Masimo (MASI) investor relations material

Strategic focus and business transformation

• Refocused on core healthcare and medical technology markets, divested non-core assets, and executed new and renewed partnerships, including a multi-year agreement with Philips.

• Leadership team blends long-tenured and new talent, emphasizing operational excellence, commercial strength, and a unified sales structure.

• Strategy centers on focus, innovation, and execution, targeting significant market opportunities in patient monitoring and advanced technologies.

• Shifted away from consumer products to concentrate on high-barrier, recurring-revenue healthcare business.

• Infrastructure and data systems investment identified as a key area for future improvement.

Growth drivers and innovation pipeline

• Four growth pillars: U.S. pulse oximetry share gains, international expansion, advanced monitoring, and new product launches, with three innovation waves planned through 2028 and beyond.

• U.S. pulse ox market share targeted to rise from 55% toward 70-75%, with new AI-enabled sensors and algorithms (OIRD, AFib) launching in 2026.

• International share (currently 35%) to be increased, focusing on underpenetrated regions and a Japan turnaround initiative.

• Advanced monitoring (capnography, brain, hemodynamics) expected to drive 10%+ growth and 30% of total growth, leveraging new commercial structures.

• Ten new products to launch over three years, including next-gen Root platform, sensors, monitors, and wearables, with launches accelerating post-2027.

Financial guidance and performance targets

• Long-range plan targets 7%-10% annual revenue growth (CAGR), with acceleration as new products scale.

• FY2025 non-GAAP revenue guidance: $1,510M–$1,530M, with EPS guidance of $5.40–$5.55.

• Operating margin goal of ~30% by 2028, with gross margin improvement to pre-COVID levels (targeting 66%).

• EPS target of $8.00 by 2028, driven by margin leverage, top-line growth, and disciplined capital deployment.

• $1 billion cumulative operating cash flow expected over the next three years, with 70-80% cash flow conversion and capital allocation focused on reinvestment, share buybacks, debt paydown, and tuck-in M&A.