Azenta's Q3 2025 Earnings Call: Unpacking Contradictions in NIH Funding, Growth Projections, and Market Dynamics

NIH Funding Impact and Countermeasures, Growth and Market Recovery Expectations, Impact of NIH Funding Cuts, SMS Growth and Leadership Transition, NGS Growth and Market Dynamics are the key contradictions discussed in Azenta's latest 2025Q3 earnings call.



Revenue and Financial Performance:
- Azenta reported flat year-over-year revenue growth with $144 million in revenue for Q3 2025, representing a 2% decline on an organic basis.
- The decrease in organic growth was primarily due to softness in core products revenue and timing delays in product purchases, despite strong performance in areas such as next-gen sequencing and sample storage.

Adjusted EBITDA Expansion:
- Azenta's adjusted EBITDA margin expanded by 260 basis points year-over-year to 12.3% for Q3.
- This expansion highlights the company's operational turnaround efforts and increased efficiency, reflecting cost discipline and improved operational execution.

Segment Performance and Challenges:
- The Multiomics segment reported 4% growth on a reported basis and 3% on an organic basis, driven by strong demand in next-gen sequencing and large customer deals.
- However, the Synthetic Monitoring Systems (SMS) segment faced 4% and 6% year-over-year decreases on reported and organic bases, respectively, due to softer bookings for automated stores and capital equipment delays.

Leadership and Strategic Initiatives:
- Azenta has implemented a regional model for commercial operations, with new leadership in North America and a focus on enhancing regional capabilities.
- Strategic investments in R&D and product management are aimed at driving innovation and tighter alignment with customer needs, supporting long-term growth.