Azenta's Q3 2025 Earnings Call: Dissecting Contradictions in Revenue Growth, Leadership Changes, and NGS Momentum

Revenue growth and order pushout, leadership changes and impact on business performance, NGS growth and momentum, and impact of NIH funding are the key contradictions discussed in Azenta's latest 2025Q3 earnings call.



Revenue Trends and Segment Performance:
- Azenta reported revenue of $144 million for Q3, flat year-over-year on a reported basis and down 2% on an organic basis.
- The decline was partially offset by growth in next-gen sequencing and sample storage, while core products faced revenue weakness due to customer funding constraints and macro uncertainty.

Operational Efficiency and Cost Management:
- Azenta's adjusted EBITDA margin expanded by 260 basis points year-over-year, reaching 12.3%.
- This improvement highlights increased efficiency and cost discipline, driven by the structural realignment of the organization and operational turnaround efforts.

Macro Environment Impact and Strategic Positioning:
- Azenta acknowledged a 1% headwind from reduced NIH funding levels, but maintained its full year guidance despite these impacts.
- The company remains positioned as a valuable outsourcing solution, seeing opportunities in reducing customer costs and improving service quality amid funding constraints.

Product and Service Growth Drivers:
- Growth in next-gen sequencing and sample storage was attributed to stable pricing and strong customer demand, particularly in the academic and pharma sectors.
- The decline in core products revenue was primarily due to customers delaying capital investments and budget constraints, with no cancellations reported.