Azenta Reports Third Quarter Results for Fiscal 2026, Ended June 30, 2026.
Rhea-AI Summary
Azenta (Nasdaq: AZTA) reported third quarter fiscal 2026 revenue from continuing operations of $161 million, up 12% year over year and 11% sequentially. Organic revenue grew 9%, with Sample Management Solutions at $88 million (14% YoY, 9% organic) and Multiomics at $73 million (10% YoY, 8% organic).
GAAP operating loss from continuing operations was $4.2 million with a (2.6%) margin, and diluted EPS from continuing operations was ($0.03), while total diluted EPS, including discontinued B Medical Systems, was $0.05. Adjusted EBITDA from continuing operations was $18.5 million (11.4% margin) and non-GAAP diluted EPS was $0.16. Azenta ended the quarter with $529 million in cash and marketable securities, generated $1 million in operating cash flow and recorded negative free cash flow of $5 million. Under its $250 million repurchase program, it has repurchased 2.3 million shares for $50 million to date.
Positive
- Revenue $161M from continuing operations, up 12% YoY and 11% QoQ
- Organic revenue growth 9% YoY driven by both core segments
- Sample Management Solutions revenue $88M, up 14% YoY and 9% organic
- Multiomics revenue $73M, up 10% YoY and 8% organic
- Adjusted EBITDA $18.5M, more than double prior quarter’s $8M
- Total cash, cash equivalents and marketable securities $529M at June 30, 2026
- Share repurchases of 2.3M shares for $50M under 2025 program
- Full-year organic revenue guidance updated to flat to +1% vs prior down 2% to +1%
- Full-year Adjusted EBITDA guidance $59M–$62M
- Free cash flow expected to improve 10%–15% YoY in fiscal 2026
Negative
- GAAP operating loss $4.2M with operating margin of (2.6%)
- GAAP gross margin 44.9%, down 130 bps YoY
- Adjusted gross margin 46.2%, down 140 bps YoY
- Adjusted EBITDA margin 11.4%, down 60 bps YoY
- Non-GAAP diluted EPS $0.16, down from $0.17 in prior-year quarter
- Operating expenses $77M, up 12% YoY
- Operating cash flow $1M; free cash flow negative $5M in the quarter
- Q4 fiscal 2026 organic revenue expected to decline low single digits YoY
- Full-year Multiomics organic revenue guidance down 1% to flat
- UK Biocentre acquisition expected to dilute full-year Adjusted EBITDA margin by ~30 bps
News Explained
The B Medical Systems sale closed July 1, while Azenta retains a $35 million secured vendor loan to the buyer.
The release confirms that Azenta’s B Medical Systems sale closed on
For fiscal 2026, management now expects the organic revenue outlook to range from
The release identifies collectability and timely repayment of the
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 05 | Q2 earnings report | Negative | -25.3% | Goodwill impairment, earnings loss, and reduced fiscal-year guidance |
| Feb 04 | Q1 earnings report | Negative | -22.8% | Gross-margin decline and B Medical Systems sale announcement |
| Aug 05 | Q3 earnings report | Positive | -17.0% | Revenue stability, EBITDA improvement, and reaffirmed fiscal-year guidance |
| May 07 | Q2 earnings report | Positive | -0.6% | Revenue growth, segment expansion, and improved adjusted EBITDA margin |
| Feb 05 | Q1 earnings report | Positive | +3.4% | Segment revenue growth, higher EBITDA margin, and maintained guidance |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Historical earnings events were followed by negative 24-hour reactions in 4 of 5 tag-specific cases, including releases reporting operational growth.
Key Terms
discontinued operations financial
gaap financial
adjusted ebitda financial
free cash flow financial
rule 10b5-1 regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
The results of B Medical Systems are reported as discontinued operations and reflected in total diluted EPS. The Company entered into a definitive agreement to sell the business during fiscal 2025, and the transaction closed on July 1, 2026, on the terms described in the Company's Current Report on Form 8-K filed on July 8, 2026.
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Quarter Ended | ||||||||||
Dollars in millions, except per share data | June 30, | March 31, | June 30, | Change | ||||||
2026 | 2026 | 2025(1) | Prior Qtr | Prior Yr. | ||||||
Revenue from Continuing Operations | $ 161 | $ 145 | $ 144 | 11 % | 12 % | |||||
Organic growth | 9 % | |||||||||
Sample Management Solutions | $ 88 | $ 81 | $ 78 | 9 % | 14 % | |||||
Multiomics | $ 73 | $ 64 | $ 66 | 14 % | 10 % | |||||
Diluted EPS Continuing Operations | $ (0.03) | $ (3.41) | $ (0.01) | 99 % | NM | |||||
Diluted EPS Total | $ 0.05 | $ (3.49) | $ (1.05) | NM | NM | |||||
Non-GAAP Diluted EPS Continuing Operations | $ 0.16 | $ (0.04) | $ 0.17 | NM | (6) % | |||||
Adjusted EBITDA - Continuing Operations | $ 18 | $ 8 | $ 17 | NM | 6 % | |||||
Adjusted EBITDA Margin - Continuing Operations | 11.4 % | 5.4 % | 12.1 % | |||||||
(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
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Management Comments
"Despite an uneven and challenging market backdrop, our third quarter results exceeded our expectations, with continued strength in our recurring revenue businesses, and a modest improvement in Multiomics in
Third Quarter Fiscal 2026 Results - Continuing Operations
- Revenue was
$161 million , up12% year over year. Organic revenue, which excludes a 1-percentage point impact from foreign exchange and a 3-percentage point impact from the acquisition ofUK Biocentre Limited, was up9% year over year, reflecting higher revenue in Sample Management Solutions and Multiomics. - Sample Management Solutions revenue was
$88 million 14% year over year.- Organic revenue, which excludes the impact from foreign exchange and the contribution from the acquisition of
UK Biocentre Limited, was up9% , mainly driven by higher revenue in Sample Repository Solutions and Consumables and Instruments, partially offset by lower revenue in Automated Stores.
- Organic revenue, which excludes the impact from foreign exchange and the contribution from the acquisition of
- Multiomics revenue was
$73 million 10% year over year.- Organic revenue, which excludes the impact from foreign exchange, was up
8% year over year, primarily driven by higher revenue in Next Generation Sequencing and Gene Synthesis, partially offset by lower Sanger Sequencing revenue.
- Organic revenue, which excludes the impact from foreign exchange, was up
Summary of GAAP Earnings Results - Continuing Operations
- Operating loss was
$4.2 million 2.6% ), down 131 basis points year over year.- Gross margin was
44.9% , a decrease of 130 basis points year over year, primarily driven by unfavorable fixed-cost absorption associated with lower sales volumes in certain areas of the portfolio as well as costs related to quality remediation and rework activities in Automated Stores. These impacts were partially offset by improved operating leverage and the benefits of ongoing cost initiatives. - Operating expenses in the quarter were
$77 million 12% year-over-year, driven by higher research and development expenses and higher selling, general and administrative expenses, partially offset by lower restructuring and transformation charges.
- Gross margin was
- Total other income included
$4 million $5 million - Diluted EPS from continuing operations was (
$0.03 $0.01 $0.09 $1.04 $0.05 $1.05
Summary of Non-GAAP Earnings Results - Continuing Operations
- Adjusted operating income was
$4 2.9% , a decrease of 180 basis points year over year.- Adjusted gross margin was
46.2% , down 140 basis points compared to the third quarter of fiscal 2025, primarily driven by unfavorable fixed-cost absorption associated with lower sales volumes in certain areas of the portfolio as well as costs related to quality remediation and rework activities in Automated Stores. These impacts were partially offset by improved operating leverage and the benefits of ongoing cost initiatives. - Adjusted operating expenses in the quarter were
$70 million , up13% year over year, driven by higher selling, general and administrative expenses and higher research and development expenses.
- Adjusted gross margin was
- Adjusted EBITDA was
$18.5 million 11.4% , a decrease of 60 basis points year over year. - Non-GAAP Diluted EPS was
$0.16 $0.17
Cash and Liquidity as of June 30, 2026
- The Company ended the quarter with a total balance of cash, cash equivalents, restricted cash and marketable securities of
$529 million - Operating cash flow was
$1 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 $50.0 million
Fourth Quarter Fiscal 2026 Guidance - Continuing Operations
- Total organic revenue, which excludes the impact of foreign exchange and the contribution from the acquisition of
UK Biocentre Limited, is expected to decline approximately in the low single digits relative to the fourth quarter of fiscal 2025 - Adjusted EBITDA is expected to range approximately between
$20 million $23 million
Full Year Fiscal 2026 Guidance - Continuing Operations
The Company now expects total reported revenue from continuing operations to range approximately between
- 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 approximately between flat to up1% , compared to prior guidance of down2% to up1% relative to fiscal 2025.- Organic revenue for Sample Management Solutions is expected to grow low-single-digits, consistent with prior guidance.
- Organic revenue for Multiomics is now expected to range approximately between down
1% to flat, compared to prior guidance of down mid-single-digits.
- Adjusted EBITDA is expected to be in the range of
$59 million $62 million UK Biocentre acquisition. - Free cash flow (cash flow from operations less capital expenditures) is expected to improve approximately
10% to15% year-over-year, consistent with prior guidance.
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, 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 third quarter fiscal 2026 earnings conference call on August 5, 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
This release includes non-GAAP financial measures, including organic revenue, adjusted gross profit and margin, adjusted operating income, expenses and margin, EBITDA, Adjusted EBITDA and Adjusted EBITDA margin, non-GAAP net income, non-GAAP diluted EPS and free cash flow. Management believes these measures give investors additional insight into the results of business operations, improve period-to-period comparability and facilitate comparison with peers. Management uses these measures to evaluate business performance and uses organic revenue (referred to as Core Revenue in the Company's proxy statement), Adjusted EBITDA and free cash flow in determining compensation under the Company's annual incentive plan. They are not presented in accordance with, and are not a substitute for,
"Safe Harbor Statement" under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended
Some statements in this release are forward-looking statements made under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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; risks relating to the collectability and timely repayment of the
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 June 30, | Nine Months Ended June 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Revenue | |||||||
Products | $ 41,259 | $ 39,387 | $ 119,985 | $ 125,169 | |||
Services | 119,919 | 104,468 | 334,630 | 309,460 | |||
Total revenue | 161,178 | 143,855 | 454,615 | 434,629 | |||
Cost of revenue | |||||||
Products | 25,018 | 19,572 | 71,889 | 68,607 | |||
Services | 63,804 | 57,879 | 184,629 | 168,016 | |||
Total cost of revenue | 88,822 | 77,451 | 256,518 | 236,623 | |||
Gross profit | 72,356 | 66,404 | 198,097 | 198,006 | |||
Operating expenses | |||||||
Research and development | 8,853 | 7,417 | 27,475 | 22,132 | |||
Selling, general and administrative | 67,168 | 60,083 | 195,666 | 199,854 | |||
Impairment of goodwill and intangible assets | — | — | 149,083 | — | |||
Restructuring charges | 513 | 754 | 3,078 | 4,765 | |||
Total operating expenses | 76,534 | 68,254 | 375,302 | 226,751 | |||
Operating loss | (4,178) | (1,850) | (177,205) | (28,745) | |||
Other income (expense) | |||||||
Interest income, net | 3,825 | 4,973 | 13,310 | 13,760 | |||
Other income (expense), net | 1,199 | (820) | 5,337 | 1,542 | |||
Income (loss) from continuing operations before income taxes | 846 | 2,303 | (158,558) | (13,443) | |||
Income tax expense | 2,375 | 2,635 | 5,182 | 13,752 | |||
Loss from continuing operations | (1,529) | (332) | (163,740) | (27,195) | |||
Income (loss) from discontinued operations, net of tax | 3,985 | (47,655) | (10,034) | (79,445) | |||
Net income (loss) | $ 2,456 | $ (47,987) | $ (173,774) | $ (106,640) | |||
Basic net income (loss) per share: | |||||||
Loss from continuing operations | $ (0.03) | $ (0.01) | $ (3.58) | $ (0.59) | |||
Income (loss) from discontinued operations, net of tax | $ 0.09 | $ (1.04) | $ (0.22) | $ (1.74) | |||
Basic net income (loss) per share | $ 0.05 | $ (1.05) | $ (3.80) | $ (2.33) | |||
Diluted net income (loss) per share: | |||||||
Loss from continuing operations | $ (0.03) | $ (0.01) | $ (3.58) | $ (0.59) | |||
Income (loss) from discontinued operations, net of tax | $ 0.09 | $ (1.04) | $ (0.22) | $ (1.74) | |||
Diluted net income (loss) per share | $ 0.05 | $ (1.05) | $ (3.80) | $ (2.33) | |||
Weighted average shares used in computing net income (loss) per share: | |||||||
Basic | 45,286 | 45,780 | 45,759 | 45,712 | |||
Diluted | 45,286 | 45,780 | 45,759 | 45,712 | |||
AZENTA, INC. CONSOLIDATED BALANCE SHEETS (unaudited) (In thousands, except share and per share data)
| |||
June 30, | September 30, | ||
Assets | |||
Current assets | |||
Cash and cash equivalents | $ 189,654 | $ 279,783 | |
Short-term marketable securities | 136,143 | 61,137 | |
Accounts receivable, net of allowance for expected credit losses ( | 143,675 | 142,181 | |
Inventories | 79,082 | 74,956 | |
Short-term restricted cash | 2,414 | 2,359 | |
Refundable income taxes | 5,846 | 9,728 | |
Prepaid expenses and other current assets | 53,150 | 64,660 | |
Current assets held for sale | 71,387 | 73,535 | |
Total current assets | 681,351 | 708,339 | |
Property, plant and equipment, net | 172,427 | 153,954 | |
Long-term marketable securities | 196,087 | 201,585 | |
Long-term deferred tax assets | 494 | 726 | |
Operating lease right-of-use assets | 61,421 | 54,048 | |
Goodwill | 547,457 | 702,395 | |
Intangible assets, net | 85,688 | 101,814 | |
Long-term income taxes receivable | 45,600 | 45,600 | |
Other assets | 8,997 | 6,115 | |
Noncurrent assets held for sale | 76,689 | 85,006 | |
Total assets | $ 1,876,211 | $ 2,059,582 | |
Liabilities and stockholders' equity | |||
Current liabilities | |||
Accounts payable | $ 39,381 | $ 37,722 | |
Deferred revenue | 36,041 | 31,569 | |
Derivative liability | 28,435 | 33,420 | |
Accrued warranty and retrofit costs | 4,047 | 4,713 | |
Accrued compensation and benefits | 30,965 | 35,799 | |
Customer deposits | 35,355 | 26,499 | |
Accrued income taxes payable | 6,775 | 9,416 | |
Deposit received for the sale of B Medical Systems business | 28,000 | — | |
Accrued expenses and other current liabilities | 34,249 | 30,268 | |
Current liabilities held for sale | 29,326 | 28,268 | |
Total current liabilities | 272,574 | 237,674 | |
Long-term deferred tax liabilities | 15,836 | 18,245 | |
Long-term operating lease liabilities | 53,967 | 51,244 | |
Other long-term liabilities | 10,725 | 11,142 | |
Noncurrent liabilities held for sale | 12,980 | 14,291 | |
Total liabilities | 366,082 | 332,596 | |
Stockholders' equity | |||
Preferred stock, | — | — | |
Common stock, | 572 | 594 | |
Additional paid-in capital | 493,071 | 529,605 | |
Accumulated other comprehensive loss | (28,740) | (22,213) | |
Treasury stock, at cost - 13,461,869 shares at June 30, 2026 and September 30, 2025 | (200,956) | (200,956) | |
Retained earnings | 1,246,182 | 1,419,956 | |
Total stockholders' equity | 1,510,129 | 1,726,986 | |
Total liabilities and stockholders' equity | $ 1,876,211 | $ 2,059,582 | |
AZENTA, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (In thousands)
| |||
Nine Months Ended June 30, | |||
2026 | 2025 | ||
Cash flows from operating activities | |||
Net loss | $ (173,774) | $ (106,640) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 41,230 | 46,775 | |
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 | 9,491 | 92,706 | |
Inventory write-downs and other non-cash items | 1,301 | 3,866 | |
Stock-based compensation | 15,232 | 16,716 | |
Amortization and accretion on marketable securities | (1,088) | (1,318) | |
Deferred income taxes | (3,563) | (20,385) | |
Loss on disposals of property, plant and equipment | 14 | 759 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 4,073 | 38,799 | |
Inventories | (9,501) | (9,998) | |
Accounts payable | (655) | (365) | |
Deferred revenue | 1,986 | 7,156 | |
Accrued warranty and retrofit costs | 84 | 38 | |
Accrued compensation and tax withholdings | (3,816) | 3,604 | |
Accrued restructuring costs | 26 | (51) | |
Other assets and liabilities | 9,540 | (1,651) | |
Net cash provided by operating activities | 35,805 | 70,011 | |
Cash flows from investing activities | |||
Purchases of property, plant and equipment | (20,234) | (25,997) | |
Purchases of marketable securities | (365,358) | (312,990) | |
Sales and maturities of marketable securities | 295,489 | 242,527 | |
Acquisition of | (11,150) | — | |
Proceeds from other investment | — | 2,130 | |
Net investment hedge settlement | — | 3,043 | |
Deposit received for the sale of B Medical Systems business | 28,000 | — | |
Net cash used in investing activities | (73,253) | (91,287) | |
Cash flows from financing activities | |||
Proceeds from issuance of common stock | 1,178 | 1,553 | |
Payments of finance leases | (583) | (585) | |
Withholding tax payments on net share settlements on equity awards | (2,521) | — | |
Excise tax payment for settled share repurchases | — | (11,376) | |
Share repurchases | (50,046) | — | |
Net cash used in financing activities | (51,972) | (10,408) | |
Effects of exchange rate changes on cash, cash equivalents and restricted cash | (2,594) | 4,510 | |
Net decrease in cash, cash equivalents and restricted cash | (92,014) | (27,174) | |
Cash, cash equivalents and restricted cash, beginning of period | 296,685 | 320,990 | |
Cash, cash equivalents and restricted cash, end of period | $ 204,671 | $ 293,816 | |
Supplemental disclosures: | |||
Cash paid for income taxes, net | $ 7,017 | $ 2,243 | |
Purchases of property, plant and equipment included in accounts payable and accrued expenses | $ 6,978 | $ 4,652 | |
Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets | |||
June 30, | September 30, | ||
Cash and cash equivalents of continuing operations | $ 189,654 | $ 279,783 | |
Cash included in current assets held for sale | 8,363 | 13,206 | |
Short-term restricted cash | 2,414 | 2,359 | |
Long-term restricted cash included in other assets | 4,240 | 1,337 | |
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows | $ 204,671 | $ 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, 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 | |||||||||||
June 30, 2026 | March 31, 2026 | June 30, 2025(*) | |||||||||
Amounts in thousands, except per share data | $ | per diluted | $ | per diluted | $ | per diluted | |||||
Net loss from continuing operations | $ (1,529) | $ (0.03) | $ (157,021) | $ (3.41) | $ (332) | $ (0.01) | |||||
Adjustments: | |||||||||||
Amortization of completed technology | 2,082 | 0.05 | 2,076 | 0.05 | 2,068 | 0.05 | |||||
Amortization of other intangible assets | 3,616 | 0.08 | 3,563 | 0.08 | 4,123 | 0.09 | |||||
Transformation costs(1) | 272 | 0.01 | 440 | 0.01 | 1,542 | 0.03 | |||||
Restructuring charges | 513 | 0.01 | 1,422 | 0.03 | 754 | 0.02 | |||||
Impairment of goodwill and intangible assets(2) | — | — | 149,083 | 3.24 | — | — | |||||
Merger and acquisition costs(3) | 2,248 | 0.05 | 2,175 | 0.05 | 58 | 0.00 | |||||
Non-recurring other adjustments(4) | — | 0.00 | (3,858) | (0.08) | 38 | 0.00 | |||||
Purchase accounting adjustments | 154 | 0.00 | — | — | — | — | |||||
Tax effect of adjustments | (198) | 0.00 | 331 | 0.01 | (534) | (0.01) | |||||
Other adjustments | — | — | 13 | 0.00 | — | — | |||||
Non-GAAP adjusted net income (loss) from continuing operations | $ 7,158 | $ 0.16 | $ (0.04) | $ 7,717 | $ 0.17 | ||||||
Stock-based compensation, pre-tax | 4,692 | 0.10 | 6,268 | 0.14 | 3,045 | 0.07 | |||||
Tax rate | 13 % | — | 13 % | — | 17 % | — | |||||
Stock-based compensation, net of tax | 4,082 | 0.09 | 5,453 | 0.12 | 2,536 | 0.06 | |||||
Non-GAAP adjusted net income excluding stock-based compensation - continuing operations | $ 11,240 | $ 0.25 | $ 3,677 | $ 0.08 | $ 0.22 | ||||||
Shares used in computing non-GAAP diluted net income per share | 45,286 | 46,063 | 45,780 | ||||||||
Nine Months Ended | |||||||
June 30, 2026 | June 30, 2025(*) | ||||||
Amounts in thousands, except per share data | $ | per diluted | $ | per diluted | |||
Net loss from continuing operations | $ (163,740) | $ (3.58) | $ (27,195) | $ (0.59) | |||
Adjustments: | |||||||
Amortization of completed technology | 6,017 | 0.13 | 5,876 | 0.13 | |||
Amortization of other intangible assets | 10,730 | 0.23 | 12,499 | 0.27 | |||
Transformation costs(1) | 1,913 | 0.04 | 9,771 | 0.21 | |||
Restructuring charges | 3,078 | 0.07 | 4,765 | 0.10 | |||
Impairment of goodwill and intangible assets(2) | 149,083 | 3.26 | — | — | |||
Merger and acquisition costs(3) | 4,436 | 0.10 | 2,316 | 0.05 | |||
Non-recurring other adjustments(4) | (3,858) | (0.08) | (2,097) | (0.05) | |||
Purchase accounting adjustment | 154 | 0.00 | — | — | |||
Tax adjustments(5) | — | — | 7,300 | 0.16 | |||
Tax effect of adjustments | 1,704 | 0.04 | 571 | 0.01 | |||
Other adjustments | 22 | 0.00 | — | — | |||
Non-GAAP adjusted net income from continuing operations | $ 9,539 | $ 0.21 | $ 13,806 | $ 0.30 | |||
Stock-based compensation, pre-tax | 14,822 | 0.32 | 15,949 | 0.35 | |||
Tax rate | 13 % | — | 17 % | — | |||
Stock-based compensation, net of tax | 12,895 | 0.28 | 13,238 | 0.29 | |||
Non-GAAP adjusted net income excluding stock-based compensation - continuing operations | $ 22,434 | $ 0.49 | $ 27,044 | $ 0.59 | |||
Shares used in computing non-GAAP diluted net income per share | 45,759 | 45,712 | |||||
(*) | See footnote (1) on Page 1. |
(1) | Transformation costs represent expenses associated with discrete strategic initiatives undertaken to simplify, standardize, streamline, and optimize the Company's operations, processes, and systems. These initiatives are intended to generate long-term operational efficiencies and productivity improvements and do not meet the definition of restructuring charges. Transformation costs primarily include asset write-downs associated with technology changes, inventory write-downs related to restructuring activities, and third-party consulting costs incurred to support process and systems redesign efforts. |
(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) | Merger and acquisition costs consist primarily of legal, accounting, valuation, and strategic advisory fees incurred in connection with acquisition and integration activities. |
(4) | The Company recognized |
(5) | Tax adjustments for the nine months ended June 30, 2025 are primarily driven by tax expenses related to a one-time repatriation of historical earnings from China. |
Quarter Ended | Nine Months Ended | ||||||||
Dollars in thousands | June 30, 2026 | March 31, 2026 | June 30, 2025(*) | June 30, 2026 | June 30, 2025(*) | ||||
GAAP net loss | $ 2,456 | $ (160,798) | $ (47,987) | $ (173,774) | $ (106,640) | ||||
Less: Loss from discontinued operations | 3,985 | (3,777) | (47,655) | (10,034) | (79,445) | ||||
GAAP net loss from continuing operations | (1,529) | (157,021) | (332) | (163,740) | (27,195) | ||||
Adjustments: | |||||||||
Interest income, net | (3,825) | (4,387) | (4,973) | (13,310) | (13,760) | ||||
Income tax expense | 2,375 | (323) | 2,635 | 5,182 | 13,752 | ||||
Depreciation | 7,861 | 8,338 | 8,399 | 24,406 | 23,695 | ||||
Amortization of completed technology | 2,082 | 2,076 | 2,068 | 6,017 | 5,876 | ||||
Amortization of other intangible assets | 3,616 | 3,563 | 4,123 | 10,730 | 12,499 | ||||
Earnings before interest, taxes, depreciation and amortization - Continuing operations | $ 10,580 | $ (147,754) | $ 11,920 | $ (130,715) | $ 14,867 | ||||
Quarter Ended | Nine Months Ended | ||||||||
Dollars in thousands | June 30, 2026 | March 31, 2026 | June 30, 2025(*) | June 30, 2026 | June 30, 2025(*) | ||||
Earnings before interest, taxes, depreciation and amortization - Continuing operations | $ 10,580 | $ (147,754) | $ 11,920 | $ (130,715) | $ 14,867 | ||||
Adjustments: | |||||||||
Stock-based compensation | 4,692 | 6,268 | 3,045 | 14,822 | 15,949 | ||||
Restructuring charges | 513 | 1,422 | 754 | 3,078 | 4,765 | ||||
Impairment of goodwill and intangible assets(1) | — | 149,083 | — | 149,083 | — | ||||
Merger and acquisition costs(2) | 2,248 | 2,175 | 58 | 4,436 | 2,316 | ||||
Transformation costs(3) | 272 | 440 | 1,542 | 1,913 | 9,771 | ||||
Non-recurring other adjustments(4) | — | (3,858) | 38 | (3,858) | (2,097) | ||||
Purchase accounting adjustment | 154 | — | — | 154 | — | ||||
Adjusted earnings before interest, taxes, depreciation and amortization - Continuing operations | $ 18,459 | $ 7,776 | $ 17,357 | $ 38,913 | $ 45,571 | ||||
(*) | 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) | Merger and acquisition costs consist primarily of legal, accounting, valuation, and strategic advisory fees incurred in connection with acquisition and integration activities. |
(3) | Transformation costs represent expenses associated with discrete strategic initiatives undertaken to simplify, standardize, streamline, and optimize the Company's operations, processes, and systems. These initiatives are intended to generate long-term operational efficiencies and productivity improvements and do not meet the definition of restructuring charges. Transformation costs primarily include asset write-downs associated with technology changes, inventory write-downs related to restructuring activities, and third-party consulting costs incurred to support process and systems redesign efforts. |
(4) | The Company recognized |
Quarter Ended | |||||||||||
Dollars in thousands | June 30, 2026 | March 31, 2026 | June 30, 2025(*) | ||||||||
GAAP gross profit | $ 72,356 | 44.9 % | $ 62,035 | 42.8 % | $ 66,404 | 46.2 % | |||||
Adjustments: | |||||||||||
Amortization of completed technology | 2,082 | 1.3 % | 2,076 | 1.4 % | 2,068 | 1.4 % | |||||
Other Adjustments | — | — % | — | — % | 25 | 0.0 % | |||||
Non-GAAP adjusted gross profit | $ 74,438 | 46.2 % | $ 64,111 | 44.3 % | $ 68,497 | 47.6 % | |||||
Nine Months Ended | ||||||||
Dollars in thousands | June 30, 2026 | June 30, 2025(*) | ||||||
GAAP gross profit | $ 198,097 | 43.6 % | $ 198,006 | 45.6 % | ||||
Adjustments: | ||||||||
Amortization of completed technology | 6,017 | 1.3 % | 5,876 | 1.4 % | ||||
Transformation costs(1) | — | — % | 51 | 0.0 % | ||||
Other Adjustments | — | — % | 25 | 0.0 % | ||||
Non-GAAP adjusted gross profit | $ 204,114 | 44.9 % | $ 203,958 | 46.9 % | ||||
(*) | See footnote (1) on Page 1. |
(1) | Transformation costs represent expenses associated with discrete strategic initiatives undertaken to simplify, standardize, streamline, and optimize the Company's operations, processes, and systems. These initiatives are intended to generate long-term operational efficiencies and productivity improvements and do not meet the definition of restructuring charges. Transformation costs primarily include asset write-downs associated with technology changes, inventory write-downs related to restructuring activities, and third-party consulting costs incurred to support process and systems redesign efforts. |
Sample Management Solutions | Multiomics | ||||||||||||||||||||||
Quarter Ended | Quarter Ended | ||||||||||||||||||||||
Dollars in thousands | June 30, | March 31, | June 30, 2025(*) | June 30, | March 31, | June 30, 2025(*) | |||||||||||||||||
GAAP gross profit | $ 39,126 | 44.3 % | $ 37,084 | 45.7 % | $ 40,180 | 51.8 % | $ 33,230 | 45.6 % | $ 24,951 | 39.2 % | $ 26,224 | 39.6 % | |||||||||||
Adjustments: | |||||||||||||||||||||||
Amortization of completed technology | 1,393 | 1.6 % | 1,389 | 1.7 % | 1,208 | 1.6 % | 689 | 0.9 % | 687 | 1.1 % | 860 | 1.3 % | |||||||||||
Other Adjustments | — | — % | — | — % | 25 | 0.0 % | — | — % | — | — % | — | — % | |||||||||||
Non-GAAP adjusted gross profit | $ 40,519 | 45.9 % | $ 38,473 | 47.4 % | $ 41,413 | 53.4 % | $ 33,919 | 46.5 % | $ 25,638 | 40.2 % | $ 27,084 | 40.9 % | |||||||||||
Segment Total | |||||||||||
Quarter Ended | |||||||||||
Dollars in thousands | June 30, | March 31, | June 30, 2025(*) | ||||||||
GAAP gross profit | $ 72,356 | 44.9 % | $ 62,035 | 42.8 % | $ 66,404 | 46.2 % | |||||
Adjustments: | |||||||||||
Amortization of completed technology | 2,082 | 1.3 % | 2,076 | 1.4 % | 2,068 | 1.4 % | |||||
Other Adjustments | — | — % | — | — % | 25 | 0.0 % | |||||
Non-GAAP adjusted gross profit | $ 74,438 | 46.2 % | $ 64,111 | 44.3 % | $ 68,497 | 47.6 % | |||||
Sample Management Solutions | Multiomics | ||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||
Dollars in thousands | June 30, 2026 | June 30, 2025(*) | June 30, 2026 | June 30, 2025(*) | |||||||||||||
GAAP gross profit | $ 111,993 | 44.7 % | $ 115,471 | 48.4 % | $ 86,104 | 42.2 % | $ 82,535 | 42.1 % | |||||||||
Adjustments: | |||||||||||||||||
Amortization of completed technology | 3,958 | 1.6 % | 3,296 | 1.4 % | 2,059 | 1.0 % | 2,580 | 1.3 % | |||||||||
Transformation costs(1) | — | — % | 51 | 0.0 % | — | — % | — | — % | |||||||||
Other Adjustments | — | — % | 25 | 0.0 % | $ — | — % | $ — | — % | |||||||||
Non-GAAP adjusted gross profit | 115,951 | 46.2 % | 118,843 | 49.8 % | $ 88,163 | 43.3 % | $ 85,115 | 43.4 % | |||||||||
Segment Total | ||||||||
Nine Months Ended | ||||||||
Dollars in thousands | June 30, 2026 | June 30, 2025(*) | ||||||
GAAP gross profit | $ 198,097 | 43.6 % | $ 198,006 | 45.6 % | ||||
Adjustments: | ||||||||
Amortization of completed technology | 6,017 | 1.3 % | 5,876 | 1.4 % | ||||
Transformation costs(1) | — | — % | 51 | 0.0 % | ||||
Other Adjustments | — | — % | $ 25 | 0.0 % | ||||
Non-GAAP adjusted gross profit | 204,114 | 44.9 % | $ 203,958 | 46.9 % | ||||
(*) | See footnote (1) on Page 1. |
(1) | Transformation costs represent expenses associated with discrete strategic initiatives undertaken to simplify, standardize, streamline, and optimize the Company's operations, processes, and systems. These initiatives are intended to generate long-term operational efficiencies and productivity improvements and do not meet the definition of restructuring charges. Transformation costs primarily include asset write-downs associated with technology changes, inventory write-downs related to restructuring activities, and third-party consulting costs incurred to support process and systems redesign efforts. |
Total Segments | Corporate | Total | |||||||||||||||
Quarter Ended | Quarter Ended | Quarter Ended | |||||||||||||||
Dollars in thousands | June 30, | March 31, | June 30, 2025(*) | June 30, | March 31, | June 30, 2025(*) | June 30, | March 31, | June 30, 2025(*) | ||||||||
GAAP operating loss | $ 2,051 | $ (9,091) | $ 4,505 | $ (6,229) | $ (6,355) | $ (4,178) | $ (165,790) | $ (1,850) | |||||||||
Adjustments: | |||||||||||||||||
Amortization of completed technology | 2,082 | 2,076 | 2,068 | — | — | — | 2,082 | 2,076 | 2,068 | ||||||||
Amortization of other intangible assets | 49 | — | — | 3,567 | 3,563 | 4,123 | 3,616 | 3,563 | 4,123 | ||||||||
Transformation costs(1) | 56 | 55 | 168 | 216 | 385 | 1,374 | 272 | 440 | 1,542 | ||||||||
Restructuring charges | — | — | — | 513 | 1,422 | 754 | 513 | 1,422 | 754 | ||||||||
Impairment of goodwill and intangible assets(2) | — | — | — | — | 149,083 | — | — | 149,083 | — | ||||||||
Merger and acquisition costs(3) | 204 | — | — | 2,044 | 2,175 | 58 | 2,248 | 2,175 | 58 | ||||||||
Purchase accounting and other adjustments | 154 | 8 | 38 | — | — | (5) | 154 | 8 | 33 | ||||||||
Non-GAAP adjusted operating income (loss) | $ 4,596 | $ (6,952) | $ 6,779 | $ 111 | $ (71) | $ (51) | $ 4,707 | $ 6,728 | |||||||||
Total Segments | Corporate | Total | |||||||||
Nine Months Ended | Nine Months Ended | Nine Months Ended | |||||||||
Dollars in thousands | June 30, | June 30, | June 30, | June 30, | June 30, | June 30, | |||||
GAAP operating loss | $ (8,355) | $ (2,276) | $ (26,469) | $ (28,745) | |||||||
Adjustments: | |||||||||||
Amortization of completed technology | 6,017 | 5,876 | — | — | 6,017 | 5,876 | |||||
Amortization of other intangible assets | 49 | — | 10,681 | 12,499 | 10,730 | 12,499 | |||||
Transformation costs(1) | 168 | 2,877 | 1,745 | 6,894 | 1,913 | 9,771 | |||||
Restructuring charges | — | — | 3,078 | 4,765 | 3,078 | 4,765 | |||||
Impairment of goodwill and intangible assets(2) | — | — | 149,083 | — | 149,083 | — | |||||
Merger and acquisition costs(3) | 204 | — | 4,232 | 2,316 | 4,436 | 2,316 | |||||
Purchase accounting and other adjustments | 175 | 40 | — | (5) | 175 | 35 | |||||
Non-GAAP adjusted operating income (loss) | $ (1,742) | $ 6,517 | $ (31) | $ — | $ (1,773) | $ 6,517 | |||||
(*) | See footnote (1) on Page 1. |
(1) | Transformation costs represent expenses associated with discrete strategic initiatives undertaken to simplify, standardize, streamline, and optimize the Company's operations, processes, and systems. These initiatives are intended to generate long-term operational efficiencies and productivity improvements and do not meet the definition of restructuring charges. Transformation costs primarily include asset write-downs associated with technology changes, inventory write-downs related to restructuring activities, and third-party consulting costs incurred to support process and systems redesign efforts. |
(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) | Merger and acquisition costs consist primarily of legal, accounting, valuation, and strategic advisory fees incurred in connection with acquisition and integration activities. |
Sample Management Solutions | Multiomics | Azenta Total | |||||||||||||||
Quarter Ended | Quarter Ended | Quarter Ended | |||||||||||||||
Dollars in millions | June 30, | June 30, | Change | June 30, | June 30, | Change | June 30, | June 30, | Change | ||||||||
Revenue | $ 88 | $ 78 | 14 % | $ 73 | $ 66 | 10 % | $ 161 | $ 144 | 12 % | ||||||||
Acquisitions | (4) | — | (5) % | — | — | — % | (4) | — | (3) % | ||||||||
Currency exchange rates | (0) | — | (0) % | (1) | — | (2) % | (1) | — | (1) % | ||||||||
Organic revenue | $ 84 | $ 78 | 9 % | $ 72 | $ 66 | 8 % | $ 156 | $ 144 | 9 % | ||||||||
Sample Management Solutions | Multiomics | Azenta Total | |||||||||||||||
Nine Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||
Dollars in millions | June 30, | June 30, | Change | June 30, | June 30, | Change | June 30, | June 30, | Change | ||||||||
Revenue | $ 251 | $ 239 | 5 % | $ 204 | $ 196 | 4 % | $ 455 | $ 435 | 5 % | ||||||||
Acquisitions | (5) | — | (2) % | — | — | — % | (5) | — | (1 %) | ||||||||
Currency exchange rates | (4) | — | (2) % | (4) | — | (2) % | (8) | — | (2) % | ||||||||
Organic revenue | $ 242 | $ 239 | 1 % | $ 200 | $ 196 | 2 % | $ 442 | $ 435 | 2 % | ||||||||
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SOURCE Azenta