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OI

OMNICELL, INC. (OMCL)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $269.7M, up 10% YoY and above S&P Global consensus ($260.0M); non-GAAP EPS was $0.26, also above consensus ($0.205). GAAP EPS was a loss of $0.15, improving from a loss of $0.34 in Q1 2024 . Q1 beats reflected XT Amplify momentum and SaaS/Expert Services growth .
  • Sequentially, revenue fell from Q4 2024 ($306.9M) and margins compressed (non-GAAP gross margin 42.1% vs 47.4% in Q4) due to typical seasonality and lower product volumes .
  • Full-year 2025 non-GAAP EBITDA/EPS guidance was reduced on May 6 for tariff headwinds to $100–$145M and $1.00–$1.65, then raised on May 22 after a temporary tariff rate cut to $120–$145M and $1.30–$1.65; Q2 2025 non-GAAP EBITDA/EPS guidance was also raised to $25–$31M and $0.24–$0.34 .
  • Near-term stock drivers: temporary tariff relief (90-day rate cut), raised profitability guidance, and a new $75M buyback authorization; sustained ARR expansion and XT Amplify adoption underpin medium-term trajectory .

What Went Well and What Went Wrong

What Went Well

  • Revenue and non-GAAP EPS beat guidance and consensus; management noted “customers embracing the industry-defined vision of the Autonomous Pharmacy” and “strong customer interest” in the innovation roadmap .
  • Recurring revenue growth: SaaS and Expert Services and Specialty Pharmacy contributed to YoY revenue increase; ARR remains a strategic focus (target $610–$630M year-end) .
  • Management confidence and execution: “Our business performed very well… demand for robust medication management,” with Q1 non-GAAP EBITDA of $24M and improved YoY profitability metrics .

What Went Wrong

  • Margin compression QoQ: non-GAAP gross margin fell 530bps vs Q4 due to lower product volumes and seasonal expenses (payroll taxes, benefits reset) .
  • Tariff headwinds: initial guidance cut contemplated ~$40M impact to 2025 non-GAAP EBITDA from China-sourced subassemblies; limited ability to pass price increases immediately .
  • Cash flow lower YoY: non-GAAP free cash flow was $10.2M vs $37.6M in Q1 2024; operating cash flow fell to $25.9M from $50.0M YoY .

Financial Results

Core P&L and EPS vs prior periods

MetricQ1 2024 (oldest)Q4 2024Q1 2025 (newest)
Total Revenues ($M)$246.2 $306.9 $269.7
GAAP Diluted EPS ($)($0.34) $0.34 ($0.15)
Non-GAAP Diluted EPS ($)$0.03 $0.60 $0.26
Non-GAAP EBITDA ($M)$10.8 $46.4 $23.6

Margins

MetricQ1 2024 (oldest)Q4 2024Q1 2025 (newest)
GAAP Gross Margin (%)37.6% 46.2% 41.1%
Non-GAAP Gross Margin (%)39.8% 47.4% 42.1%
Non-GAAP Operating Margin (%)(1.5)% 10.6% 3.5%
Non-GAAP EBITDA Margin (%)4.4% 15.1% 8.7%

Segment Breakdown

MetricQ1 2024 (oldest)Q4 2024Q1 2025 (newest)
Product Revenues ($M)$133.3 $182.3 $145.2
Service Revenues ($M)$112.9 $124.6 $124.5

KPIs

KPIQ1 2024 (oldest)Q4 2024Q1 2025 (newest)
Cash & Cash Equivalents ($M)$512.4 $369.2 $386.8
Total Debt, net ($M)—$340.9 $341.3
Operating Cash Flow ($M)$50.0 $56.3 $25.9
Non-GAAP Free Cash Flow ($M)$37.6 $42.7 $10.2
Inventories ($M)$110.1 $88.7 $91.1
DSO (days)—77 86

Q1 2025 vs S&P Global Consensus

MetricActualConsensusSurprise
Total Revenues ($M)$269.7 $260.0*Bold Beat
Primary EPS ($)$0.26 $0.205*Bold Beat
EBITDA ($M)$23.6 $21.5*Beat

Values marked with * retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Non-GAAP EBITDAFY 2025$140M–$155M (2/6) $100M–$145M (5/6) Lowered
Non-GAAP EPSFY 2025$1.65–$1.85 (2/6) $1.00–$1.65 (5/6) Lowered
Non-GAAP EBITDAFY 2025$100M–$145M (5/6) $120M–$145M (5/22) Raised
Non-GAAP EPSFY 2025$1.00–$1.65 (5/6) $1.30–$1.65 (5/22) Raised
Non-GAAP EBITDAQ2 2025$22M–$30M (5/6) $25M–$31M (5/22) Raised
Non-GAAP EPSQ2 2025$0.19–$0.32 (5/6) $0.24–$0.34 (5/22) Raised
Total RevenuesFY 2025$1.105B–$1.155B (2/6) $1.105B–$1.155B (5/22) Maintained
Total RevenuesQ2 2025$270M–$280M (5/6) $270M–$280M (5/22) Maintained
Product RevenuesFY 2025$610M–$640M (2/6) $610M–$640M (5/22) Maintained
Service RevenuesFY 2025$495M–$515M (2/6) $495M–$515M (5/22) Maintained
ARRFY 2025$610M–$630M (2/6) $610M–$630M (5/22) Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024, Q4 2024)Current Period (Q1 2025)Trend
AI/Cloud platform (OmniSphere)Emphasis on next-gen cloud-native workflows; easier migration without dual systems Continued focus; Bangalore center expanding cloud strategy; CTO appointment supports tech roadmap Positive momentum
XT Amplify adoptionGaining market momentum; pipeline building; Amplify beyond console upgrade Above-outlook product revenue; wins across multiple health systems; XTExtend rollout ongoing Expanding
Supply chain & tariffsQ4: minimal expected impact under then-current plans ~$40M 2025 non-GAAP EBITDA impact anticipated; mitigation via re-sourcing & selective pricing; temporary tariff cut lifted guidance Headwind easing near term
IVX compounding robotEarly adopter expansion; additional NDCs unlocked in 2024 “Very successful” release deployed to customers; pipeline building Gradual ramp
Hospital budget/macroStabilization and green shoots in provider fundamentals Customers increasingly view pharmacy as strategic; specialty programs support revenue Improving
Regulatory/340B/IRAMonitoring 340B and IRA impacts; specialty broadening to smaller systems Continued monitoring; no material China revenue exposure Neutral/watch

Management Commentary

  • “We delivered strong financial results… exceeding our previously provided guidance ranges for both revenue and earnings” .
  • “At this time, we anticipate the impact from tariffs for 2025 to be approximately $40 million to non-GAAP EBITDA… we are reducing full year 2025 non-GAAP EBITDA and EPS guidance” .
  • “We intend to continue to shift production of subassemblies to more favorable geographies… over time, we anticipate broader changes to our supply chain” .
  • CFO: “All of our guided metrics exceeded or landed in the upper end of our previously stated guidance ranges” for Q1; Q2/FY guidance widened due to tariff uncertainty .

Q&A Highlights

  • Tariff burden: “We are not passing significant price increases on to the customer” initially; potential for pricing/discount changes as situation evolves .
  • Tariff cadence: ~$5M impact in Q2, $30–$35M in H2; bias to Q4 given stronger revenue seasonality .
  • XT Amplify rollout: XTExtend actively deploying; sourced globally, driving tariff exposure; strategy to reallocate sourcing .
  • Hospital environment: Pharmacy becoming more strategic; specialty/outpatient initiatives are catalysts; no observed slowdown in installs/sales cycles yet .
  • IVX progress: Next release rolled out; broader formularies, speed/reliability; pipeline growing .

Estimates Context

  • Q1 2025 actuals vs consensus: revenue $269.7M vs $260.0M*; Primary EPS $0.26 vs $0.205*; EBITDA $23.6M vs $21.5M* — broad beats reflecting XT Amplify and services strength . Values marked with * retrieved from S&P Global.
  • Q2 2025 context: Company revenue guidance $270–$280M vs consensus $275.2M*; EPS guidance $0.24–$0.34 (updated 5/22) vs consensus $0.27* — guidance brackets consensus; May 22 update narrowed/raised profitability ranges on temporary tariff relief . Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Q1 delivered clean beats on revenue and non-GAAP EPS; sequential margin compression appears seasonal and tied to product mix reset .
  • XT Amplify and Specialty Pharmacy Services are driving recurring revenue growth; ARR guidance maintained at $610–$630M, supporting durability into H2/H1’26 .
  • Tariff headwinds were a major narrative shift this quarter; mitigation levers include re-sourcing, accelerated shipments from low-tariff geographies, and selective pricing actions .
  • Temporary tariff rate reduction (90 days) and raised Q2/FY profitability guidance plus a $75M buyback are near-term positive catalysts .
  • Watch margin trajectory: non-GAAP gross margin should improve as XT Amplify and SaaS/Expert Services scale through 2025; tariff dynamics are the key swing factor .
  • Balance sheet remains solid: $386.8M cash and $341.3M net debt (convertible notes), providing flexibility to navigate supply chain and invest in innovation .
  • Trading lens: headline sensitivity to tariff updates and Amplify adoption; into Q2, beats/misses likely hinge on product volumes and the pace of mitigation actions; guidance ranges reflect uncertainty and will drive estimate revisions .