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 for the quarter was $15 million, 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 (SMS), revenue was $81 million, flat on a reported basis and down 2% organically, with growth in Biorepositories offset by declines in Automated Stores and Cryo [20][21] - Multiomics revenue was $67 million, up 1% reported 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 showed softness due to macro-driven budget constraints and a government shutdown, while Europe and Asia performed strongly, particularly with China showing 26% organic growth [22][74] - The overall market conditions remain mixed, with cautious capital spending decisions impacting bookings [9][10] 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] - The company is committed to a full-year 2026 guidance of 3%-5% organic revenue growth and adjusted EBITDA margin expansion of approximately 300 basis points [15][23] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about improvements in capital markets and M&A activity, expecting greater clarity around government and academic funding [9][10] - The company anticipates a transitional year for the life sciences sector, with expectations for acceleration in the second half of 2026 as delayed approvals are processed [10][15] 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 addressing quality issues in Automated Stores, with remediation efforts expected to be completed by the end of Q2 [21][63] Q&A Session Summary Question: Can you talk about your level of confidence in getting the SMS margins back to where you want them to be? - Management acknowledged margin headwinds due to product and geographic mix but reiterated confidence in achieving guidance for the full year [25][28] 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, with expectations for improvement in the back half of the year [32][33] Question: Can you talk about the level of comfort or visibility into key drivers for the second-half ramp? - Management expressed confidence in North America coming back, with growth investments in R&D and innovation expected to drive performance [36][37] Question: How are you thinking about performance in the U.S. academic market given flat NIH budgets? - Management noted a shift in funding towards larger projects and expressed optimism about supporting those programs [46][47] Question: What are you seeing from pharma and biotech customers right now? - Management indicated more clarity in the pharma and biotech markets, with ongoing investments and positive sentiment from customers [48][49] Question: Can you provide insight into the extra costs impacting gross margin? - Management detailed specific costs related to quality issues and lab inefficiencies, while emphasizing ongoing efforts to optimize margins [51][53]

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 [14][16] - 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 [15][17] - Free cash flow for the quarter was $15 million, with cash, cash equivalents, and marketable securities totaling $571 million, an increase of $25 million quarter-over-quarter [15][16] 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 declines in automated stores and cryo [18][19] - Multiomics revenue was $67 million, up 1% on a reported basis and flat organically, with growth in next-generation sequencing and gene synthesis, but weakness in Sanger sequencing [19][20] - Gross margin for Sample Management Solutions was 45.4%, down 370 basis points year-over-year, primarily due to higher rework costs on automated stores projects [19] Market Data and Key Metrics Changes - Positive momentum was observed in Europe, while North America remained slow, impacted by macroeconomic conditions and a government shutdown [6][8] - China showed strong performance with 26% organic growth in Multiomics, driven by demand in biotech and pharma [20][77] - The overall market conditions are mixed, with cautious capital spending decisions across parts of the life sciences ecosystem [6][8] Company Strategy and Development Direction - The company aims to embed operational excellence, accelerate growth, and expand margins as part of its strategic priorities for 2026 [6][11] - A definitive agreement for the sale of B Medical was announced, expected to close by March 31, 2026, which will sharpen focus on core portfolio and enhance financial flexibility [11][14] - The company is committed to disciplined capital deployment and has a $250 million share repurchase authorization to return value to shareholders [11][16] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about improvements in capital markets and renewed M&A activity, expecting greater clarity around government and academic funding [6][8] - The company anticipates acceleration in the second half of 2026 as delayed approvals are processed and capital investment ramps up [9][13] - Management remains confident in achieving full-year guidance of 3%-5% organic revenue growth and adjusted EBITDA margin expansion of approximately 300 basis points [13][22] Other Important Information - The company continues to focus on operational improvements through the Azenta Business System, which drives measurable improvements in delivery, quality, and productivity [10] - The company is addressing quality issues in automated stores, with remediation efforts expected to be completed by the end of Q2 [19][64] Q&A Session Summary Question: Can you discuss your confidence in getting SMS margins back to desired levels? - Management acknowledged product mix and geo mix causing margin headwinds but expressed confidence in addressing these issues and reiterated guidance for the full year [24][25] Question: What are your expectations for top-line performance in Q2? - Management indicated that while they do not guide quarterly, they expect an uplift in revenue compared to Q1, with significant growth anticipated in the second half of the year [41][42] Question: How are you addressing the quality issues in automated stores? - Management detailed efforts to resolve quality issues and emphasized structural alignment to better serve customers, indicating that they are on track to meet customer needs [64][66] Question: What is the outlook for growth in the pharma and biotech sectors? - Management noted increased clarity and confidence in the pharma and biotech sectors, with ongoing investments and positive conversations with customers [49][50]

Financial Data and Key Metrics Changes - In Q4 2025, revenue was $159 million, up 6% year-over-year and up 4% organically, with full-year revenue at $594 million, reflecting a 4% increase on a reported basis and 3% organic growth [14][15][16] - Non-GAAP EPS for Q4 was $0.21 and $0.51 for the full year, with adjusted EBITDA margin at 13% for Q4 and 11.2% for the full year, representing an expansion of approximately 230 basis points in Q4 and 310 basis points for the full year [14][15][16] - Free cash flow for the full year was $38 million, a notable improvement of $26 million year-over-year, with $546 million in cash, cash equivalents, and marketable securities at year-end [15][20] Business Line Data and Key Metrics Changes - Sample Management Solutions (SMS) revenue was $86 million for Q4, up 2% reported and flat organically, with a non-GAAP gross margin of 49.3%, up 180 basis points year-over-year [17] - Multi-Omix segment delivered record revenue of $73 million in Q4, representing 11% growth on a reported basis and 10% organic growth, driven by a 50% year-over-year increase in sequencing volume [18][19] Market Data and Key Metrics Changes - The macro environment remains volatile, with softer academic and NIH funding impacting growth, particularly in the U.S. market [9][10] - The company anticipates core revenue growth between 3%-5% for fiscal 2026, with expected adjusted EBITDA margin expansion of 300 basis points [11][21] Company Strategy and Development Direction - The company has implemented the Azenta Business System (ABS) to enhance operational efficiency and accountability, focusing on driving productivity, organic growth, and targeted M&A [8][10] - The strategic focus includes reinvesting savings into innovation, sales, marketing, and product management, with a commitment to value creation and operational excellence [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and capitalizing on opportunities arising from customer consolidation and outsourcing trends [9][10] - The company is entering fiscal 2026 from a position of strength, with a clear focus on delivering core growth and margin expansion [11][22] Other Important Information - The results exclude B Medical Systems, which is treated as discontinued operations, with an additional non-cash loss of $4 million recorded in Q4 [13] - The company plans to host an Investor Day to outline its multi-year growth strategy and capital deployment priorities [11][22] Q&A Session Summary Question: Guidance on growth and market conditions - Management noted that the market is expected to grow at 1%-2%, with a focus on delivering results for the full year despite a challenging first half due to capital expenditure slowdowns and government funding impacts [25][26][28] Question: Update on SMS growth and backlog - Management expressed confidence in mid-single-digit growth for SMS, supported by a strong backlog and new leadership driving commercial initiatives [29][30] Question: Insights on customer bases and macro conditions - Management highlighted strength in the pharma sector, with ongoing clarity around projects, while noting some delays in academic and government spending due to the recent government shutdown [39][40] Question: Expectations for M&A and market growth - The company is focused on tuck-in acquisitions to expand its core business, particularly in SRS and automated solutions, with a bullish outlook for 2026 [70][71] Question: Performance expectations for automated stores - Management indicated that while the automated stores segment is currently experiencing low single-digit growth, investments in R&D are expected to yield positive results in the long term [72][73]