Novanta (NOVT) FY2025 results: revenue $981 million, up 3.3% on the year
Novanta Inc. (NOVT) reported revenue of $981 million for fiscal 2025, the year ended 31 December 2025, up 3.3% on the year before. Net income was $54 million, down 16.0%, and diluted earnings per share $1.47. The figures are the company's own, from the 10-K it filed with the SEC on 23 February 2026.
this yearthe year beforeHover a bar for its figure.
The year in brief
What management said about the year
Guidance figures: 7 new, 1 kept.
- Q4 GAAP revenue rose 8.5%: Fourth-quarter GAAP revenue rose 8.5%. Acquisitions added 3.4 points and currency added 2.9 points, leaving organic growth at 2.2%.
- Q4 results against prior ranges: The third-quarter release gave fourth-quarter ranges of $253 million to $257 million for revenue and $62 million to $65 million for Adjusted EBITDA. The company reported $258.3 million and $60.7 million.
- Q4 gross margin fell 1.7 points: GAAP gross margin was 43.8% against 45.5%, and adjusted gross margin was 45.5% against 47.0%. Cost of revenue rose to $145.1 million from $129.8 million.
- Q4 operating cash flow declined: Operating cash flow was $8.8 million against $61.6 million. Management attributed the decline to regionalizing manufacturing, which temporarily raised net working capital.
- Total debt reduced to $251 million: Year-end total debt was $250.8 million, down from $451.3 million at the third-quarter end, with cash of $380.9 million.
From this 10-K
Novanta designs and makes components and sub-systems that medical, life science and advanced industrial original equipment manufacturers (OEMs) build into their own products. It was founded in Massachusetts in 1968 as General Scanning, merged with Lumonics in 1999, became GSI Group in 2005 and took the name Novanta in May 2016, after moving away from a focus on the semiconductor industry. It reports two segments, Automation Enabling Technologies and Medical Solutions, and most of each segment's products are sold to OEMs, mostly through its own technical sales force.
The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025
Income statement (profit and loss)
| $ million | FY2025 | FY2024 | FY2023 | On the year | Last 8 years |
|---|---|---|---|---|---|
| Revenue | 981 | 949 | 882 | +3.3% | |
| Cost of revenue | 545 | 528 | 482 | +3.3% | |
| Gross profit | 435 | 422 | 400 | +3.3% | |
| Gross margin | 44.4% | 44.4% | 45.4% | ||
| Research and development | 95.5 | 95.5 | 91.7 | -0.0% | |
| Selling, general and administrative | 196 | 176 | 164 | +11.2% | |
| Operating income | 94.0 | 111 | 110 | -15.0% | |
| Operating margin | 9.6% | 11.6% | 12.5% | ||
| Interest expense | 21.5 | 31.5 | 25.8 | -31.8% | |
| Pre-tax income | 69.6 | 79.1 | 83.7 | -11.9% | |
| Income tax | 15.8 | 15.0 | 10.9 | +5.6% | |
| Effective tax rate | 22.7% | 18.9% | 13.0% | ||
| Net income | 53.8 | 64.1 | 72.9 | -16.0% | |
| Net margin | 5.5% | 6.8% | 8.3% | ||
| Diluted EPS | $1.47 | $1.77 | $2.02 | -16.9% |
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Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.Cash flow
| $ million | FY2025 | FY2024 | FY2023 | On the year | Last 8 years |
|---|---|---|---|---|---|
| Operating cash flow | 64.1 | 159 | 120 | -59.6% | |
| Capital expenditure | 15.6 | 17.2 | 20.0 | -8.9% | |
| Free cash flow | 48.4 | 141 | 100 | -65.7% | |
| Free cash flow margin | 4.9% | 14.9% | 11.4% | ||
| Cash from investing | -74.3 | -208 | -19.9 | ||
| Cash from financing | 276 | 56.9 | -97.9 | +385.3% | |
| Depreciation and amortisation | 61.9 | 55.6 | 46.6 | +11.5% | |
| Share-based compensation | 29.5 | 23.3 | 25.6 | +26.7% | |
| Buybacks | 39.3 | n/a | n/a | ||
| Diluted shares, weighted | 37m | 36m | 36m | +1.6% | |
| Shares outstanding at period end | 36m | 36m | 36m | -0.7% |
Balance sheet
| $ million | FY2025 | FY2024 | FY2023 | On the year | Last 8 years |
|---|---|---|---|---|---|
| Shareholders' equity | 1,314 | 746 | 673 | +76.2% | |
| Debt | 251 | 417 | 354 | -39.8% | |
| Operating lease liabilities | 38.9 | 40.5 | 37.3 | -4.1% | |
| Finance lease liabilities | 2.3 | 3.2 | 3.9 | -26.0% | |
| Other liabilities | 201 | 182 | 157 | +10.0% | |
| Total liabilities and equity | 1,807 | 1,389 | 1,226 | +30.1% | |
| Fixed assets | 118 | 113 | 109 | +4.7% | |
| Goodwill | 647 | 584 | 485 | +10.8% | |
| Intangible assets | 181 | 186 | 145 | -2.7% | |
| Cash and equivalents | 381 | 114 | 105 | +234.1% | |
| Receivables | 185 | 151 | 139 | +22.4% | |
| Inventory | 188 | 145 | 149 | +30.2% | |
| Other assets | 106 | 95.8 | 93.2 | +11.1% | |
| Total assets | 1,807 | 1,389 | 1,226 | +30.1% |
10-K for the year ended 31 December 2025, filed 23 February 2026: the filing.