Group 1 - The Cooper Companies Inc is a specialty medical device company with two business segments: CooperVision and CooperSurgical [11] - COO has a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating a solid position in the market [11][12] - The company has a Value Style Score of B, supported by a forward P/E ratio of 16.33, making it attractive for value investors [11][12] Group 2 - Five analysts have revised their earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.02 to $4.08 per share [12] - COO has an average earnings surprise of +2.5%, suggesting a positive trend in earnings performance [12]

Group 1 - The fireside chat features management from The Cooper Companies, including President and CEO Al White and Vice President Kim Duncan [1] - The format allows for audience interaction, encouraging questions from attendees [1]

Financial Data and Key Metrics Changes - The company reported organic growth of 2% in Q3, which was below the expected 5% and the street's expectations [8][31] - MyDay product line experienced double-digit growth, with MyDay multifocal growing by 20% [11] - The company anticipates a similar performance in Q4 as in Q3, with expectations of channel inventory adjustments [17][18] Business Line Data and Key Metrics Changes - MyDay's growth was attributed to successful fitting sets and trial lenses provided to optometrists, leading to increased sales [10][11] - Clarity, a private label product, faced inventory drawdowns due to new private label contracts, impacting sales negatively in Q3 [12][14] - The company expects to start replenishing private label inventory in Q4, which should help stabilize sales [17] Market Data and Key Metrics Changes - The e-commerce channel in China saw a significant reduction in inventory from six months to two months, impacting sales negatively [19][20] - The company noted a 25% reduction in sales in Q1, with similar declines in Q3, indicating challenges in the Chinese market [20][30] - The overall market growth is projected to be 4% to 6%, with the company expecting to align its growth with market trends [53][55] Company Strategy and Development Direction - The company is focusing on increasing MyDay capacity to meet demand and improve market share in the daily silicone hydrogel segment [49][56] - There is an ongoing effort to improve operational efficiency and leverage revenue growth through restructuring initiatives [78][81] - The company is considering separating its CooperVision and CooperSurgical businesses if market valuations do not improve [73][74] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market's recovery and the company's ability to capitalize on MyDay's growth potential [94] - There are indications of a positive shift in the fertility market, with expectations of mid-single-digit growth in the long term [62][66] - Management acknowledged recent challenges but believes they will be resolved, leading to improved organic growth in the future [94] Other Important Information - The company is focusing on stock buybacks and debt reduction as part of its capital allocation strategy [91] - Free cash flow is expected to improve as capital expenditures decrease and operational cash flow increases [88][89] Q&A Session Summary Question: What were the issues highlighted in CVI? - Management explained that organic growth was impacted by inventory adjustments and the transition to private label products, which caused confusion in the market [8][15] Question: What is the status of e-commerce in China? - Management confirmed that inventory levels have decreased significantly, and they do not plan to chase back lost sales aggressively [20][30] Question: How is the company addressing pricing competition? - Management noted that while there is positive pricing in the U.S., aggressive pricing competition exists in Asia Pacific, particularly in low-margin e-commerce channels [25][27] Question: What is the company's market share in silicone hydrogel dailies? - Management stated that the company holds approximately 25% market share in daily silicone hydrogels and is working to regain share lost in recent years [49][50] Question: What are the expectations for future growth? - Management expects the market to grow 4% to 6% and believes the company can achieve better growth rates by leveraging MyDay capacity [53][55]

Financial Data and Key Metrics Changes - The company reported organic growth of 2% in Q3, which was below the expected 5% and the street's expectations [4][26] - MyDay product line experienced double-digit growth, with MyDay multifocal growing by 20% [7] - The company anticipates a similar performance in Q4 as in Q3, with expectations of improved inventory levels and revenue from private label products [13][54] Business Line Data and Key Metrics Changes - MyDay's growth was attributed to successful fitting sets and trial lenses provided to optometrists, leading to increased sales [6][7] - Clarity, the private label product, faced inventory drawdowns as retailers anticipated new private label contracts, impacting sales negatively in Q3 [9][10] - The company expects to replenish private label inventory in Q4, which should help stabilize sales [11][13] Market Data and Key Metrics Changes - The e-commerce channel in China saw a significant reduction in inventory, dropping from six months to two months, impacting sales negatively [15][16] - Pricing in the U.S. remains stable, while competitive pricing pressures are noted in Asia Pacific, particularly in e-commerce channels [21][22] - The overall market growth is projected to be 4% to 6%, with the company expecting to maintain or regain market share as MyDay capacity improves [50][53] Company Strategy and Development Direction - The company is focusing on increasing MyDay production capacity to meet demand and improve market share in the daily silicone hydrogel segment [54][45] - There is an ongoing effort to enhance operational efficiency and leverage revenue growth, particularly in the CooperSurgical business [71][72] - The management is open to considering a separation of CooperVision and CooperSurgical if market valuations do not improve, but currently believes in the synergy of keeping both together [66][67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying market dynamics, expecting a return to mid-single-digit growth in the contact lens market [66][59] - The company acknowledges recent challenges in organic growth but believes that improvements in MyDay supply will lead to better performance in the future [85] - Management noted that consumer purchasing behavior remains stable, with continued demand for premium products [30][31] Other Important Information - The company is experiencing pricing pressures in certain markets but maintains a positive pricing environment overall [21][22] - Free cash flow is expected to improve as capital expenditures decrease and operational cash flow increases [79][80] - The company plans to utilize free cash flow for debt reduction and stock buybacks, indicating a more aggressive approach to returning value to shareholders [82] Q&A Session Summary Question: What were the issues affecting Q3 earnings? - Management explained that the organic growth was impacted by inventory drawdowns in Clarity due to private label contracts and reduced e-commerce sales in China [4][10][15] Question: How is the company addressing pricing competition? - Management noted that while there is aggressive pricing in Asia Pacific, they have chosen not to engage in price wars, focusing instead on maintaining profitability [22][24] Question: What is the outlook for the MyDay product line? - Management confirmed that MyDay is expected to see significant growth as production capacity increases, with double-digit growth already observed in Q3 [54][45] Question: What is the company's strategy regarding potential separation of business units? - Management stated that they would consider separating CooperVision and CooperSurgical if market valuations do not improve, but currently see value in keeping them together [66][67] Question: How does the company plan to improve free cash flow? - Management indicated that free cash flow is expected to improve as capital expenditures decrease and operational efficiencies are realized [79][80]

Core Insights - The Cooper Companies (COO) reported total revenue of $1.06 billion for the quarter ending July 2025, reflecting a year-over-year increase of 5.7% [4] - The company's international operations are crucial for assessing its financial strength and growth potential, especially in the context of a global economy [2][9] International Revenue Breakdown - EMEA (Europe, Middle East, and Africa) generated $292.1 million, accounting for 27.6% of total revenue, surpassing Wall Street's expectation of $267.71 million by +9.11% [5] - Asia Pacific contributed $140.3 million, representing 13.2% of total revenue, which was below the expected $143.68 million by -2.35% [6] Future Projections - Analysts project COO will achieve revenues of $1.06 billion for the ongoing fiscal quarter, with expected contributions from EMEA at 24.9% ($264.11 million) and Asia Pacific at 14.2% ($150.48 million) [7] - For the full year, total revenue is projected to reach $4.1 billion, indicating a 5.3% increase from the previous year, with EMEA expected to contribute $1.03 billion (25%) and Asia Pacific $561.46 million (13.7%) [8] Market Trends and Stock Performance - The Cooper Companies' reliance on international markets presents both opportunities and challenges, necessitating close monitoring of international revenue trends to forecast future performance [9] - Over the past month, the company's stock has declined by 4.9%, while the Zacks S&P 500 composite increased by 1.6%, indicating underperformance relative to the broader market [13]

Group 1 - Cooper Companies, Inc. (COO) is experiencing an upward trading trend, indicating potential bullish dynamics due to being oversold and at a support level [1][8] - The concept of being oversold occurs when a stock price falls below its typical trading range, often leading to a reversion to the mean as traders anticipate a price reversal [2][4] - Oversold conditions attract buyers, creating upward pressure on the stock price as they expect a move higher [4][8] Group 2 - The use of Bollinger Bands is one method to determine if a stock is oversold, with a stock considered oversold if it falls two standard deviations below the 20-day moving average [5][6] - Cooper Companies is currently at a support level, which is characterized by significant buy interest, often leading to price rallies after reaching this level [7][8] - The combination of being oversold and at a support level suggests a strong likelihood of Cooper Companies moving higher in the near term [8]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Unaudited Financial Statements](index=3&type=section&id=Item%201.%20Unaudited%20Financial%20Statements) This section presents the unaudited consolidated condensed financial statements for The Cooper Companies, Inc. and its subsidiaries, including statements of income and comprehensive income, balance sheets, stockholders' equity, and cash flows, along with detailed notes explaining accounting policies, acquisitions, balance sheet components, intangible assets, financing arrangements, income taxes, earnings per share, share-based compensation, stockholders' equity, contingencies, business segment information, and financial derivatives and hedging [Consolidated Condensed Statements of Income and Comprehensive Income](index=3&type=section&id=Consolidated%20Condensed%20Statements%20of%20Income%20and%20Comprehensive%20Income) This section presents consolidated income and comprehensive income statements, detailing net sales, gross profit, operating income, net income, and EPS Consolidated Condensed Statements of Income and Comprehensive Income (Three Months Ended July 31) | Metric | 2025 (Millions) | 2024 (Millions) | | :--- | :--- | :--- | | Net sales | $1,060.3 | $1,002.8 | | Gross profit | $692.0 | $663.0 | | Operating income | $175.7 | $192.5 | | Net income | $98.3 | $104.7 | | Basic EPS | $0.49 | $0.53 | | Diluted EPS | $0.49 | $0.52 | Consolidated Condensed Statements of Income and Comprehensive Income (Nine Months Ended July 31) | Metric | 2025 (Millions) | 2024 (Millions) | | :--- | :--- | :--- | | Net sales | $3,027.3 | $2,877.0 | | Gross profit | $2,031.3 | $1,918.0 | | Operating income | $542.5 | $507.3 | | Net income | $290.3 | $274.8 | | Basic EPS | $1.45 | $1.38 | | Diluted EPS | $1.45 | $1.37 | - For the three months ended July 31, 2025, net sales increased by **$57.5 million** (**5.7%**) year-over-year, while net income decreased by **$6.4 million** (**6.1%**) and diluted EPS decreased by **$0.03** (**5.8%**)[9](index=9&type=chunk) - For the nine months ended July 31, 2025, net sales increased by **$150.3 million** (**5.2%**) year-over-year, net income increased by **$15.5 million** (**5.6%**), and diluted EPS increased by **$0.08** (**5.8%**)[9](index=9&type=chunk) [Consolidated Condensed Balance Sheets](index=4&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) This section presents consolidated balance sheets, detailing assets, liabilities, and stockholders' equity as of July 31, 2025, and October 31, 2024 Consolidated Condensed Balance Sheets (As of July 31, 2025 vs. October 31, 2024) | Asset/Liability Category | July 31, 2025 (Millions) | October 31, 2024 (Millions) | Change (Millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | Total current assets | $2,137.8 | $1,951.5 | $186.3 | 9.5% | | Total assets | $12,376.7 | $12,315.2 | $61.5 | 0.5% | | Total current liabilities | $1,010.1 | $1,022.8 | $(12.7) | (1.2%) | | Total liabilities | $4,023.7 | $4,231.6 | $(207.9) | (4.9%) | | Total stockholders' equity | $8,353.0 | $8,083.6 | $269.4 | 3.3% | - Total assets increased slightly by **$61.5 million**, while total liabilities decreased by **$207.9 million**, leading to a **$269.4 million** increase in total stockholders' equity from October 31, 2024, to July 31, 2025[12](index=12&type=chunk) - Current assets saw a notable increase, primarily driven by higher trade accounts receivable and inventories[12](index=12&type=chunk) [Consolidated Condensed Statements of Stockholders' Equity](index=5&type=section&id=Consolidated%20Condensed%20Statements%20of%20Stockholders'%20Equity) This section details changes in stockholders' equity, including net income, comprehensive income, stock issuance, compensation, and repurchases Changes in Stockholders' Equity (October 31, 2024 to July 31, 2025) | Item | Amount (Millions) | | :--- | :--- | | Balance at October 31, 2024 | $8,083.6 | | Net income (9 months) | $290.3 | | Other comprehensive income (loss), net of tax (9 months) | $29.6 (Net of $68.7 loss and $98.1 gain) | | Issuance of common stock for stock plans, net | $(7.3) | | Share-based compensation expense | $55.0 | | Stock repurchase | $(93.2) | | Balance at July 31, 2025 | $8,353.0 | - Total stockholders' equity increased from **$8,083.6 million** at October 31, 2024, to **$8,353.0 million** at July 31, 2025, primarily due to net income and share-based compensation, partially offset by stock repurchases[17](index=17&type=chunk) - The Company repurchased **1.2 million** shares of common stock for **$92.8 million** during the nine months ended July 31, 2025[17](index=17&type=chunk)[61](index=61&type=chunk) [Consolidated Condensed Statements of Cash Flows](index=9&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) This section presents consolidated cash flow statements, detailing cash flows from operating, investing, and financing activities Consolidated Condensed Statements of Cash Flows (Nine Months Ended July 31) | Activity | 2025 (Millions) | 2024 (Millions) | Change (Millions) | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $548.2 | $441.2 | $107.0 | | Net cash used in investing activities | $(274.1) | $(523.0) | $248.9 | | Net cash (used in) provided by financing activities | $(261.5) | $67.6 | $(329.1) | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $17.2 | $(11.1) | $28.3 | | Cash, cash equivalents, and restricted cash at end of period | $124.9 | $109.8 | $15.1 | - Net cash provided by operating activities increased by **$107.0 million** in the first nine months of fiscal 2025 compared to 2024, primarily due to higher net income and favorable changes in operating capital[20](index=20&type=chunk)[134](index=134&type=chunk) - Cash used in investing activities decreased significantly by **$248.9 million**, mainly due to lower acquisition spending in 2025 compared to the Cook Medical acquisition in 2024[20](index=20&type=chunk)[135](index=135&type=chunk) - Cash used in financing activities increased substantially, shifting from a net inflow of **$67.6 million** in 2024 to a net outflow of **$261.5 million** in 2025, driven by net debt repayments and common stock repurchases[20](index=20&type=chunk)[136](index=136&type=chunk) [Notes to Consolidated Condensed Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Condensed%20Financial%20Statements) This section provides detailed notes on the Company's accounting policies, acquisitions, balance sheet components, and other financial disclosures [Note 1. General](index=10&type=section&id=Note%201.%20General) This note outlines the basis of presentation for the unaudited consolidated condensed financial statements, confirming adherence to GAAP and Regulation S-X, and details recently issued accounting pronouncements and their expected impact - The Company is evaluating the impact of ASU 2025-05 (Credit Losses for Accounts Receivable), effective for fiscal years after **December 15, 2025**[27](index=27&type=chunk) - ASU 2024-03 (Expense Disaggregation Disclosures) will require additional disclosure of income statement expenses, effective for fiscal years after **December 15, 2026**[28](index=28&type=chunk) - ASU 2023-07 (Segment Reporting) will enhance disclosures for operating segments, effective for fiscal years beginning after **December 15, 2023**, and interim periods within fiscal years beginning after **November 1, 2025**, with retrospective application[30](index=30&type=chunk) [Note 2. Acquisitions](index=11&type=section&id=Note%202.%20Acquisitions) This note details recent acquisitions by CooperSurgical, including obp Surgical for $100.0 million, a fertility company for $33.5 million, and select Cook Medical assets for $300.0 million, funded by cash or borrowings and primarily adding intangible assets - CooperSurgical acquired obp Surgical on **August 1, 2024**, for **$100.0 million**, primarily adding **$45.6 million** in developed technology and **$50.6 million** in goodwill[34](index=34&type=chunk) - On **June 7, 2024**, CooperSurgical acquired a fertility company for **$33.5 million**, recognized as an asset acquisition with a composite intangible asset of **$39.6 million**[35](index=35&type=chunk) - CooperSurgical completed the acquisition of select Cook Medical assets on **November 1, 2023**, for **$300.0 million** (present value **$291.6 million**), adding **$157.9 million** in technologies and **$107.2 million** in goodwill[36](index=36&type=chunk) [Note 3. Balance Sheet Components](index=11&type=section&id=Note%203.%20Balance%20Sheet%20Components) This note provides a breakdown of inventories and deferred revenue, showing total inventories increased to $881.0 million at July 31, 2025, primarily due to finished goods, and significant revenue recognized from deferred balances Inventories (In millions) | Category | July 31, 2025 | October 31, 2024 | | :--- | :--- | :--- | | Raw materials | $199.2 | $188.2 | | Work-in-process | $20.0 | $18.5 | | Finished goods | $661.8 | $596.0 | | **Total inventories** | **$881.0** | **$802.7** | - Total inventories increased by **$78.3 million** (**9.8%**) from October 31, 2024, to July 31, 2025, mainly driven by a **$65.8 million** increase in finished goods[37](index=37&type=chunk) - Revenue recognized from deferred balances was **$31.9 million** for the three months and **$96.0 million** for the nine months ended July 31, 2025[38](index=38&type=chunk) [Note 4. Intangible Assets](index=12&type=section&id=Note%204.%20Intangible%20Assets) This note details the Company's intangible assets, primarily definite-lived assets, which decreased to $1,635.9 million at July 31, 2025, due to amortization, with estimated future amortization expense of $1,634.8 million Intangible Assets with Definite Lives, Net (In millions) | Category | July 31, 2025 | October 31, 2024 | | :--- | :--- | :--- | | Customer relationships | $683.6 | $728.0 | | Composite intangible assets | $549.5 | $604.8 | | Technology | $279.6 | $322.1 | | Trademarks | $103.6 | $113.6 | | License and distribution rights and other | $18.5 | $20.7 | | **Total definite-lived intangibles, net** | **$1,634.8** | **$1,789.2** | | Intangible assets with indefinite lives, net | $1.1 | $1.8 | | **Total other intangibles, net** | **$1,635.9** | **$1,791.0** | - Total other intangibles, net, decreased by **$155.1 million** (**8.7%**) from October 31, 2024, to July 31, 2025, primarily due to amortization[39](index=39&type=chunk) Estimated Future Amortization Expenses for Intangible Assets with Definite Lives (In millions) | Fiscal Year | Amount | | :--- | :--- | | Remainder of 2025 | $48.7 | | 2026 | $189.0 | | 2027 | $174.5 | | 2028 | $170.0 | | 2029 | $165.8 | | Thereafter | $886.8 | | **Total** | **$1,634.8** | [Note 5. Financing Arrangements](index=13&type=section&id=Note%205.%20Financing%20Arrangements) This note details the Company's debt structure, showing total debt decreased to $2,478.3 million at July 31, 2025, and highlights a new $2,300.0 million Revolving Credit Agreement and compliance with all debt covenants Outstanding Debt (In millions) | Category | July 31, 2025 | October 31, 2024 | | :--- | :--- | :--- | | Short-term debt | $46.9 | $33.3 | | Long-term debt | $2,431.4 | $2,550.4 | | **Total debt** | **$2,478.3** | **$2,583.7** | - Total debt decreased by **$105.4 million** (**4.1%**) from October 31, 2024, to July 31, 2025[43](index=43&type=chunk) - The Company entered into a new **$2,300.0 million** Revolving Credit Agreement on **May 1, 2024**, with **$930.2 million** outstanding and a weighted-average interest rate of **5.43%** as of July 31, 2025[44](index=44&type=chunk)[47](index=47&type=chunk) - The **$1,500.0 million** Term Loan Facility had **$1,500.0 million** outstanding with an interest rate of **5.30%** as of July 31, 2025[48](index=48&type=chunk)[51](index=51&type=chunk) [Note 6. Income Taxes](index=14&type=section&id=Note%206.%20Income%20Taxes) This note discusses effective tax rates, which decreased to 35.3% for the three months ended July 31, 2025, due to prior year US tax return adjustments, but increased to 35.4% for the nine months due to valuation allowance changes and decreased share-based compensation benefits Effective Tax Rates | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three Months Ended July 31 | 35.3% | 36.1% | | Nine Months Ended July 31 | 35.4% | 33.6% | - The decrease in the three-month effective tax rate was primarily due to adjustments related to filing the prior year US tax return[54](index=54&type=chunk) - The increase in the nine-month effective tax rate was mainly due to changes in valuation allowance and a decrease in excess tax benefits from share-based compensation[54](index=54&type=chunk) [Note 7. Earnings Per Share](index=14&type=section&id=Note%207.%20Earnings%20Per%20Share) This note provides basic and diluted earnings per share (EPS) calculations, showing a decrease in Q3 2025 EPS to $0.49 but an increase to $1.45 for the nine months, and lists antidilutive stock options and restricted stock units Earnings Per Share (Periods Ended July 31) | Metric | Three Months 2025 | Three Months 2024 | Nine Months 2025 | Nine Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income (millions) | $98.3 | $104.7 | $290.3 | $274.8 | | Basic EPS | $0.49 | $0.53 | $1.45 | $1.38 | | Diluted EPS | $0.49 | $0.52 | $1.45 | $1.37 | | Diluted weighted-average common shares (millions) | 200.0 | 200.6 | 200.6 | 200.3 | - Stock options and restricted stock units excluded from diluted EPS calculations due to antidilutive effect were **2,289 thousand** and **589 thousand**, respectively, for the three months ended July 31, 2025[55](index=55&type=chunk) [Note 8. Share-Based Compensation](index=14&type=section&id=Note%208.%20Share-Based%20Compensation) This note details the Company's share-based compensation expense, which decreased to $16.2 million for the three months and $55.3 million for the nine months ended July 31, 2025, primarily recorded under selling, general and administrative expenses Total Share-Based Compensation Expense (In millions) | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three Months Ended July 31 | $16.2 | $17.6 | | Nine Months Ended July 31 | $55.3 | $58.7 | Related Income Tax Benefit (In millions) | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three Months Ended July 31 | $1.8 | $1.0 | | Nine Months Ended July 31 | $7.5 | $5.8 | - Share-based compensation expense decreased by **$1.4 million** (**8.0%**) for the three months and **$3.4 million** (**5.8%**) for the nine months ended July 31, 2025, compared to the prior year[58](index=58&type=chunk) [Note 9. Stockholders' Equity](index=15&type=section&id=Note%209.%20Stockholders'%20Equity) This note analyzes changes in accumulated other comprehensive loss, which improved to $(392.1) million, details share repurchases of 0.7 million shares for $52.2 million in Q3 and 1.2 million shares for $92.8 million in the nine months, and notes the cessation of semiannual dividends Accumulated Other Comprehensive Loss (In millions) | Component | July 31, 2025 | October 31, 2024 | | :--- | :--- | :--- | | Foreign Currency Translation Adjustment | $(414.4) | $(461.7) | | Minimum Pension Liability | $(4.9) | $(4.9) | | Derivative Instruments | $27.2 | $44.9 | | **Total** | **$(392.1)** | **$(421.7)** | - The Company repurchased **0.7 million** shares for **$52.2 million** in the three months and **1.2 million** shares for **$92.8 million** in the nine months ended July 31, 2025[61](index=61&type=chunk) - The Board of Directors ceased the declaration of a semiannual dividend in **December 2023**[62](index=62&type=chunk) [Note 10. Contingencies and Commitments](index=15&type=section&id=Note%2010.%20Contingencies%20and%20Commitments) This note addresses the Company's legal proceedings, expecting no material adverse effect, and discloses new lease commitments for manufacturing and R&D expansion totaling an estimated $181.8 million in undiscounted payments - The Company does not believe that the ultimate resolution of pending legal proceedings or claims will have a material adverse effect on its financial condition or results of operations[63](index=63&type=chunk) - New lease commitments for manufacturing and R&D capacity expansion amount to an estimated **$181.8 million** in undiscounted payments, with initial terms ranging from **20 to 24 years**, commencing between Q4 fiscal 2025 and fiscal 2026[64](index=64&type=chunk) [Note 11. Business Segment Information](index=16&type=section&id=Note%2011.%20Business%20Segment%20Information) This note provides financial information by reportable segment (CooperVision and CooperSurgical) and geographic regions, showing CooperVision's increased net sales and operating income, while CooperSurgical's operating income decreased despite rising net sales, with the United States and Europe as key markets Segment Net Sales (In millions, Periods Ended July 31) | Segment | Three Months 2025 | Three Months 2024 | Nine Months 2025 | Nine Months 2024 | | :--- | :--- | :--- | :--- | :--- | | CooperVision | $718.4 | $675.6 | $2,034.1 | $1,933.0 | | CooperSurgical | $341.9 | $327.2 | $993.2 | $944.0 | | **Total Net Sales** | **$1,060.3** | **$1,002.8** | **$3,027.3** | **$2,877.0** | Segment Operating Income (Loss) (In millions, Periods Ended July 31) | Segment | Three Months 2025 | Three Months 2024 | Nine Months 2025 | Nine Months 2024 | | :--- | :--- | :--- | :--- | :--- | | CooperVision | $202.6 | $172.7 | $572.9 | $487.7 | | CooperSurgical | $(4.2) | $41.3 | $39.7 | $86.9 | | Corporate | $(22.7) | $(21.5) | $(70.1) | $(67.3) | | **Total Operating Income** | **$175.7** | **$192.5** | **$542.5** | **$507.3** | - CooperVision net sales increased by **6%** for the three months and **5%** for the nine months ended July 31, 2025, driven by toric and multifocal lenses[66](index=66&type=chunk)[92](index=92&type=chunk)[96](index=96&type=chunk) - CooperSurgical operating income decreased significantly by **110%** for the three months and **54%** for the nine months ended July 31, 2025, primarily due to inventory and long-lived asset write-offs related to a product line exit[66](index=66&type=chunk)[123](index=123&type=chunk) Net Sales by Geography (In millions, Periods Ended July 31) | Region | Three Months 2025 | Three Months 2024 | Nine Months 2025 | Nine Months 2024 | | :--- | :--- | :--- | :--- | :--- | | United States | $516.2 | $511.2 | $1,527.8 | $1,460.6 | | Europe | $343.1 | $297.0 | $922.5 | $850.3 | | Rest of world | $201.0 | $194.6 | $577.0 | $566.1 | | **Total** | **$1,060.3** | **$1,002.8** | **$3,027.3** | **$2,877.0** | [Note 12. Financial Derivatives and Hedging](index=17&type=section&id=Note%2012.%20Financial%20Derivatives%20and%20Hedging) This note details the Company's use of foreign currency forward contracts and interest rate swap contracts for hedging, with $26.8 million in forward contracts and $1.6 billion notional amount in swaps, which resulted in a recognized gain in interest expense - As of July 31, 2025, the Company had **$26.8 million** in outstanding foreign currency forward contracts[69](index=69&type=chunk) - The Company had eight interest rate swap contracts with a total notional amount of **$1.6 billion** and remaining maturities of less than three years[69](index=69&type=chunk) Impact of Interest Rate Swap Contracts on Interest Expense (In millions, Periods Ended July 31) | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three Months | $(8.1) | $(14.1) | | Nine Months | $(28.2) | $(41.3) | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial performance, condition, and future outlook, including forward-looking statements, business segment overviews, detailed financial analysis, capital resources, liquidity, key risks, and accounting policies [Forward-Looking Statements](index=18&type=section&id=Forward-Looking%20Statements) This subsection highlights the inherent uncertainties and risks associated with the Company's future plans, prospects, and performance, identifying various factors that could cause actual results to differ materially from forward-looking statements - Forward-looking statements are subject to risks and uncertainties, including adverse global economic conditions, international conflicts, and foreign currency exchange rate fluctuations[74](index=74&type=chunk) - Key risks include acquisition-related adverse effects, compliance costs with healthcare regulations (HIPAA, CCPA, GDPR), major disruptions in operations or supply chain, and cybersecurity attacks[74](index=74&type=chunk) - Other significant risks involve new government laws and regulations (e.g., EU MDR, IVDR), legal costs, market acceptance of new products, increased competition, and risks related to ESG issues[77](index=77&type=chunk) [Outlook](index=20&type=section&id=Outlook) The Company expresses optimism for the long-term prospects of the worldwide contact lens and general healthcare markets, emphasizing the resilience and growth potential of its businesses, while acknowledging significant global operating risks that could adversely affect future sales and performance - The Company is optimistic about the long-term prospects for the worldwide contact lens and general health care markets[80](index=80&type=chunk) - Significant risks include uncertain global and regional business, political and economic conditions, inflation, foreign exchange rate fluctuations, regulatory developments, and supply chain disruptions[80](index=80&type=chunk) - CooperVision focuses on silicone hydrogel products, particularly single-use lenses (clariti, MyDay, MyDay Energys) and frequent replacement products (Biofinity, Avaira Vitality), and myopia management lenses (MiSight 1 day)[81](index=81&type=chunk)[82](index=82&type=chunk) - CooperSurgical competes in the fertility and women's health care market with a diversified portfolio including fertility products, medical devices, cryostorage, and contraception, emphasizing technological advances, product quality, and customer service[83](index=83&type=chunk)[84](index=84&type=chunk) [Results of Operations](index=20&type=section&id=Results%20of%20Operations) This section analyzes the Company's financial performance for the third quarter and first nine months of fiscal 2025 compared to 2024, covering net sales, gross margin, operating expenses, operating income, interest expense, other income/expense, and provision for income taxes, highlighting increased net sales but a Q3 gross margin decrease due to inventory write-offs [Net Sales](index=21&type=section&id=Net%20Sales) Net sales for CooperVision increased by 6% in Q3 and 5% for the nine months, driven by growth in toric and multifocal lenses and sphere/other lenses, with favorable foreign exchange impacts, while CooperSurgical's net sales grew by 4% in Q3 and 5% for the nine months, benefiting from acquisitions and consumable products CooperVision Net Sales by Category (In millions, Periods Ended July 31) | Category | Three Months 2025 | Three Months 2024 | % Change | Nine Months 2025 | Nine Months 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Toric and multifocal | $358.8 | $326.4 | 10% | $1,006.6 | $934.0 | 8% | | Sphere, other | $359.6 | $349.2 | 3% | $1,027.5 | $999.0 | 3% | | **Total** | **$718.4** | **$675.6** | **6%** | **$2,034.1** | **$1,933.0** | **5%** | - CooperVision's net sales growth was positively impacted by favorable foreign exchange rate fluctuations of approximately **$26.8 million** for the three months and **$4.4 million** for the nine months ended July 31, 2025[96](index=96&type=chunk) CooperSurgical Net Sales by Category (In millions, Periods Ended July 31) | Category | Three Months 2025 | Three Months 2024 | % Change | Nine Months 2025 | Nine Months 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Office and surgical | $204.8 | $197.9 | 3% | $609.5 | $571.9 | 7% | | Fertility | $137.1 | $129.3 | 6% | $383.7 | $372.1 | 3% | | **Total** | **$341.9** | **$327.2** | **4%** | **$993.2** | **$944.0** | **5%** | - CooperSurgical's office and surgical net sales increased primarily due to the acquisition of obp Surgical (**August 1, 2024**) and increased sales of Paragard contraceptive intrauterine devices[107](index=107&type=chunk)[108](index=108&type=chunk) - Fertility net sales increased due to higher revenue from consumable products and gamete services[107](index=107&type=chunk)[108](index=108&type=chunk) [Gross Margin](index=24&type=section&id=Gross%20Margin) Consolidated gross margin decreased to 65% in the three months ended July 31, 2025, from 66% in the prior year, primarily due to inventory write-offs from a product line exit, while remaining flat at 67% for the nine months - Consolidated gross margin for the three months ended July 31, 2025, decreased to **65%** from **66%** in 2024[110](index=110&type=chunk) - The decrease in Q3 gross margin was primarily driven by inventory write-offs related to a product line exit[110](index=110&type=chunk) - Consolidated gross margin remained flat at **67%** for the nine months ended July 31, 2025, compared to 2024[110](index=110&type=chunk) [Selling, General and Administrative (SGA) Expenses](index=25&type=section&id=Selling,%20General%20and%20Administrative%20(SGA)%20Expenses) SGA expenses increased for both CooperVision and CooperSurgical in the three and nine months ended July 31, 2025, with CooperVision's increase due to higher selling activities, CooperSurgical's due to asset write-offs and selling activities, and Corporate's due to higher salaries and benefits Selling, General and Administrative (SGA) Expenses (In millions, Periods Ended July 31) | Segment | Three Months 2025 | Three Months 2024 | % Change | Nine Months 2025 | Nine Months 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | CooperVision | $248.2 | $232.5 | 7% | $715.0 | $679.9 | 5% | | CooperSurgical | $150.9 | $127.1 | 19% | $423.6 | $395.1 | 7% | | Corporate | $22.6 | $21.5 | 5% | $70.0 | $67.3 | 4% | | **Total** | **$421.7** | **$381.1** | **11%** | **$1,208.6** | **$1,142.3** | **6%** | - CooperSurgical's SGA expenses increased significantly by **19%** in Q3 2025, primarily due to long-lived asset write-offs related to a product line exit and increased selling activities[114](index=114&type=chunk) - Corporate SGA expenses increased due to higher salaries and benefits in both the three and nine months ended July 31, 2025[114](index=114&type=chunk)[115](index=115&type=chunk) [Research and Development (R&D) Expenses](index=25&type=section&id=Research%20and%20Development%20(R%26D)%20Expenses) R&D expenses increased for both CooperVision and CooperSurgical in the three and nine months ended July 31, 2025, driven by higher project spending on contact lenses, manufacturing technology, surgical devices, and fertility solutions, partially offset by lower MDR costs for CooperSurgical Research and Development (R&D) Expenses (In millions, Periods Ended July 31) | Segment | Three Months 2025 | Three Months 2024 | % Change | Nine Months 2025 | Nine Months 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | CooperVision | $24.3 | $21.6 | 13% | $72.4 | $63.2 | 15% | | CooperSurgical | $20.3 | $17.4 | 17% | $58.4 | $54.2 | 8% | | **Total** | **$44.6** | **$39.0** | **14%** | **$130.8** | **$117.4** | **11%** | - CooperVision's R&D expenses increased due to higher spending on R&D projects, primarily focused on contact lenses and manufacturing technology[116](index=116&type=chunk) - CooperSurgical's R&D expenses increased due to higher R&D project spending on surgical devices and fertility solutions, partially offset by a decrease in MDR costs[117](index=117&type=chunk) [Amortization Expense](index=26&type=section&id=Amortization%20Expense) Consolidated amortization expense remained relatively flat, with CooperVision's decreasing due to fully amortized assets, while CooperSurgical's increased due to amortization of intangible assets from recent acquisitions Amortization Expense (In millions, Periods Ended July 31) | Segment | Three Months 2025 | Three Months 2024 | % Change | Nine Months 2025 | Nine Months 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | CooperVision | $5.1 | $7.9 | (35)% | $15.0 | $23.3 | (36)% | | CooperSurgical | $44.9 | $42.5 | 6% | $134.4 | $127.7 | 5% | | **Total** | **$50.0** | **$50.4** | **(1)%** | **$149.4** | **$151.0** | **(1)%** | - CooperVision's amortization expense decreased significantly due to certain intangible assets becoming fully amortized[120](index=120&type=chunk) - CooperSurgical's amortization expense increased due to the amortization of intangible assets acquired through acquisitions in the second half of fiscal 2024[120](index=120&type=chunk) [Operating Income](index=26&type=section&id=Operating%20Income) Consolidated operating income decreased by 9% in Q3 but increased by 7% for the nine months, with CooperVision showing strong growth, while CooperSurgical's operating income declined sharply due to product line exits and increased amortization, and Corporate operating loss also increased Operating Income (In millions, Periods Ended July 31) | Segment | Three Months 2025 | Three Months 2024 | % Change | Nine Months 2025 | Nine Months 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | CooperVision | $202.6 | $172.7 | 17% | $572.9 | $487.7 | 17% | | CooperSurgical | $(4.2) | $41.3 | (110)% | $39.7 | $86.9 | (54)% | | Corporate | $(22.7) | $(21.5) | 6% | $(70.1) | $(67.3) | 4% | | **Total** | **$175.7** | **$192.5** | **(9)%** | **$542.5** | **$507.3** | **7%** | - CooperSurgical's operating income decreased by **110%** in Q3 2025 and **54%** for the nine months, primarily due to inventory and long-lived asset write-offs related to a product line exit and increased amortization expense[123](index=123&type=chunk) - Corporate operating loss increased due to higher salaries and benefits expenses[124](index=124&type=chunk) [Interest Expense](index=27&type=section&id=Interest%20Expense) Interest expense decreased by 11% in the three months and 13% in the nine months ended July 31, 2025, compared to the prior year, primarily due to lower interest rates and average debt balances Interest Expense (In millions, Periods Ended July 31) | Period | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Three Months | $25.4 | $28.5 | (11)% | | Nine Months | $75.6 | $87.3 | (13)% | - The decrease in interest expense was primarily due to lower interest rates and lower average debt balances[126](index=126&type=chunk) [Other Expense, Net](index=27&type=section&id=Other%20Expense,%20Net) Other (income) expense, net, shifted from an expense of $0.3 million in Q3 2024 to income of $(1.6) million in Q3 2025, primarily due to a gain in minority interest investments, but increased to an expense of $17.2 million for the nine months, mainly due to a $15.7 million loss on disposal of a minority interest investment and foreign exchange losses Other (Income) Expense, Net (In millions, Periods Ended July 31) | Category | Three Months 2025 | Three Months 2024 | Nine Months 2025 | Nine Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Foreign exchange loss (gain) | $1.5 | $(0.5) | $5.7 | $3.2 | | Other (income) expense, net | $(3.1) | $0.8 | $11.5 | $3.1 | | **Total** | **$(1.6)** | **$0.3** | **$17.2** | **$6.3** | - Other (income) expense, net, decreased in Q3 2025 primarily due to a gain in minority interest investments[128](index=128&type=chunk) - Other expense, net, increased in the nine months ended July 31, 2025, primarily due to a **$15.7 million** loss on the disposal of a minority interest investment[128](index=128&type=chunk) [Provision for Income Taxes](index=27&type=section&id=Provision%20for%20Income%20Taxes) The effective tax rate for the three months ended July 31, 2025, was 35.3%, down from 36.1% in 2024, mainly due to prior year US tax return adjustments, while for the nine months, the rate increased to 35.4% from 33.6%, primarily due to changes in valuation allowance and a decrease in excess tax benefits from share-based compensation Effective Tax Rates (Periods Ended July 31) | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three Months | 35.3% | 36.1% | | Nine Months | 35.4% | 33.6% | - The decrease in the three-month effective tax rate was primarily due to adjustments related to filing the prior year US tax return[129](index=129&type=chunk) - The increase in the nine-month effective tax rate was primarily due to changes in valuation allowance and a decrease in excess tax benefits from share-based compensation[129](index=129&type=chunk) [Capital Resources and Liquidity](index=28&type=section&id=Capital%20Resources%20and%20Liquidity) This section discusses the Company's working capital, cash flow activities, and debt facilities, noting an increase in working capital to $1,127.7 million, improved operating cash flow, decreased investing cash flow, and a shift to net cash use in financing, with sufficient liquidity for at least 12 months - Working capital increased to **$1,127.7 million** at July 31, 2025, from **$928.7 million** at October 31, 2024, primarily due to increases in inventories and accounts receivable[132](index=132&type=chunk) Cash Flow Summary (Nine Months Ended July 31, in millions) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Operating activities | $548.2 | $441.2 | | Investing activities | $(274.1) | $(523.0) | | Financing activities | $(261.5) | $67.6 | | Net increase (decrease) in cash | $17.2 | $(11.1) | - Cash provided by operating activities increased by **$107.0 million**, while cash used in investing activities decreased by **$248.9 million**[133](index=133&type=chunk)[134](index=134&type=chunk)[135](index=135&type=chunk) - Cash used in financing activities was **$261.5 million**, primarily due to net repayments on the revolving credit, common stock repurchases, and an acquisition installment payment[136](index=136&type=chunk) - The Company has **$1,369.8 million** available under its **$2,300.0 million** Revolving Credit Facility as of July 31, 2025, and believes it has sufficient liquidity for the next 12 months[137](index=137&type=chunk)[138](index=138&type=chunk) [Estimates and Critical Accounting Policies](index=29&type=section&id=Estimates%20and%20Critical%20Accounting%20Policies) This section refers to the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2024, for information regarding estimates and critical accounting policies, stating that there have been no material changes to these policies - No material changes have occurred in the Company's estimates and critical accounting policies since the Annual Report on Form 10-K for the fiscal year ended October 31, 2024[143](index=143&type=chunk) [Accounting Pronouncements](index=29&type=section&id=Accounting%20Pronouncements) This section directs readers to Note 1. General of the Consolidated Condensed Financial Statements for information regarding new accounting pronouncements - Information on new accounting pronouncements is provided in Note 1. General of the Consolidated Condensed Financial Statements[144](index=144&type=chunk) [Item 3. Quantitative and Qualitative Disclosure About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) This section discusses the Company's exposure to market risks, primarily related to changes in interest rates and foreign currency fluctuations, and its use of derivative financial instruments to manage these risks without engaging in speculative transactions [Foreign Currency Exchange Risk](index=30&type=section&id=Foreign%20Currency%20Exchange%20Risk) The Company is exposed to foreign currency risk due to its international operations and uses foreign currency forward contracts to minimize short-term exchange rate impacts, with a hypothetical 10% change in rates resulting in an approximate $26.2 million impact on operating income for the fiscal quarter ended July 31, 2025 - The Company is exposed to foreign currency risk from foreign currency denominated receivables, payables, sales, capital expenditures, and net investments in foreign operations[148](index=148&type=chunk) - Foreign currency forward contracts are used to minimize the short-term impact of exchange rate fluctuations[148](index=148&type=chunk) - A hypothetical **10%** increase or decrease in foreign currency exchange rates would result in approximately a **$26.2 million** increase or decrease in operating income for the fiscal quarter ended July 31, 2025[149](index=149&type=chunk) [Interest Rate Risk](index=30&type=section&id=Interest%20Rate%20Risk) The Company is exposed to interest rate risk on its variable-rate revolving lines of credit and term loans, which it manages using interest rate swaps, and a 1% change in interest rates would not materially impact quarterly interest expense given its $2.5 billion in outstanding debt and existing swap contracts - The Company is exposed to risks from changes in interest rates on its variable-rate revolving lines of credit and term loans[150](index=150&type=chunk) - Interest rate swaps are used to manage interest rate risk[150](index=150&type=chunk) - A **1%** increase or decrease in interest rates would not have a material impact on quarterly interest expense, considering existing interest rate swap contracts[151](index=151&type=chunk) [Item 4. Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) This section addresses the effectiveness of the Company's disclosure controls and procedures and internal control over financial reporting, concluding that disclosure controls were not effective as of July 31, 2025, due to a material weakness in IT general controls within the CooperSurgical segment, with ongoing remediation efforts [Evaluation of Disclosure Controls and Procedures](index=30&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) Management concluded that the Company's disclosure controls and procedures were not effective as of July 31, 2025, due to a material weakness in IT general controls within the CooperSurgical segment's U.S. operations, related to inadequate personnel, training, and risk assessment processes for change management, user control monitoring, and segregation of duties in ERP systems - Disclosure controls and procedures were deemed not effective as of July 31, 2025, due to a material weakness in IT general controls[152](index=152&type=chunk) - The material weakness was identified in the U.S. operations within the CooperSurgical segment, related to the implementation and maintenance of certain enterprise resource planning systems (ERP)[153](index=153&type=chunk) - Remediation efforts include enhancing risk assessment, developing employee skill sets and training, and improving controls for change management, user access, and segregation of duties[154](index=154&type=chunk)[155](index=155&type=chunk) [Changes in Internal Control over Financial Reporting](index=31&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) Except for the material weakness in IT general controls discussed above, there have been no other material changes in the Company's internal control over financial reporting during the third quarter of fiscal 2025 - No other material changes in internal control over financial reporting were identified during the third quarter of fiscal 2025, apart from the ongoing remediation efforts for the previously disclosed material weakness[156](index=156&type=chunk) [PART II. OTHER INFORMATION](index=32&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 10. Contingencies of the Consolidated Condensed Financial Statements for information regarding legal proceedings, indicating that the Company is involved in various lawsuits and claims in the ordinary course of business, but does not expect a material adverse effect on its financial condition or results of operations - Information regarding legal proceedings is included in Note 10. Contingencies of the Consolidated Condensed Financial Statements[159](index=159&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) This section states that the Company's business faces significant risks, directing readers to Item 1A. Risk Factors in its Annual Report on Form 10-K for the fiscal year ended October 31, 2024, and confirms no material changes to previously disclosed risk factors - The Company's business faces significant risks, detailed in Item 1A. Risk Factors in its Annual Report on Form 10-K for the fiscal year ended October 31, 2024[160](index=160&type=chunk)[161](index=161&type=chunk) - No material changes to the previously disclosed risk factors have occurred[161](index=161&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section provides details on the Company's share repurchase program, noting that $163.6 million remains authorized under the $1.0 billion program as of July 31, 2025, and 724.2 thousand shares were repurchased for an average price of $73.51 per share during the three months ended July 31, 2025 - As of July 31, 2025, **$163.6 million** remains authorized for repurchase under the **$1.0 billion** 2012 Share Repurchase Program[162](index=162&type=chunk) Share Repurchases (Three Months Ended July 31, 2025) | Period | Total shares purchased (thousands) | Average price paid per share | | :--- | :--- | :--- | | June 1, 2025 to June 30, 2025 | 237.0 | $69.65 | | July 1, 2025 to July 31, 2025 | 487.2 | $73.10 | | **Total** | **724.2** | **$73.51** | [Item 3. Defaults Upon Senior Securities](index=32&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities during the reporting period - There were no defaults upon senior securities[163](index=163&type=chunk) [Item 4. Mine Safety Disclosures](index=32&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that mine safety disclosures are not applicable to the Company - Mine safety disclosures are not applicable to the Company[164](index=164&type=chunk) [Item 5. Other Information](index=32&type=section&id=Item%205.%20Other%20Information) This section reports that no director or officer of the Company adopted, terminated, or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the three months ended July 31, 2025 - No director or officer adopted, terminated, or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the three months ended July 31, 2025[165](index=165&type=chunk) [Item 6. Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including certifications from the Chief Executive Officer and Chief Financial Officer, and Inline XBRL formatted financial statements and notes - Exhibits include certifications from the CEO and CFO (**31.1, 31.2, 32.1, 32.2**) and Inline XBRL formatted financial statements and notes (**101.1, 104.1**)[167](index=167&type=chunk)

Core Viewpoint - Cooper Medical (COO.US) experienced a significant decline of over 12%, reaching a year-low of $64.92, despite reporting a 6% revenue growth in Q3, aligning with analyst expectations [1] Financial Performance - The company's Q3 revenue increased to $1.06 billion, meeting analyst forecasts [1] - Adjusted earnings per share (EPS) were reported at $1.10, exceeding expectations by $0.03 [1] Future Guidance - The company revised its revenue guidance for the fiscal year 2025 to a range of $4.08 billion to $4.1 billion, down from the previous guidance of $4.11 billion to $4.15 billion [1] - On a positive note, the adjusted EPS forecast was raised to a range of $4.08 to $4.12, up from the prior range of $4.05 to $4.11 [1]

Core Viewpoint - Cooper Medical (COO.US) experienced a significant decline of over 12%, reaching a year-low of $64.92, despite reporting a 6% revenue growth in Q3, aligning with analyst expectations [1] Financial Performance - The company's Q3 revenue increased to $1.06 billion, meeting analyst forecasts [1] - Adjusted earnings per share (EPS) were reported at $1.10, exceeding expectations by $0.03 [1] Future Guidance - The company revised its revenue guidance for the fiscal year 2025 to a range of $4.08 billion to $4.1 billion, down from the previous guidance of $4.11 billion to $4.15 billion [1] - Conversely, the adjusted EPS forecast was raised to a range of $4.08 to $4.12, up from the prior range of $4.05 to $4.11 [1]

Financial Data and Key Metrics Changes - Q3 consolidated revenues increased by 5.7% year over year, reaching $1,060 million, with organic growth of 2% [7][26] - Non-GAAP earnings per share (EPS) grew by 15% to $1.1, with free cash flow reported at $165 million [7][28] - Gross margin improved by 70 basis points to 67.3%, driven by efficiency gains and favorable foreign exchange [26] Business Line Data and Key Metrics Changes - CooperVision reported revenues of $718 million, reflecting a 6.3% increase and 2.4% organic growth, although results were below expectations due to declines in Clarity and e-commerce weakness in Asia Pacific [8][10] - CooperSurgical posted revenues of $342 million, up 4.5% or 2% organically, with fertility revenues growing 6% [20][21] Market Data and Key Metrics Changes - EMEA region grew by 14% or 6% organically, becoming CooperVision's largest revenue region globally [10] - The Americas grew by 2% or 3% organically, while Asia Pacific saw a 1% increase but a 5% organic decline [10] Company Strategy and Development Direction - The company aims to leverage the strong momentum of MyDay and upcoming product launches to outpace the contact lens market and gain market share [24] - Focus on operational excellence and disciplined cost management to support sustainable revenue growth [7][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds from Clarity and e-commerce challenges in Asia Pacific but expressed confidence in the long-term outlook for both CooperVision and CooperSurgical [20][24] - The company expects to generate approximately $2 billion in free cash flow over the next three fiscal years, with a focus on debt reduction and share repurchases [30][31] Other Important Information - The company is implementing mitigation strategies for tariffs, expecting a $24 million lower impact than previously anticipated [30] - Significant progress has been made in IT upgrades and organizational efficiency initiatives [30][71] Q&A Session Summary Question: How does the core CVI portfolio compare to the market for fiscal 2026? - Management indicated that the core portfolio is expected to be at least in line with the market, with additional growth from MiSight [37][38] Question: Why is MyDay's success impacting Clarity? - Management noted that in some markets, Clarity and MyDay were viewed similarly, leading to a shift in customer preference towards MyDay [41][42] Question: What is the outlook for the contact lens market? - Management acknowledged a slowdown in market growth but remains optimistic about future performance driven by silicone hydrogel lenses and multifocal products [19][50] Question: What are the expectations for the fertility market? - Management expects a rebound in the fertility market as clinics begin investing again, despite near-term pressures [20][110] Question: What is the situation with PARAGARD? - Management reported declining volumes for PARAGARD but offsetting revenue through pricing strategies [114][116]