NOVANTA INC, 10-K filed on 2/23/2026
Annual Report
v3.25.4
Document and Entity Information - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2023
Feb. 16, 2026
Jun. 27, 2025
Document Information [Line Items]        
Document Type 10-K      
Amendment Flag false      
Document Period End Date Dec. 31, 2025      
Document Fiscal Year Focus 2025      
Document Fiscal Period Focus FY      
Entity Registrant Name NOVANTA INC.      
Entity Central Index Key 0001076930      
Entity Current Reporting Status Yes      
Entity Voluntary Filers No      
Entity Interactive Data Current Yes      
Current Fiscal Year End Date --12-31      
Entity Filer Category Large Accelerated Filer      
Entity Well-known Seasoned Issuer Yes      
Entity Public Float       $ 3,496,559,430
Entity Common Stock, Shares Outstanding     35,683,769  
Entity Shell Company false      
Entity Small Business false      
Entity Emerging Growth Company false      
Entity File Number 001-35083      
Entity Incorporation, State or Country Code A3      
Entity Tax Identification Number 98-0110412      
Entity Address, Address Line One 125 Middlesex Turnpike      
Entity Address, City or Town Bedford      
Entity Address, State or Province MA      
Entity Address, Country US      
Entity Address, Postal Zip Code 01730      
City Area Code 781      
Local Phone Number 266-5700      
Document Annual Report true      
Document Transition Report false      
ICFR Auditor Attestation Flag true      
Document Financial Statement Error Correction [Flag] false      
Auditor Name Deloitte & Touche LLP PricewaterhouseCoopers LLP    
Auditor Firm ID 34 238    
Auditor Location Boston, Massachusetts, United States Boston, Massachusetts, United States    
Documents Incorporated by Reference

Portions of the Registrant’s Definitive Proxy Statement for the Registrant’s Annual Meeting of Shareholders scheduled to be held on May 28, 2026 to be filed with the Securities and Exchange Commission are incorporated by reference in answers to Part III of this Annual Report on Form 10-K.

     
Auditor Opinion [Text Block]

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Novanta Inc. and subsidiaries (the “Company”) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income, stockholders’ equity, and cash flows, for each of the two years in the period ended December 31, 2025, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 23, 2026, expressed an unqualified opinion on the Company's internal control over financial reporting.

Opinion on the Financial Statements

We have audited the consolidated statement of operations of Novanta Inc. and its subsidiaries (the “Company”) for the year ended December 31, 2023, including the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the results of operations and cash flows of the Company for the year ended December 31, 2023 in conformity with accounting principles generally accepted in the United States of America.

     
Common Shares        
Document Information [Line Items]        
Trading Symbol NOVT      
Title of 12(b) Security Common shares, no par value      
Security Exchange Name NASDAQ      
6.50% Tangible Equity Units        
Document Information [Line Items]        
Trading Symbol NOVTU      
Title of 12(b) Security 6.50% Tangible Equity Units      
Security Exchange Name NASDAQ      
v3.25.4
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Current Assets    
Cash and cash equivalents $ 380,871 $ 113,989
Accounts receivable, net of allowance of $1,341 and $505, respectively 184,880 151,026
Inventories 188,284 144,606
Prepaid income taxes and income taxes receivable 9,382 8,076
Prepaid expenses and other current assets 19,184 15,951
Total current assets 782,601 433,648
Property, plant and equipment, net 118,491 113,135
Operating right-of-use assets 41,697 42,908
Deferred tax assets 27,381 22,887
Other assets 8,812 5,991
Intangible assets, net 180,776 185,844
Goodwill 647,348 584,098
Total assets 1,807,106 1,388,511
Current Liabilities    
Current portion of long-term debt 38,291 4,691
Accounts payable 94,865 76,890
Income taxes payable 5,856 16,000
Current portion of operating lease liabilities 9,857 9,879
Accrued expenses and other current liabilities 63,498 60,331
Total current liabilities 212,367 167,791
Long-term debt 212,538 411,949
Operating lease liabilities 38,873 40,548
Deferred tax liabilities 18,092 13,093
Income taxes payable 3,963 4,941
Other liabilities 6,986 4,491
Total liabilities 492,819 642,813
Commitments and Contingencies (Note 18)
Stockholders' Equity:    
Preferred shares, no par value; Authorized shares: 7,000; No shares issued and outstanding
Common shares, no par value; Authorized shares: unlimited; Issued and outstanding: 35,671 and 35,938, respectively 423,856 423,856
Additional paid-in capital 572,057 84,214
Retained earnings 321,378 267,549
Accumulated other comprehensive loss (3,004) (29,921)
Total stockholders' equity 1,314,287 745,698
Total liabilities and stockholders’ equity $ 1,807,106 $ 1,388,511
v3.25.4
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Accounts receivable, allowance $ 1,341 $ 505
Preferred shares, no par value $ 0 $ 0
Preferred shares, Authorized 7,000,000 7,000,000
Preferred shares, Issued 0 0
Preferred shares, outstanding 0 0
Common shares, Authorized Unlimited Unlimited
Common shares, no par value $ 0 $ 0
Common shares, Issued 35,671,000 35,938,000
Common shares, outstanding 35,671,000 35,938,000
v3.25.4
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Statement [Abstract]      
Revenue $ 980,600 $ 949,245 $ 881,662
Cost of revenue 545,316 527,700 481,765
Gross profit 435,284 421,545 399,897
Operating expenses:      
Research and development and engineering 95,484 95,515 91,682
Selling, general and administrative 195,659 175,943 164,460
Amortization of purchased intangible assets 27,477 25,794 20,445
Restructuring, acquisition and related costs 22,652 13,709 12,814
Total operating expenses 341,272 310,961 289,401
Operating income 94,012 110,584 110,496
Interest income (expense), net (21,472) (31,489) (25,818)
Foreign exchange transaction gains (losses), net (2,190) 413 (255)
Other income (expense), net (708) (442) (675)
Income before income taxes 69,642 79,066 83,748
Income tax provision 15,813 14,979 10,870
Net income $ 53,829 $ 64,087 $ 72,878
Earnings per common share (Note 9):      
Basic $ 1.47 $ 1.78 $ 2.03
Diluted $ 1.47 $ 1.77 $ 2.02
Weighted average common shares outstanding—basic 36,589 35,950 35,844
Weighted average common shares outstanding—diluted 36,702 36,124 36,031
v3.25.4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Net income $ 53,829 $ 64,087 $ 72,878
Other comprehensive income (loss):      
Foreign currency translation adjustments, net of tax [1] 27,158 (7,082) 7,823
Pension liability adjustments, net of tax [2] (241) 1,199 148
Total other comprehensive income (loss) 26,917 (5,883) 7,971
Total comprehensive income $ 80,746 $ 58,204 $ 80,849
[1] The tax effect on this component of comprehensive income (loss) was nominal in 2025, 2024 and 2023.
[2] The tax effect on this component of comprehensive income (loss) was $68, $376 and $156 in 2025, 2024 and 2023, respectively.
v3.25.4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Pension liability adjustments, tax effect on the component of comprehensive income (loss) $ 68 $ 376 $ 156
v3.25.4
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
shares in Thousands, $ in Thousands
Total
Common Shares
Additional Paid-In Capital
Retained Earning (Deficit)
Accumulated Other Comprehensive Loss
Balance at Dec. 31, 2022 $ 577,586 $ 423,856 $ 55,155 $ 130,584 $ (32,009)
Balance (in shares) at Dec. 31, 2022   35,711      
Net income 72,878     72,878  
Common shares issued under stock plans (in shares)   173      
Common shares withheld for taxes on vested stock awards (10,563)   (10,563)    
Common shares withheld for taxes on vested stock awards (in shares)   (70)      
Share-based compensation 25,588   25,588    
Other comprehensive income (loss), net of tax 7,971       7,971
Balance at Dec. 31, 2023 673,460 $ 423,856 70,180 203,462 (24,038)
Balance (in shares) at Dec. 31, 2023   35,814      
Net income 64,087     64,087  
Common shares issued under stock plans 440   440    
Common shares issued under stock plans (in shares)   184      
Common shares withheld for taxes on vested stock awards (9,713)   (9,713)    
Common shares withheld for taxes on vested stock awards (in shares)   (60)      
Share-based compensation 23,307   23,307    
Other comprehensive income (loss), net of tax (5,883)       (5,883)
Balance at Dec. 31, 2024 745,698 $ 423,856 84,214 267,549 (29,921)
Balance (in shares) at Dec. 31, 2024   35,938      
Net income 53,829     53,829  
Common shares issued under stock plans (in shares)   147      
Common shares withheld for taxes on vested stock awards (7,809)   (7,809)    
Common shares withheld for taxes on vested stock awards (in shares)   (57)      
Repurchases of common shares (39,814)   (39,814)    
Repurchases of common shares (in shares)   (357)      
Share-based compensation 29,538   29,538    
Proceeds from stock purchase contracts issued under tangible equity units, net of issuance costs 505,928   505,928    
Other comprehensive income (loss), net of tax 26,917       26,917
Balance at Dec. 31, 2025 $ 1,314,287 $ 423,856 $ 572,057 $ 321,378 $ (3,004)
Balance (in shares) at Dec. 31, 2025   35,671      
v3.25.4
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash flows from operating activities:      
Net income $ 53,829 $ 64,087 $ 72,878
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 61,932 55,563 46,612
Provision for inventory excess and obsolescence 3,265 8,783 7,491
Impairment of operating lease assets     1,853
Share-based compensation 29,538 23,307 25,588
Deferred income taxes (8,853) (15,909) (14,726)
Loss (gain) on disposal of fixed assets (4,107) (64) 148
Contingent consideration adjustments 830 (282)  
Inventory acquisition fair value adjustments   2,777  
Write-off of unamortized deferred financing costs 426    
Non-cash interest expense 1,472 1,162 1,162
Other non-cash items 857 170 397
Changes in assets and liabilities which provided/(used) cash, excluding effects from business acquisitions:      
Accounts receivable, net of allowance (27,272) (6,193) (127)
Inventories (36,101) 4,781 11,366
Prepaid expenses and other current assets (1,269) (1,492) 709
Prepaid income taxes, income taxes receivable and income taxes payable (12,381) 9,013 (12,349)
Accounts payable, accrued expenses and other current liabilities 3,707 13,062 (20,453)
Other non-current assets and liabilities (1,817) (253) (474)
Cash provided by operating activities 64,056 158,512 120,075
Cash flows from investing activities:      
Purchases of property, plant and equipment (15,627) (17,162) (19,961)
Acquisition of businesses, net of cash acquired and working capital adjustments (64,291) (191,200)  
Proceeds from sale of property, plant and equipment 5,596 173 69
Cash used in investing activities (74,322) (208,189) (19,892)
Cash flows from financing activities:      
Borrowings under revolving credit facilities 82,805 198,000  
Proceeds from issuance of tangible equity units, net of issuance costs 614,390    
Repayments under term loan and revolving credit facilities (365,725) (131,066) (86,552)
Payments of debt issuance costs (4,715) 0  
Payments of withholding taxes from share-based awards (7,809) (9,713) (10,563)
Payments of contingent considerations related to acquisitions 0 0 (81)
Repurchases of common shares (39,278)    
Other financing activities (3,338) (278) (657)
Cash provided by (used in) financing activities 276,330 56,943 (97,853)
Effect of exchange rates on cash and cash equivalents 818 1,672 2,616
Increase (decrease) in cash and cash equivalents 266,882 8,938 4,946
Cash and cash equivalents, beginning of year 113,989 105,051 100,105
Cash and cash equivalents, end of year 380,871 113,989 105,051
Supplemental disclosure of cash flow information:      
Cash paid for interest 22,568 32,673 25,302
Cash paid for income taxes 38,667 21,152 36,903
Income tax refunds received 1,942 1,553 612
Supplemental disclosure of non-cash investing activities:      
Accruals for capital expenditures $ 1,150 $ 2,529 $ 570
v3.25.4
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Pay vs Performance Disclosure      
Net Income (Loss) $ 53,829 $ 64,087 $ 72,878
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2025
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement

Rule 10b5-1 Trading Plans

No officers or directors adopted, modified, and/or terminated a “Rule 10b5-1 trading agreement” or a “non-Rule 10b5-1 trading agreement,” as defined in Item 408 of Regulation S-K, during the three months ended December 31, 2025.
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Rule 10b5-1 Arr Modified Flag false
Non-Rule 10b5-1 Arr Modified Flag false
v3.25.4
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management, Strategy and Governance
 12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]

Item 1C. Cybersecurity

Cybersecurity Risk Management and Strategy

We have developed and implemented a cybersecurity risk management program intended to protect the confidentiality, integrity, and availability of our critical systems and information.

We design and assess our program based on various cybersecurity frameworks, such as the National Institute of Standards and Technology (“NIST”) as well as International Organization for Standardization (“ISO”) 27001. We use these cybersecurity frameworks and information security standards as a guide to help us identify, assess, and manage cybersecurity risks relevant to our business.

Our cybersecurity risk management program is designed to be integrated into our overall risk management program, and shares common methodologies and governance processes across the risk management program. Key elements of our cybersecurity risk management program, include but are not limited, to the followings:

•
risk assessments designed to help identify material risks from cybersecurity threats to our critical systems and information;
•
a security team and an external service provider principally responsible for managing (1) our cybersecurity risk assessment processes, (2) our security controls, and (3) our response to cybersecurity threats and incidents;
•
the use of external service providers, where appropriate, to assess, test, or otherwise assist with aspects of our cybersecurity security processes;
•
cybersecurity awareness training for our employees, including incident response personnel and senior management, on a quarterly basis as part of the risk mitigation strategy;
•
quarterly testing of the effectiveness of the cybersecurity awareness training;
•
a cybersecurity incident response plan that includes procedures for responding to cybersecurity incidents;
•
a third-party risk management process for key service providers, based on our assessment of their criticality to our operations and respective risk profile, suppliers, and vendors; and
•
cybersecurity internal and external penetration testing.

We face risks from cybersecurity threats that, if realized, are reasonably likely to materially affect us, including our operations, business strategy, results of operations, or financial condition. We have not experienced any incidents that have materially affected us, including our operations, business strategy, results of operations, or financial condition.

Cybersecurity Governance

The Board of Directors (the “Board”) recognizes the need for continually monitoring information security risks and cybersecurity initiatives. The Audit Committee of our Board undertakes the primary oversight responsibility over our cybersecurity risks and information security controls. Management briefs the Audit Committee on information security matters at each quarterly meeting of the Audit Committee. In addition, management updates the Audit Committee regarding any potentially material cybersecurity incidents, if any, as well as any incidents with lesser potential impact.

In addition to the role the Audit Committee plays in overseeing enterprise and cybersecurity risks, the Environmental, Social and Governance (“ESG”) Committee reviews and oversees our overall cybersecurity program, including its strategy and processes, and is updated by management on the status and development of the cybersecurity programs at each of the ESG Committee’s meetings.

Both the Audit Committee and the ESG Committee report to the full Board regarding their activities, including those related to our cybersecurity risks and program. The full Board also receives briefings from management at least once a year on our cybersecurity risk management program. Board members receive presentations on cybersecurity topics presented by the Chief Information Officer (“CIO”) and Chief Information Security Officer (“CISO”).

Our management team, including our IT management team, is responsible for assessing and managing our material risks from cybersecurity threats. The CISO/CIO oversees the overall cybersecurity risk management program, and the Deputy Chief Information Security Officer (“DCISO”) has the primary operational responsibilities over our cybersecurity program, including supervising both our internal cybersecurity personnel and our retained external cybersecurity consultants. The CISO, who is also our CIO, has over 25 years of experience managing global IT operations, including strategy, applications, infrastructure, information security, support and execution. The CISO/CIO holds a Master of Science degree in computer science and engineering (with a specialization in Information Assurance) and a Doctorate of Engineering Management/Systems Engineering degree. Our DCISO has over 18 years of experience in information security leadership and IT management, including strategy, risk management, compliance, data privacy, and governance. The Deputy CISO holds a Master of Science degree in Electrical Engineering and a Master of Business Administration (MBA) degree.

Our management team takes steps to stay informed about and monitor efforts to prevent, detect, mitigate, and remediate cybersecurity risks and incidents through various means, which may include briefings from internal security personnel, threat intelligence and other information obtained from governmental, public, or private sources, including external consultants engaged by us, and alerts and reports produced by security tools deployed in the information technology environment.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] Our cybersecurity risk management program is designed to be integrated into our overall risk management program, and shares common methodologies and governance processes across the risk management program.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]

Cybersecurity Governance

The Board of Directors (the “Board”) recognizes the need for continually monitoring information security risks and cybersecurity initiatives. The Audit Committee of our Board undertakes the primary oversight responsibility over our cybersecurity risks and information security controls. Management briefs the Audit Committee on information security matters at each quarterly meeting of the Audit Committee. In addition, management updates the Audit Committee regarding any potentially material cybersecurity incidents, if any, as well as any incidents with lesser potential impact.

In addition to the role the Audit Committee plays in overseeing enterprise and cybersecurity risks, the Environmental, Social and Governance (“ESG”) Committee reviews and oversees our overall cybersecurity program, including its strategy and processes, and is updated by management on the status and development of the cybersecurity programs at each of the ESG Committee’s meetings.

Both the Audit Committee and the ESG Committee report to the full Board regarding their activities, including those related to our cybersecurity risks and program. The full Board also receives briefings from management at least once a year on our cybersecurity risk management program. Board members receive presentations on cybersecurity topics presented by the Chief Information Officer (“CIO”) and Chief Information Security Officer (“CISO”).

Our management team, including our IT management team, is responsible for assessing and managing our material risks from cybersecurity threats. The CISO/CIO oversees the overall cybersecurity risk management program, and the Deputy Chief Information Security Officer (“DCISO”) has the primary operational responsibilities over our cybersecurity program, including supervising both our internal cybersecurity personnel and our retained external cybersecurity consultants. The CISO, who is also our CIO, has over 25 years of experience managing global IT operations, including strategy, applications, infrastructure, information security, support and execution. The CISO/CIO holds a Master of Science degree in computer science and engineering (with a specialization in Information Assurance) and a Doctorate of Engineering Management/Systems Engineering degree. Our DCISO has over 18 years of experience in information security leadership and IT management, including strategy, risk management, compliance, data privacy, and governance. The Deputy CISO holds a Master of Science degree in Electrical Engineering and a Master of Business Administration (MBA) degree.

Our management team takes steps to stay informed about and monitor efforts to prevent, detect, mitigate, and remediate cybersecurity risks and incidents through various means, which may include briefings from internal security personnel, threat intelligence and other information obtained from governmental, public, or private sources, including external consultants engaged by us, and alerts and reports produced by security tools deployed in the information technology environment.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The Audit Committee of our Board undertakes the primary oversight responsibility over our cybersecurity risks and information security controls.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] Management briefs the Audit Committee on information security matters at each quarterly meeting of the Audit Committee.
Cybersecurity Risk Role of Management [Text Block]

Our management team, including our IT management team, is responsible for assessing and managing our material risks from cybersecurity threats. The CISO/CIO oversees the overall cybersecurity risk management program, and the Deputy Chief Information Security Officer (“DCISO”) has the primary operational responsibilities over our cybersecurity program, including supervising both our internal cybersecurity personnel and our retained external cybersecurity consultants. The CISO, who is also our CIO, has over 25 years of experience managing global IT operations, including strategy, applications, infrastructure, information security, support and execution. The CISO/CIO holds a Master of Science degree in computer science and engineering (with a specialization in Information Assurance) and a Doctorate of Engineering Management/Systems Engineering degree. Our DCISO has over 18 years of experience in information security leadership and IT management, including strategy, risk management, compliance, data privacy, and governance. The Deputy CISO holds a Master of Science degree in Electrical Engineering and a Master of Business Administration (MBA) degree.

Our management team takes steps to stay informed about and monitor efforts to prevent, detect, mitigate, and remediate cybersecurity risks and incidents through various means, which may include briefings from internal security personnel, threat intelligence and other information obtained from governmental, public, or private sources, including external consultants engaged by us, and alerts and reports produced by security tools deployed in the information technology environment.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our management team, including our IT management team, is responsible for assessing and managing our material risks from cybersecurity threats. The CISO/CIO oversees the overall cybersecurity risk management program, and the Deputy Chief Information Security Officer (“DCISO”) has the primary operational responsibilities over our cybersecurity program, including supervising both our internal cybersecurity personnel and our retained external cybersecurity consultants.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] The CISO, who is also our CIO, has over 25 years of experience managing global IT operations, including strategy, applications, infrastructure, information security, support and execution. The CISO/CIO holds a Master of Science degree in computer science and engineering (with a specialization in Information Assurance) and a Doctorate of Engineering Management/Systems Engineering degree. Our DCISO has over 18 years of experience in information security leadership and IT management, including strategy, risk management, compliance, data privacy, and governance. The Deputy CISO holds a Master of Science degree in Electrical Engineering and a Master of Business Administration (MBA) degree.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]

Our management team takes steps to stay informed about and monitor efforts to prevent, detect, mitigate, and remediate cybersecurity risks and incidents through various means, which may include briefings from internal security personnel, threat intelligence and other information obtained from governmental, public, or private sources, including external consultants engaged by us, and alerts and reports produced by security tools deployed in the information technology environment.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Organization and Basis of Presentation
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Organization and Basis of Presentation

1. Organization and Basis of Presentation

Novanta Inc. and its subsidiaries (collectively referred to as the “Company”, or “Novanta”) is a leading global supplier of core technology solutions that give medical and advanced industrial original equipment manufacturers (“OEMs”) a competitive advantage. The Company combines deep proprietary technology expertise and competencies in precision medicine, precision manufacturing, robotics and automation, and advanced surgery with a proven ability to solve complex technical challenges. This enables Novanta to engineer core components and sub-systems that deliver extreme precision and performance, tailored to the customers' demanding applications.

Basis of Presentation

The consolidated financial statements have been prepared by the Company in United States (“U.S.”) dollars and in accordance with accounting principles generally accepted in the U.S., applied on a consistent basis. These consolidated financial statements include the accounts of Novanta Inc. and its subsidiaries. Intercompany accounts and transactions have been eliminated.

v3.25.4
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Estimates and assumptions are reviewed on an on-going basis and the effects of revisions are reflected in the period in which such revisions are deemed to be necessary. The Company evaluates its estimates based on historical experience, current conditions, and various other assumptions that it believes are reasonable under the circumstances. Actual results could differ significantly from these estimates.

Foreign Currency Translation

The financial statements of the Company and its subsidiaries outside the U.S. have been translated into U.S. dollars. Assets and liabilities of foreign operations are translated from foreign currencies into U.S. dollars at the exchange rates in effect as of the balance sheet date. Revenue and expenses are translated at the weighted average exchange rates for the period. Accordingly, gains and losses resulting from translating foreign currency financial statements are reported as cumulative translation adjustments, a separate component of other comprehensive income (loss) in stockholders’ equity. Foreign currency transaction gains and losses from transactions denominated in currencies other than the functional currencies are included in the accompanying consolidated statements of operations.

Cash Equivalents

Cash equivalents are highly liquid investments with original maturities of three months or less. These investments are carried at cost, which approximates fair value.

Accounts Receivable and Credit Losses

Accounts receivable are recorded at the invoiced amounts, net of an allowance for doubtful accounts based on the Company’s best estimate of probable credit losses. The Company is exposed to credit losses primarily through sales of its products. The Company assesses each customer’s ability to pay by conducting a credit review which includes consideration of established credit rating or an internal assessment of the customer’s creditworthiness based on an analysis of their payment history when a credit rating is not available. The Company monitors its credit exposure through active review of customer balances. The Company’s expected loss methodology for accounts receivable is developed through consideration of factors including, but not limited to, historical collection experience, current customer credit ratings, current customer financial condition, current and future economic and market condition, and age of the receivables. Charges related to credit losses are included in selling, general and administrative expenses and are recorded in the period that the outstanding receivables are determined to be uncollectible. Account balances are charged off against the allowance for doubtful accounts when the Company believes it is certain that the receivable will not be recovered.

For the years ended December 31, 2025, 2024 and 2023, changes in the allowance for doubtful accounts were as follows (in thousands):

 

2025

 

 

2024

 

 

2023

 

Balance at beginning of year

$

505

 

 

$

571

 

 

$

995

 

Addition to credit loss expense

 

897

 

 

 

223

 

 

 

175

 

Write-offs, net of recoveries of amounts previously reserved

 

(72

)

 

 

(288

)

 

 

(612

)

Exchange rate changes

 

11

 

 

 

(1

)

 

 

13

 

Balance at end of year

$

1,341

 

 

$

505

 

 

$

571

 

Inventories

Inventories, which include materials and conversion costs, are stated at the lower of cost or net realizable value, using the first-in, first-out method. Cost includes the cost of purchased materials, inbound freight charges, customs duties, trade tariffs on imported materials and components, external and internal processing and applicable labor and overhead costs. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, storage, disposal and transportation. The Company periodically reviews inventory for potential excess or obsolescence by comparing on-hand quantities to the forecasted product demand and production requirements or trailing historical usage of each product. The Company records a charge to cost of revenue for the amount required to reduce the carrying value of inventories to their net realizable value.

Property, Plant and Equipment

Property, plant and equipment are recorded at cost, adjusted for any impairment, less accumulated depreciation. The Company uses the straight-line method to calculate the depreciation of its property, plant and equipment over their estimated useful lives. Estimated useful lives range from 10 to 40 years for buildings and building improvements, and 3 to 10 years for machinery and equipment. Leasehold improvements are depreciated over the lesser of their useful lives or the lease terms, including any renewal period options that are reasonably assured of being exercised. Repairs and maintenance costs are expensed as incurred.

Capitalized Software Implementation Costs

The Company capitalizes qualified implementation costs incurred in a hosting arrangement that is a service contract for which it is the customer in accordance with the requirements for capitalizing costs incurred to develop internal-use software. These capitalized implementation costs are recorded within other assets and are generally amortized over the fixed, non-cancellable term of the associated hosting arrangement on a straight-line basis.

Goodwill, Intangible Assets and Long-Lived Assets

Goodwill represents the excess of the purchase price over the tangible assets, identifiable intangible assets and assumed liabilities acquired in a business combination. Allocations of the purchase price are based upon a valuation of the fair value of assets acquired and liabilities assumed as of the acquisition date. Goodwill and indefinite-lived intangibles are not amortized but are assessed for impairment at least annually to ensure their current fair values exceed their carrying values.

The Company’s most significant identifiable intangible assets are customer relationships, patents and developed technologies, trademarks and trade names. The fair values of identifiable intangible assets are based on valuations using an income approach, with estimates and assumptions provided by management of the acquired companies and the Company. The process for estimating the fair values of identifiable intangible assets requires the use of significant estimates and assumptions, including revenue growth rates, customer attrition rates, royalty rates, discount rates and projected future cash flows. All definite-lived intangible assets are amortized over the periods in which their economic benefits are expected to be realized. The Company reviews the useful life assumptions, including the classification of certain identifiable intangible assets as “indefinite-lived,” on a periodic basis to determine if changes in circumstances warrant revisions to them. Costs associated with patent and intellectual property applications, renewals or extensions are typically expensed as incurred.

The Company evaluates its goodwill, intangible assets and other long-lived assets for impairment at the reporting unit level which is at least one level below the reportable segments.

Impairment Charges

Impairment analyses of goodwill and indefinite-lived intangible assets are conducted in accordance with ASC 350, “Intangibles — Goodwill and Other.” The Company performs its goodwill impairment test annually at a reporting unit level, which is generally at least one level below a reportable segment, as of the beginning of the second quarter or more frequently if indicators are present or changes in circumstances suggest that an impairment may exist.

The Company has the option of first performing a qualitative assessment to determine whether it is necessary to perform the quantitative impairment test. In performing the qualitative assessment, the Company reviews factors both specific to the reporting unit and to the Company as a whole, such as financial performance, macroeconomic conditions, industry and market considerations, and the fair value of each reporting unit as of the last valuation date. If the Company elects this option and believes, as a result of the qualitative assessment, that it is more likely than not that the carrying value of the reporting unit exceeds its fair value, the quantitative impairment test is required; otherwise, no further testing is required.

Alternatively, the Company may elect to bypass the qualitative assessment and perform the quantitative impairment test instead. This approach requires a comparison of the carrying value of each reporting unit to its estimated fair value. The fair value of a reporting unit is estimated primarily using a discounted cash flow (“DCF”) method. If the carrying value of a reporting unit exceeds its fair value, an impairment charge is recorded for the difference.

The Company assesses indefinite-lived intangible assets for impairment on an annual basis as of the beginning of the second quarter, and more frequently if indicators are present, or changes in circumstances suggest, that an impairment may exist. The Company will also reassess the continuing classification of these intangible assets as indefinite-lived when circumstances change such that the useful life may no longer be considered indefinite. The fair values of the Company’s indefinite-lived intangible assets are determined using the relief from royalty method, based on forecasted revenues and estimated royalty rates. If the fair value of an indefinite-lived intangible asset is less than its carrying value, an impairment charge is recorded for the difference between the carrying value and the fair value of the impaired asset.

The carrying amounts of definite-lived long-lived assets are reviewed for impairment whenever changes in events or circumstances indicate that their carrying values may not be recoverable. The recoverability of the carrying value is generally determined by comparison of the carrying value of the asset group to its undiscounted future cash flows. When this test indicates a potential for impairment, a fair value assessment is performed. Once an impairment is determined and measured, an impairment charge is recorded for the difference between the carrying value and the fair value of the impaired asset.

Revenue Recognition

See Note 3 for the Company’s revenue recognition policy.

Leases

The Company leases certain equipment and facilities. The Company determines if an arrangement is a lease at inception. Operating lease right-of-use assets are included in operating lease assets on the consolidated balance sheet. Operating lease liabilities are included in the current portion of operating lease liabilities and operating lease liabilities on the consolidated balance sheet based on the timing of future lease payments. Finance lease assets are included in property, plant and equipment. Finance lease liabilities are included in accrued expenses and other current liabilities and other liabilities on the consolidated balance sheet based on the timing of future lease payments. Leases with an initial term of twelve months or less are not recognized on the balance sheet. The Company recognizes lease expense on a straight-line basis over the lease term. Many of the Company’s lease arrangements include both lease (e.g., fixed payments including rent) and non-lease components (e.g., common-area maintenance or other property management costs). The Company accounts for lease and non-lease components separately.

Most leases held by the Company do not provide an implicit rate. The Company determines the present value of future lease payments using its incremental borrowing rate for the same jurisdiction and term as the associated lease based on the information available at the lease commencement date. The Company has a centrally managed treasury function; therefore, the Company applies a portfolio approach for determining the incremental borrowing rate based on the applicable lease terms and the current economic environment.

Research and Development and Engineering Costs

Research and development and engineering (“R&D”) expenses are primarily comprised of employee related expenses and cost of materials for R&D projects. These costs are expensed as incurred.

Share-Based Compensation

The Company records expenses associated with share-based compensation awards to employees and directors based on the fair value of awards as of the grant date. For share-based compensation awards that vest over time based on employment or service, the associated expenses are based on the closing market price of the Company’s common shares on the date of grant and are recognized in the consolidated statements of operations ratably over the respective vesting periods, net of estimated forfeitures.

The Company also grants share-based awards that vest based on employment and certain specified company performance conditions, market conditions or a hybrid of specified company performance conditions and market conditions. Share-based compensation expenses for awards with specified company performance conditions are based on the closing market price of the Company’s common shares on the date of grant and are recognized ratably over their vesting periods when it is probable that the performance targets are expected to be achieved based on management’s projections. Management’s projections are revised, if necessary, in subsequent periods when underlying factors change the evaluation of the probability of achieving the performance targets as well as the estimated levels of achievement. When the estimated achievement levels are adjusted at a later date, a cumulative adjustment to the share-based compensation expense previously recognized would be recorded in the period such determination is made. Accordingly, share-based compensation expenses for awards with specified company performance conditions may differ significantly from period to period based on changes to both the probability and the level of achievement against the performance targets.

Share-based compensation expenses for awards with market conditions are based on the grant-date fair value, determined using the Monte-Carlo valuation model, and are recognized on a straight-line basis from the grant date to the end of the performance period. Compensation expenses for awards with market conditions will not be affected by the number of common shares that will ultimately be issued upon vesting at the end of the performance period.

Share-based compensation expenses for awards with a hybrid of specified company performance conditions and market conditions are based on the grant-date fair value, determined using the Monte-Carlo valuation model, and are recognized ratably over their vesting periods when it is probable that the performance targets are expected to be achieved based on management’s projections. Management’s projections are revised, if necessary, in subsequent periods when underlying factors change the evaluation of the probability and the level of achieving the specified company performance targets. When the estimated achievement levels are adjusted at a later date, a cumulative adjustment to the share-based compensation expense previously recognized would be recorded in the period such determination is made. Accordingly, share-based compensation expenses for awards with hybrid conditions may differ significantly from period to period based on changes to both the probability and the level of achievement against the specified company performance targets.

The Company also grants stock options to certain members of the executive management team to purchase common shares of the Company at a strike price equal to the closing market price of the Company’s common shares on the date of grant. Stock options typically vest over time based on employment. Share-based compensation expenses associated with stock options are based on the grant-date fair value, determined using the Black-Scholes option pricing model, and are recognized on a straight-line basis ratably over the respective vesting period.

Advertising Costs

Advertising costs are expensed as incurred and are included in selling, general and administrative expenses in the consolidated statement of operations. Advertising costs were not material for the years ended December 31, 2025, 2024 and 2023.

Restructuring, Acquisition and Related Costs

The Company accounts for its restructuring activities in accordance with the provisions of ASC 420, “Exit or Disposal Cost Obligations.” The Company makes assumptions related to the amounts of employee severance benefits and related costs, useful lives and residual value of long-lived assets, and discount rates. Estimates and assumptions are based on the best information available at the time the obligation is recognized. These estimates are reviewed and revised as facts and circumstances dictate.

Acquisition related costs incurred to effect a business combination, including finders’ fees, legal, valuation and other professional or consulting fees, are expensed as incurred. Acquisition related costs also include expenses recognized under earn-out agreements in connection with acquisitions.

Accounting for Income Taxes

The asset and liability method is used to account for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to temporary differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. This method also requires the recognition of future tax benefits, such as net operating loss carryforwards, to the extent that it is more likely than not that such benefits will be realized. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the temporary differences are expected to be recovered or settled. A valuation allowance is established to reduce the deferred tax assets if it is more likely than not that some or all of the related tax benefits will not be realized in the future. Valuation allowances are reassessed periodically to determine whether it is more likely than not that the tax benefits will be realized in the future and if any existing valuation allowance should be released.

The majority of the Company’s business activities are conducted through its subsidiaries outside of Canada. Earnings from these subsidiaries are generally indefinitely reinvested in the local businesses. Further, local laws and regulations may also restrict certain subsidiaries from paying dividends to their parents. Consequently, the Company generally does not accrue income taxes for the repatriation of such earnings in accordance with ASC 740, “Income Taxes.” To the extent that there are excess accumulated earnings that the Company intends to repatriate from any such subsidiaries, the Company recognizes deferred tax liabilities on such foreign earnings.

The Company assesses its income tax positions and records tax benefits for all years subject to examination based on the evaluation of the facts, circumstances, and information available at each reporting date. For those tax positions with a greater than 50 percent likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information, the Company records a tax benefit. For those income tax positions that are not likely to be sustained, no tax benefit is recognized in the consolidated financial statements. The Company recognizes interest and penalties related to uncertain tax positions as part of the provision for income taxes.

Foreign Currency Contracts

The Company uses foreign currency contracts as a part of its strategy to limit its exposures to fluctuations in foreign currency exchange rates related to foreign currency denominated monetary assets and liabilities. The time duration of these foreign currency contracts approximates the underlying foreign currency transaction exposures, generally less than three months. These foreign currency contracts are not designated as cash flow, fair value or net investment hedges. Changes in the fair value of these foreign currency contracts are recognized in income before income taxes.

Recent Accounting Pronouncements

The following table provides a brief description of recent Accounting Standards Updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”):

Standard

 

Description

 

Effective Date

 

Effect on the Financial Statements or Other Significant Matters

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740) -Improvements to Income Tax Disclosures.”

 

ASU 2023-09 provides more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid.

 

The amendments in ASU 2023-09 are effective for annual periods beginning after December 15, 2024. Early adoption is permitted.

 

The Company adopted ASU 2023-09 beginning with its consolidated financial statement disclosures for the year ended December 31, 2025. See Note 16 “Income Taxes” for additional information.

Standard

 

Description

 

Effective Date

 

Effect on the Financial Statements or Other Significant Matters

In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.”

 

ASU 2024-03 improves financial reporting by requiring that public business entities disclose additional information about specific expense categories in the notes to financial statements at both interim and annual reporting periods.

 

The amendments in ASU 2024-03 are effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with early adoption permitted.

 

ASU 2024-03 affects financial statement disclosure only and, as a result, will have no impact on results of operations, cash flow or financial condition.

In September 2025, the FASB issued ASU 2025-06, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software.”

 

ASU 2025-06 eliminates references to prescriptive software development stages and requires capitalization of internal-use software costs once management commits funding and project completion is probable, while also updating disclosure requirements to align with Property, Plant, and Equipment guidance.

 

The amendments in ASU 2025-06 are effective for annual periods beginning after December 15, 2027. Early adoption is permitted.

 

 

The Company is currently evaluating the impact of ASU 2025-06 on its consolidated financial statement disclosures.

In November 2025, the FASB issued ASU 2025-09, “Derivatives and Hedging (Topic 815): Hedge Accounting Improvements.”

 

ASU 2025-09 clarifies certain aspects of the guidance on hedge accounting and address several incremental hedge accounting issues arising from global reference rate reform.

 

The amendments in ASU 2025-09 are effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with early adoption permitted.

 

The Company is currently evaluating the impact of ASU 2025-09 on its consolidated financial statement disclosures.

In December 2025, the FASB issued ASU 2025-12, “Codification Improvements”

 

ASU 2025-12 represent changes to the Codification that clarify, correct errors, or make minor improvements. The amendments make the Codification easier to understand and apply.

 

The amendments in ASU 2025-12 are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods.

 

The Company is currently evaluating the impact of ASU 2025-12 on its consolidated financial statement disclosures.
v3.25.4
Revenue
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue

3. Revenue

The Company accounts for its revenue transactions in accordance with ASC 606, “Revenue from Contracts with Customers,” which requires entities to recognize revenue in a way that depicts the transfer of control over goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenue recognition for arrangements within the scope of ASC 606 includes the following five steps: (i) identifying the contract(s) with a customer; (ii) identifying the performance obligations in the contract; (iii) determining the transaction price; (iv) allocating the transaction price to the performance obligations in the contract; and (v) recognizing revenue when (or as) a performance obligation is satisfied.

The Company recognizes revenue when control of promised goods or services is transferred to the customer. The transfer of control generally occurs upon shipment when title and risk of loss pass to the customer. The vast majority of the Company’s revenue is generated from the sale of distinct products. Revenue is measured as the amount of consideration the Company expects to receive in exchange for such products, which is generally at contractually stated prices. Sales taxes and value added taxes collected concurrently with revenue generating activities are excluded from revenue.

Performance Obligations

Substantially all of the Company’s revenue is recognized at a point in time, upon shipment, rather than over time.

At the request of its customers, the Company may perform professional services, generally for the maintenance and repair of products previously sold to those customers and for engineering services. Professional services are typically short in duration, mostly less than one month, and aggregate to less than 3% of the Company’s consolidated revenue. Revenue is typically recognized at a point in time when control transfers to the customer upon completion of professional services. These services generally involve a single distinct performance obligation. The consideration expected to be received in exchange for such services is normally the contractually stated amount.

The Company occasionally sells separately priced non-standard/extended warranty services or preventative maintenance plans with the sale of products. The transfer of control over the service plans is over time. The Company recognizes the related revenue ratably over the terms of the service plans. The transaction price of a contract is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are generally determined based on the prices charged to customers or using the expected cost plus a margin.

Shipping and Handling Costs

The Company accounts for shipping and handling activities that occur after the transfer of control over the related goods as fulfillment activities rather than performance obligations. The shipping and handling fees charged to customers are recognized as revenue and the related costs are recorded in cost of revenue at the time of transfer of control.

Warranties

The Company generally provides warranties for its products. The standard warranty period is typically 12 months to 36 months. The standard warranty period for product sales is accounted for under the provisions of ASC 450, “Contingencies,” as the Company has the ability to ascertain the likelihood of the liability and can reasonably estimate the amount of the liability. A provision for the estimated warranty cost is recorded in cost of revenue at the time revenue is recognized. The Company’s estimate of costs to service the warranty obligations is based on historical experience and expectations of future conditions. To the extent that the Company’s experience in warranty claims or costs associated with servicing those claims differ from the original estimates, revisions to the estimated warranty liability are recorded at that time, with an offsetting adjustment to cost of revenue.

Practical Expedients and Exemptions

The Company expenses incremental direct costs of obtaining a contract when incurred if the expected amortization period is one year or less. These costs are recorded within selling, general and administrative expenses in the consolidated statement of operations.

The Company does not adjust the promised amount of consideration for the effects of a financing component because the time period between the transfer of a promised good to a customer and the customer’s payment for that good is typically one year or less. The Company does not disclose the value of the remaining performance obligation for contracts with an original expected length of one year or less.

Contract Liabilities

Contract liabilities consist of deferred revenue and advance payments from customers, including amounts that are refundable. These contract liabilities are classified as either current or long-term liabilities in the consolidated balance sheet based on the timing of when the Company expects to recognize the related revenue. As of December 31, 2025 and December 31, 2024, contract liabilities were $11.1 million and $5.9 million, respectively, and are included in accrued expenses and other current liabilities and other liabilities in the accompanying consolidated balance sheets. The increase in the contract liability balance during the year ended December 31, 2025 is primarily due to cash payments received in advance of satisfying performance obligations, partially offset by $4.5 million of revenue recognized during the year that was included in the contract liability balance at December 31, 2024.

Disaggregated Revenue

See Note 19 for the Company’s disaggregation of revenue by geography and end market. The following table presents revenues disaggregated by the capabilities of the underlying products and technologies for the years ended December 31, 2025, 2024, and 2023, respectively (in thousands):

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Precision Manufacturing

$

182,258

 

 

$

202,303

 

 

$

225,750

 

Robotics and Automation

 

318,577

 

 

 

288,317

 

 

 

273,470

 

Automation Enabling Technologies

$

500,835

 

 

$

490,620

 

 

$

499,220

 

 

 

 

 

 

 

 

 

 

Precision Medicine

 

237,321

 

 

 

249,872

 

 

 

178,840

 

Advanced Surgery

 

242,444

 

 

 

208,753

 

 

 

203,602

 

Medical Solutions

$

479,765

 

 

$

458,625

 

 

$

382,442

 

Total Revenue

$

980,600

 

 

$

949,245

 

 

$

881,662

 
v3.25.4
Business Combinations
 12 Months Ended
Dec. 31, 2025
Business Combination [Abstract]  
Business Combinations

4. Business Combinations

2025 Acquisition

On April 8, 2025, the Company acquired 100% of the outstanding stock of Keonn Technologies, S.L. (“Keonn”) pursuant to the terms of a Share Purchase Agreement. At the closing date, Keonn became a wholly-owned subsidiary of the Company. Keonn is a manufacturer of Radio-Frequency Identification (“RFID”) solutions, based in Barcelona, Spain. Keonn is included in the Medical Solutions reportable segment.

The acquisition of Keonn has been accounted for as a business combination under ASC 805, Business Combinations (“ASC 805”). Under ASC 805, assets acquired and liabilities assumed in a business combination are recorded at their fair value as of the acquisition date. The Company’s consolidated financial statements include results of operations for Keonn from the April 8, 2025 acquisition date.

Consideration Transferred

Pursuant to the Share Purchase Agreement, the Company acquired all outstanding equity of Keonn for estimated total purchase consideration of $75.1 million, which consists of:

Cash consideration

$

68,336

 

Deferred consideration

 

2,192

 

Estimated fair value of contingent consideration

 

4,537

 

Estimated total purchase consideration

$

75,065

 

Contingent consideration represents additional payments that the Company may be required to make in the future, between €0 and €20.0 million (approximately $21.9 million as of the acquisition date), depending on the achievement of specified revenue targets by Keonn during fiscal years 2025 through 2027, as well as maintaining certain minimum gross margin targets during the applicable periods. The fair value of the contingent consideration was determined based on a Monte Carlo simulation model in an option pricing framework at the acquisition date, whereby a range of possible scenarios were simulated. Refer to Note 7 for additional information on the valuation assumptions utilized in the Monte Carlo simulation. Deferred consideration is related to a purchase price holdback which will be resolved within four years of the acquisition date. The liabilities for contingent and deferred consideration are included in other current and long-term liabilities on the consolidated balance sheets, based on their respective settlement dates. These liabilities are remeasured at the end of each reporting period until related contingencies are resolved.

Allocation of Purchase Price

The purchase price is allocated based upon a valuation of the fair values of assets acquired and liabilities assumed. Assets acquired and liabilities assumed have been recorded at their estimated fair values as of the acquisition date. The excess of the purchase price over the fair values of the acquired tangible assets, identifiable intangible assets and assumed liabilities was recorded as goodwill. The fair values of identifiable intangible assets were based on valuations using an income approach, specifically the multi-period excess earnings method for customer relationships and the relief-from-royalty method for developed technologies and trade name. The process for estimating the fair values of identifiable intangible assets requires the use of significant estimates and assumptions, including revenue growth rates, customer attrition rates, royalty rates, discount rates, technology obsolescence curves, and EBITDA margins. The Company’s estimates and assumptions in determining the estimated fair value of certain assets and liabilities are subject to change within the measurement period (up to one year from the acquisition date) as a result of additional information to be obtained with regard to facts and circumstances that existed as of the acquisition date

The purchase price for Keonn was allocated as follows (in thousands):

 

Purchase Price

 

Allocation

 

Cash

$

4,045

 

Accounts receivable

 

1,977

 

Inventory

 

5,377

 

Property, plant and equipment

 

1,401

 

Operating lease assets

 

3,124

 

Intangible assets

 

33,203

 

Goodwill

 

43,192

 

Other assets

 

1,412

 

Total assets acquired

 

93,731

 

Accounts payable

 

1,593

 

Operating lease liabilities

 

3,124

 

Debt

 

2,504

 

Deferred tax liabilities

 

7,369

 

Other liabilities

 

4,076

 

Total liabilities assumed

 

18,666

 

Total assets acquired, net of liabilities assumed

 

75,065

 

Less: cash acquired

 

4,045

 

Total purchase price, net of cash acquired

$

71,020

 

The estimated purchase price allocation previously disclosed in the Form 10-Q for the period ended June 27, 2025 was revised during the third quarter of 2025 as new information was received and analyzed resulting in an increase in identifiable intangible assets of $0.9 million, a decrease in goodwill of $1.0 million, and an increase in deferred tax liabilities of $0.2 million.

The fair value of intangible assets for Keonn is comprised of the following:

 

Estimated Fair

 

 

Amortization

 

Value
(In thousands)

 

 

Period

Developed technologies

$

9,753

 

 

9 years

Customer relationships

 

22,354

 

 

9 years

Trade name

 

1,096

 

 

14 years

Total

$

33,203

 

 

 

The purchase price allocation resulted in $33.2 million of identifiable intangible assets and $43.2 million of goodwill. As the Keonn acquisition was structured as a stock acquisition for income tax purposes, the goodwill is not deductible. The goodwill recorded represents the anticipated incremental value of future cash flows potentially attributable to: (i) Keonn’s ability to grow the business with existing and new customers, including leveraging the Company’s customer base; (ii) Keonn’s ability to grow the

business through new product introductions; and (iii) cost improvements due to the integration of Keonn’s operations into the Company’s existing infrastructure.

The operating results of Keonn were included in the Company's results of operations beginning on April 8, 2025. Keonn contributed revenues of $31.7 million and a loss before income taxes of $1.9 million to the Company's operating results for the year ended December 31, 2025. The loss before income taxes from Keonn for the period from the acquisition date through December 31, 2025 included amortization of purchased intangible assets of $6.7 million.

The pro forma financial information reflecting the operating results of Keonn, as if it had been acquired as of January 1, 2024, would not differ materially from the operating results of the Company as reported for the year ended December 31, 2024.

2024 Acquisition

On January 2, 2024, the Company completed the acquisition of Motion Solutions Parent Corp. (“Motion Solutions”), an Irvine, California-based provider of highly engineered integrated solutions, specializing in proprietary precision motion and advanced motion control solutions, for a total purchase price of $192.0 million in cash, net of working capital adjustments. The acquisition was financed with borrowings under the Company’s revolving credit facility. The addition of Motion Solutions enhances the Company’s product portfolio and further expands its presence in attractive medical and precision medicine spaces. Motion Solutions is included in the Medical Solutions reportable segment.

The total purchase price for Motion Solutions was allocated as follows (in thousands):

 

Purchase Price

 

 

Allocation

 

Cash

$

776

 

Accounts receivable

 

8,515

 

Inventory

 

13,940

 

Property, plant and equipment

 

3,126

 

Operating lease assets

 

8,076

 

Intangible assets

 

83,000

 

Goodwill

 

106,761

 

Other assets

 

1,002

 

Total assets acquired

 

225,196

 

Accounts payable

 

5,305

 

Operating lease liabilities

 

8,514

 

Deferred tax liabilities

 

18,171

 

Other liabilities

 

1,230

 

Total liabilities assumed

 

33,220

 

Total assets acquired, net of liabilities assumed

 

191,976

 

Less: cash acquired

 

776

 

Purchase price, net of cash acquired

$

191,200

 

The fair value of intangible assets for Motion Solutions is comprised of the following:

 

Estimated Fair

 

 

Amortization

 

Value
(In thousands)

 

 

Period

Developed technologies

$

34,400

 

 

7 years

Customer relationships

 

43,100

 

 

13 years

Backlog

 

5,500

 

 

1 year

Total

$

83,000

 

 

 

The purchase price allocation resulted in $83.0 million of identifiable intangible assets and $106.8 million of goodwill. As the Motion Solutions acquisition was structured as a stock acquisition for income tax purposes, the goodwill is not deductible. The goodwill recorded represents the anticipated incremental value of future cash flows potentially attributable to: (i) Motion Solution’s

ability to grow the business with existing and new customers, including leveraging the Company’s customer base; (ii) Motion Solution’s ability to grow the business through new product introductions; and (iii) cost improvements due to the integration of Motion Solution’s operations into the Company’s existing infrastructure.

The operating results of Motion Solutions were included in the Company’s results of operations beginning January 2, 2024. Motion Solutions contributed revenues of $82.4 million and an income before income taxes of $0.2 million to the Company’s operating results for the twelve months ended December 31, 2024. The income before income taxes from Motion Solutions for the period from the acquisition date through December 31, 2024 included amortization of inventory fair value adjustments of $2.8 million and amortization of purchased intangible assets of $13.0 million.

Acquisition Costs

Acquisition costs are included in restructuring and acquisition related costs in the consolidated statements of operations. Acquisition-related costs were $2.2 million, $1.0 million, and zero for the years ended December 31, 2025, 2024, and 2023, respectively, related to the acquisitions that occurred during those years, if any.

v3.25.4
Accumulated Other Comprehensive Loss
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Accumulated Other Comprehensive Loss

5. Accumulated Other Comprehensive Loss

Changes in accumulated other comprehensive loss for the years ended December 31, 2025, 2024, and 2023, respectively, were as follows (in thousands):

 

Total Accumulated

 

 

 

 

 

 

 

 

Other

 

 

Cumulative

 

 

Pension

 

 

Comprehensive

 

 

Translation

 

 

Liability

 

 

Income (Loss)

 

 

Adjustments

 

 

Adjustments

 

Balance at December 31, 2022

$

(32,009

)

 

$

(24,427

)

 

$

(7,582

)

Other comprehensive income (loss)

 

6,951

 

 

 

7,823

 

 

 

(872

)

Amounts reclassified from accumulated other comprehensive loss (1)

 

1,020

 

 

 

—

 

 

 

1,020

 

Balance at December 31, 2023

 

(24,038

)

 

 

(16,604

)

 

 

(7,434

)

Other comprehensive income (loss)

 

(6,764

)

 

 

(7,082

)

 

 

318

 

Amounts reclassified from accumulated other comprehensive loss (1)

 

881

 

 

 

—

 

 

 

881

 

Balance at December 31, 2024

 

(29,921

)

 

 

(23,686

)

 

 

(6,235

)

Other comprehensive income (loss)

 

26,109

 

 

 

27,158

 

 

 

(1,049

)

Amounts reclassified from accumulated other comprehensive loss (1)

 

808

 

 

 

—

 

 

 

808

 

Balance at December 31, 2025

$

(3,004

)

 

$

3,472

 

 

$

(6,476

)
(1)
The amounts reclassified from accumulated other comprehensive loss were included in other income (expense) in the consolidated statements of operations.
v3.25.4
Goodwill, Intangible Assets and Impairment Charges
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill, Intangible Assets and Impairment Charges

6. Goodwill, Intangible Assets and Impairment Charges

Goodwill

The following table summarizes changes in goodwill during the year ended December 31, 2025 (in thousands):

 

Amount

 

Balance at beginning of year

$

584,098

 

Goodwill from current year acquisitions

 

43,192

 

Effect of foreign exchange rate changes

 

20,058

 

Balance at end of year

$

647,348

 

 

Goodwill by reportable segment as of December 31, 2025 was as follows (in thousands):

 

Reportable Segment

 

 

 

 

 

Automation Enabling Technologies

 

 

Medical Solutions

 

 

Total

 

Goodwill

$

447,313

 

 

$

351,264

 

 

$

798,577

 

Accumulated impairment of goodwill

 

(119,507

)

 

 

(31,722

)

 

 

(151,229

)

Total

$

327,806

 

 

$

319,542

 

 

$

647,348

 

Goodwill by reportable segment as of December 31, 2024 was as follows (in thousands):

 

Reportable Segment

 

 

 

 

 

Automation Enabling Technologies

 

 

Medical Solutions

 

 

Total

 

Goodwill

$

439,980

 

 

$

295,347

 

 

$

735,327

 

Accumulated impairment of goodwill

 

(119,507

)

 

 

(31,722

)

 

 

(151,229

)

Total

$

320,473

 

 

$

263,625

 

 

$

584,098

 

Intangible Assets

Intangible assets as of December 31, 2025 and 2024, respectively, are summarized as follows (dollar amounts in thousands):

 

December 31, 2025

 

 

Gross Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net Carrying
Amount

 

 

Weighted Average Remaining Life (Years)

 

Amortizable intangible assets:

 

 

 

 

 

 

 

 

 

 

 

Patents and developed technologies

$

235,851

 

 

$

(180,798

)

 

$

55,053

 

 

 

7.0

 

Customer relationships

 

296,868

 

 

 

(191,037

)

 

 

105,831

 

 

 

11.7

 

Trademarks and trade names

 

25,261

 

 

 

(18,396

)

 

 

6,865

 

 

 

9.3

 

Amortizable intangible assets

 

557,980

 

 

 

(390,231

)

 

 

167,749

 

 

 

10.0

 

Non-amortizable intangible assets:

 

 

 

 

 

 

 

 

 

 

 

Trade names

 

13,027

 

 

 

—

 

 

 

13,027

 

 

 

 

Total

$

571,007

 

 

$

(390,231

)

 

$

180,776

 

 

 

 

 

 

December 31, 2024

 

 

Gross Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net Carrying
Amount

 

 

Weighted Average Remaining Life (Years)

 

Amortizable intangible assets:

 

 

 

 

 

 

 

 

 

 

 

Patents and developed technologies

$

218,867

 

 

$

(159,041

)

 

$

59,826

 

 

 

7.6

 

Customer relationships

 

265,156

 

 

 

(158,938

)

 

 

106,218

 

 

 

13.2

 

Trademarks and trade names

 

23,367

 

 

 

(16,594

)

 

 

6,773

 

 

 

9.2

 

Amortizable intangible assets

 

507,390

 

 

 

(334,573

)

 

 

172,817

 

 

 

11.1

 

Non-amortizable intangible assets:

 

 

 

 

 

 

 

 

 

 

 

Trade names

 

13,027

 

 

 

—

 

 

 

13,027

 

 

 

 

Total

$

520,417

 

 

$

(334,573

)

 

$

185,844

 

 

 

 

 

All definite-lived intangible assets are amortized either on a straight-line basis or an economic benefit basis over their remaining estimated useful life. Amortization expense for patents and developed technologies is included in cost of revenue in the accompanying consolidated statements of operations. Amortization expense for customer relationships and definite-lived trademarks, trade names and other intangibles is included in operating expenses in the accompanying consolidated statements of operations. Amortization expense for the periods presented was as follows (in thousands):

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Amortization expense – cost of revenue

$

16,276

 

 

$

14,773

 

 

$

12,150

 

Amortization expense – operating expenses

 

27,477

 

 

 

25,794

 

 

 

20,445

 

Total amortization expense

$

43,753

 

 

$

40,567

 

 

$

32,595

 

Estimated future amortization expense for each of the five succeeding years and thereafter is as follows (in thousands):

Year Ending December 31,

 

Cost of
Revenue

 

 

Operating
Expenses

 

 

Total

 

2026

 

$

15,044

 

 

$

23,111

 

 

$

38,155

 

2027

 

 

12,118

 

 

 

19,263

 

 

 

31,381

 

2028

 

 

10,311

 

 

 

16,221

 

 

 

26,532

 

2029

 

 

7,440

 

 

 

12,616

 

 

 

20,056

 

2030

 

 

4,764

 

 

 

10,129

 

 

 

14,893

 

Thereafter

 

 

5,376

 

 

 

31,356

 

 

 

36,732

 

Total

 

$

55,053

 

 

$

112,696

 

 

$

167,749

 

Impairment Charges

The Company did not have any goodwill or indefinite-lived intangible asset impairment charges during the years ended December 31, 2025, 2024, or 2023.
v3.25.4
Fair Value Measurements
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements

7. Fair Value Measurements

ASC 820, “Fair Value Measurement,” establishes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the third is considered unobservable:

Level 1: Quoted prices for identical assets or liabilities in active markets which the Company can access

Level 2: Observable inputs other than those described in Level 1

Level 3: Unobservable inputs

Current Assets and Liabilities

The Company’s cash equivalents are highly liquid investments with original maturities of three months or less, which represent assets the Company measures at fair value on a recurring basis. The Company determines the fair value of cash equivalents using a market approach based on quoted prices in active markets. The fair values of cash equivalents, accounts receivable, income taxes receivable, accounts payable, income taxes payable and accrued expenses and other current liabilities approximate their carrying values because of their short-term nature.

Foreign Currency Contracts

The Company addresses market risks from changes in foreign currency exchange rates through a risk management program that includes the use of derivative financial instruments to mitigate certain balance sheet foreign currency transaction exposures. The Company uses foreign currency forward contracts as a part of its strategy to manage exposures related to foreign currency denominated monetary assets and liabilities.

Contingent Consideration

On April 8, 2025, the Company completed the acquisition of Keonn. Pursuant to the purchase and sale agreement, the former shareholders of Keonn (the “Sellers”) are eligible to receive contingent consideration based on the achievement of specified revenue targets by Keonn during fiscal years 2025 through 2027. Payment of this contingent consideration is also subject to Keonn maintaining certain minimum gross margin percentage during the applicable periods. The undiscounted range of potential contingent consideration is between €0 and €20.0 million (approximately $21.9 million). If the performance conditions are met, the contingent consideration will be payable annually, with the first payment due in the first half of 2026. As of the acquisition date, the estimated fair value of the contingent consideration was €4.1 million (approximately $4.5 million), determined using the Monte Carlo valuation method. This amount was recorded as part of the purchase price. Subsequent changes in the estimated fair value are recognized in the consolidated statement of operations in restructuring, acquisition, and related costs until the liability is fully settled. During 2025, the fair value of the contingent consideration was adjusted to €4.9 million ($5.7 million).

 

The following table summarizes the fair values of the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2025 (in thousands):

 

Fair Value

 

 

Quoted Price in
Active Market for
 Identical Assets
(Level 1)

 

 

Significant Other
Observable Inputs
(Level 2)

 

 

Significant Other
Unobservable
Inputs
(Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

Money market funds

$

291,629

 

 

$

291,629

 

 

$

—

 

 

$

—

 

Prepaid expenses and other current assets:

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

110

 

 

 

—

 

 

 

110

 

 

 

—

 

 

$

291,739

 

 

$

291,629

 

 

$

110

 

 

$

—

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Accrued expenses and other current liabilities:

 

 

 

 

 

 

 

 

 

 

 

Contingent considerations - Current

$

4,465

 

 

$

—

 

 

$

—

 

 

$

4,465

 

Contingent considerations - Long term

 

1,291

 

 

 

—

 

 

 

—

 

 

 

1,291

 

Foreign currency forward contracts

 

134

 

 

 

—

 

 

 

134

 

 

 

—

 

 

$

5,890

 

 

$

—

 

 

$

134

 

 

$

5,756

 

The following table summarizes the fair values of the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2024 (in thousands):

 

Fair Value

 

 

Quoted Price in
Active Market for
 Identical Assets
(Level 1)

 

 

Significant Other
Observable Inputs
(Level 2)

 

 

Significant Other
Unobservable
Inputs
(Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Prepaid expenses and other current assets:

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

$

1,226

 

 

$

—

 

 

$

1,226

 

 

$

—

 

 

$

1,226

 

 

$

—

 

 

$

1,226

 

 

$

—

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Accrued expenses and other current liabilities:

 

 

 

 

 

 

 

 

 

 

 

Contingent considerations - Current

$

57

 

 

$

—

 

 

$

—

 

 

$

57

 

Foreign currency forward contracts

 

1,401

 

 

 

—

 

 

 

1,401

 

 

 

—

 

 

$

1,458

 

 

$

—

 

 

$

1,401

 

 

$

57

 

 

Changes in the fair value of Level 3 contingent considerations during the twelve months ended December 31, 2025 were as follows (in thousands):

 

Contingent Considerations

 

Balance at December 31, 2024

$

57

 

Acquisition of Keonn

 

4,537

 

Payments

 

—

 

Fair value adjustments

 

830

 

Effect of foreign exchange rates

 

332

 

Balance at December 31, 2025

$

5,756

 

The following table provides qualitative information associated with the fair value measurement of the Company’s Level 3 liabilities:

Liability

December 31, 2025 Fair Value

(in thousands)

Valuation Technique

Unobservable Inputs

Percentage Applied

Contingent consideration (Keonn)

$5,692

Monte Carlo method

Historical and projected revenue and gross profit margin from fiscal year 2025 to 2027

N/A

 

 

 

 

 

 

Gross Profit Premium

 

9.3%

 

 

 

 

 

 

Revenue risk premium

 

8.4%

 

 

 

 

 

 

Gross Profit Volatility

 

38.5%

 

 

 

 

 

 

Revenue Volatility

 

35.0%

 

 

 

 

 

 

Credit spread

 

1.9%

During the years ended December 31, 2025 and 2024, there were no transfers between fair value levels.

See Note 11 for a discussion of the estimated fair value of the Company’s outstanding debt and Note 15 for a discussion of the estimated fair value of the Company’s pension plan assets.
v3.25.4
Foreign Currency Contracts
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Foreign Currency Contracts

8. Foreign Currency Contracts

The Company addresses market risks from changes in foreign currency exchange rates through a risk management program that includes the use of derivative financial instruments to mitigate certain foreign currency transaction exposures from future settlement of non-functional currency monetary assets and liabilities as of the end of a period. The Company does not enter into derivative transactions for speculative purposes. Gains and losses on derivative financial instruments substantially offset losses and gains on the underlying hedged exposures. Furthermore, the Company manages its exposure to counterparty risks on derivative instruments by entering into contracts with a diversified group of major financial institutions and by actively monitoring outstanding positions.

As of December 31, 2025, the notional amount and fair value of the Company’s foreign currency forward contracts was $147.7 million and a net loss of less than $0.1 million, respectively. As of December 31, 2024, the notional amount and fair value of the Company’s foreign currency forward contracts was $187.4 million and a net loss of $0.2 million, respectively.

For the years ended December 31, 2025, 2024 and 2023, the Company recognized aggregate net loss of $2.1 million, net gain of $4.9 million, and net gain of $2.5 million, respectively, from the settlement of foreign currency forward contracts, which were included in foreign exchange transaction gains (losses) in the consolidated statements of operations.
v3.25.4
Earnings per Common Share
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Earnings per Common Share

9. Earnings per Common Share

Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding during the year. Fully vested restricted stock units, deferred stock units granted to members of the Company’s Board of Directors and the 4.7 million minimum shares issuable under stock purchase contract are included in the calculation of weighted average number of common shares outstanding.

For diluted earnings per common share, the denominator includes the dilutive effect of outstanding common share equivalents. The dilutive effects of outstanding common share equivalents, including outstanding service-based restricted stock units (“RSUs”), stock options, performance-based restricted stock units (“PSUs”), and stock purchase contracts.

The dilutive effects of service-based RSUs, stock options, and PSUs are calculated using the treasury stock method. PSUs are considered contingently issuable shares, as their vesting may be based on the achievement of specified company financial performance metrics (“attainment-based PSUs”), the satisfaction of certain market conditions (“market-based PSUs”) or a hybrid of company financial performance metrics and market conditions (“hybrid PSUs”).

The dilutive effects of market-based PSUs is included in the weighted average common share outstanding based on the number of shares, if any, that would be issuable as of the end of the reporting period, assuming the end of the reporting period is also the end of the performance period. The dilutive effects of attainment-based and hybrid PSUs is included in the weighted average common share outstanding only to the extend that the applicable performance targets have been achieved as of the end of the reporting period.

The dilutive effects of stock purchase contracts represent the difference between the minimum and the maximum number of shares issuable based on the applicable market value. The "applicable market value" is defined as weighted-average price per share of common stock over the twenty consecutive trading day period immediately preceding the balance sheet date, or November 1, 2028, for settlement of the stock purchase contracts.

The following table sets forth the computation of basic and diluted earnings per common share (in thousands, except per share amounts):

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Numerators:

 

 

 

 

 

 

 

 

Net income

$

53,829

 

 

$

64,087

 

 

$

72,878

 

 

 

 

 

 

 

 

 

 

Denominators:

 

 

 

 

 

 

 

 

Weighted average common shares outstanding— basic

 

36,589

 

 

 

35,950

 

 

 

35,844

 

Dilutive potential common shares

 

113

 

 

 

174

 

 

 

187

 

Weighted average common shares outstanding— diluted

 

36,702

 

 

 

36,124

 

 

 

36,031

 

Antidilutive potential common shares excluded from above

 

239

 

 

 

128

 

 

 

99

 

 

 

 

 

 

 

 

 

 

Earnings per Common Share:

 

 

 

 

 

 

 

 

Basic

$

1.47

 

 

$

1.78

 

 

$

2.03

 

Diluted

$

1.47

 

 

$

1.77

 

 

$

2.02

 

 

For the years ended December 31, 2025, 2024 and 2023, 209 thousand shares, 150 thousand shares, and 104 thousand shares respectively, of attainment-based PSUs and hybrid PSUs were excluded from the calculation of the denominator because they were considered contingently issuable shares and the related performance targets had not been achieved as of December 31, 2025, December 31, 2024, and December 31, 2023.
v3.25.4
Supplementary Balance Sheet Information
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Supplementary Balance Sheet Information

10. Supplementary Balance Sheet Information

The following tables provide the details of selected balance sheet items as of the dates indicated (in thousands):

Inventories

 

December 31,

 

 

2025

 

 

2024

 

Raw materials

$

123,305

 

 

$

92,198

 

Work-in-process

 

32,479

 

 

 

24,719

 

Finished goods

 

31,716

 

 

 

27,327

 

Demo and consigned inventory

 

784

 

 

 

362

 

Total inventories

$

188,284

 

 

$

144,606

 

 

Property, Plant and Equipment, Net

 

December 31,

 

 

2025

 

 

2024

 

Cost:

 

 

 

 

 

Land, buildings and improvements

$

103,856

 

 

$

99,217

 

Machinery and equipment

 

147,195

 

 

 

125,694

 

Total cost

 

251,051

 

 

 

224,911

 

Accumulated depreciation

 

(132,560

)

 

 

(111,776

)

Property, plant and equipment, net

$

118,491

 

 

$

113,135

 

The following table summarizes depreciation expense on property, plant and equipment, including demo units and assets under finance leases (in thousands):

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Depreciation expense

$

18,179

 

 

$

14,996

 

 

$

14,017

 

Accrued Expenses and Other Current Liabilities

The following table summarizes accrued expenses and other current liabilities as of the dates indicated (in thousands):

 

December 31,

 

 

2025

 

 

2024

 

Accrued compensation and benefits

$

16,405

 

 

$

28,361

 

Accrued warranty

 

4,463

 

 

 

4,805

 

Contract liabilities, current portion

 

10,945

 

 

 

5,715

 

Accrued restructuring

 

10,251

 

 

 

6,131

 

Accrued contingent considerations and earn-outs

 

4,465

 

 

 

57

 

Other

 

16,969

 

 

 

15,262

 

Total

$

63,498

 

 

$

60,331

 

Accrued Warranty

The following table summarizes changes in accrued warranty for the periods indicated (in thousands):

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Balance at beginning of year

$

4,805

 

 

$

5,292

 

 

$

5,127

 

Provision charged to cost of revenue

 

2,250

 

 

 

1,140

 

 

 

2,445

 

Warranty liabilities acquired from acquisitions

 

—

 

 

 

76

 

 

 

—

 

Use of provision

 

(2,674

)

 

 

(1,680

)

 

 

(2,338

)

Foreign currency exchange rate changes

 

82

 

 

 

(23

)

 

 

58

 

Balance at end of year

$

4,463

 

 

$

4,805

 

 

$

5,292

 

Other Long-term Liabilities

The following table summarizes other long-term liabilities as of the dates indicated (in thousands):

 

December 31,

 

 

2025

 

 

2024

 

Finance lease obligations

$

2,348

 

 

$

3,175

 

Other

 

4,638

 

 

 

1,316

 

Total

$

6,986

 

 

$

4,491

 

 
v3.25.4
Debt
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Debt

11. Debt

Debt consisted of the following (in thousands):

 

December 31,

 

 

2025

 

 

2024

 

Senior Credit Facilities – term loans

$

6,242

 

 

$

4,710

 

Tangible Equity Units – Amortizing Notes

 

33,870

 

 

 

—

 

Less: unamortized debt issuance costs

 

(1,821

)

 

 

(19

)

Total current portion of long-term debt

$

38,291

 

 

$

4,691

 

 

 

 

 

 

 

Senior Credit Facilities – term loans

$

142,752

 

 

$

65,698

 

Senior Credit Facilities – revolving credit facility

 

—

 

 

 

348,751

 

Tangible Equity Units – Amortizing Notes

 

76,691

 

 

 

—

 

Less: unamortized debt issuance costs

 

(6,905

)

 

 

(2,500

)

Total long-term debt

$

212,538

 

 

$

411,949

 

 

 

 

 

 

 

Total debt

$

250,829

 

 

$

416,640

 

Senior Credit Facilities

On June 27, 2025, the Company entered into an amended and restated credit agreement (the “Fourth Amended and Restated Credit Agreement”) with existing and new lenders for an aggregate credit facility of approximately $1.0 billion, consisting of a €65.3 million euro-denominated 5-year term loan facility (the “Euro Term Loans”), a $75.0 million U.S. Dollar denominated 5-year term loan facility (the “U.S. Term Loans” and together with the Euro Term Loans, the “Term Loans”), and an $850.0 million 5-year revolving credit facility (the “Revolving Facility”, and together with the Euro Term Loans and the U.S. Term Loans, collectively, the “Senior Credit Facilities”). The Senior Credit Facilities mature in June 2030 and include an uncommitted “accordion” feature pursuant to which the commitments thereunder may be increased by an additional $350.0 million in aggregate, subject to the satisfaction of certain customary conditions. In connection with the Fourth Amended and Restated Credit Agreement, the Company capitalized $4.7 million deferred financing costs and recorded a $0.4 million loss from the write-off of a portion of the unamortized deferred financing costs.

On November 5, 2025, The Company entered into an amendment (the “First Amendment”) to the Fourth Amended and Restated Credit Agreement. The First Amendment increases the maximum consolidated leverage ratio permitted thereunder to 3.75:1.00, with a step-up to 4.25:1.00 following a designated acquisition and revised the Company's consolidated leverage ratio definition (as defined in the Fourth Amended and Restated Credit Agreement) allowing for the use of up to $100 million unrestricted cash and cash equivalents as a reduction to consolidated funded indebtedness (as defined in the Fourth Amended and Restated Credit Agreement).

The borrowings under the Senior Credit Facilities bear interest at the Base Rate (as defined in the Fourth Amended and Restated Credit Agreement) plus a margin ranging between zero and 0.75% per annum, determined by reference to the our consolidated leverage ratio, or SOFR, SONIA or EURIBOR, as applicable, plus a margin ranging between 1.00% and 1.75% per annum, determined by reference to our consolidated leverage ratio. In addition, we are obligated to pay a commitment fee on the unused portion of the Revolving Facility.

The Fourth Amended and Restated Credit Agreement contains various customary representations, warranties and covenants applicable to the Company and its subsidiaries, including, among others: (i) limitations on fundamental changes involving the Company and its subsidiaries; (ii) limitations on the disposition of assets; and (iii) limitations on indebtedness, investments, and liens. The Agreement also requires the Company to satisfy certain financial maintenance covenants on a quarterly basis, including maintaining a minimum consolidated fixed charge coverage ratio of 1.25:1.00 and a maximum consolidated leverage ratio of 3.75:1.00, with a step up to 4.25:1.00 for the four consecutive quarters following certain acquisitions with an aggregate consideration greater than or equal to $50.0 million.

The outstanding principal balance under the Euro Term Loans is payable in quarterly installments of €1.1 million (approximately $1.3 million), that began in September 2025, with the remaining balance due upon maturity. The U.S. Term Loans

require quarterly installment payments of $0.5 million starting in September 2026, increasing to $0.9 million beginning in September 2027, with the remaining balance also due upon maturity. The Company may make additional principal payments at any time, which will reduce the next scheduled installment. Borrowings under the revolving credit facility may be repaid at any time prior to maturity.

As of December 31, 2025, the outstanding principal under the Company’s term loan facilities are scheduled to be repaid as follows (in thousands):

 

Principal Amount

 

2026

$

6,242

 

2027

 

8,117

 

2028

 

9,055

 

2029

 

9,055

 

2030

 

116,525

 

Total debt repayments

$

148,994

 

 

 

 

The Company may be required to prepay outstanding loans under the Fourth Amended and Restated Credit Agreement with the net proceeds from certain asset dispositions and incurrence of certain debt. At the election of the Company, and so long as no default shall have occurred, the Company may reinvest all, or any portion, of the net proceeds from such asset dispositions or incurrence of debt within a year.

As of December 31, 2025, the Company had $850.0 million additional borrowing capacity available under the revolving credit facility. Excluding commitment fees under the revolving credit facility, the weighted average interest rate for the Senior Credit Facilities was approximately 4.11% as of December 31, 2025. The commitment fee rate for the unused commitments under the revolving credit facility was approximately 0.25% as of December 31, 2025.

Guarantees

The Senior Credit Facilities are guaranteed by Novanta Inc., Novanta Corporation, NDS Surgical Imaging LLC, Novanta Medical Technologies Corp., Novanta Medical USA, Inc, Novanta Europe GmbH, Novanta U.K. Investments Holding Limited, Novanta Technologies U.K. Limited, ATI Industrial Automation, Inc., ATI Industrial Mexico, LLC, Motion Solutions Parent Corp, and Bearings Engineers, Inc. (collectively, “Guarantors”). Each Guarantor, jointly and severally, unconditionally guarantees the due and punctual payment of the principal, interest and fees under the Senior Credit Facilities, when due and payable, whether at maturity, by required prepayment, by acceleration or otherwise. In addition, Guarantors guarantee the due and punctual payment, fees and interest on the overdue principal of the Senior Credit Facilities and the due and punctual performance of all obligations of the Company in accordance with the terms of the Fourth Amended and Restated Credit Agreement. Furthermore, each Guarantor, jointly and severally, unconditionally guarantees that in the event of any extension, renewal, amendment, refinancing or modification of any of the Senior Credit Facilities, amounts due will be promptly paid in full when due in accordance with the terms of the extension or renewal, at stated maturity, by acceleration or otherwise.

The obligations of each Guarantor are limited to the maximum amount, after giving effect to all other contingent and fixed liabilities or any collections from, or payments made by or on behalf of, any other Guarantor. Each Guarantor that makes a payment or distribution under a Guarantee is entitled to a contribution from each other Guarantor of its pro rata share based on the adjusted net assets of each Guarantor. If at any time any payment of any of the obligations of the Guarantors is rescinded or must otherwise be returned upon the insolvency, bankruptcy or reorganization of the Company, a Guarantor or otherwise, the Guarantees will continue to be effective or be reinstated, as the case may be, as though such payment had not been made.

Each Guarantor may be released from its obligations under its respective Guarantee and its obligations under the Fourth Amended and Restated Credit Agreement upon the occurrence of certain events, including, but not limited to: (i) the Guarantor ceasing to be a subsidiary; or (ii) payment in full of the principal and accrued and unpaid interest on the Senior Credit Facilities and all other obligations.

The maximum potential amount of future payments that the Guarantors could be required to make under the Guarantee is the principal amount of the Senior Credit Facilities plus all accrued and unpaid interest thereon. However, as of December 31, 2025, the Guarantors were not expected to be required to perform under the Guarantee.

Liens

The Company’s obligations under the Senior Credit Facilities are secured, on a senior basis, by a lien on substantially all of the assets of Novanta Inc. The Fourth Amended and Restated Credit Agreement also contains customary events of default.

Deferred Financing Costs

The Company allocated the deferred financing costs between the term loan and the revolving credit facility based on the maximum borrowing capacity and are amortized on a straight-line basis over the term of the Senior Credit Facilities. Non-cash interest expense related to the amortization of the deferred financing costs was $1.2 million, $1.2 million and $1.2 million for the years ended December 31, 2025, December 31, 2024 and December 31, 2023, respectively. Unamortized deferred financing costs are presented as a reduction to the debt balances on the consolidated balance sheets.

Fair Value of Debt

As of December 31, 2025 and December 31, 2024, the outstanding balance of the Company’s debt approximated its fair value based on current rates available to the Company for debt of the same maturities. The fair value of the Company’s debt is classified as Level 2 under the fair value hierarchy.
v3.25.4
Tangible Equity Unit ("TEU") Offering
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Tangible Equity Unit ("TEU") Offering

12. Tangible Equity Unit (“TEU”) Offering

On November 12, 2025 the Company issued 12,650,000 of its 6.50% tangible equity units (the “Units”) at a public offering price of $50.00 per Unit, for an aggregate offering of $632.5 million. The Company received proceeds of $613.1 million after the deduction of the underwriters fees and other issuance costs. Each Unit is comprised of a prepaid stock purchase contract and a senior amortizing note with an initial principal amount of $8.74, due November 1, 2028 (“Amortizing Note”).

Each Unit may be legally separated into the two components, both of which are freestanding instruments and separate units of account. The Company allocated the proceeds from the issuance of the Units to the purchase contracts and amortizing notes based on the relative fair values of the respective components, determined as of the date of issuance of the Units. The Company recognized the issuance of the purchase contract portion of the Units, net of issuance costs, as additional paid-in-capital on the consolidated balance sheet. The Company separately recognized the amortizing notes portion of the Units, net of issuance costs, as long-term debt, with payments expected in the next twelve months reflected in current portion of long-term debt on the consolidated balance sheet.

The proceeds from the issuance of the Units were allocated to equity and debt based on the relative fair value of the respective components each Unit as follows:

 

Equity Component

 

 

Debt Component

 

 

Total

 

Fair value per unit

$

41.26

 

 

$

8.74

 

 

$

50.00

 

 

 

 

 

 

 

 

 

 

Gross proceeds

 

521,939

 

 

 

110,561

 

 

 

632,500

 

Less: Issuance costs

 

16,011

 

 

 

3,392

 

 

 

19,403

 

Net proceeds

$

505,928

 

 

$

107,169

 

 

$

613,097

 

Unless settled early in accordance with the terms of the instruments and subject to postponement in certain limited circumstances, each prepaid stock purchase contract will automatically settle on November 1, 2028 (the mandatory settlement date) for a number of shares of the Company’s common stock based on the arithmetic average of the volume weighted average price (“VWAPs”) of the Company’s common stock on each of the 20 consecutive trading days beginning on, and including, the 21st scheduled trading day immediately preceding November 1, 2028 (applicable market value) with reference to the following settlement rates:

Applicable Market Value

 

Common Stock Issued

Equal to or greater than $134.0842

 

0.3729 shares (minimum settlement rate)

Less than $134.0842 but greater than $107.26

 

$50 divided by applicable market value

Less than or equal to $107.26

 

0.4662 shares (maximum settlement rate)

 

The purchase contracts are mandatorily convertible into a minimum of 4.7 million shares or a maximum of 5.9 million shares of our common stock on the mandatory settlement date (unless redeemed by us or settled earlier at the unit holder's option). The 4.7 million minimum shares are included in the calculation of basic weighted average shares outstanding. The difference between the minimum and maximum shares represents potentially dilutive securities, which are included in the calculation of diluted weighted average shares outstanding on a pro rata basis to the extent that the average applicable market value is equal to or greater than $107.26 but is less than or equal to $134.08 during the period (see Note 9).

Each Amortizing Note will bear interest at the rate of 6.30% per annum and will have a final installment payment date of November 1, 2028. On each February 1, May 1, August 1 and November 1, commencing on February 1, 2026, the Company will pay quarterly cash installments of $0.8125 per Amortizing Note (except for the February 1, 2026 installment payment, which will be $0.7132 per Amortizing Note), which will constitute a payment of interest and a partial repayment of principal, and which cash payment in the aggregate per year will be equivalent to 6.50% per year with respect to each $50.00 stated amount of Unit.

As of December 31, 2025, the outstanding principal under the Company's Amortizing Notes are scheduled to be repaid as follows (in thousands):

 

Principal Amount

 

2026

$

33,870

 

2027

 

37,147

 

2028

 

39,544

 

Total debt repayments

$

110,561

 
v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases

13. Leases

Most leases held by the Company expire between 2026 and 2037. In the U.K., where longer lease terms are more common, the Company has a land lease that extends through 2078. Certain leases include terms such as one or more options to renew, with renewal terms that can extend the lease term from one to 10 years, and options to terminate the leases within one year. The exercise of lease renewal or termination option is at the Company’s sole discretion; therefore, the majority of renewals to extend the lease terms are not included in the Company’s right-of-use assets and operating lease liabilities as they are not reasonably certain of being exercised. The Company regularly evaluates the renewal options and includes the renewal periods in the lease term when they are reasonably certain of being exercised. The depreciable life of right-of-use assets and leasehold improvements is limited to the expected lease terms.

The following table summarizes the components of lease costs included in the statements of operations for the periods indicated (in thousands):

 

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Operating lease cost

$

11,506

 

 

$

12,109

 

 

$

10,475

 

Finance lease cost

 

 

 

 

 

 

 

 

Amortization of right-of-use assets

 

602

 

 

 

602

 

 

 

602

 

Interest on lease liabilities

 

195

 

 

 

236

 

 

 

274

 

Variable lease cost

 

1,220

 

 

 

1,192

 

 

 

1,007

 

Total lease cost

$

13,523

 

 

$

14,139

 

 

$

12,358

 

 

The following table provides the details of balance sheet information related to leases as of the dates indicated (in thousands, except lease term and discount rate):

 

 

December 31,

 

 

 

2025

 

 

2024

 

Operating leases:

 

 

 

 

 

 

Operating lease right-of-use assets

 

$

41,697

 

 

$

42,908

 

 

 

 

 

 

 

 

Current portion of operating lease liabilities

 

$

9,857

 

 

$

9,879

 

Operating lease liabilities

 

 

38,873

 

 

 

40,548

 

Total operating lease liabilities

 

$

48,730

 

 

$

50,427

 

 

 

 

 

 

 

 

Finance leases:

 

 

 

 

 

 

Property, plant and equipment, gross

 

$

9,582

 

 

$

9,582

 

Accumulated depreciation

 

 

(7,476

)

 

 

(6,874

)

Finance lease assets included in property, plant and equipment, net

 

$

2,106

 

 

$

2,708

 

 

 

 

 

 

 

 

Accrued expenses and other current liabilities

 

$

828

 

 

$

759

 

Other liabilities

 

 

2,348

 

 

 

3,175

 

Total finance lease liabilities

 

$

3,176

 

 

$

3,934

 

 

 

 

 

 

 

 

Weighted-average remaining lease term (in years):

 

 

 

 

 

 

Operating leases

 

 

7.3

 

 

 

7.4

 

Finance leases

 

 

3.5

 

 

 

4.5

 

Weighted-average discount rate:

 

 

 

 

 

 

Operating leases

 

 

4.92

%

 

 

4.82

%

Finance leases

 

 

5.54

%

 

 

5.54

%

The following table provides the details of cash flow information related to leases for the periods indicated (in thousands):

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Cash paid for amounts included in lease liabilities:

 

 

 

 

 

 

 

 

Operating cash flows from finance leases

$

195

 

 

$

236

 

 

$

274

 

Operating cash flows from operating leases

$

12,047

 

 

$

11,169

 

 

$

7,826

 

Financing cash flows from finance leases

$

759

 

 

$

718

 

 

$

657

 

Supplemental non-cash information:

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for new operating lease liabilities(1)

$

6,315

 

 

$

14,237

 

 

$

4,046

 

Right-of-use assets obtained in exchange for new finance lease liabilities

$

—

 

 

$

—

 

 

$

—

 

 

(1)
The amount for the twelve months ended December 31, 2025 includes $3.1 million of right-of-use assets acquired as part of the Keonn acquisition. The amount for the twelve months ended December 31, 2024 includes $8.1 million of right-of-use assets acquired as part of the Motion Solutions acquisition.

Future minimum lease payments under operating and finance leases expiring subsequent to December 31, 2025, including operating leases associated with facilities that have been vacated as a result of the Company’s restructuring actions, are summarized as follows (in thousands):

Year Ending December 31,

 

Operating Leases

 

 

Finance Leases

 

2026

 

$

11,572

 

 

$

979

 

2027

 

 

10,447

 

 

 

1,003

 

2028

 

 

7,495

 

 

 

1,003

 

2029

 

 

6,476

 

 

 

502

 

2030

 

 

6,166

 

 

 

—

 

Thereafter

 

 

17,195

 

 

 

—

 

Total minimum lease payments

 

 

59,351

 

 

 

3,487

 

Less: interest

 

 

(10,621

)

 

 

(311

)

Present value of lease liabilities

 

$

48,730

 

 

$

3,176

 
v3.25.4
Stockholders’ Equity and Share-Based Compensation
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Stockholders’ Equity and Share-Based Compensation

14. Stockholders’ Equity and Share-Based Compensation

Preferred Shares

In May 2021, the Company’s shareholders approved a special resolution to amend the Company’s articles to authorize up to 7.0 million preferred shares for future issuance. The Company’s Board of Directors is authorized to designate and issue one or more series of preferred shares, fix the rights, preferences and designation, as deemed necessary or advisable, relating to the preferred shares, provided that no shares of any series may be entitled to more than one vote per share. As of December 31, 2025, no preferred shares had been issued and outstanding.

Common Shares

The Company has an unlimited number of no-par value common shares authorized for issuance. Holders of common shares are entitled to one vote per share. Holders of common shares are entitled to receive dividends, if and when declared by the Board of Directors, and to share ratably in the Company’s assets legally available for distribution to shareholders in the event of liquidation. Holders of common shares have no redemption or conversion rights.

Common Share Repurchases

The Company’s Board of Directors may approve share repurchase plans from time to time. Under these repurchase plans, shares may be repurchased at the Company’s discretion based on ongoing assessment of the capital needs of the business, market prices of the Company’s common shares, and general market conditions. Shares may also be repurchased through an accelerated share purchase agreement on the open market or in privately negotiated transactions in accordance with applicable federal securities laws. Repurchases may be made under certain SEC regulations, which would permit common shares to be repurchased when the Company would otherwise be prohibited from doing so under insider trading laws. While the share repurchase plans are generally intended to offset dilution from equity awards granted to the Company’s employees and directors, the plans do not obligate the Company to acquire any particular amount of common shares. No time limit is typically set for the completion of the share repurchase plans, and the plans may be suspended or discontinued at any time. The Company expects to fund share repurchases through cash on hand and cash generated from operations.

In February 2020, the Company’s Board of Directors approved a share repurchase plan (the “2020 Repurchase Plan”) authorizing the repurchase of an additional $50.0 million worth of common shares. During 2025, the Company repurchased 357 thousand shares for an aggregate purchase price of $39.3 million at an average price of $110.17 per share under the 2020 Repurchase Plan. No shares were repurchased during the years ended December 31, 2024 and 2023. As of December 31, 2025, the Company had $10.2 million available for future share repurchases under the 2020 Repurchase Plan.

In September 2025, the Company’s Board of Directors approved a new share repurchase plan (the “2025 Repurchase Plan”) authorizing the repurchase of an additional $200.0 million worth of common shares. The Company expects that share repurchases will be made under the 2025 Repurchase Plan after the 2020 Repurchase Plan is completed. As of December 31, 2025, no shares had been repurchased under the 2025 Repurchase Plan.

Amended and Restated 2010 Incentive Plan

In November 2010, the Company’s shareholders approved the 2010 Incentive Award Plan under which the Company may grant share-based compensation awards to employees, consultants and directors. In May 2021, the Company’s shareholders approved an amended and restated 2010 Incentive Award Plan (as amended, the “Amended and Restated 2010 Incentive Plan”). The maximum number of shares which can be issued pursuant to the Amended and Restated 2010 Incentive Plan is 6,148,613, subject to adjustment as set forth in the Amended and Restated 2010 Incentive Plan. The Amended and Restated 2010 Incentive Plan provides for the grant of incentive stock options, non-qualified stock options, restricted stock, restricted stock units, stock appreciation rights, deferred stock, deferred stock units, dividend equivalents, performance awards and stock payments (collectively referred to as “Awards”). The Amended and Restated 2010 Incentive Plan provides for specific limits on the number of shares with respect to Awards that may be granted to any one person during any calendar year and the amount of cash that can be paid with respect to Awards to any one person during any calendar year. The Amended and Restated 2010 Incentive Plan will expire and no further Awards may be granted after May 13, 2031. As of December 31, 2025, there were 1,251,140 shares available for future Awards under the Amended and Restated 2010 Incentive Plan.

Shares subject to Awards that have expired, forfeited or settled in cash, or repurchased by the Company at the same price paid by the awardee may be added back to the number of shares available for grant under the Amended and Restated 2010 Incentive Plan and may be granted as new Awards. Notwithstanding the foregoing, the following shares will not be added back to the number of shares available for grant: (a) shares that are used to pay the exercise price for an option, (b) shares tendered or withheld to pay taxes with respect to any Award (other than options and stock appreciation rights) to the extent they exceed the number of shares with a fair market value equal to the tax liability based on minimum withholding rates, (c) shares tendered or withheld to pay taxes with respect to options and stock appreciation rights, (d) shares subject to a stock appreciation right that are not issued in connection with the stock settlement of the stock appreciation right on exercise thereof, and (e) shares purchased on the open market with the cash proceeds from the exercise of options. Shares issued to satisfy Awards under the Amended and Restated 2010 Incentive Plan may be previously authorized but unissued shares, treasury shares or shares repurchased on the open market.

Share-Based Compensation Expense

The table below summarizes share-based compensation expense recorded in operating income for the periods indicated (in thousands):

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Selling, general and administrative

$

22,629

 

 

$

19,885

 

 

$

21,963

 

Research and development and engineering

 

3,988

 

 

 

2,346

 

 

 

2,031

 

Cost of revenue

 

2,877

 

 

 

1,076

 

 

 

1,594

 

Restructuring, acquisition and related costs

 

44

 

 

 

—

 

 

 

—

 

Total share-based compensation expense

$

29,538

 

 

$

23,307

 

 

$

25,588

 

The expense recorded during each of the three years ended December 31, 2025, December 31, 2024 and December 31, 2023 included $1.6 million, $1.6 million and $1.2 million, respectively, related to restricted stock units (“RSUs”) and deferred stock units (“DSUs”) granted to the members of the Company’s Board of Directors.

As of December 31, 2025, the Company’s outstanding equity awards for which compensation expense will be recognized in the future consisted of time-based RSUs, performance stock units (“PSUs”) and stock options granted under the Amended and Restated 2010 Incentive Plan. The Company expects to record an aggregate share-based compensation expense of $45.3 million, net of estimated forfeitures, over a weighted average period of 1.90 years subsequent to December 31, 2025, for all outstanding Awards as of December 31, 2025.

Restricted Stock Units and Deferred Stock Units

The Company’s RSUs have generally been issued to employees and the Company's Board of Directors with vesting periods ranging from zero to four years and vest based solely on service conditions. Accordingly, the Company recognizes compensation expense on a straight-line basis over the requisite service period. The Company reduces the compensation expense by an estimated forfeiture rate which is based on anticipated forfeitures and actual experience.

DSUs were previously granted to the members of the Company’s Board of Directors. The compensation expense associated with the DSUs is recognized in full on the respective date of grant, as DSUs are fully vested and non-forfeitable upon grant. Outstanding DSUs are converted into common shares upon Board members' resignation or retirement from the Board. There were 40 thousand and 40 thousand DSUs outstanding as of December 31, 2025 and December 31, 2024, respectively, which were included in the calculation of weighted average basic shares outstanding for the respective period.

The table below summarizes activities during the year ended December 31, 2025 relating to restricted and deferred stock units issued and outstanding under the Amended and Restated 2010 Incentive Plan:

 

Restricted and Deferred
Stock Units
(In thousands)

 

 

Weighted
Average Grant
Date Fair Value

 

 

Weighted Average
Remaining Vesting
Period (In years)

 

Aggregate Intrinsic
Value (1)
(In thousands)

 

Unvested at December 31, 2024

 

198

 

 

$

154.43

 

 

 

 

 

 

Granted

 

336

 

 

$

128.30

 

 

 

 

 

 

Vested

 

(94

)

 

$

147.47

 

 

 

 

 

 

Forfeited

 

(50

)

 

$

142.76

 

 

 

 

 

 

Unvested at December 31, 2025

 

390

 

 

$

135.09

 

 

1.08 years

 

$

46,354

 

Expected to vest as of December 31, 2025

 

360

 

 

$

136.01

 

 

1.08 years

 

$

42,784

 
(1)
The aggregate intrinsic value is calculated based on the fair value of $118.99 per common share as of December 31, 2025 due to the fact that the restricted and deferred stock units carry a $0 purchase price.

The total fair value of restricted stock units and deferred stock units that vested in 2025, based on the market price of the underlying shares as of the date of vesting, was $12.7 million.

Performance Stock Units

The Company typically grants PSUs that are based on the Company’s financial performance metrics, market conditions, or a hybrid of company financial performance metrics and market conditions. These PSUs generally cliff vest on the first day following the end of the specified performance period.

The number of common shares to be issued upon settlement following vesting of attainment-based PSUs is determined based on the Company’s financial performance metrics over the specified performance period against the targets established by the Company’s Board of Directors at the time of grant and will be in the range of zero to 200% of the target number of shares. The Company recognizes the related compensation expense ratably over the performance period based on the number of shares that are deemed probable of vesting at the end of the specified performance period. This probability assessment is performed quarterly and the cumulative effect of a change in the estimated compensation expense, if any, is recognized in the consolidated statement of operations in the period in which such determination is made.

The number of common shares to be issued upon settlement following vesting of market-based PSUs is determined based on the relative market performance of the Company’s common shares compared to the Russell 2000 Index over the specified performance period using a payout formula established by the Company’s Board of Directors at the time of grant and will be in the range of zero to 200% of the target number of shares. The Company recognizes the related compensation expense based on the fair value of the market-based PSUs, determined using the Monte-Carlo valuation method as of the grant date, on a straight-line basis from the grant date to the end of the specified performance period. Compensation expense on market-based PSUs will not be affected by the number of shares that will ultimately vest at the end of the specified performance period.

The number of common shares to be issued upon settlement following vesting of PSU awards that are based on the achievement of a hybrid of company financial performance metrics and market conditions (“Hybrid PSUs”) is determined based on the Company's financial performance metrics achieved over the specified performance period against the targets established by the Company's Board of Directors at the time of grant and a market-based multiplier based on the percentile ranking of the relative market performance of the Company’s common shares compared to the Russell 2000 Index companies. The payout will be in the range of zero to 260% of the target number of shares. The Company determines the fair value of these Hybrid PSUs using the Monte-Carlo valuation method as of the grant date. The Company recognizes compensation expense associated with the Hybrid PSUs ratably over the performance period based on the fair value of the PSUs as of the grant date and the number of shares that are deemed probable of vesting based on the estimated achievement of the pertinent company financial performance metrics at the end

of the specified performance period. The probability assessment is performed quarterly and the cumulative effect of a change in the estimated compensation expense, if any, is recognized in the consolidated statement of operations in the period in which such determination is made.

The table below summarizes activities during the year ended December 31, 2025 relating to performance-based restricted stock units issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan:

 

Performance
Stock Units (2)
(In thousands)

 

 

Weighted
Average Grant
Date Fair Value

 

 

Weighted Average
Remaining Vesting
Period (In years)

 

Aggregate
Intrinsic
Value (3)
(In thousands)

 

Unvested at December 31, 2024

 

227

 

 

$

165.13

 

 

 

 

 

 

Granted

 

157

 

 

$

133.11

 

 

 

 

 

 

Performance adjustments(1)

 

(8

)

 

$

143.51

 

 

 

 

 

 

Vested

 

(53

)

 

$

141.33

 

 

 

 

 

 

Forfeited

 

(20

)

 

$

167.65

 

 

 

 

 

 

Unvested at December 31, 2025

 

303

 

 

$

153.13

 

 

1.54 years

 

$

36,092

 

Expected to vest as of December 31, 2025

 

217

 

 

$

148.98

 

 

1.54 years

 

$

25,844

 
(1)
The amount shown represents performance adjustments related to the performance-based awards vested during the year ended December 31, 2025.
(2)
The unvested PSUs are shown in this table at target payout. The number of shares vested reflects the number of shares earned and issued during the year. As of December 31, 2025, the maximum number of PSUs available to be earned was approximately 593 thousand.
(3)
The aggregate intrinsic value is calculated based on the fair value of $118.99 per common share as of December 31, 2025 due to the fact that the performance stock units carry a $0 purchase price.

The total fair value of PSUs that vested during the year ended December 31, 2025, based on the market price of the underlying shares on the date of vesting, was $7.6 million.

The grant-date fair value of the hybrid PSUs granted during the year ended December 31, 2025 was estimated using the Monte-Carlo valuation model with the following assumptions:

 

Year Ended

 

 

December 31, 2025

 

Grant-date stock price

$

142.80

 

Expected volatility

 

36.94

%

Risk-free interest rate

 

4.18

%

Expected annual dividend yield

 

—

 

Weighted average fair value

$

160.93

 

 

Stock Options

The following table shows stock options that were outstanding and exercisable as of December 31, 2025 and the related weighted average exercise price, weighted average remaining contractual term and aggregate intrinsic value:

 

Stock Options
(In thousands)

 

 

Weighted
Average Exercise Price

 

Weighted
Average Remaining Contractual Term (years)

 

Aggregate Intrinsic Value (1) (In thousands)

 

Outstanding as of December 31, 2024

 

149

 

 

$

139.17

 

 

 

 

 

Granted

 

—

 

 

$

—

 

 

 

 

 

Exercised

 

(4

)

 

$

135.86

 

 

 

 

 

Forfeited or expired

 

(11

)

 

$

157.04

 

 

 

 

 

Outstanding as of December 31, 2025

 

134

 

 

$

137.77

 

3.85 years

 

$

1,343

 

Exercisable as of December 31, 2025

 

90

 

 

$

128.40

 

3.37 years

 

$

1,343

 

Expected to vest as of December 31, 2025

 

44

 

 

$

157.25

 

4.84 years

 

$

—

 
(1)
The aggregate intrinsic value is calculated as the difference between the closing market price of $118.99 per common share as of December 31, 2025 and the exercise price of the stock options. It excludes the effect of stock options that have a zero or negative intrinsic value.
v3.25.4
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Employee Benefit Plans

15. Employee Benefit Plans

Defined Contribution Plans

The Company has defined contribution employee retirement savings plans in the U.S., the U.K. and Japan. The Company matches the contributions of participating employees on the basis of percentages specified in each plan. The Company’s matching contributions to the plans were $7.0 million, $6.8 million and $6.8 million for the years ended December 31, 2025, December 31, 2024 and December 31, 2023, respectively.

Defined Benefit Plan

The Company maintains a frozen defined benefit pension plan in the U.K. (the “U.K. Plan”). The U.K. Plan was closed to new membership in 1997 and stopped accruing additional pension benefits for existing members in 2003. Benefits under the U.K. Plan were based on the participants’ years of service and compensation as of the date the plan was frozen in 2003, adjusted for inflation. The Company continues to fund the plan in accordance with the pension regulations in the U.K.

The net periodic pension cost is included in other income (expense) in the consolidated statements of operations and consisted of the following components (in thousands):

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Components of the net periodic pension cost:

 

 

 

 

 

 

 

 

Interest cost

$

1,255

 

 

$

1,158

 

 

$

1,185

 

Expected return on plan assets

 

(1,500

)

 

 

(1,466

)

 

 

(1,440

)

Amortization of actuarial losses

 

778

 

 

 

851

 

 

 

990

 

Amortization of prior service cost

 

30

 

 

 

30

 

 

 

30

 

Net periodic pension cost

$

563

 

 

$

573

 

 

$

765

 

The actuarial assumptions used to compute the net periodic pension cost for the years ended December 31, 2025, December 31, 2024 and December 31, 2023, respectively, were as follows:

 

Year Ended December 31,

 

2025

 

2024

 

2023

Weighted-average discount rate

5.5%

 

4.5%

 

4.8%

Weighted-average long-term rate of return on plan assets

5.5%

 

5.1%

 

5.3%

 

The actuarial assumptions used to compute the benefit obligations as of December 31, 2025 and December 31, 2024, respectively, were as follows:

 

December 31,

 

2025

 

2024

Weighted-average discount rate

5.6%

 

5.5%

Rate of inflation

2.7%

 

3.1%

The discount rates used are derived from (AA) corporate bonds that have maturities approximating the terms of the pension obligations under the U.K. Plan. In estimating the expected return on plan assets, the Company considered the historical performance of the major asset classes held by the U.K. Plan and current forecasts of future rates of return for these asset classes.

The following table provides a reconciliation of benefit obligations and plan assets of the U.K. Plan (in thousands):

 

December 31,

 

 

2025

 

 

2024

 

Change in benefit obligation:

 

 

 

 

 

Projected benefit obligation at beginning of year

$

22,400

 

 

$

26,259

 

Interest cost

 

1,255

 

 

 

1,158

 

Actuarial (gains) losses (1)

 

(104

)

 

 

(3,393

)

Benefits paid

 

(1,396

)

 

 

(1,374

)

Prior service cost

 

—

 

 

 

—

 

Foreign currency exchange rate changes

 

1,570

 

 

 

(250

)

Projected benefit obligation at end of year

$

23,725

 

 

$

22,400

 

Accumulated benefit obligation at end of year

$

23,725

 

 

$

22,400

 

Change in plan assets:

 

 

 

 

 

Fair value of plan assets at beginning of year

$

26,645

 

 

$

29,351

 

Actual return on plan assets

 

845

 

 

 

(1,311

)

Employer contributions

 

—

 

 

 

287

 

Benefits paid

 

(1,396

)

 

 

(1,374

)

Foreign currency exchange rate changes

 

1,862

 

 

 

(308

)

Fair value of plan assets at end of year

$

27,956

 

 

$

26,645

 

Funded status at end of year

$

4,231

 

 

$

4,245

 

Amounts included in accumulated other comprehensive loss not yet recognized in net periodic pension cost:

 

 

 

 

 

Net actuarial losses at beginning of year

$

(6,197

)

 

$

(7,772

)

Net actuarial gains (losses) during the year

 

(551

)

 

 

627

 

Prior service cost arising during the year

 

—

 

 

 

—

 

Amounts reclassified from accumulated other comprehensive loss to income before income taxes

 

808

 

 

 

881

 

Foreign currency exchange rate changes

 

(430

)

 

 

67

 

Net actuarial losses

$

(6,370

)

 

$

(6,197

)
(1)
Actuarial (gains)/losses in the U.K. Plan for the years ended December 31, 2025 and December 31, 2024, respectively, primarily resulted from changes in the discount rate assumptions.

The funded status of the U.K. Plan was included in other long term assets on the accompanying consolidated balance sheet as of December 31, 2025 and December 31, 2024, respectively.

The following table reflects the total expected benefit payments to plan participants for each of the next five years and the following five years in aggregate and have been estimated based on the same assumptions used to measure the Company’s benefit obligations as of December 31, 2025 (in thousands):

 

Amount

 

2026

$

1,680

 

2027

 

1,772

 

2028

 

1,741

 

2029

 

1,739

 

2030

 

2,232

 

2031-2035

 

10,214

 

Total

$

19,378

 

In the U.K., defined benefit pension plan funding valuations are conducted every three years to determine the future level of contributions. Based on the results of the most recent valuation in 2024, the Company will not be required to contribute any additional funds for the next two years. Future annual funding contributions, if any, will be determined in the next statutory funding valuation in 2027.

Fair Value of Plan Assets

The trustee of the U.K. Plan has the fiduciary responsibilities to manage the plan assets in consultation with the Company. The overall objective is to invest plan assets in a portfolio of diversified assets, primarily through the use of institutional collective funds. During the year ended December 31, 2023, the investment strategy was gradually shifted from a balanced growth strategy that combines investments in growth assets (such as equities and credit) with investments in debt instruments that match a portion of the expected future benefit payments to a strategy that is progressively more focused on matching the benefit payments based on a series of de-risking triggers that are based on the funding level. As these triggers are hit, the assets are shifted from growth assets into fixed income investments leading to an increasingly low risk approach.

The following table summarizes the fair values of Plan assets by asset category as of December 31, 2025 (in thousands):

Asset Category

 

Fair Value

 

 

Quoted Prices in Active Markets
for Identical
Assets
 (Level 1)

 

 

Significant Other Observable
Inputs
 (Level 2)

 

 

Significant Other Unobservable
Inputs
 (Level 3)

 

 

Not
Subject to
Leveling

 

Mutual Funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income (1)

 

$

27,569

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

27,569

 

Cash

 

 

387

 

 

 

387

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

27,956

 

 

$

387

 

 

$

—

 

 

$

—

 

 

$

27,569

 

 

(1)
This class comprises a diversified portfolio of global investments which seeks fixed income growth and is allocated on a weighted average basis as follows: cash and cash equivalents (70%), bonds (26%) and other assets (4%).

The following table summarizes the fair values of Plan assets by asset category as of December 31, 2024 (in thousands):

Asset Category

 

Fair Value

 

 

Quoted Prices in Active Markets
for Identical
Assets
 (Level 1)

 

 

Significant Other Observable
Inputs
 (Level 2)

 

 

Significant Other Unobservable
Inputs
 (Level 3)

 

 

Not
Subject to
Leveling

 

Mutual Funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balanced (1)

 

$

5,118

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

5,118

 

Fixed income (2)

 

 

21,136

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

21,136

 

Cash

 

 

391

 

 

 

391

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

26,645

 

 

$

391

 

 

$

—

 

 

$

—

 

 

$

26,254

 
(1)
This class comprises a diversified portfolio of global investments which seeks growth from equities and credit assets. It is allocated on a weighted average basis as follows: equities (5%), bonds (90%) and other assets (5%).
(2)
This class comprises a diversified portfolio of global investments which seeks fixed income growth and is allocated on a weighted average basis as follows: bonds (79%) and other assets (21%).
v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

16. Income Taxes

Components of the Company’s income (loss) before income taxes for the periods indicated are as follows (in thousands):

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Income (loss) before income taxes:

 

 

 

 

 

 

 

 

Canada

$

(1,250

)

 

$

(7,425

)

 

$

(6,490

)

U.S.

 

(22,890

)

 

 

11,829

 

 

 

38,992

 

Other

 

93,782

 

 

 

74,662

 

 

 

51,246

 

Total

$

69,642

 

 

$

79,066

 

 

$

83,748

 

Components of the Company’s income tax provision (benefit) for the periods indicated are as follows (in thousands):

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Current

 

 

 

 

 

 

 

 

Canada

$

11

 

 

$

43

 

 

$

59

 

U.S.

 

1,733

 

 

 

11,198

 

 

 

14,424

 

Other

 

22,922

 

 

 

19,647

 

 

 

11,113

 

 

 

24,666

 

 

 

30,888

 

 

 

25,596

 

Deferred

 

 

 

 

 

 

 

 

Canada

 

—

 

 

 

—

 

 

 

—

 

U.S.

 

(5,124

)

 

 

(12,612

)

 

 

(12,224

)

Other

 

(3,729

)

 

 

(3,297

)

 

 

(2,502

)

 

 

(8,853

)

 

 

(15,909

)

 

 

(14,726

)

Total

$

15,813

 

 

$

14,979

 

 

$

10,870

 

 

The Company is incorporated in Canada and therefore uses the Canadian statutory rate for income tax disclosure. Below is a tabular reconciliation of the Canadian federal-only statutory income tax rate to the Company's effective tax rate for the year ended December 31, 2025 in accordance with the amendments in ASU 2023-09:

 

Year Ended

 

 

December 31, 2025

 

 

Amount

 

Percentage

 

Canada statutory tax rate

$

10,446

 

 

15.0

%

Provincial and local income taxes

 

—

 

 

0.0

%

Foreign tax effects

 

 

 

 

United States

 

 

 

 

R&D tax credits

 

(2,410

)

 

(3.5

)%

Effect of rates different than statutory

 

(1,471

)

 

(2.1

)%

Foreign-derived intangible income

 

(740

)

 

(1.0

)%

Base Erosion and Anti-Abuse Tax

 

1,549

 

 

2.2

%

Disallowed compensation

 

1,896

 

 

2.7

%

Return to provision adjustments

 

677

 

 

1.0

%

Other

 

640

 

 

0.9

%

United Kingdom

 

 

 

 

UK patent box

 

(6,652

)

 

(9.6

)%

Effect of rates different than statutory

 

4,155

 

 

6.0

%

Pillar 2

 

1,031

 

 

1.5

%

Other

 

22

 

 

0.0

%

Germany

 

 

 

 

Trade tax

 

4,162

 

 

6.0

%

Other

 

(105

)

 

(0.1

)%

China

 

 

 

 

Effect of rates different than statutory

 

1,695

 

 

2.4

%

Withholding taxes

 

1,144

 

 

1.6

%

Other

 

63

 

 

0.1

%

Other foreign jurisdictions

 

224

 

 

0.3

%

Effect of cross-border tax laws

 

—

 

 

0.0

%

Tax credits

 

—

 

 

0.0

%

Changes in valuation allowances

 

(145

)

 

(0.2

)%

Nontaxable or nondeductible items

 

 

 

 

Other

 

356

 

 

0.5

%

Changes in unrecognized tax benefits

 

(704

)

 

(1.0

)%

Other adjustments

 

 

 

 

Withholding and Other taxes

 

(20

)

 

(0.0

)%

Effective tax rate

$

15,813

 

 

22.7

%

 

Below is a reconciliation of the statutory Canadian federal plus provincial tax rate to the effective tax rate related to income before income taxes for the periods indicated is as follows (in thousands, except percentage data), as presented in prior period financial statements:

 

Year Ended December 31,

 

 

2024

 

 

2023

 

Statutory Canadian tax rate

 

29.00

%

 

 

29.00

%

Expected income tax provision at Canadian statutory tax rate

$

22,929

 

 

$

24,287

 

U.S. state income taxes, net

 

(168

)

 

 

860

 

U.K. patent box

 

(3,982

)

 

 

(4,247

)

Foreign-derived intangible income

 

(3,015

)

 

 

(4,500

)

International tax rate differences

 

(2,622

)

 

 

(4,804

)

Tax credits

 

(2,590

)

 

 

(3,602

)

Change in valuation allowance

 

1,930

 

 

 

2,068

 

Disallowed compensation

 

1,678

 

 

 

2,571

 

Withholding and other taxes

 

854

 

 

 

300

 

Windfall benefit from share-based compensation

 

(844

)

 

 

(1,685

)

Transaction costs and permanent differences

 

360

 

 

 

423

 

Uncertain tax positions

 

244

 

 

 

90

 

Provision to return differences

 

231

 

 

 

(1,056

)

Acquisition contingent consideration adjustments

 

(81

)

 

 

—

 

Statutory tax rate changes

 

55

 

 

 

165

 

Reported income tax provision

$

14,979

 

 

$

10,870

 

Effective tax rate

 

18.9

%

 

 

13.0

%

Deferred income taxes result principally from temporary differences in the recognition of certain revenue and expense items and operating loss and tax credit carryforwards for financial and tax reporting purposes. Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2025 and December 31, 2024 are as follows (in thousands):

 

December 31,

 

 

2025

 

 

2024

 

Deferred tax assets:

 

 

 

 

 

Capitalized R&D

$

40,043

 

 

$

34,777

 

Inventories

 

16,270

 

 

 

15,451

 

Losses

 

13,456

 

 

 

12,606

 

Compensation related deductions

 

7,827

 

 

 

9,323

 

Operating lease liabilities

 

8,703

 

 

 

9,120

 

Tax credits

 

4,821

 

 

 

3,260

 

Deferred tangible equity unit financing fee

 

3,715

 

 

 

—

 

Business interest expense

 

55

 

 

 

1,483

 

Other

 

1,922

 

 

 

974

 

Warranty

 

665

 

 

 

913

 

Total deferred tax assets

 

97,477

 

 

 

87,907

 

Valuation allowance on deferred tax assets

 

(23,212

)

 

 

(18,594

)

Net deferred tax assets

$

74,265

 

 

$

69,313

 

Deferred tax liabilities:

 

 

 

 

 

Amortization

$

(43,771

)

 

$

(39,061

)

Operating lease right-of-use assets

 

(7,831

)

 

 

(8,110

)

Depreciation

 

(5,879

)

 

 

(6,307

)

Deferred revenue

 

(7,495

)

 

 

(6,041

)

Total deferred tax liabilities

$

(64,976

)

 

$

(59,519

)

Net deferred tax assets (liabilities)

$

9,289

 

 

$

9,794

 

 

Income taxes paid, net of refunds received, were as follows:

 

Year Ended

 

 

December 31, 2025

 

Federal - Canada

$

—

 

Provincial - Canada

 

—

 

Foreign

 

36,725

 

 

 

 

Total

$

36,725

 

 

 

 

Income taxes paid (net of refunds) exceeded 5 percent of total income taxes paid (net of refunds) in the following jurisdictions:

 

 

 

 

 

Foreign:

 

 

Germany corporate income taxes

$

12,653

 

Germany trade taxes

 

9,893

 

China

 

5,257

 

United Kingdom

 

3,652

 

United States - federal taxes

 

814

 

United States - state taxes

 

484

 

In determining its income tax provisions, the Company calculated deferred tax assets and liabilities for each separate jurisdiction. The Company then considered a number of factors, including positive and negative evidence related to the realization of its deferred tax assets, to determine whether a valuation allowance should be recognized with respect to its deferred tax assets.

The Company began to capitalize research and development (“R&D”) expenditures in 2022 in accordance with the Tax Cuts and Jobs Act of 2017 (“TCJA”) which requires that R&D expenditures be capitalized and amortized for income tax purposes over five years for domestic research and fifteen years for foreign research, rather than being deducted as incurred. This has the effect of increasing the Company’s cash taxes and deferred tax assets. In 2025 the Company’s deferred tax assets related to capitalized R&D expenditure increased $5.3 million, which also creates an effective tax rate benefit of 1.0% by increasing the Company's Foreign Derived Intangible Income deduction.

In 2025, the Company recorded an additional $4.6 million of valuation allowance. In 2024, the Company recorded an additional $1.9 million of valuation allowance.

As of December 31, 2025, the Company had valuation allowances on Canada net operating and capital loss carryforwards, U.K. capital loss carryforwards, certain U.S. state net operating losses, and state and foreign tax credits where the Company has determined that it is not more likely than not the future benefit would be realized. In conjunction with the Company’s ongoing review of its actual results and anticipated future earnings, the Company continuously reassesses the possibility of releasing the valuation allowance currently in place on its deferred tax assets.

As of December 31, 2025, the Company had net operating loss carry forwards of $7.6 million (tax effected). Of this amount, approximately $7.1 million relates to Canada and begins to expire starting in 2033 and had a full valuation allowance. The remainder $0.5 million relates to various U.S. jurisdictions, which will begin to expire in 2026 through 2045. In addition, the Company had capital loss carryforwards of $5.9 million, which can be carried forward indefinitely and had a full valuation allowance. Of this amount, $4.9 million, and $1.0 million related to Canada, and the U.K., respectively.

As of December 31, 2024, the Company had net operating loss carry forwards of $6.8 million (tax effected). Of this amount, approximately $6.5 million relates to Canada and begins to expire starting in 2033 and had a full valuation allowance. The remainder $0.3 million relates to various U.S. jurisdictions, of which $0.1 million can be carried forward indefinitely and the remaining $0.2 million will begin to expire in 2025 through 2036, on which the Company records a valuation allowance of $0.1 million. In addition, the Company had capital loss carryforwards of $5.8 million, which can be carried forward indefinitely and had a full valuation allowance. Of this amount, $4.9 million, $0.8 million and $0.1 million relates to Canada, the U.K and other foreign jurisdictions, respectively.

As of December 31, 2025, the Company had tax credit carryforwards of approximately $5.8 million, before accounting for $1.0 million of uncertain tax positions recorded against the credit carryforward. Approximately $1.5 million relate to U.S. Federal credits which will expire in 2045, and $2.7 million relate to U.S. state credits and will expire through 2046, and on which the Company maintains a full valuation allowance. $0.5 million relates to the U.S. Federal foreign tax credits which will expire through 2034, and on which the Company maintains a full valuation allowance. Approximately $0.4 million relate to other foreign jurisdictions. The remaining $0.7 million tax credit carryforwards were related to Canada and can be carried forward indefinitely. The Canadian credit carryforwards also have a full valuation allowance recorded against them.

As of December 31, 2024, the Company had tax credit carryforwards of approximately $3.8 million, before accounting for $0.6 million of uncertain tax positions recorded against the credit carryforward. Approximately $2.6 million relates to U.S. state credits and will expire through 2039, and on which the Company maintains a full valuation allowance, $0.5 million relates to the U.S. federal foreign tax credits which will expire through 2034. The remaining $0.7 million relates to Canada and can be carried forward indefinitely. The U.S. federal and Canadian tax credit carryforwards also have a full valuation allowance recorded against them.

As of December 31, 2025, the Company had disallowed business interest expense carryforwards of $0.1 million under Section 163(j) of the Internal Revenue Code. These carryforwards have no expiration date and can be utilized indefinitely to offset future taxable income, subject to the limitations of Section 163(j).

As of December 31, 2024, the Company had disallowed business interest expense carryforwards of $1.5 million under Section 163(j) of the Internal Revenue Code. These carryforwards have no expiration date and can be utilized indefinitely to offset future taxable income, subject to the limitations of Section 163(j).

Income and foreign withholding taxes have not been recognized on the excess of the amount for financial reporting purposes over the tax basis of investments in foreign subsidiaries that are essentially permanent in nature. This amount becomes taxable upon the repatriation of assets from a subsidiary or a sale or liquidation of a subsidiary. The estimated unrecognized income tax and foreign withholding tax liability on these undistributed earnings is approximately $5.4 million.

As of December 31, 2025, the Company’s total amount of gross unrecognized tax benefits was $4.4 million of which $3.7 million would favorably affect the effective tax rate if benefited. The Company believes there are no jurisdictions in which the outcome of unresolved issues or claims is likely to be material to its results of operations, financial position or cash flows. Furthermore, the Company believes that it has adequately provided for all significant income tax uncertainties.

The reconciliation of the total amounts of unrecognized tax benefits is as follows (in thousands):

Balance at December 31, 2022

$

4,249

 

Additions based on tax positions related to the current year

 

561

 

Additions for tax positions of prior years

 

47

 

Reductions to tax positions of prior years

 

(22

)

Reductions to tax positions resulting from a lapse of the applicable statute of limitations

 

(492

)

Settlements with tax authorities

 

—

 

Balance at December 31, 2023

 

4,343

 

Additions based on tax positions related to the current year

 

949

 

Additions for tax positions of prior years

 

204

 

Reductions to tax positions of prior years

 

(42

)

Reductions to tax positions resulting from a lapse of the applicable statute of limitations

 

(615

)

Settlements with tax authorities

 

—

 

Balance at December 31, 2024

 

4,839

 

Additions based on tax positions related to the current year

 

697

 

Additions for tax positions of prior years

 

70

 

Reductions to tax positions of prior years

 

(101

)

Reductions to tax positions resulting from a lapse of the applicable statute of limitations

 

(1,131

)

Settlements with tax authorities

 

—

 

Balance at December 31, 2025

$

4,374

 

 

The Company recognizes interest and penalties related to uncertain tax positions in income tax provision. As of December 31, 2025 and 2024, the Company had approximately $0.7 million and $0.8 million, respectively, of accrued interest and penalties related to uncertain tax positions. During the years ended December 31, 2025, December 31, 2024 and December 31, 2023, the Company recognized $(0.1) million, $0.1 million and $0.1 million, respectively, of expense for an increase in interest and penalties related to uncertain tax positions.

The Company files income tax returns in Canada, the U.S., and various foreign jurisdictions. Generally, the Company is no longer subject to U.S. or foreign income tax examinations, including transfer pricing tax audits, by tax authorities for the years before 2015.

The Company’s income tax returns may be reviewed by tax authorities in the following countries for the following periods under the appropriate statute of limitations:

United States

2019 - Present

Canada

2021 - Present

United Kingdom

2024 - Present

Germany

2021 - Present

Czech Republic

2022 - Present

China

2015 - Present

Japan

2020 - Present
v3.25.4
Restructuring, Acquisition and Related Costs
 12 Months Ended
Dec. 31, 2025
Restructuring and Related Activities [Abstract]  
Restructuring, Acquisition and Related Costs

17. Restructuring, Acquisition and Related Costs

The following table summarizes restructuring, acquisition and related costs recorded in the accompanying consolidated statements of operations for the periods indicated (in thousands):

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

2025 restructuring

$

14,021

 

 

$

—

 

 

$

—

 

2024 restructuring

 

5,698

 

 

 

10,486

 

 

 

—

 

2022 restructuring

 

—

 

 

 

—

 

 

 

8,961

 

2020 restructuring

 

(3,595

)

 

 

—

 

 

 

2,853

 

Total restructuring related charges

 

16,124

 

 

 

10,486

 

 

 

11,814

 

Acquisition and related charges

 

6,528

 

 

 

3,223

 

 

 

1,000

 

Total restructuring, acquisition and related costs

$

22,652

 

 

$

13,709

 

 

$

12,814

 

2025 Restructuring

The Company initiated the 2025 restructuring program in the second quarter of 2025 in order to streamline operations and align with our long-term goals. The 2025 restructuring program includes measures to regionalize manufacturing operations to better serve its customers, expedite the closure of certain sites, streamline management structures, and implement cost-saving strategies in areas anticipated to have a minimal long-term impact on the Company's overall business performance. During year ended December 31, 2025, the Company recorded $14.0 million in severance, facility related and other charges in connection with the 2025 restructuring program. As of December 31, 2025, the Company had incurred cumulative costs of $14.0 million related to this restructuring program. The Company anticipates substantially completing the 2025 restructuring program by the end of 2026. Total restructuring charges related to this program are expected to be approximately $25.0 million.

The following table summarizes restructuring costs associated with the 2025 restructuring program by reportable segment (in thousands):

 

Year Ended December 31,

 

 

Cumulative Costs as of

 

 

2025

 

 

December 31, 2025

 

Automation Enabling Technologies

$

3,269

 

 

$

3,269

 

Medical Solutions

 

7,325

 

 

 

7,325

 

Unallocated costs

 

3,427

 

 

 

3,427

 

Total

$

14,021

 

 

$

14,021

 

2024 Restructuring

As a result of the Company’s acquisitions and ongoing integration activities, the Company initiated the 2024 restructuring program in the first quarter of 2024 in order to reduce operating complexity. During the year ended December 31, 2025, the Company recorded $5.7 million in severance, facility related and other charges in connection with the 2024 restructuring program. As of December 31, 2025, the Company had incurred cumulative costs of $16.2 million related to this restructuring program. The Company anticipates substantially completing the 2024 restructuring program by the end of 2026 and expects to incur additional restructuring charges of $2.0 million to $3.0 million related to the 2024 restructuring program.

The following table summarizes restructuring costs associated with the 2024 restructuring program by reportable segment (in thousands):

 

Year Ended December 31,

 

 

Cumulative Costs as of

 

 

2025

 

2024

 

 

December 31, 2025

 

Automation Enabling Technologies

$

1,390

 

$

3,198

 

 

$

4,588

 

Medical Solutions

 

4,276

 

 

6,769

 

 

 

11,045

 

Unallocated costs

 

32

 

 

519

 

 

 

551

 

Total

$

5,698

 

$

10,486

 

 

$

16,184

 

2022 Restructuring

As a result of the Company’s ongoing evaluations and efforts to reduce its operating costs, while improving efficiency and effectiveness, the Company initiated the 2022 restructuring program in the third quarter of 2022. This program was focused on reducing operating complexity in the Company, including reducing infrastructure costs and streamlining the Company’s operating model to better serve its customers. In addition, the program was focused on cost reduction actions to improve gross margins for the overall company. As of December 31, 2025, the Company had incurred cumulative costs of $10.4 million related to the 2022 restructuring program. The 2022 restructuring program was completed in the fourth quarter of 2023.

The following table summarizes restructuring costs associated with the 2022 restructuring program by reportable segment (in thousands):

 

Year Ended December 31,

 

 

Cumulative Costs as of

 

 

2023

 

 

December 31, 2025

 

Automation Enabling Technologies

$

6,771

 

 

$

8,129

 

Medical Solutions

 

1,359

 

 

 

1,415

 

Unallocated costs

 

831

 

 

 

831

 

Total

$

8,961

 

 

$

10,375

 

 

2020 Restructuring

As a result of the Company’s ongoing evaluations and efforts to reduce its operating costs, while improving efficiency and effectiveness, the Company initiated the 2020 restructuring program in the third quarter of 2020. This program was focused on reducing operating complexity in the Company, including reducing infrastructure costs and streamlining the Company’s operating model to better serve its customers. In addition, the program was focused on cost reduction actions to improve gross margins for the overall company. As of December 31, 2025, the Company had incurred cumulative costs of $13.1 million related to the 2020 restructuring program. The 2020 restructuring program was completed in the fourth quarter of 2023. In January 2025, the Company sold a facility from the 2020 restructuring program and recorded a $3.6 million gain in the Company’s Automation Enabling Technologies segment.

The following table summarizes restructuring costs associated with the 2020 restructuring program by reportable segment (in thousands):

 

Year Ended December 31,

 

 

Cumulative Costs as of

 

 

2025

 

 

2024

 

 

2023

 

 

December 31, 2025

 

Automation Enabling Technologies

$

(3,595

)

 

$

—

 

 

$

2,853

 

 

$

10,232

 

Medical Solutions

 

—

 

 

 

—

 

 

 

—

 

 

 

2,716

 

Unallocated costs

 

—

 

 

 

—

 

 

 

—

 

 

 

173

 

Total

$

(3,595

)

 

$

—

 

 

$

2,853

 

 

$

13,121

 

Roll-forward of Accrued Expenses Related to Restructuring Programs

The following table summarizes the accrual activities, by component, related to the Company’s restructuring programs recorded in the accompanying consolidated balance sheets (in thousands):

 

Total

 

 

Employee Related

 

 

Facility Related

 

 

Facility Sale

 

 

Other

 

Balance at December 31, 2023

$

2,850

 

 

$

1,038

 

 

$

1,680

 

 

$

—

 

 

$

132

 

Restructuring charges

 

10,486

 

 

 

8,165

 

 

 

2,034

 

 

 

—

 

 

 

287

 

Cash payments

 

(5,898

)

 

 

(3,469

)

 

 

(2,007

)

 

 

—

 

 

 

(422

)

Non-cash write-offs and other adjustments

 

(687

)

 

 

(44

)

 

 

(646

)

 

 

—

 

 

 

3

 

Balance at December 31, 2024

 

6,751

 

 

 

5,690

 

 

 

1,061

 

 

 

—

 

 

 

—

 

Restructuring charges

 

16,124

 

 

 

15,562

 

 

 

2,891

 

 

 

(4,077

)

 

 

1,748

 

Cash payments

 

(8,595

)

 

 

(12,012

)

 

 

(633

)

 

 

5,537

 

 

 

(1,487

)

Non-cash write-offs and other adjustments(1)

 

(3,698

)

 

 

649

 

 

 

(2,626

)

 

 

(1,460

)

 

 

(261

)

Balance at December 31, 2025

$

10,582

 

 

$

9,889

 

 

$

693

 

 

$

—

 

 

$

—

 
(1)
Non-cash charges primarily related to accelerated depreciation on a facility.

Acquisition and Related Charges

Acquisition costs incurred in connection with business combinations, primarily including finders’ fees, legal, valuation and other professional or consulting fees, totaled $5.7 million, $3.5 million, and $1.0 million during 2025, 2024, and 2023, respectively. Acquisition related costs/(income) recognized under earn-out agreements in connection with acquisitions totaled $0.8 million, $(0.3) million, and zero during 2025, 2024, and 2023, respectively. A majority of the acquisition and related costs of $6.5 million for 2025 were not allocated to any of the reportable segments.

v3.25.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

18. Commitments and Contingencies

Purchase Commitments

As of December 31, 2025, the Company had purchase commitments primarily for inventory purchases of $160.3 million. These purchase commitments are expected to be incurred as follows: $155.8 million in 2026, $3.9 million in 2027 and $0.6 million in 2028.

Legal Proceedings

The Company is subject to various other legal proceedings and claims that arise in the ordinary course of business. The Company reviews the status of each significant matter and assesses the potential financial exposure on a quarterly basis. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss. Significant judgment is required in both the determination of the probability of an exposure and the determination as to whether the exposure is reasonably estimable. Because of uncertainties related to these matters, accruals are based only on the best information available as of the date of the consolidated balance sheet. As additional information becomes available, the Company reassesses the potential liability related to any pending claims and litigation and may revise its estimates. The Company does not believe that the outcome of these claims will have a material adverse effect on its consolidated financial statements but there can be no assurance that any such claims, or any similar claims, would not have a material adverse effect on its consolidated financial statements.

Guarantees and Indemnifications

In the normal course of its operations, the Company executes agreements that provide for indemnification and guarantees to counterparties in transactions such as business dispositions, sale of assets, sale of products and operating leases. Additionally, the by-laws of the Company require it to indemnify certain current or former directors, officers, and employees of the Company against expenses incurred by them in connection with each proceeding in which they are involved as a result of serving or having served in certain capacities. Indemnification is not available with respect to a proceeding as to which it has been adjudicated that the person did not act in good faith in the reasonable belief that the action was in the best interests of the Company. Certain of the Company’s officers and directors are also a party to indemnification agreements with the Company. These indemnification agreements provide, among other things, that the director and officer shall be indemnified to the fullest extent permitted by applicable law against all expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred by such officer or director in connection with any proceeding by reason of their relationship with the Company. In addition, the indemnification agreements provide for the advancement of expenses incurred by such director or officer in connection with any proceeding covered by the indemnification agreement, subject to the conditions set forth therein and to the extent such advancement is not prohibited by law. The indemnification agreements also set out the procedures for determining entitlement to indemnification, the requirements relating to notice and defense of claims for which indemnification is sought, the procedures for enforcement of indemnification rights, the limitations on and exclusions from indemnification, and the minimum levels of directors’ and officers’ liability insurance to be maintained by the Company.

On July 1, 2013, the Company provided a Guarantee (the “Guarantee”) in favor of the trustees of the U.K. Plan with respect to all present and future obligations and liabilities, whether actual or contingent and whether owed jointly or severally and in any capacity whatsoever, of Novanta Technologies U.K. Limited, a wholly owned subsidiary of Novanta Inc.

Credit Risks and Other Uncertainties

The Company maintains financial instruments such as cash and cash equivalents and trade receivables. From time to time, certain of these instruments may subject the Company to concentrations of credit risk whereby one institution may hold a significant portion of the cash and cash equivalents, or one customer may represent a large portion of the accounts receivable balances.

As of December 31, 2025, and December 31, 2024, one customer represented approximately 17% and 13%, respectively, of the Company's outstanding accounts receivable balance. Credit risk with respect to trade accounts receivable is generally minimized because of the diversification of the Company’s operations, as well as its large customer base and its geographic dispersion.

Certain components and materials included in the Company’s products are currently purchased from single source suppliers. There can be no assurance that a disruption of the supply of such components and materials would not create substantial manufacturing delays and additional cost to the Company.

The Company’s operations involve a number of other risks and uncertainties including, but not limited to, the effects of general economic conditions, rapidly changing technologies, and international operations.

v3.25.4
Segment Information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Information

19. Segment Information

Reportable Segments

The Company’s Chief Operating Decision Maker (“CODM”) is the Chief Executive Officer. The CODM utilizes financial information to make decisions about allocating resources and assessing performance for the entire Company. The CODM evaluates the performance of, and allocates resources to, its segments based on revenue, gross profit and operating income. The Company’s reportable segments have been identified based on commonality and adjacency of end markets and customers amongst the Company’s individual product lines. Based upon the information provided to the CODM, we have determined that we have two reportable segments.

Automation Enabling Technologies

The Automation Enabling Technologies segment designs, manufactures and markets laser beam steering and scanning solutions, laser sources, robotic and precision motion, robotic end-of-arm tooling, and bearing spindles to customers worldwide. The segment serves highly demanding applications for advanced industrial processes, advanced industrial and medical robotics, other medical and life science automation applications, and medical laser procedures such as ophthalmology applications. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells the majority of these products directly, utilizing a highly technical sales force, and also sells some indirectly, through resellers and distributors.

Medical Solutions

The Medical Solutions segment designs, manufactures and markets a range of medical grade technologies, including medical insufflators and endoscopic pumps and related disposables, imaging, identification and RFID solutions, advanced motion control solutions, light engines, and integrated operating room technologies. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells the majority of these products directly, utilizing a highly technical sales force, and also sells some indirectly, through resellers and distributors.

Reportable Segment Financial Information

Results of operations, depreciation and amortization expenses, accounts receivable and inventories by reportable segments for the periods indicated were as follows (in thousands):

 

Year Ended December 31, 2025

 

 

Automation Enabling Technologies

 

 

Medical Solutions

 

 

Total

 

Revenue

$

500,835

 

 

$

479,765

 

 

$

980,600

 

Cost of revenue

 

255,761

 

 

 

269,356

 

 

 

 

Amortization of purchased intangible assets

 

5,568

 

 

 

10,708

 

 

 

 

Gross profit

 

239,506

 

 

 

199,701

 

 

 

439,207

 

Research and development and engineering

 

37,805

 

 

 

58,342

 

 

 

 

Selling, general and administrative

 

76,316

 

 

 

60,034

 

 

 

 

Amortization of purchased intangible assets

 

9,772

 

 

 

17,705

 

 

 

 

Restructuring, acquisition, and related costs

 

1,082

 

 

 

12,448

 

 

 

 

Segment operating income

 

114,531

 

 

 

51,172

 

 

 

165,703

 

Unallocated costs

 

—

 

 

 

—

 

 

 

(71,691

)

Interest income (expense), net

 

—

 

 

 

—

 

 

 

(21,472

)

Other income (expense), net

 

—

 

 

 

—

 

 

 

(2,898

)

Income before income taxes

$

114,531

 

 

$

51,172

 

 

$

69,642

 

 

 

Year Ended December 31, 2024

 

 

Automation Enabling Technologies

 

 

Medical Solutions

 

 

Total

 

Revenue

$

490,620

 

 

$

458,625

 

 

$

949,245

 

Cost of revenue

 

249,364

 

 

 

260,176

 

 

 

 

Amortization of purchased intangible assets

 

6,281

 

 

 

8,492

 

 

 

 

Gross profit

 

234,975

 

 

 

189,957

 

 

 

424,932

 

Research and development and engineering

 

39,026

 

 

 

57,110

 

 

 

 

Selling, general and administrative

 

75,423

 

 

 

53,798

 

 

 

 

Amortization of purchased intangible assets

 

11,207

 

 

 

14,587

 

 

 

 

Restructuring, acquisition, and related costs

 

2,916

 

 

 

6,930

 

 

 

 

Segment operating income

 

106,403

 

 

 

57,532

 

 

 

163,935

 

Unallocated costs

 

—

 

 

 

—

 

 

 

(53,351

)

Interest income (expense), net

 

—

 

 

 

—

 

 

 

(31,489

)

Other income (expense), net

 

—

 

 

 

—

 

 

 

(29

)

Income before income taxes

$

106,403

 

 

$

57,532

 

 

$

79,066

 

 

 

Year Ended December 31, 2023

 

 

Automation Enabling Technologies

 

 

Medical Solutions

 

 

Total

 

Revenue

$

499,220

 

 

$

382,442

 

 

$

881,662

 

Cost of revenue

 

257,377

 

 

 

206,550

 

 

 

 

Amortization of purchased intangible assets

 

7,045

 

 

 

5,105

 

 

 

 

Gross profit

 

234,798

 

 

 

170,787

 

 

 

405,585

 

Research and development and engineering

 

43,024

 

 

 

49,440

 

 

 

 

Selling, general and administrative

 

72,860

 

 

 

49,227

 

 

 

 

Amortization of purchased intangible assets

 

12,942

 

 

 

7,503

 

 

 

 

Restructuring, acquisition, and related costs

 

9,691

 

 

 

1,359

 

 

 

 

Segment operating income

 

96,281

 

 

 

63,258

 

 

 

159,539

 

Unallocated costs

 

—

 

 

 

—

 

 

 

(49,043

)

Interest income (expense), net

 

—

 

 

 

—

 

 

 

(25,818

)

Other income (expense), net

 

—

 

 

 

—

 

 

 

(930

)

Income before income taxes

$

96,281

 

 

$

63,258

 

 

$

83,748

 

 

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Depreciation and Amortization Expenses

 

 

 

 

 

 

 

 

Automation Enabling Technologies

$

22,441

 

 

$

23,873

 

 

$

26,680

 

Medical Solutions

 

37,960

 

 

 

29,818

 

 

 

18,578

 

Unallocated

 

1,531

 

 

 

1,872

 

 

 

1,354

 

Total

$

61,932

 

 

$

55,563

 

 

$

46,612

 

 

 

 

December 31,

 

 

2025

 

 

2024

 

Accounts Receivable

 

 

 

 

 

Automation Enabling Technologies

$

76,685

 

 

$

70,829

 

Medical Solutions

 

108,195

 

 

 

80,197

 

Total accounts receivable

$

184,880

 

 

$

151,026

 

Inventories

 

 

 

 

 

Automation Enabling Technologies

$

110,205

 

 

$

89,009

 

Medical Solutions

 

78,079

 

 

 

55,597

 

Total inventories

$

188,284

 

 

$

144,606

 

Total segment assets

$

373,164

 

 

$

295,632

 

 

 

December 31,

 

 

2025

 

 

2024

 

Total Assets

 

 

 

 

 

Total segment assets

$

373,164

 

 

$

295,632

 

Cash and cash equivalents

 

380,871

 

 

 

113,989

 

Prepaid income taxes and income taxes receivable

 

9,382

 

 

 

8,076

 

Prepaid expenses and other current assets

 

19,184

 

 

 

15,951

 

Property, plant and equipment, net

 

118,491

 

 

 

113,135

 

Operating lease assets

 

41,697

 

 

 

42,908

 

Deferred tax assets

 

27,381

 

 

 

22,887

 

Other assets

 

8,812

 

 

 

5,991

 

Intangible assets, net

 

180,776

 

 

 

185,844

 

Goodwill

 

647,348

 

 

 

584,098

 

Total

$

1,807,106

 

 

$

1,388,511

 

Geographic Information

The Company aggregates geographic revenue based on the customer location where products are shipped. Revenue from these customers is summarized for the periods indicated as follows (in thousands, except percentage data):

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

 

Revenue

 

 

% of Total

 

 

Revenue

 

 

% of Total

 

 

Revenue

 

 

% of Total

 

United States

$

519,007

 

 

 

52.9

%

 

$

487,114

 

 

 

51.3

%

 

$

418,265

 

 

 

47.4

%

Germany

 

114,647

 

 

 

11.7

 

 

 

123,244

 

 

 

13.0

 

 

 

128,229

 

 

 

14.5

 

Rest of Europe

 

137,406

 

 

 

14.0

 

 

 

128,871

 

 

 

13.6

 

 

 

137,027

 

 

 

15.6

 

China

 

93,201

 

 

 

9.5

 

 

 

84,562

 

 

 

8.9

 

 

 

73,444

 

 

 

8.3

 

Rest of Asia-Pacific

 

97,034

 

 

 

9.9

 

 

 

107,054

 

 

 

11.3

 

 

 

105,350

 

 

 

12.0

 

Other

 

19,305

 

 

 

2.0

 

 

 

18,400

 

 

 

1.9

 

 

 

19,347

 

 

 

2.2

 

Total

$

980,600

 

 

 

100.0

%

 

$

949,245

 

 

 

100.0

%

 

$

881,662

 

 

 

100.0

%

 

Long-lived assets consist of property, plant and equipment, net, and are aggregated based on the location of the assets. A summary of these long-lived assets is as follows (in thousands):

 

December 31,

 

 

2025

 

 

2024

 

United States

$

23,930

 

 

$

25,207

 

Germany

 

32,303

 

 

 

31,684

 

U.K.

 

34,420

 

 

 

34,078

 

Czech Republic

 

17,696

 

 

 

15,345

 

China

 

7,593

 

 

 

6,561

 

Rest of World

 

2,549

 

 

 

260

 

Total

$

118,491

 

 

$

113,135

 

Revenue by End Market

The Company primarily operates in two end markets: the medical market and the advanced industrial market. Revenue by end market was approximately as follows:

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Medical

 

53

%

 

 

55

%

 

 

54

%

Advanced Industrial

 

47

%

 

 

45

%

 

 

46

%

Total

 

100

%

 

 

100

%

 

 

100

%

The majority of the revenue from the Automation Enabling Technologies segment is generated from sales to customers in the advanced industrial market. The majority of the revenue from the Medical Solutions segment is generated from sales to customers in the medical market.

Significant Customers

During the year ended December 31, 2025 two OEM customers, each operating primarily in the medical end market, represented approximately 12% and 11%, respectively, of the Company's consolidated revenue. During the years ended December 31, 2024, and December 31, 2023, revenue from an OEM customer primarily in the medical market accounted for approximately 10% of the Company's consolidated revenue.
v3.25.4
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

The consolidated financial statements have been prepared by the Company in United States (“U.S.”) dollars and in accordance with accounting principles generally accepted in the U.S., applied on a consistent basis. These consolidated financial statements include the accounts of Novanta Inc. and its subsidiaries. Intercompany accounts and transactions have been eliminated.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Estimates and assumptions are reviewed on an on-going basis and the effects of revisions are reflected in the period in which such revisions are deemed to be necessary. The Company evaluates its estimates based on historical experience, current conditions, and various other assumptions that it believes are reasonable under the circumstances. Actual results could differ significantly from these estimates.
Foreign Currency Translation

Foreign Currency Translation

The financial statements of the Company and its subsidiaries outside the U.S. have been translated into U.S. dollars. Assets and liabilities of foreign operations are translated from foreign currencies into U.S. dollars at the exchange rates in effect as of the balance sheet date. Revenue and expenses are translated at the weighted average exchange rates for the period. Accordingly, gains and losses resulting from translating foreign currency financial statements are reported as cumulative translation adjustments, a separate component of other comprehensive income (loss) in stockholders’ equity. Foreign currency transaction gains and losses from transactions denominated in currencies other than the functional currencies are included in the accompanying consolidated statements of operations.

Cash Equivalents

Cash Equivalents

Cash equivalents are highly liquid investments with original maturities of three months or less. These investments are carried at cost, which approximates fair value.

Accounts Receivable and Credit Losses

Accounts Receivable and Credit Losses

Accounts receivable are recorded at the invoiced amounts, net of an allowance for doubtful accounts based on the Company’s best estimate of probable credit losses. The Company is exposed to credit losses primarily through sales of its products. The Company assesses each customer’s ability to pay by conducting a credit review which includes consideration of established credit rating or an internal assessment of the customer’s creditworthiness based on an analysis of their payment history when a credit rating is not available. The Company monitors its credit exposure through active review of customer balances. The Company’s expected loss methodology for accounts receivable is developed through consideration of factors including, but not limited to, historical collection experience, current customer credit ratings, current customer financial condition, current and future economic and market condition, and age of the receivables. Charges related to credit losses are included in selling, general and administrative expenses and are recorded in the period that the outstanding receivables are determined to be uncollectible. Account balances are charged off against the allowance for doubtful accounts when the Company believes it is certain that the receivable will not be recovered.

For the years ended December 31, 2025, 2024 and 2023, changes in the allowance for doubtful accounts were as follows (in thousands):

 

2025

 

 

2024

 

 

2023

 

Balance at beginning of year

$

505

 

 

$

571

 

 

$

995

 

Addition to credit loss expense

 

897

 

 

 

223

 

 

 

175

 

Write-offs, net of recoveries of amounts previously reserved

 

(72

)

 

 

(288

)

 

 

(612

)

Exchange rate changes

 

11

 

 

 

(1

)

 

 

13

 

Balance at end of year

$

1,341

 

 

$

505

 

 

$

571

 
Inventories

Inventories

Inventories, which include materials and conversion costs, are stated at the lower of cost or net realizable value, using the first-in, first-out method. Cost includes the cost of purchased materials, inbound freight charges, customs duties, trade tariffs on imported materials and components, external and internal processing and applicable labor and overhead costs. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, storage, disposal and transportation. The Company periodically reviews inventory for potential excess or obsolescence by comparing on-hand quantities to the forecasted product demand and production requirements or trailing historical usage of each product. The Company records a charge to cost of revenue for the amount required to reduce the carrying value of inventories to their net realizable value.
Property, Plant and Equipment

Property, Plant and Equipment

Property, plant and equipment are recorded at cost, adjusted for any impairment, less accumulated depreciation. The Company uses the straight-line method to calculate the depreciation of its property, plant and equipment over their estimated useful lives. Estimated useful lives range from 10 to 40 years for buildings and building improvements, and 3 to 10 years for machinery and equipment. Leasehold improvements are depreciated over the lesser of their useful lives or the lease terms, including any renewal period options that are reasonably assured of being exercised. Repairs and maintenance costs are expensed as incurred.

Capitalized Software Implementation Costs

Capitalized Software Implementation Costs

The Company capitalizes qualified implementation costs incurred in a hosting arrangement that is a service contract for which it is the customer in accordance with the requirements for capitalizing costs incurred to develop internal-use software. These capitalized implementation costs are recorded within other assets and are generally amortized over the fixed, non-cancellable term of the associated hosting arrangement on a straight-line basis.
Goodwill, Intangible Assets and Long-Lived Assets

Goodwill, Intangible Assets and Long-Lived Assets

Goodwill represents the excess of the purchase price over the tangible assets, identifiable intangible assets and assumed liabilities acquired in a business combination. Allocations of the purchase price are based upon a valuation of the fair value of assets acquired and liabilities assumed as of the acquisition date. Goodwill and indefinite-lived intangibles are not amortized but are assessed for impairment at least annually to ensure their current fair values exceed their carrying values.

The Company’s most significant identifiable intangible assets are customer relationships, patents and developed technologies, trademarks and trade names. The fair values of identifiable intangible assets are based on valuations using an income approach, with estimates and assumptions provided by management of the acquired companies and the Company. The process for estimating the fair values of identifiable intangible assets requires the use of significant estimates and assumptions, including revenue growth rates, customer attrition rates, royalty rates, discount rates and projected future cash flows. All definite-lived intangible assets are amortized over the periods in which their economic benefits are expected to be realized. The Company reviews the useful life assumptions, including the classification of certain identifiable intangible assets as “indefinite-lived,” on a periodic basis to determine if changes in circumstances warrant revisions to them. Costs associated with patent and intellectual property applications, renewals or extensions are typically expensed as incurred.

The Company evaluates its goodwill, intangible assets and other long-lived assets for impairment at the reporting unit level which is at least one level below the reportable segments.

Impairment Charges

Impairment Charges

Impairment analyses of goodwill and indefinite-lived intangible assets are conducted in accordance with ASC 350, “Intangibles — Goodwill and Other.” The Company performs its goodwill impairment test annually at a reporting unit level, which is generally at least one level below a reportable segment, as of the beginning of the second quarter or more frequently if indicators are present or changes in circumstances suggest that an impairment may exist.

The Company has the option of first performing a qualitative assessment to determine whether it is necessary to perform the quantitative impairment test. In performing the qualitative assessment, the Company reviews factors both specific to the reporting unit and to the Company as a whole, such as financial performance, macroeconomic conditions, industry and market considerations, and the fair value of each reporting unit as of the last valuation date. If the Company elects this option and believes, as a result of the qualitative assessment, that it is more likely than not that the carrying value of the reporting unit exceeds its fair value, the quantitative impairment test is required; otherwise, no further testing is required.

Alternatively, the Company may elect to bypass the qualitative assessment and perform the quantitative impairment test instead. This approach requires a comparison of the carrying value of each reporting unit to its estimated fair value. The fair value of a reporting unit is estimated primarily using a discounted cash flow (“DCF”) method. If the carrying value of a reporting unit exceeds its fair value, an impairment charge is recorded for the difference.

The Company assesses indefinite-lived intangible assets for impairment on an annual basis as of the beginning of the second quarter, and more frequently if indicators are present, or changes in circumstances suggest, that an impairment may exist. The Company will also reassess the continuing classification of these intangible assets as indefinite-lived when circumstances change such that the useful life may no longer be considered indefinite. The fair values of the Company’s indefinite-lived intangible assets are determined using the relief from royalty method, based on forecasted revenues and estimated royalty rates. If the fair value of an indefinite-lived intangible asset is less than its carrying value, an impairment charge is recorded for the difference between the carrying value and the fair value of the impaired asset.

The carrying amounts of definite-lived long-lived assets are reviewed for impairment whenever changes in events or circumstances indicate that their carrying values may not be recoverable. The recoverability of the carrying value is generally determined by comparison of the carrying value of the asset group to its undiscounted future cash flows. When this test indicates a potential for impairment, a fair value assessment is performed. Once an impairment is determined and measured, an impairment charge is recorded for the difference between the carrying value and the fair value of the impaired asset.
Revenue Recognition

Revenue Recognition

See Note 3 for the Company’s revenue recognition policy.

Leases

Leases

The Company leases certain equipment and facilities. The Company determines if an arrangement is a lease at inception. Operating lease right-of-use assets are included in operating lease assets on the consolidated balance sheet. Operating lease liabilities are included in the current portion of operating lease liabilities and operating lease liabilities on the consolidated balance sheet based on the timing of future lease payments. Finance lease assets are included in property, plant and equipment. Finance lease liabilities are included in accrued expenses and other current liabilities and other liabilities on the consolidated balance sheet based on the timing of future lease payments. Leases with an initial term of twelve months or less are not recognized on the balance sheet. The Company recognizes lease expense on a straight-line basis over the lease term. Many of the Company’s lease arrangements include both lease (e.g., fixed payments including rent) and non-lease components (e.g., common-area maintenance or other property management costs). The Company accounts for lease and non-lease components separately.

Most leases held by the Company do not provide an implicit rate. The Company determines the present value of future lease payments using its incremental borrowing rate for the same jurisdiction and term as the associated lease based on the information available at the lease commencement date. The Company has a centrally managed treasury function; therefore, the Company applies a portfolio approach for determining the incremental borrowing rate based on the applicable lease terms and the current economic environment.
Research and Development and Engineering Costs

Research and Development and Engineering Costs

Research and development and engineering (“R&D”) expenses are primarily comprised of employee related expenses and cost of materials for R&D projects. These costs are expensed as incurred.

Share-Based Compensation

Share-Based Compensation

The Company records expenses associated with share-based compensation awards to employees and directors based on the fair value of awards as of the grant date. For share-based compensation awards that vest over time based on employment or service, the associated expenses are based on the closing market price of the Company’s common shares on the date of grant and are recognized in the consolidated statements of operations ratably over the respective vesting periods, net of estimated forfeitures.

The Company also grants share-based awards that vest based on employment and certain specified company performance conditions, market conditions or a hybrid of specified company performance conditions and market conditions. Share-based compensation expenses for awards with specified company performance conditions are based on the closing market price of the Company’s common shares on the date of grant and are recognized ratably over their vesting periods when it is probable that the performance targets are expected to be achieved based on management’s projections. Management’s projections are revised, if necessary, in subsequent periods when underlying factors change the evaluation of the probability of achieving the performance targets as well as the estimated levels of achievement. When the estimated achievement levels are adjusted at a later date, a cumulative adjustment to the share-based compensation expense previously recognized would be recorded in the period such determination is made. Accordingly, share-based compensation expenses for awards with specified company performance conditions may differ significantly from period to period based on changes to both the probability and the level of achievement against the performance targets.

Share-based compensation expenses for awards with market conditions are based on the grant-date fair value, determined using the Monte-Carlo valuation model, and are recognized on a straight-line basis from the grant date to the end of the performance period. Compensation expenses for awards with market conditions will not be affected by the number of common shares that will ultimately be issued upon vesting at the end of the performance period.

Share-based compensation expenses for awards with a hybrid of specified company performance conditions and market conditions are based on the grant-date fair value, determined using the Monte-Carlo valuation model, and are recognized ratably over their vesting periods when it is probable that the performance targets are expected to be achieved based on management’s projections. Management’s projections are revised, if necessary, in subsequent periods when underlying factors change the evaluation of the probability and the level of achieving the specified company performance targets. When the estimated achievement levels are adjusted at a later date, a cumulative adjustment to the share-based compensation expense previously recognized would be recorded in the period such determination is made. Accordingly, share-based compensation expenses for awards with hybrid conditions may differ significantly from period to period based on changes to both the probability and the level of achievement against the specified company performance targets.

The Company also grants stock options to certain members of the executive management team to purchase common shares of the Company at a strike price equal to the closing market price of the Company’s common shares on the date of grant. Stock options typically vest over time based on employment. Share-based compensation expenses associated with stock options are based on the grant-date fair value, determined using the Black-Scholes option pricing model, and are recognized on a straight-line basis ratably over the respective vesting period.

Advertising Costs

Advertising Costs

Advertising costs are expensed as incurred and are included in selling, general and administrative expenses in the consolidated statement of operations. Advertising costs were not material for the years ended December 31, 2025, 2024 and 2023.

Restructuring, Acquisition and Related Costs

Restructuring, Acquisition and Related Costs

The Company accounts for its restructuring activities in accordance with the provisions of ASC 420, “Exit or Disposal Cost Obligations.” The Company makes assumptions related to the amounts of employee severance benefits and related costs, useful lives and residual value of long-lived assets, and discount rates. Estimates and assumptions are based on the best information available at the time the obligation is recognized. These estimates are reviewed and revised as facts and circumstances dictate.

Acquisition related costs incurred to effect a business combination, including finders’ fees, legal, valuation and other professional or consulting fees, are expensed as incurred. Acquisition related costs also include expenses recognized under earn-out agreements in connection with acquisitions.
Accounting for Income Taxes

Accounting for Income Taxes

The asset and liability method is used to account for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to temporary differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. This method also requires the recognition of future tax benefits, such as net operating loss carryforwards, to the extent that it is more likely than not that such benefits will be realized. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the temporary differences are expected to be recovered or settled. A valuation allowance is established to reduce the deferred tax assets if it is more likely than not that some or all of the related tax benefits will not be realized in the future. Valuation allowances are reassessed periodically to determine whether it is more likely than not that the tax benefits will be realized in the future and if any existing valuation allowance should be released.

The majority of the Company’s business activities are conducted through its subsidiaries outside of Canada. Earnings from these subsidiaries are generally indefinitely reinvested in the local businesses. Further, local laws and regulations may also restrict certain subsidiaries from paying dividends to their parents. Consequently, the Company generally does not accrue income taxes for the repatriation of such earnings in accordance with ASC 740, “Income Taxes.” To the extent that there are excess accumulated earnings that the Company intends to repatriate from any such subsidiaries, the Company recognizes deferred tax liabilities on such foreign earnings.

The Company assesses its income tax positions and records tax benefits for all years subject to examination based on the evaluation of the facts, circumstances, and information available at each reporting date. For those tax positions with a greater than 50 percent likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information, the Company records a tax benefit. For those income tax positions that are not likely to be sustained, no tax benefit is recognized in the consolidated financial statements. The Company recognizes interest and penalties related to uncertain tax positions as part of the provision for income taxes.
Foreign Currency Contracts

Foreign Currency Contracts

The Company uses foreign currency contracts as a part of its strategy to limit its exposures to fluctuations in foreign currency exchange rates related to foreign currency denominated monetary assets and liabilities. The time duration of these foreign currency contracts approximates the underlying foreign currency transaction exposures, generally less than three months. These foreign currency contracts are not designated as cash flow, fair value or net investment hedges. Changes in the fair value of these foreign currency contracts are recognized in income before income taxes.
Recent Accounting Pronouncements

Recent Accounting Pronouncements

The following table provides a brief description of recent Accounting Standards Updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”):

Standard

 

Description

 

Effective Date

 

Effect on the Financial Statements or Other Significant Matters

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740) -Improvements to Income Tax Disclosures.”

 

ASU 2023-09 provides more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid.

 

The amendments in ASU 2023-09 are effective for annual periods beginning after December 15, 2024. Early adoption is permitted.

 

The Company adopted ASU 2023-09 beginning with its consolidated financial statement disclosures for the year ended December 31, 2025. See Note 16 “Income Taxes” for additional information.

Standard

 

Description

 

Effective Date

 

Effect on the Financial Statements or Other Significant Matters

In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.”

 

ASU 2024-03 improves financial reporting by requiring that public business entities disclose additional information about specific expense categories in the notes to financial statements at both interim and annual reporting periods.

 

The amendments in ASU 2024-03 are effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with early adoption permitted.

 

ASU 2024-03 affects financial statement disclosure only and, as a result, will have no impact on results of operations, cash flow or financial condition.

In September 2025, the FASB issued ASU 2025-06, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software.”

 

ASU 2025-06 eliminates references to prescriptive software development stages and requires capitalization of internal-use software costs once management commits funding and project completion is probable, while also updating disclosure requirements to align with Property, Plant, and Equipment guidance.

 

The amendments in ASU 2025-06 are effective for annual periods beginning after December 15, 2027. Early adoption is permitted.

 

 

The Company is currently evaluating the impact of ASU 2025-06 on its consolidated financial statement disclosures.

In November 2025, the FASB issued ASU 2025-09, “Derivatives and Hedging (Topic 815): Hedge Accounting Improvements.”

 

ASU 2025-09 clarifies certain aspects of the guidance on hedge accounting and address several incremental hedge accounting issues arising from global reference rate reform.

 

The amendments in ASU 2025-09 are effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with early adoption permitted.

 

The Company is currently evaluating the impact of ASU 2025-09 on its consolidated financial statement disclosures.

In December 2025, the FASB issued ASU 2025-12, “Codification Improvements”

 

ASU 2025-12 represent changes to the Codification that clarify, correct errors, or make minor improvements. The amendments make the Codification easier to understand and apply.

 

The amendments in ASU 2025-12 are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods.

 

The Company is currently evaluating the impact of ASU 2025-12 on its consolidated financial statement disclosures.
v3.25.4
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Changes in Allowance for Doubtful Accounts

For the years ended December 31, 2025, 2024 and 2023, changes in the allowance for doubtful accounts were as follows (in thousands):

 

2025

 

 

2024

 

 

2023

 

Balance at beginning of year

$

505

 

 

$

571

 

 

$

995

 

Addition to credit loss expense

 

897

 

 

 

223

 

 

 

175

 

Write-offs, net of recoveries of amounts previously reserved

 

(72

)

 

 

(288

)

 

 

(612

)

Exchange rate changes

 

11

 

 

 

(1

)

 

 

13

 

Balance at end of year

$

1,341

 

 

$

505

 

 

$

571

 
v3.25.4
Revenue (Tables)
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of Net Revenues Disaggregated by the Capabilities of the Underlying Products and Technologies The following table presents revenues disaggregated by the capabilities of the underlying products and technologies for the years ended December 31, 2025, 2024, and 2023, respectively (in thousands):

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Precision Manufacturing

$

182,258

 

 

$

202,303

 

 

$

225,750

 

Robotics and Automation

 

318,577

 

 

 

288,317

 

 

 

273,470

 

Automation Enabling Technologies

$

500,835

 

 

$

490,620

 

 

$

499,220

 

 

 

 

 

 

 

 

 

 

Precision Medicine

 

237,321

 

 

 

249,872

 

 

 

178,840

 

Advanced Surgery

 

242,444

 

 

 

208,753

 

 

 

203,602

 

Medical Solutions

$

479,765

 

 

$

458,625

 

 

$

382,442

 

Total Revenue

$

980,600

 

 

$

949,245

 

 

$

881,662

 
v3.25.4
Business Combinations (Tables)
 12 Months Ended
Dec. 31, 2025
Summary of Estimated Total Purchase Consideration

Pursuant to the Share Purchase Agreement, the Company acquired all outstanding equity of Keonn for estimated total purchase consideration of $75.1 million, which consists of:

Cash consideration

$

68,336

 

Deferred consideration

 

2,192

 

Estimated fair value of contingent consideration

 

4,537

 

Estimated total purchase consideration

$

75,065

 
Keonn Technologies, S.L  
Summary of Fair Values of Assets Acquired and Liabilities Assumed Purchase Price Allocation

The purchase price for Keonn was allocated as follows (in thousands):

 

Purchase Price

 

Allocation

 

Cash

$

4,045

 

Accounts receivable

 

1,977

 

Inventory

 

5,377

 

Property, plant and equipment

 

1,401

 

Operating lease assets

 

3,124

 

Intangible assets

 

33,203

 

Goodwill

 

43,192

 

Other assets

 

1,412

 

Total assets acquired

 

93,731

 

Accounts payable

 

1,593

 

Operating lease liabilities

 

3,124

 

Debt

 

2,504

 

Deferred tax liabilities

 

7,369

 

Other liabilities

 

4,076

 

Total liabilities assumed

 

18,666

 

Total assets acquired, net of liabilities assumed

 

75,065

 

Less: cash acquired

 

4,045

 

Total purchase price, net of cash acquired

$

71,020

 
Fair Value of Intangible Assets

The fair value of intangible assets for Keonn is comprised of the following:

 

Estimated Fair

 

 

Amortization

 

Value
(In thousands)

 

 

Period

Developed technologies

$

9,753

 

 

9 years

Customer relationships

 

22,354

 

 

9 years

Trade name

 

1,096

 

 

14 years

Total

$

33,203

 

 

 
Motion Solutions Parent Corp.  
Summary of Fair Values of Assets Acquired and Liabilities Assumed Purchase Price Allocation

The total purchase price for Motion Solutions was allocated as follows (in thousands):

 

Purchase Price

 

 

Allocation

 

Cash

$

776

 

Accounts receivable

 

8,515

 

Inventory

 

13,940

 

Property, plant and equipment

 

3,126

 

Operating lease assets

 

8,076

 

Intangible assets

 

83,000

 

Goodwill

 

106,761

 

Other assets

 

1,002

 

Total assets acquired

 

225,196

 

Accounts payable

 

5,305

 

Operating lease liabilities

 

8,514

 

Deferred tax liabilities

 

18,171

 

Other liabilities

 

1,230

 

Total liabilities assumed

 

33,220

 

Total assets acquired, net of liabilities assumed

 

191,976

 

Less: cash acquired

 

776

 

Purchase price, net of cash acquired

$

191,200

 
Fair Value of Intangible Assets

The fair value of intangible assets for Motion Solutions is comprised of the following:

 

Estimated Fair

 

 

Amortization

 

Value
(In thousands)

 

 

Period

Developed technologies

$

34,400

 

 

7 years

Customer relationships

 

43,100

 

 

13 years

Backlog

 

5,500

 

 

1 year

Total

$

83,000

 

 

 
v3.25.4
Accumulated Other Comprehensive Loss (Tables)
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Components of Accumulated Other Comprehensive Loss

Changes in accumulated other comprehensive loss for the years ended December 31, 2025, 2024, and 2023, respectively, were as follows (in thousands):

 

Total Accumulated

 

 

 

 

 

 

 

 

Other

 

 

Cumulative

 

 

Pension

 

 

Comprehensive

 

 

Translation

 

 

Liability

 

 

Income (Loss)

 

 

Adjustments

 

 

Adjustments

 

Balance at December 31, 2022

$

(32,009

)

 

$

(24,427

)

 

$

(7,582

)

Other comprehensive income (loss)

 

6,951

 

 

 

7,823

 

 

 

(872

)

Amounts reclassified from accumulated other comprehensive loss (1)

 

1,020

 

 

 

—

 

 

 

1,020

 

Balance at December 31, 2023

 

(24,038

)

 

 

(16,604

)

 

 

(7,434

)

Other comprehensive income (loss)

 

(6,764

)

 

 

(7,082

)

 

 

318

 

Amounts reclassified from accumulated other comprehensive loss (1)

 

881

 

 

 

—

 

 

 

881

 

Balance at December 31, 2024

 

(29,921

)

 

 

(23,686

)

 

 

(6,235

)

Other comprehensive income (loss)

 

26,109

 

 

 

27,158

 

 

 

(1,049

)

Amounts reclassified from accumulated other comprehensive loss (1)

 

808

 

 

 

—

 

 

 

808

 

Balance at December 31, 2025

$

(3,004

)

 

$

3,472

 

 

$

(6,476

)
(1)
The amounts reclassified from accumulated other comprehensive loss were included in other income (expense) in the consolidated statements of operations.
v3.25.4
Goodwill, Intangible Assets and Impairment Charges (Tables)
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of Changes in Goodwill

The following table summarizes changes in goodwill during the year ended December 31, 2025 (in thousands):

 

Amount

 

Balance at beginning of year

$

584,098

 

Goodwill from current year acquisitions

 

43,192

 

Effect of foreign exchange rate changes

 

20,058

 

Balance at end of year

$

647,348

 

 
Goodwill by Reportable Segment

Goodwill by reportable segment as of December 31, 2025 was as follows (in thousands):

 

Reportable Segment

 

 

 

 

 

Automation Enabling Technologies

 

 

Medical Solutions

 

 

Total

 

Goodwill

$

447,313

 

 

$

351,264

 

 

$

798,577

 

Accumulated impairment of goodwill

 

(119,507

)

 

 

(31,722

)

 

 

(151,229

)

Total

$

327,806

 

 

$

319,542

 

 

$

647,348

 

Goodwill by reportable segment as of December 31, 2024 was as follows (in thousands):

 

Reportable Segment

 

 

 

 

 

Automation Enabling Technologies

 

 

Medical Solutions

 

 

Total

 

Goodwill

$

439,980

 

 

$

295,347

 

 

$

735,327

 

Accumulated impairment of goodwill

 

(119,507

)

 

 

(31,722

)

 

 

(151,229

)

Total

$

320,473

 

 

$

263,625

 

 

$

584,098

 
Intangible Assets

Intangible assets as of December 31, 2025 and 2024, respectively, are summarized as follows (dollar amounts in thousands):

 

December 31, 2025

 

 

Gross Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net Carrying
Amount

 

 

Weighted Average Remaining Life (Years)

 

Amortizable intangible assets:

 

 

 

 

 

 

 

 

 

 

 

Patents and developed technologies

$

235,851

 

 

$

(180,798

)

 

$

55,053

 

 

 

7.0

 

Customer relationships

 

296,868

 

 

 

(191,037

)

 

 

105,831

 

 

 

11.7

 

Trademarks and trade names

 

25,261

 

 

 

(18,396

)

 

 

6,865

 

 

 

9.3

 

Amortizable intangible assets

 

557,980

 

 

 

(390,231

)

 

 

167,749

 

 

 

10.0

 

Non-amortizable intangible assets:

 

 

 

 

 

 

 

 

 

 

 

Trade names

 

13,027

 

 

 

—

 

 

 

13,027

 

 

 

 

Total

$

571,007

 

 

$

(390,231

)

 

$

180,776

 

 

 

 

 

 

December 31, 2024

 

 

Gross Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net Carrying
Amount

 

 

Weighted Average Remaining Life (Years)

 

Amortizable intangible assets:

 

 

 

 

 

 

 

 

 

 

 

Patents and developed technologies

$

218,867

 

 

$

(159,041

)

 

$

59,826

 

 

 

7.6

 

Customer relationships

 

265,156

 

 

 

(158,938

)

 

 

106,218

 

 

 

13.2

 

Trademarks and trade names

 

23,367

 

 

 

(16,594

)

 

 

6,773

 

 

 

9.2

 

Amortizable intangible assets

 

507,390

 

 

 

(334,573

)

 

 

172,817

 

 

 

11.1

 

Non-amortizable intangible assets:

 

 

 

 

 

 

 

 

 

 

 

Trade names

 

13,027

 

 

 

—

 

 

 

13,027

 

 

 

 

Total

$

520,417

 

 

$

(334,573

)

 

$

185,844

 

 

 

 

 
Amortization Expense of Intangible Assets Amortization expense for the periods presented was as follows (in thousands):

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Amortization expense – cost of revenue

$

16,276

 

 

$

14,773

 

 

$

12,150

 

Amortization expense – operating expenses

 

27,477

 

 

 

25,794

 

 

 

20,445

 

Total amortization expense

$

43,753

 

 

$

40,567

 

 

$

32,595

 
Estimated Future Amortization Expense

Estimated future amortization expense for each of the five succeeding years and thereafter is as follows (in thousands):

Year Ending December 31,

 

Cost of
Revenue

 

 

Operating
Expenses

 

 

Total

 

2026

 

$

15,044

 

 

$

23,111

 

 

$

38,155

 

2027

 

 

12,118

 

 

 

19,263

 

 

 

31,381

 

2028

 

 

10,311

 

 

 

16,221

 

 

 

26,532

 

2029

 

 

7,440

 

 

 

12,616

 

 

 

20,056

 

2030

 

 

4,764

 

 

 

10,129

 

 

 

14,893

 

Thereafter

 

 

5,376

 

 

 

31,356

 

 

 

36,732

 

Total

 

$

55,053

 

 

$

112,696

 

 

$

167,749

 
v3.25.4
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Values of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table summarizes the fair values of the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2025 (in thousands):

 

Fair Value

 

 

Quoted Price in
Active Market for
 Identical Assets
(Level 1)

 

 

Significant Other
Observable Inputs
(Level 2)

 

 

Significant Other
Unobservable
Inputs
(Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

Money market funds

$

291,629

 

 

$

291,629

 

 

$

—

 

 

$

—

 

Prepaid expenses and other current assets:

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

110

 

 

 

—

 

 

 

110

 

 

 

—

 

 

$

291,739

 

 

$

291,629

 

 

$

110

 

 

$

—

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Accrued expenses and other current liabilities:

 

 

 

 

 

 

 

 

 

 

 

Contingent considerations - Current

$

4,465

 

 

$

—

 

 

$

—

 

 

$

4,465

 

Contingent considerations - Long term

 

1,291

 

 

 

—

 

 

 

—

 

 

 

1,291

 

Foreign currency forward contracts

 

134

 

 

 

—

 

 

 

134

 

 

 

—

 

 

$

5,890

 

 

$

—

 

 

$

134

 

 

$

5,756

 

The following table summarizes the fair values of the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2024 (in thousands):

 

Fair Value

 

 

Quoted Price in
Active Market for
 Identical Assets
(Level 1)

 

 

Significant Other
Observable Inputs
(Level 2)

 

 

Significant Other
Unobservable
Inputs
(Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Prepaid expenses and other current assets:

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

$

1,226

 

 

$

—

 

 

$

1,226

 

 

$

—

 

 

$

1,226

 

 

$

—

 

 

$

1,226

 

 

$

—

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Accrued expenses and other current liabilities:

 

 

 

 

 

 

 

 

 

 

 

Contingent considerations - Current

$

57

 

 

$

—

 

 

$

—

 

 

$

57

 

Foreign currency forward contracts

 

1,401

 

 

 

—

 

 

 

1,401

 

 

 

—

 

 

$

1,458

 

 

$

—

 

 

$

1,401

 

 

$

57

 

 

Changes in the fair value of Level 3 contingent considerations during the twelve months ended December 31, 2025 were as follows (in thousands):

 

Contingent Considerations

 

Balance at December 31, 2024

$

57

 

Acquisition of Keonn

 

4,537

 

Payments

 

—

 

Fair value adjustments

 

830

 

Effect of foreign exchange rates

 

332

 

Balance at December 31, 2025

$

5,756

 

The following table provides qualitative information associated with the fair value measurement of the Company’s Level 3 liabilities:

Liability

December 31, 2025 Fair Value

(in thousands)

Valuation Technique

Unobservable Inputs

Percentage Applied

Contingent consideration (Keonn)

$5,692

Monte Carlo method

Historical and projected revenue and gross profit margin from fiscal year 2025 to 2027

N/A

 

 

 

 

 

 

Gross Profit Premium

 

9.3%

 

 

 

 

 

 

Revenue risk premium

 

8.4%

 

 

 

 

 

 

Gross Profit Volatility

 

38.5%

 

 

 

 

 

 

Revenue Volatility

 

35.0%

 

 

 

 

 

 

Credit spread

 

1.9%
Changes in Fair Value of Level 3 Contingent Considerations

Changes in the fair value of Level 3 contingent considerations during the twelve months ended December 31, 2025 were as follows (in thousands):

 

Contingent Considerations

 

Balance at December 31, 2024

$

57

 

Acquisition of Keonn

 

4,537

 

Payments

 

—

 

Fair value adjustments

 

830

 

Effect of foreign exchange rates

 

332

 

Balance at December 31, 2025

$

5,756

 
Schedule Of Qualitative Information Associated With Fair Value Measurement of Company's Level 3 Liabilities

The following table provides qualitative information associated with the fair value measurement of the Company’s Level 3 liabilities:

Liability

December 31, 2025 Fair Value

(in thousands)

Valuation Technique

Unobservable Inputs

Percentage Applied

Contingent consideration (Keonn)

$5,692

Monte Carlo method

Historical and projected revenue and gross profit margin from fiscal year 2025 to 2027

N/A

 

 

 

 

 

 

Gross Profit Premium

 

9.3%

 

 

 

 

 

 

Revenue risk premium

 

8.4%

 

 

 

 

 

 

Gross Profit Volatility

 

38.5%

 

 

 

 

 

 

Revenue Volatility

 

35.0%

 

 

 

 

 

 

Credit spread

 

1.9%
v3.25.4
Earnings per Common Share (Tables)
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Computation of Basic and Diluted Earnings per Common Share

The following table sets forth the computation of basic and diluted earnings per common share (in thousands, except per share amounts):

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Numerators:

 

 

 

 

 

 

 

 

Net income

$

53,829

 

 

$

64,087

 

 

$

72,878

 

 

 

 

 

 

 

 

 

 

Denominators:

 

 

 

 

 

 

 

 

Weighted average common shares outstanding— basic

 

36,589

 

 

 

35,950

 

 

 

35,844

 

Dilutive potential common shares

 

113

 

 

 

174

 

 

 

187

 

Weighted average common shares outstanding— diluted

 

36,702

 

 

 

36,124

 

 

 

36,031

 

Antidilutive potential common shares excluded from above

 

239

 

 

 

128

 

 

 

99

 

 

 

 

 

 

 

 

 

 

Earnings per Common Share:

 

 

 

 

 

 

 

 

Basic

$

1.47

 

 

$

1.78

 

 

$

2.03

 

Diluted

$

1.47

 

 

$

1.77

 

 

$

2.02

 
v3.25.4
Supplementary Balance Sheet Information (Tables)
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Inventories

Inventories

 

December 31,

 

 

2025

 

 

2024

 

Raw materials

$

123,305

 

 

$

92,198

 

Work-in-process

 

32,479

 

 

 

24,719

 

Finished goods

 

31,716

 

 

 

27,327

 

Demo and consigned inventory

 

784

 

 

 

362

 

Total inventories

$

188,284

 

 

$

144,606

 

 
Property, Plant and Equipment, Net

Property, Plant and Equipment, Net

 

December 31,

 

 

2025

 

 

2024

 

Cost:

 

 

 

 

 

Land, buildings and improvements

$

103,856

 

 

$

99,217

 

Machinery and equipment

 

147,195

 

 

 

125,694

 

Total cost

 

251,051

 

 

 

224,911

 

Accumulated depreciation

 

(132,560

)

 

 

(111,776

)

Property, plant and equipment, net

$

118,491

 

 

$

113,135

 
Summary of Depreciation Expense on Property, Plant and Equipment, Including Demo Units and Assets under Finance Leases

The following table summarizes depreciation expense on property, plant and equipment, including demo units and assets under finance leases (in thousands):

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Depreciation expense

$

18,179

 

 

$

14,996

 

 

$

14,017

 
Accrued Expenses and Other Current Liabilities

The following table summarizes accrued expenses and other current liabilities as of the dates indicated (in thousands):

 

December 31,

 

 

2025

 

 

2024

 

Accrued compensation and benefits

$

16,405

 

 

$

28,361

 

Accrued warranty

 

4,463

 

 

 

4,805

 

Contract liabilities, current portion

 

10,945

 

 

 

5,715

 

Accrued restructuring

 

10,251

 

 

 

6,131

 

Accrued contingent considerations and earn-outs

 

4,465

 

 

 

57

 

Other

 

16,969

 

 

 

15,262

 

Total

$

63,498

 

 

$

60,331

 
Accrued Warranty

The following table summarizes changes in accrued warranty for the periods indicated (in thousands):

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Balance at beginning of year

$

4,805

 

 

$

5,292

 

 

$

5,127

 

Provision charged to cost of revenue

 

2,250

 

 

 

1,140

 

 

 

2,445

 

Warranty liabilities acquired from acquisitions

 

—

 

 

 

76

 

 

 

—

 

Use of provision

 

(2,674

)

 

 

(1,680

)

 

 

(2,338

)

Foreign currency exchange rate changes

 

82

 

 

 

(23

)

 

 

58

 

Balance at end of year

$

4,463

 

 

$

4,805

 

 

$

5,292

 
Other Long Term Liabilities

The following table summarizes other long-term liabilities as of the dates indicated (in thousands):

 

December 31,

 

 

2025

 

 

2024

 

Finance lease obligations

$

2,348

 

 

$

3,175

 

Other

 

4,638

 

 

 

1,316

 

Total

$

6,986

 

 

$

4,491

 

 
v3.25.4
Debt (Tables)
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Debt

Debt consisted of the following (in thousands):

 

December 31,

 

 

2025

 

 

2024

 

Senior Credit Facilities – term loans

$

6,242

 

 

$

4,710

 

Tangible Equity Units – Amortizing Notes

 

33,870

 

 

 

—

 

Less: unamortized debt issuance costs

 

(1,821

)

 

 

(19

)

Total current portion of long-term debt

$

38,291

 

 

$

4,691

 

 

 

 

 

 

 

Senior Credit Facilities – term loans

$

142,752

 

 

$

65,698

 

Senior Credit Facilities – revolving credit facility

 

—

 

 

 

348,751

 

Tangible Equity Units – Amortizing Notes

 

76,691

 

 

 

—

 

Less: unamortized debt issuance costs

 

(6,905

)

 

 

(2,500

)

Total long-term debt

$

212,538

 

 

$

411,949

 

 

 

 

 

 

 

Total debt

$

250,829

 

 

$

416,640

 
Repayments of Outstanding Principal under Term Loan Facility

As of December 31, 2025, the outstanding principal under the Company’s term loan facilities are scheduled to be repaid as follows (in thousands):

 

Principal Amount

 

2026

$

6,242

 

2027

 

8,117

 

2028

 

9,055

 

2029

 

9,055

 

2030

 

116,525

 

Total debt repayments

$

148,994

 

 

 

 
v3.25.4
Tangible Equity Unit ("TEU") Offering (Tables)
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Schedule of Proceeds from Issuance Allocated to Equity and Debt Component

The proceeds from the issuance of the Units were allocated to equity and debt based on the relative fair value of the respective components each Unit as follows:

 

Equity Component

 

 

Debt Component

 

 

Total

 

Fair value per unit

$

41.26

 

 

$

8.74

 

 

$

50.00

 

 

 

 

 

 

 

 

 

 

Gross proceeds

 

521,939

 

 

 

110,561

 

 

 

632,500

 

Less: Issuance costs

 

16,011

 

 

 

3,392

 

 

 

19,403

 

Net proceeds

$

505,928

 

 

$

107,169

 

 

$

613,097

 
Schedule of Settlement Rate of Common Stock

Applicable Market Value

 

Common Stock Issued

Equal to or greater than $134.0842

 

0.3729 shares (minimum settlement rate)

Less than $134.0842 but greater than $107.26

 

$50 divided by applicable market value

Less than or equal to $107.26

 

0.4662 shares (maximum settlement rate)

 
Repayments of Outstanding Principal under Amortizing Notes

As of December 31, 2025, the outstanding principal under the Company's Amortizing Notes are scheduled to be repaid as follows (in thousands):

 

Principal Amount

 

2026

$

33,870

 

2027

 

37,147

 

2028

 

39,544

 

Total debt repayments

$

110,561

 
v3.25.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Summary of Components of Lease Costs

The following table summarizes the components of lease costs included in the statements of operations for the periods indicated (in thousands):

 

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Operating lease cost

$

11,506

 

 

$

12,109

 

 

$

10,475

 

Finance lease cost

 

 

 

 

 

 

 

 

Amortization of right-of-use assets

 

602

 

 

 

602

 

 

 

602

 

Interest on lease liabilities

 

195

 

 

 

236

 

 

 

274

 

Variable lease cost

 

1,220

 

 

 

1,192

 

 

 

1,007

 

Total lease cost

$

13,523

 

 

$

14,139

 

 

$

12,358

 

 
Summary of Balance Sheet Information Related to Leases

The following table provides the details of balance sheet information related to leases as of the dates indicated (in thousands, except lease term and discount rate):

 

 

December 31,

 

 

 

2025

 

 

2024

 

Operating leases:

 

 

 

 

 

 

Operating lease right-of-use assets

 

$

41,697

 

 

$

42,908

 

 

 

 

 

 

 

 

Current portion of operating lease liabilities

 

$

9,857

 

 

$

9,879

 

Operating lease liabilities

 

 

38,873

 

 

 

40,548

 

Total operating lease liabilities

 

$

48,730

 

 

$

50,427

 

 

 

 

 

 

 

 

Finance leases:

 

 

 

 

 

 

Property, plant and equipment, gross

 

$

9,582

 

 

$

9,582

 

Accumulated depreciation

 

 

(7,476

)

 

 

(6,874

)

Finance lease assets included in property, plant and equipment, net

 

$

2,106

 

 

$

2,708

 

 

 

 

 

 

 

 

Accrued expenses and other current liabilities

 

$

828

 

 

$

759

 

Other liabilities

 

 

2,348

 

 

 

3,175

 

Total finance lease liabilities

 

$

3,176

 

 

$

3,934

 

 

 

 

 

 

 

 

Weighted-average remaining lease term (in years):

 

 

 

 

 

 

Operating leases

 

 

7.3

 

 

 

7.4

 

Finance leases

 

 

3.5

 

 

 

4.5

 

Weighted-average discount rate:

 

 

 

 

 

 

Operating leases

 

 

4.92

%

 

 

4.82

%

Finance leases

 

 

5.54

%

 

 

5.54

%
Summary of Cash Flow Information Related to Leases

The following table provides the details of cash flow information related to leases for the periods indicated (in thousands):

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Cash paid for amounts included in lease liabilities:

 

 

 

 

 

 

 

 

Operating cash flows from finance leases

$

195

 

 

$

236

 

 

$

274

 

Operating cash flows from operating leases

$

12,047

 

 

$

11,169

 

 

$

7,826

 

Financing cash flows from finance leases

$

759

 

 

$

718

 

 

$

657

 

Supplemental non-cash information:

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for new operating lease liabilities(1)

$

6,315

 

 

$

14,237

 

 

$

4,046

 

Right-of-use assets obtained in exchange for new finance lease liabilities

$

—

 

 

$

—

 

 

$

—

 

 
Future Minimum Lease Payments Under Operating and Finance Leases

Future minimum lease payments under operating and finance leases expiring subsequent to December 31, 2025, including operating leases associated with facilities that have been vacated as a result of the Company’s restructuring actions, are summarized as follows (in thousands):

Year Ending December 31,

 

Operating Leases

 

 

Finance Leases

 

2026

 

$

11,572

 

 

$

979

 

2027

 

 

10,447

 

 

 

1,003

 

2028

 

 

7,495

 

 

 

1,003

 

2029

 

 

6,476

 

 

 

502

 

2030

 

 

6,166

 

 

 

—

 

Thereafter

 

 

17,195

 

 

 

—

 

Total minimum lease payments

 

 

59,351

 

 

 

3,487

 

Less: interest

 

 

(10,621

)

 

 

(311

)

Present value of lease liabilities

 

$

48,730

 

 

$

3,176

 
v3.25.4
Stockholders’ Equity and Share-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2025
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Stock Options Outstanding and Exercisable

The following table shows stock options that were outstanding and exercisable as of December 31, 2025 and the related weighted average exercise price, weighted average remaining contractual term and aggregate intrinsic value:

 

Stock Options
(In thousands)

 

 

Weighted
Average Exercise Price

 

Weighted
Average Remaining Contractual Term (years)

 

Aggregate Intrinsic Value (1) (In thousands)

 

Outstanding as of December 31, 2024

 

149

 

 

$

139.17

 

 

 

 

 

Granted

 

—

 

 

$

—

 

 

 

 

 

Exercised

 

(4

)

 

$

135.86

 

 

 

 

 

Forfeited or expired

 

(11

)

 

$

157.04

 

 

 

 

 

Outstanding as of December 31, 2025

 

134

 

 

$

137.77

 

3.85 years

 

$

1,343

 

Exercisable as of December 31, 2025

 

90

 

 

$

128.40

 

3.37 years

 

$

1,343

 

Expected to vest as of December 31, 2025

 

44

 

 

$

157.25

 

4.84 years

 

$

—

 
(1)
The aggregate intrinsic value is calculated as the difference between the closing market price of $118.99 per common share as of December 31, 2025 and the exercise price of the stock options. It excludes the effect of stock options that have a zero or negative intrinsic value.
Amended and Restated 2010 Incentive Plan  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Share-Based Compensation Expense Recorded In Operating Income

The table below summarizes share-based compensation expense recorded in operating income for the periods indicated (in thousands):

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Selling, general and administrative

$

22,629

 

 

$

19,885

 

 

$

21,963

 

Research and development and engineering

 

3,988

 

 

 

2,346

 

 

 

2,031

 

Cost of revenue

 

2,877

 

 

 

1,076

 

 

 

1,594

 

Restructuring, acquisition and related costs

 

44

 

 

 

—

 

 

 

—

 

Total share-based compensation expense

$

29,538

 

 

$

23,307

 

 

$

25,588

 
Restricted Stock Units and Deferred Stock Units Issued and Outstanding

The table below summarizes activities during the year ended December 31, 2025 relating to restricted and deferred stock units issued and outstanding under the Amended and Restated 2010 Incentive Plan:

 

Restricted and Deferred
Stock Units
(In thousands)

 

 

Weighted
Average Grant
Date Fair Value

 

 

Weighted Average
Remaining Vesting
Period (In years)

 

Aggregate Intrinsic
Value (1)
(In thousands)

 

Unvested at December 31, 2024

 

198

 

 

$

154.43

 

 

 

 

 

 

Granted

 

336

 

 

$

128.30

 

 

 

 

 

 

Vested

 

(94

)

 

$

147.47

 

 

 

 

 

 

Forfeited

 

(50

)

 

$

142.76

 

 

 

 

 

 

Unvested at December 31, 2025

 

390

 

 

$

135.09

 

 

1.08 years

 

$

46,354

 

Expected to vest as of December 31, 2025

 

360

 

 

$

136.01

 

 

1.08 years

 

$

42,784

 
The aggregate intrinsic value is calculated based on the fair value of $118.99 per common share as of December 31, 2025 due to the fact that the restricted and deferred stock units carry a $0 purchase price.
Performance-Based Restricted Stock Units Issued and Outstanding

The table below summarizes activities during the year ended December 31, 2025 relating to performance-based restricted stock units issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan:

 

Performance
Stock Units (2)
(In thousands)

 

 

Weighted
Average Grant
Date Fair Value

 

 

Weighted Average
Remaining Vesting
Period (In years)

 

Aggregate
Intrinsic
Value (3)
(In thousands)

 

Unvested at December 31, 2024

 

227

 

 

$

165.13

 

 

 

 

 

 

Granted

 

157

 

 

$

133.11

 

 

 

 

 

 

Performance adjustments(1)

 

(8

)

 

$

143.51

 

 

 

 

 

 

Vested

 

(53

)

 

$

141.33

 

 

 

 

 

 

Forfeited

 

(20

)

 

$

167.65

 

 

 

 

 

 

Unvested at December 31, 2025

 

303

 

 

$

153.13

 

 

1.54 years

 

$

36,092

 

Expected to vest as of December 31, 2025

 

217

 

 

$

148.98

 

 

1.54 years

 

$

25,844

 
(1)
The amount shown represents performance adjustments related to the performance-based awards vested during the year ended December 31, 2025.
(2)
The unvested PSUs are shown in this table at target payout. The number of shares vested reflects the number of shares earned and issued during the year. As of December 31, 2025, the maximum number of PSUs available to be earned was approximately 593 thousand.
(3)
The aggregate intrinsic value is calculated based on the fair value of $118.99 per common share as of December 31, 2025 due to the fact that the performance stock units carry a $0 purchase price.
Schedule of Share Based Payment Award Performance Stock Awards Valuation Assumptions

The grant-date fair value of the hybrid PSUs granted during the year ended December 31, 2025 was estimated using the Monte-Carlo valuation model with the following assumptions:

 

Year Ended

 

 

December 31, 2025

 

Grant-date stock price

$

142.80

 

Expected volatility

 

36.94

%

Risk-free interest rate

 

4.18

%

Expected annual dividend yield

 

—

 

Weighted average fair value

$

160.93

 

 
v3.25.4
Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Net Periodic Pension Cost

The net periodic pension cost is included in other income (expense) in the consolidated statements of operations and consisted of the following components (in thousands):

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Components of the net periodic pension cost:

 

 

 

 

 

 

 

 

Interest cost

$

1,255

 

 

$

1,158

 

 

$

1,185

 

Expected return on plan assets

 

(1,500

)

 

 

(1,466

)

 

 

(1,440

)

Amortization of actuarial losses

 

778

 

 

 

851

 

 

 

990

 

Amortization of prior service cost

 

30

 

 

 

30

 

 

 

30

 

Net periodic pension cost

$

563

 

 

$

573

 

 

$

765

 
Actuarial Assumptions used to Compute net Periodic Pension Cost and Funded Status

The actuarial assumptions used to compute the net periodic pension cost for the years ended December 31, 2025, December 31, 2024 and December 31, 2023, respectively, were as follows:

 

Year Ended December 31,

 

2025

 

2024

 

2023

Weighted-average discount rate

5.5%

 

4.5%

 

4.8%

Weighted-average long-term rate of return on plan assets

5.5%

 

5.1%

 

5.3%

 

The actuarial assumptions used to compute the benefit obligations as of December 31, 2025 and December 31, 2024, respectively, were as follows:

 

December 31,

 

2025

 

2024

Weighted-average discount rate

5.6%

 

5.5%

Rate of inflation

2.7%

 

3.1%
Reconciliation of Benefit Obligations and Plan Assets of U.K. Plan

The following table provides a reconciliation of benefit obligations and plan assets of the U.K. Plan (in thousands):

 

December 31,

 

 

2025

 

 

2024

 

Change in benefit obligation:

 

 

 

 

 

Projected benefit obligation at beginning of year

$

22,400

 

 

$

26,259

 

Interest cost

 

1,255

 

 

 

1,158

 

Actuarial (gains) losses (1)

 

(104

)

 

 

(3,393

)

Benefits paid

 

(1,396

)

 

 

(1,374

)

Prior service cost

 

—

 

 

 

—

 

Foreign currency exchange rate changes

 

1,570

 

 

 

(250

)

Projected benefit obligation at end of year

$

23,725

 

 

$

22,400

 

Accumulated benefit obligation at end of year

$

23,725

 

 

$

22,400

 

Change in plan assets:

 

 

 

 

 

Fair value of plan assets at beginning of year

$

26,645

 

 

$

29,351

 

Actual return on plan assets

 

845

 

 

 

(1,311

)

Employer contributions

 

—

 

 

 

287

 

Benefits paid

 

(1,396

)

 

 

(1,374

)

Foreign currency exchange rate changes

 

1,862

 

 

 

(308

)

Fair value of plan assets at end of year

$

27,956

 

 

$

26,645

 

Funded status at end of year

$

4,231

 

 

$

4,245

 

Amounts included in accumulated other comprehensive loss not yet recognized in net periodic pension cost:

 

 

 

 

 

Net actuarial losses at beginning of year

$

(6,197

)

 

$

(7,772

)

Net actuarial gains (losses) during the year

 

(551

)

 

 

627

 

Prior service cost arising during the year

 

—

 

 

 

—

 

Amounts reclassified from accumulated other comprehensive loss to income before income taxes

 

808

 

 

 

881

 

Foreign currency exchange rate changes

 

(430

)

 

 

67

 

Net actuarial losses

$

(6,370

)

 

$

(6,197

)
(1)
Actuarial (gains)/losses in the U.K. Plan for the years ended December 31, 2025 and December 31, 2024, respectively, primarily resulted from changes in the discount rate assumptions.
Expected Future Benefit Payments for Each of Next Five Years

The following table reflects the total expected benefit payments to plan participants for each of the next five years and the following five years in aggregate and have been estimated based on the same assumptions used to measure the Company’s benefit obligations as of December 31, 2025 (in thousands):

 

Amount

 

2026

$

1,680

 

2027

 

1,772

 

2028

 

1,741

 

2029

 

1,739

 

2030

 

2,232

 

2031-2035

 

10,214

 

Total

$

19,378

 
Summary of Fair Value of Plan Assets by Asset Category

The following table summarizes the fair values of Plan assets by asset category as of December 31, 2025 (in thousands):

Asset Category

 

Fair Value

 

 

Quoted Prices in Active Markets
for Identical
Assets
 (Level 1)

 

 

Significant Other Observable
Inputs
 (Level 2)

 

 

Significant Other Unobservable
Inputs
 (Level 3)

 

 

Not
Subject to
Leveling

 

Mutual Funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income (1)

 

$

27,569

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

27,569

 

Cash

 

 

387

 

 

 

387

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

27,956

 

 

$

387

 

 

$

—

 

 

$

—

 

 

$

27,569

 

 

(1)
This class comprises a diversified portfolio of global investments which seeks fixed income growth and is allocated on a weighted average basis as follows: cash and cash equivalents (70%), bonds (26%) and other assets (4%).

The following table summarizes the fair values of Plan assets by asset category as of December 31, 2024 (in thousands):

Asset Category

 

Fair Value

 

 

Quoted Prices in Active Markets
for Identical
Assets
 (Level 1)

 

 

Significant Other Observable
Inputs
 (Level 2)

 

 

Significant Other Unobservable
Inputs
 (Level 3)

 

 

Not
Subject to
Leveling

 

Mutual Funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balanced (1)

 

$

5,118

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

5,118

 

Fixed income (2)

 

 

21,136

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

21,136

 

Cash

 

 

391

 

 

 

391

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

26,645

 

 

$

391

 

 

$

—

 

 

$

—

 

 

$

26,254

 
(1)
This class comprises a diversified portfolio of global investments which seeks growth from equities and credit assets. It is allocated on a weighted average basis as follows: equities (5%), bonds (90%) and other assets (5%).
(2)
This class comprises a diversified portfolio of global investments which seeks fixed income growth and is allocated on a weighted average basis as follows: bonds (79%) and other assets (21%).
v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Components of Income (Loss) Before Income Tax

Components of the Company’s income (loss) before income taxes for the periods indicated are as follows (in thousands):

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Income (loss) before income taxes:

 

 

 

 

 

 

 

 

Canada

$

(1,250

)

 

$

(7,425

)

 

$

(6,490

)

U.S.

 

(22,890

)

 

 

11,829

 

 

 

38,992

 

Other

 

93,782

 

 

 

74,662

 

 

 

51,246

 

Total

$

69,642

 

 

$

79,066

 

 

$

83,748

 
Components of Income Tax Provision (Benefit)

Components of the Company’s income tax provision (benefit) for the periods indicated are as follows (in thousands):

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Current

 

 

 

 

 

 

 

 

Canada

$

11

 

 

$

43

 

 

$

59

 

U.S.

 

1,733

 

 

 

11,198

 

 

 

14,424

 

Other

 

22,922

 

 

 

19,647

 

 

 

11,113

 

 

 

24,666

 

 

 

30,888

 

 

 

25,596

 

Deferred

 

 

 

 

 

 

 

 

Canada

 

—

 

 

 

—

 

 

 

—

 

U.S.

 

(5,124

)

 

 

(12,612

)

 

 

(12,224

)

Other

 

(3,729

)

 

 

(3,297

)

 

 

(2,502

)

 

 

(8,853

)

 

 

(15,909

)

 

 

(14,726

)

Total

$

15,813

 

 

$

14,979

 

 

$

10,870

 

 
Reconciliation of Statutory Canadian Tax rate to Effective Tax Rate

The Company is incorporated in Canada and therefore uses the Canadian statutory rate for income tax disclosure. Below is a tabular reconciliation of the Canadian federal-only statutory income tax rate to the Company's effective tax rate for the year ended December 31, 2025 in accordance with the amendments in ASU 2023-09:

 

Year Ended

 

 

December 31, 2025

 

 

Amount

 

Percentage

 

Canada statutory tax rate

$

10,446

 

 

15.0

%

Provincial and local income taxes

 

—

 

 

0.0

%

Foreign tax effects

 

 

 

 

United States

 

 

 

 

R&D tax credits

 

(2,410

)

 

(3.5

)%

Effect of rates different than statutory

 

(1,471

)

 

(2.1

)%

Foreign-derived intangible income

 

(740

)

 

(1.0

)%

Base Erosion and Anti-Abuse Tax

 

1,549

 

 

2.2

%

Disallowed compensation

 

1,896

 

 

2.7

%

Return to provision adjustments

 

677

 

 

1.0

%

Other

 

640

 

 

0.9

%

United Kingdom

 

 

 

 

UK patent box

 

(6,652

)

 

(9.6

)%

Effect of rates different than statutory

 

4,155

 

 

6.0

%

Pillar 2

 

1,031

 

 

1.5

%

Other

 

22

 

 

0.0

%

Germany

 

 

 

 

Trade tax

 

4,162

 

 

6.0

%

Other

 

(105

)

 

(0.1

)%

China

 

 

 

 

Effect of rates different than statutory

 

1,695

 

 

2.4

%

Withholding taxes

 

1,144

 

 

1.6

%

Other

 

63

 

 

0.1

%

Other foreign jurisdictions

 

224

 

 

0.3

%

Effect of cross-border tax laws

 

—

 

 

0.0

%

Tax credits

 

—

 

 

0.0

%

Changes in valuation allowances

 

(145

)

 

(0.2

)%

Nontaxable or nondeductible items

 

 

 

 

Other

 

356

 

 

0.5

%

Changes in unrecognized tax benefits

 

(704

)

 

(1.0

)%

Other adjustments

 

 

 

 

Withholding and Other taxes

 

(20

)

 

(0.0

)%

Effective tax rate

$

15,813

 

 

22.7

%

 

Below is a reconciliation of the statutory Canadian federal plus provincial tax rate to the effective tax rate related to income before income taxes for the periods indicated is as follows (in thousands, except percentage data), as presented in prior period financial statements:

 

Year Ended December 31,

 

 

2024

 

 

2023

 

Statutory Canadian tax rate

 

29.00

%

 

 

29.00

%

Expected income tax provision at Canadian statutory tax rate

$

22,929

 

 

$

24,287

 

U.S. state income taxes, net

 

(168

)

 

 

860

 

U.K. patent box

 

(3,982

)

 

 

(4,247

)

Foreign-derived intangible income

 

(3,015

)

 

 

(4,500

)

International tax rate differences

 

(2,622

)

 

 

(4,804

)

Tax credits

 

(2,590

)

 

 

(3,602

)

Change in valuation allowance

 

1,930

 

 

 

2,068

 

Disallowed compensation

 

1,678

 

 

 

2,571

 

Withholding and other taxes

 

854

 

 

 

300

 

Windfall benefit from share-based compensation

 

(844

)

 

 

(1,685

)

Transaction costs and permanent differences

 

360

 

 

 

423

 

Uncertain tax positions

 

244

 

 

 

90

 

Provision to return differences

 

231

 

 

 

(1,056

)

Acquisition contingent consideration adjustments

 

(81

)

 

 

—

 

Statutory tax rate changes

 

55

 

 

 

165

 

Reported income tax provision

$

14,979

 

 

$

10,870

 

Effective tax rate

 

18.9

%

 

 

13.0

%
Significant Components of Deferred Tax Assets and Liabilities Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2025 and December 31, 2024 are as follows (in thousands):

 

December 31,

 

 

2025

 

 

2024

 

Deferred tax assets:

 

 

 

 

 

Capitalized R&D

$

40,043

 

 

$

34,777

 

Inventories

 

16,270

 

 

 

15,451

 

Losses

 

13,456

 

 

 

12,606

 

Compensation related deductions

 

7,827

 

 

 

9,323

 

Operating lease liabilities

 

8,703

 

 

 

9,120

 

Tax credits

 

4,821

 

 

 

3,260

 

Deferred tangible equity unit financing fee

 

3,715

 

 

 

—

 

Business interest expense

 

55

 

 

 

1,483

 

Other

 

1,922

 

 

 

974

 

Warranty

 

665

 

 

 

913

 

Total deferred tax assets

 

97,477

 

 

 

87,907

 

Valuation allowance on deferred tax assets

 

(23,212

)

 

 

(18,594

)

Net deferred tax assets

$

74,265

 

 

$

69,313

 

Deferred tax liabilities:

 

 

 

 

 

Amortization

$

(43,771

)

 

$

(39,061

)

Operating lease right-of-use assets

 

(7,831

)

 

 

(8,110

)

Depreciation

 

(5,879

)

 

 

(6,307

)

Deferred revenue

 

(7,495

)

 

 

(6,041

)

Total deferred tax liabilities

$

(64,976

)

 

$

(59,519

)

Net deferred tax assets (liabilities)

$

9,289

 

 

$

9,794

 

 
Schedule of Income Taxes Paid Net of Refunds

Income taxes paid, net of refunds received, were as follows:

 

Year Ended

 

 

December 31, 2025

 

Federal - Canada

$

—

 

Provincial - Canada

 

—

 

Foreign

 

36,725

 

 

 

 

Total

$

36,725

 

 

 

 

Income taxes paid (net of refunds) exceeded 5 percent of total income taxes paid (net of refunds) in the following jurisdictions:

 

 

 

 

 

Foreign:

 

 

Germany corporate income taxes

$

12,653

 

Germany trade taxes

 

9,893

 

China

 

5,257

 

United Kingdom

 

3,652

 

United States - federal taxes

 

814

 

United States - state taxes

 

484

 
Reconciliation of Total Amounts of Unrecognized Tax Benefits

The reconciliation of the total amounts of unrecognized tax benefits is as follows (in thousands):

Balance at December 31, 2022

$

4,249

 

Additions based on tax positions related to the current year

 

561

 

Additions for tax positions of prior years

 

47

 

Reductions to tax positions of prior years

 

(22

)

Reductions to tax positions resulting from a lapse of the applicable statute of limitations

 

(492

)

Settlements with tax authorities

 

—

 

Balance at December 31, 2023

 

4,343

 

Additions based on tax positions related to the current year

 

949

 

Additions for tax positions of prior years

 

204

 

Reductions to tax positions of prior years

 

(42

)

Reductions to tax positions resulting from a lapse of the applicable statute of limitations

 

(615

)

Settlements with tax authorities

 

—

 

Balance at December 31, 2024

 

4,839

 

Additions based on tax positions related to the current year

 

697

 

Additions for tax positions of prior years

 

70

 

Reductions to tax positions of prior years

 

(101

)

Reductions to tax positions resulting from a lapse of the applicable statute of limitations

 

(1,131

)

Settlements with tax authorities

 

—

 

Balance at December 31, 2025

$

4,374

 

 
Income Tax Returns to be Reviewed

The Company’s income tax returns may be reviewed by tax authorities in the following countries for the following periods under the appropriate statute of limitations:

United States

2019 - Present

Canada

2021 - Present

United Kingdom

2024 - Present

Germany

2021 - Present

Czech Republic

2022 - Present

China

2015 - Present

Japan

2020 - Present
v3.25.4
Restructuring Acquisition and Related Costs (Tables)
 12 Months Ended
Dec. 31, 2025
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring, Acquisition and Related Costs

The following table summarizes restructuring, acquisition and related costs recorded in the accompanying consolidated statements of operations for the periods indicated (in thousands):

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

2025 restructuring

$

14,021

 

 

$

—

 

 

$

—

 

2024 restructuring

 

5,698

 

 

 

10,486

 

 

 

—

 

2022 restructuring

 

—

 

 

 

—

 

 

 

8,961

 

2020 restructuring

 

(3,595

)

 

 

—

 

 

 

2,853

 

Total restructuring related charges

 

16,124

 

 

 

10,486

 

 

 

11,814

 

Acquisition and related charges

 

6,528

 

 

 

3,223

 

 

 

1,000

 

Total restructuring, acquisition and related costs

$

22,652

 

 

$

13,709

 

 

$

12,814

 
Summary of Restructuring Charges by Reportable Segment

The following table summarizes restructuring costs associated with the 2025 restructuring program by reportable segment (in thousands):

 

Year Ended December 31,

 

 

Cumulative Costs as of

 

 

2025

 

 

December 31, 2025

 

Automation Enabling Technologies

$

3,269

 

 

$

3,269

 

Medical Solutions

 

7,325

 

 

 

7,325

 

Unallocated costs

 

3,427

 

 

 

3,427

 

Total

$

14,021

 

 

$

14,021

 

The following table summarizes restructuring costs associated with the 2024 restructuring program by reportable segment (in thousands):

 

Year Ended December 31,

 

 

Cumulative Costs as of

 

 

2025

 

2024

 

 

December 31, 2025

 

Automation Enabling Technologies

$

1,390

 

$

3,198

 

 

$

4,588

 

Medical Solutions

 

4,276

 

 

6,769

 

 

 

11,045

 

Unallocated costs

 

32

 

 

519

 

 

 

551

 

Total

$

5,698

 

$

10,486

 

 

$

16,184

 

The following table summarizes restructuring costs associated with the 2022 restructuring program by reportable segment (in thousands):

 

Year Ended December 31,

 

 

Cumulative Costs as of

 

 

2023

 

 

December 31, 2025

 

Automation Enabling Technologies

$

6,771

 

 

$

8,129

 

Medical Solutions

 

1,359

 

 

 

1,415

 

Unallocated costs

 

831

 

 

 

831

 

Total

$

8,961

 

 

$

10,375

 

 

The following table summarizes restructuring costs associated with the 2020 restructuring program by reportable segment (in thousands):

 

Year Ended December 31,

 

 

Cumulative Costs as of

 

 

2025

 

 

2024

 

 

2023

 

 

December 31, 2025

 

Automation Enabling Technologies

$

(3,595

)

 

$

—

 

 

$

2,853

 

 

$

10,232

 

Medical Solutions

 

—

 

 

 

—

 

 

 

—

 

 

 

2,716

 

Unallocated costs

 

—

 

 

 

—

 

 

 

—

 

 

 

173

 

Total

$

(3,595

)

 

$

—

 

 

$

2,853

 

 

$

13,121

 
Summary of Accrual Activities by Components Related to Company's Restructuring Programs

The following table summarizes the accrual activities, by component, related to the Company’s restructuring programs recorded in the accompanying consolidated balance sheets (in thousands):

 

Total

 

 

Employee Related

 

 

Facility Related

 

 

Facility Sale

 

 

Other

 

Balance at December 31, 2023

$

2,850

 

 

$

1,038

 

 

$

1,680

 

 

$

—

 

 

$

132

 

Restructuring charges

 

10,486

 

 

 

8,165

 

 

 

2,034

 

 

 

—

 

 

 

287

 

Cash payments

 

(5,898

)

 

 

(3,469

)

 

 

(2,007

)

 

 

—

 

 

 

(422

)

Non-cash write-offs and other adjustments

 

(687

)

 

 

(44

)

 

 

(646

)

 

 

—

 

 

 

3

 

Balance at December 31, 2024

 

6,751

 

 

 

5,690

 

 

 

1,061

 

 

 

—

 

 

 

—

 

Restructuring charges

 

16,124

 

 

 

15,562

 

 

 

2,891

 

 

 

(4,077

)

 

 

1,748

 

Cash payments

 

(8,595

)

 

 

(12,012

)

 

 

(633

)

 

 

5,537

 

 

 

(1,487

)

Non-cash write-offs and other adjustments(1)

 

(3,698

)

 

 

649

 

 

 

(2,626

)

 

 

(1,460

)

 

 

(261

)

Balance at December 31, 2025

$

10,582

 

 

$

9,889

 

 

$

693

 

 

$

—

 

 

$

—

 
(1)
Non-cash charges primarily related to accelerated depreciation on a facility.
v3.25.4
Segment Information (Tables)
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Results of Operations, Depreciation and Amortization Expenses, Accounts Receivable and Inventory by Reportable Segments

Results of operations, depreciation and amortization expenses, accounts receivable and inventories by reportable segments for the periods indicated were as follows (in thousands):

 

Year Ended December 31, 2025

 

 

Automation Enabling Technologies

 

 

Medical Solutions

 

 

Total

 

Revenue

$

500,835

 

 

$

479,765

 

 

$

980,600

 

Cost of revenue

 

255,761

 

 

 

269,356

 

 

 

 

Amortization of purchased intangible assets

 

5,568

 

 

 

10,708

 

 

 

 

Gross profit

 

239,506

 

 

 

199,701

 

 

 

439,207

 

Research and development and engineering

 

37,805

 

 

 

58,342

 

 

 

 

Selling, general and administrative

 

76,316

 

 

 

60,034

 

 

 

 

Amortization of purchased intangible assets

 

9,772

 

 

 

17,705

 

 

 

 

Restructuring, acquisition, and related costs

 

1,082

 

 

 

12,448

 

 

 

 

Segment operating income

 

114,531

 

 

 

51,172

 

 

 

165,703

 

Unallocated costs

 

—

 

 

 

—

 

 

 

(71,691

)

Interest income (expense), net

 

—

 

 

 

—

 

 

 

(21,472

)

Other income (expense), net

 

—

 

 

 

—

 

 

 

(2,898

)

Income before income taxes

$

114,531

 

 

$

51,172

 

 

$

69,642

 

 

 

Year Ended December 31, 2024

 

 

Automation Enabling Technologies

 

 

Medical Solutions

 

 

Total

 

Revenue

$

490,620

 

 

$

458,625

 

 

$

949,245

 

Cost of revenue

 

249,364

 

 

 

260,176

 

 

 

 

Amortization of purchased intangible assets

 

6,281

 

 

 

8,492

 

 

 

 

Gross profit

 

234,975

 

 

 

189,957

 

 

 

424,932

 

Research and development and engineering

 

39,026

 

 

 

57,110

 

 

 

 

Selling, general and administrative

 

75,423

 

 

 

53,798

 

 

 

 

Amortization of purchased intangible assets

 

11,207

 

 

 

14,587

 

 

 

 

Restructuring, acquisition, and related costs

 

2,916

 

 

 

6,930

 

 

 

 

Segment operating income

 

106,403

 

 

 

57,532

 

 

 

163,935

 

Unallocated costs

 

—

 

 

 

—

 

 

 

(53,351

)

Interest income (expense), net

 

—

 

 

 

—

 

 

 

(31,489

)

Other income (expense), net

 

—

 

 

 

—

 

 

 

(29

)

Income before income taxes

$

106,403

 

 

$

57,532

 

 

$

79,066

 

 

 

Year Ended December 31, 2023

 

 

Automation Enabling Technologies

 

 

Medical Solutions

 

 

Total

 

Revenue

$

499,220

 

 

$

382,442

 

 

$

881,662

 

Cost of revenue

 

257,377

 

 

 

206,550

 

 

 

 

Amortization of purchased intangible assets

 

7,045

 

 

 

5,105

 

 

 

 

Gross profit

 

234,798

 

 

 

170,787

 

 

 

405,585

 

Research and development and engineering

 

43,024

 

 

 

49,440

 

 

 

 

Selling, general and administrative

 

72,860

 

 

 

49,227

 

 

 

 

Amortization of purchased intangible assets

 

12,942

 

 

 

7,503

 

 

 

 

Restructuring, acquisition, and related costs

 

9,691

 

 

 

1,359

 

 

 

 

Segment operating income

 

96,281

 

 

 

63,258

 

 

 

159,539

 

Unallocated costs

 

—

 

 

 

—

 

 

 

(49,043

)

Interest income (expense), net

 

—

 

 

 

—

 

 

 

(25,818

)

Other income (expense), net

 

—

 

 

 

—

 

 

 

(930

)

Income before income taxes

$

96,281

 

 

$

63,258

 

 

$

83,748

 

 

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Depreciation and Amortization Expenses

 

 

 

 

 

 

 

 

Automation Enabling Technologies

$

22,441

 

 

$

23,873

 

 

$

26,680

 

Medical Solutions

 

37,960

 

 

 

29,818

 

 

 

18,578

 

Unallocated

 

1,531

 

 

 

1,872

 

 

 

1,354

 

Total

$

61,932

 

 

$

55,563

 

 

$

46,612

 

 

 

 

December 31,

 

 

2025

 

 

2024

 

Accounts Receivable

 

 

 

 

 

Automation Enabling Technologies

$

76,685

 

 

$

70,829

 

Medical Solutions

 

108,195

 

 

 

80,197

 

Total accounts receivable

$

184,880

 

 

$

151,026

 

Inventories

 

 

 

 

 

Automation Enabling Technologies

$

110,205

 

 

$

89,009

 

Medical Solutions

 

78,079

 

 

 

55,597

 

Total inventories

$

188,284

 

 

$

144,606

 

Total segment assets

$

373,164

 

 

$

295,632

 

 

 

December 31,

 

 

2025

 

 

2024

 

Total Assets

 

 

 

 

 

Total segment assets

$

373,164

 

 

$

295,632

 

Cash and cash equivalents

 

380,871

 

 

 

113,989

 

Prepaid income taxes and income taxes receivable

 

9,382

 

 

 

8,076

 

Prepaid expenses and other current assets

 

19,184

 

 

 

15,951

 

Property, plant and equipment, net

 

118,491

 

 

 

113,135

 

Operating lease assets

 

41,697

 

 

 

42,908

 

Deferred tax assets

 

27,381

 

 

 

22,887

 

Other assets

 

8,812

 

 

 

5,991

 

Intangible assets, net

 

180,776

 

 

 

185,844

 

Goodwill

 

647,348

 

 

 

584,098

 

Total

$

1,807,106

 

 

$

1,388,511

 
Schedule of Geographic Revenue

The Company aggregates geographic revenue based on the customer location where products are shipped. Revenue from these customers is summarized for the periods indicated as follows (in thousands, except percentage data):

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

 

Revenue

 

 

% of Total

 

 

Revenue

 

 

% of Total

 

 

Revenue

 

 

% of Total

 

United States

$

519,007

 

 

 

52.9

%

 

$

487,114

 

 

 

51.3

%

 

$

418,265

 

 

 

47.4

%

Germany

 

114,647

 

 

 

11.7

 

 

 

123,244

 

 

 

13.0

 

 

 

128,229

 

 

 

14.5

 

Rest of Europe

 

137,406

 

 

 

14.0

 

 

 

128,871

 

 

 

13.6

 

 

 

137,027

 

 

 

15.6

 

China

 

93,201

 

 

 

9.5

 

 

 

84,562

 

 

 

8.9

 

 

 

73,444

 

 

 

8.3

 

Rest of Asia-Pacific

 

97,034

 

 

 

9.9

 

 

 

107,054

 

 

 

11.3

 

 

 

105,350

 

 

 

12.0

 

Other

 

19,305

 

 

 

2.0

 

 

 

18,400

 

 

 

1.9

 

 

 

19,347

 

 

 

2.2

 

Total

$

980,600

 

 

 

100.0

%

 

$

949,245

 

 

 

100.0

%

 

$

881,662

 

 

 

100.0

%

 
Summary of Long-lived Assets

Long-lived assets consist of property, plant and equipment, net, and are aggregated based on the location of the assets. A summary of these long-lived assets is as follows (in thousands):

 

December 31,

 

 

2025

 

 

2024

 

United States

$

23,930

 

 

$

25,207

 

Germany

 

32,303

 

 

 

31,684

 

U.K.

 

34,420

 

 

 

34,078

 

Czech Republic

 

17,696

 

 

 

15,345

 

China

 

7,593

 

 

 

6,561

 

Rest of World

 

2,549

 

 

 

260

 

Total

$

118,491

 

 

$

113,135

 
Revenue By End Market

The Company primarily operates in two end markets: the medical market and the advanced industrial market. Revenue by end market was approximately as follows:

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Medical

 

53

%

 

 

55

%

 

 

54

%

Advanced Industrial

 

47

%

 

 

45

%

 

 

46

%

Total

 

100

%

 

 

100

%

 

 

100

%
v3.25.4
Summary of Significant Accounting Policies - Additional Information (Details)
 12 Months Ended
Dec. 31, 2025
Maximum  
Significant Accounting Policies [Line Items]  
Cash equivalents original maturity period 3 months
Maximum | Buildings and improvements  
Significant Accounting Policies [Line Items]  
Property, plant and equipment, estimated useful lives 40 years
Maximum | Machinery and Equipment  
Significant Accounting Policies [Line Items]  
Property, plant and equipment, estimated useful lives 10 years
Minimum | Buildings and improvements  
Significant Accounting Policies [Line Items]  
Property, plant and equipment, estimated useful lives 10 years
Minimum | Machinery and Equipment  
Significant Accounting Policies [Line Items]  
Property, plant and equipment, estimated useful lives 3 years
v3.25.4
Changes in Allowance for Doubtful Accounts (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]      
Balance at beginning of year $ 505 $ 571 $ 995
Addition to credit loss expense 897 223 175
Write-offs, net of recoveries of amounts previously reserved (72) (288) (612)
Exchange rate changes 11 (1) 13
Balance at end of year $ 1,341 $ 505 $ 571
v3.25.4
Revenue - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Revenue [Line Items]    
Incremental direct costs of obtaining a contract, practical expedient true  
Effects of a financing component, practical expedient true  
Remaining performance obligation for contracts, optional exemption true  
Contract liabilities $ 11.1 $ 5.9
Revenue recognized $ 4.5  
Warranties    
Revenue [Line Items]    
Standard product warranty description The Company generally provides warranties for its products. The standard warranty period is typically 12 months to 36 months. The standard warranty period for product sales is accounted for under the provisions of ASC 450, “Contingencies,” as the Company has the ability to ascertain the likelihood of the liability and can reasonably estimate the amount of the liability.  
Minimum | Warranties    
Revenue [Line Items]    
Standard warranty period on products 12 months  
Maximum | Warranties    
Revenue [Line Items]    
Standard warranty period on products 36 months  
Maximum | Professional Services    
Revenue [Line Items]    
Percentage of revenue for professional services 3.00%  
Duration of professional services performed under customer contract 1 month  
v3.25.4
Revenue - Schedule of Net Revenues Disaggregated by the Capabilities of the Underlying Products and Technologies (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue [Line Items]      
Total Revenue $ 980,600 $ 949,245 $ 881,662
Automation Enabling Technologies      
Disaggregation of Revenue [Line Items]      
Total Revenue 500,835 490,620 499,220
Automation Enabling Technologies | Precision Manufacturing      
Disaggregation of Revenue [Line Items]      
Total Revenue 182,258 202,303 225,750
Automation Enabling Technologies | Robotics and Automation      
Disaggregation of Revenue [Line Items]      
Total Revenue 318,577 288,317 273,470
Medical Solutions      
Disaggregation of Revenue [Line Items]      
Total Revenue 479,765 458,625 382,442
Medical Solutions | Precision Medicine      
Disaggregation of Revenue [Line Items]      
Total Revenue 237,321 249,872 178,840
Medical Solutions | Advanced Surgery      
Disaggregation of Revenue [Line Items]      
Total Revenue $ 242,444 $ 208,753 $ 203,602
v3.25.4
Business Combinations - 2025 Acquisitions - Additional Information (Details)
 3 Months Ended 9 Months Ended 12 Months Ended
Apr. 08, 2025
USD ($)
Apr. 08, 2025
EUR (€)
Sep. 26, 2025
USD ($)
Dec. 31, 2025
USD ($)
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Business Acquisition [Line Items]              
Intangible assets $ 33,203,000            
Goodwill       $ 647,348,000 $ 647,348,000 $ 584,098,000  
Amortization of purchased intangible assets         27,477,000 $ 25,794,000 $ 20,445,000
Keonn Technologies, S.L              
Business Acquisition [Line Items]              
Business acquisition, date of acquisition Apr. 08, 2025 Apr. 08, 2025          
Percentage of shares acquired 100.00%            
Estimated total purchase consideration $ 75,065,000            
Business combination measurement period for estimated fair value of certain assets and liabilities subject to change 1 year 1 year          
Intangible assets $ 33,203,000            
Goodwill 43,192,000            
Revenues         31,700,000    
Loss before income tax         $ 1,900,000    
Amortization of purchased intangible assets       $ 6,700,000      
Increase in identifiable intangible assets     $ 900,000        
Decrease in goodwill     1,000,000        
Increase in deferred tax liabilities     $ 200,000        
Keonn Technologies, S.L | Minimum              
Business Acquisition [Line Items]              
Contingent consideration payable | €   € 0          
Keonn Technologies, S.L | Maximum              
Business Acquisition [Line Items]              
Contingent consideration payable $ 21,900,000 € 20,000,000          
v3.25.4
Business Combinations - Summary of Estimated Total Purchase Consideration (Details) (Details) - Keonn Technologies, S.L
$ in Thousands
Apr. 08, 2025
USD ($)
Business Combination [Line Items]  
Cash consideration $ 68,336
Deferred consideration 2,192
Estimated fair value of contingent consideration 4,537
Estimated total purchase consideration $ 75,065
v3.25.4
Business Combinations - 2024 Acquisitions - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 02, 2024
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Apr. 08, 2025
Business Acquisition [Line Items]          
Increase in inventory   $ 36,101 $ (4,781) $ (11,366)  
Intangible assets         $ 33,203
Goodwill   647,348 584,098    
Amortization of inventory fair value adjustments     2,777    
Amortization of purchased intangible assets   $ 27,477 25,794 $ 20,445  
Motion Solutions Parent Corp.          
Business Acquisition [Line Items]          
Date of acquisition Jan. 02, 2024        
Total purchase price, net of cash acquired $ 192,000        
Purchase price 191,976        
Intangible assets 83,000        
Goodwill $ 106,761        
Revenues     82,400    
Income before income taxes     200    
Amortization of inventory fair value adjustments     2,800    
Amortization of purchased intangible assets     $ 13,000    
v3.25.4
Business Combinations - Acquisition Costs - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Business Acquisition [Line Items]      
Recognized acquisition costs $ 6,528,000 $ 3,223,000 $ 1,000,000
Current Year Closed Acquisition      
Business Acquisition [Line Items]      
Recognized acquisition costs $ 2,200,000 $ 1,000,000 $ 0
v3.25.4
Business Combinations - Summary of Fair Values of Assets Acquired and Liabilities Assumed Purchase Price Allocation (Details)
$ in Thousands, € in Millions
Apr. 08, 2025
USD ($)
Jan. 02, 2024
USD ($)
Dec. 31, 2025
USD ($)
Dec. 31, 2025
EUR (€)
Apr. 08, 2025
EUR (€)
Dec. 31, 2024
USD ($)
Business Combination [Line Items]            
Intangible assets $ 33,203          
Goodwill     $ 647,348     $ 584,098
Keonn Technologies, S.L            
Business Combination [Line Items]            
Cash 4,045          
Accounts receivable 1,977          
Inventory 5,377          
Property, plant and equipment 1,401          
Operating lease assets 3,124          
Intangible assets 33,203          
Goodwill 43,192          
Other assets 1,412          
Total assets acquired 93,731          
Accounts payable 1,593          
Operating lease liabilities 3,124          
Debt 2,504          
Deferred tax liabilities 7,369          
Other liabilities 4,076          
Total liabilities assumed 18,666          
Total assets acquired, net of liabilities assumed 75,065          
Less: cash acquired 4,045          
Less: contingent consideration 4,500   $ 5,700 € 4.9 € 4.1  
Purchase price, net of cash acquired $ 71,020          
Motion Solutions Parent Corp.            
Business Combination [Line Items]            
Cash   $ 776        
Accounts receivable   8,515        
Inventory   13,940        
Property, plant and equipment   3,126        
Operating lease assets   8,076        
Intangible assets   83,000        
Goodwill   106,761        
Other assets   1,002        
Total assets acquired   225,196        
Accounts payable   5,305        
Operating lease liabilities   8,514        
Deferred tax liabilities   18,171        
Other liabilities   1,230        
Total liabilities assumed   33,220        
Total assets acquired, net of liabilities assumed   191,976        
Less: cash acquired   776        
Purchase price, net of cash acquired   $ 191,200        
v3.25.4
Business Combinations - Fair Value of Intangible Assets (Details) - USD ($)
$ in Thousands
Apr. 08, 2025
Jan. 02, 2024
Acquired Finite Lived Intangible Assets [Line Items]    
Estimated Fair Value $ 33,203  
Keonn Technologies, S.L [Member]    
Acquired Finite Lived Intangible Assets [Line Items]    
Estimated Fair Value 33,203  
Motion Solutions Parent Corp.    
Acquired Finite Lived Intangible Assets [Line Items]    
Estimated Fair Value   $ 83,000
Developed Technologies    
Acquired Finite Lived Intangible Assets [Line Items]    
Estimated Fair Value $ 9,753  
Amortization Period 9 years  
Developed Technologies | Motion Solutions Parent Corp.    
Acquired Finite Lived Intangible Assets [Line Items]    
Estimated Fair Value   $ 34,400
Amortization Period   7 years
Customer Relationships    
Acquired Finite Lived Intangible Assets [Line Items]    
Estimated Fair Value $ 22,354  
Amortization Period 9 years  
Customer Relationships | Motion Solutions Parent Corp.    
Acquired Finite Lived Intangible Assets [Line Items]    
Estimated Fair Value   $ 43,100
Amortization Period   13 years
Trade Names    
Acquired Finite Lived Intangible Assets [Line Items]    
Estimated Fair Value $ 1,096  
Amortization Period 14 years  
Backlog | Motion Solutions Parent Corp.    
Acquired Finite Lived Intangible Assets [Line Items]    
Estimated Fair Value   $ 5,500
Amortization Period   1 year
v3.25.4
Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accumulated Other Comprehensive Income Loss [Line Items]      
Beginning Balance $ 745,698    
Ending Balance 1,314,287 $ 745,698  
Total Accumulated Other Comprehensive Income (Loss)      
Accumulated Other Comprehensive Income Loss [Line Items]      
Beginning Balance (29,921) (24,038) $ (32,009)
Other comprehensive income (loss) 26,109 (6,764) 6,951
Amounts reclassified from accumulated other comprehensive loss 808 881 1,020
Ending Balance (3,004) (29,921) (24,038)
Cumulative Translation Adjustments      
Accumulated Other Comprehensive Income Loss [Line Items]      
Beginning Balance (23,686) (16,604) (24,427)
Other comprehensive income (loss) 27,158 (7,082) 7,823
Ending Balance 3,472 (23,686) (16,604)
Pension Liability Adjustments      
Accumulated Other Comprehensive Income Loss [Line Items]      
Beginning Balance (6,235) (7,434) (7,582)
Other comprehensive income (loss) (1,049) 318 (872)
Amounts reclassified from accumulated other comprehensive loss 808 881 1,020
Ending Balance $ (6,476) $ (6,235) $ (7,434)
v3.25.4
Summary of Changes in Goodwill (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
Balance at beginning of the year $ 584,098
Goodwill from current year acquisitions 43,192
Effect of foreign exchange rate changes 20,058
Balance at end of the year $ 647,348
v3.25.4
Goodwill By Reportable Segment (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Goodwill [Line Items]    
Goodwill $ 798,577 $ 735,327
Accumulated impairment of goodwill (151,229) (151,229)
Total 647,348 584,098
Medical Solutions    
Goodwill [Line Items]    
Goodwill 351,264 295,347
Accumulated impairment of goodwill (31,722) (31,722)
Total 319,542 263,625
Automation Enabling Technologies    
Goodwill [Line Items]    
Goodwill 447,313 439,980
Accumulated impairment of goodwill (119,507) (119,507)
Total $ 327,806 $ 320,473
v3.25.4
Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Schedule of Intangible Assets Disclosure [Line Items]    
Amortizable intangible assets, gross carrying amount $ 557,980 $ 507,390
Amortizable intangible assets, accumulated amortization (390,231) (334,573)
Amortizable intangible assets, net carrying amount $ 167,749 $ 172,817
Amortizable intangible assets, weighted average remaining life (Years) 10 years 11 years 1 month 6 days
Non-amortizable intangible assets $ 13,027 $ 13,027
Gross carrying amount 571,007 520,417
Net carrying amount 180,776 185,844
Patents and Developed Technologies    
Schedule of Intangible Assets Disclosure [Line Items]    
Amortizable intangible assets, gross carrying amount 235,851 218,867
Amortizable intangible assets, accumulated amortization (180,798) (159,041)
Amortizable intangible assets, net carrying amount $ 55,053 $ 59,826
Amortizable intangible assets, weighted average remaining life (Years) 7 years 7 years 7 months 6 days
Customer Relationships    
Schedule of Intangible Assets Disclosure [Line Items]    
Amortizable intangible assets, gross carrying amount $ 296,868 $ 265,156
Amortizable intangible assets, accumulated amortization (191,037) (158,938)
Amortizable intangible assets, net carrying amount $ 105,831 $ 106,218
Amortizable intangible assets, weighted average remaining life (Years) 11 years 8 months 12 days 13 years 2 months 12 days
Trademarks and Trade Names    
Schedule of Intangible Assets Disclosure [Line Items]    
Amortizable intangible assets, gross carrying amount $ 25,261 $ 23,367
Amortizable intangible assets, accumulated amortization (18,396) (16,594)
Amortizable intangible assets, net carrying amount $ 6,865 $ 6,773
Amortizable intangible assets, weighted average remaining life (Years) 9 years 3 months 18 days 9 years 2 months 12 days
v3.25.4
Amortization Expense of Intangible Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]      
Amortization expense – cost of revenue $ 16,276 $ 14,773 $ 12,150
Amortization expense - operating expenses 27,477 25,794 20,445
Total amortization expense $ 43,753 $ 40,567 $ 32,595
v3.25.4
Estimated Future Amortization Expense (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Finite Lived Intangible Assets [Line Items]    
2026 $ 38,155  
2027 31,381  
2028 26,532  
2029 20,056  
2030 14,893  
Thereafter 36,732  
Amortizable intangible assets, net carrying amount 167,749 $ 172,817
Cost of Revenue    
Finite Lived Intangible Assets [Line Items]    
2026 15,044  
2027 12,118  
2028 10,311  
2029 7,440  
2030 4,764  
Thereafter 5,376  
Amortizable intangible assets, net carrying amount 55,053  
Operating Expenses    
Finite Lived Intangible Assets [Line Items]    
2026 23,111  
2027 19,263  
2028 16,221  
2029 12,616  
2030 10,129  
Thereafter 31,356  
Amortizable intangible assets, net carrying amount $ 112,696  
v3.25.4
Goodwill, Intangible Assets and Impairment Charges - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Goodwill [Line Items]      
Impairment of goodwill and intangible assets $ 0 $ 0 $ 0
v3.25.4
Fair Value Measurements - Business Combination Contingent Consideration - Additional Information (Details)
€ in Millions
Dec. 31, 2025
EUR (€)
Dec. 31, 2025
USD ($)
Apr. 08, 2025
EUR (€)
Apr. 08, 2025
USD ($)
Dec. 31, 2024
USD ($)
Business Acquisition [Line Items]          
Fair value, liabilities, Level 2 to Level 1 transfers, amount | $   $ 0     $ 0
Keonn Technologies, S.L          
Business Acquisition [Line Items]          
Fair value of contingent consideration € 4.9 $ 5,700,000 € 4.1 $ 4,500,000  
Undiscounted low range of contingent consideration | €     0.0    
Undiscounted high range of contingent consideration     € 20.0 $ 21,900,000  
v3.25.4
Fair Values of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value Measurements Recurring - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Assets    
Assets, fair value $ 291,739 $ 1,226
Liabilities    
Liabilities, fair value 5,890 1,458
Prepaid Expenses and Other Current Assets    
Assets    
Foreign currency forward contracts 110 1,226
Accrued Expenses and Other Current Liabilities    
Liabilities    
Contingent considerations - Current 4,465 57
Contingent considerations - Long-term 1,291  
Foreign currency forward contracts 134 1,401
Quoted Prices in Active Markets for Identical Assets (Level 1)    
Assets    
Assets, fair value 291,629  
Significant Other Observable Inputs (Level 2)    
Assets    
Assets, fair value 110 1,226
Liabilities    
Liabilities, fair value 134 1,401
Significant Other Observable Inputs (Level 2) | Prepaid Expenses and Other Current Assets    
Assets    
Foreign currency forward contracts 110 1,226
Significant Other Observable Inputs (Level 2) | Accrued Expenses and Other Current Liabilities    
Liabilities    
Foreign currency forward contracts 134 1,401
Significant Other Unobservable Inputs (Level 3)    
Liabilities    
Liabilities, fair value 5,756 57
Significant Other Unobservable Inputs (Level 3) | Accrued Expenses and Other Current Liabilities    
Liabilities    
Contingent considerations - Current 4,465 $ 57
Contingent considerations - Long-term 1,291  
Money market funds    
Assets    
Cash equivalents 291,629  
Money market funds | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Assets    
Cash equivalents $ 291,629  
v3.25.4
Fair Value Measurements - Changes in Fair Value of Level 3 Contingent Considerations (Details) - Significant Other Unobservable Inputs (Level 3)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]  
Beginning balance $ 57
Acquisition of Keonn 4,537
Fair value adjustments 830
Effect of foreign exchange rates 332
Ending balance $ 5,756
v3.25.4
Fair Value Measurements - Schedule Of Qualitative Information Associated With Fair Value Measurement of Level 3 Liabilities (Details) - Keonn Technologies, S.L
$ in Thousands, € in Millions
 12 Months Ended
Dec. 31, 2025
EUR (€)
Dec. 31, 2025
USD ($)
Apr. 08, 2025
EUR (€)
Apr. 08, 2025
USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Estimated fair value of contingent consideration € 4.9 $ 5,700 € 4.1 $ 4,500
Level 3        
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]        
Estimated fair value of contingent consideration   $ 5,692    
Valuation Technique Monte Carlo method      
Percentage applied, Gross profit premium 9.30%      
Percentage applied, Revenue risk premium 8.40%      
Percentage applied, Gross profit volatility 38.50%      
Percentage applied, Revenue volatility 35.00%      
Percentage applied, Credit spread 1.90%      
v3.25.4
Foreign Currency Contracts - Additional Information (Details) - Foreign Currency Forward Contracts - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Derivative [Line Items]      
Notional amount of foreign currency forward contracts $ 147,700,000 $ 187,400,000  
Net gain (loss) on foreign currency forward contracts   (200,000)  
Foreign Exchange Transaction Gains (Losses)      
Derivative [Line Items]      
Net gain (loss) on foreign currency forward contracts (2,100,000) $ 4,900,000 $ 2,500,000
Maximum      
Derivative [Line Items]      
Net gain (loss) on foreign currency forward contracts $ (100,000)    
v3.25.4
Computation of Basic and Diluted Earnings per Common Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Numerators:      
Net income $ 53,829 $ 64,087 $ 72,878
Denominators:      
Weighted average common shares outstanding—basic 36,589 35,950 35,844
Dilutive potential common shares 113 174 187
Weighted average common shares outstanding— diluted 36,702 36,124 36,031
Antidilutive potential common shares excluded from above 239 128 99
Earnings per Common Share:      
Basic $ 1.47 $ 1.78 $ 2.03
Diluted $ 1.47 $ 1.77 $ 2.02
v3.25.4
Earnings per Common Share - Additional Information (Details) - shares
shares in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Nov. 12, 2025
Attainment-Based PSUs and Hybrid PSUs [Member]        
Computation Of Earnings Per Share [Line Items]        
Contingently issuable shares excluded from calculation of weighted average common shares outstanding 209 150 104  
Minimum | Tangible Equity Unit (TEU)        
Computation Of Earnings Per Share [Line Items]        
Shares issued upon conversion of purchase contracts 4,700     4,700
v3.25.4
Inventories (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Inventory Disclosure [Abstract]    
Raw materials $ 123,305 $ 92,198
Work-in-process 32,479 24,719
Finished goods 31,716 27,327
Demo and consigned inventory 784 362
Total inventories $ 188,284 $ 144,606
v3.25.4
Property Plant and Equipment, Net (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Property Plant And Equipment [Line Items]    
Property, plant and equipment, gross $ 251,051 $ 224,911
Accumulated depreciation (132,560) (111,776)
Property, plant and equipment, net 118,491 113,135
Land, Buildings and Improvements    
Property Plant And Equipment [Line Items]    
Property, plant and equipment, gross 103,856 99,217
Machinery and Equipment    
Property Plant And Equipment [Line Items]    
Property, plant and equipment, gross $ 147,195 $ 125,694
v3.25.4
Summary of Depreciation Expense on Property, Plant and Equipment, Including Demo Units and Assets under Finance Leases (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Depreciation expense $ 18,179 $ 14,996 $ 14,017
v3.25.4
Accrued Expenses and Other Current Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Other Liabilities Disclosure [Abstract]        
Accrued compensation and benefits $ 16,405 $ 28,361    
Accrued warranty 4,463 4,805 $ 5,292 $ 5,127
Contract liabilities, current portion 10,945 5,715    
Accrued restructuring 10,251 6,131    
Accrued contingent considerations and earn-outs 4,465 57    
Other 16,969 15,262    
Total $ 63,498 $ 60,331    
v3.25.4
Accrued Warranty (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Product Warranties Disclosures [Abstract]      
Balance at beginning of year $ 4,805 $ 5,292 $ 5,127
Provision charged to cost of revenue 2,250 1,140 2,445
Warranty liabilities acquired from acquisitions   76  
Use of provision (2,674) (1,680) (2,338)
Foreign currency exchange rate changes 82 (23) 58
Balance at end of year $ 4,463 $ 4,805 $ 5,292
v3.25.4
Other Long Term Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Other Liabilities Disclosure [Abstract]    
Finance lease obligations $ 2,348 $ 3,175
Other 4,638 1,316
Total $ 6,986 $ 4,491
v3.25.4
Debt (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Debt Instrument [Line Items]    
Total current portion of long-term debt $ 38,291 $ 4,691
Total long-term debt 212,538 411,949
Total debt 250,829 416,640
Term Loan    
Debt Instrument [Line Items]    
Current portion of long-term debt, Gross 6,242 4,710
Long-term debt, Gross 142,752 65,698
Total debt 148,994  
Tangible Equity Units - Amortizing Notes [Member]    
Debt Instrument [Line Items]    
Current portion of long-term debt, Gross 33,870  
Long-term debt, Gross 76,691  
Term Loan, Revolving Credit Facility and Amortizing Notes [Member]    
Debt Instrument [Line Items]    
Less: unamortized debt issuance costs (1,821) (19)
Less: unamortized debt issuance costs (6,905) (2,500)
Revolving Credit Facility    
Debt Instrument [Line Items]    
Long-term debt, Gross $ 0 $ 348,751
v3.25.4
Tangible Equity Unit ("TEU") Offering Additional Information (Details)
$ / shares in Units, $ in Thousands
Nov. 12, 2025
USD ($)
TradingDays
$ / shares
shares
Feb. 01, 2026
$ / shares
Dec. 31, 2025
shares
Tangible Equity Units Offering [Line Items]      
Number of shares issued | shares 12,650,000    
Aggregate offering | $ $ 632,500    
Net proceeds | $ $ 613,097    
Initial principal amount $ 50    
Number of consecutive trading days | TradingDays 20    
Tangible Equity Units Senior Amortizing Notes      
Tangible Equity Units Offering [Line Items]      
Interest rate 6.50%    
Stated amount, per unit $ 50    
Maturity date Nov. 01, 2028    
Interest rate during period 6.30%    
Cash installment per unit $ 0.8125    
Tangible Equity Units Senior Amortizing Notes | Subsequent Event      
Tangible Equity Units Offering [Line Items]      
Cash installment per unit   $ 0.7132  
Debt Component      
Tangible Equity Units Offering [Line Items]      
Aggregate offering | $ $ 110,561    
Net proceeds | $ $ 107,169    
Initial principal amount $ 8.74    
Tangible Equity Unit (TEU)      
Tangible Equity Units Offering [Line Items]      
Interest rate 6.50%    
Stated amount, per unit $ 50    
Tangible Equity Unit (TEU) | Maximum      
Tangible Equity Units Offering [Line Items]      
Shares issued upon conversion of purchase contracts | shares 5,900,000    
Applicable Market Value $ 134.08    
Tangible Equity Unit (TEU) | Minimum      
Tangible Equity Units Offering [Line Items]      
Shares issued upon conversion of purchase contracts | shares 4,700,000   4,700,000
Applicable Market Value $ 107.26    
v3.25.4
Tangible Equity Unit ("TEU") Offering - Schedule of Proceeds from Issuance Allocated to Equity and Debt Component (Details)
$ / shares in Units, $ in Thousands
Nov. 12, 2025
USD ($)
$ / shares
Tangible Equity Units Offering [Line Items]  
Fair value per unit | $ / shares $ 50
Gross proceeds $ 632,500
Less: Issuance costs 19,403
Net proceeds $ 613,097
Equity Component  
Tangible Equity Units Offering [Line Items]  
Fair value per unit | $ / shares $ 41.26
Gross proceeds $ 521,939
Less: Issuance costs 16,011
Net proceeds $ 505,928
Debt Component  
Tangible Equity Units Offering [Line Items]  
Fair value per unit | $ / shares $ 8.74
Gross proceeds $ 110,561
Less: Issuance costs 3,392
Net proceeds $ 107,169
v3.25.4
Tangible Equity Unit ("TEU") Offering - Schedule Of Applicable Market Value Of Common Stock (Details) - Tangible Equity Unit (TEU)
Nov. 12, 2025
$ / shares
Less than $134.0842 but greater than $107.26  
Tangible Equity Units Offering [Line Items]  
Applicable market value settlement rate $50 divided by applicable market value
Maximum  
Tangible Equity Units Offering [Line Items]  
Applicable Market Value $ 134.08
Maximum | Less than $134.0842 but greater than $107.26  
Tangible Equity Units Offering [Line Items]  
Applicable Market Value 134.0842
Maximum | Less than or equal to $107.26  
Tangible Equity Units Offering [Line Items]  
Applicable Market Value $ 107.26
Settlement rate 0.4662%
Minimum  
Tangible Equity Units Offering [Line Items]  
Applicable Market Value $ 107.26
Minimum | Equal to or greater than $134.0842  
Tangible Equity Units Offering [Line Items]  
Applicable Market Value $ 134.0842
Settlement rate 0.3729%
Minimum | Less than $134.0842 but greater than $107.26  
Tangible Equity Units Offering [Line Items]  
Applicable Market Value $ 107.26
v3.25.4
Tangible Equity Unit ("TEU") Offering - Repayments of Outstanding Principal under Amortizing Notes (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Long Term Debt Maturities Repayments Of Principal [Line Items]    
Total debt $ 250,829 $ 416,640
Amortizing Notes    
Long Term Debt Maturities Repayments Of Principal [Line Items]    
2026 33,870  
2027 37,147  
2028 39,544  
Total debt $ 110,561  
v3.25.4
Debt - Additional Information (Details)
 1 Months Ended 12 Months Ended
Nov. 05, 2025
USD ($)
Jun. 27, 2025
USD ($)
Sep. 30, 2027
USD ($)
Sep. 30, 2026
USD ($)
Sep. 30, 2025
USD ($)
Sep. 30, 2025
EUR (€)
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Jun. 27, 2025
EUR (€)
Debt Instrument [Line Items]                    
Write-off of unamortized deferred financing costs             $ 426,000      
Unused commitment fees percentage             0.25%      
Debt weighted average interest rate             4.11%      
Base Rate | Minimum                    
Debt Instrument [Line Items]                    
Variable interest rate             0.00%      
Base Rate | Maximum                    
Debt Instrument [Line Items]                    
Variable interest rate             0.75%      
SOFR SONIA or EURIBOR | Minimum                    
Debt Instrument [Line Items]                    
Variable interest rate             1.00%      
SOFR SONIA or EURIBOR | Maximum                    
Debt Instrument [Line Items]                    
Variable interest rate             1.75%      
First Amendment Revolving Credit Facility                    
Debt Instrument [Line Items]                    
Maximum consolidated leverage ratio 3.75                  
Senior Credit Facility                    
Debt Instrument [Line Items]                    
Non-cash interest expense related to amortization of deferred financing costs             $ 1,200,000 $ 1,200,000 $ 1,200,000  
Fourth Amended and Restated Credit Agreement                    
Debt Instrument [Line Items]                    
Maximum borrowing capacity   $ 1,000,000,000                
Write-off of unamortized deferred financing costs   400,000                
Deferred financing costs   4,700,000                
Maximum unrestricted cash and cash equivalents allowed $ 100,000,000                  
Maximum consolidated leverage ratio             3.75      
Minimum consolidated fixed charge coverage ratio             1.25      
Fourth Amended and Restated Credit Agreement | Four Consecutive Quarters Following Designated Acquisition                    
Debt Instrument [Line Items]                    
Maximum consolidated leverage ratio 4.25           4.25      
Debt instrument, covenant, required business acquisition consideration, minimum             $ 50,000,000      
Fourth Amended and Restated Credit Agreement | Revolving Credit Facility                    
Debt Instrument [Line Items]                    
Maximum borrowing capacity   $ 850,000,000                
Senior credit facilities maturity period   5 years                
Original maturity date   Jun. 30, 2030                
Line of credit facility accordion potential feature   $ 350,000,000                
Additional borrowings capacity             $ 850,000,000      
Fourth Amended and Restated Credit Agreement | Euro Term Loans                    
Debt Instrument [Line Items]                    
Maximum borrowing capacity | €                   € 65,300,000
Senior credit facilities maturity period   5 years                
Debt instrument, frequency of periodic payment         quarterly quarterly        
Quarterly installments payable on term loan         $ 1,300,000 € 1,100,000        
Fourth Amended and Restated Credit Agreement | U.S. Term Loans                    
Debt Instrument [Line Items]                    
Maximum borrowing capacity   $ 75,000,000                
Senior credit facilities maturity period   5 years                
Fourth Amended and Restated Credit Agreement | U.S. Term Loans | Forecast | September 2026 Onwards                    
Debt Instrument [Line Items]                    
Quarterly installments payable on term loan       $ 500,000            
Fourth Amended and Restated Credit Agreement | U.S. Term Loans | Forecast | September 2027 Onwards                    
Debt Instrument [Line Items]                    
Quarterly installments payable on term loan     $ 900,000              
v3.25.4
Repayments of Outstanding Principal under Term Loan Facility (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Long Term Debt Maturities Repayments Of Principal [Line Items]    
Total debt $ 250,829 $ 416,640
Term Loan    
Long Term Debt Maturities Repayments Of Principal [Line Items]    
2026 6,242  
2027 8,117  
2028 9,055  
2029 9,055  
2030 116,525  
Total debt $ 148,994  
v3.25.4
Leases - Additional Information (Details)
 12 Months Ended
Dec. 31, 2025
Lessee Lease Description [Line Items]  
Lease renewal terms and termination description Certain leases include terms such as one or more options to renew, with renewal terms that can extend the lease term from one to 10 years, and options to terminate the leases within one year.
Minimum  
Lessee Lease Description [Line Items]  
Lease agreement expiration year 2026
Lease renewal terms 1 year
Maximum  
Lessee Lease Description [Line Items]  
Lease agreement expiration year 2037
Lease renewal terms 10 years
Lease termination period 1 year
Land | Maximum  
Lessee Lease Description [Line Items]  
Lease agreement expiration year 2078
v3.25.4
Summary of Components of Lease Costs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]      
Operating lease cost $ 11,506 $ 12,109 $ 10,475
Finance lease cost      
Amortization of right-of-use assets 602 602 602
Interest on lease liabilities 195 236 274
Variable lease cost 1,220 1,192 1,007
Total lease cost $ 13,523 $ 14,139 $ 12,358
v3.25.4
Summary of Balance Sheet Information Related to Leases (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Operating leases    
Operating lease right-of-use assets $ 41,697 $ 42,908
Current portion of operating lease liabilities 9,857 9,879
Operating lease liabilities 38,873 40,548
Total operating lease liabilities 48,730 50,427
Finance leases    
Finance lease right-of-use assets gross 9,582 9,582
Finance lease right-of-use assets accumulated depreciation (7,476) (6,874)
Finance lease assets included in property, plant and equipment, net $ 2,106 $ 2,708
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] Property, plant and equipment, net Property, plant and equipment, net
Current portion of finance lease liabilities $ 828 $ 759
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] Accrued expenses and other current liabilities Accrued expenses and other current liabilities
Noncurrent portion of finance lease liabilities $ 2,348 $ 3,175
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] Other liabilities Other liabilities
Total finance lease liabilities $ 3,176 $ 3,934
Weighted-average remaining lease term (in years):    
Operating leases 7 years 3 months 18 days 7 years 4 months 24 days
Finance leases 3 years 6 months 4 years 6 months
Weighted-average discount rate:    
Operating leases 4.92% 4.82%
Finance leases 5.54% 5.54%
v3.25.4
Summary of Cash Flow Information Related to Leases (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash paid for amounts included in lease liabilities:      
Operating cash flows from finance leases $ 195 $ 236 $ 274
Operating cash flows from operating leases 12,047 11,169 7,826
Financing cash flows from finance leases 759 718 657
Supplemental non-cash information:      
Right-of-use assets obtained in exchange for new operating lease liabilities $ 6,315 $ 14,237 $ 4,046
v3.25.4
Summary of Cash Flow Information Related to Leases (Parenthetical) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Lessee, Lease, Description [Line Items]      
Right-of-use assets acquired $ 6,315 $ 14,237 $ 4,046
Motion Solutions Parent Corp.      
Lessee, Lease, Description [Line Items]      
Right-of-use assets acquired   $ 8,100  
Keonn Technologies, S.L      
Lessee, Lease, Description [Line Items]      
Right-of-use assets acquired $ 3,100    
v3.25.4
Future Minimum Lease Payments Under Operating and Finance Leases (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Operating Leases    
2026 $ 11,572  
2027 10,447  
2028 7,495  
2029 6,476  
2030 6,166  
Thereafter 17,195  
Total minimum lease payments 59,351  
Less: Interest (10,621)  
Present value of lease liabilities 48,730 $ 50,427
Finance Leases    
2026 979  
2027 1,003  
2028 1,003  
2029 502  
2030 0  
Thereafter 0  
Total minimum lease payments 3,487  
Less: Interest (311)  
Present value of lease liabilities $ 3,176 $ 3,934
v3.25.4
Stockholders' Equity and Share-Based Compensation - Additional Information (Details) - USD ($)
 1 Months Ended 12 Months Ended
May 31, 2021
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Sep. 30, 2025
Feb. 29, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Preferred shares, Authorized 7,000,000.0 7,000,000 7,000,000      
Preferred shares, voting rights one vote per share          
Preferred shares, Issued   0 0      
Preferred shares, outstanding   0 0      
Repurchase of common stock   $ 39,278,000        
Share-based compensation expense recognized   29,538,000 $ 23,307,000 $ 25,588,000    
Unrecognized stock-based compensation expense   $ 45,300,000        
Unrecognized stock-based compensation expense, weighted-average recognition period   1 year 10 months 24 days        
Stock options, Granted   0        
Restricted Stock Units and Deferred Stock Units | Board of Directors            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Share-based compensation expense recognized   $ 1,600,000 $ 1,600,000 $ 1,200,000    
2020 Repurchase Plan            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Common stock repurchase program authorized amount           $ 50,000,000
Shares repurchased   357,000 0 0    
Repurchase of common stock   $ 39,300,000        
Shares repurchased, average cost per share   $ 110.17        
Available for share repurchases   $ 10,200,000        
2025 Repurchase Plan            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Common stock repurchase program authorized amount         $ 200,000,000  
Shares repurchased   0        
Amended and Restated 2010 Incentive Plan            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Maximum number of shares to be issued 6,148,613          
Incentive plan and award expiration date   May 13, 2031        
Shares available for future issuance   1,251,140        
Amended and Restated 2010 Incentive Plan | Restricted Stock Units and Deferred Stock Units            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Total fair value of stock units vested   $ 12,700,000        
Amended and Restated 2010 Incentive Plan | Restricted Stock Units (RSUs) | Minimum            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Vesting period   0 years        
Amended and Restated 2010 Incentive Plan | Restricted Stock Units (RSUs) | Maximum            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Vesting period   4 years        
Amended and Restated 2010 Incentive Plan | Deferred Stock Units            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Number of outstanding shares   40,000 40,000      
Amended and Restated 2010 Incentive Plan | Attainment-based PSUs | Minimum            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Range of percentage of shares to be issued upon settlement following vesting of target number of shares   0.00%        
Amended and Restated 2010 Incentive Plan | Attainment-based PSUs | Maximum            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Range of percentage of shares to be issued upon settlement following vesting of target number of shares   200.00%        
Amended and Restated 2010 Incentive Plan | Market-based PSUs | Minimum            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Range of percentage of shares to be issued upon settlement following vesting of target number of shares   0.00%        
Amended and Restated 2010 Incentive Plan | Market-based PSUs | Maximum            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Range of percentage of shares to be issued upon settlement following vesting of target number of shares   200.00%        
Amended and Restated 2010 Incentive Plan | Hybrid PSUs | Minimum            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Range of percentage of shares to be issued upon settlement following vesting of target number of shares   0.00%        
Amended and Restated 2010 Incentive Plan | Hybrid PSUs | Maximum            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Range of percentage of shares to be issued upon settlement following vesting of target number of shares   260.00%        
Amended and Restated 2010 Incentive Plan | Performance Stock Units            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Total fair value of stock units vested   $ 7,600,000        
v3.25.4
Share-Based Compensation Expense Recorded in Operating Income (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]      
Share-based compensation expense $ 29,538 $ 23,307 $ 25,588
Selling, General and Administrative      
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]      
Share-based compensation expense 22,629 19,885 21,963
Research and Development and Engineering      
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]      
Share-based compensation expense 3,988 2,346 2,031
Cost of Revenue      
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]      
Share-based compensation expense 2,877 1,076 1,594
Restructuring Acquisition and Related Costs      
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]      
Share-based compensation expense $ 44 $ 0 $ 0
v3.25.4
Restricted Stock Units and Deferred Stock Units Issued and Outstanding (Details) - Amended and Restated 2010 Incentive Plan - Restricted Stock Units and Deferred Stock Units
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
$ / shares
shares
Restricted Stock Units  
Unvested, Beginning Balance | shares 198
Granted | shares 336
Vested | shares (94)
Forfeited | shares (50)
Unvested, Ending Balance | shares 390
Expected to vest at end of period | shares 360
Weighted Average Grant Date Fair Value  
Unvested, Beginning Balance | $ / shares $ 154.43
Granted | $ / shares 128.30
Vested | $ / shares 147.47
Forfeited | $ / shares 142.76
Unvested, Ending Balance | $ / shares 135.09
Expected to vest at end of period | $ / shares $ 136.01
Weighted Average Remaining Vesting Period (in years)  
Unvested at end of period 1 year 29 days
Expected to vest at end of period 1 year 29 days
Aggregate Intrinsic Value  
Unvested at end of period | $ $ 46,354
Expected to vest at end of period | $ $ 42,784
v3.25.4
Restricted Stock Units and Deferred Stock Units Issued and Outstanding (Parenthetical) (Details) - Amended and Restated 2010 Incentive Plan - Restricted Stock Units and Deferred Stock Units
Dec. 31, 2025
$ / shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Common share fair value per share $ 118.99
Restricted and deferred stock units purchase price per share $ 0
v3.25.4
Performance-Based Restricted Stock Units Issued and Outstanding (Details) - Amended and Restated 2010 Incentive Plan - Performance Stock Units
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
$ / shares
shares
Performance Stock Units  
Unvested, Beginning Balance | shares 227
Granted | shares 157
Performance adjustments | shares (8)
Vested | shares (53)
Forfeited | shares (20)
Unvested, Ending Balance | shares 303
Expected to vest at end of period | shares 217
Weighted Average Grant Date Fair Value  
Unvested, Beginning Balance | $ / shares $ 165.13
Granted | $ / shares 133.11
Performance adjustment | $ / shares 143.51
Vested | $ / shares 141.33
Forfeited | $ / shares 167.65
Unvested, Ending Balance | $ / shares 153.13
Expected to vest at end of period | $ / shares $ 148.98
Weighted Average Remaining Vesting Period (in years)  
Unvested at end of period 1 year 6 months 14 days
Expected to vest at end of period 1 year 6 months 14 days
Aggregate Intrinsic Value  
Unvested at end of period | $ $ 36,092
Expected to vest at end of period | $ $ 25,844
v3.25.4
Performance-Based Restricted Stock Units Issued and Outstanding (Parenthetical) (Details) - Amended and Restated 2010 Incentive Plan
shares in Thousands
Dec. 31, 2025
$ / shares
shares
Performance Stock Units  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Maximum number of PSUs available to be earned | shares 593
Common share fair value per share $ 118.99
Performance stock units purchase price per share 0
Employee Stock Option [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Common share fair value per share $ 118.99
v3.25.4
Fair Value of TSR Performance-Based Restricted Stock Units Estimated Using Monte-Carol Valuation Model (Details) - Hybrid PSUs
 12 Months Ended
Dec. 31, 2025
$ / shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Grant-date stock price $ 142.8
Expected volatility 36.94%
Risk-free interest rate 4.18%
Expected annual dividend yield 0.00%
Weighted average fair value $ 160.93
v3.25.4
Stockholders' Equity and Share-Based Compensation - Stock Options Outstanding and Exercisable (Details)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
$ / shares
shares
Number of Shares  
Stock options, Granted | shares 0
Stock Options, Exercised | shares (4)
Stock Options, Forfeited or expired | shares (11)
Stock Options, Outstanding as of December 31, 2025 | shares 134
Stock Options, Exercisable as of December 31, 2025 | shares 90
Stock Options, Expected to vest as of December 31, 2025 | shares 44
Amended and Restated 2010 Incentive Plan | Employee Stock Option  
Number of Shares  
Stock Options, Outstanding as of December 31, 2024 | shares 149
Weighted Average Exercise Price  
Weighted Average Exercise Price, Outstanding as of December 31, 2024 | $ / shares $ 139.17
Weighted Average Exercise Price, Granted | $ / shares 0
Weighted Average Exercise Price, Exercised | $ / shares 135.86
Weighted Average Exercise Price, Forefeited or expired | $ / shares 157.04
Weighted Average Exercise Price, Outstanding as of December 31, 2025 | $ / shares 137.77
Weighted Average Exercise Price, Exercisable as of December 31, 2025 | $ / shares 128.4
Weighted Average Exercise Price, Expected to vest as of December 31, 2025 | $ / shares $ 157.25
Weighted Average Remaining Contractual Term (years)  
Weighted Average Remaining Contractual Term, Outstanding as of December 31, 2025 3 years 10 months 6 days
Weighted Average Remaining Contractual Term, Exercisable as of December 31, 2025 3 years 4 months 13 days
Weighted Average Remaining Contractual Term, Expected to vest as of December 31, 2025 4 years 10 months 2 days
Aggregate Intrinsic Value  
Aggregate Intrinsic Value, Outstanding as of December 31, 2025 | $ $ 1,343
Aggregate Intrinsic Value, Exercisable as of December 31, 2025 | $ 1,343
Aggregate Intrinsic Value, Expected to vest as of December 31, 2025 | $ $ 0
v3.25.4
Stockholders' Equity and Share-Based Compensation - Stock Options Outstanding and Exercisable (Parenthetical) (Details)
Dec. 31, 2025
$ / shares
Amended and Restated 2010 Incentive Plan | Employee Stock Option  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Common share fair value per share $ 118.99
v3.25.4
Employee Benefit Plans - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Retirement Benefits [Abstract]      
Contribution to defined contribution plan by employer $ 7.0 $ 6.8 $ 6.8
Funding valuation period 3 years    
v3.25.4
Net Periodic Pension Cost (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Components of the net periodic pension cost:      
Interest cost $ 1,255 $ 1,158 $ 1,185
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax
Expected return on plan assets $ (1,500) $ (1,466) $ (1,440)
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] Other Nonoperating Income (Expense) Other Nonoperating Income (Expense) Other Nonoperating Income (Expense)
Amortization of actuarial losses $ 778 $ 851 $ 990
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Operating Expenses Operating Expenses Operating Expenses
Amortization of prior service cost $ 30 $ 30 $ 30
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration] Operating Expenses Operating Expenses Operating Expenses
Net periodic pension cost $ 563 $ 573 $ 765
v3.25.4
Actuarial Assumptions used to Compute Net Periodic Pension Cost (Details)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Retirement Benefits [Abstract]      
Weighted-average discount rate 5.50% 4.50% 4.80%
Weighted-average long-term rate of return on plan assets 5.50% 5.10% 5.30%
v3.25.4
Actuarial Assumptions used to Compute Benefit Obligations (Details)
Dec. 31, 2025
Dec. 31, 2024
Retirement Benefits [Abstract]    
Weighted-average discount rate 5.60% 5.50%
Rate of inflation 2.70% 3.10%
v3.25.4
Reconciliation of Benefit Obligations and Plan Assets of U.K. Plan (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Change in benefit obligation:      
Projected benefit obligation at beginning of year $ 22,400 $ 26,259  
Interest cost 1,255 1,158 $ 1,185
Actuarial (gains) losses (104) (3,393)  
Benefits paid (1,396) (1,374)  
Foreign currency exchange rate changes 1,570 (250)  
Projected benefit obligation at end of year 23,725 22,400 26,259
Accumulated benefit obligation at end of year 23,725 22,400  
Change in plan assets:      
Fair value of plan assets at beginning of year 26,645 29,351  
Actual return on plan assets 845 (1,311)  
Employer contributions 0 287  
Benefits paid (1,396) (1,374)  
Foreign currency exchange rate changes 1,862 (308)  
Fair value of plan assets at end of year 27,956 26,645 29,351
Funded status at end of year 4,231 4,245  
Amounts included in accumulated other comprehensive loss not yet recognized in net periodic pension cost:      
Net actuarial losses at beginning of year (6,197) (7,772)  
Net actuarial gains (losses) during the year (551) 627  
Amounts reclassified from accumulated other comprehensive loss to income before income taxes 808 881  
Foreign currency exchange rate changes (430) 67  
Net actuarial losses $ (6,370) $ (6,197) $ (7,772)
v3.25.4
Expected Future Benefit Payments for Each of Next Five Years (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Retirement Benefits [Abstract]  
2026 $ 1,680
2027 1,772
2028 1,741
2029 1,739
2030 2,232
2031-2035 10,214
Total $ 19,378
v3.25.4
Summary of Fair Value of Plan Assets by Asset Category (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Fair Value of Plan Assets $ 27,956 $ 26,645 $ 29,351
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1)      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Fair Value of Plan Assets 387 391  
Not Subject to Leveling      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Fair Value of Plan Assets 27,569 26,254  
Balanced Fund      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Fair Value of Plan Assets   5,118  
Balanced Fund | Not Subject to Leveling      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Fair Value of Plan Assets   5,118  
Fixed Income      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Fair Value of Plan Assets 27,569 21,136  
Fixed Income | Not Subject to Leveling      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Fair Value of Plan Assets 27,569 21,136  
Cash      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Fair Value of Plan Assets 387 391  
Cash | Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1)      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Fair Value of Plan Assets $ 387 $ 391  
v3.25.4
Summary of Fair Value of Plan Assets by Asset Category (Parenthetical) (Details)
Dec. 31, 2025
Dec. 31, 2024
Bonds | Fixed Income    
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]    
Defined benefit plan, target plan asset allocations 26.00% 79.00%
Bonds | Balanced Fund    
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]    
Defined benefit plan, target plan asset allocations   90.00%
Equity Securities | Balanced Fund    
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]    
Defined benefit plan, target plan asset allocations   5.00%
Other Asset | Fixed Income    
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]    
Defined benefit plan, target plan asset allocations 4.00% 21.00%
Other Asset | Balanced Fund    
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]    
Defined benefit plan, target plan asset allocations   5.00%
Cash | Fixed Income    
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]    
Defined benefit plan, target plan asset allocations 70.00%  
v3.25.4
Components of Income (Loss) Before Income Tax (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income (loss) before income taxes:      
Income before income taxes $ 69,642 $ 79,066 $ 83,748
CANADA      
Income (loss) before income taxes:      
Foreign (1,250) (7,425) (6,490)
UNITED STATES      
Income (loss) before income taxes:      
U.S. (22,890) 11,829 38,992
Other Countries      
Income (loss) before income taxes:      
Foreign $ 93,782 $ 74,662 $ 51,246
v3.25.4
Components of Income Tax Provision (Benefit) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Components Of Income Tax Expense Benefit [Line Items]      
Current income tax provision (benefit) $ 24,666 $ 30,888 $ 25,596
Deferred income tax provision (benefit) (8,853) (15,909) (14,726)
Income Tax Provision (benefit) 15,813 14,979 10,870
CANADA      
Components Of Income Tax Expense Benefit [Line Items]      
Current income tax provision (benefit) 11 43 59
UNITED STATES      
Components Of Income Tax Expense Benefit [Line Items]      
Current income tax provision (benefit) 1,733 11,198 14,424
Deferred income tax provision (benefit) (5,124) (12,612) (12,224)
Other Countries      
Components Of Income Tax Expense Benefit [Line Items]      
Current income tax provision (benefit) 22,922 19,647 11,113
Deferred income tax provision (benefit) $ (3,729) $ (3,297) $ (2,502)
v3.25.4
Reconciliation of Statutory Canadian Tax rate to Effective Tax Rate (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Schedule Of Effective Tax Rate Reconciliation [Line Items]      
Income Tax Provision (benefit) $ 15,813 $ 14,979 $ 10,870
Canada Revenue Agency      
Schedule Of Effective Tax Rate Reconciliation [Line Items]      
Expected income tax provision at Canadian statutory tax rate $ 10,446 $ 22,929 $ 24,287
Statutory Canadian tax rate 15.00% 29.00% 29.00%
Provincial and local income taxes $ 0    
Provincial and local income taxes, Percentage 0.00%    
Effect of rates different than statutory/ International tax rate differences   $ (2,622) $ (4,804)
Foreign-derived intangible income   (3,015) (4,500)
Disallowed compensation   1,678 2,571
Other/Withholding and other taxes $ (20) 854 300
Other/Withholding and other taxes, Percentage (0.00%)    
U.K. patent box   (3,982) (4,247)
Effect of changes in tax laws or rates enacted in the current period   55 165
Effect of cross-border tax laws $ 0    
Effect of cross-border tax laws, Percentage 0.00%    
Tax credits $ 0 (2,590) (3,602)
Tax credits, Percentage 0.00%    
Change in valuation allowance $ (145) 1,930 2,068
Change in valuation allowances, Percentage (0.20%)    
Other $ 356    
Other, Percentage 0.50%    
Changes in unrecognized tax benefits $ (704)    
Changes in unrecognized tax benefits, Percentage (1.00%)    
U.S. state income taxes, net   (168) 860
Windfall benefit from share-based compensation   (844) (1,685)
Transaction costs and permanent differences   360 423
Uncertain tax positions   244 90
Provision to return differences   231 (1,056)
Acquisition contingent consideration adjustments   (81)  
Statutory tax rate changes   55 165
Income Tax Provision (benefit) $ 15,813 $ 14,979 $ 10,870
Effective Income Tax Rate Reconciliation, Percent, Total 22.70% 18.90% 13.00%
Canada Revenue Agency | United States      
Schedule Of Effective Tax Rate Reconciliation [Line Items]      
R&D tax credits $ (2,410)    
R&D tax credits, Percentage (3.50%)    
Effect of rates different than statutory/ International tax rate differences $ (1,471)    
Effect of rates different than statutory, Percentage (2.10%)    
Foreign-derived intangible income $ (740)    
Foreign-derived intangible income, Percentage (1.00%)    
Base Erosion and Anti-Abuse Tax $ 1,549    
Base Erosion and Anti-Abuse Tax, Percentage 2.20%    
Disallowed compensation $ 1,896    
Disallowed compensation, Percentage 2.70%    
Return to provision adjustments $ 677    
Return to provision adjustments, Percentage 1.00%    
Other/Withholding and other taxes $ 640    
Other/Withholding and other taxes, Percentage 0.90%    
Other foreign jurisdictions $ 224    
Other foreign jurisdictions, Percentage 0.30%    
Canada Revenue Agency | United Kingdom      
Schedule Of Effective Tax Rate Reconciliation [Line Items]      
Effect of rates different than statutory/ International tax rate differences $ 1,695    
Effect of rates different than statutory, Percentage 2.40%    
Other/Withholding and other taxes $ 22    
Other/Withholding and other taxes, Percentage 0.00%    
U.K. patent box $ (6,652)    
UK patent box, Percentage (9.60%)    
Pillar 2 $ 1,031    
Pillar 2, Percentage 1.50%    
Canada Revenue Agency | Germany      
Schedule Of Effective Tax Rate Reconciliation [Line Items]      
Other/Withholding and other taxes $ (105)    
Other/Withholding and other taxes, Percentage (0.10%)    
Trade tax $ 4,162    
Trade tax, percent 6.00%    
Canada Revenue Agency | China      
Schedule Of Effective Tax Rate Reconciliation [Line Items]      
Effect of rates different than statutory/ International tax rate differences $ 4,155    
Effect of rates different than statutory, Percentage 6.00%    
Other/Withholding and other taxes $ 63    
Other/Withholding and other taxes, Percentage 0.10%    
Withholding taxes $ 1,144    
Withholding taxes, Percentage 1.60%    
v3.25.4
Income Taxes - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Taxes [Line Items]        
Deferred tax assets additional valuation allowance recorded $ 4,600 $ 1,900    
Loss carryforwards 7,600 6,800    
Capital loss carryforward 5,900 5,800    
Tax credits 5,800 3,800    
Tax credits, uncertain tax positions 1,000 600    
Estimated unrecognized income tax and foreign tax liabilities related to undistributed earnings of foreign subsidiaries 5,400      
Gross unrecognized tax benefits 4,374 4,839 $ 4,343 $ 4,249
Unrecognized tax benefits that will impact tax rate if recognized 3,700      
Unrecognized tax benefit income tax interest and penalties accrued 700 800    
Unrecognized tax benefits, income tax penalties and interest expense (100) 100 $ 100  
Disallowed business interest expense carryforwards 100 1,500    
Other Foreign Jurisdictions        
Income Taxes [Line Items]        
Tax credits 400      
Research and Development Expense        
Income Taxes [Line Items]        
Deferred tax assets recognized $ 5,300      
Deferred tax assets recognized, percent 1.00%      
UNITED STATES        
Income Taxes [Line Items]        
Loss carryforwards $ 500 300    
Loss carryforwards indefinite amount   100    
Loss carryforwards remaining amount   200    
Operating loss carryforwards valuation allowance   $ 100    
Tax credits $ 1,500      
UNITED STATES | Tax Credit That Will Expire In Certain Period        
Income Taxes [Line Items]        
Tax credits, expiration Year 2045      
UNITED STATES | Minimum        
Income Taxes [Line Items]        
Operating loss carryforwards expiration year 2026 2025    
UNITED STATES | Maximum        
Income Taxes [Line Items]        
Operating loss carryforwards expiration year 2045 2036    
U.S. State Credits        
Income Taxes [Line Items]        
Tax credits $ 2,700 $ 2,600    
U.S. State Credits | Tax Credit That Will Expire In Certain Period        
Income Taxes [Line Items]        
Tax credits, expiration Year 2046 2039    
CANADA        
Income Taxes [Line Items]        
Loss carryforwards $ 7,100 $ 6,500    
Operating loss carryforwards expiration year 2033 2033    
Capital loss carryforward $ 4,900 $ 4,900    
CANADA | Tax Credits That Can Be Carried Forward Indefinitely        
Income Taxes [Line Items]        
Capital loss carryforward 700 700    
UNITED KINGDOM        
Income Taxes [Line Items]        
Capital loss carryforward 1,000 800    
U.S. Federal Foreign Tax Credits        
Income Taxes [Line Items]        
Tax credits $ 500 $ 500    
U.S. Federal Foreign Tax Credits | Tax Credit That Will Expire In Certain Period        
Income Taxes [Line Items]        
Tax credits, expiration Year 2034 2034    
Other Foreign        
Income Taxes [Line Items]        
Capital loss carryforward   $ 100    
v3.25.4
Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Deferred tax assets:    
Capitalized R&D $ 40,043 $ 34,777
Inventories 16,270 15,451
Losses 13,456 12,606
Compensation related deductions 7,827 9,323
Operating lease liabilities 8,703 9,120
Tax credits 4,821 3,260
Deferred tangible equity unit financing fee 3,715  
Business interest expense 55 1,483
Other 1,922 974
Warranty 665 913
Total deferred tax assets 97,477 87,907
Valuation allowance on deferred tax assets (23,212) (18,594)
Net deferred tax assets 74,265 69,313
Deferred tax liabilities:    
Amortization (43,771) (39,061)
Operating lease right-of-use assets (7,831) (8,110)
Depreciation (5,879) (6,307)
Deferred revenue (7,495) (6,041)
Total deferred tax liabilities (64,976) (59,519)
Net deferred tax assets $ 9,289 $ 9,794
v3.25.4
Schedule of Income Taxes Paid Net of Refunds (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
Income Tax Paid, by Individual Jurisdiction [Line Items]  
Federal $ 0
Provincial 0
Foreign 36,725
Total 36,725
Germany | Corporate  
Income Tax Paid, by Individual Jurisdiction [Line Items]  
Foreign 12,653
Germany | Trade  
Income Tax Paid, by Individual Jurisdiction [Line Items]  
Foreign 9,893
China  
Income Tax Paid, by Individual Jurisdiction [Line Items]  
Foreign 5,257
United Kingdom  
Income Tax Paid, by Individual Jurisdiction [Line Items]  
Foreign 3,652
United States  
Income Tax Paid, by Individual Jurisdiction [Line Items]  
Federal 814
Provincial $ 484
v3.25.4
Reconciliation of Total Amounts of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Beginning balance of unrecognized tax benefits $ 4,839 $ 4,343 $ 4,249
Additions based on tax positions related to the current year 697 949 561
Additions for tax positions of prior years 70 204 47
Reductions to tax positions of prior years (101) (42) (22)
Reductions to tax positions resulting from a lapse of the applicable statute of limitations (1,131) (615) (492)
Ending balance of unrecognized tax benefits $ 4,374 $ 4,839 $ 4,343
v3.25.4
Income Tax Returns to be Reviewed (Details)
 12 Months Ended
Dec. 31, 2025
UNITED STATES  
Income Tax Examination [Line Items]  
Income tax returns to be reviewed 2019
CANADA  
Income Tax Examination [Line Items]  
Income tax returns to be reviewed 2021
UNITED KINGDOM  
Income Tax Examination [Line Items]  
Income tax returns to be reviewed 2024
GERMANY  
Income Tax Examination [Line Items]  
Income tax returns to be reviewed 2021
Czech Republic  
Income Tax Examination [Line Items]  
Income tax returns to be reviewed 2022
CHINA  
Income Tax Examination [Line Items]  
Income tax returns to be reviewed 2015
JAPAN  
Income Tax Examination [Line Items]  
Income tax returns to be reviewed 2020
v3.25.4
Schedule of Restructuring, Acquisition and Related Costs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Restructuring Cost And Reserve [Line Items]      
Total restructuring related charges $ 16,124 $ 10,486 $ 11,814
Acquisition and related charges 6,528 3,223 1,000
Total restructuring, acquisition and related costs 22,652 13,709 12,814
2025 Restructuring      
Restructuring Cost And Reserve [Line Items]      
Total restructuring related charges 14,021 0 0
2024 Restructuring      
Restructuring Cost And Reserve [Line Items]      
Total restructuring related charges 5,698 10,486 0
2022 Restructuring      
Restructuring Cost And Reserve [Line Items]      
Total restructuring related charges 0 0 8,961
2020 Restructuring      
Restructuring Cost And Reserve [Line Items]      
Total restructuring related charges $ (3,595) $ 0 $ 2,853
v3.25.4
Restructuring, Acquisition and Related Costs - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Restructuring, Acquisition, and Related Costs [Line Items]      
Acquisition and related charges $ 6,528 $ 3,223 $ 1,000
Unallocated Corporate and Shared Services      
Restructuring, Acquisition, and Related Costs [Line Items]      
Acquisition and related charges 6,500    
Finders' Fees, Legal, Valuation And Other Professional Or Consulting Fees      
Restructuring, Acquisition, and Related Costs [Line Items]      
Acquisition and related charges 5,700 3,500 1,000
Earn-out Agreement      
Restructuring, Acquisition, and Related Costs [Line Items]      
Acquisition and related charges $ 800 $ (300) $ 0
2025 Restructuring      
Restructuring, Acquisition, and Related Costs [Line Items]      
Restructuring and related cost description The Company initiated the 2025 restructuring program in the second quarter of 2025 in order to streamline operations and align with our long-term goals. The 2025 restructuring program includes measures to regionalize manufacturing operations to better serve its customers, expedite the closure of certain sites, streamline management structures, and implement cost-saving strategies in areas anticipated to have a minimal long-term impact on the Company's overall business performance. During year ended December 31, 2025, the Company recorded $14.0 million in severance, facility related and other charges in connection with the 2025 restructuring program. As of December 31, 2025, the Company had incurred cumulative costs of $14.0 million related to this restructuring program. The Company anticipates substantially completing the 2025 restructuring program by the end of 2026. Total restructuring charges related to this program are expected to be approximately $25.0 million.    
Restructuring cumulative costs incurred $ 14,000    
Restructuring costs 25,000    
2025 Restructuring | Severance, Facility Related, and Other Charges      
Restructuring, Acquisition, and Related Costs [Line Items]      
Severance cost $ 14,000    
2024 Restructuring      
Restructuring, Acquisition, and Related Costs [Line Items]      
Restructuring and related cost description As a result of the Company’s acquisitions and ongoing integration activities, the Company initiated the 2024 restructuring program in the first quarter of 2024 in order to reduce operating complexity. During the year ended December 31, 2025, the Company recorded $5.7 million in severance, facility related and other charges in connection with the 2024 restructuring program. As of December 31, 2025, the Company had incurred cumulative costs of $16.2 million related to this restructuring program. The Company anticipates substantially completing the 2024 restructuring program by the end of 2026 and expects to incur additional restructuring charges of $2.0 million to $3.0 million related to the 2024 restructuring program.    
Restructuring cumulative costs incurred $ 16,200    
2024 Restructuring | Minimum      
Restructuring, Acquisition, and Related Costs [Line Items]      
Restructuring costs 2,000    
2024 Restructuring | Maximum      
Restructuring, Acquisition, and Related Costs [Line Items]      
Restructuring costs 3,000    
2024 Restructuring | Severance, Facility Related, and Other Charges      
Restructuring, Acquisition, and Related Costs [Line Items]      
Severance cost $ 5,700    
2022 Restructuring      
Restructuring, Acquisition, and Related Costs [Line Items]      
Restructuring and related cost description As a result of the Company’s ongoing evaluations and efforts to reduce its operating costs, while improving efficiency and effectiveness, the Company initiated the 2022 restructuring program in the third quarter of 2022. This program was focused on reducing operating complexity in the Company, including reducing infrastructure costs and streamlining the Company’s operating model to better serve its customers. In addition, the program was focused on cost reduction actions to improve gross margins for the overall company. As of December 31, 2025, the Company had incurred cumulative costs of $10.4 million related to the 2022 restructuring program. The 2022 restructuring program was completed in the fourth quarter of 2023.    
Restructuring cumulative costs incurred $ 10,400    
2020 Restructuring      
Restructuring, Acquisition, and Related Costs [Line Items]      
Restructuring and related cost description As a result of the Company’s ongoing evaluations and efforts to reduce its operating costs, while improving efficiency and effectiveness, the Company initiated the 2020 restructuring program in the third quarter of 2020. This program was focused on reducing operating complexity in the Company, including reducing infrastructure costs and streamlining the Company’s operating model to better serve its customers. In addition, the program was focused on cost reduction actions to improve gross margins for the overall company. As of December 31, 2025, the Company had incurred cumulative costs of $13.1 million related to the 2020 restructuring program. The 2020 restructuring program was completed in the fourth quarter of 2023. In January 2025, the Company sold a facility from the 2020 restructuring program and recorded a $3.6 million gain in the Company’s Automation Enabling Technologies segment.    
Restructuring cumulative costs incurred $ 13,100    
Gain on sale of facility $ 3,600    
v3.25.4
Summary of Restructuring Charges by Reportable Segment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Restructuring Cost And Reserve [Line Items]      
Restructuring costs $ 16,124 $ 10,486 $ 11,814
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Other Accrued Liabilities, Current, Other Liabilities, Noncurrent Other Accrued Liabilities, Current, Other Liabilities, Noncurrent  
2025 Restructuring      
Restructuring Cost And Reserve [Line Items]      
Restructuring costs $ 14,021 $ 0 0
Cumulative Costs 14,021    
2025 Restructuring | Automation Enabling Technologies      
Restructuring Cost And Reserve [Line Items]      
Restructuring costs 3,269    
Cumulative Costs 3,269    
2025 Restructuring | Medical Solutions      
Restructuring Cost And Reserve [Line Items]      
Restructuring costs 7,325    
Cumulative Costs 7,325    
2025 Restructuring | Unallocated costs      
Restructuring Cost And Reserve [Line Items]      
Restructuring costs 3,427    
Cumulative Costs 3,427    
2024 Restructuring      
Restructuring Cost And Reserve [Line Items]      
Restructuring costs 5,698 10,486 0
Cumulative Costs 16,184    
2024 Restructuring | Automation Enabling Technologies      
Restructuring Cost And Reserve [Line Items]      
Restructuring costs 1,390 3,198  
Cumulative Costs 4,588    
2024 Restructuring | Medical Solutions      
Restructuring Cost And Reserve [Line Items]      
Restructuring costs 4,276 6,769  
Cumulative Costs 11,045    
2024 Restructuring | Unallocated costs      
Restructuring Cost And Reserve [Line Items]      
Restructuring costs 32 519  
Cumulative Costs 551    
2022 Restructuring      
Restructuring Cost And Reserve [Line Items]      
Restructuring costs 0 0 8,961
Cumulative Costs 10,375    
2022 Restructuring | Automation Enabling Technologies      
Restructuring Cost And Reserve [Line Items]      
Restructuring costs     6,771
Cumulative Costs 8,129    
2022 Restructuring | Medical Solutions      
Restructuring Cost And Reserve [Line Items]      
Restructuring costs     1,359
Cumulative Costs 1,415    
2022 Restructuring | Unallocated costs      
Restructuring Cost And Reserve [Line Items]      
Restructuring costs     831
Cumulative Costs 831    
2020 Restructuring      
Restructuring Cost And Reserve [Line Items]      
Restructuring costs (3,595) 0 2,853
Cumulative Costs 13,121    
2020 Restructuring | Automation Enabling Technologies      
Restructuring Cost And Reserve [Line Items]      
Restructuring costs (3,595) 0 2,853
Cumulative Costs 10,232    
2020 Restructuring | Medical Solutions      
Restructuring Cost And Reserve [Line Items]      
Restructuring costs 0 0 0
Cumulative Costs 2,716    
2020 Restructuring | Unallocated costs      
Restructuring Cost And Reserve [Line Items]      
Restructuring costs 0 $ 0 $ 0
Cumulative Costs $ 173    
v3.25.4
Summary of Accrual Activities by Components Related to Company's Restructuring Programs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Restructuring Cost And Reserve [Line Items]    
Accrued expense beginning balance $ 6,751 $ 2,850
Restructuring charges $ 16,124 $ 10,486
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Other Accrued Liabilities, Current, Other Liabilities, Noncurrent Other Accrued Liabilities, Current, Other Liabilities, Noncurrent
Cash payments $ (8,595) $ (5,898)
Non-cash write-offs and other adjustments (3,698) (687)
Accrued expense ending balance 10,582 6,751
Employee Related    
Restructuring Cost And Reserve [Line Items]    
Accrued expense beginning balance 5,690 1,038
Restructuring charges 15,562 8,165
Cash payments (12,012) (3,469)
Non-cash write-offs and other adjustments 649 (44)
Accrued expense ending balance 9,889 5,690
Facility Related    
Restructuring Cost And Reserve [Line Items]    
Accrued expense beginning balance 1,061 1,680
Restructuring charges 2,891 2,034
Cash payments (633) (2,007)
Non-cash write-offs and other adjustments (2,626) (646)
Accrued expense ending balance 693 1,061
Facility Sale    
Restructuring Cost And Reserve [Line Items]    
Accrued expense beginning balance 0 0
Restructuring charges (4,077) 0
Cash payments 5,537 0
Non-cash write-offs and other adjustments (1,460) 0
Accrued expense ending balance 0 0
Other Restructuring Charges    
Restructuring Cost And Reserve [Line Items]    
Accrued expense beginning balance 0 132
Restructuring charges 1,748 287
Cash payments (1,487) (422)
Non-cash write-offs and other adjustments (261) 3
Accrued expense ending balance $ 0 $ 0
v3.25.4
Commitments and Contingencies - Additional Information (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
Customer
Dec. 31, 2024
Loss Contingencies [Line Items]    
Purchase commitments $ 160.3  
Purchase commitments, 2026 155.8  
Purchase commitments, 2027 3.9  
Purchase commitments, 2028 $ 0.6  
Number of customers accounted for 10% or more of accounts receivable | Customer 1  
Accounts Receivable | Credit Risks | Customer One    
Loss Contingencies [Line Items]    
Customer concentration 17.00% 13.00%
v3.25.4
Segment Information - Additional Information (Details)
 12 Months Ended
Dec. 31, 2025
EndMarket
Segment
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Number of reportable segments | Segment 2    
Number of primary end market segments | EndMarket 2    
Segment Reporting, CODM, Individual Title and Position or Group Name [Extensible Enumeration] srt:ChiefExecutiveOfficerMember    
Segment Reporting, CODM, Profit (Loss) Measure, How Used, Description The CODM utilizes financial information to make decisions about allocating resources and assessing performance for the entire Company.    
Medical Solutions | Sales Revenue Segment | Customer Concentration Risk      
Segment Reporting Information [Line Items]      
Percentage of revenue accounted   10.00% 10.00%
OEM Customer One | Medical Solutions | Sales Revenue Segment | Customer Concentration Risk      
Segment Reporting Information [Line Items]      
Percentage of revenue accounted 12.00%    
OEM Customer Two | Medical Solutions | Sales Revenue Segment | Customer Concentration Risk      
Segment Reporting Information [Line Items]      
Percentage of revenue accounted 11.00%    
v3.25.4
Results of Operations Reportable Segment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Revenue $ 980,600 $ 949,245 $ 881,662
Cost of revenue 545,316 527,700 481,765
Amortization of purchased intangible assets 16,276 14,773 12,150
Gross profit 435,284 421,545 399,897
Research and development and engineering 95,484 95,515 91,682
Selling, general and administrative 195,659 175,943 164,460
Amortization of purchased intangible assets 27,477 25,794 20,445
Restructuring, acquisition and related costs 22,652 13,709 12,814
Interest income (expense), net (21,472) (31,489) (25,818)
Other income (expense), net (708) (442) (675)
Income before income taxes 69,642 79,066 83,748
Operating Segments      
Segment Reporting Information [Line Items]      
Revenue 980,600 949,245 881,662
Gross profit 439,207 424,932 405,585
Segment operating income 165,703 163,935 159,539
Operating Segments | Medical Solutions      
Segment Reporting Information [Line Items]      
Revenue 479,765 458,625 382,442
Cost of revenue 269,356 260,176 206,550
Amortization of purchased intangible assets 10,708 8,492 5,105
Gross profit 199,701 189,957 170,787
Research and development and engineering 58,342 57,110 49,440
Selling, general and administrative 60,034 53,798 49,227
Amortization of purchased intangible assets 17,705 14,587 7,503
Restructuring, acquisition and related costs 12,448 6,930 1,359
Segment operating income 51,172 57,532 63,258
Income before income taxes 51,172 57,532 63,258
Operating Segments | Automation Enabling Technologies      
Segment Reporting Information [Line Items]      
Revenue 500,835 490,620 499,220
Cost of revenue 255,761 249,364 257,377
Amortization of purchased intangible assets 5,568 6,281 7,045
Gross profit 239,506 234,975 234,798
Research and development and engineering 37,805 39,026 43,024
Selling, general and administrative 76,316 75,423 72,860
Amortization of purchased intangible assets 9,772 11,207 12,942
Restructuring, acquisition and related costs 1,082 2,916 9,691
Segment operating income 114,531 106,403 96,281
Income before income taxes 114,531 106,403 96,281
Segment Reporting, Reconciling Item, Excluding Corporate Nonsegment      
Segment Reporting Information [Line Items]      
Unallocated costs (71,691) (53,351) (49,043)
Interest income (expense), net (21,472) (31,489) (25,818)
Other income (expense), net $ (2,898) $ (29) $ (930)
v3.25.4
Depreciation and Amortization Expenses by Reportable Segment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Depreciation and Amortization Expenses      
Depreciation and amortization expenses $ 61,932 $ 55,563 $ 46,612
Unallocated      
Depreciation and Amortization Expenses      
Depreciation and amortization expenses 1,531 1,872 1,354
Medical Solutions | Operating Segments      
Depreciation and Amortization Expenses      
Depreciation and amortization expenses 37,960 29,818 18,578
Automation Enabling Technologies | Operating Segments      
Depreciation and Amortization Expenses      
Depreciation and amortization expenses $ 22,441 $ 23,873 $ 26,680
v3.25.4
Accounts Receivable and Inventory by Reportable Segments (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Accounts Receivable    
Total accounts receivable $ 184,880 $ 151,026
Inventories    
Total inventories 188,284 144,606
Total segment assets 373,164 295,632
Medical Solutions    
Accounts Receivable    
Total accounts receivable 108,195 80,197
Inventories    
Total inventories 78,079 55,597
Automation Enabling Technologies    
Accounts Receivable    
Total accounts receivable 76,685 70,829
Inventories    
Total inventories $ 110,205 $ 89,009
v3.25.4
Total Assets by Reportable Segments (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
ASSETS    
Total segment assets $ 373,164 $ 295,632
Cash and cash equivalents 380,871 113,989
Prepaid income taxes and income taxes receivable 9,382 8,076
Prepaid expenses and other current assets 19,184 15,951
Property, plant and equipment, net 118,491 113,135
Operating right-of-use assets 41,697 42,908
Deferred tax assets 27,381 22,887
Other assets 8,812 5,991
Intangible assets, net 180,776 185,844
Goodwill 647,348 584,098
Total assets $ 1,807,106 $ 1,388,511
v3.25.4
Schedule of Geographic Revenue (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Revenue $ 980,600 $ 949,245 $ 881,662
Geographic Concentration Risk | Revenue from Contract with Customer Benchmark      
Segment Reporting Information [Line Items]      
Percentage of Total 100.00% 100.00% 100.00%
United States      
Segment Reporting Information [Line Items]      
Revenue $ 519,007 $ 487,114 $ 418,265
United States | Geographic Concentration Risk | Revenue from Contract with Customer Benchmark      
Segment Reporting Information [Line Items]      
Percentage of Total 52.90% 51.30% 47.40%
Germany      
Segment Reporting Information [Line Items]      
Revenue $ 114,647 $ 123,244 $ 128,229
Germany | Geographic Concentration Risk | Revenue from Contract with Customer Benchmark      
Segment Reporting Information [Line Items]      
Percentage of Total 11.70% 13.00% 14.50%
Rest of Europe      
Segment Reporting Information [Line Items]      
Revenue $ 137,406 $ 128,871 $ 137,027
Rest of Europe | Geographic Concentration Risk | Revenue from Contract with Customer Benchmark      
Segment Reporting Information [Line Items]      
Percentage of Total 14.00% 13.60% 15.60%
China      
Segment Reporting Information [Line Items]      
Revenue $ 93,201 $ 84,562 $ 73,444
China | Geographic Concentration Risk | Revenue from Contract with Customer Benchmark      
Segment Reporting Information [Line Items]      
Percentage of Total 9.50% 8.90% 8.30%
Rest of Asia-Pacific      
Segment Reporting Information [Line Items]      
Revenue $ 97,034 $ 107,054 $ 105,350
Rest of Asia-Pacific | Geographic Concentration Risk | Revenue from Contract with Customer Benchmark      
Segment Reporting Information [Line Items]      
Percentage of Total 9.90% 11.30% 12.00%
Other Countries      
Segment Reporting Information [Line Items]      
Revenue $ 19,305 $ 18,400 $ 19,347
Other Countries | Geographic Concentration Risk | Revenue from Contract with Customer Benchmark      
Segment Reporting Information [Line Items]      
Percentage of Total 2.00% 1.90% 2.20%
v3.25.4
Summary of Long-lived Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Long-Lived Assets by Geographical Areas [Line Items]    
Property, plant and equipment, net $ 118,491 $ 113,135
United States    
Long-Lived Assets by Geographical Areas [Line Items]    
Property, plant and equipment, net 23,930 25,207
Germany    
Long-Lived Assets by Geographical Areas [Line Items]    
Property, plant and equipment, net 32,303 31,684
U.K.    
Long-Lived Assets by Geographical Areas [Line Items]    
Property, plant and equipment, net 34,420 34,078
Czech Republic    
Long-Lived Assets by Geographical Areas [Line Items]    
Property, plant and equipment, net 17,696 15,345
China    
Long-Lived Assets by Geographical Areas [Line Items]    
Property, plant and equipment, net 7,593 6,561
Rest of World    
Long-Lived Assets by Geographical Areas [Line Items]    
Property, plant and equipment, net $ 2,549 $ 260
v3.25.4
Schedule of Revenue by End Market (Details)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Total revenue by end market 100.00% 100.00% 100.00%
Medical      
Segment Reporting Information [Line Items]      
Total revenue by end market 53.00% 55.00% 54.00%
Advanced Industrial      
Segment Reporting Information [Line Items]      
Total revenue by end market 47.00% 45.00% 46.00%