Azenta (AZTA) Q4 2025 earnings summary

Executive summary

• FY 2025 revenue was $594M, up 4% reported and 3% organic, with Q4 revenue at $159M, up 6% reported and 4% organic, driven by Multiomics.

• Adjusted EBITDA margin expanded by 310 basis points to 11.2% for FY 2025, reflecting operational excellence and productivity gains.

• Management executed organizational restructuring to a decentralized, agile model, emphasizing cost discipline and innovation reinvestment.

• Free cash flow for FY 2025 was $38M, with a strong balance sheet and no debt.

• One-time $45.6M tax benefit from a worthless stock deduction recognized in Q4.

Financial highlights

• Q4 non-GAAP EPS was $0.21; full-year non-GAAP EPS was $0.51; diluted EPS from continuing operations was $0.52 for FY 2025.

• Adjusted EBITDA was $21M (13% margin) in Q4 and $66M (11.2% margin) for FY 2025.

• Gross profit margin improved to 46.9% in FY 2025; Q4 adjusted gross margin was 46.7%.

• Free cash flow for FY 2025 was $38M; Q4 free cash flow usage was $6M.

• Ended FY 2025 with $546M in cash, cash equivalents, and marketable securities, and no debt.

Outlook and guidance

• FY 2026 organic revenue growth expected at 3%-5%; Multiomics to deliver low single-digit growth, SMS mid-single-digit growth.

• Adjusted EBITDA margin targeted to expand by approximately 300 basis points year-over-year in FY 2026.

• Free cash flow generation expected to improve by over 30% year-over-year.

• Q1 FY 2026 revenue expected to decline 1%-2% year-over-year due to macro slowdown and government funding delays.

• EPS expected to exceed $0.50 for FY 2026; interest income guidance $16M-$18M, tax rate 27%-29%.