Novanta (NOVT) Q2 2026 earnings summary

Executive summary

• Achieved GAAP revenue of $265.8 million in Q2 2026, up 10.3% year-over-year, with organic growth of 9.3% 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.

• Operating income rose 21.1% to $18.1 million, net income reached $12.5 million, and adjusted EBITDA grew 16.4% to $60.7 million.

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

• Accelerated manufacturing transformation with two additional factory closures planned by Q1 2027.

Financial highlights

• Adjusted gross margin reached 47.1% in Q2 2026, up from 46.1% year-over-year; gross profit was $125 million (47% margin).

• Adjusted EBITDA grew 16% year-over-year to $60.7 million (23% margin); adjusted EPS rose 17% to $0.89.

• Operating cash flow for Q2 was $65 million, with YTD cash flow of $117 million, exceeding all of 2025.

• Cash and cash equivalents increased to $718.7 million as of July 3, 2026; net debt improved to negative $479.9 million.

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

Outlook and guidance

• Full-year 2026 GAAP revenue expected at $1,130–$1,140 million, with adjusted EBITDA of $273–$278 million (24–26% growth) and adjusted EPS of $3.68–$3.74 (12–14% growth).

• Q3 2026 GAAP revenue guidance: $300–$304 million (21–23% reported growth, 7–9% organic).

• Q3 adjusted EBITDA expected at $74–$77 million (27–33% growth), with a 25% margin.

• Q3 adjusted EPS guidance: $0.95–$1.00 (10–15% growth).

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