v3.26.1
Segment and Geographic Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment and Geographic Information
Note 10. Segment and Geographic 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.
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. This segment also includes the design and development of neurostimulation devices for treating OSA.
The following table presents net revenue by operating segment and geographic region (in thousands):
Three Months Ended
March 31,
20262025
Cardiopulmonary
United States$69,279 $60,834 
Europe (1)
57,304 44,507 
Rest of World (1)
82,072 70,979 
208,655 176,320 
Neuromodulation
United States115,400 108,334 
Europe (1)
18,348 15,194 
Rest of World (1)
18,040 15,365 
151,788 138,893 
Other Revenue (2)
1,815 1,642 
Totals
United States184,678 169,164 
Europe (1)
75,652 59,701 
Rest of World (1)
101,928 87,990 
$362,258 $316,855 
(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.
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 and rental income. 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 income tax (in thousands):
Three Months Ended
March 31,
20262025
Cardiopulmonary$30,067 $24,691 
Neuromodulation44,154 52,353 
Segment income74,221 77,044 
Other expense(32,750)(28,427)
Operating income41,471 48,617 
SNIA environmental liability expense— (360,393)
Interest expense (1)
(8,291)(15,286)
Foreign exchange and other income/(expense)(5,695)11,416 
Income (loss) before income tax$27,485 $(315,646)
(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 $4.8 million and $5.7 million for the three months ended March 31, 2026 and 2025, respectively.
The following table presents the components of segment income, including significant expenses, of LivaNova’s reportable segments (in thousands):
CardiopulmonaryNeuromodulation
Three Months Ended
March 31,		Three Months Ended
March 31,
2026202520262025
Net revenue$208,655 $176,320 $151,788 $138,893 
Less:
Cost of sales100,929 84,920 14,221 13,386 
Selling, general, and administrative59,849 53,959 52,619 47,570 
Research and development17,795 12,044 40,794 25,584 
3T litigation provision15 706 — — 
$30,067 $24,691 $44,154 $52,353 
The following table presents assets by reportable segment (in thousands):
March 31, 2026December 31, 2025
Cardiopulmonary$1,046,099 $1,045,189 
Neuromodulation650,103 639,742 
Other assets (1)
820,149 921,122 
$2,516,351 $2,606,053 
(1)“Other assets” primarily include corporate assets not allocated to segments.
The following table presents capital expenditures by segment (in thousands):
Three Months Ended
March 31,
20262025
Cardiopulmonary$10,409 $5,169 
Neuromodulation8,843 2,033 
Other capital expenditures (1)
4,409 3,102 
$23,661 $10,304 
(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 three months ended March 31, 2026 (in thousands):
CardiopulmonaryNeuromodulationTotal
December 31, 2025$394,086 $398,754 $792,840 
Foreign currency adjustments(7,250)— (7,250)
March 31, 2026$386,836 $398,754 $785,590 
Geographic Information
The following table presents property, plant, and equipment, net by geographic region (in thousands):
March 31, 2026December 31, 2025
United States$86,404 $79,499 
Europe152,886 147,303 
Rest of World16,193 15,801 
$255,483 $242,603