Masimo FY Conference Summary Company Overview - **Company**: Masimo (NasdaqGS:MASI) - **Industry**: Patient Monitoring Technology - **Global Reach**: Serves over 200 million patients annually in over 150 countries [2][3] - **Revenue**: Over $1.5 billion with a strong installed base of 2.6 million units [3] - **Employee Retention**: High retention rate for engineers, with over 350 engineers [3] Financial Performance - **Q4 Growth**: Achieved over 9% growth for the year and over 11% for the quarter [3] - **Margin Expansion**: Expanded operating margin by 500 basis points and achieved over 30% EPS growth [4] - **Long-term Guidance**: Anticipates 7-10% growth over the next three years, aiming for a 30% operating margin and approaching $8 EPS by 2028 [4] Growth Strategy - **Masimo Growth Algorithm**: Focused on four key components driving growth: 1. U.S. Pulse Ox growth (40% of growth) 2. International growth (20%) 3. Advanced monitoring (one-third of growth) 4. New product introductions [6] - **Market Share**: Holds approximately 55% market share in the U.S. Pulse Ox market, growing at twice the market rate [7] - **Continuous Monitoring Opportunity**: Identified a $2 billion total addressable market for continuous monitoring of patients [9] Product Innovation - **Wearable Technology**: Launching Radius VSM, a first-generation wearable technology for continuous monitoring [18] - **Next-Gen Monitors**: New high and low acuity monitors expected by the end of 2027, with advanced features and AI algorithms [20] - **AI Integration**: Developing algorithms for opioid-induced respiratory depression and atrial fibrillation detection, enhancing patient care [22][24] Partnerships and Collaborations - **Strategic Partnerships**: Expanded agreements with Philips and GE Healthcare to enhance product offerings and market reach [16] - **Focus on Japan and Asia-Pacific**: Appointed a leader to grow business in these regions, which represent significant growth potential [15] Market Dynamics - **Untapped Market**: Continuous monitoring in low acuity settings is currently underutilized, presenting a growth opportunity as hospitals shift towards preventive care [34][36] - **Telehealth Solutions**: Enabling hospitals to provide telehealth services rather than direct-to-consumer sales, focusing on technology that supports hospital systems [53] Key Takeaways - **Momentum for 2026**: Strong performance in 2025 sets a solid foundation for growth in 2026, with a focus on innovation and market expansion [45][49] - **Patient-Centric Approach**: Emphasis on improving patient care through continuous monitoring and advanced technology solutions [29][36] This summary encapsulates the key points from the Masimo FY Conference, highlighting the company's strategic direction, financial performance, and innovative product pipeline.