Azenta, Inc. Leases Disclosure
10. Leases
The Company has operating and finance leases for real estate and other assets in North America, Europe, and Asia. Non-real estate leases are primarily related to vehicles and office equipment. Lease expiration dates range between 2025 and 2043.
The components of lease expense for fiscal years 2025 and 2024 are as follows (in thousands):
| Year Ended September 30, | ||||||||
| 2025 | 2024 | |||||||
| Operating lease costs | $ | 10,251 | $ | 11,008 | ||||
| Finance lease costs: | ||||||||
| Amortization of assets | 674 | 408 | ||||||
| Interest on lease liabilities | (44 | ) | 68 | |||||
| Total finance lease costs | 630 | 476 | ||||||
| Total operating and finance lease costs | 10,881 | 11,484 | ||||||
| Variable lease costs | 3,293 | 2,977 | ||||||
| Short-term lease costs | 227 | 237 | ||||||
| Total lease costs | $ | 14,401 | $ | 14,698 | ||||
Supplemental balance sheet information related to leases is as follows (in thousands, except lease term and discount rate):
| September 30, 2025 | September 30, 2024 | |||||||
| Operating Leases: | ||||||||
| Operating lease right-of-use assets | $ | 54,048 | $ | 60,406 | ||||
|
| $ | 7,175 | $ | 8,089 | ||||
| Long-term operating lease liabilities | 51,244 | 56,677 | ||||||
| Total operating lease liabilities | $ | 58,419 | $ | 64,766 | ||||
| Finance Leases: | ||||||||
| Property, plant and equipment, at cost | $ | 2,656 | $ | 4,570 | ||||
| Accumulated amortization | (1,408 | ) | (3,234 | ) | ||||
| Property, plant and equipment, net | $ | 1,248 | $ | 1,336 | ||||
|
| $ | 607 | $ | 578 | ||||
|
| 903 | 975 | ||||||
| Total finance lease liabilities | $ | 1,510 | $ | 1,553 | ||||
| Weighted average remaining lease term (in years): | ||||||||
| Operating leases | 10.60 | 11.00 | ||||||
| Finance leases | 2.85 | 3.06 | ||||||
| Weighted average discount rate: | ||||||||
| Operating leases | 4.78 | % | 4.70 | % | ||||
| Finance leases | 7.17 | % | 4.93 | % | ||||
Supplemental cash flow information related to leases is as follows (in thousands):
| Year Ended September 30, | ||||||||
| 2025 | 2024 | |||||||
| Cash paid for amounts included in measurement of liabilities: | ||||||||
| Operating cash flows - operating leases | $ | 10,827 | $ | 11,105 | ||||
| Operating cash flows - finance leases | $ | 99 | $ | 68 | ||||
| Financing cash flows - finance leases | $ | 746 | $ | 528 | ||||
| Right-of-use assets obtained in exchange for lease liabilities: | ||||||||
| Operating leases | $ | 563 | $ | 9,001 | ||||
| Finance leases | $ | 561 | $ | 596 | ||||
Future lease payments for operating leases as of September 30, 2025 are as follows for the subsequent five fiscal years and thereafter (in thousands):
| Finance Leases | Operating Leases | |||||||
| 2026 | $ | 673 | $ | 9,755 | ||||
| 2027 | 521 | 9,210 | ||||||
| 2028 | 321 | 8,677 | ||||||
| 2029 | 99 | 7,437 | ||||||
| 2030 | 37 | 6,096 | ||||||
| Thereafter | — | 34,624 | ||||||
| Total future lease payments | 1,651 | 75,799 | ||||||
| Less imputed interest | (141 | ) | (17,380 | ) | ||||
| Total lease liability balance | $ | 1,510 | $ | 58,419 | ||||
As of September 30, 2025, in addition to the amounts disclosed above, the Company has lease commitments of approximately $4.5 million for an operating lease that was signed and will commence in the first quarter of fiscal year 2026.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Dec 4, 2025 | Showing above |
| 2024 | Nov 27, 2024 | |
| 2023 | Nov 21, 2023 | |
| 2022 | Nov 25, 2022 | |
| 2021 | Nov 24, 2021 | |
| 2020 | Nov 18, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.