LivaNova PLC

If you'd like to register a question during today's event, please press star one on your telephone keypad. As a reminder, this conference call is being recorded. And I'd like to introduce your host for today's conference, Ms. Brianna Gotland, Libanova's Vice President of Investor Relations. Please go ahead.

Thank you and welcome to our conference call and webcast discussing Libanova's financial results for the third quarter of 2025. Joining me on today's call are Vladimir Makatsaria, our Chief Executive Officer and member of the Board of Directors, Alex Schwartzberg, our Chief Financial Officer, Ahmet Tizel, our Chief Innovation Officer, and Zach Glazer, 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 investor section of our website under news, events, and presentations at investor.livanova.com. With that, I'll turn the call over to Vlad.

Thank you, Brianna, and thank you, everyone, for joining us today. Welcome to Livanova's conference call for the third quarter of 2025. In the quarter, Livanova delivered 13% organic revenue growth versus the prior year, driven by continued momentum in the cardiopulmonary business and solid epilepsy performance across all regions. The ability to sustain strong organic growth, expand margins, and drive strong cash generation reflects the durable market leadership positions of our core businesses. The consistent results also speak to the strength of our execution and the productivity improvements we've embedded across the organization. These results also highlight Libanova's unique ability to drive near-term performance while reinvesting in the core, advancing the obstructive sleep apnea program, and maintaining upside optionality in difficult-to-treat depression. Together, these actions are aligned with our strategic priorities and position Livanova well for the future. We recently internally launched a new strategic framework alongside the unveiling of a refreshed logo and visual identity, which you may have noticed in today's earnings materials. This new strategic framework and branding reflect Livanova's direction, momentum and continued focus on growth and innovation. We look forward to discussing these strategic priorities, how we plan to build on our strong foundation and how we will shape the future of Livanova in more detail at our investor day next week on November 12th. Now turning to segment results. For the cardiopulmonary segment, revenue was $203 million in the quarter, an increase of 16% versus the third quarter of 2024. Heart-lung machine revenue grew over 20% versus the prior year period, driven by sequential acceleration in essence placements and sustained favorable price premiums. This includes a significant majority of essence placements in developed markets in the quarter. In August, we initiated the commercial launch of Essence in China, which is our second largest HLM market after the U.S. We've received positive early feedback from hospitals and clinicians, and we're pleased with the launch thus far. Given the length of the sales cycles for Essence, we expect the rollout to be a more meaningful growth driver in 2026. Cardiopulmonary consumables revenue grew in the mid-teens driven by market share gains, procedure growth, and price. Strong demand for oxygenator continues to outpace the market's ability to supply. While our manufacturing capacity expansion plans are progressing well and remain on track, third-party component supply is a limiting factor for even more rapid expansion. Our team remains focused on working with suppliers to meet the production needs. We now expect cardiopulmonary revenue to grow 12.5% to 13.5% for the full year 2025. up from 12 to 13% previously. This forecast assumes continued HLM growth and increased penetration in existing markets. We still expect Essence to represent approximately 60% of annual HLM unit placements in 2025, up from 40% in 2024. This forecast also reflects robust market and share growth for consumables. Turning to epilepsy. Revenue increased 6% versus the third quarter of 2024, with growth across all regions. Epilepsy revenue in the Europe and rest of world regions increased a combined 12% versus the prior year period, while the US epilepsy revenue increased 5% year over year. These results reflect strong commercial execution globally. During the quarter, we initiated commercial rollout activities to drive awareness of the core VMS data among the epilepsy clinical community worldwide. While we're still in the early stages of commercial activities, initial feedback from the clinical community is encouraging. Building clinical evidence is a key component of our strategy in epilepsy, and the core VMS data is expected to further strengthen our foundation and support future commercial and educational efforts. For the full year 2025, we now expect epilepsy revenue growth of 5 to 6 percent, up from 4.5% to 5.5% previously. This forecast incorporates mid-single-digit growth in the US and assumes the Europe and rest of world regions will grow a combined low double digits for the year. This is consistent with prior guidance, although at the high end of respective ranges. We continue to see momentum in the global epilepsy business across volume, price, and mix. In summary, due to the strong growth we saw in the quarter and continued momentum across all growth drivers, we're raising our overall organic revenue growth outlook by 50 basis points to between 9.5% and 10.5%. We continue to make progress on the obstructive sleep apnea and difficult to treat depression programs. And we look forward to providing updates at our investor day next week. With that, I'll turn the call over to Alex.