Omnicell(OMCL) - 2025 Q2 - Quarterly Results

Executive Summary & Q2 2025 Performance Highlights Second Quarter 2025 Financial Performance Overview 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] - The company raised its full-year 2025 guidance for total revenues, non-GAAP EBITDA, and non-GAAP EPS[1] Strategic and Operational Highlights 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] - Introduced new innovations: MedTrack RFID Line and MedVision inventory management solution[2] Financial Results Second Quarter 2025 Financial Performance 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] Balance Sheet Snapshot 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 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 Omnicell Illuminate 2025 Event 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][9] - Announced new outcomes-centric offerings: MedVision and MedTrack/MedTrack - OR[9] Innovation Lab Opening 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] OmniSphere HITRUST CSF i1 Certification 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] - This certification confirms adherence to stringent security standards in the healthcare sector[13] IV TRUST Summit 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] 2025 Guidance Q3 and Full Year 2025 Guidance Update 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] - Modestly increased full-year 2025 guidance for total revenues, non-GAAP EBITDA, and non-GAAP EPS[10] 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 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] Company Information About Omnicell 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] - 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] Investor Relations and Social Media Disclosure 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] 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] - Other trademarks and service marks mentioned belong to their respective owners[16] Legal Disclosures Forward-Looking Statements 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] - 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] - 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] Use of Non-GAAP Financial Information 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 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][20] - 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] - Reasons for presentation include providing an additional analytical tool, ensuring consistency for investors, facilitating internal decision-making, and enabling comparisons to industry peers[24][26] Specific Non-GAAP Adjustments 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][22][25] Limitations of Non-GAAP Financial Measures 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] - 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] Non-GAAP Free Cash Flow Definition 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] - This metric is considered important for understanding and evaluating ongoing operating results and overall financial performance, as it accounts for necessary capital expenditures[27] Condensed Consolidated Financial Statements Condensed Consolidated Statements of Operations 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 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 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 Reconciliation of Gross Profit 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 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 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 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 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 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 |