Azenta (AZTA) Q1 2025 earnings summary

Executive summary

• Revenue grew 4% year-over-year in Q1 2025 to $148 million, driven by gains in both Sample Management Solutions (SMS) and Multiomics segments, with SMS up 2%–3% organically and Multiomics up 6% organically.

• Adjusted EBITDA margin expanded by 400 basis points year-over-year to 9.0%, with adjusted EBITDA nearly doubling to $13 million and non-GAAP EPS at $0.08.

• B Medical Systems is now reported as discontinued operations, with the sale process underway to simplify the portfolio.

• Free cash flow was $22 million, and the company ended the quarter with $530 million in cash, cash equivalents, and marketable securities, with no debt outstanding.

• Strategic focus areas include portfolio optimization, operational excellence, and value-enhancing capital allocation.

Financial highlights

• Q1 2025 revenue was $148 million, up 4% year-over-year on both reported and organic basis, with gross profit increasing to $70 million and gross margin improving to 47.6%.

• Adjusted EBITDA margin reached 9%, and non-GAAP EPS was $0.08 for the quarter.

• Free cash flow was $22 million, with cash flow from operations at $30 million.

• Ended the quarter with $530 million in cash, cash equivalents, and marketable securities; no debt outstanding.

• Non-GAAP gross margin was 47.6%, up 270 basis points year-over-year.

Outlook and guidance

• Reiterated full-year 2025 guidance: organic revenue growth of 3%-5% and adjusted EBITDA margin expansion of 300 basis points.

• Multiomics expected to grow low single digits; SMS to grow mid-single digits.

• 75% of 2025 revenue is already secured through backlog and pipeline.

• Interest income expected at $16M–$18M, with a tax rate of 27%–29%.

• Management expects to enter a definitive agreement to sell B Medical Systems by November 2025.