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Chairman & CEO Geoff Martha described the changes as the start of a 'new chapter' focused on more aggressive value creation. He highlighted key themes, including pursuing more M&A to shift the portfolio to higher growth and increasing investment in transformational growth drivers like PFA and Ardian, noting these were areas of alignment with Elliott Management.

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CFO Thierry Pieton emphasized the strength of the company's underlying fundamentals, pointing to the 9% EPS growth in the second half of FY25 as evidence. He stated that durable growth from new products and ongoing cost leverage initiatives are the core drivers, and the team's goal is to achieve the target regardless of the transaction's impact.

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CFO Thierry Pieton emphasized the company's strong underlying fundamentals, pointing to the 9% EPS growth in the second half of FY25, which was achieved without FX tailwinds. He stated that continued revenue momentum and cost leverage are the core drivers, and the team's goal is to deliver on the growth framework regardless of the transaction's accretion.

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CEO Geoff Martha stated the goal is to achieve both by improving gross margin and ensuring SG&A growth remains below sales growth. He also highlighted tuck-in M&A as a tool for R&D investment. Interim CFO Gary Corona added that gross margin improvement is key to funding these growth drivers while delivering high single-digit EPS growth.

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Chairman and CEO Geoff Martha acknowledged that capital-intensive products like Hugo and Affera can have lower initial margins, but this is offset by positive pricing trends, cost-down programs, and higher-margin products like Neuromod and Ardian (RDN). Interim CFO Gary Corona added that these dynamics are fully contemplated in the company's guidance, which expects flat constant-currency gross margins for the year.

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CEO Ron Kurtz responded that the company is not blaming the market but is instead focusing on leveraging its large installed base for growth through a new customer success organization. CFO Shelley Thunen added that while the revenue reduction pushes out the timeline for cash flow breakeven, the company's high gross margin product could enable a quick recovery once growth resumes, referencing Q2 of the prior year as a proxy.

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CFO Shelley Thunen clarified her earlier comments, stating she was not providing specific Q2 guidance but was being cautionary, with most LAL growth expected in the second half of the year. President and CEO Dr. Ron Kurtz addressed the competitive landscape, suggesting that with multiple players now offering similar fixed IOLs, the market will normalize. He also highlighted that three-quarters of LAL patients are converted from non-multifocal lenses, providing some insulation from direct competition.

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Chairman, President & CEO Ivan Tornos expressed high confidence, citing a ~200 basis point benefit from the absence of selling day headwinds and favorable ERP comps from 2024. He also noted a strong July, new product ramps, and the shift of a large international order into Q3. Tornos projected Q3 organic growth to be "scratching 6%."

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CFO and EVP Suketu Upadhyay explained that the tariff impact is manageable due to Zimmer Biomet's significant U.S. manufacturing footprint. He detailed mitigation strategies including optimizing country of origin, adjusting sourcing, and moderating discretionary spending, resulting in a $60-$80 million headwind for 2025. Upadhyay cautioned that 2026's impact would likely be higher due to annualization and other factors, but noted the team is actively working on further offsets.

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President and CEO Ivan Tornos characterized the 2025 guidance as "appropriate" rather than conservative, acknowledging a different philosophy from 2024. He noted that while there is one less selling day in 2025, the company sees more drivers toward the upper end of the range, including new products, investments in Ambulatory Surgery Centers (ASCs), and strategic adjustments in the U.S. market. Tornos expressed strong confidence in achieving the provided range.

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Tom Polen, Chairman, CEO & President, confirmed the strong urology performance was not due to one-time items but a continuation of strong momentum from the PureWick franchise, which has a robust innovation pipeline. Christopher DelOrefice, EVP & CFO, added that the Q4 investment is a strategic choice to reinvest efficiency gains from BD Excellence to drive growth and build momentum into 2026, rather than a permanent new baseline.

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EVP and CFO Christopher DelOrefice explained that approximately 80% of the guidance reduction stems from market-driven factors. The two primary drivers are the Biosciences (BDB) business, impacted by reduced global research funding, and China, where the outlook was lowered from a mid-single-digit to a high single-digit decline due to VBP and research spending pressures. A third factor is the Diagnostics (DS) business, specifically a slower-than-expected recovery in BACTEC blood culture testing volumes following a prior-year supply disruption.

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Chairman, CEO and President Tom Polen explained that as a focused entity, the Life Sciences business could accelerate capital deployment into adjacent high-growth areas like single-cell analysis and oncology screening. For the 'New BD', the separation allows for a doubled-down focus on shifting the portfolio to higher-growth MedTech spaces via tuck-in M&A, funded by its strong cash flow profile. He noted that historically, over 99% of M&A capital has already been directed toward building the MedTech side of the business.

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Chairman, CEO, and President Tom Polen expressed confidence in the company's durable growth profile, noting the core business has grown north of 6% excluding COVID testing. He highlighted multiple growth platforms that position BD for long-term growth, including biologics drug delivery (now a $1B+ business), pharmacy automation, advanced patient monitoring, tissue reconstruction, and the PureWick platform.

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CEO Robert Claypoole described R&D spend as moderate but ramping up, with a focus on the Ultrasonics and PNS platforms, and expects it to increase further. SVP & CFO Mark Singleton added that while total R&D seems low, it is a material percentage of revenue for those specific high-growth portfolios. He also confirmed that revenue is growing faster than OpEx, which is key to achieving their 100 basis points of margin expansion.

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CFO Mark Singleton expressed high confidence in the second-half acceleration, citing seasonality in HA, a ramp-up in Bone Graft Substitutes, and recent account wins. He expects EBITDA to grow with sales, targeting 100 bps of margin expansion for the year. He also stated the net leverage ratio is around 3.25x and is expected to fall to approximately 2.5x by year-end. CEO Rob Claypoole added that growth will naturally accelerate as unfavorable first-half comparables roll off, highlighting the underlying strength in DUROLANE, Ultrasonics, and Exogen.

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CEO Robert Claypoole clarified that the BGS distributor ramp-up is the primary issue that may cause a slightly softer start to 2025 but expects it to be resolved by Q2. CFO Mark Singleton outlined that the path to sub-3x leverage relies on continued business execution, accelerating cash flow in 2025, paying down the revolver, and growing EBITDA, which will naturally reduce the leverage ratio.

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Chairman, President & CEO Tim Herbert affirmed the intent to restore growth and recapture the revenue, stating the issues are short-term. He explained the launch was complex due to its scale, inventory ramp-up, and unforeseen delays in Medicare billing software updates, which were timing-related. He noted the company is applying lessons learned to future launches.

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CEO Tim Herbert (mistakenly identified as Richard Buchholz in the transcript) emphasized that the patient funnel remains very strong, which provides confidence for future growth. He clarified that Q2 involves a transition process of activating centers for Inspire V while burning down Inspire IV inventory. While there is a shift, the underlying patient demand gives the company confidence in its full-year outlook for the second half of the year.

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CEO Tim Herbert stated the company aims for continued, consistent leverage across the entire organization, not just DTC, and plans to remain profitable. CFO Rick Buchholz noted that R&D expense was lower in Q3 but is expected to normalize to the mid-to-high teens as a percentage of revenue going forward. Regarding utilization, Tim Herbert confirmed it was consistent from Q2 to Q3 and up year-over-year, and that growing utilization remains a key focus.

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VP & CFO Preston Wells attributed margin strength to a multi-year focus on pricing, manufacturing efficiencies, procurement initiatives, and G&A discipline. Chair & CEO Kevin Lobo added that the ASC trend is durable and will expand into other specialties like cardiology and general surgery, as it lowers healthcare costs and improves patient and surgeon experience.

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CFO Preston Wells explained that the tariff impact will be offset by strong sales momentum, pricing actions, disciplined spending, and supply chain optimization. CEO Kevin Lobo added that the Orthopaedics market remains healthy with strong demand and surgeon backlogs, and Stryker expects to continue gaining market share driven by Mako, cementless knees, and its Trauma and Extremities businesses.

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CFO Glenn Boehnlein detailed that margin expansion will be driven by purchasing efficiencies, low-cost manufacturing expansion, shared services optimization, positive pricing, and natural leverage from high sales growth. VP Jason Beach confirmed that procedural volumes and capital markets remain robust entering 2025.

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CEO Kevin Lobo explained that the Medical division's high growth is sustainable due to a strong innovation pipeline including ProCuity, LIFEPAK 35, and recent acquisitions like care.ai, and he expects continued double-digit growth. Regarding Q4 guidance, he noted it's a reasonable increase against a tough prior-year comparison of 11.5% growth, but the company is aiming to finish at the high end of the new range.

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EVP & COO Heather Knight clarified that the Novum pause had no Q2 impact as it was a recent decision, and she expressed confidence in the platform's long-term value. EVP & CFO Joel Grade added that the low end of 2025 guidance conservatively assumes no further Novum shipments this year. For 2026, he anticipates margin expansion from volume recovery, stranded cost mitigation, and new product launches.

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EVP & COO Heather Knight clarified the Novum pause had no impact in Q2 as the decision was recent, emphasizing it was a voluntary, temporary measure to incorporate customer feedback on specific workflows. EVP & CFO Joel Grade stated the low end of the 2025 guidance assumes no further Novum shipments for the year, capturing the potential downside risk. For 2026, Grade anticipates margin expansion driven by volume recovery in fluids and pumps, continued efforts on stranded costs, and new product introductions.

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COO Heather Knight estimated that distributor stocking pull-forward contributed about 1.5 percentage points to total company growth in Q1. She expressed confidence in HST's momentum, citing a strong order book and competitive share gains. EVP & CFO Joel Grade reiterated the company's commitment to margin expansion but did not explicitly reaffirm a prior target for 2026, noting the evolving tariff situation.

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CFO Joel Grade described the 16.5% margin as a solid 'anchoring point' for the post-separation company and a base for future expansion. He detailed initiatives to offset stranded costs, including rationalizing the U.S. distribution network, rightsizing the organization, and proactively planning cost eliminations to align with the eventual decline in TSA income, with a goal to fully offset these costs by the end of 2027.

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CFO Raul Parra attributed the strong performance to high execution from the sales force, favorable product and geographic mix, and disciplined pricing. He noted that about half of the gross margin upside was due to a lower-than-expected tariff impact. While not providing specific gross margin guidance, he pointed to the raised full-year non-GAAP operating margin guidance of 19% to 20% as a key indicator of sustained profitability, supported by the company's Continued Growth Initiative (CGI) program.

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EVP and CFO Raul Parra indicated that the company has a game plan centered on its existing CGI program rather than detailing specific spending cuts. He explained that free cash flow guidance is maintained through a good Q1 start and various working capital levers, such as inventory management, which are expected to mitigate the cash impact of the tariffs.

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EVP & CFO Jereme Sylvain clarified that the Q2 gross margin was impacted by a ~100 basis point charge for a receiver recall. He expects sequential improvement in Q3 and Q4 to reach the full-year target of 62%, driven by rebuilding inventory, which enables more efficient shipping, and increased manufacturing plant efficiencies.

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CFO Jereme Sylvain projected a better-than-historical sequential Q1 performance, followed by a stable cadence of improvement throughout the year, aided by easier comps in the second half. He anticipates gross margins will improve over the course of the year, driven by manufacturing scale and G7 conversion, with a smaller benefit from the 15-day sensor launch in the second half.

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CEO Kevin Sayer explained that the primary issue was disrupted field relationships from the sales force reorganization, not price. He said conversations with DME leaders have focused on increasing patient volume. Actions include encouraging a 'channel agnostic' approach for reps and offering Stelo to DME partners, though he cautioned that rebuilding the relationships will take time.

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President & CEO Peter Arduini stated that while activity in China is picking up, the recovery pace is slower than anticipated, leading to a more conservative back-half outlook for the region. VP & CFO James Saccaro explained that the full-year guidance raise is supported by strong order growth and backlog conversion from other regions. He guided for Q3 growth of 2-3%, with an acceleration in Q4.

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CEO Peter Arduini reported that the Flyrcado launch is on track for its ~$30 million 2025 revenue target, aided by a new CMS pass-through status. He also stated the China anti-dumping investigation is not seen as a material risk. CFO James Saccaro clarified that potential tariffs on the PDx business are not included in guidance as it's unclear if those products would be in scope.

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CEO Peter Arduini stated that the U.S. capital market remains robust, driven by underlying procedure growth, and that imaging equipment often serves as a profit generator for hospitals. CFO Jay Saccaro added that the company's quarterly customer surveys continue to point to a solid environment. Regarding cash flow, he reiterated that the 2024 decline was primarily due to an inventory build, which they plan to normalize in 2025, leading to expected free cash flow growth.

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CFO Jay Saccaro explained that while significant progress has been made on margins through pricing and productivity, there is a long way to go. Future improvements will be supplemented by benefits from exiting TSAs and launching differentiated, higher-margin products. CEO Peter Arduini and CFO Jay Saccaro noted the China recovery is slow, with stimulus coordination taking longer than expected. They anticipate limited market benefit through the first half of 2025 and have factored this into guidance, which now trends toward the low end.

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CFO Maggie Yuen stated the commercial team investment did not impact gross margin and the full-year margin guidance is maintained. CEO Adam Elsesser added that the VTE market is growing around 20%, while Penumbra's growth is over 40%, and noted the overall neuro market was softer, though Penumbra gained share. He attributed the guidance to a degree of caution.

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CEO Adam Elsesser highlighted that the stroke business grew significantly above the market, aided by the new RED 72 catheter, and the arterial business met or exceeded expectations. He explained that R&D spending is non-linear and was lower partly due to anniversarying the wind-down of the Immersive Healthcare business. CFO Maggie Yuen confirmed that about half of the savings from the wind-down were realized in the R&D line.

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CEO Adam Elsesser affirmed that embolization and access remains a strong, market-leading business with continued innovation planned. He noted that as the company's focus on CAVT expands, they are ensuring dedicated commercial focus. He mentioned retrenching in some international markets while seeing growth opportunities in the U.S. and leveraging the new Costa Rica facility for a more favorable cost basis in certain markets.

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CEO Adam Elsesser affirmed the company's ability to continue expanding both gross and operating margins. He explained that gross margin improvement is driven by product mix shift to CAVT and efficiencies, while operating margin expansion will outpace it. Regarding the competitor's trial, Elsesser noted a "muted reaction" from physicians and expressed confidence that the data highlights the advantages of Penumbra's faster Flash 2.0 technology.

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CEO Bernard Zovighian attributed the U.S. TAVR strength to a renewed clinical focus on managing aortic stenosis patients, sparked by the early TAVR trial data. Corporate VP Larry Wood clarified that significant asymptomatic patient volume has not yet materialized. Incoming TAVR leader Dan Lippis noted that in Europe, the competitor exit provided a modest sales contribution, while in Japan, the focus is on regaining market share.

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CEO Bernard Zovighian and outgoing TAVR head Larry Wood attributed U.S. TAVR strength to a renewed clinical focus on managing aortic stenosis post-early TAVR trial, not yet a significant asymptomatic patient influx. Incoming TAVR lead Dan Lippis noted that in Europe, the SAPIEN 3 platform and asymptomatic indication are key long-term drivers, while in Japan, the focus is on regaining market position.

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CFO Scott Ullem explained that they are executing pre-planned cost mitigation strategies, including prioritizing R&D and managing discretionary spending, without impacting 2025 sales. He clarified that the TMTT guidance increase was driven roughly 50% by favorable FX and 50% by operational momentum. Daveen Chopra, Global Leader of TMTT, attributed the operational strength to strong adoption of both PASCAL and EVOQUE in the U.S. and Europe.

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CFO Scott Ullem stated that the expected 200 basis point improvement in 2025 operating margin will come from roughly 100 basis points of leverage from both R&D and SG&A, with spending levels held flat from Q4. CEO Bernard Zovighian specified that Japan was a primary example of regional pressure, noting dissatisfaction with Q4 growth there but reaffirming commitment to the significant long-term opportunity.

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Daveen Chopra, Global Leader of TMTT, stated that while the company is still learning which patients are best for repair versus replacement, having both options is crucial. Larry Wood, Group President of TAVR, explained that as the market leader, Edwards is more sensitive to overall market growth and capacity constraints, which are exacerbated by the rollout of new technologies like EVOQUE that demand significant cath lab resources.

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CEO Mike Mahoney attributed WATCHMAN's success to the trusted safety profile of FLEXPRO and the breakthrough opportunity of concomitant procedures with Farapulse. CMO Dr. Ken Stein added that 60% of EP implanters are already performing concomitant procedures. CFO John Monson clarified that a ~$100 million charge related to the ACURATE discontinuation impacted adjusted gross margin, which was offset by strong sales and spending controls. He noted that for the full year, favorable product mix from WATCHMAN and Farapulse is expected to largely offset the ACURATE charges and tariff headwinds.

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Daniel Brennan, Executive Vice President and CFO, explained that the $200 million tariff headwind will be fully offset in 2025. The offset will come from the company's increased revenue performance, targeted reductions in discretionary spending, and a minor FX benefit. Brennan stated that there are no current plans to alter the company's optimized global supply chain, highlighting recent significant manufacturing investments in the U.S.

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CEO Mike Mahoney highlighted the excellent and increasing momentum for both products. He noted that the concomitant reimbursement for WATCHMAN, effective in October, provided a slight uptick in Q4 and reinforces the 20% market growth forecast for 2025. For FARAPULSE, he described its growth as a major market transformation, surpassing $1 billion globally in 2024 with strong U.S. execution and no anticipated supply constraints.

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CEO Michael Mahoney stated that the concomitant reimbursement is a positive long-term tailwind for both platforms. CMO Dr. Ken Stein added that with roughly half of the 350,000 annual U.S. ablation patients at high stroke risk, positive OPTION data could be highly impactful, with the CHAMPION trial providing further data in early 2026.

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CFO Jamie Samath mentioned that average system utilization on da Vinci V recently surpassed the Xi, which is a positive sign, but noted it will take time to build robust evidence of efficiency gains. CEO Dave Rosa added that efficiency was a key design focus for da Vinci V, with early data showing time savings that could enable an extra case per day. Regarding capital allocation, Jamie Samath reiterated the company's consistent strategy: first, organic investment (R&D, CapEx), second, tuck-in acquisitions, and third, opportunistic share repurchases, which were exercised in Q2 due to market volatility.

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CFO Jamie Samath noted that da Vinci V's average system utilization recently surpassed the Xi's, which is a positive sign, but stated it will take time to build robust evidence of efficiency gains. CEO Dave Rosa added that case time savings can exceed 20% in some instances. Regarding capital, Jamie Samath explained that the share repurchase was an opportunistic move given market volatility and reiterated the company's consistent capital allocation priorities: organic investment, tuck-in M&A, and shareholder returns.

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Executive Jamie Samath attributed the guidance raise to the company's standard forecasting process, highlighting that strong day-adjusted Q1 procedure growth of 18.5% provides momentum for the rest of the year. Executive Gary Guthart added that customer feedback indicates Intuitive is seen as 'part of the solution.' Regarding tariff mitigation, Executive David Rosa detailed a multi-faceted approach, including supply chain optimization, dual sourcing, USMCA qualification for products, and long-term adjustments to their global manufacturing footprint.

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CEO Gary Guthart stated the broad launch is dependent on scaling the supply chain and releasing software updates. He noted the trade-in cycle's speed will be driven by the 'differential value' customers perceive in dV5. CFO Jamie Samath added that the trade-in cycle would be 'progressive' starting mid-year. Regarding the capital environment, Samath described the U.S. as 'strong,' but characterized China as 'challenging' due to competition and government policies, while noting budget pressures in the U.K. and Germany.

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CFO Jamie Samath explained that while the company's aspiration is a 70% gross margin in the mid-term, margins are expected to be slightly lower in 2025 due to significant depreciation from new facilities. He reiterated that management does not have an objective for operating margins to exceed 40%. Regarding trade-ins, he confirmed that refurbished Xi systems will be used for market segmentation, targeting different sites of care in the U.S. and cost-sensitive international markets.

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CFO Scott Blumberg stated that while post-IPO investments in R&D and sales are increasing OpEx, the company remains highly confident in reaching cash flow breakeven without additional capital. CEO Xingjuan Chao clarified that the pediatric Clarity launch will not impact 2025 guidance, with revenue contributions expected in outer years following a year-long limited commercial release.

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CFO Scott Blumberg stated that the 2025 gross margin guidance of mid-to-high 80s accounts for an increased tariff on materials from China. He projected higher OpEx driven by a 40-60% YoY increase in R&D spending, approximately $15 million in stock-based compensation, and the planned expansion to 55 territory managers. CEO Jane Chao added that utilization is driven by educating physicians, helping hospitals standardize EEG into protocols, and raising overall disease awareness.

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President and CEO Ashley McEvoy affirmed that the financial strategy of pursuing double-digit growth alongside continued margin improvement remains unchanged. Chief Product and Customer Experience Officer Eric Benjamin added that the type 2 launch is progressing well, driven by a three-part strategy of data dissemination, sales force expansion, and effective DTC advertising, noting that over 30% of U.S. new customer starts were for type 2 patients.

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President and CEO Jim Hollingshead confirmed a significant ramp in Type 2 new customer starts, reaching over 30% of the U.S. mix, but declined to provide specific growth rate breakdowns. He expressed a bullish outlook for 2025, citing the expanded sales force and positive prescriber response as key drivers for the Type 2 market, which he noted is a major growth opportunity.

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President and CEO Jim Hollingshead confirmed Omnipod is the #1 pump for new users in the European markets it serves, with stable new customer starts despite summer seasonality. CFO and Treasurer Ana Maria Chadwick added that pricing accretion from Omnipod 5 launches is expected to continue into 2025 as the product rolls out to new countries, offsetting markets that have annualized their initial price bumps.

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CFO Phillip Berry noted that while Q1 had a tailwind from extra selling days, the overall first-half/second-half revenue split remains consistent with prior guidance. He expressed high confidence in achieving positive free cash flow for the year, explaining Q1 is a seasonal low point. He projected year-end leverage would be in the 3.0x to 3.5x range.

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CEO Matthew Trerotola detailed that OUS markets finished 2024 strong but are planned to normalize, while the U.S. business is gaining share with new products. CFO Phillip Berry projected a significant positive step in 2025 free cash flow and expects the leverage ratio to decrease from ~3.5x to the 'low 3s' by year-end.

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CEO Matthew Trerotola stated that the integration is on track, but international recon markets have normalized and U.S. markets have been just 'fine.' He expressed confidence in 2025 acceleration as integration headwinds clear. He highlighted extremely strong Foot & Ankle performance and improving Shoulder growth, which will be boosted by the new ARG product ramp.

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EVP and CFO Todd Garner clarified that the tariff outlook improved significantly because products from Mexico are now exempt, which was the largest component previously discussed. He explained the new estimate reflects a clearer understanding of how tariffs on Chinese goods will flow through inventory, impacting the P&L with a delay. For mitigation, Garner outlined several strategies: rerouting logistics to bypass the U.S., considering price adjustments, exploring long-term vendor changes, and re-evaluating accounting and transfer pricing structures.

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CFO Todd Garner acknowledged past disappointments and framed the 2025 guidance as a realistic starting point that doesn't get ahead of the necessary operational improvements and currency headwinds. While not guiding for 2026, he affirmed the company's long-term model is to grow adjusted EPS at approximately twice the rate of revenue growth, suggesting a potential return to that leverage in the future.

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Chairman and CEO Brenton L. Saunders explained the exclusion was for transparency and to avoid constant updates in a fluid policy environment. CFO Osama Eldessouky emphasized that the 120 bps impact is a point-in-time estimate and does not include all mitigation levers being evaluated, which they believe can 'meaningfully' offset the exposure. He also confirmed that the company is in full compliance with its debt covenants and does not foresee an issue.

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CFO Osama Eldessouky stated that the momentum in adjusted cash from operations seen in 2024 is expected to continue, and he expects the company to be free cash flow positive in 2025, based on continued cash generation and a CapEx forecast of approximately $280 million. Regarding EPS, he confirmed year-over-year growth is expected from the $0.63 reported in 2024, but highlighted headwinds from a higher guided tax rate (15-17%) and a $20 million currency impact on EBITDA.

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CEO Al White characterized the fertility quarter as a 'blip' or 'anomaly' due to a tough comp from order pull-in to Q1 of last year and a capital pull-forward into Q4 2024. He expressed high confidence in a return to high single-digit or double-digit growth, citing a strong capital backlog and robust demand for consumables and genetic testing. He also stated that China represents a little less than 5% of consolidated revenues.

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CFO Brian Andrews expressed high confidence in achieving gross margin expansion in FY25, driven by price, productivity, and lower freight costs, which supports the 10-12% constant currency operating income growth target. He noted that even with FX headwinds, reported operating margins are implied to be up year-over-year. On tariffs, Andrews stated Cooper has no manufacturing in China, Mexico, or Canada, mitigating exposure to some commonly discussed tariff scenarios.

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CEO Al White suggested that after factoring in positive FX, interest expense savings, and a higher tax rate, the result should be "pretty decent EPS." CFO Brian Andrews explained that gross margin strength was driven by pricing, efficiency gains from infrastructure investments, and favorable product and geographic mix, which are currently offsetting FX headwinds and the mix shift to dailies.

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CFO Lea Knight explained the provision for future ship holds is due to the ongoing, systemic assessment of the entire manufacturing network under the compliance master plan, which carries inherent risk of uncovering new issues. She expects free cash flow conversion to improve and step up above 20% in 2025, with leverage remaining flat to slightly down.

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CEO Jan De Witte noted that overall retention is normal, with a minor uptick in turnover in the surgical reconstruction sales force. CFO Lea Knight explained that due to supply challenges, the 90% free cash flow conversion target is not expected in the near term and will be re-evaluated in a future long-range plan update.

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CEO John Treace explained that like Lapiplasty initially, clinical data for Nanoplasty will be gathered post-launch. He noted that Nanoplasty incorporates a well-documented rotational correction component, which should drive surgeon interest. CFO Mark Hair reaffirmed the company's goal to reach adjusted EBITDA breakeven in 2025 through operating leverage, stating it was too early to provide 2025 revenue guidance until the adoption of new products becomes clearer.

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