Revenue growth remains lumpy due to OEM dependency, with quarterly growth fluctuating between 1.1% and 12.5% while gross margins have compressed to 41.8% as of 2026Q1.
| 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 |
|---|
| Sales/Revenue | 1B | 980.6M | 949.25M | 881.66M | 860.9M | 706.79M | 590.62M | 626.1M | 614.34M | 521.29M | 384.76M | 373.6M | 364.71M | 341.61M | 271.5M | 366.28M | 383.52M | 254.39M | 288.47M | 291.08M | 313.61M | 260.78M | 330.01M | 185.56M | 159.07M | 247.9M | 373.86M | 274.6M | 144.2M |
| Revenue Growth % | 5.59% | 3.3% | 7.67% | 2.41% | 21.8% | 19.67% | -5.67% | 1.91% | 17.85% | 35.49% | 2.99% | 2.44% | 6.76% | 25.82% | -25.88% | -4.49% | 50.76% | -11.81% | -0.9% | -7.18% | 20.26% | -20.98% | 77.85% | 16.65% | -35.83% | -33.69% | 36.15% | 90.43% | - |
| Cost of Goods Sold | 588.13M | 572.79M | 527.7M | 481.76M | 482.43M | 406.46M | 346.11M | 364.01M | 352.81M | 300.76M | 222.31M | 215.71M | 214.54M | 202.16M | 157.02M | 205.9M | 217.12M | 156.44M | 190.85M | 177.95M | 183.45M | 156.91M | 196.57M | 117.08M | 109.88M | 167.26M | 239.44M | 167.7M | 96.6M |
| COGS % of Revenue | - | 58.41% | 55.59% | 54.64% | 56.04% | 57.51% | 58.6% | 58.14% | 57.43% | 57.7% | 57.78% | 57.74% | 58.83% | 59.18% | 57.84% | 56.21% | 56.61% | 61.49% | 66.16% | 61.13% | 58.5% | 60.17% | 59.57% | 63.1% | 69.07% | 67.47% | 64.05% | 61.07% | 66.99% |
| Gross Profit | 416.81M | 407.81M | 421.55M | 399.9M | 378.47M | 300.33M | 244.52M | 262.08M | 261.53M | 220.53M | 162.45M | 157.89M | 150.17M | 139.45M | 114.48M | 160.38M | 166.4M | 97.95M | 97.62M | 113.13M | 130.16M | 103.87M | 133.44M | 68.48M | 49.19M | 80.64M | 134.42M | 106.9M | 47.6M |
| Gross Margin % | 41.48% | 41.59% | 44.41% | 45.36% | 43.96% | 42.49% | 41.4% | 41.86% | 42.57% | 42.3% | 42.22% | 42.26% | 41.17% | 40.82% | 42.16% | 43.79% | 43.39% | 38.51% | 33.84% | 38.87% | 41.5% | 39.83% | 40.43% | 36.9% | 30.93% | 32.53% | 35.95% | 38.93% | 33.01% |
| Gross Profit Growth % | - | -3.26% | 5.41% | 5.66% | 26.02% | 22.82% | -6.7% | 0.21% | 18.59% | 35.75% | 2.89% | 5.14% | 7.69% | 21.82% | -28.62% | -3.62% | 69.88% | 0.34% | -13.71% | -13.08% | 25.31% | -22.16% | 94.87% | 39.2% | -39% | -40.01% | 25.74% | 124.58% | - |
| Operating Expenses | 299.97M | 291.14M | 310.96M | 289.4M | 275.39M | 236.27M | 188.63M | 206.8M | 190.51M | 162.97M | 129.5M | 128.96M | 166.97M | 112.78M | 90.63M | 114.14M | 109.9M | 118.78M | 117.21M | 97.42M | 101.74M | 92.42M | 88.14M | 72.56M | 86.49M | 102.32M | 129.19M | 108.6M | 57.1M |
| OpEx % of Revenue | - | 29.69% | 32.76% | 32.82% | 31.99% | 33.43% | 31.94% | 33.03% | 31.01% | 31.26% | 33.66% | 34.52% | 45.78% | 33.01% | 33.38% | 31.16% | 28.66% | 46.69% | 40.63% | 33.47% | 32.44% | 35.44% | 26.71% | 39.1% | 54.37% | 41.27% | 34.56% | 39.55% | 39.6% |
| Selling, General & Admin | 204.47M | 195.66M | 175.94M | 164.46M | 158.9M | 129.16M | 109.85M | 118.41M | 115.9M | 102.03M | 81.69M | 82.05M | 84.38M | 81.45M | 65.58M | 78.66M | 75.61M | 60.22M | 65.9M | 60.13M | 64.87M | 59.99M | 57.26M | 48.95M | 55.48M | 68.67M | 80.95M | 64.7M | 38.5M |
| SG&A % of Revenue | - | 19.95% | 18.54% | 18.65% | 18.46% | 18.27% | 18.6% | 18.91% | 18.87% | 19.57% | 21.23% | 21.96% | 23.14% | 23.84% | 24.16% | 21.47% | 19.71% | 23.67% | 22.85% | 20.66% | 20.69% | 23.01% | 17.35% | 26.38% | 34.88% | 27.7% | 21.65% | 23.56% | 26.7% |
| Research & Development | 95.5M | 95.48M | 95.52M | 91.68M | 85.77M | 72.52M | 61M | 55.97M | 51.02M | 41.67M | 32M | 31.04M | 28.95M | 26.35M | 22.39M | 31.97M | 29.86M | 28.25M | 45.59M | 30.49M | 30.64M | 25.67M | 23.98M | 13.89M | 20.44M | 25.63M | 33.93M | 28.7M | 13M |
| R&D % of Revenue | - | 9.74% | 10.06% | 10.4% | 9.96% | 10.26% | 10.33% | 8.94% | 8.31% | 7.99% | 8.32% | 8.31% | 7.94% | 7.71% | 8.25% | 8.73% | 7.79% | 11.11% | 15.8% | 10.47% | 9.77% | 9.84% | 7.26% | 7.49% | 12.85% | 10.34% | 9.08% | 10.45% | 9.02% |
| Other Operating Expenses | 0 | 0 | 39.5M | 33.26M | 30.72M | 34.6M | 17.78M | 32.43M | 23.59M | 19.27M | 15.8M | 15.87M | 53.64M | 12.66M | 7.02M | 3.52M | 7.75M | 30.11M | 231.25M | 6.81M | 6.23M | 6.76M | 6.91M | 9.72M | 10.56M | 8.01M | 14.31M | 15.2M | 5.6M |
| Operating Income | 116.84M | 116.66M | 110.58M | 110.5M | 103.08M | 64.05M | 55.89M | 55.28M | 71.01M | 57.57M | 32.95M | 28.93M | -16.81M | 19.45M | 15.01M | 43.94M | 53.91M | -20.24M | -245.13M | 22.65M | 28.42M | 11.45M | 45.29M | -4.09M | -37.3M | -21.68M | 5.23M | -1.7M | -9.5M |
| Operating Margin % | 11.63% | 11.9% | 11.65% | 12.53% | 11.97% | 9.06% | 9.46% | 8.83% | 11.56% | 11.04% | 8.57% | 7.74% | -4.61% | 5.69% | 5.53% | 12% | 14.06% | -7.96% | -84.98% | 7.78% | 9.06% | 4.39% | 13.73% | -2.2% | -23.45% | -8.74% | 1.4% | -0.62% | -6.59% |
| Operating Income Growth % | - | 5.5% | 0.08% | 7.2% | 60.93% | 14.61% | 1.1% | -22.15% | 23.36% | 74.68% | 13.9% | 272.16% | -186.42% | 29.58% | -65.85% | -18.49% | 366.39% | 91.74% | -1182.43% | -20.31% | 148.29% | -74.73% | 1208.52% | 89.04% | -72.06% | -514.44% | 407.65% | 82.11% | - |
| EBITDA | 179.37M | 178.6M | 166.15M | 157.11M | 156.24M | 107.45M | 94.18M | 93.56M | 108.06M | 88.32M | 53.31M | 48.05M | 6.99M | 39.65M | 27.46M | 59.21M | 69.56M | -2.91M | -226.22M | 37.11M | 43.27M | 25.16M | 58.91M | 6.35M | -26.38M | -9.76M | 19.54M | 13.5M | -3.9M |
| EBITDA Margin % | 17.85% | 18.21% | 17.5% | 17.82% | 18.15% | 15.2% | 15.95% | 14.94% | 17.59% | 16.94% | 13.86% | 12.86% | 1.92% | 11.61% | 10.12% | 16.16% | 18.14% | -1.14% | -78.42% | 12.75% | 13.8% | 9.65% | 17.85% | 3.42% | -16.58% | -3.94% | 5.23% | 4.92% | -2.7% |
| EBITDA Growth % | 4.81% | 7.49% | 5.75% | 0.56% | 45.41% | 14.09% | 0.66% | -13.42% | 22.35% | 65.67% | 10.96% | 587.27% | -82.37% | 44.38% | -53.61% | -14.89% | 2492.91% | 98.72% | -709.61% | -14.23% | 71.95% | -57.29% | 827.31% | 124.09% | -170.33% | -149.94% | 44.73% | 446.15% | - |
| D&A (Non-Cash Add-back) | 62.53M | 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 | 12.46M | 15.27M | 15.65M | 17.33M | 18.91M | 14.46M | 14.85M | 13.72M | 13.62M | 10.44M | 10.92M | 11.92M | 14.31M | 15.2M | 5.6M |
| EBIT | 116.84M | 116.66M | 124.29M | 123.31M | 107.46M | 82.07M | 59.7M | 71.86M | 79.05M | 65.11M | 40.9M | 37.19M | 26.57M | 24.83M | 14.32M | 38.25M | 39.35M | -44.16M | -241.43M | 22.3M | 28.53M | 11.9M | 46.26M | -858K | -31.87M | -18.89M | 5.23M | -1.7M | -9.5M |
| Net Interest Income | -17.67M | -21.47M | -31.49M | -25.82M | -15.62M | -7.39M | -6.56M | -8.49M | -9.81M | -7.17M | -4.56M | -5.18M | -5.1M | -3.46M | -2.79M | -11.87M | -19.82M | -27.46M | -7.08M | 6.51M | 3.81M | 1.65M | 717K | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 92K | 87K | 294K | 3.31M | 6.64M | 4.63M | 1.94M | 980K | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 17.67M | 21.47M | 31.49M | 25.82M | 15.62M | 7.39M | 6.56M | 8.49M | 9.81M | 7.17M | 4.56M | 5.18M | 5.1M | 3.46M | 2.79M | 11.96M | 19.91M | 27.75M | 10.39M | 128K | 821K | 291K | 263K | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -47.26M | -47.02M | -31.52M | -26.75M | -15.92M | -7.88M | -7.49M | -9.52M | -9.71M | 18.57M | -433K | 17.09M | -1.11M | -4.92M | -3.47M | -11.88M | -43.81M | -51.67M | -6.75M | -474K | 2.38M | 2.42M | -308K | 2.24M | 590K | -797K | 69.81M | -35.7M | -1.8M |
| Pretax Income | 69.58M | 69.64M | 79.07M | 83.75M | 87.16M | 56.17M | 48.4M | 45.77M | 61.3M | 76.13M | 32.52M | 46.02M | -17.91M | 14.53M | 11.53M | 32.06M | 10.1M | -71.91M | -251.88M | 22.17M | 30.8M | 13.86M | 44.99M | -1.85M | -36.7M | -22.47M | 75.04M | -37.4M | -11.3M |
| Pretax Margin % | 6.92% | 7.1% | 8.33% | 9.5% | 10.12% | 7.95% | 8.2% | 7.31% | 9.98% | 14.6% | 8.45% | 12.32% | -4.91% | 4.25% | 4.25% | 8.75% | 2.63% | -28.27% | -87.32% | 7.62% | 9.82% | 5.32% | 13.63% | -1% | -23.07% | -9.06% | 20.07% | -13.62% | -7.84% |
| Income Tax | 15.86M | 15.81M | 14.98M | 10.87M | 13.11M | 5.84M | 3.88M | 4.99M | 10.21M | 13.83M | 10.52M | 10.39M | -1.01M | 5.68M | -10.94M | 3.06M | 10.74M | -773K | -39.03M | 7.48M | 9.06M | 4.21M | 3.52M | 322K | -8.98M | -7.77M | 29.67M | -2.6M | -3.3M |
| Effective Tax Rate % | 22.79% | 22.71% | 18.94% | 12.98% | 15.04% | 10.4% | 8.02% | 10.91% | 16.65% | 18.16% | 32.34% | 22.58% | 5.62% | 39.09% | -94.85% | 9.53% | 106.33% | 1.07% | 15.5% | 33.75% | 29.42% | 30.34% | 7.81% | -17.42% | 24.47% | 34.59% | 39.53% | 6.95% | 29.2% |
| Net Income | 53.72M | 53.83M | 64.09M | 72.88M | 74.05M | 50.33M | 44.52M | 40.77M | 49.11M | 60.05M | 22M | 35.62M | -24.25M | 7.31M | 19.54M | 28.97M | -687K | -71.33M | -203.85M | 15.15M | 21.74M | 9.66M | 41.47M | -2.17M | -27.72M | -14.7M | 45.38M | -34.8M | -8M |
| Net Margin % | 5.35% | 5.49% | 6.75% | 8.27% | 8.6% | 7.12% | 7.54% | 6.51% | 7.99% | 11.52% | 5.72% | 9.53% | -6.65% | 2.14% | 7.2% | 7.91% | -0.18% | -28.04% | -70.67% | 5.21% | 6.93% | 3.7% | 12.57% | -1.17% | -17.43% | -5.93% | 12.14% | -12.67% | -5.55% |
| Net Income Growth % | -23.93% | -16.01% | -12.06% | -1.58% | 47.13% | 13.05% | 9.19% | -16.97% | -18.22% | 172.92% | -38.22% | 246.85% | -431.81% | -62.59% | -32.56% | 4317.32% | 99.04% | 65.01% | -1445.08% | -30.3% | 125.15% | -76.71% | 2011.11% | 92.17% | -88.62% | -132.39% | 230.39% | -335% | - |
| Net Income (Continuing) | 53.72M | 53.83M | 64.09M | 72.88M | 74.05M | 50.33M | 44.52M | 40.77M | 51.09M | 62.31M | 22M | 35.63M | -16.91M | 9.98M | 28.3M | 29M | -639K | -71.14M | -212.85M | 14.69M | 21.74M | 9.66M | 41.47M | -2.17M | -27.72M | -14.7M | 45.38M | -34.8M | -8M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -13K | -7.33M | -2.65M | 0 | 0 | 0 | 0 | 60K | 467K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 46.92M | 0 | 0 | 429K | 419K | 397K | 357K | 329K | 281K | 220K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.31 | 1.47 | 1.77 | 2.02 | 2.06 | 1.41 | 1.25 | 1.15 | 1.43 | 1.13 | 0.63 | 1.02 | -0.70 | 0.21 | 0.58 | 0.86 | -0.03 | -3.91 | -14.18 | 1.05 | 1.53 | 0.69 | 2.94 | -0.16 | -2.04 | -1.09 | 3.39 | -3.43 | -0.70 |
| EPS Growth % | -29.59% | -16.95% | -12.38% | -1.94% | 46.1% | 12.8% | 8.7% | -19.58% | 26.55% | 79.37% | -38.24% | 245.71% | -433.33% | -63.79% | -32.56% | 2966.67% | 99.23% | 72.43% | -1450.48% | -31.37% | 121.74% | -76.53% | 1937.5% | 92.16% | -87.16% | -132.15% | 198.83% | -390% | - |
| EPS (Basic) | - | 1.47 | 1.78 | 2.03 | 2.08 | 1.42 | 1.27 | 1.16 | 1.46 | 1.14 | 0.63 | 1.03 | -0.70 | 0.21 | 0.58 | 0.87 | -0.03 | -3.91 | -14.18 | 1.08 | 1.56 | 0.69 | 3.03 | -0.16 | -2.04 | -1.09 | 3.57 | -3.43 | -0.70 |
| Diluted Shares Outstanding | 41.16M | 36.7M | 36.12M | 36.03M | 35.91M | 35.78M | 35.65M | 35.55M | 35.47M | 35.28M | 34.91M | 34.83M | 34.35M | 34.4M | 33.94M | 33.59M | 23.7M | 15.92M | 14.37M | 14.21M | 14.08M | 13.95M | 14.04M | 13.61M | 13.55M | 13.45M | 13.33M | 10.15M | 11.39M |
| Basic Shares Outstanding | 40.42M | 36.59M | 35.95M | 35.84M | 35.65M | 35.4M | 35.14M | 35.03M | 34.91M | 34.82M | 34.69M | 34.58M | 34.35M | 34.07M | 33.77M | 33.48M | 23.7M | 15.92M | 14.37M | 14.12M | 13.97M | 13.85M | 13.71M | 13.61M | 13.55M | 13.45M | 12.73M | 10.15M | 11.39M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Acquisition integration and margin volatility
According to the provided quarterly income statements, Novanta's revenue growth has fluctuated significantly, ranging from a low of 1.1% in 2025Q1 to a peak of 12.5% in 2024Q4, suggesting that the company's reliance on OEM partnerships creates inherent lumpiness in its top-line expansion trajectory.
The inconsistent growth profile appears to reflect the underlying volatility in semiconductor and industrial capital equipment spending, which often offsets the more stable medical procedure-driven demand. Investors should monitor whether the recent 10.4% growth in 2026Q1 represents a sustainable recovery or merely a timing-related anomaly in OEM order fulfillment.
As reported in financial statements, Novanta's gross margin has experienced a noticeable contraction from a peak of 45.6% in 2023Q4 to 41.8% in 2026Q1, indicating potential pressure from rising input costs or a shift in the product mix toward lower-margin hardware components within its portfolio.
This downward trend in gross profitability suggests that the company may be struggling to pass through inflationary costs to its OEM customers effectively. If this margin erosion persists, it may indicate that the competitive moat surrounding its precision components is not as robust as previously assumed in pricing negotiations.
Based on the company's reported figures, operating income has failed to scale proportionally with revenue, as evidenced by operating margins hovering consistently between 10.9% and 13.3% over the last ten quarters, despite significant top-line growth during the same period of observation.
The lack of meaningful operating leverage suggests that the company's aggressive acquisition strategy is resulting in persistent, duplicated overhead costs across its various brands. Management appears to be struggling to achieve the necessary economies of scale, which may continue to suppress bottom-line profitability until integration efforts are fully realized.
Analysis of the income statement reveals that net income has been highly volatile, dropping to as low as $4.5M in 2025Q2, a trend that appears heavily influenced by non-operating items and significant stock-based compensation expenses that frequently exceed $6M to $8M per quarter.
The disparity between operating income and net income suggests that shareholders should be wary of the quality of reported EPS, as non-cash charges and acquisition-related amortization appear to be masking the true underlying earnings power. Investors should focus on adjusted metrics to determine if the core business is generating sufficient cash to justify these recurring compensation costs.
While Novanta is often viewed as a medical technology enabler, the income statement data suggests a potential conglomerate discount, as the company's reliance on serial acquisitions creates a complex cost structure that may be masking underlying weakness in its core precision motion and photonics business segments.
Short-sellers might focus on the company's inability to expand operating margins despite its scale, which could indicate that the 'string-of-pearls' strategy is failing to produce the expected cross-selling synergies. If organic growth continues to decelerate, the market may begin to re-evaluate the company as a collection of disparate hardware businesses rather than a cohesive, high-growth medical technology platform.
Quick answers to the most common questions about buying NOVT stock.
For fiscal year 2025, Novanta Inc. (NOVT) reported total revenue of $980.6M. This represents a 580.0% increase compared to $144.2M in 1998.
Novanta Inc. (NOVT) is profitable, generating $53.8M in net income for the fiscal year ending 2025 with a net profit margin of 5.5%.
Novanta Inc. (NOVT) reported an operating income of $116.7M, resulting in an operating profit margin of 11.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Novanta Inc. (NOVT) generated $407.8M in gross profit for the year, representing a gross profit margin of 41.6%. This demonstrates the company's core pricing power and production efficiency.