Executive Summary

Q4 delivered solid top-line growth and clear operating leverage: revenue $1.018B (+10% y/y; +7% organic) and non-GAAP EPS $1.04 (+19% y/y), with GAAP gross margin up 200 bps to 67% and non-GAAP operating margin at 26% .
Results tracked or modestly exceeded company’s Q3 guidance: revenue landed within ranges (CVI $676.4M; CSI $342.0M) and non-GAAP EPS ($1.04) topped the $1.01 high end, implying a small upside vs internal expectations .
FY25 guide initiated: revenue $4.08–$4.158B (organic +6–8%), non-GAAP EPS $3.92–$4.02; CFO targets ~10–12% constant-currency OI growth, ~1.5% FX headwind to revenue and ~4% to EPS, interest expense ~ $90M, ETR slightly >15% .
Key narrative: CVI strength led by daily silicone hydrogel (MyDay/clariti), torics, multifocals; MiSight poised for ~40% growth in FY25; CSI fertility double-digit growth offset by softness in Paragard (down ~10% in Q4) and expected flattish +/- in FY25 .

What Went Well and What Went Wrong

What Went Well
- CVI momentum in premium lenses: daily SiHy (MyDay/clariti) up strongly; torics and multifocals +9% y/y; CVI revenue +9% reported (+8% organic) with broad-based geographic growth (Americas +6% cc, EMEA +11% cc, APAC +7% cc) .
- Operating leverage: Q4 GAAP operating margin up to 19% (from 15% y/y) on SG&A leverage and improved GM; non-GAAP OI margin 26% (vs 24% y/y) .
- Fertility outperformance: CSI fertility +15% reported (+13% organic) on share gains and innovation in genomics; management highlighted advanced ML/AI-enabled reproductive genetic testing .
- Quote: “Q4 closed with record revenues and improving margins that drove record non-GAAP quarterly earnings.” – CEO Al White .
What Went Wrong
- Short, unexpected demand softness (mid-Oct to early Nov): U.S. and China pockets cited; normalized thereafter .
- Paragard weakness: −10% y/y in Q4; CEO expects FY25 Paragard to be “down a little bit to up a little bit” amid pressure from alternative birth control options .
- MyDay capacity still gating upside: demand > supply; APAC most negatively impacted; capacity additions underway with long lead times (up to ~1.5–2 years to bring lines fully online) .

Financial Results

Results vs prior periods and company guidance

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Revenue ($M)	$927.1	$943.0	$1,002.8	$1,018.4
GAAP EPS ($)	$0.42	$0.52	$0.52	$0.58
Non-GAAP EPS ($)	$0.87	$0.85	$0.96	$1.04
GAAP Gross Margin %	65%	—	66%	67%
Non-GAAP Gross Margin %	67%	67.3%	67%	67%
GAAP Operating Margin %	15%	—	19%	19%
Non-GAAP Operating Margin %	24%	23.8%	26%	26%

Results vs company’s Q4 guidance (issued with Q3 results)

Metric	Q4 Guidance (Range)	Actual Q4
Total Revenue ($M)	$1,015–$1,036	$1,018.4
CVI Revenue ($M)	$673–$685	$676.4
CSI Revenue ($M)	$342–$350	$342.0
Non-GAAP EPS ($)	$0.98–$1.01	$1.04

Segment revenue trend

Segment Revenue ($M)	Q2 2024	Q3 2024	Q4 2024
CooperVision (CVI)	$636.0	$675.6	$676.4
CooperSurgical (CSI)	$307.0	$327.2	$342.0

CVI Q4 category and geography

CVI ($M)	Q4 2024	y/y Reported	Constant Currency	Organic
Toric & Multifocal	$323.2	+9%	+9%	+9%
Sphere & Other	$353.2	+8%	+7%	+7%
Total	$676.4	+9%	+8%	+8%
Americas	$270.5	+5%	+6%	+6%
EMEA	$256.6	+14%	+11%	+11%
APAC	$149.3	+7%	+7%	+7%

CSI Q4 category

CSI ($M)	Q4 2024	y/y Reported	Constant Currency	Organic
Office & Surgical	$202.8	+11%	+11%	~0% (A&D −11%)
Fertility	$139.2	+15%	+15%	+13%
Total	$342.0	+12%	+12%	+5%

Cash flow and other KPIs

KPI	Q3 2024	Q4 2024
Cash from Operations ($M)	$207.5	$268.1
Capital Expenditures ($M)	$89.0	$139.9
Free Cash Flow ($M)	$118.5	$128.2
Interest Expense (non-GAAP, $M)	$27.1	$25.6
Effective Tax Rate (non-GAAP, %)	16.6%	11.8% (discrete options)
Net Debt ($B)	2.50	2.48; bank-defined leverage 1.94x

Guidance Changes

FY25 guidance initiation

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue ($B)	FY 2025	—	$4.080–$4.158 (org. +6–8%)	New
CVI Revenue ($B)	FY 2025	—	$2.733–$2.786 (org. +6.5–8.5%)	New
CSI Revenue ($B)	FY 2025	—	$1.347–$1.372 (org. +4–6%)	New
Non-GAAP EPS ($)	FY 2025	—	$3.92–$4.02	New
Interest Expense ($M)	FY 2025	—	~90	New
Effective Tax Rate	FY 2025	—	Slightly >15%	New
FX Impact	FY 2025	—	~1.5% headwind to rev; ~4% to EPS	New

FY24 guidance vs actual outcome

Metric	FY24 Guidance (Q3)	FY24 Actual	Outcome
Total Revenue ($B)	$3.892–$3.913	$3.895	In range
CVI Revenue ($B)	$2.606–$2.618	$2.609	In range
CSI Revenue ($B)	$1.286–$1.294	$1.286	Met low end
Non-GAAP EPS ($)	$3.64–$3.67	$3.69	Above high end

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
Pricing	Expect industry pricing to offset ~inflation; price ~⅓ of market growth	Pricing tailwind continues; ~2–3% contribution to market growth	Pricing likely offsets ~2.5–3% inflation in FY25	Stable tailwind
Capacity & Supply	Capacity constraints in MyDay; adding lines; demand > supply	Capacity coming online; demand still > supply; moderating launches to capacity	MyDay capacity still gating, especially APAC; adding lines (long lead times)	Improving slowly
MiSight/Myopia Mgmt	+39% (Q2); U.S. back-to-school push; growing prescribers	Record Q3; strong global programs; JV with EssilorLuxottica progressing	Expect ~40% growth FY25; October inventory contraction a transient headwind	Strong growth
Fertility	System upgrade hurt Q2 shipping; demand strong; innovation ongoing	Double-digit return; new media; Fast Track genomics; cryo software	+15% in Q4; ML/AI-enabled genomics highlighted; training and expansion plans	Re-accelerating
Paragard	Q2 boost from stocking/price; expect Q3 sequential down; FY flattish/up small	Slight decline in Q3; single-hand inserter approved	−10% in Q4; FY25 “down a little to up a little” expected	Ongoing pressure
FX/Tax	FX headwind; hedging in place; ETR ~14% FY24 (ex-discretes)	FX −$0.05 in Q3; ETR 16.6%	FY25: ~1.5% rev and ~4% EPS headwinds; ETR slightly >15%	FX headwind; ETR higher
Tariffs/macro	—	—	No manufacturing in China/Mexico/Canada; exposure viewed limited vs tariff focus countries	Limited risk
Technology/AI	—	—	Fertility genomics leveraging statistical ML/AI; pipeline updates	Building

Management Commentary

Strategic focus: “We’ve entered fiscal 2025 with a focus on taking share, driving profitability and executing on our strategic priorities, including increasing the availability of our innovative products… and launching new products.” – CEO .
Margin outlook: “I’ve got a lot of confidence we’re going to see gross margin expansion this year… and deliver roughly 10–12% constant currency operating income growth.” – CFO .
Pricing: “I think you’ll see pricing offset [~2.5–3%] inflation… this year, and… a pretty good chance that you’ll see that kind of pricing next year.” – CEO .
Capacity: “We’re continuing to see strong new fit activity in MyDay… but we’re not able to meet all the demand right now… it can take 1.5 years… to get a line in and [into] full production.” – CEO .
Fertility and AI: “As the forefront fertility company offering genetic testing built on statistical machine learning and artificial intelligence methods, we… presented updates to our suite of tests…” – CEO .

Q&A Highlights

October softness: Short-lived demand softness in U.S. and China from mid-October into early November; normalized subsequently .
MyDay supply: Capacity constraints remain the main limiter; APAC most impacted; ongoing line additions with long lead times .
Paragard trajectory: −10% in Q4; FY25 modeled “down a little to up a little” with continued pressure from other birth control options; competitive copper IUD approval timing unknown .
Pricing sustainability: Industry pricing expected to offset inflation; management confident in FY25 .
FY25 P&L framing: Interest expense ~ $90M assuming no Fed cuts; ETR slightly >15%; FX headwinds ~1.5% rev and ~4% EPS; continued operating margin expansion targeted .
Free cash flow and CapEx: FY25 FCF guided to improve to ~$350–$400M with CapEx ~~11% of revenue (~~$450M), prioritizing capacity expansion and debt reduction .

Estimates Context

Wall Street consensus from S&P Global could not be retrieved due to a request limit error during this analysis; therefore, we are not presenting third-party consensus comparisons in this recap. We benchmarked results against company-issued guidance instead, which COO modestly exceeded on non-GAAP EPS and landed within revenue ranges .
Values retrieved from S&P Global were unavailable at the time of this review due to access limits.

Key Takeaways for Investors

Quality print with operating leverage: non-GAAP EPS beat company guidance high-end, aided by gross margin expansion and SG&A leverage; framework for FY25 implies continued OI growth despite FX/tax headwinds .
CVI growth drivers intact: daily SiHy (MyDay/clariti), torics and multifocals continue to lead; capacity is the main bottleneck, not demand—supporting multi-quarter share gains as new lines come online .
MiSight remains a differentiated growth pillar: ~40% growth expected again in FY25, with broader retail/key account traction building; watch inventory timing effects intra-quarter .
CSI fertility strength offsets Paragard pressure: double-digit fertility growth sustained by innovation (including ML/AI-enabled genomics) while Paragard remains a headwind; net effect: mid-single-digit organic growth for CSI in FY25 .
FY25 setup: Organic revenue +6–8%, non-GAAP EPS $3.92–$4.02; interest and FX are known drags, but manufacturing productivity, pricing, and cost actions should still expand margins; FCF improvement supports deleveraging .
Trading lens: Near term, an EPS beat vs internal guidance and a balanced FY25 guide with explicit FX/interest/tax headwinds could anchor estimates; sustained commentary on capacity ramps, MiSight uptake, and fertility pipeline are likely to be catalysts for sentiment .

Appendix: Additional Data

CVI regional growth detail (Q4 2024)

Region	Revenue ($M)	y/y (Reported)	Constant Currency
Americas	$270.5	+5%	+6%
EMEA	$256.6	+14%	+11%
APAC	$149.3	+7%	+7%

Paragard color

Q2 stocking/price supported results with expected destock in Q3; Q4 down 10% y/y; FY25 modeled “down a little to up a little” .

Free cash flow/capex outlook

FY25: FCF targeted to ~$350–$400M; CapEx ~~11% of revenue (~~$450M) to fund capacity expansion .

Forward-looking caution

FX headwinds assumed for FY25 (~1.5% revenue, ~4% EPS), and ETR slightly >15%; interest expense ~ $90M without Fed easing .

COOPER COMPANIES, INC. (COO)·Q4 2024 Earnings Summary