Azenta (AZTA) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was $149 million, up 1% year-over-year, with organic revenue down 1% due to flat Multiomics and lower Sample Management Solutions.

• Free cash flow was $15 million, and cash and equivalents ended at $571 million, with no debt.

• Turnaround and operational initiatives are progressing, with acceleration expected in the second half of fiscal 2026.

• Sale of B Medical Systems for $63 million announced, with $9 million deposit received and closing expected by March 31, 2026.

• Net loss from continuing operations improved year-over-year, with a $10 million non-cash loss on assets held for sale.

Financial highlights

• Gross margin was 44.1%, down 360 basis points year-over-year, mainly due to underutilized lab capacity and rework costs.

• Adjusted EBITDA was $13 million (8.5% margin), down 230 basis points year-over-year.

• Non-GAAP EPS was $0.09, compared to $0.12 a year ago.

• Operating expenses declined year-over-year, driven by lower SG&A, partially offset by higher R&D.

• Free cash flow was $15 million, with capital expenditures of $6 million.

Outlook and guidance

• Fiscal 2026 guidance reaffirmed: 3%-5% organic revenue growth and ~300 basis points adjusted EBITDA margin expansion.

• Second half of fiscal 2026 expected to accelerate as commercial investments and growth initiatives gain traction.

• Multiomics projected for low single-digit growth; Sample Management Solutions for mid-single-digit growth.

• Over 30% year-over-year improvement in free cash flow anticipated.

• Interest income guidance of $16M–$18M and tax rate of 27%–29%.