LivaNova — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third-quarter 2026 revenue was $393.1 million, representing a 9.9% increase on a reported basis and 10.0% on a constant-currency basis compared to $357.8 million in the prior-year period.
• U.S. GAAP diluted earnings per share (EPS) for the quarter was $0.11, compared to $0.49 in the third quarter of 2025.
• Adjusted diluted EPS for the quarter was $1.23, an increase from $1.11 in the prior-year period.
• Third-quarter net cash provided by operating activities was $73.7 million.
• Adjusted free cash flow for the quarter was $55.8 million.
• U.S. GAAP operating income was $28.4 million, down from $54.0 million in the prior-year period; adjusted operating income was $92.3 million, up from $80.4 million.
• For the nine months ended September 30, 2026, total revenue was $1,146.0 million, up 11.6% from $1,027.1 million.
• Nine-month adjusted diluted EPS was $3.48, up from $3.04 in the prior-year period.
• Nine-month adjusted free cash flow is estimated in the range of $140 million to $160 million.

Guidance and Future Outlook:

• Full-year 2026 revenue growth guidance was raised by 100 basis points to a range of 9% to 10% on a constant-currency basis (previously 8% to 9%).
• Full-year 2026 adjusted diluted EPS guidance was raised by $0.10 at the midpoint to a range of $4.40 to $4.50 (previously $4.30 to $4.40).
• Full-year 2026 adjusted free cash flow guidance remains unchanged at $140 million to $160 million.
• Foreign currency is expected to be a tailwind of approximately 1% for the full year, consistent with prior guidance.
• Management expects a share count of approximately 56 million for full-year 2026.

Business Segments and Product Lines:

• Cardiopulmonary segment revenue increased 10.9% to $225.3 million, driven by strong consumables demand, Essenz™ Perfusion System sales, and favorable realized price.
• Neuromodulation segment revenue increased 11.1% to $166.1 million, driven by higher volume and favorable realized price.
• Other revenue decreased 65.7% to $1.7 million, compared to $5.0 million in the prior year.
• Operational production was achieved on a new dedicated oxygenator manufacturing line, expanding capacity to address customer demand.
• In October 2026, the American Medical Association CPT® Editorial Panel established new Category I CPT® codes for LivaNova's proximal hypoglossal nerve stimulation therapy, with an expected effective date of January 1, 2028.
• In October 2026, full 36-month results from the CORE-VNS study were published, demonstrating a 76% median reduction in seizure frequency for people with Drug-Resistant Epilepsy.

Market and Competitive Landscape:

• Revenue growth was reported across all regions for both the Cardiopulmonary and Neuromodulation segments.
• Management cited healthy global demand for Cardiopulmonary and Epilepsy technologies as a driver for performance.

Risks and Challenges:

• The press release notes risks associated with global market volatility, supply chain pressures, cybersecurity incidents, and regulatory changes.
• Specific legal and regulatory risks mentioned include 3T Heater-Cooler litigation, SNIA environmental liability, and Medical Device Regulation (MDR) costs.
• Forward-looking non-GAAP financial measures cannot be reconciled to GAAP measures without unreasonable effort due to the uncertainty of future adjustments.

Management Commentary and Tone:

• Vladimir Makatsaria, CEO, stated the team continues to deliver robust revenue growth driven by commercial execution and healthy global demand.
• Management expressed confidence across the portfolio, citing progress against key milestones to address significant market demand and expand patient access.
• The tone reflects confidence in advancing strategic priorities, driving innovation for unmet patient needs, and delivering long-term shareholder value.

Other Key Points:

• The company has approximately 3,300 employees and operates in more than 100 countries.
• Cash and cash equivalents as of September 30, 2026, were $563.5 million.
• Total liabilities were $1,341.1 million, with long-term debt obligations of $295.2 million.
• The company hosts a live audiocast and conference call for investors, with a replay available for approximately 90 days.