LivaNova PLC ((LIVN)) has held its Q2 earnings call. Read on for the main highlights of the call.
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LivaNova PLC’s recent earnings call exuded a positive sentiment, underscored by robust financial performance and clinical advancements. The company reported significant revenue growth, particularly in its epilepsy and cardiopulmonary segments, despite facing supply chain challenges and transitional issues in neuromodulation. Overall, the sentiment was buoyant, driven by strong financial results and an optimistic outlook.
Strong Organic Revenue Growth
LivaNova achieved an impressive 10% organic revenue growth in Q2 2025. This growth was primarily fueled by the momentum in the cardiopulmonary business and solid performance in the neuromodulation sector, highlighting the company’s operational strength.
Significant Clinical and Regulatory Milestones in Epilepsy
The company announced noteworthy clinical milestones in epilepsy, with long-term results from the CORE-VNS study showing a remarkable 80% reduction in focal onset seizures and 95% in focal to bilateral tonic-clonic seizures, marking a significant achievement in patient outcomes.
Cardiopulmonary Segment Performance
LivaNova’s cardiopulmonary segment saw a 13% revenue increase compared to Q2 2024. Both heart-lung machine revenue and oxygenators experienced low double-digit growth, reflecting the segment’s robust performance.
CMS Proposal for VNS Therapy
The company has initiated a process with CMS for national Medicare coverage for VNS therapy in patients with treatment-resistant depression, supported by strong 24-month outcomes, indicating a strategic move to expand market access.
Improved Financial Performance
LivaNova reported a 13% year-over-year growth in adjusted operating income and an increase in adjusted free cash flow from $53 million to $68 million in the first half of 2025, showcasing its enhanced financial health.
Raising 2025 Revenue Guidance
The company raised its 2025 revenue guidance, with overall organic growth outlook increased by 200 basis points to between 9% and 10%, reflecting confidence in its future performance.
Challenges in Supply for Oxygenators
Despite strong demand, LivaNova faces challenges in meeting the supply for oxygenators due to third-party supply limitations, which could impact future growth if not addressed.
Neuromodulation Transition Challenges
The company is experiencing headwinds in the U.S. from generator supply dynamics, affecting the pace of recovery in deferred procedures, highlighting an area needing strategic focus.
Forward-Looking Guidance
LivaNova’s forward-looking guidance remains optimistic, with a 10% organic revenue growth reported in Q2 2025. The company upgraded its cardiopulmonary revenue growth forecast to 12%-13% for the full year. Epilepsy segment growth was also notable, with a raised revenue growth guidance of 4.5%-5.5% for 2025. The company expects 8%-9% constant currency revenue growth and adjusted EPS between $3.70 and $3.80, driven by strong operational performance and strategic investments.
In conclusion, LivaNova PLC’s earnings call painted a positive picture, with strong financial results and strategic advancements in key segments. Despite facing supply chain and transitional challenges, the company’s raised guidance and robust performance in epilepsy and cardiopulmonary segments underscore its growth potential and commitment to addressing unmet medical needs.