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 significant net and operating loss.

• Leadership changes and organizational redesign are underway, with a focus on operational rigor and commercial discipline.

• The acquisition of UK Biocentre expanded European presence and biorepository capabilities.

Financial highlights

• Total revenue was $145 million for the quarter, up 1% year-over-year, but down 3% organically.

• Gross margin was 44.3%, down 110 basis points year-over-year; adjusted gross margin was 43.8%.

• Operating loss was $165.8 million, driven by the goodwill impairment.

• Free cash flow was $5 million; cash and equivalents at quarter-end totaled $565 million, with no debt.

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

Outlook and guidance

• FY2026 total 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 decline by up to 125 basis points or remain flat year-over-year.

• Free cash flow improvement now expected at 10–15% year-over-year, down from prior 30% guidance.

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

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