Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $291 million, an increase of $14 million or 5% year-over-year and an increase of $21 million or 8% compared to the previous quarter [6][18] - GAAP earnings per share for Q2 2025 were $0.12, compared to $0.08 in Q2 2024 and a loss of $0.15 in the prior quarter [6][20] - Non-GAAP gross margin for Q2 2025 was 44.7%, an increase of 50 basis points year-over-year and 260 basis points from the prior quarter [19] - Non-GAAP earnings per share for Q2 2025 were $0.45, down from $0.51 in the same period last year and up from $0.26 in the prior quarter [20] - Free cash flow for Q2 2025 was $27 million, an increase of $17 million compared to the prior quarter [20] Business Line Data and Key Metrics Changes - Product revenue for Q2 2025 was $163 million, an increase of $7 million year-over-year and an increase of $18 million over the previous quarter [18] - Service revenue for Q2 2025 was $127 million, an increase of $7 million from the previous year and an increase of $3 million over the previous quarter [18] Market Data and Key Metrics Changes - The company is focused on expanding its market presence across both inpatient and outpatient settings, including nursing units, operating rooms, and various types of pharmacies [8] - The installed customer base has grown significantly, contributing to strong demand for the company's products [5] Company Strategy and Development Direction - The company is evolving from a device-centric model to an end-to-end medication and medical supplies management technology platform, integrating automation and intelligence [5][10] - Key strategic initiatives include expanding market presence, scaling recurring revenue, and accelerating the Omnisphere technology platform [8][10] - The launch of new products like MedVision and MedTrak aims to enhance visibility and operational efficiency in medication management [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in customer demand tracking expectations despite macroeconomic uncertainties [4][8] - The company is navigating tariff impacts, with an expected net quarterly impact of approximately $6 million for 2025 [23][24] - Future growth is anticipated to be driven by innovation and providing ROI solutions to customers [16] Other Important Information - The company unveiled an innovation lab in Austin, Texas, dedicated to addressing customer pain points through rapid prototyping [11] - Omnisphere received HITRUST CSF certification, affirming the company's commitment to cybersecurity [10] Q&A Session Summary Question: Competitive landscape and hospital purchasing behavior - Management noted that hospitals are still in the market and their buying behavior remains steady despite macroeconomic headwinds [30][39] Question: Impact of Medicaid cuts on purchasing - Management indicated that hospitals are still assessing the full impact of legislative changes and have not seen a change in purchasing behavior yet [36][39] Question: Demand for IV compounding products - Management confirmed that the IV compounding product has gained momentum and has a backlog of customers [45] Question: Software solutions for clinics - Management highlighted the importance of integrated solutions for clinics and outpatient settings, with MedVision being a key offering [52] Question: Tariff assumptions in guidance - Management confirmed that guidance assumes a 30% tariff rate for the second half of the year [82]

Company Performance - Omnicell reported quarterly earnings of $0.45 per share, exceeding the Zacks Consensus Estimate of $0.31 per share, but down from $0.51 per share a year ago, representing an earnings surprise of +45.16% [1] - The company achieved revenues of $290.56 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.99% and up from $276.79 million year-over-year [2] - Omnicell has consistently surpassed consensus EPS estimates for the last four quarters [2] Stock Outlook - The stock has underperformed, losing about 33.3% since the beginning of the year, compared to the S&P 500's gain of 8.2% [3] - The company's earnings outlook and estimate revisions will be crucial for future stock performance [4][6] - Current consensus EPS estimate for the upcoming quarter is $0.31 on revenues of $285.69 million, and for the current fiscal year, it is $1.35 on revenues of $1.13 billion [7] Industry Context - The Medical Info Systems industry, to which Omnicell belongs, is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5]

Financial Performance & Guidance - Q2 2025 total revenues reached $291 million, a 5% year-over-year increase[79] - The non-GAAP gross margin for Q2 2025 was 44.7%, a 50 bps increase[79] - Non-GAAP EBITDA for Q2 2025 was $38 million, a 4% decrease year-over-year[79] - Non-GAAP diluted earnings per share for Q2 2025 were $0.45, a $0.06 decrease[79] - The company projects total year 2025 revenue between $1.13 billion and $1.16 billion, a 3% year-over-year increase[80] - The company anticipates product bookings between $500 million and $550 million for 2025[86] - The company expects annual recurring revenue (ARR) between $610 million and $630 million for 2025[86] Strategic Focus & Growth - SaaS and Expert Services are targeted to reach 23% of total revenue in 2025[27] - The company has a robust product backlog of $647 million and annual recurring revenue of $580 million as of December 31, 2024[25] - The company is focused on expanding SaaS and Expert Services to capitalize on growth opportunities[29]

[Executive Summary & Q2 2025 Performance Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q2%202025%20Performance%20Highlights) [Second Quarter 2025 Financial Performance Overview](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Performance%20Overview) Omnicell exceeded Q2 2025 guidance for revenues, non-GAAP EBITDA, and EPS, raising full-year 2025 guidance - Omnicell exceeded Q2 2025 guidance for **revenues, non-GAAP EBITDA, and non-GAAP EPS**[1](index=1&type=chunk) - The company raised its full-year 2025 guidance for **total revenues, non-GAAP EBITDA, and non-GAAP EPS**[1](index=1&type=chunk) [Strategic and Operational Highlights](index=1&type=section&id=Strategic%20and%20Operational%20Highlights) The company experienced broad demand for solutions, especially connected devices, and introduced MedTrack RFID Line and MedVision innovations - Strong demand observed across solutions, with notable strength in **point-of-care connected devices** (XT Series automated dispensing cabinets, XTExtend console)[2](index=2&type=chunk) - Introduced new innovations: MedTrack RFID Line and MedVision inventory management solution[2](index=2&type=chunk) [Financial Results](index=1&type=section&id=Financial%20Results) [Second Quarter 2025 Financial Performance](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Performance) Omnicell's Q2 2025 total revenues increased 5%, driven by connected devices and services, with GAAP net income and EPS up, and non-GAAP metrics slightly down Q2 2025 vs Q2 2024 Financial Performance | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :----------------------- | :---------- | :---------- | :----------- | | Total Revenues | $291 million | $277 million | +5% ($14 million) | | GAAP Net Income | $6 million | $4 million | +$2 million | | GAAP Diluted EPS | $0.12 | $0.08 | +$0.04 | | Non-GAAP Net Income | $21 million | $24 million | -$3 million | | Non-GAAP Diluted EPS | $0.45 | $0.51 | -$0.06 | | Non-GAAP EBITDA | $38 million | $40 million | -$2 million | - The year-over-year increase in total revenues was driven by strength in connected devices, technical services, SaaS and Expert Services, and consumables revenues[3](index=3&type=chunk) [Balance Sheet Snapshot](index=1&type=section&id=Balance%20Sheet%20Snapshot) As of June 30, 2025, Omnicell maintained a strong liquidity position with significant cash and available credit, alongside manageable debt levels Balance Sheet as of June 30, 2025 | Metric | Amount | | :-------------------- | :----------- | | Cash and Cash Equivalents | $399 million | | Total Debt (net) | $342 million | | Total Assets | $2.1 billion | | Revolving Credit Facility Availability | $350 million (no outstanding balance) | [Cash Flow from Operations](index=1&type=section&id=Cash%20Flow%20from%20Operations) Cash flows provided by operating activities decreased in Q2 2025 compared to the same period in 2024 Cash Flows from Operating Activities | Period | Amount | | :-------------------------------- | :----------- | | Q2 2025 | $43 million | | Q2 2024 | $59 million | [Corporate Highlights](index=1&type=section&id=Corporate%20Highlights) [Omnicell Illuminate 2025 Event](index=3&type=section&id=Omnicell%20Illuminate%202025%20Event) Omnicell's Illuminate 2025 event showcased best practices in pharmacy and nursing care technology, introducing new MedVision and MedTrack offerings - Hosted Omnicell Illuminate 2025, a hybrid event showcasing best practices for technology-driven pharmacy and nursing care[7](index=7&type=chunk)[9](index=9&type=chunk) - Announced new outcomes-centric offerings: MedVision and MedTrack/MedTrack - OR[9](index=9&type=chunk) [Innovation Lab Opening](index=3&type=section&id=Innovation%20Lab%20Opening) Omnicell opened a new Innovation Lab in Austin, Texas, to develop and test new healthcare solutions, coinciding with Illuminate 2025 - Grand opening of a new Innovation Lab in Austin, Texas, focused on developing and testing new solutions for the healthcare industry[13](index=13&type=chunk) [OmniSphere HITRUST CSF i1 Certification](index=3&type=section&id=OmniSphere%20HITRUST%20CSF%20i1%20Certification) OmniSphere, Omnicell's cloud-native software engine, achieved HITRUST CSF i1 certification in June 2025, demonstrating stringent healthcare security adherence - OmniSphere, the next-generation cloud-native software workflow engine and data platform, received **HITRUST CSF i1 certification** in June 2025[13](index=13&type=chunk) - This certification confirms adherence to **stringent security standards** in the healthcare sector[13](index=13&type=chunk) [IV TRUST Summit](index=3&type=section&id=IV%20TRUST%20Summit) Omnicell's inaugural IV TRUST Summit explored improving patient safety through automation and driving adoption of IV compounding automation - Hosted the inaugural IV TRUST Summit to explore improving patient safety through automation and drive adoption of IV compounding automation[13](index=13&type=chunk) [2025 Guidance](index=3&type=section&id=2025%20Guidance) [Q3 and Full Year 2025 Guidance Update](index=3&type=section&id=Q3%20and%20Full%20Year%202025%20Guidance%20Update) Omnicell reaffirmed 2025 product bookings and ARR outlook, while modestly increasing full-year guidance for total revenues, non-GAAP EBITDA, and EPS - Reaffirmed full-year 2025 product bookings and Annual Recurring Revenue outlook[10](index=10&type=chunk) - Modestly increased full-year 2025 guidance for **total revenues, non-GAAP EBITDA, and non-GAAP EPS**[10](index=10&type=chunk) Q3 and Full Year 2025 Guidance | Metric | Q3 2025 Guidance | Full Year 2025 Guidance | | :------------------------ | :------------------- | :---------------------- | | Product Bookings | Not provided | $500 million - $550 million | | Annual Recurring Revenue | Not provided | $610 million - $630 million | | Total Revenues | $290 million - $300 million | $1.130 billion - $1.160 billion | | Product Revenues | $165 million - $170 million | $625 million - $640 million | | Service Revenues | $125 million - $130 million | $505 million - $520 million | | Technical Services Revenues | Not provided | $245 million - $250 million | | SaaS and Expert Service Revenues | Not provided | $260 million - $270 million | | Non-GAAP EBITDA | $28 million - $32 million | $130 million - $145 million | | Non-GAAP Earnings Per Share | $0.30 - $0.37 | $1.40 - $1.65 | [Non-GAAP Guidance Disclaimer](index=3&type=section&id=Non-GAAP%20Guidance%20Disclaimer) Omnicell does not provide GAAP net income or EPS guidance, nor a reconciliation of forward-looking non-GAAP measures, due to unpredictable GAAP items - Company does not provide GAAP net income or EPS guidance due to the inability to predict certain significant GAAP items[11](index=11&type=chunk) [Company Information](index=4&type=section&id=Company%20Information) [About Omnicell](index=4&type=section&id=About%20Omnicell) Since 1992, Omnicell has transformed pharmacy and nursing care with solutions including robotics, smart devices, software, data analytics, and expert services - Omnicell transforms pharmacy and nursing care with solutions including robotics, smart devices, intelligent software, data analytics, and expert services[14](index=14&type=chunk) - Solutions aim to uncover cost savings, improve labor efficiency, establish new revenue streams, enhance supply chain control, support compliance, and advance the Autonomous Pharmacy vision[14](index=14&type=chunk) [Investor Relations and Social Media Disclosure](index=4&type=section&id=Investor%20Relations%20and%20Social%20Media%20Disclosure) Omnicell may use its investor relations website and social media (LinkedIn, Facebook) to disclose material non-public information, complying with Reg FD - Company may use its investor relations website and social media (LinkedIn, Facebook) for disclosing material non-public information, adhering to Reg FD[15](index=15&type=chunk) [Trademarks](index=4&type=section&id=Trademarks) The press release includes trademarks of Omnicell and its subsidiaries, along with trademarks and service marks of other companies - OMNICELL and its logo are **registered trademarks** of Omnicell, Inc. or its subsidiaries[16](index=16&type=chunk) - Other trademarks and service marks mentioned belong to their respective owners[16](index=16&type=chunk) [Legal Disclosures](index=4&type=section&id=Legal%20Disclosures) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section identifies forward-looking statements subject to numerous risks and uncertainties, cautioning investors against undue reliance, with no obligation to update unless legally required - Statements using words like "expect," "intend," "may," "will," "should," "would," "could," "plan," "potential," "anticipate," "believe," "forecast," "guidance," "outlook," "goals," "target," "estimate," "seek," "predict," "project," and similar expressions are forward-looking[17](index=17&type=chunk) - Forward-looking statements are subject to substantial known and unknown risks and uncertainties, including economic conditions, demand reduction, installation delays, international operations risks, and competition[17](index=17&type=chunk) - Investors are cautioned not to place undue reliance on these statements, and Omnicell assumes no obligation to update them publicly, except as required by law[18](index=18&type=chunk) [Use of Non-GAAP Financial Information](index=5&type=section&id=Use%20of%20Non-GAAP%20Financial%20Information) Omnicell uses non-GAAP financial measures to supplement GAAP results, providing insights into core operating performance and facilitating period-to-period comparisons [Management's Rationale for Non-GAAP Measures](index=5&type=section&id=Management%27s%20Rationale%20for%20Non-GAAP%20Measures) Management uses non-GAAP measures to evaluate performance, analyze strategy, and make operating decisions, as they provide supplemental information on core operating results - Management uses non-GAAP measures to evaluate performance, analyze strategy, and make operating decisions, as they provide supplemental information on core operating results[19](index=19&type=chunk)[20](index=20&type=chunk) - Non-GAAP measures exclude items whose magnitude and timing are largely outside Omnicell's control, are unrelated to ongoing operations, are unusual, or are non-operational/non-cash expenses[23](index=23&type=chunk) - Reasons for presentation include providing an additional analytical tool, ensuring consistency for investors, facilitating internal decision-making, and enabling comparisons to industry peers[24](index=24&type=chunk)[26](index=26&type=chunk) [Specific Non-GAAP Adjustments](index=5&type=section&id=Specific%20Non-GAAP%20Adjustments) This section details specific adjustments for non-GAAP reconciliation, including share-based compensation, acquired intangible amortization, and acquisition-related expenses - Non-GAAP adjustments include: * Share-based compensation expense (non-cash, not requiring cash settlement) * Amortization of acquired intangible assets (non-cash, not reflecting core cash-generating performance) * Acquisition-related expenses (unrelated to ongoing operations, variable) * Amortization of debt issuance costs (non-cash, not reflecting core cash-generating performance) * RDS restructuring charges (nonrecurring, primarily inventory write-down, severance) * Executives transition costs (unrelated to ongoing operations, non-recurring severance) * Legal and regulatory expenses (non-recurring settlement amounts for government contract claims) * Management severance costs (associated with senior leadership team restructuring)[20](index=20&type=chunk)[22](index=22&type=chunk)[25](index=25&type=chunk) [Limitations of Non-GAAP Financial Measures](index=8&type=section&id=Limitations%20of%20Non-GAAP%20Financial%20Measures) Non-GAAP measures have inherent limitations and should not be considered in isolation or as a substitute for GAAP results, as they may not be comparable across companies - Non-GAAP measures have limitations and should not be considered in isolation or as a substitute for GAAP results[28](index=28&type=chunk) - Limitations include: * Equity incentive plans are ongoing GAAP expenses * Other companies may calculate non-GAAP measures differently, limiting comparability * Free cash flow does not represent the total change in cash balance[30](index=30&type=chunk) [Non-GAAP Free Cash Flow Definition](index=8&type=section&id=Non-GAAP%20Free%20Cash%20Flow%20Definition) Non-GAAP free cash flow is net cash from operations minus capital expenditures, a key metric for evaluating ongoing operating results and financial performance - Non-GAAP free cash flow is defined as net cash provided by operating activities less cash used for software development for external use and purchases of property and equipment[27](index=27&type=chunk) - This metric is considered important for understanding and evaluating ongoing operating results and overall financial performance, as it accounts for necessary capital expenditures[27](index=27&type=chunk) [Condensed Consolidated Financial Statements](index=9&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The consolidated statements of operations detail revenues, costs, and expenses, showing Q2 2025 GAAP net income and a net loss for the six months ended June 30, 2025 Condensed Consolidated Statements of Operations (Three Months Ended June 30, in thousands) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :-------------------------------- | :------------------ | :------------------ | | Product revenues | $163,172 | $156,580 | | Service revenues | $127,390 | $120,208 | | Total revenues | $290,562 | $276,788 | | Gross profit | $127,678 | $114,351 | | Income from operations | $8,120 | $3,224 | | Net income (loss) | $5,639 | $3,735 | | Diluted EPS | $0.12 | $0.08 | Condensed Consolidated Statements of Operations (Six Months Ended June 30, in thousands) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :-------------------------------- | :------------------ | :------------------ | | Product revenues | $308,340 | $289,875 | | Service revenues | $251,890 | $233,064 | | Total revenues | $560,230 | $522,939 | | Gross profit | $238,614 | $206,974 | | Income (loss) from operations | $(3,499) | $(18,623) | | Net income (loss) | $(1,384) | $(11,941) | | Diluted EPS | $(0.03) | $(0.26) | [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet provides a snapshot of assets, liabilities, and equity as of June 30, 2025, and December 31, 2024, showing increased total assets and stockholders' equity Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | Cash and cash equivalents | $399,004 | $369,201 | | Total current assets | $844,776 | $815,493 | | Total assets | $2,145,496 | $2,120,960 | | Total current liabilities | $594,392 | $595,678 | | Total liabilities | $881,877 | $877,647 | | Total stockholders' equity | $1,263,619 | $1,243,313 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The cash flow statement details operating, investing, and financing activities for the six months ended June 30, 2025 and 2024, showing decreased operating cash and increased investing cash in 2025 Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30, in thousands) | Activity | 2025 | 2024 | | :-------------------------------- | :--------- | :--------- | | Net cash provided by operating activities | $68,679 | $108,653 | | Net cash used in investing activities | $(31,662) | $(25,889) | | Net cash used in financing activities | $(7,431) | $(4,702) | | Net increase in cash, cash equivalents, and restricted cash | $32,886 | $77,260 | | Cash, cash equivalents, and restricted cash at end of period | $431,500 | $578,239 | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=12&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) [Reconciliation of Gross Profit](index=12&type=section&id=Reconciliation%20of%20Gross%20Profit) This section reconciles GAAP to non-GAAP gross profit by adjusting for share-based compensation, acquired intangibles, and restructuring charges, resulting in higher non-GAAP gross profit and margin Reconciliation of Gross Profit (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | | :-------------------------- | :--------- | :--------- | | GAAP gross profit | $127,678 | $114,351 | | Non-GAAP gross profit | $129,872 | $122,289 | | GAAP gross margin | 43.9% | 41.3% | | Non-GAAP gross margin | 44.7% | 44.2% | [Reconciliation of Operating Expenses](index=12&type=section&id=Reconciliation%20of%20Operating%20Expenses) This section reconciles GAAP to non-GAAP operating expenses by excluding non-cash and non-recurring items, leading to lower non-GAAP expenses and a reduced percentage of total revenues Reconciliation of Operating Expenses (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | | :-------------------------------- | :--------- | :--------- | | GAAP operating expenses | $119,558 | $111,127 | | Non-GAAP operating expenses | $105,739 | $97,477 | | GAAP operating expenses % to total revenues | 41.1% | 40.1% | | Non-GAAP operating expenses as a % of total revenues | 36.4% | 35.2% | [Reconciliation of Income (Loss) from Operations](index=12&type=section&id=Reconciliation%20of%20Income%20(Loss)%20from%20Operations) This section reconciles GAAP to non-GAAP income from operations by adding back non-cash and non-recurring expenses, significantly improving operating income and margin Reconciliation of Income (Loss) from Operations (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | | :-------------------------------- | :--------- | :--------- | | GAAP income (loss) from operations | $8,120 | $3,224 | | Non-GAAP income from operations | $24,133 | $24,812 | | GAAP operating income (loss) % to total revenues | 2.8% | 1.2% | | Non-GAAP operating margin | 8.3% | 9.0% | [Reconciliation of Net Income (Loss) and EPS](index=13&type=section&id=Reconciliation%20of%20Net%20Income%20(Loss)%20and%20EPS) This section reconciles GAAP net income (loss) and diluted EPS to non-GAAP equivalents by adjusting for non-cash, non-recurring items and their tax effects, resulting in higher non-GAAP net income and EPS Reconciliation of Net Income (Loss) and EPS (Three Months Ended June 30, in thousands, except per share data) | Metric | 2025 | 2024 | | :-------------------------------- | :--------- | :--------- | | GAAP net income (loss) | $5,639 | $3,735 | | Non-GAAP net income | $21,074 | $23,664 | | GAAP net income (loss) per share - diluted | $0.12 | $0.08 | | Non-GAAP net income per share - diluted | $0.45 | $0.51 | [Reconciliation of EBITDA](index=13&type=section&id=Reconciliation%20of%20EBITDA) This section reconciles GAAP net income (loss) to non-GAAP EBITDA by adding back interest, taxes, depreciation, amortization, share-based compensation, and other non-GAAP adjustments Reconciliation of EBITDA (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | | :-------------------------------- | :--------- | :--------- | | GAAP net income (loss) | $5,639 | $3,735 | | Non-GAAP EBITDA | $38,375 | $39,849 | | Non-GAAP EBITDA margin | 13.2% | 14.4% | [Reconciliation of Free Cash Flow](index=15&type=section&id=Reconciliation%20of%20Free%20Cash%20Flow) This section reconciles GAAP net cash from operating activities to non-GAAP free cash flow by subtracting software development costs and property/equipment purchases Reconciliation of Free Cash Flow (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | | :-------------------------------- | :--------- | :--------- | | GAAP net cash provided by operating activities | $42,755 | $58,700 | | Non-GAAP free cash flow | $26,832 | $45,151 |

Investors with an interest in Medical Info Systems stocks have likely encountered both Omnicell (OMCL) and Doximity (DOCS) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look. Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revis ...

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Omnicell, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Omnicell is expected to report quarterly earnings of $0.31 per share, reflecting a year-over-year decrease of 39.2% [3]. - Revenues are projected to be $276.76 million, indicating no change from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 42.1% higher in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [12]. Earnings Surprise Prediction - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - Omnicell currently holds a Zacks Rank of 4, complicating predictions for an earnings beat [12]. Historical Performance - In the last reported quarter, Omnicell exceeded expectations with earnings of $0.26 per share, a surprise of +62.50% [13]. - The company has beaten consensus EPS estimates in all of the last four quarters [14]. Market Reaction Considerations - An earnings beat or miss may not solely dictate stock movement, as other factors can influence investor sentiment [15]. - Omnicell does not appear to be a compelling candidate for an earnings beat, suggesting investors should consider additional factors before making decisions [17].

Company Vision and Strategy - Omnicell's mission is to be the care provider's most trusted partner, with a vision to accelerate pharmacy to perfection[10, 35] - The company aims to execute on the vision of a fully Autonomous Pharmacy, leveraging cloud technology to transform pharmacy care delivery[36, 116] - Omnicell differentiates itself through a comprehensive portfolio across the care continuum, serving 50% of US providers[36, 116] Market and Growth Opportunities - Omnicell estimates a total addressable market of $20 billion for Point of Care, $15 billion for Central Pharmacy, and significant opportunities in Retail, Institutional, and Payer segments over 10 years[43, 44] - The company projects revenue growth to $1450-$1550 million by 2024, driven by a ~17% CAGR in Central Pharmacy, ~10%-12% CAGR in Point of Care, and ~10% CAGR in Retail, Institutional, and Payer segments[110, 116] - Omnicell's XT Automated Dispensing Cabinets are early in their replacement cycle, showing 18% progress as of 3Q19[44] Financial Performance and Goals - Omnicell's revenue for 2019 is estimated to be between $889 and $895 million[106, 110, 128] - The company is committed to increasing non-GAAP operating margin to ~18% by 2024[108, 113, 116] - Omnicell targets a free cash flow conversion of 90%-110% of GAAP Net Income[115, 116] Medication Management and Safety - Medication errors lead to significant losses, including $300 billion annually, 1 million ER visits, and 125,000 hospitalizations[15] - A significant percentage of prescriptions, 20%-30%, are never filled, contributing to suboptimal outcomes[15] - Drug diversion costs $72.5 billion, highlighting the need for improved medication management and security[23]

Financial Performance & Guidance - Omnicell预计2020财年产品预订额约为10亿美元[7] - Omnicell预计2020财年总收入为8.9亿至8.92亿美元[7] - Omnicell预计2020财年Non-GAAP EBITDA为1.57亿至1.59亿美元[7] - Omnicell预计2020财年Non-GAAP每股收益为2.46至2.51美元[7] - Omnicell预计2021财年总收入为10.85亿至11.05亿美元[7] - Omnicell预计2021财年Non-GAAP EBITDA为2.28亿至2.4亿美元[7] - Omnicell预计2021财年Non-GAAP每股收益为3.38至3.58美元[7] Growth & Market Position - Omnicell在医疗保健数字化转型中占据领先地位，潜在市场规模超过700亿美元[7, 10] - Omnicell 目标是2021-2025年收入复合年增长率为14-15%（有机增长11-12%，无机增长3%）[7, 10] - Omnicell 目标是从2021-2025年Non-GAAP EBITDA利润率提高约400个基点[7, 10] - Omnicell 目标是SaaS、订阅软件和技术支持服务在2020-2025年的收入复合年增长率约为50%[7, 10]

Core Insights - Omnicell has launched new products, including RFID products under the MedTrack line and a web-enabled software named MedVision, aimed at improving medication management and workflow efficiency in healthcare settings [1][4][6] - The company’s market capitalization is currently $1.31 billion, with a projected revenue growth of 1.4% for 2025 according to Zacks Consensus Estimate [3] - The global Hospital Asset Tracking and Inventory Management Systems market is expected to reach $31.05 billion by 2025, growing at a CAGR of 5.5% through 2030, indicating a favorable industry environment for Omnicell [10] Company Developments - The MedTrack line includes MedTrack – OR, which is designed to enhance medication tracking in operating rooms and streamline workflows during surgical emergencies [5] - MedVision software facilitates real-time inventory management for outpatient clinics, allowing automatic reordering from central pharmacies when stock levels are low [6][7] - Omnicell has opened an Innovation Lab in Austin, Texas, to develop new technologies addressing challenges in medication and supply management [11] Market Sentiment - Following the product announcements, Omnicell shares remained stable in after-hours trading, with expectations that the new solutions will enhance market sentiment towards the stock [2] - Over the past three months, Omnicell shares have declined by 27.4%, contrasting with a 9.5% decline in the broader industry [12]

Revenue and Market Performance - For the three months ended March 31, 2025, revenues generated in the United States represented 92% of total revenues, up from 89% for the same period in 2024[144]. - In 2023, the United States spent $723 billion on prescription drugs, marking a 13.6% increase from 2022, the largest annual spending increase in 20 years[154]. - Total revenues for the three months ended March 31, 2025, were $269.7 million, an increase of $23.5 million or 10% compared to $246.2 million in the same period of 2024[164]. - Product revenues increased by $11.9 million or 9% to $145.2 million, while service revenues rose by $11.6 million or 10% to $124.5 million[164][166]. - International sales represented 8% of total revenues for the three months ended March 31, 2025, down from 11% in the same period of 2024[167]. - The company anticipates that specialty medications will account for nearly 60% of U.S. total spending on medications, projected to be approximately $420 billion in 2025[158]. - The retail pharmacy market is expected to grow at a compound annual growth rate of around 7.1%, reaching an approximate market valuation of $1.2 trillion by 2032[158]. Financial Metrics and Performance - Gross profit for the three months ended March 31, 2025, was $110.9 million, representing a gross margin of 41%, up from $92.6 million and a gross margin of 38% in the same period of 2024[170][173]. - Operating expenses totaled $122.6 million, an increase of $8.1 million or 7% compared to $114.5 million in the same period of 2024, with research and development expenses decreasing by 7%[174]. - The cost of product revenues decreased by $6.9 million or 7% to $85.6 million, while the cost of service revenues increased by $12.1 million or 20% to $73.1 million[170][171]. - The company recorded a benefit from income taxes of $2.5 million for the three months ended March 31, 2025, compared to $2.2 million in the same period of 2024, reflecting a 16% increase[177]. - Cash and cash equivalents increased to $386.8 million as of March 31, 2025, from $369.2 million at December 31, 2024, representing a growth of approximately 4.3%[180]. - Working capital rose to $232.1 million as of March 31, 2025, compared to $219.8 million at December 31, 2024, an increase of about 5.9%[181]. - Net cash provided by operating activities was $25.9 million for the three months ended March 31, 2025, down from $50.0 million for the same period in 2024, reflecting a decrease of approximately 48.8%[195][196]. - Net cash used in investing activities was $15.7 million for the three months ended March 31, 2025, compared to $12.3 million for the same period in 2024, indicating an increase of about 27.6%[198]. - The company reported a net increase in cash, cash equivalents, and restricted cash of $15.8 million for the three months ended March 31, 2025, compared to an increase of $49.0 million for the same period in 2024[193]. Strategic Focus and Initiatives - The company has transitioned to utilizing product bookings and Annual Recurring Revenue (ARR) as key performance metrics starting in 2025[147]. - Product bookings are defined as the value of non-cancelable contracts for connected devices and software licenses, excluding freight revenue[148]. - ARR includes expected revenue from consumables, technical services, and SaaS and Expert Services, reflecting the company's focus on recurring revenue streams[150]. - The company is focused on addressing significant challenges in pharmacy practice, which may drive demand for increased automation and improved medication management outcomes[156]. - The company aims to enhance its solutions by incorporating artificial intelligence technology to improve medication management[141]. - The company is committed to expanding its product and service offerings to advance the vision of the Autonomous Pharmacy, which targets zero-error medication management[143]. - The company continues to invest significantly in research and development to advance the Autonomous Pharmacy vision and enhance medication management outcomes[157]. Operational and Market Risks - The current U.S. administration imposed tariffs on imports, including a 145% tariff on all imports from China, which may impact the company's operations[146]. - The company is exposed to market risks related to foreign currency exchange rates and interest rates, with no outstanding balance under the current credit agreement as of March 31, 2025[202][204]. - There were no significant changes in market risk exposures during the three months ended March 31, 2025, compared to the previous disclosures[207]. Debt and Financial Obligations - The company had $350.0 million available under the Current Revolving Credit Facility as of March 31, 2025, with no outstanding balance, indicating full compliance with all covenants[184]. - The company completed a private offering of $172.5 million aggregate principal amount of 1.00% Convertible Senior Notes due 2029, receiving proceeds of $166.3 million net of transaction fees[186]. - Future cash uses are expected to focus on working capital, capital expenditures, and potential acquisitions, with a remaining $2.7 million for stock repurchases as of March 31, 2025[188][189]. - Contractual obligations totaled $535.4 million as of March 31, 2025, with significant components including $49.7 million in operating leases and $356.4 million in convertible senior notes[200]. - As of March 31, 2025, the net carrying amount of the 2025 Notes was $174.6 million and the 2029 Notes was $166.7 million[205]. - The fair market value of the 2025 Notes was $170.5 million and the 2029 Notes was $161.5 million as of March 31, 2025[205]. - The company did not have any outstanding interest rate swap agreements as of March 31, 2025[206].