Azenta, Inc. (AZTA): Results of Operations and Financial Condition
Azenta, Inc. (AZTA) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Azenta Reports Third Quarter Results for Fiscal 2026, Ended June 30, 2026. BURLINGTON, Mass., August 4, 2026 (PR Newswire) – Azenta, Inc. (Nasdaq: AZTA) today reported financial results for the third quarter ended June 30, 2026. The results of B Medical Systems are r
How this was made
The 30-second read
Why it matters
Continuing-operations revenue rose to $161 million with organic growth, while GAAP EPS remained negative. Management also revised full-year revenue and organic growth expectations and provided an Adjusted EBITDA range, which are key inputs for valuation and near-term positioning.
Market read
Traders can update models using the new Q3 datapoints and the revised FY2026 continuing-operations guidance, especially organic revenue direction and Adjusted EBITDA expectations.
What to watch
The B Medical Systems segment is treated as discontinued operations, so traders should focus on continuing-operations trends and the drivers of gross margin decline from fixed-cost absorption and quality remediation.
Azenta Reports Third Quarter Results for Fiscal 2026, Ended June 30, 2026.
Continuing-operations revenue grew 12% year over year and both operating segments expanded, but GAAP operating loss persisted, gross and operating margins declined, free cash flow was negative, and fourth-quarter organic revenue is expected to decline approximately in the low single digits.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue from Continuing OperationsGAAP | $161 million | 11% | 12% |
| Organic growthnon-GAAP | 9% | – | 9% |
| Diluted EPS Continuing OperationsGAAP | $(0.03) | 99% | NM |
| Diluted EPS from discontinued operationsGAAP | $0.09 | – | – |
| Diluted EPS TotalGAAP | $0.05 | NM | NM |
| Non-GAAP Diluted EPS Continuing Operationsnon-GAAP | $0.16 | NM | (6)% |
| Operating lossGAAP | $4.2 million | – | – |
| Operating marginGAAP | (2.6%) | – | down 131 basis points |
| Gross marginGAAP | 44.9% | – | a decrease of 130 basis points |
| Operating expensesGAAP | $77 million | – | 12% |
| Net interest incomeGAAP | $4 million | – | – |
| Adjusted operating incomenon-GAAP | $4.7 million | – | – |
| Adjusted operating marginnon-GAAP | 2.9% | – | a decrease of 180 basis points |
| Adjusted gross marginnon-GAAP | 46.2% | – | down 140 basis points |
| Adjusted operating expensesnon-GAAP | $70 million | – | 13% |
| Adjusted EBITDA - Continuing Operationsnon-GAAP | $18 million | NM | 6% |
| Adjusted EBITDAnon-GAAP | $18.5 million | – | – |
| Adjusted EBITDA Margin - Continuing Operationsnon-GAAP | 11.4% | – | a decrease of 60 basis points |
| Operating cash flowGAAP | $1 million | – | – |
| Capital expendituresother | $7 million | – | – |
| Free cash flownon-GAAP | negative $5 million | – | – |
| Cash, cash equivalents, restricted cash and marketable securitiesGAAP | $529 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Sample Management SolutionsOrganic revenue was up 9%, mainly driven by higher revenue in Sample Repository Solutions and Consumables and Instruments, partially offset by lower revenue in Automated Stores. | $88 million | 9% | 14% |
| MultiomicsOrganic revenue 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. | $73 million | 14% | 10% |
Fourth Quarter Fiscal 2026 and Full Year Fiscal 2026 outlook
- RevenueTotal reported revenue from continuing operations is expected to range approximately between $613 to $618 million for the fiscal year ending September 30, 2026.
- NoteFourth Quarter Fiscal 2026: Total organic revenue is expected to decline approximately in the low single digits relative to the fourth quarter of fiscal 2025.
- NoteFourth Quarter Fiscal 2026: Adjusted EBITDA is expected to range approximately between $20 million and $23 million.
- NoteFull Year Fiscal 2026: Total organic revenue is expected to range approximately between flat to up 1% relative to fiscal 2025.
- NoteFull Year Fiscal 2026: Organic revenue for Sample Management Solutions is expected to grow low-single-digits.
- NoteFull Year Fiscal 2026: Organic revenue for Multiomics is expected to range approximately between down 1% to flat.
- NoteFull Year Fiscal 2026: 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.
- NoteFull Year Fiscal 2026: Free cash flow is expected to improve approximately 10% to 15% year-over-year.
Capital returns
- On December 8, 2025, the Board of Directors approved a share repurchase program authorizing the repurchase of up to $250 million of common stock through December 31, 2028.
- 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.
What drove it
- Revenue from continuing operations increased 12% year over year, with 9% organic growth.
- Organic revenue excludes a 1-percentage point impact from foreign exchange and a 3-percentage point impact from the acquisition of UK Biocentre Limited.
- Sample Management Solutions growth reflected higher Sample Repository Solutions and Consumables and Instruments revenue.
- Multiomics growth reflected higher Next Generation Sequencing and Gene Synthesis revenue.
- GAAP and adjusted gross-margin declines were partially offset by improved operating leverage and the benefits of ongoing cost initiatives.
- Operating expenses increased due to higher research and development expenses and higher selling, general and administrative expenses; lower restructuring and transformation charges partially offset the GAAP expense increase.
Concerns
- GAAP operating loss was $4.2 million and GAAP operating margin was (2.6%).
- Gross margin was 44.9%, a decrease of 130 basis points year over year.
- Adjusted gross margin was 46.2%, down 140 basis points compared to the third quarter of fiscal 2025.
- Margin pressure reflected unfavorable fixed-cost absorption associated with lower sales volumes in certain areas of the portfolio and costs related to quality remediation and rework activities in Automated Stores.
- Automated Stores revenue and Sanger Sequencing revenue were lower.
- Fourth-quarter organic revenue is expected to decline approximately in the low single digits relative to the fourth quarter of fiscal 2025.
- Free cash flow was negative $5 million.
What to watch
- Fourth-quarter organic revenue performance against the expected decline approximately in the low single digits.
- Execution in Automated Stores, including quality remediation and rework activities.
- Whether Sample Management Solutions achieves expected low-single-digit organic growth for full-year fiscal 2026.
- Whether Multiomics achieves expected organic revenue of down 1% to flat for full-year fiscal 2026.
- Adjusted EBITDA delivery against fourth-quarter guidance of approximately between $20 million and $23 million and full-year guidance of $59 million to $62 million.
- Free-cash-flow improvement expected to be approximately 10% to 15% year-over-year for full-year fiscal 2026.
- The anticipated impact of approximately 30 basis points of margin dilution from the UK Biocentre acquisition.
Balance sheet and cash flow
- 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.
- Free cash flow was negative $5 million.
- Free cash flow is presented on a total company basis inclusive of B Medical Systems.
Analysis
Azenta reported $161 million of continuing-operations revenue, up 12% year over year and 11% from the prior quarter. Organic growth was 9%, with the company stating that foreign exchange represented a 1-percentage point impact and the UK Biocentre Limited acquisition represented a 3-percentage point impact. Both operating segments grew, as Sample Management Solutions rose 14% and Multiomics rose 10% year over year.
The segment mix showed broad-based areas of growth but also persistent portfolio weakness. Sample Management Solutions benefited from Sample Repository Solutions and Consumables and Instruments, while Automated Stores declined. Multiomics was driven by Next Generation Sequencing and Gene Synthesis, partially offset by lower Sanger Sequencing revenue. Management characterized the market backdrop as uneven and challenging and cited a modest improvement in Multiomics in North America.
Profitability remained under pressure. The company recorded a $4.2 million GAAP operating loss, with operating margin of (2.6%), down 131 basis points year over year. Gross margin was 44.9%, down 130 basis points, and adjusted gross margin was 46.2%, down 140 basis points. Azenta attributed the pressure to unfavorable fixed-cost absorption from lower sales volumes in certain portfolio areas and to quality remediation and rework costs in Automated Stores, partly offset by improved operating leverage and cost initiatives.
On a non-GAAP basis, adjusted operating income was $4.7 million and adjusted EBITDA was $18.5 million, while adjusted EBITDA margin was 11.4%, down 60 basis points year over year. Non-GAAP diluted EPS was $0.16 versus $0.17 one year ago. Cash generation was limited during the quarter, with operating cash flow of $1 million, capital expenditures of $7 million, and negative $5 million of free cash flow. The company ended the quarter with $529 million of cash, cash equivalents, restricted cash and marketable securities and had repurchased 2.3 million shares for $50.0 million under its 2025 Repurchase Program.
For the fourth quarter, Azenta expects organic revenue to decline approximately in the low single digits and adjusted EBITDA of approximately between $20 million and $23 million. For full-year fiscal 2026, it now expects continuing-operations revenue of approximately between $613 to $618 million, organic revenue from flat to up 1%, and adjusted EBITDA of $59 million to $62 million. The full-year outlook includes anticipated UK Biocentre-related margin dilution of approximately 30 basis points, while free cash flow is expected to improve approximately 10% to 15% year over year.
Management, verbatim
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.
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.
John Marotta, President and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-period net income from continuing operations and total net income were not reported.
- Debt balance was not reported.
- Dividend activity was not reported.
- GAAP gross-margin, operating-income, net-income, EPS, operating-cash-flow, capital-expenditure, and free-cash-flow guidance was not provided.
- Forward gross-margin, operating-expense, and tax-rate guidance was not provided.
- Prior-quarter and prior-year comparisons were not reported for several GAAP and non-GAAP profitability and cash-flow metrics.
- A separate previous-release outlook was not provided for formal actual-versus-prior-guidance comparison. যদিও the current release states certain prior full-year guidance ranges.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Azenta filed an 8-K with Q3 FY2026 results (ended June 30, 2026) and guidance updates for continuing operations; B Medical Systems is reported as discontinued operations after a sale closed July 1, 2026.
Ticker impact
Azenta reported Q3 FY2026 results and updated FY2026 guidance for continuing operations, including organic revenue and Adjusted EBITDA ranges.
Likely modest volatility around the open as traders weigh revenue growth versus continued GAAP EPS weakness and the updated organic growth outlook.
Revenue grew in Q3 and Adjusted EBITDA improved, but GAAP EPS remains negative and guidance shifts (organic flat to up 1% vs prior down 2% to up 1%). The market may focus on whether the turnaround is sustainable and whether Multiomics stabilization holds.
Market effects
Signals demand and margin pressure dynamics in lab/biotech tools and services, especially in recurring revenue and Multiomics performance.
No explicit regional shock; commentary highlights North America Multiomics modest improvement.
Foreign exchange and acquisition-related organic adjustments are discussed, but no global regulatory or supply-chain event is disclosed.
Counterpoint
Despite organic growth, GAAP operating loss and negative free cash flow in the quarter suggest the turnaround may still be fragile, and guidance could be conservative.
Key entities
- companyAzenta, Inc.
Nasdaq-listed life sciences tools/services company reporting Q3 FY2026 results and updated FY2026 guidance.
- business_unitB Medical Systems
Reported as discontinued operations following a sale agreement closed July 1, 2026.
- business_unitUK Biocentre Limited
Acquisition referenced in organic revenue adjustments affecting reported versus organic growth comparisons.
