Omnicell, Inc. Q4 FY2025 earnings call

• The fourth quarter of 2025 saw total revenues, bookings, and ARR each come in above the midpoint of the previously announced guidance ranges, with strong performance in the core Point of Care business and demand for flagship point of care connected devices like XT S10.
• Actively working to expand market presence across inpatient and outpatient care environments, introduced Titan XT at the ASHP annual meeting in December, designed to unify automation and intelligence for better medication management.
• Focused on scaling recurring revenue, with continued strength in annual recurring revenue exiting 2025 at an annualized run rate of $636 million, a 10% increase from 2024.
• Accelerating the technology platform Omnisphere, which achieved high-trust CSF I one certification in 2025, and had positive feedback from pharmacists and nursing regarding Titan XT and Omnisphere.
• Had recent wins at major health systems and government health care facilities, including the Department of Veteran Affairs selecting Omnicell point of care dispensing and IV workflow solutions.

For the fourth quarter of 2025, total revenue was $314 million, an increase of 2% from 2024 and 1% compared to the previous quarter. Product revenue in the fourth quarter of 2025 was $180 million, a decrease of 1% compared to 2024 and an increase of 1% over the previous quarter. Service revenue in 2025 was $134 million, which increased 8% from 2024 and 1% over the previous quarter. For the full year 2025, total revenue was $1.185 billion, in the upper range of the previously issued guidance. Product revenue was $666 million compared to $631 million in 2024. Service revenue was $519 million compared to $482 million in 2024. Annual recurring revenue (ARR) at the end of 2025 was $636 million, compared to the previous guidance of $610 to $630 million and an increase from ARR of $580 million at the end of 2024.

• For the first quarter of 2026, total revenue is expected to be between $300 million and $310 million, product revenue between $171 million and $176 million, and service revenue between $129 million and $134 million. Non-GAAP EBITDA is expected to be between $27 million and $33 million, and non-GAAP earnings per share between $0.26 and $0.36 per share.
• For the full year 2026, product bookings are anticipated to be in the range of $510 million to $560 million. Total revenue is expected to be in the range of $1.215 billion to $1.255 billion. Product revenue is expected to be in the range of $690 million to $710 million, and service revenue in the range of $525 million to $545 million. Year-end 2026 ARR is expected to be in the range of $680 million to $700 million. Non-GAAP EBITDA for the full year 2026 is expected to be in the range of $145 million to $160 million, and full year 2026 non-GAAP earnings per share is expected to be in the range of $1.65 to $1.85 per share. Includes an estimated $15 million in tariff costs and an effective tax rate of approximately 13%.

• Regulatory environment surrounding tariffs remains fluid, which may impact customer capital decisions.

Q: Deb on behalf of Allen Lutz asks about product booking expectations and the Titan cycle ramp.

A: Baird Radford and Randall Lipps respond about the refresh cycle being in excess of $2.5 billion, the focus on the platform rather than just hardware, and the broad enthusiasm from customers regarding the platform.

Q: Matthew Hewitt asks about feedback from Xtend customers and margin mitigation.

A: Nnamdi Njoku responds that Xtend customers can access cloud capability through Omnisphere and that efforts are being made to mitigate tariff costs, including natural benefits from team efforts and supply chain optimization.

Q: Scott Schoenhaus asks about competitive wins and margin mix shift with Omnisphere.

A: Randall Lipps and Baird Radford respond about strong top of the funnel, assuming modest step up in forecast reflecting competitive position, and plans to share more on Omnisphere margin impact later.

Q: Bill Sutherland asks about ARR growth drivers and Titan impact on cabinet refresh.

A: Baird Radford and Randall Lipps respond about ARR growth from technical services, consumables, and specialty businesses, and that Omnisphere allows garnering new revenue stream from subscription fees.

Q: Jessica Tassan asks about lease structure and AI risk.

A: Randall Lipps responds about Omnicell financing option for leases and that AI tools need an infrastructure like Omnisphere which is beneficial for Omnicell.

Q: Stanislav Berenshteyn asks about robotics mix and EnlivenHealth/340B.

A: Nnamdi Njoku responds that robotics has not been a material amount, and EnlivenHealth has headwinds in retail while 340B is a compelling part of specialty business with no material revenue change expectation.

Q: Eugene Mannheimer asks about Titan adoption cycle and competitive share.

A: Randall Lipps responds that Titan adoption is more about platform and broader solutions, with less bell curve shape due to additional products off Omnisphere, and confidence in winning more than fair share with the platform.

Q: David Larsen asks about 1Q revenue guide and Omnisphere hosting.

A: Baird Radford responds that there was no material push from Q4 to Q1 and Omnicell will host data for clients with Omnisphere, providing oversight and easy access for clients.