The Cooper Companies, Inc.

Thank you for standing by. My name is Janine and I will be your conference operator for today. At this time, I would like to welcome everyone to the Cooper Company's earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. To ask a question, please press star 1 and to withdraw a question, please press star 1 again. I will now hand the call over to Kim Duncan, Vice President of Investor Relations and Risk Management. Please go ahead.

Good afternoon, and welcome to Cooper Company's second quarter 2026 earnings conference call. Today's call, we will discuss results and guidance concluded in the earnings release, and then use the remaining time for questions. Our presenters on today's call are Al White, President and Chief Executive Officer of and Brian Andrews, Chief Financial Officer and Treasurer. Before we begin, I'd like to remind you that this conference call will contain forward-looking statements, including statements relating to revenues, EPS, cash flows, interest, FX and tax rates, tariffs, and other financial guidance and expectations, strategic and operational initiatives, market conditions and trends, and product launches and demand. Forward-looking statements depend on assumptions, data, or methods that may be incorrect or imprecise and are subject to risks and uncertainties. Events that could cause our actual results and future actions of the company to differ materially from those described in forward-looking statements are set forth under the caption, forward-looking statements in today's earnings release and are described in our SEC filings, including Cooper's Form 10-K and Form 10-Q filings, all of which are available on our website at coopercos.com. Also, as a reminder, the non-GAAP financial information we will provide on this call is provided as a supplement to our GAAP information. We encourage you to consider our results under GAAP as well as non-GAAP and refer to the reconciliations provided in our earnings release, which is available on the investor relations section of our website under quarterly materials. Should you have any additional questions following the call, please email ir at cooperco.com. And now I'll turn the call over to Al for his opening remarks.

Thank you, Kim, and welcome everyone to our Q2 earnings call. We delivered record revenue and non-GAAP earnings this quarter, with revenues growing 8% to $1.08 billion and non-GAAP earnings per share increasing 26% to $1.21. This marks our 10th consecutive quarter of beating consensus earnings expectations, demonstrating the consistency and disciplined execution of our operating model. We also generated another quarter of robust free cash flow, reinforcing confidence in the strength and durability of our cash generation. Cooper Vision reported a solid quarter with revenues increasing 8% or 4% organically, driven by continued strength in the Americas and momentum in EMEA. Cooper Surgical also performed well with revenues up 8% or 6% organically, led by our fertility business growing 13% or 10% organically. We also delivered meaningful operating margin expansion this quarter, as back office consolidation and efficiency initiatives continue to deliver operating leverage, especially within Cooper Surgical. Overall, our results reflect steady execution against our strategy of driving sustainable, profitable growth through innovation, new product introductions, leveraging our infrastructure, generating free cash flow, and gaining market share. Now, before moving into quarterly details, let me address two key topics. First is our strategic review. We initiated this process to evaluate opportunities to unlock long-term shareholder value across a range of potential outcomes. At the same time, we've been working through litigation related to a December 2023 embryo culture media recall in our fertility business. We've now reached settlements with substantially all of the claimants in this case as disclosed in the Form 8K, which was filed this evening with our earnings release. With that done, we are now actively advancing discussions with multiple parties that have submitted significant indications of interest in Cooper Surgical. To summarize that activity, we've received robust interest in Cooper Surgical, and in conjunction with our board and the assistance of our advisors, we're focused on identifying the optimal path forward to maximize shareholder value. Cooper Surgical's strong performance, highlighted by record revenue and non-GAAP earnings this past quarter, strengthens our confidence in the business, and underscores our view that this is a very valuable asset. That said, we are working with Speed and plan to provide a more definitive update to the market soon. Second is an update on our capital allocation strategy. We remain focused on investing in high return organic growth opportunities, maintaining balance sheet flexibility, and repurchasing shares. While buybacks were limited this quarter, They remain a core part of our strategy, and we expect to be significantly more active moving forward. With that, let's turn to our Q2 performance starting with Cooper Vision. After achieving an 18th consecutive year of share gains in 2025, our focus is on extending that streak. We remain the number one global contact lens company with roughly one-third of all wearers using Cooper Vision lenses. and we expect this leadership position to continue serving as a key driver of revenue share gains as wearers continue transitioning to daily silicone hydrogel lenses. Additionally, our leadership position in pediatric myopia control through MySight will remain an important growth driver. For the quarter, Cooper Vision delivered revenue of $724 million, driven by share gains in both the Americas and EMEA. The Americas grew 7%, supported by continued strength in premium lenses, while EMEA increased 6%, fueled by strong demand for MyDay and MySite, further reinforcing our number one position in that region for both revenue and wares. In Asia-Pac, revenue declined 6% as we continue repositioning our portfolio, including rationalizing legacy hydrogel products, and managed through broader market softness across the region, including greater than expected weakness in Japan, which created additional headwinds and further pressured our results. Turning to products, daily silicone hydrogel lenses grew 8%, with our flagship MyDay brand delivering double-digit growth, driven by expanding customer partnerships and success with premium products. We also saw gains across both branded and private label channels, with improvement across all regions and particular strength in multifocals and energists. And both of these products remain key growth drivers as we continue rolling them out in new markets. The multifocal has excellent momentum supported by its next-generation optical design that enables an easy-to-fit lens with consistent performance across different lighting conditions, distances, and patient profiles. And Energist continues to perform exceptionally well, benefiting from its innovative design that combines premium optics with advanced material technology and designed specifically for maximum comfort in today's always-on digital lifestyle. With respect to clarity, we continue to upgrade the portfolio, including upcoming launches of our next-generation multifocal and EMEA in Asia pack, and the TORIC and multifocal launch in Japan. Turning to our FRP portfolio, BioFinAID delivered strong results, growing 5% organically. Growth was led by Toric and multifocal lenses, including our market-leading extended ranges and made-to-order offerings. Parameter Breath continues to be a key driver for BioAffinity, supported by our highly innovative and flexible manufacturing platforms that offer more than six times the prescription options than all other monthly brands combined. As a result, eye care practitioners can fit virtually any patient who walks through the door using just this one product family. Turning to myopia control, MySite delivered an excellent quarter, growing 24% to 32 million. Our newest market, Japan, is exceeding expectations with strong and accelerating momentum. We recently hosted the sixth annual Asia-Pac Myopia Management Summit in Tokyo, highlighting the clinical performance and patient benefits of MySite and are seeing increased awareness and adoption following the event. Also, our recent launch of the highly innovative MyDay MySite in Europe is performing extremely well as eye care practitioners absolutely love this product. And we're seeing a similar reception as we expand availability globally. At the same time, we're increasing our consumer awareness activity during the high-demand back-to-school period by having multiple markets run national marketing campaigns to further build parent awareness. Overall, these initiatives spanning innovation, geographic expansion, customer partnerships, and consumer activation reinforce our confidence and MySite's continued robust growth. Turning to Cooper Surgical, Q2 revenue reached $358 million, reflecting growth of 8% or 6% on an organic basis. Within this, fertility performed well, growing 10% organically to $144 million. Growth was driven by strength across our leading global portfolio of products and services, including capital equipment, where we saw strength in the U.S., and continued global momentum from WITNESS, our highly successful automated lab tracking system. These capital sales provided a near-term lift while also positioning us for longer-term growth as they drive incremental consumable demand over time. Additionally, late quarter buy-in activity in the Middle East contributed to performance as distributors restocked following the reopening of airspace. Geographically, Results were led by EMEA, where we continued gaining share and solid performance in the Americas. Asia-Pac was mixed with softness in China, offset by strength in other markets. By product category, growth was led by genomics, capital equipment, and consumables, supported by new clinic wins, expansion within existing accounts, and continued adoption of recently launched products. Looking ahead, underlying fertility trends remain healthy, and we anticipate continued strength in the back half of the year, with fertility expected to grow in the mid-single-digit range. The long-term outlook also remains positive, supported by a strong innovation pipeline, particularly in our equipment portfolio. Regarding the overall global fertility market, we continue to expect steady improvements, supported by improving cycles and increasing investments in technology and workflow optimization by fertility clinics. The fundamental drivers of the industry also remain intact, including the ongoing trend of delayed childbirth and expanding access to care. This was recently highlighted in the U.S. with updated CDC data showing U.S. fertility rates fell in 2025 to a new annual low of 3.6 million births. Within this, women aged 30 and older now comprise 53% of all births. And for the first time in the U.S., more babies were born to women 40 and above than to women under 20. In response to these trends, support for expanding IVF coverage is growing. For example, in California, starting in January this year, most large group health plans with over 100 employees are now required to cover IVF and infertility treatments, significantly increasing access to care. Moving to office and surgical products, In services, sales reached $214 million, up 4%. Medical devices grew a healthy 6% as our surgical OBGYN and specialty devices continued to deliver strong performance. And Paragard came in ahead of expectations, delivering flat revenue for the quarter. Now, before I turn the call over to Brian, let me conclude with a few comments on our revenue guidance. For Cooper Vision, we're guiding to full-year organic growth of 3.5% to 4.5%. Similar to our peers, we expect market growth at the low end of the historical 4% to 6% range, with Asia-Pac weighing on the category, while EMEA and the Americas remain healthy. Importantly, this softness is regional, not global, and we view it as temporary as Asia-Pac resets amid economic pressure, especially in China and Japan, and to a lesser extent, Korea. Specifically for Cooper Vision, we now expect AsiaPak to decline in Q3 with pressure from both the market and our ongoing rationalization of legacy hydrogel products. That said, we now have full regional leadership in place, including a new regional head and new country managers in Japan, Korea, and China, and we're seeing strengthening execution and commercial discipline, including progress on mandate contract wins and product launches. Outside of Asia-Pac, demand remains solid for premium products, including daily silicone hydrogel lenses, as well as torques and multifocals. For Cooper Surgical, our guidance is unchanged at 4% to 5% organic growth. And with that, I'll turn the call over to Brian.