Recent News
On October 7 the company said it will present five-year THN‑3 and OSPREY data for its aura6000™ proximal hypoglossal nerve stimulation platform at the International Surgical Sleep Society meeting. On October 8 the company announced it would release third-quarter 2025 results and host a conference call on November 5. Management scheduled a presentation at the Wolfe Research Healthcare Conference for November 17. Investor’s Business Daily noted improvements in LivaNova’s Relative Strength ratings in October and late‑November.
Technical Analysis
ADX sits at 33.89, indicating a strong underlying trend in price action; strength exists even though direction requires confirmation from the directional indicators.
DI+ registers 28.75 and shows a decreasing trend, which reads bearish for directional bias; DI‑ shows a dip & reversal at 13.37, which also signals bearish pressure as DI‑ moved higher from its prior dip.
MACD equals 1.78 while the signal line sits at 2.05 and the MACD trend shows decreasing momentum; the current MACD position below its signal line confirms waning bullish momentum and raises the probability of short-term consolidation or retracement.
MRO reads 36.96 with a dip & reversal trend; a positive MRO indicates price presently above the model target and therefore a propensity for corrective movement toward equilibrium despite the recent reversal upward in the oscillator.
RSI at 58.52 shows a peak & reversal, consistent with a reduction in upward momentum and supporting the case for near-term price consolidation rather than a fresh sustained advance.
Price sits near the 20‑day average ($63.13) and just above the 12‑day EMA ($62.58) while remaining well above the 200‑day average ($48.35), reflecting that medium‑term trend remains constructive but short‑term indicators point to cooling. Bollinger bands compress tightly (upper ~ $63.84, lower ~ $62.41), implying reduced volatility and a higher likelihood of a directional breakout once momentum reappears.
Fundamental Analysis
Revenue totaled $357,753,000 with year‑over‑year revenue growth of -11.37% and quarter‑over‑quarter revenue growth of -86.83%; the YoY decline contrasts with pockets of product and regional strength mentioned by management. Operating income stands at $54,012,000 and EBIT at $44,774,000.
EBIT margin measures 12.52%, below the industry peer mean of 19.915%, and contracted by 3.25 percentage points QoQ and by 34.00 percentage points YoY, indicating margin pressure relative to peers and versus prior periods. Operating margin registers 15.10%, also below the industry peer mean of 20.588% and down 1.77 percentage points QoQ and 20.37 percentage points YoY.
Profitability metrics show modest returns: return on equity equals 2.31% (down 4.34 percentage points QoQ and 7.99 percentage points YoY) while return on assets equals 1.06%, below the industry peer mean of 1.902%. Free cash flow reached $62,177,000, producing a free cash flow yield of 2.17%, which compares favorably to the industry peer mean free cash flow yield of 0.91% and underpins liquidity strength.
Leverage and coverage reveal manageable but material obligations: total debt equals $486,547,000 and debt-to-EBITDA stands near 8.11x, while interest coverage measures 4.12x. Cash and short‑term investments total $646,079,000, and the cash ratio equals 0.78, supporting short‑term liquidity needs. Net working capital equals $269,561,000 with a cash conversion cycle of 118.48 days.
Earnings per share delivered $1.11 versus an estimate of $0.92, an EPS surprise of 20.65%, reinforcing recent operating cash and profitability improvements despite margin compression. WMDST values the stock as under‑valued based on the firm’s internal valuation; that valuation sits alongside a current P/E of 47.24 and a forward P/E near 55.57 while free cash generation remains a constructive offset to multiples.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-05 |
| NEXT REPORT DATE: | 2026-02-04 |
| CASH FLOW | Begin Period Cash Flow | $ 593.6 M |
| Operating Cash Flow | $ 85.1 M | |
| Capital Expenditures | $ -22.88 M | |
| Change In Working Capital | $ 8.3 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 52.4 M | |
| End Period Cash Flow | $ 646.1 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 357.8 M | |
| Forward Revenue | $ 188.7 M | |
| COSTS | ||
| Cost Of Revenue | $ 112.9 M | |
| Depreciation | $ 10.7 M | |
| Depreciation and Amortization | $ 15.2 M | |
| Research and Development | $ 48.6 M | |
| Total Operating Expenses | $ 303.7 M | |
| PROFITABILITY | ||
| Gross Profit | $ 244.9 M | |
| EBITDA | $ 60.0 M | |
| EBIT | $ 44.8 M | |
| Operating Income | $ 54.0 M | |
| Interest Income | $ 3.9 M | |
| Interest Expense | $ 10.9 M | |
| Net Interest Income | $ -6.96 M | |
| Income Before Tax | $ 33.9 M | |
| Tax Provision | $ 7.1 M | |
| Tax Rate | 20.978 % | |
| Net Income | $ 26.8 M | |
| Net Income From Continuing Operations | $ 26.8 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.92 | |
| EPS Actual | $ 1.11 | |
| EPS Difference | $ 0.19 | |
| EPS Surprise | 20.652 % | |
| Forward EPS | $ 1.03 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.6 B | |
| Intangible Assets | $ 1.0 B | |
| Net Tangible Assets | $ 131.7 M | |
| Total Current Assets | $ 1.1 B | |
| Cash and Short-Term Investments | $ 646.1 M | |
| Cash | $ 646.1 M | |
| Net Receivables | $ 211.6 M | |
| Inventory | $ 167.5 M | |
| Long-Term Investments | $ 14.8 M | |
| LIABILITIES | ||
| Accounts Payable | $ 88.2 M | |
| Short-Term Debt | $ 85.4 M | |
| Total Current Liabilities | $ 827.6 M | |
| Net Debt | — | |
| Total Debt | $ 486.5 M | |
| Total Liabilities | $ 1.4 B | |
| EQUITY | ||
| Total Equity | $ 1.2 B | |
| Retained Earnings | $ -1.18 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 21.19 | |
| Shares Outstanding | 54.605 M | |
| Revenue Per-Share | $ 6.55 | |
| VALUATION | Market Capitalization | $ 2.9 B |
| Enterprise Value | $ 2.7 B | |
| Enterprise Multiple | 45.068 | |
| Enterprise Multiple QoQ | 8.463 % | |
| Enterprise Multiple YoY | 7.695 % | |
| Enterprise Multiple IPRWA | high: 161.723 median: 104.027 mean: 88.348 LIVN: 45.068 low: -110.323 |
|
| EV/R | 7.557 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.21 | |
| Asset To Liability | 1.826 | |
| Debt To Capital | 0.296 | |
| Debt To Assets | 0.19 | |
| Debt To Assets QoQ | -1.225 % | |
| Debt To Assets YoY | -29.423 % | |
| Debt To Assets IPRWA | high: 0.737 median: 0.333 mean: 0.316 LIVN: 0.19 low: 0.002 |
|
| Debt To Equity | 0.42 | |
| Debt To Equity QoQ | -2.214 % | |
| Debt To Equity YoY | -18.976 % | |
| Debt To Equity IPRWA | high: 3.379 mean: 0.645 median: 0.633 LIVN: 0.42 low: -1.888 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.474 | |
| Price To Book QoQ | 5.607 % | |
| Price To Book YoY | 18.285 % | |
| Price To Book IPRWA | high: 12.447 median: 6.636 mean: 6.411 LIVN: 2.474 low: -4.114 |
|
| Price To Earnings (P/E) | 47.237 | |
| Price To Earnings QoQ | -45.778 % | |
| Price To Earnings YoY | -15.312 % | |
| Price To Earnings IPRWA | high: 256.954 mean: 126.205 median: 118.26 LIVN: 47.237 low: -227.904 |
|
| PE/G Ratio | 8.267 | |
| Price To Sales (P/S) | 8.003 | |
| Price To Sales QoQ | 7.25 % | |
| Price To Sales YoY | -7.088 % | |
| Price To Sales IPRWA | high: 77.674 mean: 33.409 median: 29.418 LIVN: 8.003 low: 0.679 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 55.565 | |
| Forward PE/G | 9.724 | |
| Forward P/S | 16.975 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -1.221 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.141 | |
| Asset Turnover Ratio QoQ | 1.502 % | |
| Asset Turnover Ratio YoY | 10.479 % | |
| Asset Turnover Ratio IPRWA | high: 0.417 LIVN: 0.141 median: 0.127 mean: 0.125 low: 0.001 |
|
| Receivables Turnover | 1.657 | |
| Receivables Turnover Ratio QoQ | -0.749 % | |
| Receivables Turnover Ratio YoY | 3.675 % | |
| Receivables Turnover Ratio IPRWA | high: 3.935 mean: 1.837 median: 1.771 LIVN: 1.657 low: 0.627 |
|
| Inventory Turnover | 0.678 | |
| Inventory Turnover Ratio QoQ | -4.602 % | |
| Inventory Turnover Ratio YoY | 15.775 % | |
| Inventory Turnover Ratio IPRWA | high: 2.068 LIVN: 0.678 mean: 0.533 median: 0.473 low: 0.09 |
|
| Days Sales Outstanding (DSO) | 55.065 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 118.477 | |
| Cash Conversion Cycle Days QoQ | -3.997 % | |
| Cash Conversion Cycle Days YoY | -9.132 % | |
| Cash Conversion Cycle Days IPRWA | high: 409.199 median: 201.455 mean: 194.033 LIVN: 118.477 low: -109.842 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.327 | |
| CapEx To Revenue | -0.064 | |
| CapEx To Depreciation | -2.141 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.5 B | |
| Net Invested Capital | $ 1.6 B | |
| Invested Capital | $ 1.6 B | |
| Net Tangible Assets | $ 131.7 M | |
| Net Working Capital | $ 269.6 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.781 | |
| Current Ratio | 1.326 | |
| Current Ratio QoQ | 2.848 % | |
| Current Ratio YoY | -60.657 % | |
| Current Ratio IPRWA | high: 14.251 mean: 2.77 median: 1.703 LIVN: 1.326 low: 0.159 |
|
| Quick Ratio | 1.123 | |
| Quick Ratio QoQ | 3.138 % | |
| Quick Ratio YoY | -60.854 % | |
| Quick Ratio IPRWA | high: 13.711 mean: 2.03 LIVN: 1.123 median: 1.093 low: 0.317 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 8.111 | |
| Cost Of Debt | 1.771 % | |
| Interest Coverage Ratio | 4.122 | |
| Interest Coverage Ratio QoQ | 10.997 % | |
| Interest Coverage Ratio YoY | 8.497 % | |
| Interest Coverage Ratio IPRWA | high: 119.631 median: 19.958 mean: 17.856 LIVN: 4.122 low: -165.333 |
|
| Operating Cash Flow Ratio | 0.06 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 70.361 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 2.03 % | |
| Revenue Growth | 1.483 % | |
| Revenue Growth QoQ | -86.826 % | |
| Revenue Growth YoY | -1137.063 % | |
| Revenue Growth IPRWA | high: 27.485 % LIVN: 1.483 % mean: 1.406 % median: 0.122 % low: -22.33 % |
|
| Earnings Growth | 5.714 % | |
| Earnings Growth QoQ | -113.232 % | |
| Earnings Growth YoY | -277.123 % | |
| Earnings Growth IPRWA | high: 105.556 % mean: 13.306 % median: 7.609 % LIVN: 5.714 % low: -86.957 % |
|
| MARGINS | ||
| Gross Margin | 68.442 % | |
| Gross Margin QoQ | 0.957 % | |
| Gross Margin YoY | -3.346 % | |
| Gross Margin IPRWA | high: 94.036 % LIVN: 68.442 % median: 64.812 % mean: 64.282 % low: -17.483 % |
|
| EBIT Margin | 12.515 % | |
| EBIT Margin QoQ | -3.247 % | |
| EBIT Margin YoY | -33.996 % | |
| EBIT Margin IPRWA | high: 82.825 % median: 19.944 % mean: 19.915 % LIVN: 12.515 % low: -487.428 % |
|
| Return On Sales (ROS) | 15.098 % | |
| Return On Sales QoQ | -1.77 % | |
| Return On Sales YoY | -20.373 % | |
| Return On Sales IPRWA | high: 69.921 % mean: 20.588 % median: 20.492 % LIVN: 15.098 % low: -487.428 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 62.2 M | |
| Free Cash Flow Yield | 2.172 % | |
| Free Cash Flow Yield QoQ | 19.604 % | |
| Free Cash Flow Yield YoY | 81.151 % | |
| Free Cash Flow Yield IPRWA | high: 5.888 % LIVN: 2.172 % mean: 0.908 % median: 0.733 % low: -18.664 % |
|
| Free Cash Growth | 30.151 % | |
| Free Cash Growth QoQ | -88.517 % | |
| Free Cash Growth YoY | 471.15 % | |
| Free Cash Growth IPRWA | high: 185.61 % LIVN: 30.151 % median: 24.443 % mean: 21.575 % low: -192.298 % |
|
| Free Cash To Net Income | 2.321 | |
| Cash Flow Margin | 13.878 % | |
| Cash Flow To Earnings | 1.854 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.058 % | |
| Return On Assets QoQ | -1.306 % | |
| Return On Assets YoY | -20.151 % | |
| Return On Assets IPRWA | high: 5.043 % mean: 1.902 % median: 1.792 % LIVN: 1.058 % low: -36.008 % |
|
| Return On Capital Employed (ROCE) | 2.588 % | |
| Return On Equity (ROE) | 0.023 | |
| Return On Equity QoQ | -4.341 % | |
| Return On Equity YoY | -7.992 % | |
| Return On Equity IPRWA | high: 0.068 median: 0.037 mean: 0.028 LIVN: 0.023 low: -0.624 |
|
| DuPont ROE | 2.349 % | |
| Return On Invested Capital (ROIC) | 2.223 % | |
| Return On Invested Capital QoQ | -7.104 % | |
| Return On Invested Capital YoY | -83.409 % | |
| Return On Invested Capital IPRWA | high: 5.308 % median: 2.535 % mean: 2.485 % LIVN: 2.223 % low: -14.919 % |
|