Azenta (AZTA) Q2 2026 earnings summary

Executive summary

• Q2 revenue was $145 million, up 1% year-over-year, but organic revenue declined 3% due to softness in Multiomics and Sample Management Solutions, especially in North America.

• Adjusted EBITDA margin was 5.4%, down 320 basis points year-over-year, with non-GAAP EPS at $(0.04).

• A $149 million non-cash goodwill impairment charge, primarily in Multiomics and SMS, drove a net loss of $160.8 million and a significant operating loss.

• Leadership and operational changes are underway, and the long-range plan timeline was extended to 2029.

• The UK Biocentre acquisition was completed, expanding European presence and biorepository capabilities.

Financial highlights

• Total reported revenue was $145 million for the quarter, up 1% year-over-year; gross margin was 44.3%, down 110 basis points.

• Operating loss reached $165.8 million, mainly due to the goodwill impairment.

• Free cash flow was $5 million; cash and equivalents totaled $565 million with no debt.

• Non-GAAP diluted EPS was $(0.04); basic and diluted net loss per share was $(3.49).

• CapEx was $7 million for the quarter.

Outlook and guidance

• FY2026 reported revenue expected between $603–$621 million, with organic growth forecasted from down 2% to up 1% year-over-year.

• Adjusted EBITDA margin expected to be down up to 125 basis points or flat year-over-year.

• Free cash flow growth now expected at 10–15% year-over-year, down from 30% previously.

• Long-range plan targets extended to 2029, reflecting revised execution timeline.

• Management expects to fund operations and capital expenditures for at least one year with current liquidity.