Azenta Reports Q2 Fiscal 2026 Revenue of $144.8M, Faces $149.1M Goodwill Impairment

Azenta, Inc. reported its financial results for the second quarter of fiscal year 2026, revealing a total revenue of $144.8 million, a slight increase of 1% compared to $143.3 million in the same period last year. The company's revenue growth was driven by its Sample Management Solutions (SMS) and Multiomics segments, which saw increases in service offerings, particularly in sample storage and genomic services. However, the company also faced challenges, including a significant non-cash goodwill impairment charge of $149.1 million, which contributed to a net loss of $160.8 million for the quarter, compared to a net loss of $47.7 million in the prior year.

In terms of operational performance, Azenta's gross profit for the quarter was $62.0 million, resulting in a gross margin of 43%, down from 44% in the previous year. The decline in gross margin was attributed to increased costs associated with rework on Automated Stores projects and higher inventory reserves. Operating expenses surged to $227.8 million, primarily due to the aforementioned impairment charge, which overshadowed a decrease in selling, general, and administrative expenses. The company reported an operating loss of $165.8 million for the quarter, compared to an operating loss of $18.2 million in the same quarter last year.

Strategically, Azenta completed the acquisition of UK Biocentre Limited on March 4, 2026, for approximately $27.5 million, which is expected to enhance its capabilities in sample management and processing services in the UK and broader European market. This acquisition aligns with Azenta's goal to expand its operational footprint and service offerings in the life sciences sector. Additionally, the company is in the process of divesting its B Medical Systems business, with a sale agreement valued at $63 million, although the transaction has faced delays due to financing issues from the buyer.

As of March 31, 2026, Azenta reported total assets of $1.9 billion, a decrease from $2.1 billion at the end of the previous fiscal year. The company had cash and cash equivalents of $234.0 million, down from $279.8 million, and short-term marketable securities of $146.5 million. The total employee headcount stood at approximately 2,900, reflecting the company's ongoing commitment to maintaining a skilled workforce to support its operations. Looking ahead, Azenta anticipates continued revenue growth driven by its strategic initiatives and market demand, although it remains cautious about potential economic challenges and their impact on its financial performance.