Azenta 2025 Q3 Earnings Deepening Losses Amid Flat Revenue

Azenta reported its fiscal 2025 Q3 earnings on Aug 06th, 2025. The company missed expectations with a significant widening of losses and a slight decline in total revenue. Azenta reiterated its full-year guidance, maintaining its organic revenue growth and margin expansion targets.

Revenue
Azenta’s total revenue for 2025 Q3 fell by 0.2% to $143.94 million, compared to $144.29 million in 2024 Q3. The company's Sample Management Solutions segment saw a 4% year-over-year decline to $78 million, driven primarily by reduced Core Products revenue, especially in Automated Stores and Cryogenic Systems. In contrast, the Multiomics segment grew by 4% to $66 million, supported by strong performance in Next Generation Sequencing, although this was partially offset by declines in Sanger Sequencing and Gene Synthesis.

Earnings/Net Income
Azenta's losses deepened in 2025 Q3, with a per-share loss of $1.15, a 960% increase in loss from $0.12 in 2024 Q3. The company's net loss surged to $-52.81 million, a 702.3% increase compared to $-6.58 million in the same period last year. This represents a substantial deterioration in earnings performance.

Price Action
The stock price of Azenta has shown a sharp decline in the recent period, with a 11.45% drop during the latest trading day, a 20.70% drop during the most recent full trading week, and a 19.05% decline month-to-date.

Post-Earnings Price Action Review
A historical strategy of buying Azenta shares after a revenue increase quarter-over-quarter on the report date has underperformed significantly. Over the past three years, this strategy yielded a negative return of -47.48%, contrasting sharply with the benchmark return of 48.58%. The strategy's excess return was -96.06% and its annualized return of -19.93% indicates substantial losses. Additionally, the strategy experienced a maximum drawdown of 0.00%, suggesting no additional downside risk but also highlighting the lack of profitability.

CEO Commentary
John Marotta, President and CEO of Azenta, noted that the company has made meaningful progress in operational turnaround, including disciplined cost management and margin expansion. He expressed confidence in Azenta's strong balance sheet and cash flow, which he believes will support the company’s long-term strategy and enable it to meet full-year objectives.

Guidance
Azenta reiterated its full-year 2025 guidance, maintaining a total organic revenue growth range of 3% to 5% relative to fiscal 2024 and an expected Adjusted EBITDA margin expansion of approximately 300 basis points compared to fiscal 2024.

Additional News
Azenta announced that the results from B Medical Systems are now treated as discontinued operations and will be reflected in the company's diluted EPS. As part of its strategic initiatives, the company is pursuing the sale of B Medical Systems, a move first announced in the first fiscal quarter of 2025. Azenta’s Sample Management Solutions revenue for the quarter was $78 million, while its Multiomics revenue reached $66 million. The company also highlighted a 4% year-over-year increase in operating cash flow and a 6% reduction in operating expenses. Additionally, Azenta is implementing a comprehensive transformation plan focused on cost reduction and productivity improvement, which includes third-party consulting for process and systems redesign.