Omnicell, Inc.

Thank you for standing by. At this time, I would like to welcome everyone to today's OmniCell third quarter 2025 financial results 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. If you'd like to ask a question during this time, simply press star followed by the number one on your telephone keypad. Once again, star one. And if you'd like to withdraw your question, simply press star one again. Thank you. I would now like to turn the call over to Kathleen Nemeth, Senior Vice President, Investor Relations. Kathleen?

Good morning, and welcome to the OmniCell Third Quarter 2025 Financial Results Conference Call. On the call with me today are Randall Lipps, OmniCell Chairman, President, CEO, and Founder, and Baird Radford, Executive Vice President and Chief Financial Officer, as well as Nnamdi Njoku, Executive Vice President, and Chief Operating Officer. This call will contain forward-looking statements, including statements related to financial projections or performance and market or company outlook based on current expectations. These forward-looking statements speak only as of today or the date specified on the call. Actual results and other events may differ materially from those contemplated due to numerous factors, that involves substantial risks and uncertainties. For more information, please refer to our press release issued today, OmniCell's annual report on Form 10-K filed with the SEC on February 27, 2025, and in other more recent reports filed with the SEC. Except as required by law, we do not assume any obligation to update any forward-looking statements. During this call, we will discuss some non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most comparable GAAP financial measures are included in our financial results press releases. Our results were released this morning and our financial results press releases are posted in the investor relations section of our website at ir.omnicell.com. With that, I will turn the call over to Randall.

Good morning and welcome to OmniCell's third quarter 2025 earnings call. We are pleased to report another strong quarter with total revenues, non-GAAP EBITDA, and non-GAAP EPS all exceeding the upper end of our previously issued guidance. We believe this robust performance reflects strength in our core point of care business and exceptional execution by the entire OmniCell team. Continued demand for our flagship point-of-care connected devices, including XT Extend, remained strong and drove our robust top-line performance during the quarter. We are happy to see strong adoption of innovative solutions across inpatient and outpatient settings with recent wins at major health systems and government healthcare facilities. We believe that our transformation into an intelligence medication management technology company is progressing well, and we are encouraged by early positive customer feedback on our Omnisphere cloud-based platform. Looking ahead, we remain focused on delivering innovative solutions globally that aim to continuously improve the customer experience and advance our customers closer to the industry-defined vision of the autonomous pharmacy. We believe that our commitment to operational excellence, customer-centric innovation, and cybersecurity positions us to drive long-term value for all stakeholders. As we have outlined previously, we expect our future growth to continue to be driven by three core pillars. First, expanding our market presence. We're actively working to grow our connected devices footprint across the inpatient and outpatient care environments, including nursing units, operating rooms, and a full spectrum of pharmacy settings. We find that recent customer wins and increased platform adoption underscore the strength of our solutions and the trust we're building across the healthcare continuum. Secondly, scaling reoccurring revenue. We're also focused on expanding our base of predictable reoccurring revenue through service contracts, software subscriptions, and cloud-based offerings, which is anticipated to give us greater visibility into our business and deliver long-term value to customers. Lastly, accelerating our technology platform Omnisphere. Omnisphere is our cloud-native platform designed to unify all OmniCell products under a single, secure infrastructure. It is purpose-built to enable enterprise-wide visibility into medication and supply inventory and simplify access to automation and intelligence tools. As previously announced, Omnisphere achieved HITRUST CSFI1 certification, demonstrating our commitment to cybersecurity and adherence to high industry standards for data protection and medication management. Before we begin reviewing our third quarter 2025 results, I'd like to take a moment to welcome Baird Radford to Omnisale as our new Executive Vice President and Chief Financial Officer. Baird brings more than 30 years of experience in healthcare and technology finance leadership, and we are thrilled to have him join our executive team. His deep expertise in driving strategic growth and operational excellence will be instrumental as we continue to progress our transformation into an intelligent medication management technology company. We look forward to Baird's leadership as we advance through innovation and executional rigor and seek to further our mission to deliver value to our customers, partners, and stockholders. Turning to our third quarter 2025 financial results. Total revenue in the third quarter was 311 million, representing an increase of 28 million or approximately 10% compared to the third quarter of 2024 and an increase of 20 million or approximately 7% compared to the previous quarter. Our third quarter 2025 earnings per share in accordance with GAAP were 12 cents per share compared to 19 cents per share in the third quarter of 2024 and 12 cents per share in the prior quarter Our third quarter 2025 non-GAAP earnings per share were 51 cents compared with 56 cents per share in the same period last year and 45 cents per share in the prior quarter. Finally, during the third quarter of 2025, we substantially completed the $75 million stock repurchase program, which our board authorized earlier this year. Despite a complex macroeconomic backdrop, We remain encouraged by the resilience and adaptability we are seeing in the hospital and health system markets. While inflation and regulatory uncertainties continue to influence capital spending decisions, we're seeing a steady and continued focus on strategic investments. Hospitals seem to be prioritizing technologies that deliver strong ROI and operational efficiency, areas where we believe our portfolio is well aligned. On the policy front, Although some uncertainties remain around federal funding, we're optimistic about the long-term commitment by hospitals and health systems to medication management infrastructure and innovation. Our technology and services solutions are designed to support hospitals in navigating these dynamics, and we're confident in our ability to grow through continued partnerships and value creation, despite some of these industry headwinds. As we continue to execute on our strategic transformation, we're seeing strong market validation of our product and services roadmap. Our customers are responding positively to the breadth and depth of our solutions, particularly as we expand our reach across the continuum of care. From the successful rollout of our XD stand offering to the early customer experiences with our cloud native Omnisphere platform, It's clear that our technology is resonating with healthcare providers who indicated they are seeking to enhance visibility, cybersecurity, efficiency, and patient safety. These innovative solutions are not only driving demand, but also, we believe, reinforcing OmniCell's position as a trusted partner in the journey toward the autonomous pharmacy. This was another strong quarter for our points of care solutions. including XD cabinets for nursing care areas, anesthesia workstations for perioperative settings, and XD Extend. Leading healthcare providers across the U.S. and Canada, including the Department of Veterans Affairs, are choosing OmniCell solutions to support their medication dispensing needs. One of the largest health systems in the southern United States selected OmniCell's points of care solutions. along with our premier inventory optimization service intelligence offering and other central pharmacy solutions in an effort to increase inventory visibility, improve insights, and optimize workflows across their Georgia-based network. Our specialty pharmacy services offering, which is designed to help health systems launch and scale specialty pharmacy and 340B programs, continues to gain traction in the market. A leading hospital in Oregon's southern coast, has selected Omnicel to help its efforts to expand access to high-acuity therapies across rural communities, aligning with the system's mission to deliver integrated community-based care. A not-for-profit health system in the southeast United States is launching its first specialty pharmacy with support from Omnicel. This new program is intended to support multiple hospitals and closely align with the system's cancer centers. expanding access to life-sustaining therapies while advancing integrated, locally delivered care. As we look ahead, I'm energized by the momentum we're building through our commitment to innovation. As hospitals and health systems navigate a dynamic environment, OmniCell remains steadfast in our mission to be their most trusted partner, empowering them to achieve better outcomes, reduce costs, and alleviate staff burnout. I am confident that our focus on delivering value through innovation will continue to position us for success and support our customers as they shape the future of healthcare. As a reminder, OmniCell will be attending the 2025 American Society of Hospital Pharmacists, ASHP, mid-year meeting in Las Vegas from December 8th through the 10th, where we are very excited to be sharing some of our new innovations. Now, with that, I'd like to turn the call over to Bear. Bear?