Azenta, Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 5 May 2026: press release. Guidance figures: 5 lowered, 1 new. The quarter’s numbers.

Key takeaways

Revenue up 1%, organic down 3%: Revenue was $145 million, up 1% year over year, from $149 million in the prior quarter. Organic revenue, excluding foreign exchange and the UK Biocentre acquisition, declined 3%. Source
Operating loss from goodwill impairment: Operating loss was $165.8 million. Operating expenses of $228 million included a non-cash goodwill impairment charge of $149 million. Source
Adjusted EBITDA margin at 5.4%: Adjusted EBITDA was $7.8 million, a 5.4% margin, down 320 basis points year over year, compared with $13 million in the prior quarter. Source
Multiomics organic revenue declined 2%: Multiomics revenue was $64 million, flat year over year. Organic revenue fell 2%, mainly on lower Sanger Sequencing, partly offset by Next Generation Sequencing and Gene Synthesis. Source
Sample Management organic down 3%: Sample Management Solutions revenue was $81 million, up 2%. Organic revenue fell 3%, mainly from Core Products, particularly Automated Stores and Cryogenic Systems. Source
North America demand more cautious: Management cited execution gaps and a more cautious demand environment, particularly in North America, as reasons the quarter fell short of its expectations. Source
Long-range plan moved to 2029: Management said its strategic priorities and value creation framework remain intact after the long-range plan timeline was extended to 2029. Source
Multiomics transformation is the priority: Management named transformation of the Multiomics business as its 2026 priority, with a focus on commercial execution, operating footprint and productivity through the Azenta Business System. Source

“Our second quarter results fell short of our expectations, reflecting both execution gaps and a more cautious demand environment, particularly in North America,”
John Marotta, President and CEO of Azenta Life Sciences

Guidance

Area	Period	Figure	Against last quarter
Total reported revenue from continuing operations Source	Fiscal 2026 (year ending September 30, 2026)	approximately $603 to $621 million	New
Total organic revenue growth Source	Fiscal 2026 versus fiscal 2025	down approximately 2% to up 1%	Lowered from 3% to 5% growth
Sample Management Solutions organic revenue growth Source	Fiscal 2026 versus fiscal 2025	approximately low-single-digits growth	Lowered from mid-single-digit growth
Multiomics organic revenue Source	Fiscal 2026 versus fiscal 2025	decline approximately mid-single-digits	Lowered from low-single-digit growth
Adjusted EBITDA margin change Source	Fiscal 2026 versus fiscal 2025	decline of approximately 125 basis points to flat	Lowered from approximately 300 basis points expansion
Free cash flow improvement Source	Fiscal 2026 versus fiscal 2025	improve approximately 10% to 15% year-over-year	Lowered from approximately 30% improvement
Long-range plan target year Source	Long-range plan targets	2029

What changed from last quarter

Guidance lowered: Total organic revenue guidance was lowered from 3% to 5% growth to a range of a 2% decline to 1% growth. Source
Guidance lowered: Adjusted EBITDA margin guidance was lowered from about 300 basis points of expansion to a range from a decline of 125 basis points to flat. Source
Guidance lowered: Free cash flow improvement guidance was lowered from about 30% to 10% to 15% year over year. Source
Guidance lowered: Multiomics and Sample Management Solutions organic growth expectations were both lowered, with Multiomics now expected to decline. Source
New guidance: The company gave a total reported revenue range for continuing operations for fiscal 2026. The prior release gave organic growth guidance only. Source
New: The UK Biocentre Limited acquisition is now reflected in revenue growth, adding 1 percentage point to reported growth in the quarter. Source
New: The B Medical Systems sale did not close by March 31, 2026, the date the prior release expected. Source
New: Management named transformation of the Multiomics business as its 2026 priority. Source

Second quarter results and EPS

Revenue up 1%, organic down 3%: Revenue was $145 million, up 1% year over year, from $149 million in the prior quarter. Organic revenue, excluding foreign exchange and the UK Biocentre acquisition, declined 3%. Source
Operating loss from goodwill impairment: Operating loss was $165.8 million. Operating expenses of $228 million included a non-cash goodwill impairment charge of $149 million. Source
Adjusted EBITDA margin at 5.4%: Adjusted EBITDA was $7.8 million, a 5.4% margin, down 320 basis points year over year, compared with $13 million in the prior quarter. Source
Continuing-operations loss per share widened: Diluted EPS from continuing operations was a loss of $3.41, against a loss of $0.43 a year earlier. Total diluted EPS was a loss of $3.49. Source

Segments and regions

Multiomics organic revenue declined 2%: Multiomics revenue was $64 million, flat year over year. Organic revenue fell 2%, mainly on lower Sanger Sequencing, partly offset by Next Generation Sequencing and Gene Synthesis. Source
Sample Management organic down 3%: Sample Management Solutions revenue was $81 million, up 2%. Organic revenue fell 3%, mainly from Core Products, particularly Automated Stores and Cryogenic Systems. Source
Goodwill impairment split by unit: The impairment charge was allocated $112.4 million to the Multiomics reporting unit and $36.6 million to the Sample Management Solutions reporting unit. Source

“we have revised our fiscal 2026 outlook and taken decisive actions to strengthen execution, reinforce operational discipline, and improve visibility across the business.”
John Marotta, President and CEO of Azenta Life Sciences

Costs, margins and pricing

Gross margin fell on lower volumes: Gross margin was 42.8%, down 96 basis points year over year. Management attributed the decline to lower fixed-cost absorption, Automated Stores rework and higher inventory reserves. Source
Adjusted gross margin at 44.3%: Adjusted gross margin was 44.3%, down 110 basis points from the second quarter of fiscal 2025. Source
Adjusted operating expenses up 5%: Adjusted operating expenses were $71 million, up 5%, driven by higher research and development costs and higher selling, general and administrative expenses. Source

Demand and customer trends

North America demand more cautious: Management cited execution gaps and a more cautious demand environment, particularly in North America, as reasons the quarter fell short of its expectations. Source
Recurring offerings kept growing: Management pointed to continued growth in Sample Repository Solutions and Consumables and Instruments as areas of resilience in the quarter. Source

Cash, capital and share repurchases

Cash and securities of $565 million: Cash, cash equivalents, restricted cash and marketable securities totaled $565 million at March 31, 2026, against $571 million at December 31, 2025. Source
Operating cash flow of $12 million: Operating cash flow was $12 million in the quarter, with capital expenditures of $7 million and free cash flow of $5 million. Source
No buybacks under $250 million program: The $250 million program approved December 8, 2025 runs through December 31, 2028. No shares had been repurchased under it as of the press release date. Source

Strategy, leadership and long-range plan

Long-range plan moved to 2029: Management said its strategic priorities and value creation framework remain intact after the long-range plan timeline was extended to 2029. Source
Multiomics transformation is the priority: Management named transformation of the Multiomics business as its 2026 priority, with a focus on commercial execution, operating footprint and productivity through the Azenta Business System. Source
Leadership strengthened, operating rigor raised: Management said it has strengthened leadership and is increasing operational rigor to drive greater accountability and consistency across the organization. Source
Postponement seen as disciplined: Management described the extended timeline as a disciplined and prudent approach that postpones the financial targets without changing its confidence in the strategy. Source

B Medical Systems sale

Sale did not close by March 31: On March 27, 2026 the buyer, Thelema, told the company it had not secured financing, so the sale did not close by March 31, 2026. Source
Buyer needs more time for financing: Thelema indicated it requires additional time to complete its financing arrangements. The purchase price for the business is $63 million. Source
Agreement still in place: The parties have not amended or terminated the agreement. The company said there can be no assurance the sale completes on a revised timeline or at all. Source
Discontinued operations loss narrowed: Diluted EPS from discontinued operations was a loss of $0.08, compared with a loss of $0.61 a year ago. Source

Coming up, as management said on 5 May 2026

B Medical sale closing pending financing: The sale remains subject to closing conditions, including the buyer securing financing. Management said there can be no assurance of completion on a revised timeline or at all. Source

Risks management discussed

Demand: Management cited a more cautious demand environment, particularly in North America, as a cause of the quarter's shortfall. Source
Operational: Gross margin was reduced by costs from Automated Stores rework and by higher inventory reserves recorded in the period. Source
Financial: The B Medical Systems sale is delayed because the buyer has not secured financing, and completion is uncertain. Source
External: Foreign exchange had a 3-point impact on reported revenue growth, which organic growth excludes. Source
Financial: A non-cash goodwill impairment charge was recorded after the quantitative analysis as of March 31, 2026. Source

Earlier plans management reported on

Delayed: Management said the financial targets are postponed, while the strategy is unchanged. Source
Not stated: The prior release said the company remained committed to its fiscal 2026 objectives and expected a stronger second half.
Delayed: The sale was expected to close by March 31, 2026, and the buyer has said it needs more time. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Azenta Reports Second Quarter Results for Fiscal 2026, Ended March 31, 2026, Updates Full Year Fiscal 2026 Guidance, and Extends Long-Range Plan to 2029

FY’26 total reported revenue from continuing operations to range between approximately $603 to $621 million
FY'26 organic revenue is now expected to range from down approximately 2% to up 1%, compared to prior guidance of 3% to 5% growth
FY'26 Adjusted EBITDA margin is now expected to range from down approximately 125 basis points to flat, compared to prior expectations of approximately 300 basis points of expansion
Long-range plan timing updated to 2029 versus 2028 before in connection with revised 2026 guidance. Market opportunities, strategic priorities, and value creation framework remain intact.

BURLINGTON, Mass., May 5, 2026 (PR Newswire) - Azenta, Inc. (Nasdaq: AZTA) today reported financial results for the second quarter ended March 31, 2026.

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.

	Quarter Ended
Dollars in millions, except per share data	March 31,		December 31,		March 31,		Change
		2026		2025		2025	Prior Qtr		Prior Yr.
Revenue from Continuing Operations	$145		$149		$143		(3)%		1%
Organic growth									(3)%
Sample Management Solutions	$81		$81		$80		(0)%		2%
Multiomics	$64		$67		$64		(5)%		0%
Diluted EPS Continuing Operations	$(3.41)		$(0.11)		$(0.43)			NM		NM
Diluted EPS Total	$(3.49)		$(0.34)		$(1.04)			NM		NM
Non-GAAP Diluted EPS Continuing Operations	$(0.04)		$0.09		$0.01			NM		NM
Adjusted EBITDA - Continuing Operations	$8		$13		$12		(39)%		(36)%
Adjusted EBITDA Margin - Continuing Operations	5.4%		8.5%		8.5%

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

“Our second quarter results fell short of our expectations, reflecting both execution gaps and a more cautious demand environment, particularly in North America,” said John Marotta, President and CEO of Azenta Life Sciences. “As a result, we have revised our fiscal 2026 outlook and taken decisive actions to strengthen execution, reinforce operational discipline, and improve visibility across the business. At the same time, we saw areas of resilience, including continued growth in Sample Repository Solutions and Consumables and Instruments, reinforcing the strength of our recurring revenue offerings.

In 2026, our priority is the transformation of our Multiomics business, with a focus on strengthening commercial execution, optimizing our operating footprint, and improving productivity through Azenta Business System. We have strengthened leadership and are increasing operational rigor to drive greater accountability and consistency across the organization.

Given the updated 2026 outlook, we are extending the timeline of our long‑range plan targets from 2028 to 2029. This reflects a disciplined and prudent approach to execution in the current environment and, while postponing achievement of the financial targets, does not change our confidence in our strategy. While near‑term conditions remain measured, we continue to see a compelling long‑term market opportunity and believe the actions underway position Azenta for improved execution, greater consistency, and profitable long‑term value creation.”

Second Quarter Fiscal 2026 Results - Continuing Operations

Revenue was $145 million, up 1% year over year. Organic revenue, which excludes a 3-percentage point impact from foreign exchange and a 1-percentage point from the acquisition of UK Biocentre Limited, declined 3% year over year, reflecting lower revenue in Multiomics and in Sample Management Solutions.
Sample Management Solutions revenue was $81 million, up 2% over year.
Organic revenue, which excludes the impact from foreign exchange and the contribution from the acquisition of UK Biocentre Limited, declined 3%, mainly driven by lower revenue in Core Products, particularly in Automated Stores and Cryogenic Systems, partially offset by higher revenue in Sample Repository Solutions, Product Services and Consumables and Instruments.
Multiomics revenue was $64 million, flat year over year.
Organic revenue, which excludes the impact from foreign exchange, was down 2% year over year, primarily driven by lower Sanger Sequencing revenue, partially offset by higher revenue in Next Generation Sequencing and Gene Synthesis.

Summary of GAAP Earnings Results - Continuing Operations

Operating loss was $165.8 million. Operating margin was (114.5%), down 102% year over year.
Gross margin was 42.8%, down 96 basis points year over year, driven by lower fixed-cost absorption from reduced volumes in North America, as well as costs related to Automated Stores rework, and an increase in inventory reserves recorded during the period.
Operating expenses in the quarter were $228 million, up 181% year-over-year, primarily driven by a non-cash goodwill impairment charge of $149 million. The increase also reflects higher research and development expenses, partially offset by lower selling, general and administrative expenses and lower restructuring charges.
Total other income included $4 million of net interest income and $4 million gain related to the non-cash settlement of a preexisting contractual relationship with UK Biocentre Limited, versus $4 million and $1 million, respectively, in the prior year period.
Diluted EPS from continuing operations was ($3.41) compared to ($0.43) in the second quarter of fiscal year 2025. Diluted EPS from discontinued operations was ($0.08), compared to ($0.61) a year ago. Total diluted EPS was ($3.49), compared to ($1.04) a year ago.

Summary of Non-GAAP Earnings Results - Continuing Operations

Adjusted operating loss was $7.0 million. Adjusted operating margin was (4.9%), a decrease of 300 basis points year over year.
Adjusted gross margin was 44.3%, down 110 basis points compared to the second quarter of fiscal 2025, driven by lower fixed-cost absorption from reduced volumes in North America, costs related to Automated Stores rework, and an increase in inventory reserves recorded during the period.
Adjusted operating expenses in the quarter were $71 million, up 5% year over year, driven by higher research and development costs and higher selling, general and administrative expenses.
Adjusted EBITDA was $7.8 million, and Adjusted EBITDA margin was 5.4%, a decrease of 320 basis points year over year.
Non-GAAP Diluted EPS was ($0.04), compared to $0.01 one year ago.

Cash and Liquidity as of March 31, 2026

The Company ended the quarter with a total balance of cash, cash equivalents, restricted cash and marketable securities of $565 million.
Operating cash flow was $12 million in the quarter. Capital expenditures were $7 million, and free cash flow (cash flow from operations less capital expenditures) was $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. We are not obligated to acquire any particular amount of common stock under the 2025 Repurchase Program, and share repurchases may be commenced or suspended at any time at our discretion. As of the date of this press release , there have been no repurchases under the 2025 Repurchase Program.

Updated Fiscal 2026 Guidance - Continuing Operations

The Company now expects total reported revenue from continuing operations to range between approximately $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 between down approximately 2% to up 1% relative to fiscal 2025, compared to prior guidance of 3% to 5% growth.
Organic revenue for Sample Management Solutions is now expected to grow approximately low-single-digits, versus prior expectations of mid-single-digit growth.
Organic revenue for Multiomics is now expected to decline approximately mid-single-digits, versus prior expectations of low-single-digit growth.
Adjusted EBITDA margin is now expected to decline in a range of approximately 125 basis points to flat relative to fiscal 2025, compared to prior expectations of approximately 300 basis points expansion. This outlook excludes an expected dilution of approximately 35 basis points from the UK Biocentre acquisition.
Free Cash flow (cash flow from operations less capital expenditures) is now expected to improve approximately 10% to 15% year-over-year, compared to prior expectations of approximately 30% improvement.

Long-Range Plan Update

In connection with the revised 2026 outlook, the Company is extending the timeline of its long-range plan by one year, from 2028 to 2029. The Company continues to believe in the strength of its market opportunities, strategic priorities, and long-term value creation framework.

Sale of B Medical Systems

On December 23, 2025, we entered into a definitive Sale and Purchase Agreement with Thelema S.À R.L. for the sale of B Medical Systems business, for a purchase price of $63 million. As previously disclosed, the transaction was expected to close on or before March 31, 2026, subject to the satisfaction of customary closing conditions, including the buyer securing required financing. On March 27, 2026, the Company was informed by Thelema that it has not yet secured the financing required to complete the transaction and, as a result, the transaction did not close by March 31, 2026. Thelema has indicated that it requires additional time to complete its financing arrangements. The transaction remains subject to the satisfaction of all closing conditions, including the buyer securing the required financing, and there can be no assurance that the transaction will be completed on a revised timeline or at all. The parties have not amended or terminated the agreement as of the date of this press release.

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

Conference Call and Webcast

Azenta management will webcast its second quarter fiscal 2026 earnings conference call on May 06, 2026 at 8:30 a.m. Eastern Time. During the call, Company management will respond to questions concerning, but not limited to, the Company's financial performance, business conditions and industry outlook. Management's responses could contain information that has not been previously disclosed.

The call will be broadcast live over the Internet and, together with presentation materials and supplemental information referenced on the call, will be hosted at the Investor Relations section of Azenta’s website at https://investors.azenta.com/events. The supplemental information is being posted at the time of this earnings release, and the presentation materials will be posted ahead of the earnings call. A replay of the webcast will be archived on the website for convenient on-demand access.

Regulation G - Use of Non-GAAP financial Measures

The Company supplements its GAAP financial measures with certain non-GAAP financial measures to provide investors a better perspective on the results of business operations, which the Company believes is more comparable to the similar analyses provided by its peers. These measures are not presented in accordance with, nor are they a substitute for, 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 actual financial and business results to differ materially from those expressed or implied by such statements. They are based on the facts and assumptions known to management at the time they are made. Forward looking statements include, but are not limited to, statements regarding the Company’s guidance and outlook for fiscal year 2026, including revenue, organic revenue growth, earnings, Adjusted EBITDA margin and free cash flow expectations; expectations regarding the timing, execution and benefits of operational, commercial and organizational transformation initiatives; anticipated productivity improvements and cost actions; expectations regarding demand trends and end market conditions; statements regarding the Company’s long range plan and multi-year financial targets, including the extension of the long range plan timeline to 2029.

Factors that could cause actual results to differ materially from those expressed or implied by forward looking statements include, but are not limited to: the Company’s ability to execute on and realize the expected benefits from its transformation and operational improvement initiatives; changes in customer demand, purchasing behavior or funding conditions in the markets the Company serves; macroeconomic, geopolitical or regulatory developments; the impact of foreign currency fluctuations; the Company’s ability to effectively manage costs, improve productivity and achieve anticipated margin improvements; supply chain disruptions; competitive dynamics; the ability of customers to meet payment obligations; uncertainty regarding the timing or completion of the B Medical Systems divestiture; and other risks and uncertainties described in the Company’s filings with the Securities and Exchange Commission, including but not limited to its Annual Report on Form 10 K, Quarterly Reports on Form 10 Q and Current Reports on Form 8 K. Because forward looking statements relate to future events and are based on current expectations, they are inherently subject to significant uncertainties, particularly with respect to projections and assumptions extending over multiple years. As a result, actual outcomes may differ materially from those projected.

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

About Azenta Life Sciences

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

Azenta is headquartered in 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

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

	Three Months Ended March 31,				Six Months Ended March 31,
	2026		2025		2026		2025
Revenue
Products	$37,642		$41,955		$78,726		$85,782
Services	107,153		101,383		214,711		204,992
Total revenue	144,795		143,338		293,437		290,774
Cost of revenue
Products	22,122		24,994		46,871		49,035
Services	60,638		55,561		120,825		110,137
Total cost of revenue	82,760		80,555		167,696		159,172
Gross profit	62,035		62,783		125,741		131,602
Operating expenses
Research and development	9,433		7,602		18,622		14,715
Selling, general and administrative	67,887		69,795		128,498		139,771
Impairment of goodwill and intangible assets	149,083		-		149,083		-
Restructuring charges	1,422		3,580		2,565		4,011
Total operating expenses	227,825		80,977		298,768		158,497
Operating loss	(165,790)		(18,194)		(173,027)		(26,895)
Other income
Interest income, net	4,387		4,489		9,485		8,787
Other income, net	4,059		1,158		4,138		2,362
Loss from continuing operations before income taxes	(157,344)		(12,547)		(159,404)		(15,746)
Income tax (benefit) expense	(323)		7,243		2,807		11,117
Loss from continuing operations	(157,021)		(19,790)		(162,211)		(26,863)
Loss from discontinued operations, net of tax	(3,777)		(27,871)		(14,019)		(31,790)
Net loss	$(160,798)		$(47,661)		$(176,230)		$(58,653)
Basic net loss per share:
Loss from continuing operations	$(3.41)		$(0.43)		$(3.53)		$(0.59)
Loss from discontinued operations, net of tax	$(0.08)		$(0.61)		$(0.30)		$(0.70)
Basic net loss per share	$(3.49)		$(1.04)		$(3.83)		$(1.29)
Diluted net loss per share:
Loss from continuing operations	$(3.41)		$(0.43)		$(3.53)		$(0.59)
Loss from discontinued operations, net of tax	$(0.08)		$(0.61)		$(0.30)		$(0.70)
Diluted net loss per share	$(3.49)		$(1.04)		$(3.83)		$(1.29)
Weighted average shares used in computing net loss per share:
Basic		46,063		45,732		45,995		45,658
Diluted		46,063		45,732		45,995		45,658

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

	March 31, 2026	September 30, 2025
Assets
Current assets
Cash and cash equivalents	$234,033	$279,783
Short-term marketable securities	146,484	61,137
Accounts receivable, net of allowance for expected credit losses ($4,481and $4,649, respectively)	131,318	142,181
Inventories	78,510	74,956
Short-term restricted cash	2,410	2,359
Refundable income taxes	6,838	9,728
Prepaid expenses and other current assets	50,214	64,660
Current assets held for sale	77,178	73,535
Total current assets	726,985	708,339
Property, plant and equipment, net	171,832	153,954
Long-term marketable securities	177,831	201,585
Long-term deferred tax assets	501	726
Operating lease right-of-use assets	59,451	54,048
Goodwill	552,396	702,395
Intangible assets, net	92,107	101,814
Long-term income taxes receivable	45,600	45,600
Other assets	8,814	6,115
Noncurrent assets held for sale	68,372	85,006
Total assets	$1,903,889	$2,059,582
Liabilities and stockholders' equity
Current liabilities
Accounts payable	$33,136	$37,722
Deferred revenue	39,013	31,569
Derivative liability	29,615	33,420
Accrued warranty and retrofit costs	4,157	4,713
Accrued compensation and benefits	29,146	35,799
Accrued customer deposits	36,217	26,499
Accrued income taxes payable	8,753	9,416
Accrued expenses and other current liabilities	45,739	30,268
Current liabilities held for sale	31,416	28,268
Total current liabilities	257,192	237,674
Long-term deferred tax liabilities	15,747	18,245
Long-term operating lease liabilities	55,711	51,244
Other long-term liabilities	10,892	11,142
Noncurrent liabilities held for sale	9,670	14,291
Total liabilities	349,212	332,596
Stockholders' equity
Preferred stock, $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, 59,553,293 shares issued and 46,091,424 shares outstanding at March 31, 2026; 59,320,848 shares issued and 45,858,979 shares outstanding at September 30, 2025	596	594
Additional paid-in capital	538,782	529,605
Accumulated other comprehensive loss	(27,471)	(22,213)
Treasury stock, at cost - 13,461,869 shares at March 31, 2026 and September 30, 2025	(200,956)	(200,956)
Retained earnings	1,243,726	1,419,956
Total stockholders' equity	1,554,677	1,726,986
Total liabilities and stockholders' equity	$1,903,889	$2,059,582

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	Six Months Ended March 31,
	2026	2025
Cash flows from operating activities
Net loss	$(176,230)	$(58,653)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	27,650	32,053
Impairment of goodwill and intangible assets	149,083	-
Non-cash gain from settlement of preexisting contractual relationship	(3,858)	-
Loss on assets held for sale	15,965	31,848
Inventory write-downs and other asset write-offs	1,883	4,326
Stock-based compensation	10,420	13,453
Amortization and accretion on marketable securities	(682)	(983)
Deferred income taxes	(5,298)	(4,183)
Loss (gain) on disposals of property, plant and equipment	19	(7)
Changes in operating assets and liabilities:
Accounts receivable	8,541	6,713
Inventories	(6,700)	(5,780)
Accounts payable	(4,380)	1,981
Deferred revenue	7,141	12,042
Accrued warranty and retrofit costs	(122)	343
Accrued compensation and tax withholdings	(6,245)	(1,956)
Accrued restructuring costs	506	1,547
Other assets and liabilities	15,338	11,457
Net cash provided by operating activities	33,031	44,201
Cash flows from investing activities
Purchases of property, plant and equipment	(13,595)	(15,158)
Purchases of marketable securities	(328,835)	(236,237)
Sales and maturities of marketable securities	266,470	184,636
Acquisition of UK Biocentre, net of cash acquired	(9,688)	-
Proceeds from other investment	-	2,130
Net investment hedge settlement	-	3,043
Deposit received for the sale of B Medical Systems business	9,000	-
Net cash used in investing activities	(76,648)	(61,586)
Cash flows from financing activities
Proceeds from issuance of common stock	1,179	1,553
Payments of finance leases	(411)	(457)
Withholding tax payments on net share settlements on equity awards	(2,420)	-
Excise tax payment for settled share repurchases	-	(11,376)
Net cash used in financing activities	(1,652)	(10,280)
Effects of exchange rate changes on cash, cash equivalents and restricted cash	(2,128)	(4,459)
Net decrease in cash, cash equivalents and restricted cash	(47,397)	(32,124)
Cash, cash equivalents and restricted cash, beginning of period	296,685	320,990
Cash, cash equivalents and restricted cash, end of period	$249,288	$288,866
Supplemental disclosures:
Cash paid / (received) for income taxes, net	$3,466	$(4,594)
Purchases of property, plant and equipment included in accounts payable and accrued expenses	$5,296	$5,773

	March 31, 2026	September 30, 2025
Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets
Cash and cash equivalents of continuing operations	$234,033	$279,783
Cash included in current assets held for sale	8,763	13,206
Short-term restricted cash	2,410	2,359
Long-term restricted cash included in other assets	4,082	1,337
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows	$249,288	$296,685

Notes on Non-GAAP Financial Measures - Continuing Operations

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

	Quarter Ended
	March 31, 2026			December 31, 2025			March 31, 2025
Amounts in thousands, except per share data	$	per diluted share		$	per diluted share		$	per diluted share
Net loss from continuing operations	$(157,021)	$(3.41)		$(5,190)	$(0.11)		$(19,790)	$(0.43)
Adjustments:
Amortization of completed technology	2,076	0.05		1,860	0.04		2,308	0.05
Amortization of other intangible assets	3,563	0.08		3,551	0.08		3,803	0.08
Transformation costs	440	0.01		1,202	0.03		5,183	0.11
Restructuring charges	1,422	0.03		1,143	0.02		3,580	0.08
Impairment of goodwill and intangible assets	149,083	3.24		-	-		-	-
Merger and acquisition costs	2,175	0.05		13	0.00		688	0.02
Non-recurring other income	(3,858)	(0.08)		-	-		(2,130)	(0.05)
Tax adjustments	-	-		-	-		6,900	0.15
Tax effect of adjustments	331	0.01		1,570	0.03		98	0.00
Other adjustments	13	0.00		13	0.00		(17)	0.00
Non-GAAP adjusted net income (loss) from continuing operations	$(1,776)	$(0.04)		$4,162	$0.09		$623	$0.01
Stock-based compensation, pre-tax	6,268	0.14		3,862	0.08		8,031	0.18
Tax rate	13%	-		13%	-		17%	-
Stock-based compensation, net of tax	5,453	0.12		3,360	0.07		6,690	0.15
Non-GAAP adjusted net income excluding stock-based compensation - continuing operations	$3,677	$0.08		$7,522	$0.16		$7,313	$0.16
Shares used in computing non-GAAP diluted net income per share			46,063			45,929			45,732

	Six Months Ended
	March 31, 2026				March 31, 2025
Amounts in thousands, except per share data	$		per diluted share		$		per diluted share
Net loss from continuing operations		$(162,211)	$(3.53)		$(26,863)		$(0.59)
Adjustments:
Amortization of completed technology		3,935	0.09		3,808		0.08
Amortization of other intangible assets		7,113	0.15		8,376		0.18
Transformation costs		1,642	0.04		8,229		0.18
Restructuring charges		2,565	0.06		4,011		0.09
Impairment of goodwill and intangible assets		149,083	3.24		-		-
Merger and acquisition costs		2,188	0.05		2,258		0.05
Non-recurring other income		(3,858)	(0.08)		(2,130)		(0.05)
Tax adjustments		-	-		7,300		0.16
Tax effect of adjustments		1,901	0.04		1,106		0.02
Other adjustments		26	0.00		(9)		0.00
Non-GAAP adjusted net income from continuing operations		$2,384	$0.05			$6,086	$0.13
Stock-based compensation, pre-tax		10,130	0.22		12,904		0.28
Tax rate		13%	-		17%		-
Stock-based compensation, net of tax		8,813	0.19			10,710	0.23
Non-GAAP adjusted net income excluding stock-based compensation - continuing operations	$11,197		$0.24		$16,796		$0.37
Shares used in computing non-GAAP diluted net income per share				45,995			45,658

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.

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.

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 gains.

Tax adjustments for the three and six months ended March 31, 2025 are primarily driven by $6.4 million of tax expenses related to a one-time repatriation of historical earnings from China.

	Quarter Ended			Six Months Ended
Dollars in thousands	March 31, 2026	December 31, 2025	March 31, 2025	March 31, 2026	March 31, 2025
GAAP net loss	$(160,798)	$(15,432)	$(47,661)	$(176,230)	$(58,653)
Less: Loss from discontinued operations	(3,777)	(10,242)	(27,871)	(14,019)	(31,790)
GAAP net loss from continuing operations	(157,021)	(5,190)	(19,790)	(162,211)	(26,863)
Adjustments:
Interest income, net	(4,387)	(5,098)	(4,489)	(9,485)	(8,787)
Income tax expense	(323)	3,130	7,243	2,807	11,117
Depreciation	8,338	8,207	7,818	16,545	15,297
Amortization of completed technology	2,076	1,860	2,308	3,935	3,808
Amortization of other intangible assets	3,563	3,551	3,803	7,113	8,376
Earnings before interest, taxes, depreciation and amortization - Continuing operations	$(147,754)	$6,460	$(3,107)	$(141,296)	$2,948

	Quarter Ended			Six Months Ended
Dollars in thousands	March 31, 2026	December 31, 2025	March 31, 2025	March 31, 2026	March 31, 2025
Earnings before interest, taxes, depreciation and amortization - Continuing operations	$(147,754)	$6,460	$(3,107)	$(141,296)	$2,948
Adjustments:
Stock-based compensation	6,268	3,862	8,031	10,130	12,904
Restructuring charges	1,422	1,143	3,580	2,565	4,011
Impairment of goodwill and intangible assets	149,083	13	-	149,083	-
Merger and acquisition costs	2,175	1,202	688	2,188	2,258
Transformation costs	440	12	5,183	1,642	8,229
Non-recurring other income	(3,858)	-	(2,130)	(3,858)	(2,130)
Adjusted earnings before interest, taxes, depreciation and amortization - Continuing operations	$7,776	$12,692	$12,245	$20,454	$28,220

	Quarter Ended
Dollars in thousands	March 31, 2026		December 31, 2025		March 31, 2025
GAAP gross profit	$62,035	42.8%	$63,706	42.9%	$62,783	43.8%
Adjustments:
Amortization of completed technology	2,076	1.4%	1,860	1.3%	2,308	1.6%
Other Adjustments	-	- %	-	- %	(9)	(0.0%)
Non-GAAP adjusted gross profit	$64,111	44.3%	$65,566	44.1%	$65,082	45.4%

	Six Months Ended
Dollars in thousands	March 31, 2026		March 31, 2025
GAAP gross profit	$125,741	42.9%	$131,602	45.3%
Adjustments:
Amortization of completed technology	3,935	1.3%	3,808	1.3%
Transformation costs	-	- %	52	0.0%
Non-GAAP adjusted gross profit	$129,676	44.2%	$135,462	46.6%

	Sample Management Solutions						Multiomics
	Quarter Ended						Quarter Ended
Dollars in thousands	March 31, 2026		December 31, 2025		March 31, 2025		March 31, 2026		December 31, 2025		March 31, 2025
GAAP gross profit	$37,084	45.7%	$35,785	43.9%	$36,147	45.3%	$24,951	39.2%	$27,921	41.5%	$26,636	41.9%
Adjustments:
Amortization of completed technology	1,389	1.7%	1,177	1.4%	1,449	1.8%	687	1.1%	683	1.0%	859	1.4%
Other Adjustments	-	- %	-	- %	(9)	(0.0%)	-	- %	-	- %	-	- %
Non-GAAP adjusted gross profit	$38,473	47.4%	$36,962	45.4%	$37,587	47.1%	$25,638	40.2%	$28,604	42.6%	$27,495	43.3%

	Segment Total
	Quarter Ended
Dollars in thousands	March 31, 2026		December 31, 2025		March 31, 2025
GAAP gross profit	$62,035	42.8%	$63,706	42.9%	$62,783	43.8%
Adjustments:
Amortization of completed technology	2,076	1.4%	1,860	1.3%	2,308	1.6%
Other Adjustments	-	- %	-	- %	(9)	(0.0%)
Non-GAAP adjusted gross profit	$64,111	44.3%	$65,566	44.1%	$65,082	45.4%

	Sample Management Solutions				Multiomics
	Six Months Ended				Six Months Ended
Dollars in thousands	March 31, 2026		March 31, 2025		March 31, 2026		March 31, 2025
GAAP gross profit	$72,867	44.8%	$75,290	46.8%	$52,874	40.4%	$56,312	43.4%
Adjustments:
Amortization of completed technology	2,565	1.6%	2,088	1.3%	1,370	1.0%	1,720	1.3%
Transformation costs	-	- %	52	0.0%	-	- %	-	- %
Non-GAAP adjusted gross profit	$75,432	46.4%	$77,430	48.1%	$54,244	41.4%	$58,032	44.7%

	Segment Total
	Six Months Ended
Dollars in thousands	March 31, 2026		March 31, 2025
GAAP gross profit	$125,741	42.9%	$131,602	45.3%
Adjustments:
Amortization of completed technology	3,935	1.3%	3,808	1.3%
Transformation costs	-	- %	52	0.0%
Non-GAAP adjusted gross profit	$129,676	44.2%	$135,462	46.6%

	Sample Management Solutions			Multiomics
	Quarter Ended			Quarter Ended
Dollars in thousands	March 31, 2026	December 31, 2025	March 31, 2025	March 31, 2026	December 31, 2025	March 31, 2025
GAAP operating income (loss)	$1,668	$3,731	$(1,236)	$(10,759)	$(5,044)	$(6,372)
Adjustments:
Amortization of completed technology	1,389	1,177	1,449	687	683	859
Transformation costs	55	57	2,606	-	-	-
Other adjustments	3	12	(10)	5	-	(23)
Non-GAAP adjusted operating income (loss)	$3,115	$4,977	$2,809	$(10,067)	$(4,361)	$(5,536)

	Total Segments			Corporate			Total
	Quarter Ended			Quarter Ended			Quarter Ended
Dollars in thousands	March 31, 2026	December 31, 2025	March 31, 2025	March 31, 2026	December 31, 2025	March 31, 2025	March 31, 2026	December 31, 2025	March 31, 2025
GAAP operating loss	$(9,091)	$(1,313)	$(7,608)	$(156,699)	$(5,924)	$(10,586)	$(165,790)	$(7,237)	$(18,194)
Adjustments:
Amortization of completed technology	2,076	1,860	2,308	-	-	-	2,076	1,860	2,308
Amortization of other intangible assets	-	-	-	3,563	3,551	3,803	3,563	3,551	3,803
Transformation costs	55	57	2,606	385	1,145	2,577	440	1,202	5,183
Restructuring charges	-	-	-	1,422	1,143	3,580	1,422	1,143	3,580
Impairment of goodwill and intangible assets	-	-	-	149,083	-	-	149,083	-	-
Merger and acquisition costs	-	-	-	2,175	13	688	2,175	13	688
Other adjustments	8	12	(33)	-	-	-	8	12	(33)
Non-GAAP adjusted operating income (loss)	$(6,952)	$616	$(2,727)	$(71)	$(72)	$62	$(7,023)	$544	$(2,665)

	Sample Management Solutions		Multiomics
	Six Months Ended		Six Months Ended
Dollars in thousands	March 31, 2026	March 31, 2025	March 31, 2026	March 31, 2025
GAAP operating income (loss)	$5,398	$2,786	$(15,802)	$(9,566)
Adjustments:
Amortization of completed technology	2,565	2,088	1,370	1,720
Transformation costs	112	2,709	-	-
Other adjustments	17	(3)	5	3
Non-GAAP adjusted operating income (loss)	$8,092	$7,580	$(14,427)	$(7,843)

	Total Segments		Corporate		Total
	Six Months Ended		Six Months Ended		Six Months Ended
Dollars in thousands	March 31, 2026	March 31, 2025	March 31, 2026	March 31, 2025	March 31, 2026	March 31, 2025
GAAP operating loss	$(10,404)	$(6,780)	$(162,623)	$(20,115)	$(173,027)	$(26,895)
Adjustments:
Amortization of completed technology	3,935	3,808	-	-	3,935	3,808
Amortization of other intangible assets	-	-	7,113	8,376	7,113	8,376
Transformation costs	112	2,709	1,530	5,520	1,642	8,229
Restructuring charges	-	-	2,565	4,011	2,565	4,011
Impairment of goodwill and intangible assets	-	-	149,083	-	149,083	-
Merger and acquisition costs	-	-	2,188	2,258	2,188	2,258
Other adjustments	22	-	-	-	22	-
Non-GAAP adjusted operating income (loss)	$(6,335)	$(263)	$(144)	$50	$(6,479)	$(213)

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.

	Sample Management Solutions			Multiomics			Azenta Total
	Quarter Ended			Quarter Ended			Quarter Ended
Dollars in millions	March 31, 2026	March 31, 2025	Change	March 31, 2026	March 31, 2025	Change	March 31, 2026	March 31, 2025	Change
Revenue	$81	$80	2%	$64	$64	0%	$145	$143	1%
Acquisitions	(1)	-	(2)%	-	-	- %	(1)	-	(1)%
Currency exchange rates	(2)	-	(3)%	(2)	-	(3)%	(4)	-	(3)%
Organic revenue	$78	$80	(3)%	$62	$64	(2)%	$140	$143	(3)%

	Sample Management Solutions			Multiomics			Azenta Total
	Six Months Ended			Six Months Ended			Six Months Ended
Dollars in millions	March 31, 2026	March 31, 2025	Change	March 31, 2026	March 31, 2025	Change	March 31, 2026	March 31, 2025	Change
Revenue	$163	$161	1%	$131	$130	1%	$293	$291	1%
Acquisitions	(1)	-	(1)%	-	-	- %	(1)	-	(0%)
Currency exchange rates	(4)	-	(3)%	(3)	-	(2)%	(7)	-	(2)%
Organic revenue	$157	$161	(2)%	$128	$130	(1)%	$285	$291	(2)%