-- 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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SOURCE Azenta
(END) Dow Jones Newswires
May 05, 2026 16:30 ET (20:30 GMT)