AZTA Azenta, Inc.

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Azenta Reported Earnings

Tuesday, August 4, 2026 · 4:30 PM ET

Azenta (AZTA) reported earnings of $0.16 per share on revenue of $161.18 million for the fiscal third quarter ended June 2026. The consensus revenue estimate was revenue of $152.80 million. Revenue grew 11.97% on a year-over-year basis.

Azenta, Inc. is a leading provider of life sciences solutions worldwide, enabling impactful breakthroughs and therapies to market faster.

Earnings Whisper Grade —
Power Rating—
Reported Earnings
$0.16
Earnings Whisper®
—
Consensus Estimate
—
Earnings Surprise
Earnings Growth-15.8 %
Reported Revenue
$161.18M
Revenue Estimate
$152.80M
Revenue Surprise
Revenue Growth12.0 %

Azenta Reports Third Quarter Results for Fiscal 2026, Ended June 30, 2026.

Tuesday, August 4, 2026 · 4:30 PM ET PR Newswire

BURLINGTON, Mass., Aug. 4, 2026 /PRNewswire/ -- Azenta, Inc. (Nasdaq: AZTA) today reported financial results for the third quarter ended June 30, 2026.

 

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.

 



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
      adjustments, as further described in the Annual Report on Form 10-K for the fiscal year ended September 30, 2025.

 

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 North America," said John Marotta, President and Chief Executive Officer. "While these results represent an encouraging step forward, our turnaround continues, and we remain focused on executing against our strategic priorities."

Third Quarter Fiscal 2026 Results - Continuing Operations

  • Revenue was $161?million, up 12% year over year. Organic revenue, which excludes a 1-percentage point impact from foreign exchange and a 3-percentage point impact from the acquisition of UK Biocentre Limited, was up 9% year over year, reflecting higher revenue in Sample Management Solutions and Multiomics.
  • Sample Management Solutions revenue was $88 million, up 14% year over year.
    • Organic revenue, which excludes the impact from foreign exchange and the contribution from the acquisition of UK Biocentre Limited, was up 9%, mainly driven by higher revenue in Sample Repository Solutions and Consumables and Instruments, partially offset by lower revenue in Automated Stores.
  • Multiomics revenue was $73 million, up 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.

Summary of GAAP Earnings Results - Continuing Operations

  • Operating loss was $4.2 million. Operating margin was (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, up 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.
  • Total other income included $4 million of net interest income, versus $5 million in the prior year period.
  • Diluted EPS from continuing operations was ($0.03) compared to ($0.01) in the third quarter of fiscal year 2025. Diluted EPS from discontinued operations was $0.09, compared to ($1.04) a year ago. Total diluted EPS was $0.05, compared to ($1.05) a year ago.

Summary of Non-GAAP Earnings Results - Continuing Operations

  • Adjusted operating income was $4.7?million. Adjusted operating margin was 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, up 13% year over year, driven by higher selling, general and administrative expenses and higher research and development expenses.
  • Adjusted EBITDA was $18.5 million, and Adjusted EBITDA margin was 11.4%, a decrease of 60 basis points year over year.
  • Non-GAAP Diluted EPS was $0.16, compared to $0.17 one year ago.

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 in the quarter. Capital expenditures were $7 million, and free cash flow (cash flow from operations less capital expenditures) was negative $5 million.

Share Repurchase Program Update

  • On December 8, 2025, our Board of Directors approved a share repurchase program authorizing the repurchase of up to $250 million of our common stock through December 31, 2028, or the 2025 Repurchase Program. Repurchases under the 2025 Repurchase Program may be made in the open market or through privately negotiated transactions (including under an accelerated share repurchase agreement), or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act, subject to market and business conditions, legal requirements, and other factors. As of June 30, 2026, the Company repurchased 2.3 million shares of common stock for $50.0 million (excluding fees, commissions, and excise tax) pursuant to the 2025 Repurchase Program. All shares of common stock repurchased under the 2025 Repurchase Program have been retired.

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 and $23 million

Full Year Fiscal 2026 Guidance - Continuing Operations

The Company now expects total reported revenue from continuing operations to range approximately between $613 to $618 million, compared to prior guidance of $603 to $621 million for the fiscal year ending September 30, 2026.

  • Total organic revenue, which excludes the impact of foreign exchange and the contribution from the acquisition of UK Biocentre Limited, is now expected to range approximately between flat to up 1%, compared to prior guidance of down 2% to up 1% 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 to $62 million, including an anticipated impact of approximately 30 basis points of margin dilution from the UK Biocentre acquisition.
  • Free cash flow (cash flow from operations less capital expenditures) is expected to improve approximately 10% to 15% 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, U.S. generally accepted accounting principles, or GAAP, should always be considered together with the most directly comparable GAAP measures, and may not be comparable to similarly titled measures used by other companies. These measures are presented on a continuing operations basis, except free cash flow, which is presented on a total company basis inclusive of B Medical Systems. Non-GAAP diluted EPS does not exclude stock-based compensation; the Company separately presents non-GAAP adjusted net income excluding stock-based compensation. Reconciliations to the most directly comparable GAAP measures, and descriptions of the adjustments, are included at the end of this release under "Notes on Non-GAAP Financial Measures." Certain amounts may not sum due to rounding, and all percentages are calculated using unrounded amounts.

"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 $35 million secured vendor loan extended to the buyer in connection with the B Medical Systems divestiture, including the buyer's ability to obtain permanent financing, the sufficiency of the collateral securing the loan, and the potential for an associated charge or impairment; and other risks and uncertainties described in the Company's filings with the Securities and Exchange Commission, including but not limited to its Annual Report on Form 10 K, Quarterly Reports on Form 10 Q and Current Reports on Form 8 K. Because forward looking statements relate to future events and are based on current expectations, they are inherently subject to significant uncertainties, particularly with respect to projections and assumptions extending over multiple years. As a result, actual outcomes may differ materially from those projected.

Azenta expressly disclaims any obligation or undertaking to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

About Azenta Life Sciences

 Azenta, Inc. (Nasdaq: AZTA) is a leading provider of life sciences solutions worldwide, enabling life science organizations around the world to bring impactful breakthroughs and therapies to market faster. Azenta provides a full suite of reliable cold-chain sample management solutions and multiomics services across areas such as drug development, clinical research and advanced cell therapies for the industry's top pharmaceutical, biotech, academic and healthcare institutions globally. Our global team delivers and supports these products and services through our industry-leading brands, including GENEWIZ, FluidX, Ziath, 4titude, Limfinity, Freezer Pro, and Barkey.

Azenta is headquartered in Burlington, Massachusetts, with operations in North America, Europe, and Asia. For more information, please visit www.azenta.com.

AZENTA INVESTOR CONTACTS:

Yvonne Perron
Vice President, Financial Planning & Analysis and Investor Relations
ir@azenta.com

Maria Isabel Cuartas
Manager Investor Relations
ir@azenta.com

AZENTA, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(In thousands, except per share data)

 


Three Months Ended

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,
2026


September 30,
2025





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 ($3,953 and $4,649, respectively)

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, $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, 57,226,616 shares issued and 43,764,747
shares outstanding at June 30, 2026; 59,320,848 shares issued and 45,858,979 shares outstanding at
September 30, 2025

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 UK Biocentre, net of cash acquired

(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,
2026


September 30,
2025

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
share


$


per diluted
share


$


per diluted
share

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


$ (1,776)


$     (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


$ 10,253


$      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
share


$


per diluted
share

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 $112.4 million for the Multiomics reporting unit and $36.6 million for the Sample Management Solutions reporting unit.

(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 $3.9 million non-cash gain from the settlement of the pre-existing contractual relationship with UK Biocentre Limited in the second quarter of fiscal 2026. The Company received $2.1 million of cash proceeds from a cost method investment which had no cost basis in the second quarter of fiscal 2025. These are non-recurring and non-operational adjustments.

(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 $112.4 million for the Multiomics reporting unit and $36.6 million for the Sample Management Solutions reporting unit.

(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 $3.9 million non-cash gain from the settlement of the pre-existing contractual relationship with UK Biocentre Limited in the second quarter of fiscal 2026. The Company received $2.1 million of cash proceeds from a cost method investment which had no cost basis in the second quarter of fiscal 2025. These are non-recurring and non-operational adjustments.

 


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,
2026


March 31,
2026


June 30, 2025(*)


June 30,
2026


March 31,
2026


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,
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 %



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,
2026


March 31,
2026


June 30, 2025(*)


June 30,
2026


March 31,
2026


June 30, 2025(*)


June 30,
2026


March 31,
2026


June 30, 2025(*)

GAAP operating loss

$    2,051


$   (9,091)


$  4,505


$   (6,229)


$ (156,699)


$   (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


$ (7,023)


$    6,728

 


Total Segments


Corporate


Total


Nine Months Ended


Nine Months Ended


Nine Months Ended

Dollars in thousands

June 30,
2026


June 30,
2025(*)


June 30,
2026


June 30,
2025(*)


June 30,
2026


June 30,
2025(*)

GAAP operating loss

$   (8,355)


$   (2,276)


$ (168,850)


$  (26,469)


$ (177,205)


$  (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 $112.4 million for the Multiomics reporting unit and $36.6 million for the Sample Management Solutions reporting unit.

(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,
2026


June 30,
2025


Change


June 30,
2026


June 30,
2025


Change


June 30,
2026


June 30,
2025


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,
2026


June 30,
2025


Change


June 30,
2026


June 30,
2025


Change


June 30,
2026


June 30,
2025


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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