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Geographic and Segment Information | 9 Months Ended
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Sep. 30, 2025
Segment Reporting [Abstract] |
Geographic and Segment Information | Note 10. Geographic and Segment Information Segment Information LivaNova identifies operating segments based on how it manages, evaluates, and internally reports its business activities to allocate resources, develop and execute its strategy, and assess performance. LivaNova has two reportable segments: Cardiopulmonary and Neuromodulation. Net revenue of the Company’s reportable segments includes revenues from the sale of products developed, manufactured, and distributed by each segment, as well as from services related to certain products. LivaNova’s Cardiopulmonary segment is engaged in the design, development, manufacture, marketing, and sale of cardiopulmonary products, including HLMs, oxygenators, autotransfusion systems, perfusion tubing systems, cannulae, and other related accessories, and provides services related to certain of these products. LivaNova’s Neuromodulation segment is engaged in the design, development, manufacture, marketing, and sale of devices that deliver neuromodulation therapy for treating DRE and DTD. Neuromodulation products include the VNS Therapy System, which consists of an implantable pulse generator, a lead that connects the generator to the vagus nerve, and other accessories. It also includes the development and management of clinical testing of LivaNova’s aura6000 System for treating OSA. LivaNova operates under three geographic regions: U.S., Europe, and Rest of World. The following table presents net revenue by operating segment and geographic region (in thousands):
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Cardiopulmonary |  |  |  |  |  |  |  |
United States |  | $ | 71,946 |  |  | $ | 62,504 |  |  | $ | 204,023 |  |  | $ | 177,954 |
Europe (1) |  | 50,052 |  |  | 40,894 |  |  | 143,605 |  |  | 120,387 |
Rest of World (1) |  | 81,220 |  |  | 68,841 |  |  | 231,182 |  |  | 203,503 |
|  | 203,218 |  |  | 172,239 |  |  | 578,810 |  |  | 501,844 |
Neuromodulation |  |  |  |  |  |  |  |
United States |  | 118,390 |  |  | 112,906 |  |  | 343,950 |  |  | 330,518 |
Europe (1) |  | 14,521 |  |  | 11,922 |  |  | 47,445 |  |  | 40,919 |
Rest of World (1) |  | 16,614 |  |  | 15,033 |  |  | 48,693 |  |  | 45,172 |
|  | 149,525 |  |  | 139,861 |  |  | 440,088 |  |  | 416,609 |
Other Revenue (2) |  | 5,010 |  |  | 6,020 |  |  | 8,234 |  |  | 13,154 |
Totals (3) |  |  |  |  |  |  |  |
United States |  | 190,447 |  |  | 179,828 |  |  | 548,085 |  |  | 519,985 |
Europe (1) |  | 67,683 |  |  | 52,815 |  |  | 194,160 |  |  | 158,414 |
Rest of World (1) |  | 99,623 |  |  | 85,477 |  |  | 284,887 |  |  | 253,208 |
|  | $ | 357,753 |  |  | $ | 318,120 |  |  | $ | 1,027,132 |  |  | $ | 931,607 |
(1)“Europe” includes the UK, Germany, France, Italy, the Netherlands, Spain, Belgium, Poland, Sweden, Switzerland, Austria, Norway, Portugal, Finland, and Denmark. Excluding Europe and the U.S., “Rest of World” includes all other countries where LivaNova operates. (2)“Other Revenue” includes rental and site services income not allocated to segments. In addition, for the three and nine months ended September 30, 2024, “Other Revenue” includes revenue from the Company’s former ACS reportable segment. (3)No single customer represented over 10% of the Company’s consolidated net revenue. No country’s net revenue exceeded 10% of the Company’s consolidated net revenue except for the U.S. LivaNova defines segment income as operating income before restructuring expense, amortization of intangible assets, the Saluggia site provision, merger and integration expense, and other income and expense not allocated to segments. Other income and expense not allocated to segments primarily includes corporate expense, rental income, and the results of LivaNova’s former ACS reportable segment. LivaNova’s CODM is the Company’s CEO, who is regularly provided the results comprising segment income to make strategic business decisions, including, but not limited to, evaluation of the Company’s business portfolio, R&D investment decisions, and consideration of the Company’s organizational structure. The following table presents a reconciliation of segment income to consolidated income (loss) before tax (in thousands):
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Cardiopulmonary |  | $ | 24,698 |  |  | $ | 21,669 |  |  | $ | 80,796 |  |  | $ | 56,007 |
Neuromodulation |  | 56,185 |  |  | 49,533 |  |  | 164,558 |  |  | 151,023 |
Segment income |  | 80,883 |  |  | 71,202 |  |  | 245,354 |  |  | 207,030 |
Other expense |  | (26,871) |  |  | (35,584) |  |  | (88,542) |  |  | (115,000) |
Operating income |  | 54,012 |  |  | 35,618 |  |  | 156,812 |  |  | 92,030 |
SNIA environmental liability expense |  | (1,745) |  |  | — |  |  | (363,815) |  |  | — |
Interest expense (1) |  | (10,863) |  |  | (15,878) |  |  | (38,429) |  |  | (47,303) |
Loss on debt extinguishment |  | — |  |  | — |  |  | (2,651) |  |  | (25,482) |
Foreign exchange and other income/(expense) |  | (7,493) |  |  | 24,701 |  |  | (332) |  |  | 12,585 |
Income (loss) before tax |  | $ | 33,911 |  |  | $ | 44,441 |  |  | $ | (248,415) |  |  | $ | 31,830 |
(1)“Interest expense” includes contractual interest expense associated with LivaNova’s short- and long-term financing arrangements and the amortization of debt discount and issuance costs of $5.9 million and $17.3 million for the three and nine months ended September 30, 2025, respectively, and $5.5 million and $15.7 million for the three and nine months ended September 30, 2024, respectively. The following tables present the components of segment income, including significant expenses, of LivaNova’s reportable segments (in thousands):
|  | Cardiopulmonary |  | Neuromodulation
|  | Three Months Ended September 30, |  | Three Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Net revenue |  | $ | 203,218 |  |  | $ | 172,239 |  |  | $ | 149,525 |  |  | $ | 139,861 |
Less: |  |  |  |  |  |  |  |
Cost of sales |  | 98,088 |  |  | 80,971 |  |  | 12,693 |  |  | 11,385 |
Selling, general, and administrative |  | 58,580 |  |  | 49,338 |  |  | 49,937 |  |  | 45,529 |
Research and development |  | 18,108 |  |  | 12,560 |  |  | 30,710 |  |  | 33,414 |
3T litigation provision |  | 3,744 |  |  | 7,701 |  |  | — |  |  | — |
|  | $ | 24,698 |  |  | $ | 21,669 |  |  | $ | 56,185 |  |  | $ | 49,533 |
|  | Cardiopulmonary |  | Neuromodulation
|  | Nine Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Net revenue |  | $ | 578,810 |  |  | $ | 501,844 |  |  | $ | 440,088 |  |  | $ | 416,609 |
Less: |  |  |  |  |  |  |  |
Cost of sales |  | 278,473 |  |  | 243,856 |  |  | 40,848 |  |  | 33,916 |
Selling, general, and administrative |  | 168,551 |  |  | 146,842 |  |  | 148,604 |  |  | 137,322 |
Research and development |  | 46,617 |  |  | 38,341 |  |  | 86,078 |  |  | 94,348 |
3T litigation provision |  | 4,373 |  |  | 16,798 |  |  | — |  |  | — |
|  | $ | 80,796 |  |  | $ | 56,007 |  |  | $ | 164,558 |  |  | $ | 151,023 |
The following table presents assets by reportable segment (in thousands):
|  | September 30, 2025 |  | December 31, 2024
Cardiopulmonary |  | $ | 1,018,811 |  |  | $ | 900,672 |
Neuromodulation |  | 639,970 |  |  | 640,956 |
Other assets (1) |  | 898,802 |  |  | 964,761 |
|  | $ | 2,557,583 |  |  | $ | 2,506,389 |
(1)“Other assets” primarily includes corporate assets not allocated to segments. The following table presents capital expenditures by reportable segment (in thousands):
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Cardiopulmonary |  | $ | 9,495 |  |  | $ | 7,383 |  |  | $ | 23,431 |  |  | $ | 18,657 |
Neuromodulation |  | 4,738 |  |  | 1,379 |  |  | 10,988 |  |  | 2,380 |
Other capital expenditures (1) |  | 9,151 |  |  | 5,318 |  |  | 16,642 |  |  | 13,241 |
|  | $ | 23,384 |  |  | $ | 14,080 |  |  | $ | 51,061 |  |  | $ | 34,278 |
(1)“Other capital expenditures” primarily includes corporate capital expenditures not allocated to segments. The following table presents changes in the carrying amount of goodwill by reportable segment for the nine months ended September 30, 2025 (in thousands):
|  | Cardiopulmonary |  | Neuromodulation |  | Total
December 31, 2024 |  | $ | 351,252 |  |  | $ | 398,754 |  |  | $ | 750,006 |
Foreign currency adjustments |  | 41,028 |  |  | — |  |  | 41,028 |
September 30, 2025 |  | $ | 392,280 |  |  | $ | 398,754 |  |  | $ | 791,034 |
Geographic Information The following table presents property, plant, and equipment, net by geographic region (in thousands):
|  | September 30, 2025 |  | December 31, 2024
United States |  | $ | 74,296 |  |  | $ | 65,170 |
Europe |  | 129,274 |  |  | 94,394 |
Rest of World |  | 14,940 |  |  | 10,696 |
|  | $ | 218,510 |  |  | $ | 170,260 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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