LivaNova (LIVN) investor relations material

Executive summary

• Achieved double-digit reported and organic revenue growth for full-year 2025, with continued operating margin expansion and strong adjusted EPS and free cash flow growth.

• Robust performance in Cardiopulmonary and Neuromodulation/Epilepsy segments, driven by strong consumables demand, new system sales, and progress on strategic initiatives.

• Advanced innovation in OSA, digital health, and neuromodulation, including FDA approval for a cloud-based digital health platform and increased Medicare reimbursement for VNS Therapy.

• Strengthened leadership team and organizational capabilities, including key appointments for OSA commercialization.

• Published positive clinical outcomes for VNS Therapy in depression and RECOVER study durability data.

Financial highlights

• Full-year 2025 revenue reached $1.39B, up 10.7% reported and 11% organically; Q4 2025 revenue was $361M, up 9.5% year-over-year on a constant currency and organic basis.

• Adjusted diluted EPS for 2025 was $3.90, up 15% year-over-year; Q4 adjusted diluted EPS was $0.86.

• Adjusted gross margin for 2025 was 68.6%; adjusted operating margin was 20.6%.

• Adjusted free cash flow for 2025 was $183M, with an 85% conversion rate; year-end cash balance was $636M.

• Significant debt reduction and early repayments improved balance sheet flexibility.

Outlook and guidance

• 2026 revenue growth expected between 6%-7% on a constant currency basis, with a 1% FX tailwind.

• Adjusted operating income margin forecasted at 20%-21%; adjusted diluted EPS projected at $4.15-$4.25.

• Adjusted free cash flow expected between $160M-$180M; capital spending planned at $120M for capacity expansion and IT.

• Cardiopulmonary revenue projected to grow 7%-8%; epilepsy/neuromodulation revenue expected to grow 5.5%-6.5%.

• Continued investment in innovation, OSA product development, and pursuit of CMS coverage for VNS Therapy in DTD.