-- Delivered double-digit reported revenue growth of 10.8%, with constant-currency revenue growth of 9.8%
-- Raised full-year 2026 revenue and adjusted diluted earnings per share guidance(1)
-- Entered into a long-term agreement with Thermo Fisher Scientific to strengthen oxygenator component supply to expand manufacturing output and satisfy unmet demand
GLOUCESTER, England--(BUSINESS WIRE)--August 05, 2026--
LivaNova PLC (Nasdaq: LIVN), a market-leading medical technology company, today reported results for the second quarter ended June 30, 2026 and raised full-year 2026 guidance.
Financial Summary and Highlights(1)
-- Second-quarter revenue of $390.6 million increased 10.8% on a reported
basis and 9.8% on a constant-currency basis as compared to the prior-year
period
-- Second-quarter U.S. GAAP diluted earnings per share of $1.93 and
adjusted diluted earnings per share of $1.26
-- Second-quarter net cash provided by operating activities of $66.6
million and adjusted free cash flow of $45.5 million
-- Raised full-year 2026 revenue growth range by 100 basis points to 8% to
9% on a constant-currency basis. Raised full-year 2026 adjusted diluted
earnings per share range by $0.10 at midpoint to $4.30 to $4.40. Lowered
full-year 2026 adjusted free cash flow range to $140 million to $160
million
-- Entered into a long-term agreement with Thermo Fisher Scientific that
is anticipated to increase availability of a critical oxygenator
component. The agreement is expected to support increased oxygenator
output over time, strengthening LivaNova's ability to satisfy unmet
customer demand
-- Announced data showing that use of PolySync$(TM)$ programming algorithm
increased the cumulative apnea-hypopnea index response rate to 84.5% in
patients with moderate to severe Obstructive Sleep Apnea, improving
response rate and expanding the impact of proximal hypoglossal nerve
stimulation therapy over time
-- Received a favorable ruling from the Italian tax authority, Agenzia
delle Entrate, resulting in the recognition of a discrete tax benefit of
EUR81.8 million ($95.4 million) on the deductibility of the previously
recorded SNIA environmental liability
-- Appointed Jette Nygaard-Anderson to the Board of Directors and the
Nominating and Corporate Governance Committee, effective June 10
-- Appointed Stefano Folli as President, Cardiopulmonary, effective August
1, after joining the Company on June 1
-- Appointed Anne Liddy as Chief Legal Officer, effective August 31
_________________________________
(1) Constant-currency percent change, adjusted diluted earnings per share,
and adjusted free cash flow are non-GAAP measures. Constant-currency
percent change excludes the impact from fluctuations in the various
currencies in which the Company operates as compared to reported
percent change. For an explanation of these and other non-GAAP measures
used in this news release, see the section entitled "Use of Non-GAAP
Financial Measures." For reconciliations of certain non-GAAP measures,
see the tables that accompany this news release. As discussed in the
section entitled "Use of Non-GAAP Financial Measures" below, the
Company is unable to predict with a reasonable degree of certainty the
type and extent of certain items that would be expected to impact GAAP
measures but would not impact the non-GAAP measures. Accordingly, the
Company is unable to reconcile forward-looking non-GAAP financial
measures to their most directly comparable forward-looking GAAP
financial measures without unreasonable efforts.
"In the second quarter, LivaNova delivered strong revenue growth driven by sustained performance in our Cardiopulmonary and Epilepsy businesses, " said Vladimir Makatsaria, Chief Executive Officer of LivaNova. "We are also pleased to announce an agreement with Thermo Fisher Scientific, an important step in securing a critical component for our oxygenators, supporting the Cardiopulmonary supply chain long-term. Our updated 2026 guidance reflects strong execution in the core businesses as we advance our strategic plan and drive long-term value creation."
Second-Quarter 2026 Results
The following table summarizes net revenue by segment (in millions):
Three Months Ended
June 30,
-------------------- -------- -----------------
Constant-Currency
2026 2025 % Change % Change
--------- --------- -------- -----------------
Cardiopulmonary $221.6 $199.3 11.2 % 9.9 %
Neuromodulation 166.9 151.7 10.1 % 9.5 %
Other Revenue (1) 2.1 1.6 30.6 % 27.7 %
------------------- --------- ---------
Total Company $390.6 $352.5 10.8 % 9.8 %
=================== ========= =========
(1) "Other Revenue" includes rental and site services income not allocated
to segments.
-- Numbers may not add precisely due to rounding.
Second-quarter 2026 Cardiopulmonary revenue increased 11.2% on a reported basis and 9.9% on a constant-currency basis versus the second quarter of 2025 driven by growth in Europe, primarily reflecting Essenz(TM) Perfusion System sales, strong consumables demand, and favorable realized price.
Second-quarter 2026 Neuromodulation revenue increased 10.1% on a reported basis and 9.5% on a constant-currency basis versus the second quarter of 2025 with growth across all regions, driven by volume growth and favorable realized price.
Earnings Analysis
On a U.S. GAAP basis, second-quarter 2026 operating income was $49.5 million, as compared to operating income of $54.2 million for the second quarter of 2025. Adjusted operating income for the second quarter of 2026 was $90.8 million, as compared to adjusted operating income of $77.4 million for the second quarter of 2025.
On a U.S. GAAP basis, second-quarter 2026 diluted earnings per share was $1.93 as compared to diluted earnings per share of $0.50 in the second quarter of 2025. Second-quarter 2026 adjusted diluted earnings per share was $1.26, as compared to adjusted diluted earnings per share of $1.05 in the second quarter of 2025.
Full-Year 2026 Guidance
LivaNova now expects full-year 2026 revenue to grow between 8% and 9% (versus 7% and 8% prior) on a constant-currency basis. Foreign currency is expected to be a tailwind of approximately 1% based on current exchange rates, consistent with prior guidance.
Adjusted diluted earnings per share for 2026 is now expected to be in the range of $4.30 to $4.40 (versus $4.20 to $4.30 prior), assuming a share count of approximately 56 million for full-year 2026. In 2026, the Company now estimates adjusted free cash flow in the range of $140 million to $160 million (versus $160 million to $180 million prior) to reflect incremental strategic investments in Cardiopulmonary capacity expansion, innovation, and IT infrastructure to support the Company's growth strategy.
As discussed in the section entitled "Use of Non-GAAP Financial Measures" below, the Company is unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures but would not impact the non-GAAP measures. Accordingly, the Company is unable to reconcile the forward-looking non-GAAP financial measures included in this section to their most directly comparable forward-looking GAAP financial measures without unreasonable efforts.
Webcast and Conference Call Instructions
The Company will host a live audiocast at 1 p.m. London time (8 a.m. Eastern Daylight Time) on Wed., August 5, 2026 that will be accessible at www.livanova.com/events. Listeners should register in advance and log on approximately 10 minutes early to ensure proper setup. To listen to the conference call by telephone, dial +1 833 461 5787 (if dialing from within the U.S.) or +1 585 542 9983 (if dialing from outside the U.S.). The conference call meeting ID is 719351329. Within 24 hours of the audiocast, a replay will be available at www.livanova.com/events, where it will be archived and accessible for approximately 90 days.
About LivaNova
LivaNova PLC is a global medical technology company built on nearly five decades of experience with a vision to change the trajectory of lives for a new day. Through ingenious medical solutions in select neurological and cardiac conditions, LivaNova strives to ignite patient turnarounds. With its registered office in the United Kingdom, approximately 3,300 employees, and a presence in more than 100 countries, LivaNova serves patients, healthcare professionals, and healthcare systems worldwide. For more information, please visit www.livanova.com.
Use of Non-GAAP Financial Measures
To supplement financial measures presented in accordance with generally accepted accounting principles in the United States (U.S. GAAP or GAAP), management has disclosed certain additional measures not presented in accordance with GAAP known as "non-GAAP financial measures" or "adjusted financial measures." Company management uses these non-GAAP measures to monitor the Company's operational performance and for benchmarking against other medical technology companies. Non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. These non-GAAP financial measures should be considered along with, but not as alternatives to, operational performance measures as prescribed by GAAP.
In this news release, the Company refers to revenue and percentage change in revenue on a comparable, constant-currency basis. Company management believes that these non-GAAP measures provide a useful way to evaluate the revenue performance of LivaNova and to compare the revenue performance of current periods to prior periods on a consistent basis. Constant-currency percent change measures the change in revenue between current and prior-year periods using average exchange rates in effect during the applicable prior-year period.
LivaNova calculates forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. For example, forward-looking net revenue growth projections are estimated on a constant-currency basis and exclude the impact of foreign currency fluctuations. Forward-looking non-GAAP adjusted diluted earnings per share guidance excludes items such as, but not limited to, changes in fair value of certain derivatives and contingent consideration arrangements and asset impairment charges that would be included in comparable GAAP financial measures. The most directly comparable GAAP measure for adjusted free cash flow is net cash provided by operating activities. Adjusted free cash flow is defined as net cash provided by operating activities less cash used for the purchase of property, plant, and equipment excluding the impact of 3T litigation settlement payments, cybersecurity incident insurance proceeds, SNIA environmental liability and related financing costs, contingent consideration payments classified within operating cash flows, and gains related to dividends received from investments and further adjusted as needed for other charges, expenses, or gains that may not be indicative of the Company's operational performance. However, non-GAAP financial adjustments on a forward-looking basis are subject to uncertainty and variability as they are dependent on many factors, including but not limited to, the effect of foreign currency exchange fluctuations, impacts from potential acquisitions or divestitures, the ultimate outcome of legal proceedings, gains or losses on the potential sale of businesses or other assets, restructuring costs, merger and integration activities, changes in fair value of derivatives, and contingent consideration arrangements, asset impairment charges and the tax impact of the aforementioned items, tax law changes, or other tax matters. Accordingly, the Company does not reconcile non-GAAP financial measures on a forward-looking basis as it is impractical to do so without unreasonable effort.
Adjusted financial measures such as adjusted cost of sales, adjusted gross profit, adjusted selling, general, and administrative expense, adjusted research and development expense, adjusted other operating expense, adjusted operating income, adjusted income before income tax, adjusted income tax expense, adjusted net income, and adjusted diluted earnings per share are measures that LivaNova generally uses to facilitate management review of the operational performance of the company, to serve as a basis for strategic planning, and in the design of incentive compensation plans. Additionally, the Company uses the non-GAAP liquidity measure adjusted free cash flow. The Company believes that the presentation of these adjusted financial measures allows investors to evaluate the Company's operational performance for different periods on a more comparable and consistent basis, and with other medical technology companies by adjusting for items that are not related to the operational performance of the Company or incurred in the ordinary course of business.
Safe Harbor Statement
Certain statements in this news release, other than statements of historical or current fact, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section 21E of the Exchange Act. These statements include, but are not limited to, LivaNova's plans, objectives, strategies, financial performance and outlook, trends, the amount and timing of future cash distributions, prospects, or future events, and involve known and unknown risks that are difficult to predict. As a result, the Company's actual financial results, performance, achievements, or prospects may differ materially from those expressed or implied by these forward-looking statements. Generally, forward-looking statements can be identified by the use of words such as "may," "could," "seek," "guidance," "predict," "potential," "likely," "believe," "will," "should," "expect," "anticipate," "estimate," "plan," "intend," "forecast," "foresee," or variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based on estimates and assumptions that, while considered reasonable by LivaNova and its management based on their knowledge and understanding of the business and industry, are inherently uncertain. These statements are not guarantees of future performance, and shareholders should not place undue reliance on forward-looking statements. There are a number of risks, uncertainties, and other important factors, many of which are beyond the Company's control, that could cause the Company's actual results to differ materially from the forward-looking statements contained in this news release, and include, but are not limited to, the following risks and uncertainties: risks associated with doing business globally, including volatility in the global market and worldwide economic conditions; adverse changes in export and import costs and other trade restrictions as well as uncertainty over global tariffs; risks relating to supply chain pressures; failure to protect, maintain, or upgrade LivaNova's IT systems or products, or safeguard against cybersecurity incidents, service disruptions, or data corruption; costs of complying with privacy and security of personal information requirements and laws; changes in technology, including the development of superior or alternative technology or devices by competitors and/or competition from providers of alternative medical therapies; risks related to AI integration and regulation; failure of investments, alliances, supply agreements, acquisitions, or divestitures to achieve expected returns; failure to maintain appropriate working relationships with healthcare professionals to aid in the continuing development of products; the risk of quality issues and the impacts thereof; risks relating to recalls, replacement of inventory, enforcement actions, or product liability claims; failure to comply with, or changes in, laws, regulations, or administrative practices affecting government regulation of the Company's products; failure to retain talent, maintain an effective succession plan, and negotiate successfully with local works councils; failure to obtain or maintain approvals, clearance, or reimbursement in relation to the Company's products; unfavorable results from clinical studies or failure to meet milestones; global healthcare policy changes that may lead to restricted access and pricing as well as payback requirements and limited reimbursement; failure to comply with rules relating to healthcare goods and services as well as anti-bribery laws; the unfavorable impact of pending or existing climate change; product liability, intellectual property, shareholder-related, environmental-related, income tax, and other litigation, disputes, losses, and costs, including in the case of the Company's 3T Heater-Cooler litigation; risks associated with environmental laws and regulations as well as environmental liabilities, violations, and litigation, including in the case of Saluggia and SNIA; failure to protect the Company's proprietary intellectual property; changes in tax laws and regulations, including exposure to additional income tax liabilities; risks relating to the Company's indebtedness; risks associated with potential government shutdowns; the potential for impairments of intangible assets, goodwill, and other long-lived assets; risks associated with public health crises; risks associated with shareholder activism; effectiveness of the Company's internal controls over financial reporting; changes in the Company's profitability and/or failure to manage costs and expenses; fluctuations in future quarterly operating results and/or variations in revenue and operating expenses relative to estimates; and other unknown or unpredictable factors that could harm the Company's financial performance.
The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties that affect the Company's business, including those described in the "Risk Factors" section of the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other documents filed from time to time with the U.S. Securities and Exchange Commission by LivaNova.
Readers are cautioned not to place undue reliance on the Company's forward-looking statements, which speak only as of the date of this news release. The Company undertakes no obligation to update publicly any of the forward-looking statements in this news release to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If LivaNova updates one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect to those or other forward-looking statements.
PolySync and Essenz are trademarks of LivaNova USA, Inc.
LIVANOVA PLC
NET REVENUE - UNAUDITED
(In millions)
Three Months Ended June 30,
-------------------------------------------
Constant-Currency
2026 2025 % Change % Change
------ ------ -------- -----------------
Cardiopulmonary
U.S. $72.8 $71.2 2.2 % 2.2 %
Europe (1) 62.0 49.0 26.3 % 23.8 %
Rest of World (1) 86.8 79.0 9.9 % 8.4 %
------ ------
221.6 199.3 11.2 % 9.9 %
------ ------
Neuromodulation
U.S. 126.6 117.2 8.0 % 8.0 %
Europe (1) 19.9 17.7 12.0 % 9.7 %
Rest of World (1) 20.5 16.7 22.8 % 20.4 %
------ ------
166.9 151.7 10.1 % 9.5 %
------ ------
Other Revenue (2) 2.1 1.6 30.6 % 27.7 %
------ ------
Total Company
U.S. 199.4 188.5 5.8 % 5.8 %
Europe (1) 81.8 66.8 22.5 % 20.0 %
Rest of World (1) 109.4 97.3 12.5 % 10.7 %
------ ------
$390.6 $352.5 10.8 % 9.8 %
====== ======
(1) "Europe" includes the UK, Germany, France, Italy, the Netherlands,
Spain, Belgium, Poland, Sweden, Switzerland, Austria, Norway, Portugal,
Finland, and Denmark. Excluding Europe and the U.S., "Rest of World"
includes all other countries where LivaNova operates.
(2) "Other Revenue" includes rental and site services income not allocated
to segments.
-- Numbers may not add precisely due to rounding.
LIVANOVA PLC
NET REVENUE - UNAUDITED
(In millions)
Six Months Ended June 30,
----------------------------------------------------
2026 2025 % Change Constant-Currency % Change
------ ------ -------- --------------------------
Cardiopulmonary
U.S. $142.1 $132.1 7.6 % 7.6 %
Europe (1) 119.3 93.6 27.5 % 20.8 %
Rest of World
(1) 168.9 150.0 12.6 % 10.0 %
------ ------
430.2 375.6 14.5 % 11.8 %
------ ------
Neuromodulation
U.S. 242.0 225.6 7.3 % 7.3 %
Europe (1) 38.2 32.9 16.0 % 9.6 %
Rest of World
(1) 38.6 32.1 20.2 % 17.0 %
------ ------
318.7 290.6 9.7 % 8.6 %
------ ------
Other Revenue (2) 3.9 3.2 20.4 % 13.5 %
------ ------
Total Company
U.S. 384.0 357.6 7.4 % 7.4 %
Europe (1) 157.5 126.5 24.5 % 17.9 %
Rest of World
(1) 211.3 185.3 14.1 % 11.3 %
------ ------
$752.8 $669.4 12.5 % 10.4 %
====== ======
(1) "Europe" includes the UK, Germany, France, Italy, the Netherlands,
Spain, Belgium, Poland, Sweden, Switzerland, Austria, Norway, Portugal,
Finland, and Denmark. Excluding Europe and the U.S., "Rest of World"
includes all other countries where LivaNova operates.
(2) "Other Revenue" includes rental and site services income not allocated
to segments.
-- Numbers may not add precisely due to rounding.
LIVANOVA PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In millions, except for per share amounts)
Three Months Ended June 30,
-----------------------------
2026 2025
-------------- -------------
Net revenue $390.6 $352.5
Cost of sales 116.9 113.5
-------------- -------------
Gross profit 273.7 239.0
-------------- -------------
Operating expenses:
Selling, general, and administrative 158.1 137.8
Research and development 53.7 47.2
Other operating expense 12.4 (0.2)
-------------- -------------
Operating income 49.5 54.2
-------------- -------------
SNIA environmental liability expense -- (1.7)
Interest expense (7.2) (14.9)
Foreign exchange and other
income/(expense) (23.8) (4.3)
-------------- -------------
Income before income tax 18.5 33.3
-------------- -------------
Income tax (benefit) expense (90.2) 6.2
Loss from equity method investments (0.1) --
-------------- -------------
Net income $108.6 $27.2
============== =============
Basic earnings per share $1.98 $0.50
Diluted earnings per share $1.93 $0.50
Basic weighted average shares outstanding 55.0 54.6
Diluted weighted average shares outstanding 56.3 54.7
-- Numbers may not add precisely due to
rounding.
Adjusted Financial Measures (in millions, except for per share amounts) -
Unaudited
Three Months Ended
June 30,
----------------------
2026 2025
---------- ----------
Adjusted SG&A $136.7 $121.4
Adjusted R&D 50.0 44.0
Adjusted operating income 90.8 77.4
Adjusted net income 71.0 57.4
Adjusted diluted earnings per share $1.26 $1.05
Statistics (as a % of net revenue, except for income tax rate) -
Unaudited
GAAP Three Months Ended Adjusted Three Months Ended
June 30, June 30,
------------------------ ----------------------------
2026 2025 2026 2025
------------ ---------- ------------- -------------
Gross profit 70.1 % 67.8 % 71.0 % 68.9 %
SG&A 40.5 % 39.1 % 35.0 % 34.4 %
R&D 13.7 % 13.4 % 12.8 % 12.5 %
Operating
income 12.7 % 15.4 % 23.2 % 21.9 %
Net income 27.8 % 7.7 % 18.2 % 16.3 %
Income tax
rate (488.1) % 18.5 % 22.3 % 22.0 %
LIVANOVA PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) - UNAUDITED
(In millions, except for per share amounts)
Six Months Ended June 30,
---------------------------
2026 2025
----------- --------------
Net revenue $752.8 $669.4
Cost of sales 235.4 214.1
----------- --------------
Gross profit 517.4 455.2
----------- --------------
Operating expenses:
Selling, general, and administrative 301.7 266.9
Research and development 112.4 85.1
Other operating expense 12.4 0.5
----------- --------------
Operating income 91.0 102.8
----------- --------------
SNIA environmental liability expense -- (362.1)
Interest expense (15.5) (30.2)
Foreign exchange and other
income/(expense) (29.5) 7.2
----------- --------------
Income (loss) before income tax 46.0 (282.3)
----------- --------------
Income tax (benefit) expense (85.9) 17.8
Loss from equity method investments (1.0) --
----------- --------------
Net income (loss) $130.9 ($300.2)
=========== ==============
Basic earnings (loss) per share $2.39 ($5.51)
Diluted earnings (loss) per share $2.33 ($5.51)
Basic weighted average shares outstanding 54.8 54.5
Diluted weighted average shares outstanding 56.1 54.5
-- Numbers may not add precisely due to
rounding.
Adjusted Financial Measures (in millions, except for per share amounts) -
Unaudited
Six Months Ended
June 30,
----------------------
2026 2025
---------- ----------
Adjusted SG&A $265.6 $237.1
Adjusted R&D 97.1 82.2
Adjusted operating income 161.9 141.9
Adjusted net income 125.5 105.5
Adjusted diluted earnings per share $2.24 $1.93
Statistics (as a % of net revenue, except for income tax rate) -
Unaudited
GAAP Six Months Ended Adjusted Six Months Ended
June 30, June 30,
-------------------------- --------------------------
2026 2025 2026 2025
------------ ------------ ------------ ------------
Gross profit 68.7 % 68.0 % 69.7 % 68.9 %
SG&A 40.1 % 39.9 % 35.3 % 35.4 %
R&D 14.9 % 12.7 % 12.9 % 12.3 %
Operating
income 12.1 % 15.4 % 21.5 % 21.2 %
Net income
(loss) 17.4 % (44.8) % 16.7 % 15.8 %
Income tax
rate (186.8) % (6.3) % 22.4 % 23.0 %
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED
(In millions, except for per share amounts)
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Non-GAAP Adjustments
-------------------------------------------------------------------------------------------------------------------------
Three Months GAAP Depreciation and Investment Financing Contingent Certain Legal & Share-based Certain Tax Adjusted
Ended June 30, Financial Amortization Related Items Related Items Consideration Regulatory Costs Compensation Adjustments Financial
2026 Measures Expense (1) (2) (3) (4) (5) Costs (6) (7) Measures
--------------- ------------- ------------------ --------------- -------------- --------------- ----------------- ---------------- -------------- --------------
Cost of sales $116.9 $(3.9) $-- $-- $1.0 $-- $(0.9) $-- $113.1
Gross profit
percent 70.1% 1.0% --% --% (0.3)% --% 0.2% --% 71.0%
Selling,
general, and
administrative 158.1 (2.6) -- -- -- (5.6) (13.3) -- 136.7
Selling,
general, and
administrative
as a percent
of net
revenue 40.5% (0.7)% --% --% --% (1.4)% (3.4)% --% 35.0%
Research and
development 53.7 -- -- -- (0.9) (0.1) (2.7) -- 50.0
Research and
development as
a percent of
net revenue 13.7% --% --% --% (0.2)% --% (0.7)% --% 12.8%
Other operating
expense 12.4 -- -- -- -- (12.4) -- -- --
Operating
income 49.5 6.5 -- -- (0.2) 18.0 16.9 -- 90.8
Operating
margin
percent 12.7% 1.7% --% --% --% 4.6% 4.3% --% 23.2%
Net income 108.6 6.5 (13.8) 45.6 (0.2) 18.0 16.9 (110.6) 71.0
Net income as a
percent of net
revenue 27.8% 1.7% (3.5)% 11.7% --% 4.6% 4.3% (28.3)% 18.2%
Diluted
earnings per
share $1.93 $0.12 $(0.25) $0.81 $-- $0.32 $0.30 $(1.97) $1.26
GAAP results for the three months ended June 30, 2026 include:
(1) Depreciation and amortization associated with purchase price accounting
(2) Gain on sale of investment
(3) Mark-to-market adjustments for the 2029 Notes embedded and capped call
derivatives, and non-cash interest expense
(4) Remeasurement of contingent consideration related to the ImThera
acquisition
(5) Legal expenses primarily related to 3T Heater-Cooler defense, 3T
Heater-Cooler litigation provision, and Saluggia site remediation
provision
(6) Non-cash expenses associated with share-based compensation costs
(7) The impact of valuation allowances, discrete tax items, the tax impact
of intercompany transactions, and the tax impact on non-GAAP
adjustments
-- Numbers may not add precisely due to rounding.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED
(In millions, except for per share amounts)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Non-GAAP Adjustments
------------------------------------------------------------------------------------------------------------------------------------------
Three Months GAAP Depreciation and Investment Financing Contingent Certain Legal & Share-based Certain Tax Adjusted
Ended June 30, Financial Restructuring Amortization Related Items Related Items Consideration Regulatory Costs Compensation Adjustments Financial
2025 Measures Expense (1) Expense (2) (3) (4) (5) (6) Costs (7) (8) Measures
--------------- ------------- --------------- ------------------ --------------- -------------- --------------- ----------------- ---------------- -------------- --------------
Cost of sales $113.5 $-- ($1.7) $-- $-- ($1.6) $-- ($0.6) $-- $109.7
Gross profit
percent 67.8% --% 0.5% --% --% 0.4% --% 0.2% --% 68.9%
Selling,
general, and
administrative 137.8 -- (2.6) -- -- -- (6.7) (7.1) -- 121.4
Selling,
general, and
administrative
as a percent
of net
revenue 39.1% --% (0.7)% --% --% --% (1.9)% (2.0)% --% 34.4%
Research and
development 47.2 -- -- -- -- (1.2) (0.4) (1.6) -- 44.0
Research and
development as
a percent of
net revenue 13.4% --% --% --% --% (0.3)% (0.1)% (0.4)% --% 12.5%
Other operating
expense (0.2) 0.1 -- -- -- -- 0.1 -- -- --
Operating
income 54.2 (0.1) 4.2 -- -- 2.8 7.1 9.2 -- 77.4
Operating
margin
percent 15.4% --% 1.2% --% --% 0.8% 2.0% 2.6% --% 21.9%
Net income 27.2 (0.1) 4.2 0.6 14.8 2.8 8.8 9.2 (10.0) 57.4 Net income as a percent of net revenue 7.7% --% 1.2% 0.2% 4.2% 0.8% 2.5% 2.6% (2.8)% 16.3% Diluted earnings per share $0.50 $-- $0.08 $0.01 $0.27 $0.05 $0.16 $0.17 ($0.18) $1.05 GAAP results for the three months ended June 30, 2025 include: (1) Restructuring expense related to organizational changes (2) Depreciation and amortization associated with purchase price accounting (3) Loss on investment revaluation of Ceribell, Inc. (4) Mark-to-market adjustments for the 2025 and 2029 Notes embedded and capped call derivatives, non-cash interest expense, and loss on debt extinguishment (5) Remeasurement of contingent consideration related to the ImThera acquisition (6) Legal expenses primarily related to 3T Heater-Cooler defense, SNIA environmental liability, cybersecurity incident costs net of insurance reimbursement, Medical Device Regulation ("MDR") costs, and 3T Heater-Cooler litigation provision (7) Non-cash expenses associated with share-based compensation costs (8) The impact of valuation allowances, discrete tax items, the tax impact of intercompany transactions, and the tax impact on non-GAAP adjustments -- Numbers may not add precisely due to rounding. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED (In millions, except for per share amounts) ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Non-GAAP Adjustments ------------------------------------------------------------------------------------------------------------------------- Six Months GAAP Depreciation and Investment Financing Contingent Certain Legal & Share-based Certain Tax Adjusted Ended June 30, Financial Amortization Related Items Related Items Consideration Regulatory Costs Compensation Adjustments Financial 2026 Measures Expense (1) (2) (3) (4) (5) Costs (6) (7) Measures --------------- ------------- ------------------ --------------- -------------- --------------- ----------------- ---------------- -------------- -------------- Cost of sales $235.4 ($5.8) $-- $-- ($0.1) $-- ($1.3) $-- $228.3 Gross profit percent 68.7% 0.8% --% --% --% --% 0.2% --% 69.7% Selling, general, and administrative 301.7 (5.2) -- -- -- (11.7) (19.1) -- 265.6 Selling, general, and administrative as a percent of net revenue 40.1% (0.7)% --% --% --% (1.6)% (2.5)% --% 35.3% Research and development 112.4 0.1 -- -- (10.4) (0.2) (4.7) -- 97.1 Research and development as a percent of net revenue 14.9% --% --% --% (1.4)% --% (0.6)% --% 12.9% Other operating expense 12.4 -- -- -- -- (12.4) -- -- -- Operating income 91.0 10.9 -- -- 10.5 24.4 25.2 -- 161.9 Operating margin percent 12.1% 1.4% --% --% 1.4% 3.2% 3.3% --% 21.5% Net income 130.9 10.9 (12.7) 58.8 10.5 24.4 25.2 (122.3) 125.5 Net income as a percent of net revenue 17.4% 1.4% (1.7)% 7.8% 1.4% 3.2% 3.3% (16.3)% 16.7% Diluted earnings per share $2.33 $0.19 ($0.23) $1.05 $0.19 $0.43 $0.45 ($2.18) $2.24 GAAP results for the six months ended June 30, 2026 include: (1) Depreciation and amortization associated with purchase price accounting (2) Gain on sale of investment, partially offset by impairment of investment without readily determinable fair value (3) Mark-to-market adjustments for the 2029 Notes embedded and capped call derivatives, non-cash interest expense, and loss on debt extinguishment (4) Remeasurement of contingent consideration related to the ImThera acquisition (5) Legal expenses primarily related to 3T Heater-Cooler defense, 3T Heater-Cooler litigation provision, Saluggia site remediation provision, and MDR costs (6) Non-cash expenses associated with share-based compensation costs (7) The impact of valuation allowances, discrete tax items, the tax impact of intercompany transactions, and the tax impact on non-GAAP adjustments -- Numbers may not add precisely due to rounding. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED (In millions, except for per share amounts) ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Non-GAAP Adjustments ------------------------------------------------------------------------------------------------------------------------------------------ Six Months GAAP Depreciation and Investment Financing Contingent Certain Legal & Share-based Certain Tax Adjusted Ended June 30, Financial Restructuring Amortization Related Items Related Items Consideration Regulatory Costs Compensation Adjustments Financial 2025 Measures Expense (1) Expense (2) (3) (4) (5) (6) Costs (7) (8) Measures --------------- ------------- --------------- ------------------ --------------- -------------- --------------- ----------------- ---------------- -------------- -------------- Cost of sales $214.1 $-- ($3.4) $-- $-- ($1.8) $-- ($0.7) $-- $208.2 Gross profit percent 68.0% --% 0.5% --% --% 0.3% --% 0.1% --% 68.9% Selling, general, and administrative 266.9 -- (5.0) -- -- -- (11.3) (13.5) -- 237.1 Selling, general, and administrative as a percent of net revenue 39.9% --% (0.8)% --% --% --% (1.7)% (2.0)% --% 35.4% Research and development 85.1 -- 0.1 -- -- (1.9) 1.6 (2.7) -- 82.2 Research and development as a percent of net revenue 12.7% --% --% --% --% (0.3)% 0.2% (0.4)% --% 12.3% Other operating expense 0.5 0.2 -- -- -- -- (0.6) -- -- -- Operating income 102.8 (0.2) 8.3 -- -- 3.7 10.3 17.0 -- 141.9 Operating margin percent 15.4% --% 1.2% --% --% 0.6% 1.5% 2.5% --% 21.2% Net (loss) income (300.2) (0.2) 8.3 3.2 14.9 3.7 372.4 17.0 (13.7) 105.5 Net (loss) income as a percent of net revenue (44.8)% --% 1.2% 0.5% 2.2% 0.6% 55.6% 2.5% (2.0)% 15.8% Diluted (loss) earnings per share (9) ($5.51) $-- $0.15 $0.06 $0.27 $0.07 $6.81 $0.31 ($0.25) $1.93 GAAP results for the six months ended June 30, 2025 include: (1) Restructuring expense related to organizational changes (2) Depreciation and amortization associated with purchase price accounting
(3) Loss on investment revaluation of Ceribell, Inc.
(4) Mark-to-market adjustments for the 2025 and 2029 Notes embedded and
capped call derivatives, interest expense on the Term Facilities,
non-cash interest expense on the 2025 and 2029 Notes and Revolving
Credit Facility, loss on debt extinguishment, and interest income on
the collateral for the SNIA litigation guarantee and delayed draw on
Term Facilities
(5) Remeasurement of contingent consideration related to the ImThera
acquisition
(6) SNIA environmental liability, legal expenses primarily related to 3T
Heater-Cooler defense, MDR costs, 3T Heater-Cooler litigation
provision, cybersecurity incident costs net of insurance reimbursement,
and R&D tax incentive
(7) Non-cash expenses associated with share-based compensation costs
(8) The impact of valuation allowances, discrete tax items, the tax impact
of intercompany transactions, and the tax impact on non-GAAP
adjustments
(9) The denominator used to calculate the impact of non-GAAP adjustments on
a per share basis and adjusted diluted earnings per share includes
dilution from LivaNova's share-based compensation awards that was
excluded from the calculation of GAAP diluted loss per share because
the effect would have been anti-dilutive. See the reconciliation of
GAAP diluted weighted average shares outstanding, used in the
computation of GAAP diluted loss per share, to adjusted diluted
weighted average shares outstanding, used in the computation of
adjusted diluted earnings per share, at the end of this news release.
-- Numbers may not add precisely due to rounding.
LIVANOVA PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED
(In millions)
June 30, December 31,
2026 2025
-------- ------------
ASSETS
Current Assets:
Cash and cash equivalents $516.6 $635.6
Accounts receivable, net of allowance 231.3 216.0
Inventories 172.6 164.7
Prepaid and refundable taxes 42.9 48.6
Prepaid expenses and other current assets 61.6 36.8
-------- ------------
Total Current Assets 1,025.0 1,101.6
-------- ------------
Property, plant, and equipment, net 273.3 242.6
Goodwill 779.1 792.8
Intangible assets, net 217.0 230.0
Operating lease assets 56.7 55.5
Investments 15.3 20.3
Deferred tax assets 198.7 111.0
Long-term derivative assets 57.3 36.6
Other assets 18.3 15.7
-------- ------------
Total Assets $2,640.9 $2,606.1
======== ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current debt obligations $3.6 $31.5
Accounts payable 103.4 97.2
Accrued liabilities and other 103.8 94.6
SNIA environmental liability 385.0 396.2
Current contingent consideration -- 50.0
Current litigation provision liability 20.1 12.6
Taxes payable 22.1 33.1
Accrued employee compensation and related
benefits 69.0 92.9
-------- ------------
Total Current Liabilities 707.0 808.1
-------- ------------
Long-term debt obligations 289.9 345.2
Long-term contingent consideration 42.1 42.0
Deferred tax liabilities 9.3 9.6
Long-term operating lease liabilities 49.7 48.3
Long-term employee compensation and related
benefits 14.0 13.6
Long-term derivative liabilities 152.9 83.9
Other long-term liabilities 50.7 55.4
-------- ------------
Total Liabilities 1,315.5 1,406.1
-------- ------------
Total Shareholders' Equity 1,325.3 1,200.0
-------- ------------
Total Liabilities and Shareholders' Equity $2,640.9 $2,606.1
======== ============
-- Numbers may not add precisely due to
rounding.
LIVANOVA PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS - UNAUDITED
(In millions) Six Months Ended June 30,
---------------------------
2026 2025
------------ -------------
Operating Activities:
Net income (loss) $130.9 ($300.2)
Adjustments to reconcile net income
(loss) to net cash provided by operating
activities:
Deferred income tax (benefit) expense (89.9) 2.8
Remeasurement of derivative instruments 52.2 (27.3)
Share-based compensation 25.2 17.0
Depreciation 17.1 13.3
Gain on sale of investment (13.6) --
Amortization of intangible assets 11.2 8.7
Remeasurement of contingent
consideration to fair value 10.5 3.7
Amortization of debt issuance costs 9.7 11.4
Amortization of operating lease assets 5.5 7.8
Impairment of investment 1.1 --
Loss on debt extinguishment 0.9 2.7
Loss on investment revaluation -
Ceribell, Inc. -- 3.6
Other, net (0.3) 1.0
Changes in operating assets and liabilities:
Accounts receivable, net (17.2) (13.7)
Inventories (10.1) (6.0)
Other current and non-current assets (17.4) 35.5
Accounts payable and accrued current and
non-current liabilities (32.7) (33.2)
Taxes payable (8.9) (0.9)
Litigation provision liability 7.8 (1.3)
SNIA environmental liability -- 362.1
------------ -------------
Net cash provided by operating
activities 81.8 86.9
------------ -------------
Investing Activities:
Purchases of property, plant, and
equipment (45.8) (25.9)
Proceeds from investments -- 6.5
Other, net (0.7) (0.2)
------------ -------------
Net cash used in investing activities (46.5) (19.6)
------------ -------------
Financing Activities:
Repayment of long-term debt obligations (95.9) (210.3)
Payment of contingent consideration (50.4) --
Other, net (4.3) (3.2)
------------ -------------
Net cash used in financing activities (150.7) (213.4)
------------ -------------
Effect of exchange rate changes on cash, cash
equivalents, and restricted cash (3.5) 16.2
------------ -------------
Net decrease in cash, cash equivalents,
and restricted cash (118.9) (129.9)
Cash, cash equivalents, and restricted cash
at beginning of period 635.6 723.6
------------ -------------
Cash and cash equivalents at end of period $516.6 $593.6
============ =============
-- Numbers may not add precisely due to
rounding.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED
(In millions)
------------------------------------------------------------------------------------------------------
Three Months Ended June 30,
---------------------------------------------------------------------------------------
2026 2025
----------------------------------------- --------------------------------------------
GAAP Adjusted GAAP Adjusted
Financial Certain Tax Financial Financial Certain Tax Financial
Measures Adjustments Measures Measures Adjustments Measures
------------- ------------- ----------- ------------- ------------- --------------
Income before
income tax $18.5 $-- $91.5 $33.3 $-- $73.5
Income tax
(benefit)
expense (90.2) 110.6 20.4 6.2 10.0 16.1
Loss from
equity
method
investments (0.1) -- (0.1) -- -- --
------ ---- -------- --- ----- --- ----- ------ ------- ---- ----- -------
Net income $108.6 ($110.6) $71.0 $27.2 ($10.0) $57.4
====== ===== ======== ===== ==== ===== ====== ======= === ===== =======
Income tax
rate (488.1)% 22.3% 18.5% 22.0%
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED
(In millions)
--------------------------------------------------------------------------------------------------------
Six Months Ended June 30,
-----------------------------------------------------------------------------------------
2026 2025
------------------------------------------ ---------------------------------------------
GAAP Adjusted Adjusted
Financial Certain Tax Financial GAAP Financial Certain Tax Financial
Measures Adjustments Measures Measures Adjustments Measures
------------- ------------- ------------ -------------- ------------- --------------
Income (loss)
before
income tax $46.0 $-- $163.0 ($282.3) $-- $137.0
Income tax
(benefit)
expense (85.9) 122.3 36.5 17.8 13.7 31.5
Loss from
equity
method
investments (1.0) -- (1.0) -- -- --
------ ---- -------- --- ------ --- ------- ----- ------- ---- ------ ------
Net income
(loss) $130.9 ($122.3) $125.5 ($300.2) ($13.7) $105.5
====== ===== ======== ====== ==== ======= ==== ======= === ====== ======
Income tax
rate (186.8)% 22.4% (6.3)% 23.0%
-- Numbers may not add precisely due to rounding.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
- UNAUDITED (In millions)
----------------------------------------------------- --------------------
Three Months Ended
June 30, 2026
--------------------
Net cash provided by operating activities $66.6
Less: Purchases of property, plant, and equipment (31.6)
Less: Dividends received from investments (0.2)
Add: Payment of contingent consideration included in
cash provided by operating activities 10.0
Add: 3T Heater-Cooler litigation payments 0.7
--------------- ---
Adjusted free cash flow $45.5
=============== ===
-- Numbers may not add precisely due to rounding.
The following table presents the reconciliation of GAAP diluted weighted average shares outstanding, used in the computation of GAAP diluted loss per share, to adjusted diluted weighted average shares outstanding, used in the computation of adjusted diluted earnings per share:
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES -
UNAUDITED (In millions)
--------------------------------------------------------- ----------------
Six Months Ended
June 30, 2025
----------------
GAAP diluted weighted average shares outstanding 54.5
Add: Effects of share-based compensation instruments 0.2
----------------
Adjusted diluted weighted average shares outstanding 54.7
================
-- Numbers may not add precisely due to rounding.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260804457807/en/
CONTACT: Briana Gotlin
Vice President, Investor Relations
Phone: +1 281 895 2382
e-mail: InvestorRelations@livanova.com