Revenue growth accelerated to 10.3% YoY in 2026Q2 reaching $265.8M, yet operating margin fell to 6.8% as SG&A surged 27.4% YoY and SBC spiked to $19.6M, indicating margin pressure despite gross margin expansion to 45.5%.
Novanta Inc. (NOVT) annual income statement — 28-year revenue, gross profit & net income history
| 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 | 1.03B | 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 % | 7.61% | 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 | 591.85M | 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 | 437.85M | 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 % | 42.52% | 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 | 330.43M | 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 | 217.34M | 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 | 94.18M | 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 | 1000K | 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 | 107.42M | 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 % | 10.43% | 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 | 153.31M | 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 % | 14.89% | 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 % | -12.08% | 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) | 46.95M | 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 | 92.65M | 91.11M | 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 | -12.96M | -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 | 12.96M | 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 | -27.73M | -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 | 79.69M | 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 % | 7.74% | 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 | 17.92M | 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 % | 22.49% | 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 | 61.76M | 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 % | 6% | 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 % | 0.66% | -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) | 61.76M | 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) | 1.50 | 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 % | -8.24% | -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 | 41.01M | 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 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
SBC dilution and margin volatility
Metrics are mathematically derived from official filings.
Revenue Momentum Building Steadily
Novanta's revenue grew 10.3% year-over-year in 2026Q2, reaching $265.8M, marking the strongest quarterly growth in the past ten quarters, according to reported financials.
The acceleration from roughly 1-2% growth in early 2025 to double-digit growth in 2026 suggests a cyclical recovery or new product cycle gaining traction. The sequential increase from $257.7M in 2026Q1 to $265.8M in 2026Q2 indicates sustained demand, though investors should monitor whether this pace is durable given the prior volatility.
Gross Margin Expansion Amid Cost Pressures
Gross margin improved to 45.5% in 2026Q2, up from 41.4% a year earlier, as reported in the latest quarterly results, reflecting better product mix or pricing power.
The 410 basis point year-over-year expansion in gross margin is notable, especially as COGS grew only 2.6% while revenue grew 10.3%, implying operating leverage at the gross profit level. However, this margin level is still below the 45.5% seen in 2024Q4, suggesting some cyclicality; the sustainability of this improvement depends on input costs and competitive dynamics.
Operating Leverage Masked by SBC Spike
Operating income fell to $18.1M in 2026Q2 despite higher revenue, as SG&A surged to $60.0M and stock-based compensation reached $19.6M, per the income statement data.
The 6.8% operating margin in 2026Q2 is a sharp drop from 11.7% in the prior quarter, driven by a $5.6M sequential increase in SG&A and a $19.6M SBC charge that was absent in 2026Q1. This suggests that reported operating leverage is being offset by elevated overhead and non-cash compensation, warranting scrutiny of expense discipline.
Earnings Quality Clouded by SBC Volatility
Net income swung from $21.1M in 2026Q1 to $12.5M in 2026Q2, with EPS dropping 41% sequentially, while stock-based compensation spiked to $19.6M, as per the latest filings.
The erratic SBC pattern—zero in 2026Q1 versus $19.6M in 2026Q2—distorts reported earnings and makes quarterly comparisons unreliable. Excluding SBC, operating income would be significantly higher, but the inconsistency suggests potential timing of grants or one-time awards; investors should adjust for this to assess true profitability.
SG&A Escalation Outpacing Revenue
SG&A expenses rose to $60.0M in 2026Q2, up 27.4% year-over-year, while revenue grew only 10.3%, according to the income statement, indicating a potential cost control issue.
The disproportionate increase in SG&A relative to revenue in 2026Q2 is a red flag, as it compressed operating margin to 6.8% from 11.4% a year ago. This could reflect investments in growth initiatives or one-time costs, but if the trend persists, it will erode profitability despite top-line momentum.
Margin Compression and Dilution Risks
Despite revenue growth, operating margin fell to 6.8% in 2026Q2, and SBC of $19.6M exceeded net income, suggesting that reported earnings may overstate economic value creation.
Short-sellers could argue that the company's profitability is deteriorating as SG&A and SBC escalate, and that the 150% EPS growth in 2026Q2 is misleading given the low base and one-time items. The high SBC relative to net income indicates significant shareholder dilution, and if gross margin gains are not sustained, the stock could face multiple compression.