Azenta 2025 Q3 Earnings Deepening Losses Amid Flat Revenue

Azenta reported its fiscal 2025 Q3 earnings on Aug 07th, 2025, showing a decline in revenue and a significant deepening of losses compared to the prior year. The company's revenue remained flat at $143.94 million, while its net loss widened dramatically to $52.81 million, a 702.3% increase from $6.58 million in the same period in 2024. Guidance for the year was reiterated, with no adjustments to full-year projections.

Revenue
Azenta’s total revenue for the quarter stood at $143.94 million, reflecting a 0.2% decline compared to $144.29 million in the same period of the previous year. The Sample Management Solutions segment reported $77.71 million in revenue, while the Products segment accounted for $39.39 million. The Multiomics segment contributed $66.23 million, and the Services segment generated $104.56 million. Despite these figures, organic revenue growth was impacted by currency exchange fluctuations, with Sample Management Solutions declining by 4% year-over-year and Multiomics rising by 4%.

Earnings/Net Income
The company’s losses deepened significantly in the quarter, with a net loss of $52.81 million, or $1.15 per share, compared to a loss of $6.58 million, or $0.12 per share, in the prior year. This marked an 858.3% increase in the per-share loss. The performance highlights a challenging period for Azenta, with the company reporting a dramatic expansion in its deficit despite a flat revenue line.

Price Action
Following the earnings release, Azenta’s stock experienced mixed performance, with a 1.50% increase during the latest trading day. However, the stock fell 15.02% over the most recent full trading week and declined 9.64% month-to-date, reflecting a volatile investor response to the earnings report.

Post Earnings Price Action Review
The earnings report prompted a negative reaction in the market, as a strategy to buy AZTA after an earnings beat and hold for 30 days yielded a loss of -67.25%. This underperformed the benchmark by 102.47%. The strategy had a maximum drawdown of 0.00% and a Sharpe ratio of -0.53, indicating poor risk-adjusted returns and high volatility compared to the broader market. The stock’s performance underscores the challenges in capitalizing on earnings surprises in this period.

CEO Commentary
John Marotta, President and CEO of Azenta, highlighted the company’s progress in operational improvements and disciplined cost management, which contributed to margin expansion despite macroeconomic challenges. He expressed confidence in the company’s balance sheet and cash flow, stating that these strengths position Azenta to pursue future opportunities. The leadership team maintained an optimistic tone, reiterating confidence in the company’s strategic vision and its progress toward full-year goals.

Guidance
Azenta reiterated its full-year fiscal 2025 guidance, projecting total organic revenue growth of 3% to 5% year-over-year and an approximate 300 basis points expansion in Adjusted EBITDA margin. The company, however, did not provide GAAP-based forward-looking guidance due to the unpredictable nature of non-operational adjustments. This caution reflects the challenges of forecasting in a volatile environment and underscores the reliance on non-GAAP metrics for strategic planning.

Additional News
The discontinuation of B Medical Systems’ operations is reflected in Azenta’s diluted EPS figures, as the company announced plans to pursue a sale in Q1 2025. The impact of this decision is evident in the quarter’s results, where the operating loss stood at $0.7 million, with an operating margin of -0.5%. Gross margin improved to 47.1%, driven by favorable sales mix and cost efficiencies. Operating expenses decreased by 6% year-over-year, primarily due to reduced selling, general, and administrative costs. Azenta ended the quarter with $565 million in cash and cash equivalents, including $15 million held in discontinued operations. The company also provided a webcast of its earnings call on August 5, 2025, for further discussion of financial and operational updates.