Azenta Reports Second Quarter Results for Fiscal 2026, Ended March 31, 2026, Updates Full Year Fiscal 2026 Guidance, and Extends Long-Range Plan to 2029
Rhea-AI Summary
Azenta (Nasdaq: AZTA) reported Q2 FY2026 continuing‑operations revenue of $145 million (1% YoY) and adjusted EBITDA of $7.8 million (5.4% margin). GAAP operating loss was $165.8 million, including a $149 million goodwill impairment. Fiscal 2026 revenue guidance is $603–$621 million; organic revenue now expected down ~2% to up 1% and long‑range plan extended to 2029.
Positive
- $565 million total cash, equivalents, restricted cash and marketable securities
- Q2 revenue of $145 million (1% year‑over‑year)
- Adjusted EBITDA of $7.8 million and 5.4% margin
- Board authorized $250 million share repurchase program
Negative
- Fiscal 2026 organic revenue cut to down ~2% to up 1%
- Adjusted EBITDA margin outlook revised to down ~125 bps to flat
- GAAP operating loss of $165.8 million driven by $149 million goodwill impairment
- Total diluted EPS from continuing operations ($3.41) in Q2
News Market Reaction – AZTA
In the May 6 session, AZTA declined 25.31%, reflecting a significant negative market reaction. Argus tracked a trough of -32.5% from its starting point during tracking. Our momentum scanner triggered 24 alerts that day, indicating elevated trading interest and price volatility. Trading volume was very high at 3.1x the daily average, suggesting heavy selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 04 | Q1 2026 earnings | Neutral | -22.8% | Modest growth with margin pressure and initial FY26 guidance framework. |
| Aug 05 | Q3 2025 earnings | Positive | -17.0% | Flat revenue but improved margins and EPS with reiterated FY25 guidance. |
| May 07 | Q2 2025 earnings | Positive | -0.6% | Solid revenue and adjusted EBITDA growth with FY25 guidance maintained. |
| Feb 05 | Q1 2025 earnings | Positive | +3.4% | Broad-based segment growth and higher adjusted EBITDA margin with steady outlook. |
| Aug 06 | Q3 2024 earnings | Neutral | -8.9% | Revenue growth with revised lower revenue guidance but higher EPS targets. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have often been followed by negative reactions, with an average move of about -9.19%, especially when guidance or margins reset lower.
Recent earnings history for Azenta shows revenue growth but recurring pressure on margins and guidance. Q1 FY26 results featured $149M revenue and $0.09 non-GAAP EPS, yet shares fell 22.81%. FY25 quarters generally delivered low- to mid-single-digit revenue growth and improving adjusted EBITDA, but the stock often traded lower after reports. The current Q2 FY26 release continues this pattern, with modest revenue growth, weaker profitability and a guidance reset that extends long-range targets to 2029, consistent with past sensitivity to outlook changes.
Key Terms
adjusted ebitda financial
free cash flow financial
non-gaap financial
gaap financial
diluted eps financial
rule 10b5-1 regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
- FY'26 total reported revenue from continuing operations to range between approximately
$603 $621 million - FY'26 organic revenue is now expected to range from down approximately
2% to up1% , compared to prior guidance of3% to5% 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.
The results of B Medical Systems are treated as discontinued operations and reflected in total diluted EPS, following the | ||||||||||
Quarter Ended | ||||||||||
Dollars in millions, except per share data | March 31, | December 31, | March 31, | Change | ||||||
2026 | 2025 | 2025(1) | Prior 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, | ||||||||||
Management Comments
"Our second quarter results fell short of our expectations, reflecting both execution gaps and a more cautious demand environment, particularly in
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 , up1% year over year. Organic revenue, which excludes a 3-percentage point impact from foreign exchange and a 1-percentage point from the acquisition ofUK Biocentre Limited, declined3% year over year, reflecting lower revenue in Multiomics and in Sample Management Solutions. - Sample Management Solutions revenue was
$81 million 2% over year.- Organic revenue, which excludes the impact from foreign exchange and the contribution from the acquisition of
UK Biocentre Limited, declined3% , 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.
- Organic revenue, which excludes the impact from foreign exchange and the contribution from the acquisition of
- Multiomics revenue was
$64 million - 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.
- Organic revenue, which excludes the impact from foreign exchange, was down
Summary of GAAP Earnings Results - Continuing Operations
- Operating loss was
$165.8 million 114.5% ), down102% year over year.- Gross margin was
42.8% , down 96 basis points year over year, driven by lower fixed-cost absorption from reduced volumes inNorth 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 181% year-over-year, primarily driven by a non-cash goodwill impairment charge of$149 million
- Gross margin was
- Total other income included
$4 million $4 million UK Biocentre Limited, versus$4 million $1 million - Diluted EPS from continuing operations was (
$3.41 $0.43 $0.08 $0.61 $3.49 $1.04
Summary of Non-GAAP Earnings Results - Continuing Operations
- Adjusted operating loss was
$7 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 inNorth 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 , up5% year over year, driven by higher research and development costs and higher selling, general and administrative expenses.
- Adjusted gross margin was
- Adjusted EBITDA was
$7.8 million 5.4% , a decrease of 320 basis points year over year. - Non-GAAP Diluted EPS was (
$0.04 $0.01
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 $7 million $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
Updated Fiscal 2026 Guidance – Continuing Operations
- The Company now expects total reported revenue from continuing operations to range between approximately
$603 $621 million - 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 approximately2% to up1% relative to fiscal 2025, compared to prior guidance of3% to5% 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% to15% year-over-year, compared to prior expectations of approximately30% 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
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,
"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
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 March 31, | Six Months Ended 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 | (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 | |||||||
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 ( | 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, | — | — | |
Common stock, | 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 | (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 | $ 5,296 | $ 5,773 | |
Reconciliation of cash, cash equivalents and restricted cash to the condensed | |||
March 31, | September 30, | ||
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 | $ 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, except | $ | per | $ | per | $ | per | |||||
Net loss from continuing | $ (3.41) | $ (5,190) | $ (0.11) | $ (0.43) | |||||||
Adjustments: | |||||||||||
Amortization of completed | 2,076 | 0.05 | 1,860 | 0.04 | 2,308 | 0.05 | |||||
Amortization of other | 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 | 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 | $ (1,776) | $ (0.04) | $ 4,162 | $ 0.09 | $ 623 | $ 0.01 | |||||
Stock-based compensation, | 6,268 | 0.14 | 3,862 | 0.08 | 8,031 | 0.18 | |||||
Tax rate | 13 % | — | 13 % | — | 17 % | — | |||||
Stock-based compensation, | 5,453 | 0.12 | 3,360 | 0.07 | 6,690 | 0.15 | |||||
Non-GAAP adjusted net income | $ 3,677 | $ 0.08 | $ 7,522 | $ 0.16 | $ 7,313 | $ 0.16 | |||||
Shares used in computing | 46,063 | 45,929 | 45,732 | ||||||||
Six Months Ended | |||||||
March 31, 2026 | March 31, 2025(*) | ||||||
Amounts in thousands, except per share data | $ | per | $ | per | |||
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 | $ 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 | $ 11,197 | $ 0.24 | $ 16,796 | $ 0.37 | |||
Shares used in computing non-GAAP diluted net | 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 |
(3) | Includes expenses related to governance-related matters. |
(4) | The Company recognized |
(5) | Tax adjustments for the three and six months ended March 31, 2025 are primarily driven by |
Quarter Ended | Six Months Ended | ||||||||
Dollars in thousands | March 31, | December 31, | March 31, | March 31, | March 31, | ||||
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 | $ (147,754) | $ 6,460 | $ (3,107) | $ (141,296) | $ 2,948 | ||||
Quarter Ended | Six Months Ended | ||||||||
Dollars in thousands | March 31, | December 31, | March 31, | March 31, | March 31, | ||||
Earnings before interest, taxes, depreciation | $ (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 | 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, | $ 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 |
(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 |
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 | 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 thousands | March 31, | December 31, | March 31, | March 31, | December 31, | March 31, | |||||||||||||||||
GAAP gross profit | 45.7 % | 43.9 % | 45.3 % | 39.2 % | 41.5 % | 41.9 % | |||||||||||||||||
Adjustments: | |||||||||||||||||||||||
Amortization of | 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 | 47.4 % | 45.4 % | 47.1 % | 40.2 % | 42.6 % | 43.3 % | |||||||||||||||||
Segment Total | |||||||||||
Quarter Ended | |||||||||||
Dollars in thousands | March 31, | December 31, | March 31, | ||||||||
GAAP gross profit | $ 62,035 | 42.8 % | $ 63,706 | 42.9 % | $ 62,783 | 43.8 % | |||||
Adjustments: | |||||||||||
Amortization of | 2,076 | 1.4 % | 1,860 | 1.3 % | 2,308 | 1.6 % | |||||
Other Adjustments | — | — % | — | — % | (9) | (0.0 %) | |||||
Non-GAAP adjusted | $ 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 | 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 thousands | March 31, | December 31, | March 31, | March 31, | December 31, | March 31, | |||||
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 | $ 3,115 | $ 4,977 | $ 2,809 | $ (10,067) | $ (4,361) | $ (5,536) | |||||
Total Segments | Corporate | Total | |||||||||||||||
Quarter Ended | Quarter Ended | Quarter Ended | |||||||||||||||
Dollars in thousands | March | December | March | March | December | March | March | December | March | ||||||||
GAAP operating loss | $ (9,091) | $ (1,313) | $ (5,924) | $ (10,586) | $ (18,194) | ||||||||||||
Adjustments: | |||||||||||||||||
Amortization of | 2,076 | 1,860 | 2,308 | — | — | — | 2,076 | 1,860 | 2,308 | ||||||||
Amortization of other | — | — | — | 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 | — | — | — | 149,083 | — | — | 149,083 | — | — | ||||||||
Merger and acquisition | — | — | — | 2,175 | 13 | 688 | 2,175 | 13 | 688 | ||||||||
Other adjustments | 8 | 12 | (33) | — | — | — | 8 | 12 | (33) | ||||||||
Non-GAAP adjusted | $ (6,952) | $ 616 | $ (71) | $ (72) | $ 62 | $ (7,023) | $ 544 | $ (2,665) | |||||||||
Sample Management Solutions | Multiomics | ||||||
Six Months Ended | Six Months Ended | ||||||
Dollars in thousands | March 31, | March 31, | March 31, | March 31, | |||
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 | $ 8,092 | $ 7,580 | $ (14,427) | $ (7,843) | |||
Total Segments | Corporate | Total | |||||||||
Six Months Ended | Six Months Ended | Six Months Ended | |||||||||
Dollars in thousands | March 31, | March 31, | March 31, | March 31, | March 31, | March 31, | |||||
GAAP operating loss | $ (10,404) | $ (6,780) | $ (20,115) | $ (26,895) | |||||||
Adjustments: | |||||||||||
Amortization of completed technology | 3,935 | 3,808 | — | — | 3,935 | 3,808 | |||||
Amortization of other intangible | — | — | 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 | — | — | 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 | $ (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 |
(3) | Includes expenses related to governance-related matters. |
Sample Management Solutions | Multiomics | Azenta Total | |||||||||||||||
Quarter Ended | Quarter Ended | Quarter Ended | |||||||||||||||
Dollars in millions | March 31, | March 31, | Change | March 31, | March 31, | Change | March 31, | March 31, | Change | ||||||||
Revenue | $ 81 | $ 80 | 2 % | $ 64 | $ 64 | 0 % | $ 145 | $ 143 | 1 % | ||||||||
Acquisitions | (1) | — | (2) % | — | — | — % | (1) | — | (1) % | ||||||||
Currency | (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 millions | March 31, | March 31, | Change | March 31, | March 31, | Change | March 31, | March 31, | Change | ||||||||
Revenue | $ 163 | $ 161 | 1 % | $ 131 | $ 130 | 1 % | $ 293 | $ 291 | 1 % | ||||||||
Acquisitions | (1) | — | (1) % | — | — | — % | (1) | — | (0 %) | ||||||||
Currency | (4) | — | (3) % | (3) | — | (2) % | (7) | — | (2) % | ||||||||
Organic revenue | $ 157 | $ 161 | (2) % | $ 128 | $ 130 | (1) % | $ 285 | $ 291 | (2) % | ||||||||
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SOURCE Azenta