Novanta (NOVT) Q2 2026 earnings summary

Executive summary

• Achieved GAAP revenue of $265.8M in Q2 2026, up 10.3% year-over-year, with 9%–9.3% organic growth and all business units growing organically.

• Closed the largest acquisition in company history, Riverpoint Medical, expected to be immediately accretive to revenue, margins, and EPS, doubling recurring medical consumables and expanding medical end-market exposure to 60% of revenue.

• Net income rose to $12.5M from $4.5M year-over-year; adjusted EBITDA grew 16.4% to $60.7M (22.8% margin); adjusted EPS increased 17% to $0.89.

• Strong new product revenue growth, up over 50% in Q2 and 60% year-to-date, with a vitality index rising to 29%.

• Raised full-year 2026 outlook, now expecting over 15% reported revenue growth and up to 7% organic growth.

Financial highlights

• Adjusted gross margin reached 47.1% in Q2 2026, up from 46.1% year-over-year; gross profit was $125M.

• Operating cash flow for Q2 was $65M, with year-to-date cash flow of $117M, exceeding all of 2025.

• Free cash flow for the quarter was $57.5M, up from $11.7M year-over-year.

• Cash and cash equivalents increased to $719M as of July 3, 2026.

• Net debt improved to negative $480M, reflecting a strong liquidity position.

Outlook and guidance

• Full-year 2026 GAAP revenue expected at $1,130M–$1,140M, with >15% reported and up to 7% organic growth.

• Adjusted EBITDA guidance: $273M–$278M (24%–26% growth); adjusted EPS: $3.68–$3.74 (12%–14% growth).

• Q3 2026 revenue expected at $300M–$304M (21%–23% reported growth, 7%–9% organic).

• Q3 adjusted EBITDA: $74M–$77M (27%–33% growth), with 25% margin; adjusted EPS at $0.95–$1.00.

• Guidance includes Riverpoint Medical acquisition and assumes stable foreign exchange rates.