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

Core Insights - The company reported a revenue of $149 million for the quarter ended December 31, 2025, reflecting a 1% increase year-over-year, while organic revenue declined by 1% [6][7] - The company is in the process of selling its B Medical Systems business for $63 million, with the transaction expected to close on or before March 31, 2026 [5][6] - The company has initiated a share repurchase program authorizing the repurchase of up to $250 million of its common stock through December 31, 2028 [4][6] Financial Performance - Revenue from continuing operations was $149 million, with a diluted EPS from continuing operations of ($0.11), compared to ($0.16) in the prior year [2][6] - Adjusted EBITDA for continuing operations was $13 million, with an adjusted EBITDA margin of 8.5%, a decrease of 230 basis points year-over-year [6][7] - Operating loss was $7.2 million, with an operating margin of (4.9%), which improved by 100 basis points year-over-year [6][7] Segment Performance - Sample Management Solutions revenue was $81 million, flat year-over-year, while Multiomics revenue was $67 million, also reflecting a 1% increase year-over-year [6][7] - Organic revenue in Sample Management Solutions declined by 2%, primarily due to lower revenues in Core Products [6][7] - Multiomics organic revenue was flat year-over-year, driven by growth in Next Generation Sequencing and Gene Synthesis, offset by a decline in Sanger Sequencing [6][7] Management Commentary - The CEO emphasized the company's commitment to operational discipline and working capital management, while acknowledging challenges in gross margins [3][6] - The management remains optimistic about achieving fiscal 2026 objectives and expects a stronger second half of the year [3][6] Guidance - The company reiterated its guidance for fiscal year 2026, expecting total organic revenue growth in the range of 3% to 5% relative to fiscal 2025 [7][8] - Adjusted EBITDA margin expansion is anticipated to be approximately 300 basis points compared to fiscal 2025 [7][8]