Free cash flow rebounded to a 39.5% margin in 2026Q2, but cash conversion is volatile (OCF/NI swung from 9.3x to 0.5x), and buybacks of $18.6M persist despite SBC exceeding net income, suggesting potential overstatement of economic value.
Novanta Inc. (NOVT) cash flow statement — 28-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Cash from Operations | 184.15M | 64.06M | 158.51M | 120.08M | 90.78M | 94.63M | 140.24M | 63.25M | 89.65M | 63.38M | 47.79M | 33.42M | 42.29M | 49.2M | 28.43M | 45.17M | -4.74M | -25.79M | 38.9M | 37.49M | 35.26M | 4.86M | 35.4M | 21.83M | 11.72M | -17.48M | -10.22M | -4.4M | -7M |
| Operating CF Margin % | - | 6.53% | 16.7% | 13.62% | 10.54% | 13.39% | 23.74% | 10.1% | 14.59% | 12.16% | 12.42% | 8.94% | 11.6% | 14.4% | 10.47% | 12.33% | -1.24% | -10.14% | 13.49% | 12.88% | 11.24% | 1.87% | 10.73% | 11.76% | 7.37% | -7.05% | -2.73% | -1.6% | -4.85% |
| Operating CF Growth % | 583.21% | -59.59% | 32.01% | 32.27% | -4.06% | -32.53% | 121.73% | -29.45% | 41.45% | 32.62% | 43.01% | -20.98% | -14.05% | 73.06% | -37.06% | 1053.42% | 81.63% | -166.28% | 3.77% | 6.33% | 624.84% | -86.26% | 62.17% | 86.28% | 167.04% | -71.02% | -132.27% | 37.14% | - |
| Net Income | 61.76M | 53.83M | 64.09M | 72.88M | 74.05M | 50.33M | 44.52M | 40.77M | 50.89M | 62.31M | 22M | 35.63M | -16.91M | 7.31M | 19.58M | 29M | -639K | -71.27M | -212.58M | 15.15M | 21.74M | 9.66M | 41.47M | -2.17M | -27.72M | -14.7M | 45.38M | -34.8M | -8M |
| Depreciation & Amortization | 75.76M | 61.93M | 55.56M | 46.61M | 53.16M | 43.39M | 38.29M | 38.28M | 37.05M | 30.76M | 20.36M | 19.11M | 23.8M | 20.21M | 13.68M | 15.27M | 15.65M | 17.33M | 18.91M | 14.85M | 14.85M | 13.72M | 13.62M | 10.44M | 10.92M | 11.92M | 14.31M | 15.2M | 5.6M |
| Stock-Based Compensation | 34.57M | 29.54M | 23.31M | 25.59M | 23.11M | 25.61M | 23.12M | 9.34M | 7.71M | 5.49M | 4.29M | 4.39M | 4.33M | 5.57M | 4.58M | 3.28M | 2.05M | 2.05M | 2.76M | 940K | 0 | 0 | 0 | 208K | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -12.03M | -8.85M | -15.91M | -14.73M | -18.65M | -3.94M | -4.11M | -4.33M | -6.08M | -2.56M | -1.77M | -1.69M | -6.74M | 3.04M | -14.98M | 78K | 5.55M | 1.36M | -33.67M | 1.06M | 3.56M | -2.46M | -15.38M | 48K | 4.27M | 6.69M | -3.61M | -1.7M | -1.3M |
| Other Non-Cash Items | 17.34M | 2.74M | 12.55M | 11.05M | 3.85M | 6.25M | -1.12M | 6.63M | 3M | -18.77M | 4.67M | -17.59M | 40.84M | 3.77M | 6.48M | 8.72M | 4.93M | 32.46M | 231.46M | 5.49M | 656K | 386K | 257K | 382K | 2.57M | -116.93M | -75.94M | 14.6M | 300K |
| Working Capital Changes | -14.35M | -75.13M | 18.92M | -21.33M | -44.74M | -27.01M | 39.54M | -27.44M | -2.93M | -13.85M | -1.77M | -6.43M | -3.03M | 9.3M | -910K | -11.17M | -32.28M | -7.72M | 32.02M | 0 | -5.55M | -16.43M | -4.56M | 12.92M | 21.68M | 95.55M | 9.65M | 2.3M | -3.6M |
| Change in Receivables | -10.93M | -27.27M | -6.19M | -127K | -23.25M | -25.36M | 18.03M | -3.6M | -1.16M | -2.08M | -6.39M | -7.53M | 3.53M | 9.02M | 2.26M | 4.82M | 880K | 880K | 37.76M | 1.96M | 1.96M | 1.89M | -992K | -6.22M | 9.36M | 0 | 0 | 0 | 0 |
| Change in Inventory | -35.75M | -36.1M | 4.78M | 11.37M | -48.55M | -19.08M | 22.1M | -7.4M | -15.6M | -13.59M | -2.92M | -3.34M | -991K | 690K | -4.36M | -6.06M | 139K | 7.51M | 19.9M | 6.85M | -6.55M | -5.75M | -12.72M | 8.27M | 19.63M | 8.92M | -13.51M | 6.1M | -8.3M |
| Change in Payables | 55.8M | 3.71M | 13.06M | -20.45M | 30.33M | 24.52M | -14.48M | -14.8M | 11.24M | 8.99M | 10.59M | 2.17M | -4.7M | 0 | 3.78M | -3.96M | 0 | -1.9M | -8.02M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -24.07M | -74.32M | -208.19M | -19.89M | -42.54M | -306.7M | -13.16M | -63.84M | -45.59M | -177.38M | -12.87M | -1.63M | -89.77M | -72.96M | 2.98M | -4.22M | 8.75M | 19.71M | -338.4M | -7.64M | 32.8M | -14.97M | -22.57M | -41.66M | -23.84M | 12.44M | 35.84M | -900K | -14.8M |
| Capital Expenditures | -23.7M | -15.63M | -17.16M | -19.96M | -19.64M | -22.18M | -10.52M | -10.74M | -14.66M | -9.09M | -8.46M | -5.55M | -5.42M | -4.99M | -4.31M | -4.22M | -2.66M | -1.32M | -17.95M | -4.83M | -8.56M | -3.55M | -2.41M | -21.62M | -2.95M | -8.64M | -10.14M | -13.9M | -15.1M |
| CapEx % of Revenue | 2.3% | 1.59% | 1.81% | 2.26% | 2.28% | 3.14% | 1.78% | 1.72% | 2.39% | 1.74% | 2.2% | 1.49% | 1.48% | 1.46% | 1.59% | 1.15% | 0.69% | 0.52% | 6.22% | 1.66% | 2.73% | 1.36% | 0.73% | 11.65% | 1.86% | 3.48% | 2.71% | 5.06% | 10.47% |
| Acquisitions | -773K | -64.29M | -191.2M | 0 | -21.57M | -284.73M | 0 | -53.14M | -29.6M | -168.33M | -8.96M | 3.58M | -88.24M | -80.77M | 0 | 0 | 0 | 0 | 0 | -3.01M | 13.16M | -71K | -54.53M | -44.3M | 0 | 45.82M | -7.14M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 404K | 5.6M | 173K | 69K | -1.33M | 200K | -2.63M | 42K | -1.33M | 46K | 4.55M | 336K | 3.88M | 12.8M | 7.28M | 0 | 0 | 4.05M | -320.45M | -26.47M | 1.53M | 7.34M | -367K | 824K | 1.98M | -1.22M | 65.8M | 4.8M | 300K |
| Cash from Financing | 455.88M | 276.33M | 56.94M | -97.85M | -60.15M | 204.75M | -84.36M | -3.94M | -60.16M | 143.33M | -23.19M | -21.54M | 40.28M | 18.57M | -21.11M | -43.09M | -11.56M | 0 | 196.93M | 758K | 2.13M | 850K | 3.23M | 799K | -8.23M | -6.28M | 61.19M | 5.4M | -2.7M |
| Debt Issued (Net) | -344.06M | -287.63M | 66.93M | -86.55M | 8.42M | 238.88M | -35.39M | 16.1M | -19.39M | 149.84M | -16.25M | -17.5M | 43.5M | 21.5M | -18M | -40.11M | -76.45M | 0 | 210M | 0 | 0 | -26K | 0 | 0 | -9.44M | -8.12M | -15.8M | 4.9M | -2.3M |
| Equity Issued (Net) | 833.45M | 575.11M | 0 | -10.56M | -10M | 0 | -5.5M | -16.93M | -9.41M | -2.46M | -1.63M | -3.57M | -1.67M | -526K | 0 | 0 | 64.89M | 0 | -6.38M | 335K | 1.09M | 876K | 3.23M | 799K | 1.21M | 1.84M | 76.99M | 500K | -400K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -70.69M | -39.28M | 0 | -10.56M | -10M | 0 | -5.5M | -10M | -5.85M | -370K | -1.63M | -1.63M | -1.67M | -526K | -543K | 0 | 0 | 0 | -6.44M | -7.84M | -3.77M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -600K |
| Other Financing | -33.51M | -11.15M | -9.99M | -738K | -58.57M | -34.12M | -43.47M | -3.1M | -31.36M | -4.05M | -5.3M | -467K | -1.55M | -2.4M | -3.11M | -2.99M | 0 | 0 | -6.69M | 423K | 1.03M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | 616.67M | 266.88M | 8.94M | 4.95M | -17.29M | -7.66M | 46.11M | -3.1M | -18.01M | 31.95M | 8.15M | 8.81M | -9.83M | -4.81M | 10.95M | -1.95M | -6.55M | -5.67M | -103.39M | 33.4M | 69.03M | -13.05M | 18.3M | -19.6M | -19.33M | -10.9M | 88.59M | 1.1M | -26.1M |
| Free Cash Flow | 160.45M | 48.43M | 141.35M | 100.11M | 71.14M | 72.45M | 129.72M | 52.51M | 74.99M | 54.28M | 39.33M | 27.86M | 36.87M | 44.21M | 24.12M | 40.96M | -7.4M | -27.11M | -334.73M | 32.95M | 26.69M | 1.31M | 32.99M | 203K | 8.77M | -26.12M | -20.36M | -18.3M | -22.1M |
| FCF Margin % | 15.58% | 4.94% | 14.89% | 11.36% | 8.26% | 10.25% | 21.96% | 8.39% | 12.21% | 10.41% | 10.22% | 7.46% | 10.11% | 12.94% | 8.88% | 11.18% | -1.93% | -10.66% | -116.04% | 11.32% | 8.51% | 0.5% | 10% | 0.11% | 5.51% | -10.54% | -5.45% | -6.66% | -15.33% |
| FCF Growth % | 36.14% | -65.74% | 41.19% | 40.74% | -1.81% | -44.15% | 147.05% | -29.98% | 38.14% | 38.04% | 41.14% | -24.43% | -16.6% | 83.28% | -41.1% | 653.68% | 72.71% | 91.9% | -1115.78% | 23.45% | 1933.05% | -96.02% | 16149.75% | -97.68% | 133.56% | -28.26% | -11.27% | 17.19% | - |
| FCF per Share | 3.90 | 1.32 | 3.91 | 2.78 | 1.98 | 2.02 | 3.64 | 1.48 | 2.11 | 1.54 | 1.13 | 0.80 | 1.07 | 1.29 | 0.71 | 1.22 | -0.31 | -1.70 | -23.29 | 2.32 | 1.90 | 0.09 | 2.35 | 0.01 | 0.65 | -1.94 | -1.53 | -1.80 | -1.94 |
| FCF Conversion (FCF/Net Income) | 2.60x | 1.19x | 2.47x | 1.65x | 1.23x | 1.88x | 3.15x | 1.55x | 1.83x | 1.06x | 2.17x | 0.94x | -1.74x | 6.73x | 1.46x | 1.56x | 6.90x | 0.36x | -0.19x | 2.47x | 1.62x | 0.50x | 0.85x | -10.06x | -0.42x | 1.19x | -0.23x | 0.13x | 0.88x |
| Interest Paid | 10.48M | 22.57M | 32.67M | 25.3M | 14.26M | 6.21M | 5.53M | 8.39M | 8.92M | 5.83M | 2.92M | 3.78M | 3.79M | 2.29M | 2.07M | 12.46M | 25.9M | 22.78M | 156K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 16.22M | 38.67M | 21.15M | 36.9M | 20.29M | 11.3M | 5.88M | 14.26M | 20.32M | 21.12M | 14.06M | 10.69M | 6.09M | 2.2M | 3.44M | 1.91M | 2.15M | 954K | 1.34M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying NOVT stock.
Novanta Inc. (NOVT) generated $64.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Novanta Inc. (NOVT) generated $48.4M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Novanta Inc. (NOVT) spent $15.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Novanta Inc. (NOVT) spent $39.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
SBC dilution and working capital swings
Metrics are mathematically derived from official filings.
Cash Conversion Volatility Signals Earnings Quality
Operating cash flow to net income swung from 9.3x in 2026Q2 to 0.5x in 2025Q4, per reported figures, indicating significant timing effects and potential earnings quality concerns.
The OCF/NI ratio of 9.29 in 2026Q2 is exceptionally high, driven by a $36.2M working capital inflow, while 2025Q4's ratio of 0.50 reflects a $33.4M working capital outflow. This volatility suggests that reported net income may not consistently translate into cash, and investors should monitor the sustainability of working capital swings.
Free Cash Flow Rebounding but Uneven
FCF margin improved to 39.5% in 2026Q2 from 2.0% in 2025Q4, as reported in financial statements, but the trajectory remains lumpy with negative working capital impacts in prior quarters.
The 2026Q2 FCF of $104.9M is the highest in the ten-quarter period, but it follows a weak 2025Q4 and 2025Q3 where FCF margins were 2.0% and 1.7%, respectively. This unevenness suggests that FCF is heavily influenced by working capital timing, and the recent surge may not be sustainable without consistent operational improvements.
Capital Expenditures Remain Modest
CapEx intensity averaged 1.8% of revenue over the past ten quarters, per reported data, indicating a light-asset model with minimal maintenance or growth investment.
CapEx/Revenue has stayed below 3% in all quarters, with 2026Q2 at 4.4% being the highest, but still low for an industrial manufacturer. This suggests that Novanta's growth is not capital-intensive, and the company may be underinvesting in capacity or technology, which could limit future expansion.
Working Capital Swings Drive Cash Flow
Working capital changes ranged from +$36.2M in 2026Q2 to -$33.4M in 2025Q4, as per financial statements, highlighting significant volatility that overshadows operating earnings.
The large positive working capital inflow in 2026Q2 and 2024Q4 contrasts with outflows in 2025Q3 and 2025Q4, suggesting that cash flow is heavily influenced by timing of receivables, payables, and inventory. This volatility may indicate aggressive collection or payment practices, and investors should assess the sustainability of these swings.
Buybacks Persist Despite Cash Flow Variability
Share repurchases totaled $18.6M in 2026Q2 and $18.6M in 2026Q1, per reported data, while dividends remained zero, indicating a preference for buybacks over income distribution.
Buybacks have been consistent in recent quarters, even during periods of weak operating cash flow, suggesting a commitment to returning capital to shareholders. However, with no dividends and significant acquisition outflows in 2025Q2 and 2024Q1, the company appears to be balancing shareholder returns with M&A activity, which may strain liquidity if cash flow deteriorates.
Cumulative Cash Generation Exceeds Net Income
Over the past ten quarters, cumulative operating cash flow of $389.4M surpassed cumulative net income of $151.5M, per reported figures, indicating strong cash conversion but with notable timing distortions.
The cumulative OCF/NI ratio of 2.57 suggests that Novanta has generated significantly more cash than reported earnings, partly due to working capital inflows and non-cash charges like D&A and SBC. However, this divergence may also reflect aggressive working capital management, and the quality of earnings warrants further investigation.
What Could Invalidate the Base Case
Stock-based compensation of $19.6M in 2026Q2 exceeded net income, per reported figures, suggesting that reported earnings may overstate economic value creation and cash flow sustainability.
The elevated SBC, combined with volatile working capital swings, may indicate that operating cash flow is not as robust as it appears. If SBC continues to outpace net income and working capital tailwinds reverse, the company's cash generation could deteriorate, challenging the current valuation and shareholder returns.