Livanova Stock Earnings Reports

LivaNova reported a strong Q3 2025 with 13% organic revenue growth (11% constant currency), driven by cardiopulmonary (HLMs and consumables) and steady epilepsy performance. Cardiopulmonary revenue rose 16% to $203M; Essenz heart‑lung machine placements accelerated (now ~60% of HLM placements in 2025) and Essenz launched commercially in China in August (incremental impact expected mainly in 2026). Consumables (oxygenators) grew mid‑teens but production is being limited by third‑party component supply; the company is expanding internal capacity and plans an additional manufacturing line in H2 2026. Epilepsy revenue grew 6% with global rollout of CORE‑VNS data underway; reimbursement improvements (end‑of‑service units Level 4→5) and earlier use of VNS are expected to support penetration. Management raised full‑year 2025 organic revenue guidance to 9.5%–10.5% and constant‑currency revenue to 8.5%–9.5%. Adjusted EPS guidance was increased to $3.80–$3.90 and adjusted free cash flow to $160M–$180M. Q3 adjusted gross margin was 69%; adjusted operating margin expanded to 23% (vs 20% prior year). Cash improved to $646M and total debt fell to $434M; adjusted FCF for the first 9 months was $130M. Key near‑term investments include a printed circuit board assembly (PCBA) conversion for Essenz (noted to cost ~$0.10/share in Q4) to enable future software/service capabilities, continuing R&D for obstructive sleep apnea (OSA) and difficult‑to‑treat depression (DTD) programs, and oxygenator capacity expansion. Management emphasized disciplined execution, margin expansion, and that more detail on long‑term strategy and 2026 plans will be provided at Investor Day on November 12.