LivaNova (LIVN) investor relations material

Executive summary

• Achieved double-digit revenue growth in Q1 2026, with reported revenue up 14.3% to $362.3 million and constant-currency growth of 11.1%, driven by strong performance across all regions and both Cardiopulmonary and Neuromodulation segments.

• Adjusted diluted EPS grew 11% to $0.98, and net income was $22.3 million, reversing a prior-year loss.

• Raised full-year 2026 revenue growth guidance to 7.0%-8.0% and adjusted diluted EPS guidance to $4.20-$4.30, reflecting strong execution and confidence in future growth.

• Received FDA premarket approval for the aura6000 System for obstructive sleep apnea and published positive 12-month OSPREY trial results, supporting clinical efficacy.

• Maintained strong liquidity with $539.7 million in cash and reduced long-term debt to $285.2 million after early repayments.

Financial highlights

• Q1 2026 revenue was $362.3 million, up 14.3% reported and 11.1% constant-currency year-over-year, with a $10 million FX tailwind.

• Adjusted gross margin was 68.2% (down from 68.9% prior year); adjusted operating margin was 19.6%-20%.

• Adjusted operating income was $71.1 million, up from $64.6 million year-over-year.

• Adjusted diluted EPS was $0.98, up from $0.88 in Q1 2025, driven by higher revenue.

• Adjusted free cash flow was $3.8-$4 million, down from $20 million, due to higher capital spend and working capital needs.

Outlook and guidance

• Full-year 2026 revenue growth guidance raised to 7.0%-8.0% constant-currency, with FX expected to add ~1%.

• Adjusted diluted EPS guidance increased to $4.20-$4.30, representing ~9% growth at midpoint.

• Adjusted operating income margin expected at 20%-21%; adjusted free cash flow guidance maintained at $160-$180 million.

• Capital spending for 2026 projected at $120 million, supporting manufacturing expansion and IT investments.

• Cardiopulmonary revenue expected to grow 8.5%-9.5%, Epilepsy/Neuromodulation revenue 6.0%-7.0% for 2026.