LivaNova(US:LIVN)2025-11-05 11:03Revenue Performance - Third-quarter 2025 revenue reached $357.8 million, reflecting a 12.5% increase on a reported basis and 11.0% on a constant-currency basis compared to the prior year[4] - Cardiopulmonary revenue increased by 18.0% on a reported basis and 15.9% on a constant-currency basis, driven by sales of the Essenz Perfusion System and strong consumables demand[6] - Neuromodulation revenue grew by 6.9% on a reported basis and 6.4% on a constant-currency basis, with growth across all regions[6] - Net revenue for Q3 2025 was $357.8 million, a 12.5% increase from $318.1 million in Q3 2024[26] - Cardiopulmonary segment revenue increased by 18.0% year-over-year, reaching $203.2 million, with U.S. revenue growing by 15.1% to $71.9 million[26] - Neuromodulation segment revenue grew by 6.9% year-over-year to $149.5 million, with U.S. revenue increasing by 4.9% to $118.4 million[26] - For the nine months ended September 30, 2025, net revenue was $1,027.1 million, a 10.3% increase from $931.6 million in the same period of 2024[35] - Organic net revenue for the nine months ended September 30, 2025, was $1,027.1 million, reflecting an 11.1% increase from $920.1 million in the same period of 2024[52] Earnings and Profitability - Adjusted diluted earnings per share for the third quarter of 2025 was $1.11, up from $0.90 in the same quarter of 2024[8] - Adjusted diluted earnings per share guidance for 2025 increased to a range of $3.80 to $3.90, up from $3.70 to $3.80[10] - Adjusted free cash flow for 2025 is now expected to be between $160 million and $180 million, an increase from the previous range of $140 million to $160 million[10] - Operating income for the third quarter of 2025 was $54.0 million, compared to $35.6 million in the same quarter of 2024[7] - Net income for Q3 2025 decreased to $26.8 million from $33.0 million in Q3 2024, with diluted earnings per share at $0.49[32] - For the three months ended September 30, 2025, the adjusted net income was $61.4 million, representing a 17.2% margin on net revenue[37] - The diluted EPS for the same period was $1.11, reflecting an increase from the previous year[37] - For the nine months ended September 30, 2025, the company reported a gross profit of $317.7 million, with a gross margin of 69.1%[41] - The net loss for the nine months was $166.9 million, translating to a net loss margin of 16.3%[41] - Diluted EPS for the period was reported at ($5.01)[41] Expenses and Margins - Gross profit margin for Q3 2025 was 68.4%, slightly down from 69.5% in Q3 2024[32] - Operating income for Q3 2025 was $80.4 million, with an operating margin of 22.5%[37] - Research and development expenses decreased to $45.0 million, accounting for 12.6% of net revenue[37] - Selling, general, and administrative expenses were $122.8 million, representing 34.3% of net revenue, down from 38.7%[37] - The cost of sales for Q3 2025 was $112.9 million, leading to a gross profit of $109.5 million[37] - Selling, general, and administrative expenses totaled $359.9 million, representing 35.0% of net revenue[41] - Research and development expenses were $127.2 million, accounting for 12.4% of net revenue[41] - The operating income margin improved from 19.7% in the previous year to 21.6% in 2025[44] Cash Flow and Financial Position - Net cash provided by operating activities for the third quarter was $85.1 million, with adjusted free cash flow of $62.0 million[4] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $171.9 million, up from $104.3 million in the same period of 2024, representing a 64.6% increase[50] - Adjusted free cash flow for the three months ended September 30, 2025, was $62.0 million, after accounting for $22.9 million in capital expenditures[53] - The company’s cash and cash equivalents at the end of the period were $646.1 million, a decrease from $666.6 million at the end of September 2024[50] - Long-term debt obligations decreased to $349.0 million as of September 30, 2025, down from $549.6 million at December 31, 2024, a reduction of 36.5%[47] Future Outlook and Strategic Initiatives - Full-year 2025 revenue growth guidance raised to 8.5% to 9.5% on a constant-currency basis and 9.5% to 10.5% on an organic basis[9] - The Essenz Perfusion System was commercially launched in China, the second-largest market for heart-lung machines[4] - Future outlook includes continued focus on R&D and potential market expansion strategies[43] - The company incurred restructuring expenses related to organizational changes and impairment of investments, impacting overall financial performance[46] Balance Sheet and Liabilities - Total assets increased to $2,557.6 million as of September 30, 2025, compared to $2,506.4 million at December 31, 2024, reflecting a growth of 2.0%[47] - Total current liabilities surged to $827.6 million as of September 30, 2025, from $392.1 million at December 31, 2024, indicating a significant increase of 111.4%[47] - The income tax rate for the nine months ended September 30, 2025, was (10.0)%, compared to 76.9% for the same period in 2024[51]