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

BURLINGTON, Mass., Feb. 4, 2026 /PRNewswire/ -- Azenta, Inc. (Nasdaq: AZTA) today reported financial results for the first quarter ended December 31, 2025.

The results of B Medical Systems are treated as discontinued operations and reflected in total diluted EPS, following the Company's announcement in the first fiscal quarter of 2025 of its intention to pursue a sale and the entry into a definitive agreement to sell the business, which is expected to close on or before March 31, 2026.

Quarter Ended

Dollars in millions, except per share data

December

31,

September

30,

December

31,

Change

2025

2024 (1)

Prior Qtr

Prior Yr.

Revenue from Continuing Operations

149

159

147

(7)

Organic growth

(1)

Sample Management Solutions

(5)

Multiomics

(8)

Diluted EPS Continuing Operations

(0.11)

1.12

(0.16)

Diluted EPS Total

(0.34)

1.11

(0.25)

(34)

Non-GAAP Diluted EPS Continuing Operations

0.09

0.21

0.12

(57)

(24)

Adjusted EBITDA - Continuing Operations

(39)

(21)

Adjusted EBITDA Margin - Continuing Operations

8.5

13.0

10.8

(1)

Reflects revisions for an immaterial classification error among cost of revenue, research and development expenses, and selling, general and administrative expenses, and other immaterial adjustments, as further described in the Annual Report on Form 10-K for the fiscal year ended September 30, 2025.

Management Comments

"We delivered revenue performance consistent with our expectations. We also generated strong free cash flow in the quarter, reflecting our continued focus on operational discipline and working capital management," said John Marotta, President and CEO. "Further, we saw challenges on the gross margin line, and our turnaround continues, and in any turnaround, it is never a straight line. We remain committed to our fiscal 2026 objectives and our expectation for a stronger second half of the year, supported by our ongoing execution initiatives. We are equally confident in our long-range plan outlined at Investor Day, which extends through 2028 and supports sustainable growth and long-term value creation."

First Quarter Fiscal 2026 Results - Continuing Operations

Summary of GAAP Earnings Results - Continuing Operations

Summary of Non-GAAP Earnings Results - Continuing Operations

Cash and Liquidity as of December 31, 2025

Share Repurchase Program Update

Guidance for Continuing Operations for Full Year Fiscal 2026

Sale of B Medical Systems

Azenta does not provide forward-looking guidance on a GAAP basis for the measures on which it provides forward-looking non-GAAP guidance as the Company is unable to provide a quantitative reconciliation of forward-looking non-GAAP measures to the most directly comparable forward-looking GAAP measure, without unreasonable effort, because of the inherent difficulty in accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliations that have not yet occurred, are dependent on various factors, are out of the company's control, or cannot be reasonably predicted. Such adjustments include, but are not limited to, transformation costs, restructuring charges, costs related to acquisitions and divestitures costs, governance-related matters, goodwill and intangible impairments, stock-based compensation, and other gains and charges that are not representative of the normal operations of the business.

Conference Call and Webcast

Azenta management will webcast its first quarter fiscal 2026 earnings conference call today at 8:30 a.m. Eastern Time. During the call, Company management will respond to questions concerning, but not limited to, the Company's financial performance, business conditions and industry outlook. Management's responses could contain information that has not been previously disclosed.

The call will be broadcast live over the Internet and, together with presentation materials referenced on the call, will be hosted at the Investor Relations section of Azenta's website at https://investors.azenta.com/events and will be archived online on this website for convenient on-demand replay.

Regulation G – Use of Non-GAAP financial Measures

The Company supplements its GAAP financial measures with certain non-GAAP financial measures to provide investors a better perspective on the results of business operations, which the Company believes is more comparable to the similar analyses provided by its peers. These measures are not presented in accordance with, nor are they a substitute for, U.S. generally accepted accounting principles, or GAAP. These measures should always be considered in conjunction with appropriate GAAP measures. A reconciliation of non-GAAP measures to the most nearly comparable GAAP measures is included at the end of this release following the consolidated balance sheets and statements of operations. Certain amounts in the tables that supplement the consolidated financial statements may not sum due to rounding. All percentages are calculated using unrounded amounts.

"Safe Harbor Statement" under Section 21E of the Securities Exchange Act of 1934

Some statements in this release are forward-looking statements made under Section 21E of the Securities Exchange Act of 1934. These statements are neither promises nor guarantees but involve risks and uncertainties, both known and unknown, that could cause Azenta's financial and business results to differ materially from our expectations. They are based on the facts known to management at the time they are made. Forward-looking statements include but are not limited to statements about the Company's guidance for fiscal year 2026 including its revenue and earnings expectations, the expected timing of the closing of the B Medical Systems business disposition, and the manner in which repurchases under the Company's 2025 Share Repurchase Program may be made. Factors that could cause results to differ from our expectations include the following: uncertainties in global political and economic conditions, including the imposition of additional tariffs on goods imported into the US; our ability to reduce costs effectively; the volatility of the life sciences markets the Company serves; our possible inability to meet demand for our products due to difficulties in obtaining components and materials from our suppliers in required quantities and of required quality; the inability of customers to make payments to us when due; competition; and other factors and other risks, including those that we have described in our filings with the Securities and Exchange Commission, including but not limited to our Annual Report on Form 10-K, Current Reports on Form 8-K and our Quarterly Reports on Form 10-Q. As a result, we can provide no assurance that our future results will not be materially different from those projected. Azenta expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in our expectations or any change in events, conditions, or circumstance on which any such statement is based. Azenta undertakes no obligation to update the information contained in this press release.

About Azenta Life Sciences

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

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

AZENTA INVESTOR CONTACTS:

Yvonne Perron

Vice President, Financial Planning & Analysis and Investor Relations

[email protected]

Maria Isabel Cuartas

Manager Investor Relations

[email protected]

AZENTA, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(In thousands, except per share data)

Three Months Ended

December 31,

2025

2024

Revenue

Products

41,084

43,827

Services

107,558

103,609

Total revenue

148,642

147,436

Cost of revenue

Products

24,749

24,041

Services

60,187

54,576

Total cost of revenue

84,936

78,617

Gross profit

63,706

68,819

Operating expenses

Research and development

9,189

7,113

Selling, general and administrative

60,611

69,976

Restructuring charges

1,143

431

Total operating expenses

70,943

77,520

Operating loss

(7,237)

(8,701)

Other income

Interest income, net

5,098

4,298

Other income, net

1,204

Loss from continuing operations before income taxes

(2,060)

(3,199)

Income tax expense

3,130

3,874

Loss from continuing operations

(5,190)

(7,073)

Loss from discontinued operations, net of tax

(10,242)

(3,919)

Net loss

(15,432)

(10,992)

Basic net loss per share:

Loss from continuing operations

(0.11)

(0.16)

Loss from discontinued operations, net of tax

(0.22)

(0.09)

Basic net loss per share

(0.34)

(0.25)

Diluted net loss per share:

Loss from continuing operations

(0.11)

(0.16)

Loss from discontinued operations, net of tax

(0.22)

(0.09)

Diluted net loss per share

(0.34)

(0.25)

Weighted average shares used in computing net loss per share:

Basic

45,929

45,626

Diluted

45,929

45,626

AZENTA, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)

(In thousands, except share and per share data)

December 31,

September 30,

2025

Assets

Current assets

Cash and cash equivalents

336,631

279,783

Short-term marketable securities

73,025

61,137

Accounts receivable, net of allowance for expected credit losses ($4,053 and $4,649, respectively)

142,269

142,181

Inventories

82,458

74,956

Short-term restricted cash

2,393

2,359

Refundable income taxes

7,888

9,728

Prepaid expenses and other current assets

60,549

64,660

Current assets held for sale

74,689

73,535

Total current assets

779,902

708,339

Property, plant and equipment, net

152,032

153,954

Long-term marketable securities

155,914

201,585

Long-term deferred tax assets

527

726

Operating lease right-of-use assets

57,752

54,048

Goodwill

702,559

702,395

Intangible assets, net

96,604

101,814

Long term income taxes receivable

45,600

Other assets

7,743

6,115

Noncurrent assets held for sale

75,802

85,006

Total assets

2,074,435

2,059,582

Liabilities and stockholders' equity

Current liabilities

Accounts payable

38,767

37,722

Deferred revenue

32,861

31,569

Derivative liability

33,304

33,420

Accrued warranty and retrofit costs

4,315

4,713

Accrued compensation and benefits

30,440

35,799

Accrued customer deposits

36,885

26,499

Accrued income taxes payable

11,864

9,416

Accrued expenses and other current liabilities

44,007

30,268

Current liabilities held for sale

34,770

28,268

Total current liabilities

267,213

237,674

Long-term deferred tax liabilities

15,248

18,245

Long-term operating lease liabilities

54,462

51,244

Other long-term liabilities

11,475

11,142

Noncurrent liabilities held for sale

11,205

14,291

Total liabilities

359,603

332,596

Stockholders' equity

Preferred stock, $0.01 par value - 1,000,000 shares authorized, no shares issued or outstanding

—

Common stock, $0.01 par value - 125,000,000 shares authorized, 59,479,828 shares issued and

46,017,959 shares outstanding at December 31, 2025; 59,320,848 shares issued and 45,858,979

shares outstanding at September 30, 2025

595

594

Additional paid-in capital

531,245

529,605

Accumulated other comprehensive loss

(20,576)

(22,213)

Treasury stock, at cost - 13,461,869 shares at December 31, 2025 and September 30, 2025

(200,956)

Retained earnings

1,404,524

1,419,956

Total stockholders' equity

1,714,832

1,726,986

Total liabilities and stockholders' equity

2,074,435

2,059,582

AZENTA, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(In thousands)

Three Months Ended December 31,

2025

2024

Cash flows from operating activities

Net loss

(15,432)

(10,992)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

13,648

18,100

Loss on assets held for sale

9,696

—

Inventory write-downs and other asset write-offs

(305)

1,470

Stock-based compensation

4,058

5,112

Amortization and accretion on marketable securities

(374)

(541)

Deferred income taxes

(5,788)

657

Loss on disposals of property, plant and equipment

(42)

(8)

Changes in operating assets and liabilities:

Accounts receivable

723

4,850

Inventories

(9,729)

(7,622)

Accounts payable

4,572

(2,602)

Deferred revenue

3,195

10,462

Accrued warranty and retrofit costs

(248)

173

Accrued compensation and tax withholdings

(5,158)

(637)

Accrued restructuring costs

249

(566)

Other assets and liabilities

21,782

11,942

Net cash provided by operating activities

20,847

29,798

Cash flows from investing activities

Purchases of property, plant and equipment

(6,192)

(7,750)

Purchases of marketable securities

(108,692)

(40,754)

Sales and maturities of marketable securities

142,656

125,590

Deposit received for the sale of B Medical Systems business

9,000

—

Net cash provided by investing activities

36,772

77,086

Cash flows from financing activities

Payments of finance leases

(214)

(215)

Withholding tax payments on net share settlements on equity awards

(2,418)

—

Excise tax payment for settled share repurchases

—

(4,911)

Net cash used in financing activities

(2,632)

(5,126)

Effects of exchange rate changes on cash, cash equivalents and restricted cash

314

(8,311)

Net increase in cash, cash equivalents and restricted cash

55,301

93,447

Cash, cash equivalents and restricted cash, beginning of period

296,685

320,990

Cash, cash equivalents and restricted cash, end of period

351,986

414,437

Supplemental disclosures:

Cash paid / (received) for income taxes, net

2,098

(6,148)

Purchases of property, plant and equipment included in accounts payable and accrued expenses

5,703

3,249

Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance

sheets

December 31,

September 30,

2025

Cash and cash equivalents of continuing operations

336,631

279,783

Cash included in current assets held for sale

10,000

13,206

Short-term restricted cash

2,393

2,359

Long-term restricted cash included in other assets

2,962

1,337

Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of

cash flows

351,986

296,685

Notes on Non-GAAP Financial Measures - Continuing Operations

Non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management adjusts the GAAP results for the impact of amortization of intangible assets, restructuring charges, purchase price accounting adjustments and charges related to M&A, non-recurring costs related to the Company's business transformation initiatives and share repurchases to provide investors better perspective on the results of operations which the Company believes is more comparable to the similar analysis provided by its peers. Management also excludes special charges and gains, such as impairment losses, gains and losses from the sale of assets, certain tax benefits and charges, as well as other gains and charges that are not representative of the normal operations of the business. Management strongly encourages investors to review our financial statements and publicly filed reports in their entirety and not rely on any single measure.

Quarter Ended

December 31, 2025

September 30, 2025

December 31, 2024 (*)

per diluted

Amounts in thousands, except per

share data

Net income (loss) from continuing

operations

(5,190)

(0.11)

51,653

1.12

(7,073)

(0.16)

Adjustments:

Amortization of completed

technology

1,860

0.04

2,088

0.05

1,500

0.03

Amortization of other intangible

assets

3,551

0.08

3,977

0.09

4,573

0.10

Transformation costs (1)

1,202

0.03

634

0.01

3,046

0.07

Restructuring charges

1,143

0.02

406

0.01

431

0.01

Merger and acquisition costs and

costs related to share repurchase (2)

0.00

1,570

0.03

Tax adjustments (3)

—

(46,960)

(1.02)

400

0.01

Tax effect of adjustments

1,570

0.03

(2,246)

(0.05)

1,007

0.02

Other adjustments

0.00

—

Non-GAAP adjusted net income

from continuing operations

4,162

0.09

9,639

0.21

5,454

0.12

Stock-based compensation, pre-tax

3,862

0.08

3,901

0.08

4,872

0.11

Tax rate

—

Stock-based compensation, net of

tax

3,360

0.07

3,238

0.07

4,141

0.09

Non-GAAP adjusted net income

excluding stock-based compensation

- continuing operations

7,522

0.16

12,877

0.28

9,595

0.21

Shares used in computing non-

GAAP diluted net income per

—

45,929

—

45,994

—

45,626

(*)

See footnote (1) on Page 1.

(1)

Transformation costs represent non-recurring expenses for strategic projects with anticipated long-term benefits to the Company focused on cost reduction and productivity improvement that do not meet the definition of restructuring charges. These costs are directed at simplifying, standardizing, streamlining, and optimizing the Company's operations, processes and systems to permanently alter the Company's operations for the long term. For a project to be considered transformational, successful completion of the project must be expected to bring long-term material benefits to the organization and involve significant changes to process and/or underlying technology. Transformation costs primarily relate to one time asset write downs associated with changes in technology, one time inventory write downs relating to restructuring actions, and third-party consulting costs associated with process and systems re-design.

(2)

Includes expenses related to governance-related matters.

(3)

Tax adjustments during all periods include adjustments to tax benefits related to stock compensation. These adjustments are recognized in the period of vesting for US GAAP but included in the annual effective tax rate for Non-GAAP reporting. Tax adjustments for the three and six months ended March 31, 2025 include $6.6 million of tax expenses related to a one-time repatriation of historical earnings from China.

Quarter Ended

December 31,

September 30,

December 31,

Dollars in thousands

2025

2024 (*)

GAAP net income (loss)

(15,432)

50,877

(10,992)

Less: Loss from discontinued operations

(10,242)

(776)

(3,919)

GAAP net income (loss) from continuing operations

(5,190)

51,653

(7,073)

Adjustments:

Interest income, net

(5,098)

(5,019)

(4,298)

Income tax expense

3,130

(45,353)

3,874

Depreciation

8,207

8,338

7,478

Amortization of completed technology

1,860

2,088

1,500

Amortization of other intangible assets

3,551

3,977

4,573

Earnings before interest, taxes, depreciation and amortization -

Continuing operations

6,460

15,684

6,054

Quarter Ended

December 31,

September 30,

December 31,

Dollars in thousands

2025

2024 (*)

Earnings before interest, taxes, depreciation and amortization -

Continuing operations

6,460

15,684

6,054

Adjustments:

Stock-based compensation

3,862

3,901

4,872

Restructuring charges

1,143

406

431

Merger and acquisition costs and costs related to share repurchase (1)

1,570

Transformation costs (2)

1,202

634

3,046

Other adjustments

—

Adjusted earnings before interest, taxes, depreciation and amortization -

Continuing operations

12,692

20,712

15,973

(*)

See footnote (1) on Page 1.

(1)

Includes expenses related to governance-related matters.

(2)

Quarter Ended

Dollars in thousands

December 31, 2025

September 30, 2025

December 31, 2024 (*)

GAAP gross profit

63,706

42.9

72,274

45.4

68,819

46.7

Adjustments:

Amortization of completed

technology

1,860

1.3

2,088

1.3

1,500

1.0

Transformation costs (1)

—

0.0

Non-GAAP adjusted gross profit

65,566

44.1

74,362

46.7

70,381

47.7

(*)

See footnote (1) on Page 1.

(1)

Sample Management Solutions

Multiomics

Quarter Ended

December 31,

September 30,

December 31,

September 30,

December 31,

Dollars in thousands

2025

2024 (*)

2025

2024 (*)

GAAP gross profit

35,785

43.9

41,175

47.9

39,143

48.2

27,921

41.5

31,094

42.5

29,676

44.8

Adjustments:

Amortization of

completed technology

1,177

1.4

1,226

1.4

639

0.8

683

1.0

862

1.2

861

1.3

Transformation costs (1)

—

0.1

—

Non-GAAP adjusted

gross profit

36,962

45.4

42,401

49.3

39,844

49.1

28,604

42.6

31,956

43.7

30,537

46.1

Segment Total

Quarter Ended

December 31,

September 30,

December 31,

Dollars in thousands

2025

2024 (*)

GAAP gross profit

63,706

42.9

72,274

45.4

68,819

46.7

Adjustments:

Amortization of

completed

technology

1,860

1.3

2,088

1.3

1,500

1.0

Transformation

costs (1)

—

0.0

Non-GAAP adjusted

gross profit

65,566

44.1

74,362

46.7

70,381

47.7

(*)

See footnote (1) on Page 1.

(1)

Sample Management Solutions

Multiomics

Quarter Ended

December 31,

September 30,

December 31,

September 30,

December 31,

Dollars in thousands

2025

2024 (*)

2025

2024 (*)

GAAP operating income (loss)

3,731

8,015

4,019

(5,044)

(1,029)

(3,195)

Adjustments:

Amortization of completed technology

1,177

1,226

639

683

862

861

Transformation costs (1)

(57)

103

—

Restructuring charges

—

Other adjustments

—

Non-GAAP adjusted operating income (loss)

4,977

9,226

4,770

(4,361)

(136)

(2,311)

Total Segments

Corporate

Total

Quarter Ended

December

31,

September

30,

December

31,

December

31,

September

30,

December

31,

December

31,

September

30,

December

31,

Dollars in thousands

2025

2024 (*)

2025

2024 (*)

2025

2024 (*)

GAAP operating income (loss)

(1,313)

6,986

824

(5,924)

(5,085)

(9,525)

(7,237)

1,901

(8,701)

Adjustments:

Amortization of completed

technology

1,860

2,088

1,500

—

1,860

2,088

1,500

Amortization of other

intangible assets

—

3,551

3,977

4,573

3,551

3,977

4,573

Transformation costs (1)

(57)

103

1,145

691

2,943

1,202

634

3,046

Restructuring charges

—

1,143

406

408

1,143

406

431

Merger and acquisition costs

and costs related to share

repurchase (2)

—

1,570

Other adjustments

—

(73)

—

Non-GAAP adjusted operating

income (loss)

616

9,090

2,459

(72)

(31)

544

9,093

2,428

(*)

See footnote (1) on Page 1.

(1)

(2)

Includes expenses related to governance-related matters.

Sample Management Solutions

Multiomics

Azenta Total

Quarter Ended

December

31,

December

31,

December

31,

December

31,

December

31,

December

31,

Dollars in millions

2025

2024

Change

2025

2024

Change

2025

2024

Change

Revenue

149

147

Currency exchange rates

(2)

—

(2)

(1)

—

(1)

(3)

—

(2)

Organic revenue

(2)

(0)

146

147

(1)

SOURCE Azenta