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OI

OMNICELL, INC. (OMCL)·Q3 2025 Earnings Summary

Executive Summary

  • Beat and raise: Q3 revenue $310.6M grew 10% YoY and ~7% QoQ, with non-GAAP EPS $0.51; both exceeded prior guidance upper-ends, driving a modest raise to FY25 total revenue ($1.177B–$1.187B), non-GAAP EBITDA ($140M–$146M), and non-GAAP EPS ($1.63–$1.73) .
  • Core driver: Point-of-care connected devices (XT cabinets, XT Extend) and technical services led the upside; SaaS & Expert Services trailed plan, particularly EnlivenHealth, prompting a slight FY25 reduction for that line .
  • Tariffs contained but still material: Q3 net tariff headwind ~$6M, expected similar in Q4; management expects mitigation actions to reduce 2026 impact below the Q4 run-rate .
  • Capital allocation and balance sheet: Repaid $175M notes due Sep-2025 and repurchased ~1.99M shares for ~$62M; ended Q3 with $180M cash and full $350M revolver availability .

What Went Well and What Went Wrong

What Went Well

  • Devices outperformed: “Flagship point-of-care connected devices continued to be the core driver,” with product revenue $177.5M (+$19.1M YoY; +$14.3M QoQ) and non-GAAP EBITDA $41.1M .
  • Execution/process improvements: Better scheduling and customer engagement contributed to overperformance and more linear revenue seasonality in 2025 .
  • Services quality signal: Specialty Pharmacy Services earned URAC Health Care Management Certification (effective Oct 1, 2025–2028), reinforcing compliance/scalability credibility for health-system specialty pharmacy enablement .

What Went Wrong

  • Tariff headwinds pressured profitability: ~$6M net impact in Q3 and similar expected in Q4; FY25 total tariff impact projected at ~$15M despite mitigation .
  • SaaS softness: Slower growth in SaaS & Expert Services (notably EnlivenHealth) drove a FY25 midpoint reduction to $259M (from $265M) even as Technical Services guidance was raised .
  • GAAP profitability below prior-year: GAAP net income $5.5M ($0.12) vs $8.6M ($0.19) in Q3’24 despite stronger revenue, reflecting tariff costs and investment cadence .

Financial Results

P&L and Margins (USD Millions except per-share; periods oldest → newest)

MetricQ1 2025Q2 2025Q3 2025
Total Revenue ($MM)$269.7 $290.6 $310.6
Product Revenue ($MM)$145.2 $163.2 $177.5
Service Revenue ($MM)$124.5 $127.4 $133.1
GAAP Gross Margin (%)41.1% 43.9% 43.3%
Non-GAAP Gross Margin (%)42.1% 44.7% 44.2%
GAAP Operating Margin (%)(4.3%) 2.8% 2.7%
Non-GAAP EBITDA ($MM)$23.6 $38.4 $41.1
Non-GAAP EBITDA Margin (%)8.7% 13.2% 13.2%
GAAP Diluted EPS ($)($0.15) $0.12 $0.12
Non-GAAP Diluted EPS ($)$0.26 $0.45 $0.51

Segment Mix (USD Millions)

MetricQ1 2025Q2 2025Q3 2025
Product Revenue$145.2 $163.2 $177.5
Service Revenue$124.5 $127.4 $133.1
Total Revenue$269.7 $290.6 $310.6

KPIs and Cash Flow

KPIQ2 2025Q3 2025
Days Sales Outstanding (days)75 74
Free Cash Flow ($MM, non-GAAP)$26.8 $14.0
Cash & Cash Equivalents ($MM)$399.0 $180.1
Inventory ($MM)$105.8 $107.4

Capital allocation/events: Repurchased ~1,987,000 shares for ~$62M and repaid $175M convertible notes due Sep-2025 .

Results vs S&P Global Consensus (Estimates vs Actuals; periods oldest → newest)

MetricQ1 2025Q2 2025Q3 2025
Revenue Consensus Mean ($MM)$260.0*$275.2*$295.6*
Revenue Actual ($MM)$269.7 $290.6 $310.6
EPS Consensus Mean ($, non-GAAP)$0.205*$0.27*$0.363*
EPS Actual ($, non-GAAP)$0.26 $0.45 $0.51

Values with asterisk (*) retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total RevenuesFY 2025$1.130B–$1.160B $1.177B–$1.187B Raised
Product RevenuesFY 2025$625M–$640M $661M–$666M Raised
Service RevenuesFY 2025$505M–$520M $516M–$521M Raised (mid)
Technical Services RevenuesFY 2025$245M–$250M $259M–$261M Raised
SaaS & Expert Services RevenuesFY 2025$260M–$270M $257M–$260M Lowered
Non-GAAP EBITDAFY 2025$130M–$145M $140M–$146M Raised (mid)
Non-GAAP EPSFY 2025$1.40–$1.65 $1.63–$1.73 Raised
Product BookingsFY 2025$500M–$550M $500M–$550M Maintained
Annual Recurring Revenue (ARR)FY 2025$610M–$630M $610M–$630M Maintained
Total RevenuesQ4 2025—$306M–$316M New quarterly outlook
Product RevenuesQ4 2025—$175M–$180M New quarterly outlook
Service RevenuesQ4 2025—$131M–$136M New quarterly outlook
Non-GAAP EBITDAQ4 2025—$37M–$43M New quarterly outlook
Non-GAAP EPSQ4 2025—$0.40–$0.50 New quarterly outlook

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
Tariffs/MacroQ1 flagged tariff uncertainty; updated FY non-GAAP ranges to reflect potential higher supply chain costs . Q2 reiterated tariff risk (international ops, tariffs in risk factors) .~$6M net tariff headwind in Q3; expect similar in Q4; FY25 net ~$15M; mitigation underway to reduce 2026 impact below current run-rate .Improving medium-term (mitigation), near-term headwind stable
AI/Technology & OmnisphereQ2: Omnisphere HITRUST i1 certification; MedVision/MedTrack launched; Austin Innovation Lab opened .CEO emphasized AI/robotics; Omnisphere in limited customer release; path to broader platform integration; early adopters live .Building momentum
Point-of-Care DevicesQ1: XT Amplify (XT Extend) drove growth . Q2: devices cited as primary driver .Devices remain cornerstone; drove product revenue upside; process improvements boosted delivery .Strengthening
IV CompoundingQ2 hosted IV TRUST Summit (adoption advocacy) .IV robot still limited release; semi-automated solutions performing well; deployment varies by system scale/goals .Gradual progress
SaaS/Expert Services & EnlivenHealthQ1–Q2: SaaS growth included as tailwind .SaaS & Expert growth slower vs plan; EnlivenHealth facing retail headwinds; FY25 SaaS midpoint lowered .Softening
Market/Competitive DynamicsQ1–Q2: general execution and pipeline; risk factors noted .Anticipated competitor system sunsetting creates share gain opportunity; refresh cycle supportive .Opportunity expanding

Management Commentary

  • “Total revenues, non-GAAP EBITDA and non-GAAP EPS all exceeding the upper end of our previously issued guidance… flagship point-of-care connected devices continued to be the core driver.” — Randall Lipps, CEO .
  • “Connected devices continue to be the cornerstone… strong product revenue performance… driven by strength in our point of care products including XT Extend.” — Baird Radford, CFO .
  • “In Q3 2025, tariffs impacted profitability by approximately $6 million net of mitigation… expect a similar $6 million in Q4… full year 2025 net tariff impact approximately $15 million… anticipate these actions will have a beneficial impact throughout 2026.” — Baird Radford, CFO .
  • “Omnisphere… cloud-native platform… early adopters running on it today… still in limited customer release; most current customers are on Omnicenter and eventually will migrate.” — Management .

Q&A Highlights

  • AI/Robotics roadmap: Management highlighted expanding robotics in pharmacy workflows and data capture to power intelligence; exploring smaller/faster central robots and adding robotics to manual-intensive products .
  • Omnisphere adoption path: Currently connects to existing products with migration path to a new platform; limited release with early adopters; broader penetration to come over time .
  • IV compounding: Semi-automated offerings gaining traction; fully automated IV robot remains in limited release; deployment model depends on health system size/throughput needs .
  • Mix, bookings, pipeline: End-market engagement strong; point-of-care mix stable; execution across new wins and expansions; anticipated competitor refresh cycle a share opportunity .
  • EnlivenHealth and retail headwinds: Slower SaaS growth concentrated in EnlivenHealth affected FY mix; offset by stronger technical services .
  • Capital deployment: Completed ~$62M of repurchases under $75M program; CFO reiterates disciplined future capital allocation across organic growth, M&A, and buybacks .

Estimates Context

  • Q3 beats vs S&P consensus: Revenue $310.6M vs $295.6M*; non-GAAP EPS $0.51 vs $0.36*; 8 estimates on both metrics. Prior two quarters also beat on both revenue and EPS. We expect upward revisions to FY revenue/EPS, partially tempered by lower SaaS/Expert midpoint and tariff headwinds .
  • Potential estimate changes: Raise product/device and technical services trajectories; moderate SaaS/Expert growth assumptions (EnlivenHealth); incorporate ~$6M tariff headwind in Q4 and lower 2026 tariff drag due to mitigation .

Values with asterisk (*) retrieved from S&P Global.

Key Takeaways for Investors

  • Devices-led beat and FY raise signal execution strength; non-GAAP EPS momentum continued sequentially (Q2 $0.45 → Q3 $0.51) despite tariff pressures .
  • Tariff drag (~$6M/Q) persists near term, but supply chain/pricing mitigation improves 2026 outlook; model lower tariff burden beyond Q4 .
  • Expect estimate revisions up on revenue/EPS; watch mix: Technical Services up, SaaS & Expert (EnlivenHealth) modestly down; overall FY guide raised .
  • Share gain setup: Competitor system sunsets and hospital refresh cycle create a multi-year pipeline for platform wins; Omnisphere + devices underpin the pitch .
  • Capital structure de-risked: $175M note maturity repaid; liquidity intact with $180M cash and $350M revolver availability; buyback reduced share count by ~5% during program .
  • Watch catalysts: ASHP Midyear product showcase (Dec 7–11) for innovation updates; IV robot commercialization milestones; Omnisphere migration progress .
  • Risk checks: Track Q4 tariff impact realization, SaaS/Expert momentum recovery, and execution on more linear deliveries into year-end .