LivaNova (LIVN) Q1 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool Thu, May 7, 2026 at 8:39 PM GMT+7 42 min read LIVN Image source: The Motley Fool. Chief Executive Officer and Member of the Board of Directors — Vladimir Makatsaria Chief Financial Officer — Alex Shvartsburg President, Global Epilepsy — Stephanie Bolton Briana Gotlin: Thank you, and welcome to our conference call and webcast discussing LivaNova s financial results for the first quarter of 2025. Joining me on today s call are Vladimir Makatsaria, our Chief Executive Officer and Member of the Board of Directors; Alex Shvartsburg, our Chief Financial Officer; Ahmet Tezel, our Chief Innovation Officer; Stephanie Bolton, President of Global Epilepsy; and Zach Glazier, Director of Investor Relations. Before we begin, I would like to remind you that the discussions during this call will include forward-looking statements. Factors that could cause actual results to differ materially are discussed in the company s most recent filings and documents furnished to the SEC, including today s press release that is available on our website. We do not undertake to update any forward-looking statements. Also, the discussions will include certain non-GAAP financial measures with respect to our performance, including, but not limited to, revenue results, which will be stated on a constant currency and organic basis. Reconciliations to the most directly comparable GAAP financial measures can be found in today s press release, which is available on our website. We have also posted a presentation to our website that summarizes the points of today s call. This presentation is complementary to the other call materials and should be used as an enhanced communication tool. You can find the presentation and press release in the Investors section of our website under News, Events and Presentations at investor.livanova.com. With that, I ll turn the call over to Vlad. Vladimir Makatsaria: Thank you, Briana, and thank you, everyone, for joining us today. Welcome to LivaNova s conference call for the first quarter of 2025. Before turning to results in the quarter, allow me to comment on a few important updates: the 12-month data from our OSPREY trial, the SNIA ruling and the impact of tariffs. This morning, we announced 12-month top line data from OSPREY, our randomized controlled trial for moderate to severe obstructive sleep apnea, or OSA. The study featured a differentiated neurostimulation modality called proximal hypoglossal nerve stimulation, or pHGNS. The OSPREY trial demonstrated rapid and sustained improvement for patients, who received pHGNS, including those with severe OSA, elevated body mass index, or BMI, and high risk of complete concentric collapse. At 12 months of therapy, the treatment arm responder rate was 65%. The OSPREY 12-month results further validate the potential of this therapy as a treatment alternative for the large and growing OSA population. With the strength of our clinical data, the expertise of our neuromodulation team and the strategic growth opportunity ahead, we are eager to bring this innovation to patients. Ahmed will provide additional details on the trial results and our differentiated technology later in the call. Turning to the SNIA litigation. Our first quarter results include a liability of $360 million related to the Italian Supreme Court decision, which we disclosed a few weeks ago. Importantly, we believe the court s decision effectively retires a longstanding overhang on the company. Alex will provide more details on the financial implications of the ruling later in the call. Regarding tariffs, we are operating in an uncertain environment, and our top priority is to provide critical medical technologies to our customers and their patients. Based on an assessment of our geographic manufacturing footprint and supply chain, at present, we expect tariffs will be a small and manageable headwind for LivaNova, which is captured within the guidance provided today. Alex will provide more details on our manufacturing footprint and financial consideration related to tariffs later in the call. For the remainder of the call, I will discuss our first quarter results and updates to our revenue guidance for the full year 2025. After my comments, Ahmet will discuss our significant clinical and regulatory achievements in OSA and progress in difficult-to-treat depression, or DTD. Alex will then provide additional details on our results and updated 2025 guidance. I will wrap up with closing remarks before moving to Q&A. In the quarter, we achieved 10% organic revenue growth versus the prior year, driven by the continued success of the Essenz rollout, demand for Cardiopulmonary consumables and strong neuromodulation performance in the Europe and Rest of World regions. Notably, this marks the eighth time in the past nine quarters that LivaNova has delivered double-digit organic revenue growth. This top line result, coupled with operational efficiencies, contribu

LivaNova (LIVN) Q1 2025 Earnings Transcript

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LivaNova (LIVN) Q1 2025 Earnings Transcript

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