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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 performance has been driven by robust fundamentals and long-term growth potential. The company's Q3 2025 earnings beat expectations, with quarterly earnings of $1.11 per share, and revenue growth of 12.5% on a reported basis. The strong performance was driven by Cardiopulmonary and Neuromodulation segment growth. Additionally, the company raised its 2025 guidance, reflecting confidence in its ability to deliver on targets. A recent Investor Day also showcased a comprehensive strategic roadmap and long-range financial plan, highlighting a revitalized innovation strategy and operational excellence.

1.c. Company Highlights

2. LivaNova's Q3 2025 Earnings: Strong Organic Growth and Rising Guidance

LivaNova delivered a robust financial performance in the third quarter of 2025, with revenue reaching $358 million, representing an 11% increase on a constant currency basis and 13% on an organic basis. The company's adjusted gross margin as a percent of net revenue was 69%, generally in line with the 70% reported in the third quarter of 2024. The actual EPS came out at $1.11, beating estimates of $0.919.

Publication Date: Nov -13

📋 Highlights
  • Organic Revenue Growth:: LivaNova achieved 13% organic revenue growth in Q3 2025, with full-year guidance raised to 9.5–10.5% (up 50 bps), driven by cardiopulmonary and epilepsy segments.
  • Cardiopulmonary Momentum:: Segment revenue hit $203M (+16% YoY), with heart-lung machine revenue up >20% and full-year growth guidance raised to 12.5–13.5%.
  • China Market Acceleration:: Commercial launch in China occurred six months ahead of schedule in August 2025, with 2026 growth expected to be a major contributor to global 80% HLM placement targets.
  • Epilepsy Segment Performance:: Revenue grew 6% YoY in Q3, with full-year guidance of 5–6%, supported by CORE-VNS data and reimbursement improvements starting January 2026.
  • Free Cash Flow and Capacity Expansion:: Adjusted free cash flow guidance of $160–180M for 2025 and a 15% internal capacity increase (output below 10% due to component shortages) highlight growth readiness and investment in future platforms.

Segment Performance

The cardiopulmonary segment was a key driver of growth, with revenue increasing by 16% to $203 million, driven by a strong performance in heart-lung machines and consumables. The epilepsy segment also reported a 6% increase in revenue, with growth across all regions. According to Vladimir Makatsaria, the company is seeing a high demand for its products in China, with a significant contributor to growth expected in 2026.

Guidance and Outlook

LivaNova is raising its overall organic revenue growth outlook to between 9.5% and 10.5%, and expects adjusted diluted earnings per share in the range of $3.80 to $3.90. The company is also increasing its full-year 2025 revenue growth guidance to 8.5% to 9.5% on a constant currency basis. Analysts estimate next year's revenue growth at 6.5%.

Valuation and Metrics

Using the current valuation metrics, LivaNova's P/E Ratio stands at -14.22, P/B Ratio at 2.67, and P/S Ratio at 2.29. The company's ROE is -18.77%, and ROIC is 12.09%. The Free Cash Flow Yield is 6.19%, indicating a relatively attractive cash generation profile. With the rising guidance and strong organic growth, the stock may be poised for further upside.

Investments and Future Prospects

The company is making progress on its obstructive sleep apnea and difficult-to-treat depression programs, and is investing in a printed circuit board platform for future software and service revenue. LivaNova is also working to improve its manufacturing capacity, with a 15% increase in capacity this year, and plans to add another manufacturing line next year. As Alex stated, the company is prioritizing top-line growth over EBITDA margin expansion and earnings, and will discuss this strategy at the Investor Day.

3. NewsRoom

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LivaNova to Highlight Real-World Evidence from CORE-VNS Study and New Health Economics Analyses at American Epilepsy Society 2025 Annual Meeting

Dec -03

Source: businesswire.com

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LivaNova Appoints Lucile Blaise as Global Head of Commercialization, Obstructive Sleep Apnea

Dec -02

Source: businesswire.com

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

Nov -26

Source: defenseworld.net

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LivaNova to Present at Piper Sandler Healthcare Conference in December

Nov -25

Source: businesswire.com

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LivaNova's VNS Therapy for Drug-Resistant Epilepsy Procedures Receives Increased Provider Reimbursement from U.S. Centers for Medicare & Medicaid Services

Nov -24

Source: businesswire.com

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LivaNova Delivers Strategic Roadmap and Long-Range Financial Plan at Investor Day

Nov -12

Source: businesswire.com

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LivaNova PLC (LIVN) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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LivaNova (LIVN) Tops Q3 Earnings and Revenue Estimates

Nov -05

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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Medacta

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Value: 0.9

Growth: 6.6

Quality: 6.8

Yield: 0.6

Momentum: 7.0

Volatility: 6.7

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Yield: 3.1

Momentum: 4.0

Volatility: 6.0

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LivaNova

A-Score: 3.8/10

Value: 6.2

Growth: 5.8

Quality: 4.0

Yield: 0.0

Momentum: 4.0

Volatility: 3.0

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Growth: 7.4

Quality: 6.9

Yield: 0.6

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Volatility: 3.0

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Ambu

A-Score: 3.0/10

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Growth: 5.9

Quality: 6.2

Yield: 0.0

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Volatility: 3.0

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GN Store Nord

A-Score: 2.8/10

Value: 5.5

Growth: 4.2

Quality: 4.1

Yield: 0.0

Momentum: 2.0

Volatility: 1.0

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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

63.67$

Current Price

63.67$

Potential

-0.00%

Expected Cash-Flows