Financial Data and Key Metrics Changes - In Q4 2025, revenue was $361 million, a 9.5% increase on a constant currency and organic basis compared to the prior year [22] - Adjusted diluted earnings per share rose to $0.86 from $0.81 in Q4 2024, reflecting strong revenue growth and effective cost management [24] - Cash balance increased to $636 million from $429 million at year-end 2024, driven by improved operating cash flows [26] - Total debt decreased to $377 million from $628 million at year-end 2024 due to early repayments [26] Business Line Data and Key Metrics Changes - Cardiopulmonary segment revenue was $207 million in Q4 2025, a 10% increase year-over-year, with full-year revenue growing 13% [8] - Epilepsy segment revenue increased by 9% in Q4 2025, with full-year growth of 6%, supported by strong commercial execution globally [10][11] Market Data and Key Metrics Changes - U.S. Epilepsy revenue grew 8% year-over-year, while Europe and Rest of World regions combined saw a 17% increase [10] - The heart-lung machine (HLM) revenue grew in the mid-single digits in Q4 2025, with full-year revenue growth in the mid-teens [8] Company Strategy and Development Direction - The company aims to transform into a best-in-class med tech company, focusing on high-growth markets like obstructive sleep apnea (OSA) and leveraging competitive advantages [6][7] - Investments in innovation, digital platforms, and leadership upgrades are being prioritized to support strategic execution [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustained value for shareholders, highlighting the durability of core businesses and the potential for growth in new markets [32][34] - The company anticipates revenue growth of 6% to 7% for 2026, consistent with the 2025-2028 framework [28][31] Other Important Information - The company received FDA approval for its cloud-based digital health platform, which will enhance connected care in epilepsy [15] - The reimbursement for VNS Therapy procedures under Medicare increased significantly, which is expected to improve hospital economics and patient access [12] Q&A Session Summary Question: Insights on cardiopulmonary growth guidance for FY 2026 - Management expects continued growth drivers from Essenz upgrades, market share gains, and pricing strategies, with a moderation in price premium for Essenz [36][37] Question: Clarification on epilepsy business guidance - Management noted significant tailwinds from improved reimbursement and clinical evidence, which are expected to support growth in the epilepsy business [42][43] Question: Impact of reimbursement changes on VNS business - Management indicated that they have not seen any denials in the cohorts tracked, and the reimbursement changes are expected to support penetration of new patient implants [50] Question: Specifics on tender timing and geographic impact - Management confirmed that the shift in placements was immaterial and will be fully captured in Q1 2026, with optimism about the launch in China [52][53] Question: Updates on Medicaid reimbursement changes - Management stated that Medicaid is expected to follow Medicare reimbursement levels, although it may take time to work through state-level adjustments [82]

Core Viewpoint - The article discusses the alarming connection between climate change and the increase in obstructive sleep apnea (OSA), highlighting that rising temperatures can exacerbate this common sleep disorder, affecting both health and economic productivity [1][5][9]. Group 1: Health Implications - Obstructive sleep apnea affects over 25 million adults in the U.S., characterized by repeated breathing interruptions during sleep due to relaxed throat muscles [1][2]. - Increased environmental temperatures are linked to a 45% higher probability of experiencing OSA on certain nights [1][2]. - Untreated or severe OSA can lead to serious health issues, including dementia, Parkinson's disease, hypertension, cardiovascular diseases, anxiety, and depression, potentially shortening lifespan [5][6]. Group 2: Economic Impact - The study estimates that the rise in OSA prevalence due to global warming will result in a loss of 30 billion USD in productivity and 68 billion USD in health deterioration costs globally [1][7]. - In 2023, the increase in OSA cases led to an additional 25 million days of absenteeism across 29 countries, translating to significant economic losses [7][8]. Group 3: Research Findings - The research analyzed sleep data from 116,620 participants across 29 countries over three and a half years, using FDA-approved monitoring devices to establish the link between daily environmental temperatures and OSA [2][3]. - The study warns that the sample may underestimate the health and economic burdens, as it primarily includes participants from developed countries with air conditioning, leaving low-income groups underrepresented [8]. Group 4: Future Projections - With global average temperatures expected to rise by 2.1°C to 3.4°C, the negative impacts of high temperatures on health are likely to worsen [9][10]. - Without effective policy measures to combat global warming, the burden of OSA could double by 2100 due to rising temperatures [10].