Novanta Announces Financial Results
NOVANTA INC (NOVT) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 FOR IMMEDIATE RELEASE November 9, 2026 Novanta Announces Financial Results for the Third Quarter 2026 • Third Quarter 2026 GAAP Revenue increased 23% to $305 million • Third Quarter 2026 GAAP Net Income was $2 million, and Adjusted EBITDA increased 38% to $80 million
How this was made
The 30-second read
Why it matters
The earnings beat and forward guidance are likely to attract buying pressure, especially from investors focused on growth in medical and advanced technology equipment markets.
Market read
Strong Q3 performance and optimistic 2027 outlook position Novanta for potential short‑term upside, with broader implications for the med‑tech sector.
What to watch
Potential integration risks from the recent acquisition could temper upside.
Novanta Q3 2026 GAAP revenue rose 23.1% to $305.0 million, with Adjusted EBITDA up 38.3%, while GAAP net income fell to $2.0 million
Revenue, organic growth, Adjusted EBITDA and Adjusted Diluted EPS all grew, and operating cash flow improved sharply. GAAP operating income ($13.9 million vs $21.8 million) and GAAP net income ($2,017 thousand vs $10,653 thousand) declined, restructuring, acquisition and related costs rose to $23,086 thousand from $6,677 thousand, and Medical Solutions gross margin fell to 39.9% from 43.0%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| GAAP revenue, Q3 2026GAAP | $305.0M | – | 23.1% |
| Organic revenue growth, Q3 2026non-GAAP | 9.9% | – | – |
| Revenue change attributable to acquisitions, Q3 2026other | $32.9 million or 13.3% | – | – |
| Foreign currency impact on revenue, Q3 2026 (unfavorable)other | $0.3 million or -0.1% | – | – |
| Cost of revenue, Q3 2026GAAP | $169.4M | – | – |
| Gross profit, Q3 2026GAAP | $135.6M | – | – |
| Gross profit margin, Q3 2026GAAP | 44.5% | – | – |
| Adjusted gross profit, Q3 2026non-GAAP | $143.2M | – | – |
| Adjusted gross profit margin, Q3 2026non-GAAP | 47.0% | – | – |
| Research and development and engineering, Q3 2026GAAP | $26.35M | – | – |
| Selling, general and administrative, Q3 2026GAAP | $57.62M | – | – |
| Amortization of purchased intangible assets, Q3 2026GAAP | $14.68M | – | – |
| Restructuring, acquisition, and related costs, Q3 2026GAAP | $23.09M | – | – |
| Total operating expenses, Q3 2026GAAP | $121.7M | – | – |
| Operating income, Q3 2026GAAP | $13.9M | – | – |
| Interest income (expense), net, Q3 2026GAAP | −$8.28M | – | – |
| Income tax provision, Q3 2026GAAP | $4.33M | – | – |
| Net income, Q3 2026GAAP | $2M | – | – |
| Diluted EPS, Q3 2026GAAP | $0.05 | – | – |
| Adjusted operating income, Q3 2026non-GAAP | $65.1M | – | – |
| Adjusted operating margin, Q3 2026non-GAAP | 21.3% | – | – |
| Adjusted EBITDA, Q3 2026non-GAAP | $80.3M | – | 38.3% |
| Adjusted EBITDA margin, Q3 2026non-GAAP | 26.3% | – | 290 basis points |
| Adjusted Diluted EPS, Q3 2026non-GAAP | $1.05 | – | 20.7% |
| Operating cash flow, Q3 2026GAAP | $39.3M | – | – |
| Free cash flow, Q3 2026non-GAAP | $31.51M | – | – |
| Operating cash flow, year to date 2026 (nine months)GAAP | $155.9M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Automation Enabling TechnologiesGross profit was $72,913 thousand vs $59,214 thousand, with GAAP gross profit margin of 50.2% vs 47.3%. Adjusted gross profit margin was 50.9% vs 48.4%. The filing does not state a cause for the revenue change. | $145,355 thousand (Q3 2026); prior year $125,316 thousand | – | – |
| Medical SolutionsGross profit was $63,645 thousand vs $52,697 thousand, with GAAP gross profit margin of 39.9% vs 43.0%. Adjusted gross profit margin was 43.9% vs 45.3%. The company says Riverpoint Medical is performing in line with expectations, but the filing does not attribute the margin change to a specific cause. | $159,653 thousand (Q3 2026); prior year $122,520 thousand | – | – |
Q4 2026 and full year 2026 outlook
- RevenueQ4 2026 GAAP revenue $306 million to $312 million (reported growth of more than 18%); FY2026 GAAP revenue $1,135 million to $1,140 million (reported growth of approximately 16%)
- NoteQ4 2026 Adjusted EBITDA $76 million to $79 million (non-GAAP)
- NoteQ4 2026 Adjusted Diluted EPS $0.91 to $0.96 per diluted share, or 0% to 5% growth (non-GAAP)
- NoteFY2026 Adjusted EBITDA $274 million to $277 million (non-GAAP), described as more than 24% growth
- NoteFY2026 Adjusted Diluted EPS $3.66 to $3.71 per diluted share, or 11% to 13% growth (non-GAAP)
- NoteFY2026 organic revenue growth of approximately 7% (non-GAAP)
- NoteFY2026 operating cash flow of approximately $200 million
- Note2027 reported revenue growth of more than 15% (CEO statement)
- NoteGuidance assumes no significant changes in foreign exchange rates
Capital returns
- No repurchases of common shares were printed for Q3 2026 (shown as a dash); the prior-year quarter shows repurchases of $(14,056) thousand.
- Proceeds from issuance of shares in private placement, net of issuance costs, were $(428) thousand in Q3 2026. No dividend was printed in the filing.
What drove it
- The company states that acquisition activities resulted in a net increase in revenue of $32.9 million or 13.3%.
- The company states that changes in foreign currency exchange rates unfavorably impacted revenue by $0.3 million or -0.1%.
- The CEO states that customer bookings increased 29% and that backlog expanded to $543 million.
- The CEO states that Riverpoint Medical is performing in line with expectations and that the company is making progress on operational synergies.
- Operating cash flow was $39.3 million vs $8.5 million, and the company's cash flow statement shows changes in other operating assets and liabilities of 19,398 thousand in Q3 2026 vs (1,773) thousand.
Concerns
- GAAP operating income fell to $13.9 million from $21.8 million while GAAP revenue rose 23.1%.
- GAAP net income fell to $2,017 thousand from $10,653 thousand, and GAAP diluted EPS fell to $0.05 from $0.30.
- Restructuring, acquisition, and related costs rose to $23,086 thousand from $6,677 thousand, and amortization of purchased intangible assets rose to $14,679 thousand from $6,928 thousand.
- Medical Solutions GAAP gross profit margin fell to 39.9% from 43.0%, and Adjusted gross profit margin fell to 43.9% from 45.3%. The filing does not state a cause.
- The effective tax rate on GAAP results is 68.2% for Q3 2026 (calculated in the reconciliation table as printed), vs a printed rate of 32.4% in the prior-year quarter.
- Net debt rose to $689,421 thousand from a net cash position of $(121,316) thousand at December 31, 2025, following the $1,200,600 thousand acquisition payment and $626,000 thousand of credit facility borrowings.
- Cash and cash equivalents fell to $149,218 thousand from $380,871 thousand at December 31, 2025.
- The risk factors section cites the company's ability to fund the Riverpoint Medical milestone payment when due and to maintain compliance with financial covenants, including its leverage ratio.
What to watch
- Conversion of the 29% growth in customer bookings and the $543 million backlog into revenue in Q4 2026 and 2027.
- Medical Solutions gross profit margin (39.9% GAAP) following the Riverpoint Medical acquisition.
- Delivery against Q4 2026 GAAP revenue guidance of $306 million to $312 million and Adjusted Diluted EPS guidance of $0.91 to $0.96.
- Restructuring, acquisition and related costs, which were $23,086 thousand in Q3 2026, and the gap between GAAP and non-GAAP operating income.
- Net debt of $689,421 thousand and the company's leverage ratios, which the filing says depend partly on future combined performance.
- Timing of the Riverpoint Medical milestone payment and the company's ability to fund it.
Balance sheet and cash flow
- Cash and cash equivalents: $149,218 thousand at October 2, 2026 vs $380,871 thousand at December 31, 2025.
- Total debt (GAAP): $829,826 thousand at October 2, 2026 vs $250,829 thousand at December 31, 2025. Gross debt (including deferred financing costs): $838,639 thousand vs $259,555 thousand.
- Net debt (non-GAAP): $689,421 thousand at October 2, 2026 vs $(121,316) thousand at December 31, 2025.
- Long-term debt: $780,949 thousand at October 2, 2026 vs $212,538 thousand at December 31, 2025. Current portion of long-term debt: $48,877 thousand vs $38,291 thousand.
- Total assets: $3,173,046 thousand at October 2, 2026 vs $1,807,106 thousand at December 31, 2025. Goodwill: $1,431,941 thousand vs $647,348 thousand. Intangible assets, net: $893,910 thousand vs $180,776 thousand.
- Total stockholders' equity: $1,624,509 thousand at October 2, 2026 vs $1,314,287 thousand at December 31, 2025.
- Cash paid for business acquisition, net of working capital adjustments: $(1,200,600) thousand in Q3 2026 vs $(1,118) thousand in the prior-year quarter. Borrowings under senior credit facilities: $626,000 thousand vs none printed in the prior-year quarter.
- Purchases of property, plant and equipment: $(8,966) thousand vs $(4,283) thousand.
Analysis
Novanta reported third quarter 2026 GAAP revenue of $305,008 thousand, up 23.1% from $247,836 thousand. The company attributes $32.9 million, or 13.3 points, of that growth to acquisitions and $0.3 million, or -0.1 points, to foreign exchange, which leaves organic revenue growth of 9.9% as a non-GAAP measure. Segment revenue was $145,355 thousand in Automation Enabling Technologies (vs $125,316 thousand) and $159,653 thousand in Medical Solutions (vs $122,520 thousand). The CEO states that customer bookings rose 29% and that backlog reached $543 million, which the filing presents as support for future growth.
Profitability diverges by measure. On a non-GAAP basis, Adjusted EBITDA rose to $80,343 thousand from $58,111 thousand, a 38.3% increase, and the Adjusted EBITDA margin was 26.3% vs 23.4%. Adjusted Diluted EPS was $1.05 vs $0.87. On a GAAP basis, operating income fell to $13.9 million from $21.8 million, net income fell to $2,017 thousand from $10,653 thousand, and diluted EPS was $0.05 vs $0.30. The gap is driven by the line items the company itself excludes from non-GAAP results. Restructuring, acquisition and related costs rose to $23,086 thousand from $6,677 thousand, and amortization of purchased intangible assets rose to $14,679 thousand from $6,928 thousand. Interest expense, net was $(8,284) thousand vs $(6,014) thousand.
Gross margin is mixed by segment. Consolidated GAAP gross margin was 44.5% vs 44.8%. Automation Enabling Technologies improved to 50.2% from 47.3%. Medical Solutions declined to 39.9% from 43.0%, and its adjusted margin fell to 43.9% from 45.3%. The filing does not explain the Medical Solutions decline, and the reader should weigh it against the company's statement that Riverpoint Medical is performing in line with expectations.
Cash generation improved. Operating cash flow was $39.3 million vs $8.5 million, and free cash flow (non-GAAP) was $31,510 thousand vs $4,212 thousand. Year-to-date operating cash flow was $155.9 million vs $55.3 million. Capital deployment was dominated by the Riverpoint Medical acquisition: $1,200,600 thousand of cash paid for the business, funded in part by $626,000 thousand of borrowings under senior credit facilities. No share repurchases were printed for the quarter, vs $14,056 thousand a year earlier. Cash fell to $149,218 thousand from $380,871 thousand at December 31, 2025, and net debt rose to $689,421 thousand from a net cash position of $(121,316) thousand. Total assets rose to $3,173,046 thousand from $1,807,106 thousand, with goodwill and intangibles rising sharply.
The guidance covers Q4 2026 and full year 2026. For Q4, the company expects GAAP revenue of $306 million to $312 million, Adjusted EBITDA of $76 million to $79 million, and Adjusted Diluted EPS of $0.91 to $0.96. For full year 2026 it expects GAAP revenue of $1,135 million to $1,140 million (reported growth of about 16%), Adjusted EBITDA of $274 million to $277 million, Adjusted Diluted EPS of $3.66 to $3.71, organic revenue growth of about 7%, and operating cash flow of about $200 million. The filing uses the words "now expects" for the full year, but no prior outlook was supplied, so no change in guidance is asserted here. The company also expects reported revenue growth of more than 15% in 2027. The main items to monitor are the GAAP-to-non-GAAP gap, the Medical Solutions margin, and the leverage that resulted from the acquisition.
Management, verbatim
The third quarter marked a significant milestone for Novanta as we closed the largest acquisition in our history and delivered strong financial results that exceeded our expectations,
Matthijs Glastra, Chair and Chief Executive Officer
Riverpoint Medical is performing in line with expectations as we continue to make meaningful progress on our operational synergies, while driving an exciting new product pipeline.
Matthijs Glastra, Chair and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-period outlook was not provided, so no comparison against prior guidance is made.
- Prior-year quarter change for GAAP net income, gross profit, cost of revenue and operating expense lines in dollars or percent is not printed.
- Basis-point change in consolidated GAAP gross margin and Adjusted gross margin is not printed.
- Segment prior-year percentage change for Automation Enabling Technologies and Medical Solutions revenue is not printed.
- Prior-quarter (Q2 2026) figures are not provided.
- Nine-month or year-to-date income statement lines (other than operating cash flow) are not printed.
- Gross margin, operating expense, and tax rate guidance is not provided.
- Share-price reaction and analyst consensus estimates are not provided.
- Cash, total debt, net debt and total assets at December 31, 2025 are balance-sheet comparisons, not period-over-period changes, so they are not placed in prior_year fields.
- Gross leverage and net debt leverage ratios are not printed in the filing.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Novanta Inc. (NASDAQ: NOVT) released its Form 8‑K earnings filing for Q3 2026, highlighting revenue growth, adjusted EBITDA expansion, and forward guidance for 2027.
Ticker impact
Novanta reported Q3 2026 results with 23% revenue growth and issued guidance for 2027 revenue growth above 15%, indicating strong operational momentum.
likely upside as investors price in stronger revenue growth and higher adjusted EBITDA guidance
The company posted higher-than-expected revenue and adjusted EBITDA, and provided guidance that exceeds prior expectations, which typically drives buying interest.
Market effects
May boost sentiment for the medical technology and automation equipment sectors.
Positive for U.S. healthcare equipment manufacturers.
Limited to investors tracking mid‑cap growth stocks.
Counterpoint
If the market has already priced in the guidance, the stock could face short‑term profit taking.
Key entities
- companyNovanta Inc.
Medical and advanced technology equipment solutions provider.
- executiveMatthijs Glastra
Chair and CEO of Novanta, quoted on the results and guidance.
