LIVNMEDIUM SIGNALFINANCIAL10-K

LivaNova delivered strong operational performance with substantially higher operating income while significantly reducing debt burden and building cash reserves.

The company's operating leverage is clearly working, with revenue growth translating into meaningfully expanded profitability. The substantial debt reduction combined with increased cash position strengthens the balance sheet considerably, providing more financial flexibility for growth investments or potential strategic initiatives.

Comparing 2026-02-25 vs 2025-02-25View on EDGAR →
FINANCIAL ANALYSIS

LivaNova demonstrated strong operational execution with revenue growing 10.7% to $1.4B while operating income expanded substantially to $199.4M. The company significantly strengthened its balance sheet by reducing total debt 40% to $376.1M while building cash reserves to $635.6M. Capital expenditures grew notably to $81.0M, suggesting increased investment in growth initiatives, while operating cash flow expanded 39% to $254.3M, indicating healthy underlying cash generation.

FINANCIAL STATEMENT CHANGES
Capital Expenditure
Cash Flow
+72.1%
$47.1M→$81.0M

Capital expenditure jumped 72.1% — major investment cycle underway; assess returns on deployment.

Operating Income
P&L
+54.5%
$129.1M→$199.4M

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Cash & Equivalents
Balance Sheet
+48.2%
$428.9M→$635.6M

Cash position surged 48.2% — strong cash generation or capital raise providing significant financial cushion.

Total Debt
Balance Sheet
-40%
$627.0M→$376.1M

Debt reduced 40% — deleveraging strengthens balance sheet and reduces financial risk.

Operating Cash Flow
Cash Flow
+39%
$183.0M→$254.3M

Operating cash flow surged 39% — exceptional cash generation, highest quality earnings signal.

Interest Expense
P&L
+22%
$48.3M→$58.9M

Interest costs rose 22% — monitor debt levels and coverage ratio in rising rate environment.

Total Liabilities
Balance Sheet
+18.5%
$1.2B→$1.4B

Liabilities increased 18.5% — monitor debt-to-equity ratio and interest coverage.

Accounts Receivable
Balance Sheet
+11.8%
$193.2M→$216.0M

Receivables grew 11.8% — monitor days sales outstanding for collection efficiency.

Inventory
Balance Sheet
+11.6%
$147.6M→$164.7M

Inventory built 11.6% — monitor whether demand supports this build or if write-downs may follow.

Revenue
P&L
+10.7%
$1.3B→$1.4B

Revenue growing 10.7% — solid top-line momentum, watch margins for quality of growth.

LANGUAGE CHANGES
NEW — 2026-02-25
PRIOR — 2025-02-25
ADDED
As of February 18, 2026, 54,689,876 ordinary shares were outstanding.
Market for Registrant s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 34 6.
Management s Discussion and Analysis of Financial Condition and Results of Operations 35 7A.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 44 9A.
Centers for Medicare Medicaid Services Code of Conduct LivaNova PLC s Code of Ethics and Business Conduct CODM Chief Operating Decision Maker Company LivaNova PLC and its consolidated subsidiaries Court of Appeal Court of Appeal in Milan CPB Cardiopulmonary bypass CSRD EU Corporate Sustainability Reporting Directive (2022/2464) Cyberonics Cyberonics, Inc.
2 3 Abbreviation Definition DRE Drug-resistant epilepsy DTC Depository Trust Company DTD Difficult-to-treat depression: The Company s broader business and strategic communications reference DTD as the preferred disease state when speaking more broadly about depression treatment, as it is a more inclusive and clinically evolving concept that encompasses patients whose depression continues to cause significant burden despite usual treatment efforts.
Meanwhile, LivaNova s RECOVER clinical study defines the patient population using the inclusion criteria for TRD, typically characterized by major depressive disorder that does not adequately respond to at least two different antidepressant treatments given at an appropriate dose and duration.
As a result, the Company uses TRD in the context of the RECOVER study to maintain consistency with the study protocol approved by the U.S.
References to either term in this filing are context-dependent but describe overlapping populations.
ECJ European Court of Justice Embedded Derivatives The bifurcated embedded derivatives associated with the 2025 Notes and 2029 Notes, collectively ESPP Global Employee Share Purchase Plan EtO Ethylene oxide EU European Union Exchange Act U.S.
REMOVED
As of February 18, 2025, 54,351,765 ordinary shares were outstanding.
Market for Registrant s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 36 6.
Management s Discussion and Analysis of Financial Condition and Results of Operations 37 7A.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 47 9A.
LivaNova and the Company refer to LivaNova PLC and its consolidated subsidiaries.
Abbreviation Definition 2015 Plan LivaNova PLC 2015 Incentive Award Plan 2015 Plan Amendment Amendment No.
1 to the Amended and Restated LivaNova PLC 2022 Incentive Award Plan ACS Advanced Circulatory Support ALung ALung Technologies, Inc.
AOCI Accumulated other comprehensive income (loss) APAC Asia-Pacific ASC Accounting Standards Codification ASMs Anti-seizure medications ASU Accounting Standards Update Audit Committee LivaNova s Audit and Compliance Committee Barclays Barclays Bank Ireland PLC Bridge Loan Facility Incremental Facility Amendment No.
1 to the 2021 First Lien Credit Agreement, relating to a 200 million bridge loan facility, dated February 24, 2022, and repaid on July 6, 2022 Capped Call Transactions The 2025 Capped Calls and the 2029 Capped Calls CCPA California Consumer Privacy Act CE Mark Conformit Europ enne, French for European Conformity CED Coverage with Evidence Development CEO Chief Executive Officer CFO Chief Financial Officer CISO Chief Information Security Officer CLO Chief Legal Officer CMS The U.S.
Centers for Medicare Medicaid Services Code of Conduct LivaNova PLC s Code of Ethics and Business Conduct 3 Abbreviation Definition CODM Chief Operating Decision Maker Court of Appeal Court of Appeal in Milan CPB Cardiopulmonary bypass CSRD EU Corporate Sustainability Reporting Directive (2022/2464) Cyberonics Cyberonics, Inc.
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