Azenta Reports First Quarter Results for Fiscal 2026, Ended December 31, 2025

Rhea-AI Summary

Azenta (Nasdaq: AZTA) reported Q1 fiscal 2026 continuing operations revenue of $149 million, up 1% year-over-year, adjusted EBITDA of $13 million and non-GAAP diluted EPS of $0.09. Gross margin declined to 42.9%, down 380 basis points, while cash and marketable securities totaled $571 million.

The company entered a definitive agreement to sell B Medical Systems for $63 million and authorized a $250 million share repurchase program through 2028. Fiscal 2026 guidance: organic revenue growth of 3–5% and ~300 bps adjusted EBITDA margin expansion.

Positive

• Cash, equivalents and marketable securities of $571 million
• Board authorized $250 million share repurchase program through 2028
• Definitive sale agreement for B Medical Systems for $63 million
• Reiterated fiscal 2026 guidance: organic revenue growth 3–5%
• Guidance calls for ~300 bps adjusted EBITDA margin expansion

Negative

• Gross margin declined by 380 bps to 42.9% versus prior year
• Adjusted gross margin down 360 bps year-over-year
• Adjusted EBITDA fell to $13 million (down 39% versus prior quarter)
• Total diluted EPS was a loss of $0.34, down versus prior year
• Rework on Automated Stores projects and lost cost leverage pressured margins

Market Reaction

-5.34% $34.94

15m delay 3 alerts

-5.34% Since News

-9.4% Trough Tracked

$34.94 Last Price

$32.00 $38.83 Day Range

-$96M Valuation Impact

$1.70B Market Cap

2K Volume

Following this news, AZTA has declined 5.34%, reflecting a notable negative market reaction. Argus tracked a trough of -9.4% from its starting point during tracking. Our momentum scanner has triggered 3 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $34.94. This price movement has removed approximately $96M from the company's valuation.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.

Key Figures

Revenue (cont. ops): $149M Organic revenue growth: -1% Non-GAAP diluted EPS: $0.09 +5 more

8 metrics

Revenue (cont. ops) $149M Q1 FY2026, up 1% year over year

Organic revenue growth -1% Q1 FY2026 vs prior year

Non-GAAP diluted EPS $0.09 Q1 FY2026 from continuing operations

Adjusted EBITDA $13M (8.5% margin) Q1 FY2026 continuing operations

Cash & investments $571M Cash, equivalents, restricted cash and marketable securities as of Dec 31, 2025

Free cash flow $15M Q1 FY2026 (operating cash flow $21M minus $6M capex)

Share repurchase authorization $250M 2025 Repurchase Program through Dec 31, 2028

B Medical sale price $63M Sale of B Medical Systems to Thelema S.À R.L.

Market Reality Check

Price: $36.91 Vol: Volume 811,872 is 31% abo...

normal vol

$36.91 Last Close

Volume Volume 811,872 is 31% above the 20-day average of 621,842, indicating elevated interest into earnings. normal

Technical Price at $36.91 is trading above the 200-day MA of $31.60, despite a 1.65% decline pre‑earnings.

Peers on Argus

While AZTA is down 1.65%, key peers like BLFS (+2.19%), ATRC (+2.89%), NNNN (+11...

While AZTA is down 1.65%, key peers like BLFS (+2.19%), ATRC (+2.89%), NNNN (+11.19%) and PLSE (+1.45%) are higher, pointing to a stock‑specific reaction rather than a sector‑wide move.

Previous Earnings Reports

5 past events · Latest: 2025-08-05 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
2025-08-05	Q3 2025 earnings	Positive	-17.0%	Flat revenue but stronger margins and reiterated full‑year 2025 guidance.
2025-05-07	Q2 2025 earnings	Positive	-0.6%	5% revenue growth and margin expansion with reiterated 2025 guidance.
2025-02-05	Q1 2025 earnings	Positive	+3.4%	4% revenue growth and higher adjusted EBITDA versus prior year.
2024-08-06	Q3 2024 earnings	Neutral	-8.9%	Revenue growth with guidance lowered on sales but raised on earnings.
2024-05-08	Q2 2024 earnings	Neutral	-2.9%	7% revenue growth, improved EPS, but lowered full‑year revenue guidance.

Pattern Detected

Earnings releases have often seen negative or muted price reactions even when revenue grows or guidance is reiterated.

Recent Company History

Across recent earnings updates, Azenta reported steady revenue in the $143–$173M range, with recurring themes of organic growth, adjusted EBITDA improvement, and reiterated guidance. For example, Q3 FY2025 showed $144M revenue and higher margins, while Q1 FY2025 had $148M revenue and better adjusted EBITDA. Despite this, shares frequently traded lower post‑earnings, including a -17% move after Q3 FY2025. Today’s Q1 FY2026 release, with modest growth but margin pressure, fits that pattern of cautious market response.

Historical Comparison

earnings

-5.2 %

Average Historical Move

Historical Analysis

In the past five earnings releases, AZTA’s average next‑day move was -5.2%. Today’s -1.65% decline is milder than typical, suggesting a relatively measured reaction to Q1 FY2026 results.

Typical Pattern

Recent earnings have shown revenue holding in the mid‑$100M range with periodic margin improvement and reiterated growth targets. Over FY2024–FY2025, Azenta emphasized organic growth and adjusted EBITDA expansion; Q1 FY2026 now introduces gross margin pressure and lower non‑GAAP EPS, while still reiterating multi‑year guidance.

Market Pulse Summary

The stock is down -5.3% following this news. A negative reaction despite modest revenue growth fits ...

Analysis

The stock is down -5.3% following this news. A negative reaction despite modest revenue growth fits prior patterns, where earnings headlines have often been followed by downside moves averaging -5.2%. Q1 FY2026 shows revenue of $149M but a -1% organic decline, weaker adjusted EBITDA margin at 8.5%, and lower non‑GAAP EPS of $0.09. Investors also had to weigh gross margin pressure and restructuring‑related items, even as the company reiterated guidance and highlighted $571M in cash and a $250M buyback authorization.

Key Terms

organic revenue, adjusted EBITDA, free cash flow, share repurchase program, +4 more

8 terms

organic revenue financial

"Organic revenue, which excludes the impact from foreign exchange, declined 1% year over year"

Organic revenue is the sales a company generates from its regular business activities after stripping out extra effects like revenue added or lost from buying or selling other businesses and from currency swings. Think of it as measuring how much a store’s own customers increased spending, not growth from opening new stores or temporary price moves; investors use it to judge the true strength and sustainability of a company’s core demand.

adjusted EBITDA financial

"Adjusted EBITDA was $13 million, and Adjusted EBITDA margin was 8.5%"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

free cash flow financial

"free cash flow (cash flow from operations less capital expenditures) was $15 million"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

share repurchase program financial

"the Board of Directors approved a new share repurchase program authorizing the repurchase"

A share repurchase program is when a company buys back its own shares from the marketplace. This reduces the total number of shares available, which can increase the value of each remaining share and signal confidence in the company's prospects. For investors, it often suggests that the company believes its stock is undervalued or that it has extra cash to return to shareholders.

ASR agreement financial

"may be made in the open market or through privately negotiated transactions (including under an ASR agreement)"

An ASR agreement is a contract where a company hires an investment bank to buy back a large block of its own shares quickly, often paying the bank up front while the bank completes the purchases over a short period. Investors watch these deals because they reduce the number of shares available, which can boost earnings per share and share price like shrinking the size of a pie; they also affect company cash reserves and can signal management’s view of the stock’s value.

Rule 10b5-1 regulatory

"including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act"

Rule 10b5-1 is a regulation that allows company insiders to buy or sell their shares at predetermined times, even if they have access to non-public information. It acts like setting a schedule in advance for transactions, helping prevent accusations of unfair trading. This rule provides a way for insiders to plan trades transparently, giving investors confidence that these transactions are not based on hidden information.

non-GAAP financial measures financial

"Regulation G – Use of Non-GAAP financial Measures The Company supplements its GAAP financial measures with certain non-GAAP financial measures"

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

operating margin financial

"Operating margin was (4.9%), up 100 basis points year over year"

Operating margin shows how much profit a company makes from its core business activities after paying for costs like wages and materials. It’s useful because it tells you how efficiently a company is running—higher margins mean it keeps more money from each dollar of sales, which can indicate better management or stronger products.

AI-generated analysis. Not financial advice.

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 share data		December 31,				September 30,				December 31,				Change
		2025				2025				2024 (1)				Prior Qtr				Prior 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 diluted								per diluted								per 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 thousands		December 31, 2025								September 30, 2025								December 31, 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 31,				September 30,				December 31,				December 31,				September 30,				December 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 31,				September 30,				December 31,				December 31,				September 30,				December 31,				December 31,				September 30,				December 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 31,				December 31,								December 31,				December 31,								December 31,				December 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)	%

 

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SOURCE Azenta

FAQ

What were Azenta (AZTA) Q1 fiscal 2026 revenue and adjusted EBITDA results?

Azenta reported Q1 fiscal 2026 continuing operations revenue of $149 million and adjusted EBITDA of $13 million. According to the company, revenue rose 1% year-over-year while adjusted EBITDA and margins declined amid lower volumes and project rework.

How much cash and liquidity did Azenta (AZTA) report on December 31, 2025?

Azenta reported total cash, cash equivalents, restricted cash and marketable securities of $571 million as of December 31, 2025. According to the company, operating cash flow was $21 million and free cash flow was $15 million for the quarter.

What is the size and timeline of Azenta's (AZTA) new share repurchase program?

The Board approved a repurchase program authorizing up to $250 million of common stock through December 31, 2028. According to the company, repurchases may occur in the open market or via negotiated transactions and no shares had been repurchased as of the release date.

What did Azenta (AZTA) disclose about the sale of B Medical Systems?

Azenta entered a definitive sale agreement for B Medical Systems with a purchase price of $63 million, expected to close on or before March 31, 2026. According to the company, results of B Medical Systems are treated as discontinued operations.

What fiscal 2026 guidance did Azenta (AZTA) reiterate for revenue and margin expansion?

Azenta reiterated guidance for fiscal 2026 organic revenue growth of 3–5% and approximately 300 basis points of adjusted EBITDA margin expansion. According to the company, these targets underpin expectations for a stronger second half of fiscal 2026.