Azenta — Fiscal 2026 Earnings Summary

Financial Performance:

• Q4 2026 revenue from continuing operations was $167 million, up 5% year over year, with organic growth of 2%.
• Full year 2026 revenue from continuing operations was $622 million, up 5% year over year, with organic growth of 2%.
• Q4 2026 diluted EPS from continuing operations was $0.14, compared to $1.12 in Q4 2025; total diluted EPS was $0.16.
• Full year 2026 diluted EPS from continuing operations was $(3.50), compared to $0.53 in 2025; total diluted EPS was $(3.70).
• Q4 2026 adjusted diluted EPS from continuing operations was $0.28, up 33% year over year.
• Full year 2026 adjusted diluted EPS from continuing operations was $0.48, down 6% year over year.
• Q4 2026 adjusted EBITDA from continuing operations was $19.4 million (margin 11.6%), down 7% year over year.
• Full year 2026 adjusted EBITDA from continuing operations was $58.3 million (margin 9.4%), down 12% year over year.
• Q4 2026 gross margin was 46.0%, an increase of 60 basis points year over year.
• Full year 2026 gross margin was 44.2%, a decrease of 130 basis points year over year.
• Q4 2026 operating cash flow was $22 million; full year operating cash flow was $58 million.
• Full year 2026 free cash flow was $27 million (operating cash flow of $58 million less capital expenditures of $30 million).
• As of September 30, 2026, the company held $506 million in cash, cash equivalents, restricted cash, and marketable securities.
• Deferred revenue was $40.1 million as of September 30, 2026, up from $31.6 million in 2025.

Guidance and Future Outlook:

• Full year 2027 revenue is expected to range from $648 million to $660 million.
• Full year 2027 organic revenue growth is expected to range between 3% and 5% year over year.
• Full year 2027 adjusted EBITDA margin is expected to expand approximately 200 to 250 basis points year over year.
• Full year 2027 free cash flow is expected to improve approximately 25% relative to fiscal 2026.
• First quarter 2027 organic revenue growth is expected to range between 3% and 4% relative to Q1 2026.
• First quarter 2027 adjusted EBITDA margin is expected to expand by approximately 100 to 150 basis points relative to Q1 2026.
• Organic revenue for Sample Management Solutions in 2027 is expected to grow mid-single-digits.
• Organic revenue for Multiomics in 2027 is expected to grow low-single-digits.
• The high end of the 2027 revenue outlook includes potential contributions from the Elegen and SynPlexity acquisitions.

Business Segments and Product Lines:

• Sample Management Solutions revenue was $94 million in Q4 2026 (up 9% YoY) and $344 million for the full year (up 6% YoY).
• Sample Management Solutions organic revenue grew 4% in Q4 2026 and 2% for the full year, driven by Sample Repository Services and Consumables and Instruments, partially offset by lower Automated Stores revenue.
• Multiomics revenue was $73 million in Q4 2026 (flat YoY) and $277 million for the full year (up 3% YoY).
• Multiomics organic revenue declined 1% in Q4 2026 and grew 1% for the full year, driven by growth in Gene Synthesis and Next Generation Sequencing, partially offset by lower Sanger Sequencing revenue.
• The company acquired SynPlexity Inc. on October 28, 2026, for a base price of $15.0 million, with contingent consideration of up to $10.0 million, to expand gene synthesis capabilities.
• The company entered into agreements with Elegen Corp. on October 28, 2026, to expand gene synthesis capabilities, with aggregate capital deployment expected between $32.0 million and $71.0 million.

Market and Competitive Landscape:

• Management stated the company has strong market positions and differentiated capabilities.
• The company is seeing progress in improving commercial execution and operating efficiency.
• Fiscal 2027 is characterized as a year of integration, scale-up, and commercialization of new capabilities.

Risks and Challenges:

• Full year 2026 operating loss was $174.7 million, driven by a non-cash goodwill impairment charge of $149 million.
• Full year 2026 gross margin decline was driven by unfavorable fixed-cost absorption, quality remediation and rework activities in Automated Stores, and increased excess and obsolete inventory reserves.
• Forward-looking statements involve risks including the ability to achieve fiscal 2027 outlook, successful integration of strategic investments, future capital deployment obligations, and macroeconomic or regulatory developments.

Management Commentary and Tone:

• Dr. Martin Madaus, Interim President and CEO, stated the company closed fiscal 2026 with improving momentum and stronger performance in the second half of the year.
• Management noted taking actions to streamline cost structure while advancing the strategic objective to turn Multiomics into a growth engine.
• Management emphasized fiscal 2027 will focus on consistent execution, accelerating performance, driving organic growth, and expanding profitability and cash generation.

Other Key Points:

• B Medical Systems was reported as discontinued operations; the business was sold on July 1, 2026, and the company received full repayment of a $35 million vendor loan plus accrued interest on September 3, 2026.
• The Board approved a share repurchase program on December 8, 2025, authorizing up to $250 million of common stock through December 31, 2028.
• During fiscal 2026, the company repurchased 4.4 million shares for $118.2 million; $131.8 million remained available as of September 30, 2026.
• Full year 2026 operating expenses increased 51% year over year, primarily driven by the $149 million goodwill impairment charge.
• The company recognized a $3.9 million non-cash gain from the settlement of a preexisting contractual relationship with UK Biocentre Limited in the second quarter of fiscal 2026.