Second Quarter 2026
Filed Aug 5, 2026Second Quarter 2026 GAAP Revenue increased 10% to $266 million; GAAP Net Income was $13 million, and Adjusted EBITDA increased 16% to $61 million; GAAP Diluted EPS was $0.30, and Adjusted Diluted EPS increased 17% to $0.89.
GAAP revenue increased 10.3%, organic revenue growth was 9.3%, and adjusted profitability and operating cash flow increased year over year. The company also guided to greater than 21% revenue growth for the third quarter of 2026 and incorporated Riverpoint Medical into its outlook.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $265.8 million | – | 10.3% |
| Organic Revenue Growthnon-GAAP | 9.3% | – | – |
| Foreign currency exchange rate impact on revenueother | $2.4 million or 1.0% | – | – |
| Operating IncomeGAAP | $18.1 million | – | – |
| Net IncomeGAAP | $12.5 million | – | – |
| Diluted EPSGAAP | $0.30 | – | – |
| Diluted weighted average shares outstandingGAAP | 41.2 million | – | – |
| Adjusted Operating Incomenon-GAAP | $47.5 million | – | – |
| Adjusted Gross Marginnon-GAAP | 47% | – | – |
| Adjusted Diluted EPSnon-GAAP | $0.89 | – | 17.1% |
| Adjusted EBITDAnon-GAAP | $60.7 million | – | 16.4% |
| Adjusted EBITDA Marginnon-GAAP | 22.8% | – | – |
| Operating cash flowGAAP | $64.9 million | – | – |
| Year-to-date operating cash flowGAAP | $116.5 million | – | – |
Third quarter of 2026 and full year 2026 outlook
- RevenueThird quarter of 2026: $300 million to $304 million, or greater than 21% revenue growth. Full year 2026: $1,130 million to $1,140 million, or greater than 15% revenue growth.
- NoteThird quarter of 2026 Adjusted EBITDA: $74 million to $77 million.
- NoteThird quarter of 2026 Adjusted Diluted EPS: $0.95 to $1.00 per diluted share.
- NoteFull year 2026 Adjusted EBITDA: $273 million to $278 million, or greater than 24% growth.
- NoteFull year 2026 Adjusted Diluted EPS: $3.68 to $3.74 per diluted share, or greater than 12% growth.
- NoteGuidance incorporates the expected contribution from the Riverpoint Medical acquisition and assumes no significant changes in foreign exchange rates.
What drove it
- Revenue increased $24.8 million or 10.3% compared to the prior year.
- Organic Revenue Growth was an increase of 9.3%.
- Year-over-year changes in foreign currency exchange rates favorably impacted revenue by $2.4 million or 1.0%.
- Management cited strong bookings, a healthy backlog, new product revenue contributions and disciplined commercial execution.
- The company recently closed the acquisition of Riverpoint Medical.
Concerns
- The company assumes no significant changes in foreign exchange rates in its third-quarter and full-year guidance.
- The company stated that Riverpoint Medical is expected to contribute to future results and cited acquisition-related items among factors that make GAAP reconciliation difficult.
- No segment-level financial results were included in the supplied filing text.
What to watch
- Delivery of third-quarter GAAP revenue guidance of $300 million to $304 million.
- Delivery of third-quarter Adjusted EBITDA guidance of $74 million to $77 million and Adjusted Diluted EPS guidance of $0.95 to $1.00 per diluted share.
- Contribution from the Riverpoint Medical acquisition to revenue growth, gross margins, EBITDA margins and earnings per share.
- Organic Revenue Growth, bookings, backlog and foreign exchange rates.
Balance sheet and cash flow
- Operating cash flow was $64.9 million, compared to $15.1 million in the prior year.
- Year-to-date operating cash flow was $116.5 million compared to $46.8 million in the prior year.
Analysis
Novanta reported a second quarter with broad year-over-year improvement across revenue, earnings and cash generation. GAAP revenue was $265.8 million, compared to $241.0 million, with Organic Revenue Growth of 9.3%. Foreign currency exchange rates favorably impacted revenue by $2.4 million or 1.0%, while management cited strong bookings, backlog, new product revenue contributions and commercial execution.
Profitability increased on both reported and adjusted measures. GAAP operating income was $18.1 million versus $14.9 million, GAAP net income was $12.5 million versus $4.5 million, and GAAP diluted EPS was $0.30 versus $0.12. Adjusted Operating Income was $47.5 million compared with $40.7 million, while Adjusted Diluted EPS increased 17.1% to $0.89 and Adjusted EBITDA increased 16.4% to $60.7 million. The company also reported a 47% Adjusted Gross Margin and a 22.8% Adjusted EBITDA Margin.
Cash generation strengthened materially. Operating cash flow was $64.9 million compared to $15.1 million in the prior year, and year-to-date operating cash flow was $116.5 million compared to $46.8 million. The supplied text did not provide free cash flow, cash, debt, leverage values, dividend activity or share repurchases.
The company recently closed the Riverpoint Medical acquisition and now incorporates its expected contribution into guidance. Management stated that the acquisition roughly doubles recurring medical consumables business to approximately 25% of sales on an annualized basis and increases medical end-market exposure to approximately 60% of revenue. The company expects Riverpoint to be immediately accretive to revenue growth, gross margins, EBITDA margins and earnings per share.
For the third quarter of 2026, Novanta guided GAAP revenue to $300 million to $304 million, or greater than 21% revenue growth, Adjusted EBITDA to $74 million to $77 million, and Adjusted Diluted EPS to $0.95 to $1.00 per diluted share. For full year 2026, it expects GAAP revenue of $1,130 million to $1,140 million, Adjusted EBITDA of $273 million to $278 million, and Adjusted Diluted EPS of $3.68 to $3.74 per diluted share. Guidance assumes no significant changes in foreign exchange rates.
Management, verbatim
Novanta delivered an exceptional second quarter, exceeding expectations across revenue, margins, and profitability.
Matthijs Glastra, Chair and Chief Executive Officer
Revenue increased 10.3% year-over-year to $266 million on a reported basis and grew 9.3% organically, marking our strongest organic growth quarter since the first quarter of 2023. We also delivered a strong Adjusted Gross Margin of 47%, and generated Adjusted EBITDA of $60.7 million, a 16.4% increase year-over-year, representing an Adjusted EBITDA margin of 22.8%.
Matthijs Glastra, Chair and Chief Executive Officer
The acquisition roughly doubles our recurring medical consumables business, to approximately 25% of sales on an annualized basis, and increases our medical end-market exposure to approximately 60% of revenue. It also strengthens our regional manufacturing strategy for FDA-registered products. We expect Riverpoint to be immediately accretive to revenue growth, gross margins, EBITDA margins, and earnings per share.
Matthijs Glastra, Chair and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported metrics.
- GAAP gross profit and GAAP gross margin.
- GAAP operating margin.
- Adjusted gross profit.
- Adjusted operating margin.
- Free cash flow.
- Cash balance.
- Debt balance.
- Net debt.
- Gross Leverage and Net Debt Leverage values.
- Capital return information, including share repurchases and dividends.
- Segment revenue, segment growth rates and segment profitability.
- Third-quarter and full-year 2026 guidance for gross margin, operating expenses and tax rate.
- Previous-release outlook needed to compare actual results with prior guidance.
- A reconciliation table for non-GAAP measures was not included in the supplied filing text.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.