Omnicell, Inc. Q2 FY2025 earnings call

• Had a strong second quarter and first half of 2025, reaffirming full-year 2025 outlook for product bookings and annual reoccurring revenue, and modestly increasing guidance for total revenues, non-GAAP EBITDA, and non-GAAP earnings per share. • Focused on innovation, evolving from a device-centric company to an end-to-end medication and medical supplies management technology platform company. • Launched initiatives like OmniSphere, which received HITRUST CSF i1 certification, and unveiled an innovation lab in Austin, Texas. • Highlighted customer wins in various areas including XT Amplify, IV automation, central pharmacy, and specialty pharmacy services. • Addressed tariff impacts, with net quarterly impact expected to be approximately $6 million per quarter for the third and fourth quarters of 2025, and net tariff impact in 2025 expected to be approximately $15 million.

Total revenue for the second quarter of 2025 was $291 million. Product revenue was $163 million, representing approximately 56% of total revenue. Service revenue was $127 million, representing approximately 44% of total revenue. The second quarter 2025 earnings per share in accordance with GAAP were $0.12 per share, and non-GAAP earnings per share was $0.45. Second quarter non-GAAP EBITDA was $38 million.

• Third quarter 2025 total revenues expected to be between $290 million and $300 million, product revenues between $165 million and $170 million, services revenue between $125 million and $130 million, non-GAAP EBITDA between $28 million and $32 million, and non-GAAP earnings per share between $0.30 per share and $0.37 per share. • Full year 2025 total revenues expected to be in the range of $1.13 billion to $1.16 billion, up from prior guidance. Non-GAAP EBITDA expected to be in the range of $130 million to $145 million, up from previous guidance. Non-GAAP earnings per share expected to be in the range of $1.40 to $1.65. • Assumed an effective blended tax rate of approximately 18% in non-GAAP earnings per share guidance. • Anticipated net tariff impact in 2025 to be approximately $15 million, with projected quarterly impacts for third and fourth quarters of 2025 being approximately $6 million per quarter.

• Macroeconomic uncertainty, including potential impact on customer buying behavior. • Tariff impacts, with net quarterly impact expected to be approximately $6 million per quarter for the third and fourth quarters of 2025, and net tariff impact in 2025 expected to be approximately $15 million. • Need for mitigation efforts to offset tariff impacts, which take time to flow through financial statements.

Q: Jessica Tassan from Piper Sandler asked about the competitive landscape, including hospitals' buying behavior, macro headwinds, Medicaid impact, and competitor launch.

A: Randall Lipps stated that hospitals' buying behavior hasn't changed, momentum continues in the top 300 hospital space, and Omnicell is competitive against competitors.

Q: Matt Hewitt from Craig-Hallum Capital Group inquired about Medicaid cuts and competitor behavior.

A: Randall Lipps said hospitals' financials are in line to continue buying products, and Omnicell is proactively approaching customers.

Q: Stan Berenshteyn from Wells Fargo asked about IV compounding product demand and timeline for the robot's release.

A: Randall Lipps mentioned the IV compounding product is ready, gaining momentum, and the robot is nearing graduation from limited release.

Q: David Larsen from BTIG asked about software in clinics and product roadmap.

A: Randall Lipps explained MedVision allows full visibility in clinics and is integrated into the enterprise platform.

Q: Scott Schoenhaus from KeyBanc asked about revenue mix shift and lease renewals.

A: Randall Lipps discussed revenue mix shift, lease renewals being a small portion of business, and mix growing slowly towards more reoccurring revenue.