LivaNova's Q2 2025: Unraveling Contradictions in Capacity, Growth Potential, and Market Dynamics

Oxygenator capacity and market share gains, neuromodulation business growth potential, capacity expansion and supply demand mismatch, OSA product development and commercialization strategy, market share and demand dynamics in the oxygenator business are the key contradictions discussed in LivaNova's latest 2025Q2 earnings call.



Strong Revenue and Organic Growth:
- LivaNova reported revenue of $353 million for Q2 2025, an increase of 9% on a constant currency basis and 10% on an organic basis compared to the prior year.
- The growth was driven by robust demand in the cardiopulmonary business and solid performance in neuromodulation across all regions, along with disciplined execution and operating margin expansion.

Cardiopulmonary Segment Performance:
- Revenue in the cardiopulmonary segment reached $199 million, up 13% year-over-year, with heart-lung machine revenue growing in the low double digits.
- This growth was attributed to increased placements of the Essenz product, market share gains in oxygenators, and favorable price premiums, despite challenges with third-party supply constraints.

Epilepsy Business and Reimbursement Changes:
- Epilepsy revenue increased 6% year-over-year, with growth across all regions, despite a field safety notification process.
- The company expects updated generators to be available in most major regions by the second half of 2025, supporting deferred procedure recapture and improved market demand.
- Additionally, LivaNova anticipates a 4.5% to 5.5% revenue growth for 2025, reflecting mid-single-digit growth in the U.S. due to successful inventory swap efforts and strong commercial execution globally.

Clinical and Regulatory Milestones:
- LivaNova announced long-term data from the core VNS study, demonstrating significant seizure reduction in patients with drug-resistant epilepsy, validating the effectiveness of VNS therapy.
- The company initiated a CMS reconsideration process for VNS therapy in unipolar patients with treatment-resistant depression, supported by positive clinical data and publications from the RECOVER study.
- These milestones are aimed at expanding clinical and regulatory approvals, improving patient access, and enhancing reimbursement strategies to drive adoption and penetration of LivaNova's therapies.