v3.25.2
Geographic and Segment Information
 6 Months Ended
Jun. 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 that each reportable segment develops and manufactures or distributes.
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.
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 June 30,Six Months Ended June 30,
2025202420252024
Cardiopulmonary
United States$71,243 $64,873 $132,077 $115,450 
Europe (1)
49,046 38,567 93,553 79,493 
Rest of World (1)
78,983 70,274 149,962 134,662 
199,272 173,714 375,592 329,605 
Neuromodulation
United States117,226 111,683 225,560 217,612 
Europe (1)
17,730 15,590 32,924 28,997 
Rest of World (1)
16,714 15,603 32,079 30,139 
151,670 142,876 290,563 276,748 
Other Revenue (2)
1,582 1,985 3,224 7,134 
Totals (3)
United States188,474 179,537 357,638 340,157 
Europe (1)
66,776 51,258 126,477 105,599 
Rest of World (1)
97,274 87,780 185,264 167,731 
$352,524 $318,575 $669,379 $613,487 
(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 six months ended June 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 June 30,Six Months Ended June 30,
2025202420252024
Cardiopulmonary$31,407 $19,627 $56,098 $34,338 
Neuromodulation56,020 54,812 108,373 101,490 
Segment income87,427 74,439 164,471 135,828 
Other expense(33,244)(34,273)(61,671)(79,416)
Operating income54,183 40,166 102,800 56,412 
SNIA environmental liability expense(1,677)— (362,070)— 
Interest expense (1)
(12,280)(15,532)(27,566)(31,425)
Loss on debt extinguishment(2,651)— (2,651)(25,482)
Foreign exchange and other income/(expense)(4,255)(3,045)7,161 (12,116)
Income (loss) before tax$33,320 $21,589 $(282,326)$(12,611)
(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 $5.7 million and $11.4 million for the three and six months ended June 30, 2025, respectively, and $5.3 million and $10.2 million for the three and six months ended June 30, 2024, respectively.
The following tables present the components of segment income, including significant expenses, of LivaNova’s reportable segments (in thousands):
CardiopulmonaryNeuromodulation
Three Months Ended June 30,Three Months Ended June 30,
2025202420252024
Net revenue$199,272 $173,714 $151,670 $142,876 
Less:
Cost of sales95,465 86,606 14,769 12,203 
Selling, general, and administrative56,012 50,941 51,097 46,099 
Research and development16,465 13,835 29,784 29,762 
3T litigation provision(77)2,705 — — 
$31,407 $19,627 $56,020 $54,812 
CardiopulmonaryNeuromodulation
Six Months Ended June 30,Six Months Ended June 30,
2025202420252024
Net revenue$375,592 $329,605 $290,563 $276,748 
Less:
Cost of sales180,385 162,885 28,155 22,531 
Selling, general, and administrative109,971 97,504 98,667 91,793 
Research and development28,509 25,781 55,368 60,934 
3T litigation provision629 9,097 — — 
$56,098 $34,338 $108,373 $101,490 
The following table presents assets by reportable segment (in thousands):
June 30, 2025December 31, 2024
Cardiopulmonary$1,013,888 $900,672 
Neuromodulation637,717 640,956 
Other assets (1)
855,097 964,761 
$2,506,702 $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 June 30,Six Months Ended June 30,
2025202420252024
Cardiopulmonary$8,767 $7,526 $13,936 $11,274 
Neuromodulation4,217 725 6,250 1,001 
Other capital expenditures (1)
4,389 5,500 7,491 7,923 
$17,373 $13,751 $27,677 $20,198 
(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 six months ended June 30, 2025 (in thousands):
CardiopulmonaryNeuromodulationTotal
December 31, 2024$351,252 $398,754 $750,006 
Foreign currency adjustments43,359 — 43,359 
June 30, 2025$394,611 $398,754 $793,365 
Geographic Information
The following table presents property, plant, and equipment, net by geographic region (in thousands):
June 30, 2025December 31, 2024
United States$70,226 $65,170 
Europe110,673 94,394 
Rest of World14,519 10,696 
$195,418 $170,260