Financial Data and Key Metrics Changes - Organic revenue grew by 6% year over year, with adjusted EBITDA margin expanding by 400 basis points [7][26][28] - Total revenue for the second quarter was $143 million, reflecting a 5% year-over-year increase on a reported basis and 6% on an organic basis [27][29] - Non-GAAP EPS for the quarter was $0.05, with adjusted EBITDA margin at 10% [28][29] Business Line Data and Key Metrics Changes - Sample Management Solutions (SMS) revenue was $80 million, up 8% year over year, driven by strong performance in sample repository solutions and core products [30] - Multiomics revenue was $64 million, with a growth of 2% on a reported basis and 3% on an organic basis, primarily driven by next-generation sequencing, which grew 20% year over year [31][32] Market Data and Key Metrics Changes - North America experienced a general slowdown, with an 18% year-over-year decline in Sanger sequencing, while China showed strength with 5% organic revenue growth [34][32] - The company noted a decline in gene synthesis revenue by 10% year over year, attributed to a difficult comparison against a strong prior year [33] Company Strategy and Development Direction - The company is focused on operational excellence and reducing complexity through the Azenta Business System, which aims to enhance problem-solving capabilities and align with strategic goals [12][13] - There is an emphasis on potential tuck-in acquisitions to accelerate revenue growth and margin expansion, alongside investments in digital capabilities [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain macro environment, including NIH funding cuts and geopolitical tensions, but expressed confidence in the company's ability to counteract these challenges [9][10] - The company reaffirmed its full-year guidance for organic revenue growth between 3% and 5% and adjusted EBITDA margin expansion of 300 basis points [36][37] Other Important Information - The company has $540 million in cash and cash equivalents, with no debt outstanding, positioning it well for potential acquisitions and capital deployment [11][36] - A non-cash loss of $24 million was recorded on assets held for sale related to B Medical Systems, which is now treated as discontinued operations [25] Q&A Session Summary Question: Guidance and Growth Cadence - Management indicated that the guidance remains unchanged despite a 1% impact from NIH funding, with expectations for the second half of the year to align with prior years [41][44] Question: NIH Funding Headwind - The company has implemented countermeasures to mitigate the 1% headwind from NIH funding, with a focus on outsourcing opportunities as less efficient labs may close [52][57] Question: Free Cash Flow and Margins - Free cash flow performance was strong, and the company remains optimistic about achieving its long-term target of $100 million in free cash flow [58][60] Question: Sales Force Structure - The company is early in the rollout of the Azenta Business System and has aligned its sales force regionally to improve performance [65] Question: Gene Synthesis Trends - Management noted a pause in large programs from pharma partners but observed positive trends in bookings for the current quarter [78][80] Question: Capital Deployment Preferences - The company is open to various capital deployment strategies, including M&A and share buybacks, with a focus on long-term shareholder value [84][86]

Financial Data and Key Metrics Changes - Organic revenue grew by 6% year over year, with adjusted EBITDA margin expanding by 400 basis points [7][26][28] - Total revenue for the second quarter was $143 million, reflecting a 5% year over year increase on a reported basis and 6% on an organic basis [27][29] - Non-GAAP EPS for the quarter was $0.05, with adjusted EBITDA margin at 10% [28][29] Business Line Data and Key Metrics Changes - Sample Management Solutions (SMS) revenue was $80 million, up 8% year over year, driven by strong performance in sample repository solutions and core products [30] - Multiomics revenue was $64 million, with a growth of 2% on a reported basis and 3% on an organic basis, primarily driven by next-generation sequencing [31][32] Market Data and Key Metrics Changes - North America experienced a general slowdown, particularly in Sanger sequencing, which saw an 18% year over year decline [34] - China showed strength with 5% organic revenue growth, despite geopolitical tensions [32][71] Company Strategy and Development Direction - The company is focused on operational excellence and reducing complexity through the Azenta Business System [12][13] - Plans for potential tuck-in acquisitions are being evaluated to accelerate revenue growth and margin expansion [11][12] - The company aims to maintain a high bar for capital deployment, including potential stock buybacks if valuation disconnects persist [12][88] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain macro environment, including NIH funding cuts and tariffs, but expressed confidence in countermeasures to mitigate impacts [9][10][58] - The company remains committed to its full-year guidance of organic revenue growth between 3% and 5% and adjusted EBITDA margin expansion of 300 basis points [8][36] Other Important Information - The sale process for B Medical Systems is ongoing, with expectations for an announcement in the second half of fiscal year 2025 [8][25] - The company ended the quarter with $540 million in cash and no debt outstanding [28][36] Q&A Session Summary Question: Guidance and Growth Cadence - Analyst inquired about the growth cadence in the second half of the year and the impact of NIH funding on guidance [40] - Management confirmed that the guidance remains unchanged and expects the revenue profile to align with prior years [44][45] Question: Leadership Transition in SMS - Analyst asked about the leadership transition in SMS and future leadership plans [46] - Management indicated that the CEO is directly involved in running the SMS business during the transition [47][48] Question: NIH Funding Headwind - Analyst sought clarification on the assumptions behind the 1% headwind from NIH funding [52] - Management explained that they have countermeasures in place and are actively engaging with academic customers to mitigate risks [53][58] Question: Free Cash Flow and Margins - Analyst questioned the sustainability of free cash flow performance and margin expectations [59] - Management expressed confidence in achieving the long-term target of $100 million in free cash flow [60][62] Question: Sales Force Structure and ABS - Analyst inquired about the sales force structure under the Azenta Business System [67] - Management confirmed that a regional go-to-market model has been established and investments in sales are ongoing [68] Question: Gene Synthesis Trends - Analyst asked for insights on gene synthesis trends and customer dynamics [78] - Management noted a temporary pause in large pharma programs but indicated positive trends in recent bookings [80][81] Question: Capital Deployment Strategy - Analyst sought clarity on the balance between buybacks and M&A opportunities [83] - Management emphasized a holistic approach to capital deployment, focusing on long-term shareholder value [86][88] Question: Customer Insights and Order Trends - Analyst asked about potential order pull-forward due to tariffs and NGS ordering trends [93] - Management highlighted increased outsourcing opportunities and positive customer feedback on quality and delivery [98][100]

Financial Data and Key Metrics Changes - Organic revenue grew by 6% year over year, with adjusted EBITDA margin expanding by 400 basis points [6][28] - Total revenue for the second quarter was $143 million, reflecting a 5% year over year increase on a reported basis and 6% on an organic basis [28][30] - Non-GAAP EPS for the quarter was $0.05, with adjusted EBITDA margin at 10% [29][30] Business Line Data and Key Metrics Changes - Sample Management Solutions (SMS) revenue was $80 million, up 8% year over year, driven by strong performance in consumables and instruments [31] - Multiomics revenue was $64 million, with a growth of 2% on a reported basis and 3% on an organic basis, primarily driven by next-generation sequencing [32][33] Market Data and Key Metrics Changes - North America showed softness in demand, particularly in Sanger sequencing, which declined by 18% year over year [34] - China demonstrated strength with a 5% organic revenue growth, despite geopolitical tensions [33][71] Company Strategy and Development Direction - The company is focused on operational excellence and reducing complexity through the Azenta Business System [12][13] - Plans for tuck-in acquisitions are being evaluated to accelerate revenue growth and margin expansion [11][88] - The company aims to maintain a high bar for capital deployment, including potential stock buybacks if valuation disconnects persist [12][88] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain macro environment, including NIH funding cuts and tariffs, but expressed confidence in countermeasures to mitigate impacts [10][38] - The company remains committed to its full-year guidance of organic revenue growth between 3% and 5% and adjusted EBITDA margin expansion of 300 basis points [7][38] Other Important Information - The sale process for B Medical Systems is ongoing, with an announcement expected in the second half of fiscal year 2025 [7][25] - The company ended the quarter with $540 million in cash and no debt outstanding [29][37] Q&A Session Summary Question: Guidance and Growth Cadence - Management held guidance steady, expecting the second half of the year to align with prior years despite macro uncertainties [42][44] Question: NIH Funding Headwind - The 1% headwind from NIH funding has been countermeasured, with proactive steps taken to mitigate risks [53][56] Question: Free Cash Flow and Margins - Free cash flow performance is expected to be sustainable, with a target of $100 million for the full year [60][62] Question: Sales Force Structure - The sales force structure is being aligned regionally, with investments in headcount to drive performance [68][69] Question: Gene Synthesis Trends - There has been a pause in large programs from pharma partners, but early signs of recovery are noted [81][82] Question: Capital Deployment Preferences - The company is open to various capital deployment strategies, including M&A and buybacks, depending on market conditions [88][90]

Financial Performance - Azenta's Q2 2025 revenue reached $143 million, demonstrating a 5% year-over-year (YoY) growth on a reported basis and 6% on an organic basis[10] - The company's Non-GAAP EPS stood at $005[10] - Adjusted EBITDA was reported at 100%, reflecting a 400 bps YoY margin expansion[10,11] - Free cash flow generation amounted to $7 million, inclusive of B Medical[10] Segment Performance - Sample Management Solutions (SMS) experienced an 8% YoY organic growth[10,16] - Multiomics segment saw a 3% YoY organic growth[10,14] - Within SMS, Consumables and Instruments (C&I) showed a significant 22% growth[20] - Next-Generation Sequencing (NGS) within Multiomics grew by 20%, driven by double-digit volume growth[21] Balance Sheet and Cash Flow - The company holds a strong cash balance of $540 million, including B Medical, with no outstanding debt[10] - Cash flow from operations was $14 million[32] Fiscal Year 2025 Guidance - The company anticipates organic revenue growth of 3% to 5% YoY for fiscal year 2025[38] - Expects 300bps of Adjusted EBITDA margin expansion[39]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Azenta reported strong Q2 FY2025 results with revenue from continuing operations increasing 5% and adjusted EBITDA growing 75% year-over-year [Q2 FY2025 Performance Summary](index=1&type=section&id=Q2%20FY2025%20Performance%20Summary) Azenta reported strong Q2 FY2025 results with revenue from continuing operations increasing 5% and adjusted EBITDA growing 75% year-over-year Q2 FY2025 Key Financial Metrics (Continuing Operations) | Metric | Q2 2025 (Mar 31, 2025) | Q2 2024 (Mar 31, 2024) | YoY Change | Q1 2025 (Dec 31, 2024) | QoQ Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $143M | $136M | +5% | $148M | -3% | | Organic Growth | 6% | - | - | - | - | | Diluted EPS (GAAP) | $(0.40) | $(0.29) | -36% | $(0.21) | -93% | | Non-GAAP Diluted EPS | $0.05 | $0.06 | -23% | $0.08 | -43% | | Adjusted EBITDA | $14M | $8M | +75% | $13M | +7% | | Adjusted EBITDA Margin | 10.0% | 6.0% | +400 bps | 9.0% | +100 bps | - Management highlighted the resilience of the company's portfolio and the dedication of its teams, emphasizing a healthy balance sheet and strong cash position that allows for continued investment in long-term growth plans[4](index=4&type=chunk) - The financial results of B Medical Systems are treated as discontinued operations following the company's announcement of its intention to pursue a sale[2](index=2&type=chunk) [Financial Performance](index=1&type=section&id=Financial%20Performance) The company demonstrated improved financial performance in Q2 FY2025, driven by revenue growth, gross margin expansion, and reduced operating losses across key segments [GAAP Earnings Results - Continuing Operations](index=1&type=section&id=GAAP%20Earnings%20Results%20-%20Continuing%20Operations) GAAP revenue from continuing operations increased 5% year-over-year, with improved gross margin and a narrowed operating loss due to lower expenses GAAP Revenue by Segment (YoY) | Segment | Q2 2025 Revenue | YoY Growth | Organic Growth | | :--- | :--- | :--- | :--- | | Sample Management Solutions | $80M | +8% | +8% | | Multiomics | $64M | +2% | +3% | | **Total Revenue** | **$143M** | **+5%** | **+6%** | - Gross margin increased to **45.9%** from **44.5%** YoY, an improvement of **140 basis points**, attributed to higher revenue, favorable sales mix, and operational efficiencies[7](index=7&type=chunk) - Operating expenses decreased by **3%** YoY to **$82 million**, mainly due to lower R&D expenses and the non-recurrence of a **$4.7 million** intangible asset impairment charge recorded in Q2 2024[7](index=7&type=chunk)[8](index=8&type=chunk) [Non-GAAP Earnings Results - Continuing Operations](index=2&type=section&id=Non-GAAP%20Earnings%20Results%20-%20Continuing%20Operations) Non-GAAP results show significant operational improvement with adjusted operating loss narrowing, adjusted EBITDA growing 75%, and margin expanding 400 basis points Q2 FY2025 Non-GAAP Performance (YoY) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Adjusted Operating Margin | (0.4%) | (3.2%) | +280 bps | | Adjusted Gross Margin | 47.5% | 46.2% | +130 bps | | Adjusted EBITDA | $14M | $8M | +75% | | Adjusted EBITDA Margin | 10.0% | 6.0% | +400 bps | | Non-GAAP Diluted EPS | $0.05 | $0.06 | -16.7% | - Adjusted gross margin improved by **130 basis points** YoY, driven by higher revenue, favorable sales mix, and operational efficiencies[10](index=10&type=chunk) - Adjusted operating expenses increased **2%** YoY to **$69 million**, primarily due to higher selling, general, and administrative expenses, partially offset by lower R&D costs[10](index=10&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) Sample Management Solutions drove growth with 8% organic revenue increase, while Multiomics grew 3% led by Next Generation Sequencing - Sample Management Solutions organic revenue grew **8%** YoY, driven by higher revenues in Sample Repository Solutions and Core Products, especially in Consumables and Instruments, Sample Storage, Clinical Stores, and Product Services[7](index=7&type=chunk) - Multiomics organic revenue grew **3%** YoY, primarily due to growth in Next Generation Sequencing, partially offset by a year-over-year decline in Sanger Sequencing and Gene Synthesis[7](index=7&type=chunk) [Financial Position and Outlook](index=3&type=section&id=Financial%20Position%20and%20Outlook) The company maintains a strong liquidity position and reiterates its fiscal year 2025 guidance for organic revenue growth and adjusted EBITDA margin expansion [Cash and Liquidity](index=3&type=section&id=Cash%20and%20Liquidity) Azenta maintained a robust liquidity position with **$540 million** in cash and equivalents, generating **$14 million** in operating cash flow - The company ended the quarter with a total cash, cash equivalents, restricted cash, and marketable securities balance of **$540 million**[17](index=17&type=chunk) Q2 FY2025 Cash Flow Summary | Metric | Amount | | :--- | :--- | | Operating Cash Flow | $14M | | Capital Expenditures | $7M | | Free Cash Flow | $7M | [Fiscal Year 2025 Guidance](index=3&type=section&id=Fiscal%20Year%202025%20Guidance) Azenta reiterated its FY2025 guidance, projecting 3% to 5% organic revenue growth and approximately 300 basis points of adjusted EBITDA margin expansion - The company reiterated its guidance for fiscal year 2025[17](index=17&type=chunk) - Total organic revenue is expected to grow in the range of **3% to 5%** relative to fiscal 2024 - Adjusted EBITDA margin expansion is expected to be approximately **300 basis points** relative to fiscal 2024[17](index=17&type=chunk) - The company does not provide forward-looking guidance on a GAAP basis due to the inherent difficulty in accurately forecasting various adjusting items[11](index=11&type=chunk) [Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) This section provides the unaudited consolidated statements of operations, balance sheets, and cash flows for the specified periods [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Presents unaudited consolidated statements of operations for the three and six months ended March 31, 2025 and 2024, detailing revenues, costs, and net loss [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Provides unaudited consolidated balance sheets as of March 31, 2025 and September 30, 2024, outlining assets, liabilities, and stockholders' equity [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Contains unaudited consolidated statements of cash flows for the six months ended March 31, 2025 and 2024, showing cash flows from operating, investing, and financing activities [Non-GAAP Reconciliations](index=8&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations of GAAP financial measures to their non-GAAP counterparts, including net income, EBITDA, gross profit, and operating income [Reconciliation of GAAP to Non-GAAP Net Income](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Net%20Income) Provides detailed reconciliation of GAAP net loss from continuing operations to non-GAAP adjusted net income, including adjustments for amortization and restructuring [Reconciliation of GAAP Net Loss to Adjusted EBITDA](index=10&type=section&id=Reconciliation%20of%20GAAP%20Net%20Loss%20to%20Adjusted%20EBITDA) Reconciles GAAP net loss from continuing operations to Adjusted EBITDA, adjusting for stock-based compensation, restructuring, and non-recurring costs [Reconciliation of GAAP to Non-GAAP Gross Profit](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Gross%20Profit) Details reconciliation of GAAP gross profit to non-GAAP adjusted gross profit for the total company and by segment, primarily adjusting for amortization and transformation costs [Reconciliation of GAAP to Non-GAAP Operating Income (Loss) by Segment](index=13&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Operating%20Income%20(Loss)%20by%20Segment) Provides reconciliation of GAAP to non-GAAP operating income (loss) by segment, including adjustments for amortization, transformation, and restructuring charges [Reconciliation of GAAP to Organic Revenue](index=15&type=section&id=Reconciliation%20of%20GAAP%20to%20Organic%20Revenue) Presents reconciliation of reported GAAP revenue to organic revenue, showing currency exchange rate impact for both segments and the total company

Core Insights - The company reported a total revenue of $143 million for the quarter ended March 31, 2025, reflecting a 5% increase year-over-year, driven by growth in Sample Management Solutions and Multiomics [2][7] - The diluted EPS from continuing operations was $(0.40), compared to $(0.29) in the same quarter of the previous year, indicating a significant loss [2][24] - The company has a strong cash position with total cash, cash equivalents, and marketable securities amounting to $540 million as of March 31, 2025 [14] Financial Performance - Revenue from continuing operations was $143 million, down 3% from the previous quarter but up 5% year-over-year [2][7] - Organic revenue growth was 6% year-over-year, with Sample Management Solutions revenue at $80 million, up 8% year-over-year [2][7] - Adjusted EBITDA for continuing operations was $14 million, with an adjusted EBITDA margin of 10.0%, an improvement of 400 basis points year-over-year [2][7] Management Commentary - The CEO highlighted the company's strong performance amidst a challenging macroeconomic environment, emphasizing the resilience of the portfolio and the commitment of the teams [3] - The management expressed confidence in the company's positioning and disciplined operations while navigating uncertainties [3] Cash Flow and Guidance - Operating cash flow for the quarter was $14 million, with capital expenditures of $7 million, resulting in free cash flow of $7 million [14] - The company reiterated its revenue guidance for fiscal year 2025, expecting total organic revenue growth in the range of 3% to 5% compared to fiscal 2024 [14]

Company Overview - Azenta, Inc. (Nasdaq: AZTA) is a leading provider of life sciences solutions globally, facilitating faster market access for impactful breakthroughs and therapies [3] - The company offers a comprehensive range of reliable cold-chain sample management solutions and multiomics services, focusing on drug development, clinical research, and advanced cell therapies [3] - Azenta operates under several industry-leading brands, including GENEWIZ, FluidX, Ziath, 4titude, Limfinity, Freezer Pro, and Barkey [3] Financial Announcement - Azenta will announce its fiscal second quarter 2025 earnings on May 7, 2025, before the market opens, covering the period that ended on March 31, 2025 [1] - A conference call and live webcast to discuss the financial results will take place on the same day at 8:30 a.m. Eastern Time, accessible via the Azenta website [2] - A replay of the conference call will be available starting at 8:30 a.m. ET on May 8, 2025 [2] Operational Footprint - Azenta is headquartered in Burlington, Massachusetts, with operational presence in North America, Europe, and Asia [4]

Core Insights - Azenta, Inc. published its annual Environmental, Social, & Governance (ESG) report, emphasizing its commitment to ESG priorities and showcasing accomplishments for the fiscal year ending September 30, 2024 [1][2] ESG Achievements - The company achieved a ~20% reduction in Scope 1 & 2 Greenhouse Gas emissions (market-based) compared to 2022, while sourcing over 60% of its electricity from renewable sources [6] - Launched the BioArc™ Ultra product for large-scale, eco-friendly sample storage, advancing sustainable innovation [6] - Established the Azenta PRISM LGBTQIA+ Employee Resource Group (ERG) to promote inclusivity and support for a diverse workforce [6] - Rolled out the Azenta THRIVE platform to enhance employee well-being and engagement, providing access to professional training through LinkedIn Learning® [6] - Strengthened sustainable procurement efforts by training 100% of the global buyer team on sustainable sourcing and evaluating the ESG performance of over half of its Tier 1 suppliers by spend in partnership with EcoVadis® [6] Company Overview - Azenta, Inc. is a leading provider of life sciences solutions, facilitating faster market access for breakthroughs and therapies [3] - The company offers a comprehensive suite of cold-chain sample management solutions and multiomics services for pharmaceutical, biotech, academic, and healthcare institutions globally [3] - Azenta is headquartered in Burlington, MA, with operations across North America, Europe, and Asia [4]

Company Overview - Azenta, Inc. is a leading provider of life sciences solutions globally, facilitating the faster market introduction of impactful breakthroughs and therapies [2] - The company offers a comprehensive suite of reliable cold-chain sample management solutions and multiomics services, catering to drug development, clinical research, and advanced cell therapies [2] - Azenta operates under several industry-leading brands, including GENEWIZ, FluidX, Ziath, 4titude, Limfinity, Freezer Pro, and Barkey [2] Upcoming Events - Lawrence Y. Lin, Executive Vice President and Chief Financial Officer of Azenta, will participate in the Virtual KeyBanc Capital Markets Healthcare Forum on March 19, 2025, with a presentation starting at 10:30 am ET [1] - The live webcast of the event will be accessible through the Azenta investor relations website, and a replay will be available after the event [1] Global Presence - Azenta is headquartered in Burlington, Massachusetts, with operational reach across North America, Europe, and Asia [3]

Company Overview - Azenta, Inc. (AZTA) is currently experiencing significant activity in the options market, particularly with the Dec. 19, 2025 $22.5 Call option showing high implied volatility, indicating potential for a major price movement [1] - The company is ranked 2 (Buy) in the Medical Info Systems industry, which is in the top 22% of the Zacks Industry Rank [3] Analyst Insights - Over the past 60 days, one analyst has raised earnings estimates for the current quarter, increasing the Zacks Consensus Estimate from 8 cents per share to 9 cents [3] - The high implied volatility in options trading suggests that traders are anticipating a significant price movement for Azenta shares, which could indicate an upcoming event that may lead to a rally or sell-off [2][4] Trading Strategy - Options traders often seek out options with high implied volatility to sell premium, a strategy that captures decay and benefits if the underlying stock does not move as much as expected by expiration [4]