LivaNova (LIVN) Q4 2025 Earnings Call Transcript
The Motley Fool
by newsfeedback@fool.com (Motley Fool Transcribing)February 25, 2026
AI-Generated Deep Dive Summary
LivaNova (LIVN) delivered a strong financial performance in its Q4 2025 earnings call, showcasing robust revenue growth across both its cardiopulmonary and epilepsy segments. The company reported $361 million in quarterly revenue, reflecting a 9.5% constant currency and organic growth compared to the previous year. Full-year revenue also saw double-digit growth, marking the fifth consecutive year of double-digit earnings per share (EPS) growth. Notably, the cardiopulmonary segment achieved a 10% increase in quarterly revenue, driven by strong performance from heart-lung machines, with ESSENCE placements accounting for 55% of annual units.
The epilepsy segment also demonstrated resilience, with revenue growing 9% year over year, supported by double-digit growth in Europe and the Rest of World (ROW), while the U.S. saw a more modest increase. Adjusted gross margins remained stable at 68%, reflecting favorable mix and pricing effects despite challenges from currency fluctuations and tariffs. Operational efficiency improvements were evident as adjusted SG&A expenses decreased to 36% of revenue, down from 38% in the prior year, while R&D investment increased due to higher spending on obstructive sleep apnea (OSA) and core development.
LivaNova’s financial health continued to improve, with a cash position of $636 million at year-end, up from $429 million, fueled by strong operating cash flow and the release of restricted cash related to litigation. Total debt dropped to $377 million, down significantly from $628 million, following early repayments of term facilities and convertible notes. Adjusted free cash flow for the quarter was $53 million, a slight decline from $62 million in the prior year but still robust overall, with full-year adjusted free cash flow reaching $183 million.
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Originally published on The Motley Fool on 2/25/2026