Economic Sensitivity Risk: Novanta's financial performance is highly dependent on capital equipment spending in cyclical industrial, medical, and advanced technology markets, making it vulnerable to economic downturns and fluctuations in customer demand.

Intense Competition Risk: Operating in highly competitive and rapidly evolving markets, Novanta faces pricing pressure and market share erosion from existing competitors and new market entrants if it fails to innovate or maintain a competitive edge.

Supply Chain Disruption Risk: Dependence on a global supply chain for critical components exposes Novanta to risks of shortages, increased costs, and extended lead times, which can disrupt production and order fulfillment.