LivaNova (LIVN) AI Stock Analysis

• Market Cap: $3.41B
• Dividend Yield: N/A
• Average Volume (3M): 900.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• Revenue Growth: 8.97%
• EPS Growth: -1024.86%
• Country: US
• Employees: 2,900
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.86
• Shares Outstanding: 54,689,877
• 10 Day Avg. Volume: 970,613
• 30 Day Avg. Volume: 900,271
• PEG Ratio: 0.03
• Price to Book (P/B): 2.79
• Price to Sales (P/S): 2.42
• P/FCF Ratio: 19.36
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 2.34
• Enterprise Value/Gross Profit: 3.44
• Enterprise Value/Ebitda: -26.97
• 1Y Price Target: $80.13
• Price Target Upside: 28.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 4.21
• Revenue Forecast (FY): $1.49B

• Rating: 68 Neutral
• Price Target: $67.00 ▲(7.32% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by solid cash generation and supportive balance-sheet trends despite notable earnings volatility (including a 2025 net loss). Technicals are constructive with the stock in an uptrend, while valuation is weakened by the negative P/E and lack of dividend data. Earnings-call guidance and sentiment are generally positive but moderated by supply constraints and a significant planned cash payment assumption.

Positive Factors

Strong cash generation

Consistent operating and free cash flow through 2021–2025 (2025 OCF ~$254M; FCF ~$173M) provides durable internal funding for R&D, capacity expansion and debt reduction. Reliable cash generation supports multi‑year strategic initiatives and cushions operational volatility.

Recurring consumables & installed base

The cardiopulmonary model pairs durable platform sales with repeat consumable purchases; mid‑teens consumable growth and rising Essence adoption (55% placements, 80% target) create a recurring, procedure‑linked revenue stream that supports steady margins and predictable cash conversion.

Regulatory & reimbursement progress for epilepsy

A ~48% Medicare reimbursement increase for VNS and FDA approval of a cloud digital platform are structural enablers: they expand access, improve hospital economics for implants, and underpin long‑term adoption of Connected Care, supporting sustained epilepsy revenue and monetization of services.

Negative Factors

Earnings volatility / 2025 net loss

A sharp swing to a large 2025 net loss despite revenue growth highlights persistent below‑the‑line risks and earnings volatility. Continued profitability instability can erode retained earnings, limit capital allocation flexibility and raise execution scrutiny over multiple quarters.

Supply and component constraints

Oxygenator and component supply bottlenecks capped 2025 output and force conservative production plans into 2026. Persistent manufacturing or supplier constraints can constrain organic growth, require capital investments to scale capacity, and pressure margins until resolved.

Epilepsy revenue mix skews to replacements

A revenue mix where ~66% of U.S. epilepsy sales are replacement implants yields stable recurring cash but limits upside from new‑patient adoption. Structural dependence on replacements means organic growth is constrained by replacement cycles rather than broadening market penetration alone.

LivaNova Business Overview & Revenue Model

Company Description

LivaNova PLC, a medical device company, designs, develops, manufactures, and sells therapeutic solutions worldwide. It operates through three segments: Cardiopulmonary, Neuromodulation, and Advanced Circulatory Support. The Cardiopulmonary segment develops, produces, and sells cardiopulmonary products, including oxygenators, heart-lung machines, autotransfusion systems, perfusion tubing systems, cannulae, connect, and other related products. The Neuromodulation segment designs, develops, and markets VNS Therapy System, an implantable device that delivers vagus nerve stimulation (VNS) therapy for the treatment of drug-resistant epilepsy, difficult-to-treat depression, and obstructive sleep apnea. It is also involved in the development and clinical testing of the VITARIA System for treating heart failure through VNS. The Advanced Circulatory Support segment develops, produces, and sells temporary life support products, such as cardiopulmonary and respiratory support solutions. The company serves perfusionists, neurologists, neurosurgeons, and other physicians, as well as hospitals, other medical institutions, and healthcare providers. It sells its products through direct sales representatives and independent distributors. The company has a research collaboration with Verily to capture clinical biomarkers of depression. LivaNova PLC was founded in 1987 and is headquartered in London, the United Kingdom.

How the Company Makes Money

LivaNova makes money primarily by selling medical devices and recurring-use products used alongside those devices. A significant portion of revenue is generated in its Cardiopulmonary segment through sales of heart-lung machine platforms and, importantly, the associated disposable consumables and accessories (e.g., circuits/sets and other single-use items) that are purchased repeatedly by hospitals for each procedure, creating a recurring revenue stream tied to procedure volumes. In its Neuromodulation segment, revenue is generated from sales of implantable vagus nerve stimulation (VNS) systems used to treat drug-resistant epilepsy, including the implantable pulse generator and leads; additional revenue comes from replacement generators (as batteries deplete over time), upgrades to newer device models, and related programming/clinical support accessories and services, which together create a lifecycle-driven stream beyond the initial implant. Across segments, revenue is realized through sales to hospitals and providers via direct sales and distributors; earnings are influenced by factors such as procedure volumes (cardiac surgeries and epilepsy implants), pricing and reimbursement dynamics, the installed base driving repeat purchases (consumables and replacements), and product adoption in existing and new geographies. Specific partnership-related revenue details not publicly summarized in this response are null.

LivaNova Financial Statement Overview

Summary

Strong and consistently positive operating cash flow/free cash flow (including 2025) and solid gross profitability support the score. Offsetting this are uneven earnings with a sharp swing to a large net loss in 2025 despite higher revenue, and some balance-sheet pressure implied by the loss even as leverage trends improved.

Income Statement

Revenue has expanded steadily from 2022–2024, and gross profit remains strong (about 69% in 2024), indicating solid product economics. Profitability, however, is inconsistent: operating profit improved materially into 2024, but 2025 shows a sharp swing to a large net loss despite higher revenue, suggesting meaningful below-the-line headwinds and earnings volatility.

Balance Sheet

The capital base looks supportive with equity around $1.2–$1.3B against ~$2.5–$2.6B of assets, and leverage appears moderate (debt-to-equity near ~0.5 in 2023–2024). Debt has trended down from 2024 to 2025, which is constructive. Offsetting this, the 2025 net loss likely pressured retained earnings and overall balance-sheet resilience versus the prior year.

Cash Flow

Cash generation is a clear positive: operating cash flow and free cash flow are consistently positive from 2021–2025, with 2025 showing strong operating cash flow (~$254M) and healthy free cash flow (~$173M). The main weakness is variability—free cash flow growth turned negative in 2023 and 2025—implying cash conversion can fluctuate year to year even as the overall level remains solid.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.39B	1.25B	1.15B	1.02B	1.04B
Gross Profit	939.90M	870.87M	771.25M	707.23M	705.99M
EBITDA	-129.50M	202.52M	38.48M	30.90M	-6.33M
Net Income	-242.50M	63.23M	17.55M	-86.25M	-135.82M
Balance Sheet
Total Assets	2.61B	2.51B	2.43B	2.29B	2.20B
Cash, Cash Equivalents and Short-Term Investments	635.60M	428.86M	266.50M	214.17M	207.99M
Total Debt	473.30M	676.77M	640.40M	580.43M	286.70M
Total Liabilities	1.41B	1.19B	1.15B	1.09B	906.31M
Stockholders Equity	1.20B	1.32B	1.28B	1.21B	1.29B
Cash Flow
Free Cash Flow	173.20M	135.93M	39.93M	43.40M	77.07M
Operating Cash Flow	254.30M	183.04M	74.91M	69.90M	102.54M
Investing Cash Flow	-72.90M	-48.16M	-40.33M	-38.40M	36.90M
Financing Cash Flow	-285.70M	18.55M	21.48M	280.10M	-181.48M

LivaNova Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 62.43
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LIVN, the sentiment is Positive. The current price of 62.43 is below the 20-day moving average (MA) of 65.67, below the 50-day MA of 64.91, and above the 200-day MA of 55.69, indicating a neutral trend. The MACD of -1.40 indicates Positive momentum. The RSI at 43.63 is Neutral, neither overbought nor oversold. The STOCH value of 32.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LIVN.

LivaNova Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TMDX	75 Outperform	$4.28B	21.73	53.88%	―	41.20%	173.53%
UFPT	69 Neutral	$1.59B	25.04	17.36%	―	29.47%	23.24%
LIVN	68 Neutral	$3.41B	-13.83	-21.49%	―	8.97%	-1024.86%
ITGR	66 Neutral	$3.00B	26.50	6.05%	―	7.81%	-26.32%
INSP	66 Neutral	$1.58B	18.63	21.07%	―	16.81%	34.90%
AORT	59 Neutral	$1.79B	211.68	2.44%	―	9.81%	-1067.00%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

LivaNova Corporate Events

LivaNova Announces Chief Legal Officer Resignation and Succession

On January 12, 2026, LivaNova PLC announced that Michael Hutchinson has resigned as Senior Vice President, Chief Legal Officer and Company Secretary, with his last day set for January 26, 2026, as he departs to pursue another opportunity. The company plans to engage an external search firm to identify a new Chief Legal Officer, signaling a formal succession process for this key leadership role and aiming to ensure continuity in its legal and governance functions.

The most recent analyst rating on (LIVN) stock is a Hold with a $66.00 price target. To see the full list of analyst forecasts on LivaNova stock, see the LIVN Stock Forecast page.