dollars in
thousands 2025 2025 2024 (*) 2025 2025 2024 (*) 2025 2025 2024 (*)
-------- ----------- ---------- -------- ----------- -------- -------- ----------- --------
GAAP operating
income (loss) $(1,313) $ 6,986 $ 824 $(5,924) $ (5,085) $(9,525) $(7,237) $ 1,901 $(8,701)
Adjustments:
----------------
Amortization of
completed
technology 1,860 2,088 1,500 -- -- -- 1,860 2,088 1,500
Amortization of
other
intangible
assets -- -- -- 3,551 3,977 4,573 3,551 3,977 4,573
Transformation
costs(1) 57 (57) 103 1,145 691 2,943 1,202 634 3,046
Restructuring
charges -- -- 23 1,143 406 408 1,143 406 431
Merger and
acquisition
costs and costs
related to
share
repurchase(2) -- -- -- 13 87 1,570 13 87 1,570
Other
adjustments 12 73 9 -- (73) -- 12 -- 9
------- ------- ------ ------- ------- ------- ------- ------- -------
Non-GAAP adjusted
operating income
(loss) $ 616 $ 9,090 $ 2,459 $ (72) $ 3 $ (31) $ 544 $ 9,093 $ 2,428
======= ======= ====== ======= ======= ======= ======= ======= =======
(*) 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) Includes expenses related to governance-related matters.
Sample Management Solutions Multiomics Azenta Total
----------------------------- ------------------------------ ------------------------------
Quarter Ended Quarter Ended Quarter Ended
----------------------------- ------------------------------ ------------------------------
December December December December December December
31, 31, 31, 31, 31, 31,
Dollars in
millions 2025 2024 Change 2025 2024 Change 2025 2024 Change
--------- ---------- ------ ---------- ---------- ------ ---------- ---------- ------
Revenue $ 81 $ 81 0% $ 67 $ 66 1% $ 149 $ 147 1%
Currency
exchange
rates (2) -- (2)% (1) -- (1)% (3) -- (2)%
-------- ------ ------ ------ ------ ------ ------ ------ ------
Organic
revenue $ 80 $ 81 (2)% $ 66 $ 66 (0)% $ 146 $ 147 (1)%
======== ====== ====== ====== ====== ====== ====== ====== ======
View original content to download multimedia:https://www.prnewswire.com/news-releases/azenta-reports-first-quarter-results-for-fiscal-2026-ended-december-31-2025-302678391.html
SOURCE Azenta
(END) Dow Jones Newswires
February 04, 2026 06:30 ET (11:30 GMT)