Azenta Reports Second Quarter Results for Fiscal 2025, Ended March 31, 2025

BURLINGTON, Mass., May 7, 2025 /PRNewswire/ -- Azenta, Inc. (Nasdaq: AZTA) today reported financial results for the second quarter ended March 31, 2025.

The results of B Medical Systems are treated as discontinued operations and reflected in total diluted EPS, following the Company's announcement in the first fiscal quarter of 2025 of its intention to pursue a sale. Quarter Ended  Dollars in millions, except per share data  March 31,   December 31,   March 31,   Change  2025   2024   2024   Prior Qtr   Prior Yr.  Revenue from Continuing Operations  $ 143   $ 148   $ 136    (3) %   5 % Organic growth                   6 % Sample Management Solutions  $ 80   $ 81   $ 74    (2) %   8 % Multiomics  $ 64   $ 66   $ 62    (4) %   2 %  Diluted EPS Continuing Operations  $ (0.40)   $ (0.21)   $ (0.29)    (93) %   (36) % Diluted EPS Total  $ (0.88)   $ (0.29)   $ (2.47)    NM    64 %  Non-GAAP Diluted EPS Continuing Operations  $ 0.05   $ 0.08   $ 0.06    (43) %   (23) % Adjusted EBITDA - Continuing Operations  $ 14   $ 13   $ 8    7 %   75 % Adjusted EBITDA Margin - Continuing Operations   10.0 %   9.0 %   6.0 %

Management Comments

"We delivered another quarter of strong performance in an evolving and uncertain macroeconomic environment. Our performance in the second quarter and first half of our fiscal year demonstrates the resilience of our portfolio and the dedication of our teams that focus on our customers with our clearly differentiated products and services," said John Marotta, President and CEO. "We have a healthy balance sheet, and strong cash position, which provides optionality to continue investing in our long-term growth plans while maintaining our continued disciplined in capital deployment. We remain confident in our positioning and disciplined in how we operate the business while navigating these uncertain times."

Second Quarter Fiscal 2025 Results - Continuing Operations

Revenue was $143 million, up 5% year over year. Organic revenue, which excludes the impact from foreign exchange, was up 6% year over year. The year-over-year revenue increase was attributable to higher Sample Management Solutions and Multiomics revenues. Sample Management Solutions revenue was $80 million, up 8% year over year.

Organic revenue grew 8%, mainly driven by higher revenues in Sample Repository Solutions and Core Products, particularly in Consumables and Instruments, Sample Storage, Clinical Stores and Product Services. Multiomics revenue was $64 million, up 2% year over year.

Organic revenue grew 3% year over year, primarily driven by growth in Next Generation Sequencing, partially offset by a year-over-year decline in Sanger Sequencing and Gene Synthesis.

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Summary of GAAP Earnings Results - Continuing Operations

Operating loss was $16 million. Operating margin was (11.3%), up 650 basis points year over year.

Gross margin was 45.9%, up 140 basis points year over year, mainly driven by higher revenue, favorable sales mix and operational efficiencies. Operating expenses were $82 million, down 3% year over year, primarily due to lower research and development expense and the impact of non-recurring intangible asset impairment charges recorded in the same period last year. These were partially offset by higher selling, general and administrative expenses, as well as increased restructuring and transformation charges. Other income included $4 million of net interest income versus $9.5 million in the prior year period. Diluted EPS from continuing operations was ($0.40) compared to ($0.29) in the second quarter of fiscal year 2024. Diluted EPS from discontinued operations was ($0.49). Total diluted EPS was ($0.88), compared to ($2.47) a year ago.

Summary of Non-GAAP Earnings Results - Continuing Operations

Adjusted operating loss was $0.6 million. Adjusted operating margin was (0.4%), an improvement of 280 basis points year over year.

Adjusted gross margin was 47.5%, up 130 basis points compared to the second quarter of fiscal 2024, primarily driven by higher revenue, favorable sales mix and operating efficiencies. Adjusted operating expense in the quarter was $69 million, up 2% year over year, primarily driven by higher selling, general and administrative expenses, partially offset by lower research and development costs. Adjusted EBITDA was $14 million, and Adjusted EBITDA margin was 10.0%, an improvement of 400 basis points year over year. Non-GAAP Diluted EPS was $0.05, compared to $0.06 one year ago.

Cash and Liquidity as of March 31, 2025

The Company ended the quarter with a total balance of cash, cash equivalents, restricted cash and marketable securities of $540 million, which includes $27 million of cash held in discontinued operations. Operating cash flow was $14 million in the quarter. Capital expenditures were $7 million, and free cash flow (cash flow from operations less capital expenditures) was $7 million.

Guidance for Continuing Operations for Full Year Fiscal 2025

The Company is reiterating its revenue guidance for fiscal year 2025:

Total organic revenue is expected to grow in the range of 3% to 5% relative to fiscal 2024. Adjusted EBITDA margin expansion is expected to be approximately 300 basis points relative to fiscal 2024.

Azenta does not provide forward-looking guidance on a GAAP basis for the measures on which it provides forward-looking non-GAAP guidance as the Company is unable to provide a quantitative reconciliation of forward-looking non-GAAP measures to the most directly comparable forward-looking GAAP measure, without unreasonable effort, because of the inherent difficulty in accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliations that have not yet occurred, are dependent on various factors, are out of the company's control, or cannot be reasonably predicted. Such adjustments include, but are not limited to, transformation costs, restructuring charges, costs related to acquisitions and divestitures costs, governance-related matters, goodwill and intangible impairments, and other gains and charges that are not representative of the normal operations of the business.

Conference Call and Webcast

Azenta management will webcast its second quarter fiscal 2025 earnings conference call today at 8:30 a.m. Eastern Time. During the call, Company management will respond to questions concerning, but not limited to, the Company's financial performance, business conditions and industry outlook. Management's responses could contain information that has not been previously disclosed.

The call will be broadcast live over the Internet and, together with presentation materials referenced on the call, will be hosted at the Investor Relations section of Azenta's website at https://investors.azenta.com/events and will be archived online on this website for convenient on-demand replay.

Regulation G – Use of Non-GAAP financial Measures

The Company supplements its GAAP financial measures with certain non-GAAP financial measures to provide investors a better perspective on the results of business operations, which the Company believes is more comparable to the similar analyses provided by its peers. These measures are not presented in accordance with, nor are they a substitute for, U.S. generally accepted accounting principles, or GAAP. These measures should always be considered in conjunction with appropriate GAAP measures. A reconciliation of non-GAAP measures to the most nearly comparable GAAP measures is included at the end of this release following the consolidated balance sheets and statements of operations. Certain amounts in the tables that supplement the consolidated financial statements may not sum due to rounding. All percentages are calculated using unrounded amounts.

"Safe Harbor Statement" under Section 21E of the Securities Exchange Act of 1934

Some statements in this release are forward-looking statements made under Section 21E of the Securities Exchange Act of 1934. These statements are neither promises nor guarantees but involve risks and uncertainties, both known and unknown, that could cause Azenta's financial and business results to differ materially from our expectations. They are based on the facts known to management at the time they are made. Forward-looking statements include but are not limited to statements about our revenue and earnings expectations, our ability to realize margin improvement from cost reductions, and our ability to deliver financial success in the future and otherwise related to future operating or financial performance and opportunities. Factors that could cause results to differ from our expectations include the following: uncertainties in global political and economic conditions, including the imposition of additional tariffs on goods imported into the US, our ability to reduce costs effectively; the volatility of the life sciences markets the Company serves; our possible inability to meet demand for our products due to difficulties in obtaining components and materials from our suppliers in required quantities and of required quality; the inability of customers to make payments to us when due; price competition; disputes concerning intellectual property; and other factors and other risks, including those that we have described in our filings with the Securities and Exchange Commission, including but not limited to our Annual Report on Form 10-K, Current Reports on Form 8-K and our Quarterly Reports on Form 10-Q. As a result, we can provide no assurance that our future results will not be materially different from those projected. Azenta expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in our expectations or any change in events, conditions, or circumstance on which any such statement is based. Azenta undertakes no obligation to update the information contained in this press release.

About Azenta Life Sciences

Azenta, Inc. (Nasdaq: AZTA) is a leading provider of life sciences solutions worldwide, enabling impactful breakthroughs and therapies to market faster. Azenta provides a full suite of reliable cold-chain sample management solutions and multiomics services across areas such as drug development, clinical research and advanced cell therapies for the industry's top pharmaceutical, biotech, academic and healthcare institutions globally. Our global team delivers and supports these products and services through our industry-leading brands, including GENEWIZ, FluidX, Ziath, 4titude, Limfinity, Freezer Pro, and Barkey.

Azenta is headquartered in Burlington, Massachusetts, with operations in North America, Europe, and Asia. For more information, please visit www.azenta.com.

AZENTA INVESTOR CONTACTS:

Yvonne Perron
Vice President, Financial Planning & Analysis and Investor Relations
[email protected]

Sherry Dinsmore
[email protected]

AZENTA, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (In thousands, except per share data)  Three Months Ended   Six Months Ended  March 31,   March 31,  2025   2024   2025   2024  Revenue  Products  $ 41,955   $ 38,772   $ 85,782   $ 82,479  Services   101,463    97,583    205,146    195,601  Total revenue   143,418    136,355    290,928    278,080  Cost of revenue  Products   23,159    24,015    48,493    50,798  Services   54,373    51,676    107,878    104,875  Total cost of revenue   77,532    75,691    156,371    155,673  Gross profit   65,886    60,664    134,557    122,407  Operating expenses  Research and development   6,869    7,733    13,249    15,046  Selling, general and administrative   71,588    69,058    144,801    138,947  Impairment of intangible assets   —    4,658    —    4,658  Restructuring charges   3,580    3,428    4,011    4,214  Total operating expenses   82,037    84,877    162,061    162,865  Operating loss   (16,151)    (24,213)    (27,504)    (40,458)  Other income  Interest income, net   4,489    9,479    8,787    19,434  Other income (expense), net   1,157    (268)    2,360    250  Loss before income taxes   (10,505)    (15,002)    (16,357)    (20,774)  Income tax expense   7,680    1,200    11,249    2,620  Loss from continuing operations   (18,185)    (16,202)    (27,606)    (23,394)  Loss from discontinued operations, net of tax   (22,271)    (120,678)    (26,190)    (129,210)  Net loss  $ (40,456)   $ (136,880)   $ (53,796)   $ (152,604)  Basic net loss per share:  Loss from continuing operations  $ (0.40)   $ (0.29)   $ (0.60)   $ (0.42)  Loss from discontinued operations, net of tax   (0.49)    (2.18)    (0.57)    (2.30)  Basic net loss per share  $ (0.88)   $ (2.47)   $ (1.18)   $ (2.72)  Diluted net loss per share:  Loss from continuing operations  $ (0.40)   $ (0.29)   $ (0.60)   $ (0.42)  Loss from discontinued operations, net of tax   (0.49)    (2.18)    (0.57)    (2.30)  Diluted net loss per share  $ (0.88)   $ (2.47)   $ (1.18)   $ (2.72)  Weighted average shares used in computing net loss per share:  Basic   45,732    55,440    45,658    56,078  Diluted   45,732    55,440    45,658    56,078

AZENTA, INC. CONSOLIDATED BALANCE SHEETS (unaudited) (In thousands, except share and per share data)  March 31,   September 30,  2025   2024   Assets  Current assets  Cash and cash equivalents  $ 253,642   $ 280,030  Short-term marketable securities   74,697    151,162  Accounts receivable, net of allowance for expected credit losses ($5,624 and $5,349, respectively)   149,490    156,273  Inventories   83,321    78,923  Short-term restricted cash   2,102    2,069  Prepaid expenses and other current assets   67,590    75,456  Current assets held for sale   79,754    88,894  Total current assets   710,596    832,807  Property, plant and equipment, net   151,716    155,622  Long-term marketable securities   176,781    49,454  Long-term deferred tax assets   731    837  Operating lease right-of-use assets   59,856    60,406  Goodwill   682,955    691,409  Intangible assets, net   111,202    125,042  Other assets   7,125    10,670  Noncurrent assets held for sale   140,963    173,794  Total assets  $ 2,041,925   $ 2,100,041  Liabilities and stockholders' equity  Current liabilities  Accounts payable  $ 39,155   $ 33,344  Deferred revenue   41,608    30,493  Accrued warranty and retrofit costs   5,237    5,213  Accrued compensation and benefits   26,039    27,785  Accrued customer deposits   26,318    22,324  Accrued income taxes payable   10,321    9,266  Accrued expenses and other current liabilities   43,102    46,364  Current liabilities held for sale   28,933    30,050  Total current liabilities   220,713    204,839  Long-term tax reserves   417    398  Long-term deferred tax liabilities   22,458    18,084  Long-term operating lease liabilities   53,696    56,683  Other long-term liabilities   10,062    8,874  Noncurrent liabilities held for sale   33,087    42,196  Total liabilities   340,433    331,074   Stockholders' equity  Preferred stock, $0.01 par value - 1,000,000 shares authorized, no shares issued or outstanding   —    —  Common stock, $0.01 par value - 125,000,000 shares authorized, 59,237,887 shares issued and 45,776,018 shares outstanding at March 31, 2025; 59,031,953 shares issued and 45,570,084 shares outstanding at September 30, 2024   593    590  Additional paid-in capital   520,961    505,958  Accumulated other comprehensive loss   (42,149)    (13,464)  Treasury stock, at cost - 13,461,869 shares at March 31, 2025 and September 30, 2024   (200,956)    (200,956)  Retained earnings   1,423,043    1,476,839  Total stockholders' equity   1,701,492    1,768,967  Total liabilities and stockholders' equity  $ 2,041,925   $ 2,100,041

AZENTA, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (In thousands)  Six Months Ended March 31,  2025   2024  Cash flows from operating activities  Net loss  $ (53,796)   $ (152,604)  Adjustments to reconcile net loss to net cash provided by operating activities:  Depreciation and amortization   32,053    44,214  Impairment of goodwill and intangible assets   —    115,975  Loss on assets held for sale   24,187    —  Inventory write-downs and other asset write-offs   4,326    7,499  Stock-based compensation   13,453    8,804  Amortization and accretion on marketable securities   (983)    (2,084)  Deferred income taxes   (1,885)    (9,456)  (Gain) loss on disposals of property, plant and equipment   (7)    260  Changes in operating assets and liabilities:  Accounts receivable   6,713    2,922  Inventories   (6,030)    8,238  Accounts payable   1,864    936  Deferred revenue   12,042    3,379  Accrued warranty and retrofit costs   343    (714)  Accrued compensation and tax withholdings   (2,379)    (7,831)  Accrued restructuring costs   1,548    1,454  Other assets and liabilities   12,752    1,379  Net cash provided by operating activities   44,201    22,371  Cash flows from investing activities  Purchases of property, plant and equipment   (15,158)    (19,542)  Purchases of marketable securities   (236,237)    (345,447)  Sales and maturities of marketable securities   184,636    190,504  Proceeds from other investment   2,130    —  Net investment hedge settlement   3,043    1,476  Net cash used in investing activities   (61,586)    (173,009)  Cash flows from financing activities  Proceeds from issuance of common stock   1,553    1,678  Payments of finance leases   (457)    (386)  Share repurchases   —    (186,834)  Excise tax payment for settled share repurchases   (11,376)    —  Net cash used in financing activities   (10,280)    (185,542)  Effects of exchange rate changes on cash, cash equivalents and restricted cash   (4,459)    16,255  Net decrease in cash, cash equivalents and restricted cash   (32,124)    (319,925)  Cash, cash equivalents and restricted cash, beginning of period   320,990    684,045  Cash, cash equivalents and restricted cash, end of period  $ 288,866   $ 364,120  Supplemental disclosures:  Cash (received) / paid for income taxes, net   (4,594)    5,008  Purchases of property, plant and equipment included in accounts payable and accrued expenses   5,773    2,270  Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets

March 31,   September 30,  2025   2024  Cash and cash equivalents of continuing operations  $ 253,642   $ 280,030  Cash included in current assets held for sale   27,025    30,899  Short-term restricted cash   2,102    2,069  Long-term restricted cash included in other assets   6,097    7,992  Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows  $ 288,866   $ 320,990

Notes on Non-GAAP Financial Measures - Continuing Operations

Non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management adjusts the GAAP results for the impact of amortization of intangible assets, restructuring charges, purchase price accounting adjustments and charges related to M&A, non-recurring costs related to the Company's business transformation initiatives and share repurchases to provide investors better perspective on the results of operations which the Company believes is more comparable to the similar analysis provided by its peers. Management also excludes special charges and gains, such as impairment losses, gains and losses from the sale of assets, certain tax benefits and charges, as well as other gains and charges that are not representative of the normal operations of the business. Management strongly encourages investors to review our financial statements and publicly filed reports in their entirety and not rely on any single measure.

Quarter Ended March 31, 2025   December 31, 2024   March 31, 2024  per diluted       per diluted       per diluted  Amounts in thousands, except per share data  $   share   $   share   $   share  Net loss from continuing operations  $ (18,185)   $ (0.40)   $ (9,421)   $ (0.21)   $ (16,202)   $ (0.29)  Adjustments:  Amortization of completed technology   2,308    0.05    1,500    0.03    2,067    0.04  Amortization of other intangible assets   3,803    0.08    4,573    0.10    5,152    0.09  Transformation costs(1)   5,183    0.11    3,046    0.07    4,095    0.07  Restructuring charges   3,580    0.08    431    0.01    3,428    0.06  Impairment of intangible assets   —    —    —    —    4,658    0.08  Merger and acquisition costs and costs related to share repurchase(2)   688    0.02    1,570    0.03    426    0.01  Investment income(3)   (2,130)    (0.05)    —    —    —    —  Tax adjustments(4)   6,900    0.15    408    0.01    1,645    0.03  Tax effect of adjustments   (40)    (0.00)    1,530    0.03    (1,959)    (0.04)  Non-GAAP adjusted net income from continuing operations  $ 2,107   $ 0.05   $ 3,637   $ 0.08   $ 3,310   $ 0.06  Stock-based compensation, pre-tax   8,031    0.18    4,872    0.11    5,410    0.10  Tax rate   17 %   —    15 %   —    12 %   —  Stock-based compensation, net of tax   6,690    0.15    4,141    0.09    4,761    0.09  Non-GAAP adjusted net income excluding stock-based compensation - continuing operations  $ 8,797   $ 0.19   $ 7,778   $ 0.17   $ 8,071   $ 0.15   Shares used in computing non-GAAP diluted net income per share   —    45,732    —    45,626    —    55,440

Six Months Ended  March 31, 2025   March 31, 2024  per diluted       per diluted  Amounts in thousands, except per share data  $   share   $   share  Net loss from continuing operations  $ (27,606)   $ (0.60)   $ (23,394)   $ (0.42)  Adjustments:  Amortization of completed technology   3,808    0.08    3,923    0.07  Amortization of other intangible assets   8,376    0.18    10,523    0.19  Transformation costs(1)   8,229    0.18    4,136    0.07  Restructuring charges   4,011    0.09    4,214    0.08  Impairment of intangible assets   —    —    4,658    0.08  Merger and acquisition costs and costs related to share repurchase(2)   2,258    0.05    4,747    0.08  Investment income(3)   (2,130)    (0.05)    —    —  Tax adjustments(4)   7,308    0.16    3,338    0.06  Tax effect of adjustments   1,490    0.03    (4,288)    (0.08)  Non-GAAP adjusted net income from continuing operations  $ 5,744   $ 0.13   $ 7,857   $ 0.14  Stock-based compensation, pre-tax   12,904    0.28    8,411    0.15  Tax rate   17 %   —    12 %   —  Stock-based compensation, net of tax   10,749    0.24    7,402    0.13  Non-GAAP adjusted net income excluding stock-based compensation - continuing operations  $ 16,493   $ 0.36   $ 15,259   $ 0.27   Shares used in computing non-GAAP diluted net income per share   —    45,658    —    56,078

(1) Transformation costs represent non-recurring expenses for strategic projects with anticipated long-term benefits to the Company focused on cost reduction and productivity improvement that do not meet the definition of restructuring charges. These costs are directed at simplifying, standardizing, streamlining, and optimizing the Company's operations, processes and systems to permanently alter the Company's operations for the long term. For a project to be considered transformational, successful completion of the project must be expected to bring long-term material benefits to the organization and involve significant changes to process and/or underlying technology. Transformation costs in the period result from actions taken as part of the Company's 2024 transformation plan and primarily relate to one time asset write downs associated with changes in technology, one time inventory write downs relating to restructuring actions taken in the period, and third-party consulting costs associated with process and systems re-design.

(2) Includes expenses related to governance-related matters. (3) The Company received $2.1 million of cash proceeds from a cost method investment which had no cost basis during the three months ended March 31, 2025. The gain is non-recurring and non-operational in nature.

(4) Tax adjustments during all periods include adjustments to tax benefits related to stock compensation. These adjustments are recognized in the period of vesting for US GAAP but included in the annual effective tax rate for Non-GAAP reporting. Tax adjustments for the three and six months ended March 31, 2025 include $6.6 million of tax expenses related to a one-time repatriation of historical earnings from China.

Quarter Ended   Six Months Ended  March 31,   December 31,   March 31,   March 31,   March 31,  Dollars in thousands  2025   2024   2024   2025   2024  GAAP net loss  $ (40,456)   $ (13,340)   $ (136,880)   $ (53,796)   $ (152,604)  Less: Loss from discontinued operations   (22,271)    (3,919)    (120,678)    (26,190)    (129,210)  GAAP net loss from continuing operations   (18,185)    (9,421)    (16,202)    (27,606)    (23,394)  Adjustments:  Interest income, net   (4,489)    (4,298)    (9,479)    (8,787)    (19,434)  Income tax expense   7,680    3,569    1,200    11,249    2,620  Depreciation   7,818    7,474    7,395    15,292    14,815  Amortization of completed technology   2,308    1,500    2,067    3,808    3,923  Amortization of other intangible assets   3,803    4,573    5,152    8,376    10,523  Earnings before interest, taxes, depreciation and amortization - Continuing operations  $ (1,065)   $ 3,397   $ (9,867)   $ 2,332   $ (10,947)

Quarter Ended   Six Months Ended  March 31,   December 31,   March 31,   March 31,   March 31,  Dollars in thousands  2025   2024   2024   2025   2024  Earnings before interest, taxes, depreciation and amortization - Continuing operations  $ (1,065)   $ 3,397   $ (9,867)   $ 2,332   $ (10,947)  Adjustments:  Stock-based compensation   8,031    4,872    5,410    12,904    8,411  Restructuring charges   3,580    431    3,428    4,011    4,214  Impairment of intangible assets   —    —    4,658    —    4,658  Merger and acquisition costs and costs related to share repurchase(1)   688    1,570    426    2,258    4,747  Transformation costs(2)   5,183    3,046    4,095    8,229    4,136  Investment income(3)   (2,130)    —    —    (2,130)    —  Adjusted earnings before interest, taxes, depreciation and amortization - Continuing operations  $ 14,287   $ 13,316   $ 8,150   $ 27,604   $ 15,219

(1) Includes expenses related to governance-related matters.

(2) Transformation costs represent non-recurring expenses for strategic projects with anticipated long-term benefits to the Company focused on cost reduction and productivity improvement that do not meet the definition of restructuring charges. These costs are directed at simplifying, standardizing, streamlining, and optimizing the Company's operations, processes and systems to permanently alter the Company's operations for the long term. For a project to be considered transformational, successful completion of the project must be expected to bring long-term material benefits to the organization and involve significant changes to process and/or underlying technology. Transformation costs in the period result from actions taken as part of the Company's 2024 transformation plan and primarily relate to one time asset write downs associated with changes in technology, one time inventory write downs relating to restructuring actions taken in the period, and third-party consulting costs associated with process and systems re-design. (3) The Company received $2.1 million of cash proceeds from a cost method investment which had no cost basis during the three months ended March 31, 2025. The gain is non-recurring and non-operational in nature.

Quarter Ended  Dollars in thousands  March 31, 2025   December 31, 2024   March 31, 2024  GAAP gross profit  $ 65,886    45.9 %  $ 68,671    46.6 %  $ 60,664    44.5 % Adjustments:  Amortization of completed technology   2,308    1.6 %   1,500    1.0 %   2,067    1.5 % Transformation costs(1)   —    — %   52    0.0 %   359    0.3 % Other adjustments   (9)    (0.0) %   6    0.0 %   —    — % Non-GAAP adjusted gross profit  $ 68,185    47.5 %  $ 70,229    47.6 %  $ 63,091    46.3 %

Six Months Ended  Dollars in thousands  March 31, 2025   March 31, 2024  GAAP gross profit  $ 134,557    46.3 %  $ 122,407    44.0 % Adjustments:  Amortization of completed technology   3,808    1.3 %   3,923    1.4 % Transformation costs(1)   52    0.0 %   359    0.1 % Non-GAAP adjusted gross profit  $ 138,417    47.6 %  $ 126,689    45.6 %

(1) Transformation costs represent non-recurring expenses for strategic projects with anticipated long-term benefits to the Company focused on cost reduction and productivity improvement that do not meet the definition of restructuring charges. These costs are directed at simplifying, standardizing, streamlining, and optimizing the Company's operations, processes and systems to permanently alter the Company's operations for the long term. For a project to be considered transformational, successful completion of the project must be expected to bring long-term material benefits to the organization and involve significant changes to process and/or underlying technology. Transformation costs in the period result from actions taken as part of the Company's 2024 transformation plan and primarily relate to one time asset write downs associated with changes in technology, one time inventory write downs relating to restructuring actions taken in the period, and third-party consulting costs associated with process and systems re-design.

Sample Management Solutions   Multiomics  Quarter Ended   Quarter Ended  March 31,   December 31,   March 31,   March 31,   December 31,   March 31,  Dollars in thousands  2025   2024   2024   2025   2024   2024  GAAP gross profit  $ 38,251    47.9 %  $ 38,114    46.9 %  $ 32,943    44.4 %  $ 27,635    43.5 %  $ 30,557    46.1 %  $ 27,721    44.6 % Adjustments:  Amortization of completed technology   1,449    1.8 %   639    0.8 %   1,028    1.4 %   859    1.4 %   861    1.3 %   1,040    1.7 % Transformation costs(1)   —    — %   52    0.1 %   359    0.5 %   —    — %   —    — %   —    — % Other adjustment   (9)    (0.0) %   5    0.0 %   —    — %   —    — %   1    — %   —    — % Non-GAAP adjusted gross profit  $ 39,691    49.7 %  $ 38,810    47.8 %  $ 34,330    46.3 %  $ 28,494    44.9 %  $ 31,419    47.4 %  $ 28,761    46.2 %

Segment Total  Quarter Ended  March 31,   December 31,   March 31,  Dollars in thousands  2025   2024   2024  GAAP gross profit  $ 65,886    45.9 %  $ 68,671    46.6 %  $ 60,664    44.5 % Adjustments:  Amortization of completed technology   2,308    1.6 %   1,500    1.0 %   2,068    1.5 % Transformation costs(1)   —    — %   52    0.0 %   359    0.3 % Other adjustment   (9)    (0.0) %   6    0.0 %   —    — % Non-GAAP adjusted gross profit  $ 68,185    47.5 %  $ 70,229    47.6 %  $ 63,091    46.3 %

Sample Management Solutions   Multiomics  Six Months Ended   Six Months Ended  Dollars in thousands  March 31, 2025   March 31, 2024   March 31, 2025   March 31, 2024  GAAP gross profit  $ 76,366    47.4 %  $ 66,215    43.2 %  $ 58,191    44.8 %  $ 56,192    45.0 % Adjustments:  Amortization of completed technology   2,088    1.3 %   1,843    1.4 %   1,720    1.3 %   2,080    1.7 % Transformation costs(1)   52    0.0 %   359    0.3 %   —    — %   —    — % Non-GAAP adjusted gross profit  $ 78,506    48.7 %  $ 68,417    44.7 %  $ 59,911    46.2 %  $ 58,272    46.6 %

Segment Total  Six Months Ended  Dollars in thousands  March 31, 2025   March 31, 2024  GAAP gross profit  $ 134,557    46.3 %  $ 122,407    44.0 % Adjustments:  Amortization of completed technology   3,808    1.3 %   3,923    1.4 % Transformation costs(1)   52    0.0 %   359    0.1 % Non-GAAP adjusted gross profit  $ 138,417    47.6 %  $ 126,689    45.6 %

(1) Transformation costs represent non-recurring expenses for strategic projects with anticipated long-term benefits to the Company focused on cost reduction and productivity improvement that do not meet the definition of restructuring charges. These costs are directed at simplifying, standardizing, streamlining, and optimizing the Company's operations, processes and systems to permanently alter the Company's operations for the long term. For a project to be considered transformational, successful completion of the project must be expected to bring long-term material benefits to the organization and involve significant changes to process and/or underlying technology. Transformation costs in the period result from actions taken as part of the Company's 2024 transformation plan and primarily relate to one time asset write downs associated with changes in technology, one time inventory write downs relating to restructuring actions taken in the period, and third-party consulting costs associated with process and systems re-design.

Sample Management Solutions   Multiomics  Quarter Ended   Quarter Ended  March 31,   December 31,   March 31,   March 31,   December 31,   March 31,  Dollars in thousands  2025   2024   2024   2025   2024   2024  GAAP operating income (loss)  $ 567   $ 1,562   $ (2,894)   $ (6,132)   $ (3,387)   $ (3,920)  Adjustments:  Amortization of completed technology   1,449    639    1,028    859    861    1,040  Amortization of other intangible assets   —    13    52    —    —    —  Transformation costs(1)   2,606    103    359    —    —    —  Restructuring charges   —    —    —    (23)    23    —  Other adjustments   (9)    —    (2)    —    —    —  Non-GAAP adjusted operating income (loss)  $ 4,613   $ 2,317   $ (1,457)   $ (5,296)   $ (2,503)   $ (2,880)

Total Segments   Corporate   Total  Quarter Ended   Quarter Ended   Quarter Ended  March 31,   December 31,   March 31,   March 31,   December 31,   March 31,   March 31,   December 31,   March 31,  Dollars in thousands  2025   2024   2024   2025   2024   2024   2025   2024   2024  GAAP operating income (loss)  $ (5,565)   $ (1,825)   $ (6,814)   $ (10,586)   $ (9,528)   $ (17,399)   $ (16,151)   $ (11,353)   $ (24,213)  Adjustments:  Amortization of completed technology   2,308    1,500    2,068    —    —    (1)    2,308    1,500    2,067  Amortization of other intangible assets   —    13    52    3,803    4,560    5,100    3,803    4,573    5,152  Transformation costs(1)   2,606    103    359    2,577    2,943    3,736    5,183    3,046    4,095  Restructuring charges   (23)    23    —    3,603    408    3,428    3,580    431    3,428  Impairment of intangible assets   —    —    —    —    —    4,658    —    —    4,658  Merger and acquisition costs and costs related to share repurchase(2)   —    —    —    688    1,570    426    688    1,570    426  Other adjustments   (9)    —    (2)    —    9    2    (9)    9    —  Non-GAAP adjusted operating income (loss)  $ (683)   $ (186)   $ (4,337)   $ 85   $ (38)   $ (50)   $ (598)   $ (224)   $ (4,387)

Sample Management Solutions   Multiomics  Six Months Ended   Six Months Ended  Dollars in thousands  March 31,   March 31,   March 31,   March 31,  2025   2024   2025   2024  GAAP operating income (loss)  $ 2,129   $ (4,380)   $ (9,519)   $ (8,223)  Adjustments:  Amortization of completed technology   2,088    1,843    1,720    2,080  Amortization of other intangible assets   —    103    —    —  Transformation costs(1)   2,709    359    —    —  Other adjustments   4    2    3    (1)  Non-GAAP adjusted operating income (loss)  $ 6,930   $ (2,073)   $ (7,796)   $ (6,144)

Total Segments   Corporate   Total  Six Months Ended   Six Months Ended   Six Months Ended  Dollars in thousands  March 31,   March 31,   March 31,   March 31,   March 31,   March 31,  2024   2024   2025   2024   2025   2024  GAAP operating loss  $ (7,390)   $ (12,603)   $ (20,114)   $ (27,855)   $ (27,504)   $ (40,458)  Adjustments:  Amortization of completed technology   3,808    3,923    —    —    3,808    3,923  Amortization of other intangible assets   —    103    8,376    10,420    8,376    10,523  Transformation costs(1)   2,709    359    5,520    3,777    8,229    4,136  Restructuring charges   —    —    4,011    4,214    4,011    4,214  Impairment of intangible assets   —    —    —    4,658    —    4,658  Merger and acquisition costs and costs related to share repurchase(2)   —    —    2,258    4,747    2,258    4,747  Other adjustments   7    1    (7)    (2)    —    (1)  Non-GAAP adjusted operating income (loss)  $ (866)   $ (8,217)   $ 44   $ (41)   $ (822)   $ (8,258)

(1) Transformation costs represent non-recurring expenses for strategic projects with anticipated long-term benefits to the Company focused on cost reduction and productivity improvement that do not meet the definition of restructuring charges. These costs are directed at simplifying, standardizing, streamlining, and optimizing the Company's operations, processes and systems to permanently alter the Company's operations for the long term. For a project to be considered transformational, successful completion of the project must be expected to bring long-term material benefits to the organization and involve significant changes to process and/or underlying technology. Transformation costs in the period result from actions taken as part of the Company's 2024 transformation plan and primarily relate to one time asset write downs associated with changes in technology, one time inventory write downs relating to restructuring actions taken in the period, and third-party consulting costs associated with process and systems re-design.

(2) Includes expenses related to governance-related matters.

Sample Management Solutions   Multiomics   Azenta Total  Quarter Ended   Quarter Ended   Quarter Ended  March 31,   March 31,       March 31,   March 31,       March 31,   March 31,  Dollars in millions  2025   2024   Change   2025   2024   Change   2025   2024   Change  Revenue  $ 80   $ 74    8 %  $ 64   $ 62    2 %  $ 143   $ 136    5 % Currency exchange rates       —    1 %   1    —    1 %   1    —    1 % Organic revenue  $ 80   $ 74    8 %  $ 64   $ 62    3 %  $ 144   $ 136    6 %

Sample Management Solutions   Multiomics   Azenta Total  Six Months Ended   Six Months Ended   Six Months Ended  March 31,   March 31,       March 31,   March 31,       March 31,   March 31,  Dollars in millions  2025   2024   Change   2025   2024   Change   2025   2024   Change  Revenue  $ 161   $ 153    5 %  $ 130   $ 125    4 %  $291   $ 278    5 % Currency exchange rates       —     %   1    —     %   1   —     % Organic revenue  $ 161   $ 153    5 %  $ 130   $ 125    4 %  $ 292   $278    5 % Azenta logo (PRNewsfoto/Azenta)Cision

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