Azenta Reports Slight Revenue Increase to $148.6 Million in Q1 FY 2026

Azenta, Inc. reported a slight increase in revenue for the first quarter of fiscal year 2026, with total revenue reaching $148.6 million, up from $147.4 million in the same period last year. The growth was primarily driven by the Multiomics segment, which saw a 1.4% increase in revenue, attributed to advancements in Next Generation Sequencing and Gene Synthesis. However, the overall gross profit decreased to $63.7 million, resulting in a gross margin of 43%, down from 46.7% in the prior year, largely due to increased costs associated with Automated Stores projects and lower sales volume in North America.

The company's operating expenses decreased to $70.9 million from $77.5 million year-over-year, reflecting lower selling, general, and administrative expenses, which were partially offset by increased research and development costs. Azenta reported a net loss of $15.4 million for the quarter, compared to a net loss of $11.0 million in the previous year. The loss from continuing operations improved to $5.2 million from $7.1 million, while the loss from discontinued operations, primarily related to the B Medical Systems business, increased significantly to $10.2 million due to a loss on assets held for sale.

In terms of strategic developments, Azenta announced the sale of its B Medical Systems business to Thelema S.À R.L. for $63 million, with a $9 million deposit already received. This transaction is expected to close by March 31, 2026, pending the buyer's financing conditions. The decision to divest this segment is part of Azenta's strategy to streamline operations and focus on its core Sample Management Solutions and Multiomics segments. The company has classified the B Medical Systems business as a discontinued operation, impacting its financial reporting.

Operationally, Azenta's total assets increased to $2.07 billion as of December 31, 2025, up from $2.06 billion at the end of the previous fiscal year. The company reported cash and cash equivalents of $336.6 million, alongside short-term marketable securities of $73 million. Employee headcount remained stable at approximately 3,000, with operations spanning across 87 countries. The company continues to invest in research and development, with expenses rising to $9.2 million, reflecting its commitment to innovation in the life sciences sector.

Looking ahead, Azenta remains focused on enhancing its product offerings and expanding its market presence. The company anticipates that the divestiture of the B Medical Systems business will allow for greater resource allocation towards its core segments, potentially improving profitability in the long term. However, the company also acknowledges the uncertainties in the current economic environment, which may impact its future performance and liquidity.