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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on LIVN

LivaNova's recent momentum is driven by its strong Q4 earnings, with revenue increasing 12.1% year-over-year. The company's adjusted diluted earnings per share also surpassed expectations, according to its Q4 2025 earnings call transcript. Additionally, institutional investors such as Envestnet Asset Management Inc. and Artisan Partners Limited Partnership have increased their holdings in the company, with the latter boosting its stake by 94.5%. Furthermore, LivaNova has been upgraded to a Zacks Rank #2 (Buy) by Zacks, citing growing optimism about its earnings prospects.

1.c. Company Highlights

2. LivaNova's 2025 Earnings: A Strong Foundation for Growth

LivaNova delivered a robust financial performance in 2025, with double-digit revenue growth, adjusted operating margin expansion, and robust cash generation. Revenue grew 9.5% on a constant currency and organic basis in the fourth quarter, while adjusted gross margin was 68%, and adjusted operating income was $64 million, with an adjusted operating income margin at 18%. Adjusted diluted earnings per share was $0.86, reflecting strong revenue growth and effective cost management. However, actual EPS came out at $0.567, below estimates of $0.8.

Publication Date: Mar -01

📋 Highlights
  • Revenue & Margin Growth:: 2025 revenue grew 13% (cardiopulmonary) and 6% (epilepsy), with adjusted operating margin at 18% and cash balance rising to $636M.
  • 2026 Guidance:: Projects 6–7% revenue growth, $4.15–$4.25 adjusted EPS (8% growth midpoint), and $160–180M adjusted free cash flow despite $400M SNIA payment.
  • Segment Growth Drivers:: Cardiopulmonary to grow 7–8% in 2026 (HLM, consumables), epilepsy to grow 5.5–6.5% (clinical evidence, reimbursement improvements).
  • Innovation Milestones:: FDA approval of epilepsy digital health platform, OSA PMA submission on track for 2026, and next-gen Bluetooth-enabled IPG R&D for 2027 launch.
  • Reimbursement Outlook:: Medicaid expected to align with Medicare reimbursement over time, enhancing epilepsy and OSA growth opportunities amid improved end-of-service opportunities.

Segment Performance

The cardiopulmonary segment drove revenue growth, with a 10% increase in the fourth quarter and 13% for the full year. The company expects cardiopulmonary revenue to grow 7% to 8% in 2026, driven by continued HLM growth, market share gains in consumables, and expanded manufacturing capacity. In the epilepsy segment, revenue increased 9% in the fourth quarter and 6% for the full year, with expected growth of 5.5% to 6.5% in 2026, driven by impactful clinical evidence, innovation, and sustained commercial excellence.

Innovation Roadmap

LivaNova is making significant progress in its innovation roadmap, including the recent FDA approval for its cloud-based digital health platform in epilepsy. The company plans to leverage this platform to streamline workflows, provide immediate access to patient insights, and enable more digitally connected care pathways. As Ahmet Tezel, Chief Innovation Officer, noted, this platform will be a key driver of growth in the epilepsy segment.

Valuation Metrics

With a P/E Ratio of -15.87 and an EV/EBITDA of -30.63, it's clear that the market is pricing in significant growth expectations for LivaNova. The company's P/S Ratio of 2.78 suggests that investors are willing to pay a premium for its revenue growth. The Free Cash Flow Yield of 4.5% indicates that the company is generating significant cash, which should support its growth initiatives.

Outlook

LivaNova forecasts 2026 revenue growth between 6% and 7%, driven by sustained execution in cardiopulmonary and the combination of impactful clinical evidence and improved reimbursement dynamics in epilepsy. The company projects adjusted diluted EPS in the range of $4.15 to $4.25, representing 8% growth at midpoint, and adjusted free cash flow in the range of $160 million to $180 million. Analysts estimate next year's revenue growth at 6.8%, which is within the company's guidance range.

3. NewsRoom

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LivaNova (NASDAQ:LIVN) vs. Fresenius Medical Care AG & Co. KGaA (NYSE:FMS) Head to Head Comparison

Mar -07

Source: defenseworld.net

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All You Need to Know About LivaNova (LIVN) Rating Upgrade to Buy

Mar -05

Source: zacks.com

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Artisan International Small-Mid Fund Q4 2025 Performance Review

Mar -02

Source: seekingalpha.com

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LivaNova PLC $LIVN Shares Acquired by Envestnet Asset Management Inc.

Mar -02

Source: defenseworld.net

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Artisan Partners Limited Partnership Increases Holdings in LivaNova PLC $LIVN

Feb -28

Source: defenseworld.net

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LivaNova PLC (LIVN) Q4 2025 Earnings Call Transcript

Feb -25

Source: seekingalpha.com

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LivaNova (LIVN) Reports Q4 Earnings: What Key Metrics Have to Say

Feb -25

Source: zacks.com

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LivaNova (LIVN) Tops Q4 Earnings and Revenue Estimates

Feb -25

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.66%)

6. Segments

Cardiopulmonary

Expected Growth: 4.5%

LivaNova's Cardiopulmonary segment growth is driven by increasing adoption of cardiopulmonary bypass and cardioplegia solutions, rising demand for minimally invasive cardiac surgeries, and expanding presence in emerging markets. Additionally, the company's focus on innovation, strategic partnerships, and cost-effective products contribute to its 4.5% growth.

Neuromodulation

Expected Growth: 4.8%

LivaNova's Neuromodulation segment growth is driven by increasing adoption of VNS Therapy for treatment-resistant depression, expansion into new geographies, and investments in product development. Additionally, growing awareness of mental health and increasing demand for non-pharmacological treatments contribute to the 4.8% growth rate.

Advanced Circulatory Support

Expected Growth: 5.2%

LivaNova's Advanced Circulatory Support segment growth of 5.2% is driven by increasing adoption of its LifeSPARC system, expansion into new geographies, and rising demand for minimally invasive cardiac procedures. Additionally, the company's strategic partnerships and investments in R&D are expected to further fuel growth in this segment.

Other

Expected Growth: 4.2%

LivaNova's 4.2% growth is driven by increasing adoption of its Neuromodulation products, particularly in the treatment of epilepsy and depression. Strong sales of its Cardiovascular products, such as heart valves and cardiopulmonary bypass equipment, also contribute to growth. Additionally, the company's strategic investments in emerging markets and expansion of its product portfolio through R&D and acquisitions support its growth momentum.

7. Detailed Products

Cardiac Rhythm Management (CRM) Devices

LivaNova's CRM devices are designed to regulate the heartbeat and provide therapy to patients with abnormal heart rhythms.

Neuromodulation Devices

LivaNova's neuromodulation devices are used to treat chronic pain, epilepsy, and other neurological disorders.

Cardiovascular (CV) Surgical Devices

LivaNova's CV surgical devices are used in open-heart surgeries to repair or replace heart valves and other cardiovascular structures.

Autologous Cell Therapy

LivaNova's autologous cell therapy is used to treat patients with heart failure and other cardiovascular diseases.

8. LivaNova PLC's Porter Forces

Forces Ranking

Threat Of Substitutes

LivaNova PLC faces moderate threat from substitutes, as patients may opt for alternative treatments or devices for cardiovascular and neuromodulation conditions.

Bargaining Power Of Customers

LivaNova PLC's customers, primarily hospitals and medical professionals, have limited bargaining power due to the company's strong brand reputation and limited alternatives.

Bargaining Power Of Suppliers

LivaNova PLC's suppliers, including component manufacturers and contract manufacturers, have moderate bargaining power due to the company's dependence on a few key suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the medical device industry, including regulatory hurdles and significant R&D investments.

Intensity Of Rivalry

The medical device industry is highly competitive, with several established players competing for market share, resulting in a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 31.77%
Debt Cost 3.95%
Equity Weight 68.23%
Equity Cost 8.58%
WACC 7.11%
Leverage 46.57%

11. Quality Control: LivaNova PLC passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

62.06$

Current Price

62.06$

Potential

-0.00%

Expected Cash-Flows