Adjusted gross margin was 46.1%, slightly down from 46.6% in Q2 2024 but flat sequentially, and adjusted EBITDA margin was 22%, up 2% year-over-year.
Automation Enabling Technologies segment revenue grew 4% year-over-year, driven by Robotics and Automation business up nearly 16%.
Bookings grew 10% year-over-year and 20% sequentially with a book-to-bill ratio of 1.02, indicating strengthening backlog and outlook.
Gross debt ended at $465 million with a gross leverage ratio of 2.2x and net leverage ratio of approximately 1.7x.
Medical market sales represented 54% of total sales, with advanced industrial markets at 46%.
Medical Solutions segment revenue was roughly flat year-over-year, with Advanced Surgery up 17% and Precision Medicine down 13% year-over-year but up 10% sequentially.
New product revenue grew over 50% year-over-year, with customer orders up 10% year-over-year and 20% sequentially.
Non-GAAP adjusted earnings per share increased 4% to $0.76 in Q2 2025.
Novanta reported second quarter 2025 revenue of $241 million, representing 2% reported growth and a 2% organic decline, surpassing guidance.
Operating cash flow declined to $15 million from $41 million in the prior year quarter, mainly due to timing of tax payments, increased inventory purchases, and the Kion acquisition.
Cash flow from operations was $26 million, or 17% of revenue, and free cash flow was $10.9 million, a significant improvement from negative $18.5 million in Q2 2024.
Fastly reported Q2 2025 revenue of $148.7 million, a 12% year-over-year increase, exceeding the high end of guidance.
Gross margin improved to 59%, up 170 basis points quarter-over-quarter due to margin leverage and network efficiencies.
Operating loss was $4.6 million, better than the guided midpoint of $6 million loss, with operating expenses up only 2% year-over-year.
Security revenue reached a record $29.3 million, representing 20% of total revenue and growing 15% year-over-year.
Top 10 customers accounted for 31% of revenue, down from 33% in Q1, with revenue outside the top 10 growing 17% year-over-year.
Cash and equivalents totaled $92 million at quarter end, down $17 million from Q1 due to working capital investments and $7 million in capital expenditures.
Charges of $5.7 million were recorded between Q1 and Q2 for exit costs related to personnel, fixed assets, and facilities as part of global operations consolidation.
Net interest expense was $1.6 million, aligned with expectations.
Non-GAAP net income tax expense was $3.2 million, higher than forecast due to acceleration of the Pillar Two tax into Q2, impacting EPS by $0.07.
Operating expenses were roughly flat to Q1 at $23.8 million, resulting in operating income of $6.1 million for Q2.
Q2 gross margin was 12.5%, a slight increase of 10 basis points from Q1 but at the low end of expectations due to hiring challenges limiting machine component output.
Reported EPS for Q2 was $0.03 per share.
Second quarter revenues were $240.3 million, at the upper end of guidance, up 18% year-over-year but 2% lower than Q1.
Total debt was $126 million with a net debt coverage ratio of 1.5x, well below covenant thresholds.
Dafinchi