Core Insights - Novanta reported strong revenue and earnings growth, but fourth-quarter margins and cash flow fell below expectations due to operational choices prioritizing customer deliveries over manufacturing transfers [1][6] Financial Performance - Fourth-quarter revenue showed 9% reported growth, 2% organic growth, and 4% sequential growth, with bookings increasing 25% year-over-year and 12% sequentially, resulting in a 1.11 book-to-bill ratio [5] - Full-year revenue reached $981 million, marking the company's largest year ever, with bookings growing 14% and a vitality index of 22% for the year [4][3] - Fourth-quarter non-GAAP adjusted gross profit was $118 million, with a 45.5% adjusted gross margin, down from 47% a year earlier [7] Cash Flow and Working Capital - Operating cash flow was $9 million in the fourth quarter, significantly down from $62 million a year earlier, impacted by manufacturing dynamics and inventory builds [8] - The company ended the quarter with $381 million in cash and $260 million of gross debt, resulting in a net cash position of $121 million, the first in over a decade [9] Strategic Outlook - For 2026, the company expects GAAP revenue of $1.03 billion to $1.05 billion, representing 4% to 6% organic growth, with adjusted gross margin expected to be about 47% [13][14] - The company plans to focus on acquisitions in medical technologies and consumables, with nearly $1.5 billion in acquisition capacity [10][11] Product Development - New product revenue grew over 60% for the full year, with more than 80% growth in the fourth quarter, reflecting investments in commercial excellence and innovation [4][6]