Azenta, Inc.

Greetings and welcome to the CENTA Q3 2025 Financial Results. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question and answer session. At that time, if you have a question, please press the star followed by one on your telephone. As a reminder, this conference is being recorded Tuesday, August 5th, 2025. I will now like to turn the conference over to Yvonne Perron, Vice President, FP&A, and investor relations. Please go ahead.

Thank you, Operator, and good morning to everyone on the line today. We would like to welcome you to our earnings conference call for the third quarter of fiscal year 2025. Our third quarter earnings press release was issued before the open of the market today and is available on our investor relations website located at investors.azenta.com in addition to the supplementary PowerPoint slides that will be used during the prepared remarks today. Please note that effective the first fiscal quarter of 2025, the results of the medical systems are treated as discontinued operations. I would like to remind everyone that during the course of the call, we will be making a number of forward-looking statements within the meaning of the Private Litigation Securities Act of 1995. There are many factors that may cause actual financial results or other events to differ from those identified in such forward-looking statements. I would refer you to the section of our earnings release titled Safe Harbor Statement, the Safe Harbor slide on the aforementioned PowerPoint presentation on our website. and our various filings with the SEC, including our annual reports on Form 10-K and our quarterly reports on Form 10-Q. We make no obligation to update these statements should future financial data or events differ from the forward-looking statements presented today. We may refer to a number of non-GAAP financial measures which are used in addition to and in conjunction with results presented in accordance with GAAP. We believe the non-GAAP measures provide an additional way of viewing aspects of our operations and performance, but when considered with GAAP financial results and the reconciliation of GAAP measures, they provide an even more complete understanding of the ascent to business. Non-GAAP measures should not be relied upon to the exclusion of the GAAP measures themselves. On the call with me today is our President and Chief Executive Officer, John Murata, and our Executive Vice President and Chief Financial Officer, Lawrence Lin. We will open the call with remarks from John, then Lawrence will provide a detailed look into our financial results and our outlook for fiscal year 2025. We will then take your questions at the end of the prepared remarks, and with that, I would like to turn the call over to our CEO, John Murata.

Thank you, Yvonne. Good morning, everyone, and thank you for joining us today. As we continue to navigate an uncertain and dynamic macro environment, one thing remains crystal clear. Azenta's core capabilities make us the partner of choice for our customers now more than ever. Whether it's navigating funding constraints, supply chain complexities, or market uncertainties, our commitment to operational excellence, innovation, and customer centricity enables us to remain a trusted ally. In times of uncertainty, it's our deep expertise and capabilities that sets us apart and ensures we continue to deliver value where it matters most. We are uniquely positioned to help our customers thrive, and we are committed to enabling breakthroughs faster, regardless of the challenges the broader environment may present. On the call today, I'll start by providing an overview of our business progress and our financial performance, and then share some comments on the broader macro environment and relevant considerations before turning the call over to Lawrence for the financial review. Despite the ongoing macro challenges, our focus has not wavered. We remain guided by our North Star of long-term value creation, and our operational turnaround is moving us in the right direction. The structural realignment of our organization is allowing us to operate more effectively, reduce G&A costs, and redeploy critical resources into the operating companies so the decisions can be made closest to the customer. We're also advancing our key growth priorities, which include, one, strengthening commercial excellence by expanding regional capabilities and alignment, staffing opening sales territories, and investing in feed on the streets. Two, funding product management resources to drive innovation and tighter alignment to customers' needs. And three, investing in R&D to bring forward new and transformative solutions to our customers to accelerate growth. The foundation for all that we do is rooted in the Azenta business system. ABS provides the structure and discipline to support and fuel growth through operational excellence and will be a competitive advantage for us. The business system model will harness the full potential of our talented team, unify our culture, and drive our performance. We're reshaping the company for long-term profitable growth, efficient working capital management, and sustained value creation, all in service of enabling breakthroughs faster. In the fiscal third quarter, we saw clear pockets of strength with growth in next-gen sequencing, sample storage, and product services. Consistent with the broader life sciences tool space, These areas of our business with the most stable and reoccurring revenue streams performed well. This strong performance was partially offset by core products revenue weakness, as customers were forced to contend with ongoing funding and investment constraints and broader policy and macro uncertainty. Importantly, we have a very robust products funnel. Based on our customers' interactions, we believe that our underlying demand is strong and that the order acceleration is a matter of timing. Against this muted macro backdrop, adjusted EBITDA margin expanded by 260 basis points year-over-year, a testament to our execution and cost discipline. We remain committed to our full-year 2025 guidance of organic revenue growth between 3% to 5% and adjusted EBITDA margin expansion of 300 basis points. Our geopolitical war room remains, actively assessing and responding to external developments, quantifying potential impacts, and working purposely through countermeasures. Our customer outreach initiative, which began last quarter, remains a priority. Each week, we receive direct feedback from our team on what they hear from customers and how Azenta can be a better partner. This enables us to react and adjust in real time. Consistent with our prior view, we continue to estimate the reductions in NIH funding levels will result in approximately 1% headwind to the full year 2025 revenue. Countermeasures are in place. We believe that the tariffs have a nominal impact on our adjusted EBITDA. The turbulent and changing tariff landscape is challenging to navigate, and we continue to seek alternative supply chain sources and balanced and reasonable cost-sharing options. Thanks to the operational improvements we have made in the business, we are pleased we are able to reaffirm our guidance today despite these impacts. More broadly, we're in a strong position to capitalize on the considerable opportunities we anticipate will materialize from this dynamic environment. We believe we are a valuable outsourcing solution that can also help alleviate the cost pressures for our customers, and we are already seeing this play out. For example, we recently negotiated a new MSA with a core lab where our service offering will deliver to the customer both reduced costs and improved service quality. We anticipate seeing more of these opportunities. Elsewhere, we are seeing green shoots in our stores and instruments products given the robustness of our funnel. We remain in a strong financial position. With $550 million in cash on our balance sheet, equivalent to $12 per share of cash, no outstanding debt, and meaningful free cash flow generation, we will prioritize investment opportunities across key levers, which are gross margin productivity, organic growth offerings, inorganic growth through strategic tuck-in M&A, and repurchasing our stock. Our M&A funnel is robust, and we see a healthy pipeline and high-quality strategic token opportunities that we believe can help to accelerate revenue growth and profitability. As we previously mentioned, we are planning to host an Investor Day later this calendar year to update the investor community on what we achieve and our outlook for our business. Details of this event will be released in the next couple of months. I'm proud of the work our team does each day to partner with our customers. I remain excited and confident about Azenta's ability to deliver long-term sustainable value to our customers, our employees, and our shareholders. With that, I'm pleased to turn the call over to Lawrence. Thank you.