Azenta (AZTA) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 12% year-over-year to $161 million, with 9% organic growth, driven by Sample Management Solutions and Multiomics, notably in Europe and China, and supported by the UK Biocentre acquisition and favorable currency movements.

• Adjusted EBITDA margin was 11.4%, down 60 basis points year-over-year but up 610 basis points sequentially; adjusted EBITDA was $18.4–$18.5 million.

• Gross margin declined to 44.9–46.2% due to lower fixed-cost absorption, quality remediation, and higher rework costs in Automated Stores.

• The divestiture of B Medical Systems was completed for $63 million, with $28 million in cash and a $35 million vendor loan; results are reported as discontinued operations.

• Over half of revenue is now recurring, providing greater business stability.

Financial highlights

• Q3 revenue was $161–$161.2 million, up 12% reported and 9% organic year-over-year; nine-month revenue was $454.6 million, up 4.6%.

• Adjusted EBITDA was $18.4–$18.5 million; non-GAAP EPS was $0.16; net income from continuing operations was $7.2 million.

• Gross margin was 44.9–46.2%, down 130–140 basis points year-over-year.

• Free cash flow was negative $5 million for the quarter, impacted by working capital and lower deferred revenue.

• Ended the quarter with $528.5–$529 million in cash, cash equivalents, and marketable securities, and no debt.

Outlook and guidance

• FY26 revenue guidance raised to $613–$618 million, with organic revenue expected to be flat to up 1% year-over-year.

• Adjusted EBITDA for FY26 expected between $59–$62 million, including margin dilution from UK Biocentre.

• Q4 organic revenue expected to decline low single digits due to tough prior-year comparison, especially in Multiomics.

• Full-year free cash flow expected to improve 10–15% year-over-year.

• Multiomics organic revenue now expected to be down 1% to flat for the year.