LivaNova (NASDAQ:LIVN) reported fourth-quarter 2025 revenue of $360.9 million, a 12.1% increase over the prior year, as the company enters 2026 with a significant tailwind from improved U.S. government reimbursement rates.
The London-based medical device maker posted adjusted diluted earnings per share of $0.86 for the quarter, surpassing analyst expectations and highlighting the strength of its core neuromodulation and cardiopulmonary franchises.
For the full year 2025, revenue reached $1.39 billion, up 10.7% on an organic basis.
Despite the operational momentum, the company reported a GAAP diluted loss per share of $4.45 for the year.
This figure was heavily impacted by a $365.6 million non-cash expense related to a legacy SNIA environmental liability.
Excluding this and other one-time items, adjusted diluted EPS for the year stood at $3.90.
A primary catalyst for the company’s 2026 outlook is a substantial shift in the U.S. regulatory landscape.
Effective January 1, 2026, the Centers for Medicare & Medicaid Services (CMS) increased hospital outpatient payments for LivaNova’s VNS Therapy™ for Drug-Resistant Epilepsy (DRE) by approximately 48% for new patient implants.
Management expects this reimbursement hike to significantly reduce financial barriers for providers and drive adoption in the U.S. market.
LivaNova also received FDA approval for its cloud-based digital health platform, which is designed to provide deeper clinical insights for DRE patients.
To support its expansion into new markets, the company appointed Lucile Blaise as Global Head of Commercialization for its Obstructive Sleep Apnea (OSA) business, effective late 2025.