LivaNova (LIVN) investor relations material

Executive summary

• Achieved double-digit reported revenue growth of 10.8% year-over-year in Q2 2026, with constant-currency growth of 9.8%, driven by strong Cardiopulmonary and Neuromodulation/Epilepsy segment performance.

• Adjusted diluted EPS grew 20% year-over-year to $1.26, benefiting from a one-time tariff refund; GAAP diluted EPS was $1.93.

• Raised full-year 2026 revenue growth guidance to 8%-9% (from 7%-8%) and adjusted EPS guidance to $4.30-$4.40, reflecting robust business momentum.

• Entered a long-term supply agreement with Thermo Fisher Scientific to secure critical oxygenator components and support manufacturing expansion.

• Appointed new executives to key leadership roles, including President of Cardiopulmonary and Chief Legal Officer.

Financial highlights

• Q2 2026 net revenue reached $391 million, up 10.8% year-over-year (9.8% constant currency); adjusted gross margin was 71% (up from 69%).

• Adjusted operating income was $91 million (23% margin), up from $77 million (22%) in Q2 2025; GAAP operating income was $49.5 million.

• Adjusted free cash flow for the quarter was $46 million, slightly down year-over-year due to higher CapEx and working capital needs.

• Cash and cash equivalents at quarter-end were $516.6 million; total debt reduced to $293 million after early repayments.

• Net income for Q2 2026 was $108.6 million, up from $27.2 million in Q2 2025, aided by a favorable Italian tax ruling.

Outlook and guidance

• 2026 revenue growth guidance raised to 8%-9% (constant currency), with a 1% FX tailwind expected.

• Adjusted EPS guidance increased to $4.30-$4.40; adjusted operating income margin forecasted at 20%-21%.

• Adjusted free cash flow guidance lowered to $140M-$160M (from $160M-$180M) due to increased CapEx and strategic investments.

• Cardiopulmonary revenue growth outlook raised to 9.5%-10.5%; Neuromodulation/Epilepsy revenue growth outlook raised to 7%-8%.

• Management expects continued growth in both segments, supported by new product launches and geographic expansion.