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 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]

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]