Novanta Third-Quarter Revenue Rises 23%, Sees 2027 Revenue Growth Above 15%

The Tip Desk · November 12, 2026 · 3 min read

Third-quarter revenue reached $305 million as Riverpoint Medical added $32.9 million and Adjusted EBITDA rose 38% to $80.3 million.

Novanta Inc. (NOVT), a supplier of precision technology for medical and industrial equipment makers, closed the largest acquisition in its history in the third quarter and reported GAAP revenue of $305.0 million, up 23.1% from a year earlier.

The Riverpoint Medical close added $32.9 million, or 13.3%, of that increase. Organic revenue growth, which excludes acquisitions and foreign-currency effects, was 9.9%. Reported growth had been 10.3% in the second quarter, when organic growth was 9.3%. Foreign currency reduced third-quarter revenue by $0.3 million.

Chair and Chief Executive Officer Matthijs Glastra said the quarter exceeded the company’s expectations and that Riverpoint was performing in line with expectations. Customer bookings increased 29%, and backlog expanded to $543 million.

GAAP operating income fell to $13.9 million from $21.8 million a year earlier. Restructuring, acquisition, and related costs were $23.1 million, compared with $6.7 million. GAAP net income was $2.0 million, or $0.05 a share, versus $10.7 million, or $0.30 a share, a year earlier. Diluted weighted average shares were 42.7 million.

Adjusted EBITDA increased 38.3% to $80.3 million, from $58.1 million. Adjusted EBITDA margin was 26.3%, versus 23.4% a year earlier. Adjusted diluted EPS increased 20.7% to $1.05 from $0.87. Adjusted operating income was $65.1 million.

Medical Solutions, which now includes Riverpoint, generated $160 million of GAAP revenue, versus $123 million a year earlier. GAAP gross margin in that segment was 39.9%, versus 43.0%. Automation Enabling Technologies revenue was $145 million, versus $125 million, with GAAP gross margin of 50.2%, versus 47.3%.

Operating cash flow was $39.3 million, versus $8.5 million a year earlier. Free cash flow was $31.5 million. Cash paid for the Riverpoint Medical acquisition, net of working-capital adjustments, was $1.20 billion. The company borrowed $626.0 million under senior credit facilities. Cash and cash equivalents were $149.2 million at October 2, 2026. Net debt was $689.4 million, versus net cash of $121.3 million at year-end 2025.

For the fourth quarter of 2026, Novanta expects GAAP revenue of $306 million to $312 million, reflecting reported growth of more than 18%. Adjusted EBITDA is expected at $76 million to $79 million, and Adjusted diluted EPS at $0.91 to $0.96 a share. Guidance assumes no significant changes in foreign exchange rates. That fourth-quarter revenue range sits above the prior third-quarter guide of $300 million to $304 million.

For the full year 2026, the company now expects GAAP revenue of $1,135 million to $1,140 million, reflecting reported growth of approximately 16%. It expects Adjusted EBITDA of $274 million to $277 million and Adjusted diluted EPS of $3.66 to $3.71 a share. Glastra said the company remains on track for approximately 7% organic revenue growth, more than 24% growth in Adjusted EBITDA, and approximately $200 million in operating cash flow.

Looking ahead to 2027, Novanta said it expects reported revenue growth of more than 15%.