Financial Data and Key Metrics Changes - Total revenue for Q1 2026 was $149 million, up 1% reported but down 1% organically, with a 2% headwind from foreign exchange [16][18] - Non-GAAP EPS for the first quarter was $0.09, and adjusted EBITDA margin was 8.5%, down approximately 230 basis points year-over-year [17][19] - Free cash flow, including B Medical, was $15 million for the quarter, with cash, cash equivalents, and marketable securities totaling $571 million, an increase of $25 million quarter-over-quarter [17][18] Business Line Data and Key Metrics Changes - In Sample Management Solutions, revenue was $81 million, flat on a reported basis and down 2% organically, with growth in biorepositories offset by softness in automated stores [20] - Multiomics revenue was $67 million, up 1% on a reported basis and flat organically, with growth in next-generation sequencing and gene synthesis, but continued weakness in Sanger sequencing [21][22] Market Data and Key Metrics Changes - North America experienced softness due to macro-driven budget constraints and a government shutdown, while Europe and Asia showed positive momentum [9][22] - China reported 26% organic growth in Multiomics, driven by strong demand in biotech and pharma [22][76] Company Strategy and Development Direction - The company aims to embed operational excellence, accelerate growth, and expand margins as part of its turnaround strategy [8][10] - Focus on core portfolio and strategic capital deployment, including a $250 million share repurchase authorization [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about improvement in capital markets and government funding, expecting greater clarity in the coming months [9][10] - 2026 is viewed as a transitional year for the life sciences sector, with expectations for acceleration in the second half of the year [10][23] Other Important Information - The sale of B Medical Systems is expected to close on or before March 31, 2026, further sharpening the company's focus on its core portfolio [12][16] - The company is committed to maintaining financial flexibility to support disciplined capital deployment [18] Q&A Session Questions and Answers Question: Can you talk about your level of confidence in getting the SMS margins back to where you want them to be? - Management acknowledged challenges due to product mix and quality issues but reiterated confidence in achieving margin targets through operational improvements [25][26] Question: Can you characterize the conversations you've had with customers in the academic and government segments? - Management reported positive conversations and momentum in North America, indicating a bullish outlook for the back half of the year [32][33] Question: What are your expectations for top-line performance in Q2 and the cadence from Q2 to Q3? - Management indicated an uplift in Q2 revenue but emphasized that significant growth is expected in the second half of the year [40][41] Question: How are you thinking about performance in the U.S. academic market given flat NIH budgets? - Management noted a shift in funding priorities and expressed confidence in supporting core labs and driving productivity [46][47] Question: What are you seeing from pharma and biotech customers right now? - Management observed more clarity and commitment from pharma and biotech customers, indicating a positive sentiment moving forward [48][49] Question: Where do you think you can find some of the offset to achieve the 300 basis point expansion? - Management highlighted several levers, including increased sales volume and operational efficiencies, to achieve margin expansion [51][53]

Financial Data and Key Metrics Changes - In Q3 2025, total revenue was $144 million, flat year over year on a reported basis and down 2% on an organic basis [17][19] - Adjusted EBITDA margin expanded by approximately 260 basis points year over year to 12.3%, reflecting operational turnaround efforts [9][18] - Free cash flow for the quarter was $15 million, driven primarily by improved working capital [18] Business Line Data and Key Metrics Changes - Sample Management Solutions (SMS) revenue was $78 million, down 4% year over year on a reported basis and down 6% on an organic basis, primarily due to softer bookings and timing delays [20] - Multiomics segment delivered revenue of $66 million, up 4% on a reported basis and up 3% on an organic basis, driven by growth in next-generation sequencing [21][22] - Non-GAAP gross margin for SMS was 53.6%, up 760 basis points year over year, while Multiomics gross margin was 42.6%, down approximately 500 basis points year over year [20][23] Market Data and Key Metrics Changes - China posted 10% organic growth in the Multiomics segment despite macro and geopolitical headwinds [22] - The company anticipates a 1% headwind to full year 2025 revenue due to reductions in NIH funding levels [10][90] Company Strategy and Development Direction - The company is focused on long-term value creation and operational turnaround, with key growth priorities including strengthening commercial excellence and investing in R&D [6][7] - The Azenta Business System (ABS) is being leveraged to enhance operational efficiency and drive growth [8][68] - The company plans to prioritize investments in gross margin productivity, organic growth offerings, and strategic M&A opportunities [12] Management's Comments on Operating Environment and Future Outlook - Management remains committed to full year 2025 guidance of organic revenue growth between 3% to 5% and adjusted EBITDA margin expansion of 300 basis points [9][25] - The company is optimistic about capitalizing on opportunities arising from the current dynamic environment [11] - Management noted that the operational improvements have allowed them to reaffirm guidance despite external challenges [11] Other Important Information - The company ended the quarter with $550 million in cash and no outstanding debt, positioning it well for future investments [12][24] - An Investor Day is planned for later in the calendar year to discuss achievements and outlook [13] Q&A Session Summary Question: Guidance for fiscal 2025 and thoughts on fiscal 2026 - Management indicated confidence in a step-up in Q4 due to momentum in NGS and sufficient backlog, with a commitment to 5% to 8% CAGR for fiscal 2026 [29][34] Question: Weakness in SMS core products - Management clarified that there are no cancellations, but orders are being pushed out due to capital equipment purchase delays [35][36] Question: Gene synthesis headwinds - Management noted softness in gene synthesis from pharma accounts but expects improvements in Q4 [39][40] Question: Q4 revenue expectations - Management highlighted a seasonal step-up from Q3 to Q4 and strong funnel visibility, indicating confidence in achieving revenue targets [44][46] Question: Leadership changes impact - Management discussed new commercial leadership in North America and positive early signs from the regional model [48][50] Question: M&A funnel focus - Management emphasized a disciplined approach to M&A, focusing on core biorepositories and multiomics opportunities [52][54] Question: NIH funding headwinds - Management maintained a consistent view on NIH funding as a 1% headwind but expressed optimism about potential increases in funding [89][90]