
	June 30, 2026		December 31, 2025
Raw materials	$	76,340	$	75,800
Work-in-process	17,892		12,875
Finished goods	78,380		76,026
	$	172,612	$	164,701

As of June 30, 2026 and December 31, 2025, inventories included adjustments totaling $19.4 million and $18.0 million, respectively, to record balances at the lower of cost or net realizable value.


	June 30, 2026		December 31, 2025
Legal and professional costs	$	18,257	$	18,396
Italian MedTech payback measure	13,878		12,839
Contract liabilities	13,856		11,510
Operating lease liabilities	8,787		8,788
Royalty accrual	5,314		4,758
Provisions for agents, returns, and other	3,933		5,322
Interest payable	2,911		4,638
Tariff refund payable	1,943		—
Research and development costs	1,251		1,234
Current derivative liabilities	61		99
Other accrued expenses	33,640		26,989
	$	103,831	$	94,573

As of June 30, 2026 and December 31, 2025, contract liabilities totaling $18.6 million and $17.9 million, respectively, were included in accrued liabilities and other long-term liabilities in the condensed consolidated balance sheets.

The following table presents the items included in foreign exchange and other income/(expense) on the condensed consolidated statements of income (loss) (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Fair value adjustment - 2029 Embedded Derivative (1)	$	(59,650)	$	(10,867)	$	(69,000)	$	3,726
Fair value adjustment - 2029 Capped Calls (1)	19,016		4,468		20,742		(2,077)
Gain on sale of investment (2)	13,648		—		13,648		—
Interest income	3,831		4,183		7,383		10,626
FX fluctuations	(779)		(1,240)		(1,368)		(1,850)
Impairment of investment	—		—		(1,132)		—
Investment revaluation - Ceribell, Inc. (3)	—		(1,008)		—		(3,622)
Fair value adjustment - 2025 Embedded Derivative (1)	—		(489)		—		1,552
Fair value adjustment - 2025 Capped Calls (1)	—		498		—		(1,321)
Other	105		200		203		127
	$	(23,829)	$	(4,255)	$	(29,524)	$	7,161

(2)During the three months ended June 30, 2026, one of LivaNova’s equity investments was acquired by a third party, resulting in consideration receivable of $17.1 million and the recognition of a gain on sale of $13.6 million. As of June 30, 2026, $14.9 million of the consideration receivable is included within prepaid expenses and other current assets and $2.2 million is included within other assets on the condensed consolidated balance sheet.

(3)During the three months ended June 30, 2025, LivaNova liquidated its investment in Ceribell, Inc., consisting of 391,952 common shares, in a series of transactions with an average sales price of $16.69 per common share, resulting in net proceeds of $6.5 million from an initial investment in 2018 of $3.0 million.


	Six Months Ended June 30,
	2026		2025
Supplemental noncash investing and financing transactions:
Receivable from sale of investment	$	17,058	$	—
Assets obtained in exchange for operating lease obligations	7,664		6,516
Capital expenditures included in accounts payable	6,524		4,105