Financial Data and Key Metrics Changes - The company reported total revenue of $393.9 million for Q4 2025, representing an 11% year-over-year increase on a GAAP basis and a 10% increase on a constant currency basis [6][7] - Non-GAAP operating margin increased by 138 basis points year-over-year to 21% [7][18] - Non-GAAP EPS grew by 12% year-over-year, exceeding expectations [8] - Free cash flow for Q4 was $74 million, up 13% year-over-year, marking a quarterly record for the company [8][19] - For the full year 2025, the company achieved constant currency revenue growth of 11% and generated nearly $216 million in free cash flow, up 16% year-over-year [19][20] Business Line Data and Key Metrics Changes - Q4 total revenue growth was driven by a 9% increase in the cardiovascular segment and a 15% increase in the endoscopy segment [10] - Cardiac Intervention product sales increased by 21%, with organic growth driven by strong sales in EP, CRM, angiography, and access products [11][12] - Peripheral Intervention products sales increased by 13%, primarily driven by strong sales in Radar Localization and delivery systems [13] - Sales of custom procedural solutions products increased by 4%, while OEM products sales decreased by 15% [14][15] Market Data and Key Metrics Changes - U.S. sales increased by 12% year-over-year, while international sales increased by 6% [16] - U.S. organic constant currency sales growth was 8%, and international organic constant currency sales growth was 4% [16] Company Strategy and Development Direction - The company aims to drive strong execution globally and successfully complete its Continued Growth Initiatives program, targeting a 5%-7% organic constant currency revenue CAGR for the three-year period ending December 31, 2026 [9][37] - The divestiture of the DualCap product line is expected to create additional manufacturing capacity and free up resources for higher-margin products [24][38] - The company is focused on both internal product innovation and strategic M&A to enhance its competitive position [36][59] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the dynamic global macro environment but expressed confidence in the company's strong execution and commitment to financial targets [9][19] - The company expects solid constant currency growth and non-GAAP operating margin expansion in 2026, despite potential headwinds from tariffs and trade policies [22][25] Other Important Information - The company introduced financial guidance for 2026, projecting total GAAP net revenue growth of 6%-8% year-over-year and free cash flow of at least $200 million [22][27] - The expected impact of tariffs on non-GAAP EPS for 2026 is approximately $0.19 per share [25][26] Q&A Session Summary Question: What are the additional gross margin drivers for the company? - Management emphasized the importance of mix, pricing, cost discipline, and SKU rationalization to drive gross margin improvements [42][44] Question: How is the WRAPSODY product performing in the outpatient setting? - Management acknowledged that initial revenue expectations for WRAPSODY were missed but expressed confidence in achieving the $7 million revenue target for 2026 [46][48] Question: What factors are influencing the guidance for free cash flow in 2026? - Management indicated that the guidance reflects a conservative approach due to timing-based factors and ongoing capital expenditures [52][54] Question: What areas is the company looking at for potential M&A? - The company is focusing on both foundational and therapeutic products, seeking strategic opportunities that align with its growth drivers [56][59] Question: What is the outlook for the OEM business? - Management noted that the OEM business is expected to normalize to mid-to-high single-digit growth, despite recent inventory destocking [62][63]

Financial Data and Key Metrics Changes - The company reported total revenue of $393.9 million for Q4 2025, an 11% increase year-over-year on a GAAP basis and a 10% increase on a constant currency basis [6][7] - Non-GAAP operating margin increased by 138 basis points year-over-year to 21% [7][18] - Non-GAAP EPS grew by 12%, exceeding expectations, with Q4 net income at $62.5 million or $1.04 per share, compared to $56.3 million or $0.93 per share in the prior period [8][18] - Free cash flow for Q4 was $74 million, a 13% increase year-over-year, marking a quarterly record for the company [8][19] Business Line Data and Key Metrics Changes - Total revenue growth in Q4 was driven by a 9% increase in the cardiovascular segment and a 15% increase in the endoscopy segment [10] - Cardiac Intervention product sales increased by 21%, while Peripheral Intervention products sales increased by 13% [12][13] - Sales of custom procedural solutions products increased by 4%, driven by high teens growth in kit sales [14] Market Data and Key Metrics Changes - U.S. sales increased by 12% year-over-year, while international sales increased by 6% [16] - U.S. organic constant currency sales growth was 8%, while international organic constant currency sales growth was 4% [16] Company Strategy and Development Direction - The company aims for solid constant currency growth and non-GAAP operating margin expansion for 2026, with a focus on executing its Continued Growth Initiatives program [9][10] - The divestiture of the DualCap product line is expected to create additional manufacturing capacity and free up resources for higher-margin products [24][38] - The company is prioritizing research and development efforts and is open to strategic M&A to enhance its competitive position [38] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the dynamic global macro environment but expressed confidence in the company's execution and financial targets [9][10] - The CEO emphasized the importance of a listening tour to gather feedback and enhance the company's foundation for success [30][31] - The company is optimistic about its future based on strong product innovation and strategic acquisitions [36][38] Other Important Information - The company generated nearly $216 million of free cash flow in 2025, up 16% year-over-year, exceeding guidance expectations [19][20] - The balance sheet as of December 31, 2025, showed cash and cash equivalents of $446.4 million and total debt obligations of $747.5 million [21] Q&A Session Summary Question: What are the additional gross margin drivers for the company? - Management highlighted the focus on product mix, pricing, cost discipline, and ongoing SKU rationalization as key drivers for gross margin improvement [42][44][45] Question: How is the WRAPSODY product performing in the outpatient setting? - Management acknowledged that initial revenue expectations for WRAPSODY were missed but expressed confidence in achieving the $7 million revenue target for 2026 [46][48][49] Question: What factors are influencing the guidance for free cash flow in 2026? - Management indicated that the guidance reflects a conservative approach, considering ongoing capital expenditures and timing-related factors [52][54] Question: What areas is the company looking at for potential M&A? - The company is focusing on both foundational and therapeutic products, seeking strategic opportunities that align with its growth drivers [56][57][59] Question: What is the outlook for the OEM business? - Management noted that the OEM business is expected to normalize to mid-to-high single-digit growth, despite recent inventory destocking [62][63] Question: What are the expectations for growth in China? - Management indicated that growth in China was down year-over-year, primarily due to volume-based purchasing impacts, but remains optimistic about future improvements [78][79]

Financial Data and Key Metrics Changes - The company reported total revenue of $393.9 million for Q4 2025, an 11% increase year-over-year on a GAAP basis and a 10% increase on a constant currency basis [5][6] - Non-GAAP operating margin increased by 138 basis points year-over-year to 21% [7] - Non-GAAP EPS grew by 12%, exceeding expectations, and free cash flow reached $74 million, a 13% increase year-over-year [8][19] - For the full year 2025, constant currency revenue growth was 11%, with a non-GAAP operating margin of 20.3% and free cash flow exceeding $215 million [9][19] Business Line Data and Key Metrics Changes - Q4 revenue growth was driven by a 9% increase in the cardiovascular segment and a 15% increase in the endoscopy segment [10] - Cardiac Intervention product sales increased by 21%, while Peripheral Intervention products saw a 13% increase [11][12] - Sales of OEM products decreased by 15%, attributed to inventory destocking and macroeconomic factors [14][15] Market Data and Key Metrics Changes - U.S. sales increased by 12% year-over-year, while international sales grew by 6% [16] - Organic constant currency growth in the U.S. was 8%, and 4% internationally [16] Company Strategy and Development Direction - The company aims for solid constant currency growth and non-GAAP operating margin expansion in 2026, with a focus on executing its Continued Growth Initiatives program [9][10] - The divestiture of the DualCap product line is expected to enhance manufacturing capacity and free up resources for higher-margin products [24][40] - The company is prioritizing R&D efforts and exploring M&A opportunities to drive growth [39][59] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the global macro environment but expressed optimism about the company's performance and future growth [9][10] - The CEO emphasized the importance of internal feedback and engagement with stakeholders to inform strategic decisions [30][33] Other Important Information - The company expects free cash flow of at least $200 million in 2026, with planned capital expenditures of approximately $90 million [27][55] - The anticipated impact of tariffs on non-GAAP EPS for 2026 is approximately $15 million [25][26] Q&A Session Summary Question: What are the additional gross margin drivers for the company? - Management highlighted the focus on product mix, pricing discipline, and cost management as key drivers for gross margin improvement [43][46] Question: How is the WRAPSODY product performing in the market? - Management acknowledged that initial revenue expectations for WRAPSODY were not met but expressed confidence in achieving the $7 million revenue target for 2026 [48][50] Question: What are the strategic areas for M&A? - The company is looking at both foundational and therapeutic products for potential acquisitions, aiming to fill gaps in their product offerings [58][59] Question: What is the impact of the DualCap divestiture on margins and EPS? - The divestiture is expected to have a minimal EPS impact but will create a 140 basis point headwind to revenue growth [81][84]