Q3 2025 Omnicell Inc Earnings Call
Speaker #3: Thank you for standing by at this time . I would like to welcome everyone to today's Omnicell third Quarter 2025 financial results call .
Operator: Thank you for standing by. At this time, I would like to welcome everyone to today's Omnicell third quarter 2025 financial results call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star followed by the number one on your telephone keypad. Once again, star one. If you'd like to withdraw your question, simply press star one again. Thank you. I would now like to turn the call over to Kathleen Nemeth, Senior Vice President, Investor Relations. Kathleen.
Speaker #3: lines have been placed on mute to prevent any background noise . After the speakers remarks , there will be a question and answer session .
Kathleen Nemeth: Good morning and welcome to the Omnicell Third Quarter 2025 Financial Results Conference call. On the call with me today are Randall Lipps, Omnicell Chairman, President, CEO and Founder, and Baird Radford, Executive Vice President and Chief Financial Officer, as well as Nnamdi Nwokolo, Executive Vice President and Chief Operating Officer. This call will contain forward looking statements including statements related to financial projections or performance and market or company outlook based on current expectations. These forward looking statements speak only as of today or the date specified on the call. Actual results and other events may differ materially from those contemplated due to numerous factors that involve substantial risks and uncertainties. For more information, please refer to our press release issued today, Omnicell's annual report on Form 10-K filed with the SEC on February 27, 2025, and in other more recent reports filed with the SEC.
Kathleen Nemeth: Except as required by law, we do not assume any obligation to update any forward looking statements. During this call we will discuss some non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most comparable GAAP financial measures are included in our financial results press releases. Our results were released this morning and our financial results press releases are posted in the Investor Relations section of our website at ir.omnicell.com. With that, I will turn the call over to Randall. Randall.
Randall Lipps: Good morning and welcome to Omnicell's third quarter 2025 earnings call. We are pleased to report another strong quarter with total revenues, non-GAAP EBITDA, and non-GAAP EPS all exceeding the upper end of our previously issued guidance. We believe this robust performance reflects strength in our core point of care business and exceptional execution by the entire Omnicell team. Continued demand for our flagship point of care connected devices, including XT Extend, remained strong and drove our robust top line performance during the quarter. We are happy to see strong adoption of innovative solutions across inpatient and outpatient settings with recent wins at major health systems and government healthcare facilities. We believe that our transformation into an intelligent medication management technology company is progressing well, and we are encouraged by early positive customer feedback on our Omnisphere cloud-based platform.
Randall Lipps: Looking ahead, we remain focused on delivering innovative solutions globally that aim to continuously improve the customer experience and advance our customers closer to the industry-defined vision of the autonomous pharmacy. We believe that our commitment to operational excellence, customer-centric innovation, and cybersecurity positions us to drive long-term value for all stakeholders. As we have outlined previously, we expect our future growth to continue to be driven by three core pillars. First, expanding our market presence. We're actively working to grow our connected devices footprint across the inpatient and outpatient care environments, including nursing units, operating rooms, and a full spectrum of pharmacy settings. We find that recent customer wins and increased platform adoption underscore the strength of our solutions and the trust we're building across the healthcare continuum. Secondly, scaling recurring revenue.
Randall Lipps: We're also focused on expanding our base of predictable recurring revenue through service contracts, software subscriptions, and cloud-based offerings, which is anticipated to give us greater visibility into our business and deliver long-term value to customers. Lastly, accelerating our technology platform, Omnisphere. Omnisphere is our cloud-native platform designed to unify all Omnicell products under a single secure infrastructure. It is purpose-built to enable enterprise-wide visibility into medication and supply inventory and simplify access to automation and intelligence tools. As previously announced, Omnisphere achieved HITRUST CSF i1 certification, demonstrating our commitment to cybersecurity and adherence to high industry standards for data protection in medication management. Before we begin reviewing our third quarter 2025 results, I'd like to take a moment to welcome Baird Radford to Omnicell as our new Executive Vice President and Chief Financial Officer.
We find that recent customer wins and increased platform adoption underscore the strength of our Solutions and the trust for building across the healthcare. Continuum, secondly, scaling reoccurring Revenue. We're also focused on expanding our base of predictable, reoccurring Revenue, through service, contracts, software, subscriptions, and cloud-based offerings, which is anticipated to give us greater visibility into our business and deliver long-term value to customers. Lastly, accelerating, our technology platform atmosphere on the sphere is our Cloud. Native platform. Designed to unify all Omni sell products under a single secure infrastructure.
It is purpose-built to enable enterprise-wide visibility into medication and Supply inventory, and simplify access to Automation and intelligence tools as previously announced omnisphere achieved High trust CSF. I1 certification demonstrating our commitment to cyber security and inherence to high industry standards for data protection.
Randall Lipps: Baird brings more than 30 years of experience in healthcare and technology finance leadership, and we are thrilled to have him join our executive team. His deep expertise in driving strategic growth and operational excellence will be instrumental as we continue to progress our transformation into an intelligent medication management technology company. We look forward to Baird's leadership as we advance through innovation and executional rigor and seek to further our mission to deliver value to our customers, partners, and stockholders. Turning to our third quarter 2025 financial results, total revenue in the third quarter was $311 million, representing an increase of $28 million, or approximately 10%, compared to the third quarter of 2024, and an increase of $20 million, or approximately 7%, compared to the previous quarter.
And medication management before we begin reviewing our third quarter of 2025 results, I'd like to take a moment to welcome Barrett radford's omnis Celler.
Bear brings more than 30 years of experience in healthcare and Technology Finance leadership, and we are thrilled to have him. Join our executive team, his deep expertise in driving strategic growth and operational, excellence will be instrumental as we continue to progress our transformation into an intelligent medication management technology company.
We look forward to Bear's leadership as we advance through Innovation and executional rigor and seek to further our mission to deliver value to our customers partners, and stockholders. Turning to our third quarter, 2025 Financial results,
Total revenue in the third, quarter was 311 million.
Representing an increase of $28 million for approximately 10%.
Randall Lipps: Our third quarter 2025 earnings per share in accordance with GAAP were $0.12 per share compared to $0.19 per share in the third quarter of 2024 and $0.12 per share in the prior quarter. Our third quarter 2025 non-GAAP earnings per share were $0.51 compared with $0.56 per share in the same period last year and $0.45 per share in the prior quarter. Finally, during the third quarter of 2025, we substantially completed the $75 million stock repurchase program which our board authorized earlier this year. Despite a complex macroeconomic backdrop, we remain encouraged by the resilience and adaptability we are seeing in the hospital and health system markets. While inflation and regulatory uncertainties continue to influence capital spending decisions, we're seeing a steady and continued focus on strategic investments.
Compared to the third quarter of 2024 and an increase of 20 million or approximately 7% compared to the previous quarter.
Our third quarter 2025 earnings per share in accordance with gaap. We're 12 cents per share. Compared to 19 cents per share in the third quarter of 2024 and 12 cents per share and the prior quarter.
Our third quarter, 2025 non-gaap earnings per share worked 51 cents compared with 56 cents.
Per share in the same period last year and 45 cents per share in the prior quarter. Finally. During the third quarter of 2025, we substantially completed the 75 million stock repurchase program, which our board authorized earlier this year.
Randall Lipps: Hospitals seem to be prioritizing technologies that deliver strong ROI and operational efficiency, areas where we believe our portfolio is well aligned on the policy front. Although some uncertainties remain around federal funding, we're optimistic about the long-term commitment by hospitals and health systems to medication management, infrastructure, and innovation. Our technology and services solutions are designed to support hospitals in navigating these dynamics, and we're confident in our ability to grow through continued partnerships and value creation despite some of these industry headwinds. As we continue to execute on our strategic transformation, we're seeing strong market validation of our product and services roadmap. Our customers are responding positively to the breadth and depth of our solutions, particularly as we expand our reach across the continuum of care.
Despite a complex macroeconomic backdrop. We remain encouraged by the resilience and adaptability we are seeing in the hospital and health system markets while inflation and Regulatory uncertainties continue to influence, Capital spending decisions. We're seeing a steady and continued focus on strategic Investments.
Hospitals seem to be prioritizing technologies that deliver strong Roi and operational. Efficiency areas where we believe our portfolio is well aligned.
On the policy front, although some uncertainties remain around Federal funding. We're optimistic about the long-term commitment by hospitals and Health Systems to medication management infrastructure and innovation.
Our technology and services Solutions are designed to support hospitals in navigating these Dynamics.
And we're confident in our ability to grow through continued Partnerships and value creation despite some of these industry heads.
as we continue to execute on our strategic transformation, we're seeing strong Market, validation of our product and services roadmap
Randall Lipps: From the successful rollout of our XT dispensing system offering to the early customer experiences with our cloud-based Omnisphere platform, it's clear that our technology is resonating with healthcare providers who indicated they are seeking to enhance visibility, cybersecurity, efficiency, and patient safety. These innovative solutions are not only driving demand but also, we believe, reinforcing Omnicell's position as a trusted partner in the journey toward the autonomous pharmacy. This was another strong quarter for our point of care solutions, including XT cabinets for nursing care areas, anesthesia workstations for perioperative settings, and XT Extend. Leading healthcare providers across the U.S. and Canada, including the Department of Veterans Affairs, are choosing Omnicell solutions to support their medication dispensing needs.
Our customers are responding positively to the breadth and depth of our Solutions. Particularly, as we expand our reach across the Continuum of Care
our technology is resonating with health care providers, who indicated, they are seeking to enhance visibility
Cyber security efficiency and patient safety.
These innovative solutions are not only driving demand, but also, we believe reinforcing Omni cell's position as a trusted partner in the journey toward the autonomous Pharmacy. This was another strong quarter for our points of Care Solutions, including XD cabinets for nursing care areas, and it's easy to workstations for a perioperative settings and XT. Extend,
Randall Lipps: One of the largest health systems in the Southern United States selected Omnicell's point of care solutions along with our premier inventory optimization service, intelligence offering, and other central pharmacy solutions in an effort to increase inventory visibility, improve insights, and optimize workflows across their Georgia-based network. Our specialty pharmacy services offering, which is designed to help health systems launch and scale specialty pharmacy and 340B programs, continues to gain traction in the market. A leading hospital on Oregon's southern coast has selected Omnicell to help its efforts to expand access to high-acuity therapies across rural communities, aligning with the system's mission to deliver integrated community-based care. A not-for-profit health system in the Southeast United States is launching its first specialty pharmacy with support from Omnicell.
Leading Health Care Providers across the US and Canada, including the Department of Veterans, Affairs, or choosing Omni Sell Solutions to support their medication. Dispensing needs
1 of the largest.
Health Systems in the Southern United States. Selected Omni sells points of Care Solutions.
Along with our Premier inventory, optimization Services intelligence offering and other Central Pharmacy Solutions.
In an effort to increase inventory, visibility improve insights and optimize workflows across their Georgia based Network our Specialty Pharmacy Services offering which is designed to help health systems launch and scale Specialty, Pharmacy and 340b programs continues to gain Traction in the market. A leading Hospital on Oregon's. Southern coast has selected omnis sell to help its efforts to expand access to high.
Acuity therapies across rural communities, aligning with the systems mission to deliver integrated community-based care.
Randall Lipps: This new program is intended to support multiple hospitals and closely align with the system's cancer center, expanding access to life-sustaining therapies while advancing integrated, locally delivered care. As we look ahead, I'm energized by the momentum we're building through our commitment to innovation. As hospitals and health systems navigate a dynamic environment, Omnicell remains steadfast in our mission to be their most trusted partner, empowering them to achieve better outcomes, reduce costs, and alleviate staff burnout. I am confident that our focus on delivering value through innovation will continue to position us for success and support our customers as they shape the future of healthcare. As a reminder, Omnicell will be attending the 2025 American Society of Hospital Pharmacists.
A not-for-profit health system in the southeast United States is launching its first Specialty, Pharmacy, with support for Mommy cell.
This new program is intended to support multiple hospitals, and closely aligned with the systems Cancer Center expanding access to life-sustaining therapies while advancing integrated locally delivered care. As we look ahead, I'm energized by the momentum, we're building through our commitment to innovation.
The hospitals and Health Systems navigated Dynamic environment.
How many cell remains steadfast in our mission to be their most trusted partner. Empowering them to achieve better outcomes, reduce costs and alleviate staff burnout.
Baird Radford: Mid.
Randall Lipps: Year Meeting in Las Vegas from December 8th through the 10th where we are very excited to be sharing some of our new innovations. Now with that, I'd like to turn the call over to Baird Radford, thank you.
I am confident that our focus on delivering value through Innovation will continue to position us for success and support our customers as they shape the future of healthcare. As a reminder, Omni sale will be attending the 2025 American Society of Hospital pharmacists ahp midyear meeting in Las Vegas from December 8th, through the 10th, where we are very excited to be sharing some of our new Innovations.
Now, with that, I'd like to turn the call over to bear bear.
Baird Radford: You Randall and good morning everyone. I'm thrilled to be joining you today for my first earnings call at Omnicell and pleased to report that we exceeded our outlook, delivering results above the upper end of our previously provided third quarter 2025 guidance. Before I jump into the financials, I wanted to share a few thoughts and observations from my first couple months here at Omnicell. First, I have been truly inspired by the passion and dedication shown by our employees to deliver on Omnicell's mission to transform medication management through the delivery of innovative and reliable solutions for our customers. This customer focus positions us well to meet the rising expectations of the health systems we serve.
Thank you, Randall and good morning everyone.
I'm thrilled to be joining you today. For my first earnings call at Omni cell and please do report that we exceeded our Outlook, delivering results above the upper end of our previously provided third quarter, 2025 guidance,
Before I jump into the financials, I wanted to share a few thoughts and observations from my first couple months here at Omni cell.
First, I have been truly inspired by the passion and dedication shown by our employees to deliver on Omni sells mission to transform medication management through the delivery of innovative and reliable solutions for our customers.
This customer focus positions us well to meet the rising expectations of the health systems we serve.
Baird Radford: Second, I am excited about the market opportunity we see ahead of us in our connected device business, the cornerstone of our customer offering, and in our digital enablement roadmap that is focused on pairing our innovative hardware offerings with cutting edge software solutions and services. Third, I believe our business model provides the opportunity for us to create sustainable top line revenue growth while also prioritizing investments in a manner that expands profitability. Now moving to our third quarter 2025 results. Total revenue was $311 million, representing an increase of $28 million or approximately 10% from the third quarter of 2024 and an increase of $20 million or approximately 7% compared to the previous quarter. Third quarter 2025 product revenue was $177 million, representing an increase of $19 million compared to the third quarter of 2024 and an increase of $14 million over the previous quarter.
Second.
I'm excited about the market opportunity. We see ahead of us in our connected device business. The Cornerstone of our customer offering and in our digital enablement roadmap. That is focused on pairing our Innovative Hardware, offerings with Cutting Edge, software Solutions, and services.
Third, I believe our business model provides the opportunity for us to create sustainable. Topline Revenue growth while also prioritizing investments in a manner that expands profitability.
now, moving to our third quarter, 2025 results,
Total revenue was 311 million representing, an increase of 28 million or approximately 10% from the third quarter of 2024.
And an increase of 20 million or approximately 7% compared to the previous quarter.
77 million representing, an increase of 19 million compared to the third quarter of 2024 and an increase of 14 million over the previous quarter.
Baird Radford: Service revenue in the third quarter of 2025 was $133 million, which increased $9 million from the third quarter of 2024 and represented an increase of $6 million over the previous quarter. Non-GAAP gross margin for the third quarter of 2025 was 44.2% compared to the third quarter of 2024 of 44.5% and 44.7% in the prior quarter. A full reconciliation of our GAAP to non-GAAP results is included in each of our second quarter 2025 and third quarter 2025 quarterly earnings press releases, which are posted on our investor relations website. Our third quarter 2025 earnings per share in accordance with GAAP were $0.12 per share compared to $0.19 per share in the third quarter of 2024 and $0.12 per share in the prior quarter.
Service Revenue in the third quarter of 2025 was 133 million.
Which increased 9 million from the third quarter of 2024 and represented an increase of 6 million over the previous quarter.
Non-gaap growth margin for the third quarter of 2025 was 44.2% compared to the third quarter of 2024 of 44.5% and 44.7% in the prior quarter.
A full reconciliation of our gaap to non-gaap results is included in each of our second quarter, 2025 and third quarter of 2025 quarterly, earnings press releases, which are posted on our industrial relations website.
Our third quarter 2025 earnings per share in accordance with gaap for 12 cents. Per share, compared to 19 cents per share in the third quarter of 2024 and 12 cents per share in the prior quarter.
Baird Radford: Our third quarter 2025 non-GAAP earnings per share were $0.51, compared with $0.56 per share in the third quarter of 2024 and $0.45 per share in the prior quarter. Third quarter 2025 non-GAAP EBITDA was $41 million, compared with $39 million in the third quarter of 2024 and $38 million in the prior quarter. Our cash and cash equivalents totaled $180 million as of September 30, 2025, compared to $399 million as of June 30, 2025. The decrease reflects the repayment of a principal amount of $175 million of debt that matured in September 2025 and the repurchase of our common stock in the third quarter 2025 of approximately $62 million. The company continues to generate solid free cash flow, with third quarter 2025 free cash flow of $14 million compared to third quarter 2024 of $9 million and $27 million in the prior quarter.
Our third quarter, 2025 non-gaap earnings per share were 51 cents compared with 56 cents per share in the third quarter of 2024 and 45 cents per share in the prior quarter.
Third quarter. 2025 non-gaap IBA was 41 million compared with 39 million in the third quarter of 2024 and 38 million in the prior quarter.
Our cash and cash equivalents totaled 180 million as of September 30 2025 compared to 399 million as of June 30th 2025.
The decrease reflects the repayment of a principal amount of $175 million of debt that matured in September 2025, as well as the repurchase of our common stock in the third quarter of 2025, totaling approximately $62 million.
The company continues to generate solid free cash flow, with third quarter 2025 free cash flow of $14 million compared to third quarter 2024 of $9 million and $27 million in the prior quarter.
Baird Radford: In terms of accounts receivable days, sales outstanding for the third quarter of 2025 were 74 days, which compares to 83 days in the third quarter of 2024 and 75 days in the prior quarter. Inventories as of September 30, 2025 were $107 million, compared to $95 million at September 30, 2024 and $106 million at June 30, 2025. Now I would like to walk through some of the key business drivers for the third quarter of 2025. Product revenues continue to be strong, with third quarter 2025 product revenues of $177 million, up $19 million compared to the third quarter of 2024 and up $14 million compared to the prior quarter.
In terms of accounts, receivable Day sales outstanding for the third quarter of 2025 or 74 days which compares to 83 days in the third quarter of 2024 and 75 days in the prior quarter.
Inventories, as of September 30 2025 for 107 million compared to 95 million at September 30 2024.
And $106 million at June 3rd, 2025.
now, I would like to walk through some of the key business drivers for the third quarter of 2025
product revenues continue to be strong with third quarter 2025 product, revenues of 1777 million up 19 million compared to the third quarter of 2024 and up 14 million compared to the prior quarter.
Baird Radford: As I mentioned in my initial remarks, connected devices continue to be the cornerstone of our product offering, and our strong product revenue performance in the third quarter of 2025 was driven by strength in our point of care products, including XT Extend. We also continue to see a positive impact from the process improvements we have put in place over the past two years. These improvements include scheduling and customer engagement throughout the sales and implementation process, which contributed to our overperformance in the quarter compared to our previously announced expectations. Non-GAAP EBITDA in the third quarter of 2025 was $41 million, up by $2 million compared to the third quarter of 2024 and up by $3 million compared to the prior quarter.
As I mentioned in my initial remarks, connected devices continue to be the cornerstone of our product offering. Our strong product revenue performance in the third quarter of 2025 was driven by strength in our point of care products, including XT. Expand.
We also continue to see a positive impact from the process improvements. We have put in place over the past 2 years
These improvements include scheduling and customer engagement throughout the sales, and implementation process, which contributed to our overall performance in the quarter compared to our previously announced expectations.
Baird Radford: Non-GAAP EPS in the third quarter of 2025 was $0.51, which is down $0.05 compared to the third quarter of 2024, but up $0.06 compared to the prior quarter. If you recall, during our second quarter 2025 earnings call, we noted that we expected to see some headwinds in the third quarter of 2025 from increased tariff expense and non-recurring software upgrade costs in the field that are modestly impacting our non-GAAP EBITDA and non-GAAP earnings per share. During the quarter, we successfully mitigated some of the non-recurring software upgrade costs that we had noted previously by leveraging existing resources and various process efficiencies. Before we move to our guidance, I would like to provide an update on the tariff impact during the third quarter of 2025 and our current thoughts on tariffs for the remainder of 2025.
Non-gaap Ava, and the third quarter of 2025 was 41 million up by 2 million, compared to the third quarter of 2024 and up by 3 million compared to the prior quarter.
If you recall during our second quarter 2025 earnings call, we noted that we expected to see some headwinds in the third quarter of 2025 from increased tariff expense, and non-recurring software, upgrade costs in the field that are modestly impacting our non-gaap, evida and non-gaap earnings per share.
During the quarter, we successfully mitigated some of the non-recurring software upgrade costs that we had noted previously by leveraging existing resources in various process efficiencies.
before we move to our guidance, I would like to provide an update on the Tariff impact during the third quarter of 2025
Baird Radford: In the third quarter of 2025, tariffs impacted profitability by approximately $6 million net of mitigation efforts. We expect a similar $6 million net profitability impact in the fourth quarter of 2025. For full year 2025, the net tariff impact on profitability is projected to be approximately $15 million. After reflecting benefits from our supply chain management and pricing mitigation efforts, the supply chain team's efforts around tariff mitigation strategies have been impressive. They have worked with our contract manufacturers to move the sourcing of sub-assemblies and components to more favorable geographies while continuing to strengthen our supply chain resilience and maintain high product quality standards for our customers. While these mitigation efforts take time to reflect in the financials, we anticipate these actions will have a beneficial impact throughout 2026.
And our current thoughts on tariffs for the remainder of 2025.
In the third quarter of 2025 tariffs impacted profitability by approximately 6 million, net of mitigation efforts.
We expect a similar 6 million. Net profitability impact in the fourth quarter of 2025.
For a full year 2025 the net tariff impact on profitability is projected to be approximately 15 million after reflecting benefits from our supply chain management and pricing mitigation efforts.
The supply chain teams efforts around tariff, mitigation strategies have been impressive.
They have worked with our contract manufacturers to move the sourcing of sub assemblies and components to more favorable geographies while continuing to strengthen our supply chain resilience and maintain High product quality standards for our customers.
Baird Radford: Therefore, at this time we believe the full impact of tariffs in 2026 will be lower than the $6 million per quarter run rate as we exit 2025. Now turning to guidance, please note that our fourth quarter and updated full year 2025 guidance is based on our current estimate of the potential impact of tariffs as of today. We recognize that the situation is fluid and we are continuing to monitor the situation. Although there could be modest cash flow implications to the fourth quarter of 2025 from potential increases in tariff rates, we don't anticipate the potential changes to materially impact fourth quarter profitability. We will reflect potential near-term tariff changes, if any, in our 2026 guidance that we will provide in connection with the fourth quarter 2025 earnings call. For the fourth quarter of 2025, we are providing the following outlook.
While these mitigation efforts take time to reflect in the financials we anticipate these actions will have a beneficial impact throughout 2026.
therefore, at this time, we believe the full impact of tariffs in 2026 will be lower than the 6 million per quarter run rate as we exit 2025
Now turning to guidance.
Please note that our fourth quarter and updated full year. 2025 guidance is based on our current estimate of the potential impact of tariffs as of today,
We recognize that the situation is fluid and we are continuing to monitor the situation.
Although, there could be modest cash flow implications to the fourth quarter of 2025 from potential increases in tariff rates.
We don't anticipate the potential changes to materially impact fourth quarter profitability.
We will reflect potential near-term, tariff changes, if any, in our 2026 guidance.
That we will provide in connection with the fourth quarter 2025 earnings call.
Baird Radford: We expect fourth quarter 2025 total revenues to be between $306 million and $316 million, with product revenues anticipated to be within $175 million and $180 million, and service revenues expected to be between $131 million and $136 million. As we have shared previously, we expect revenue to be more linear in 2025 as process improvements that we have established last year are currently driving more consistent scheduling and stronger operational execution. We expect fourth quarter 2025 non-GAAP EBITDA to be between $37 million and $43 million, and non-GAAP earnings per share to be between $0.40 per share and $0.50 per share for full year 2025. We are maintaining our previously issued guidance ranges for product bookings and annual recurring revenue and modestly raising the midpoint of our guidance ranges for total revenues, non-GAAP EBITDA, and non-GAAP earnings per share.
For the fourth quarter of 2025, we are providing the following Outlook.
We expect fourth quarter 2025 total revenues to be between $306 million and $316 million, with product revenues anticipated to be within $175 million and $180 million.
And service revenues expected to be between 131 million and 136 million.
As we have shared previously, we expect Revenue to be more linear in 2025 as process. Improvements that we have established last year are currently driving more consistent scheduling and stronger. Operational execution.
We expect fourth quarter, 2025, non-gaap ibaa to be between 37 million, and 43 million, and non-gaap earnings per share to be between 40 cents, per share and 50 cents per share.
The full year 2025, we are maintaining our previously. Issued guidance ranges for product, bookings and annual recurring revenue, and modestly, raising the midpoint of our guidance ranges for total revenues non-gaap evida and non-gaap earnings per share.
Baird Radford: Consistent with our prior guidance, we continue to anticipate 2025 product bookings to be in the range of $500 million to $550 million, and year-end 2025 ARR is expected to be in the range of $610 million to $630 million. For 2025 total revenues, we are raising and narrowing our guidance range. Total revenues for full year 2025 are now expected to be in the range of $1.177 billion to $1.187 billion as compared to our prior expectation of $1.13 billion to $1.16 billion. Within product revenues, we saw a stronger third quarter of 2025 than previously guided on the strength of scheduling and customer engagement levels, combined with the momentum that we are carrying into the fourth quarter of 2025.
30 million.
For 2025 total revenues, we are raising and narrowing our guidance range.
Total revenues for full year, 2025 are now expected to be in the range of 1.177 billion to 1.187 billion as compared to our prior expectation of 1.13 billion to 1.16 billion.
Within product Revenue. We saw a stronger third quarter of 2025 and previously guided on the strength of scheduling and customer engagement levels.
Baird Radford: Product revenues for full year 2025 are now expected to be in the range of $661 million to $666 million compared to our prior expectations of $625 million to $640 million. Within service revenue, we have seen stronger performance within technical services revenues. Accordingly, we have increased the midpoint for technical services revenue guidance from $248 million to $260 million for full year 2025. However, our SaaS and expert services revenue growth has been slower than expected, particularly within our EnlivenHealth business as that business faces headwinds in the retail pharmacy space. As a result, we have modestly lowered the midpoint for our SaaS and expert services revenue guidance for the full year 2025 from $265 million to $259 million.
Combined with the momentum that we are carrying into the fourth quarter of 2025.
Product revenues for full year, 2025 are now expected to be in the range of 661 million to 666 million compared to our prior, expectations of 625 million to 640 million.
Within service Revenue, we have seen stronger performance within Technical Services revenues.
Accordingly, we have increased the midpoint for Technical Services Revenue. Guidance from 248 million to 260 million for full year 2025
However, our SAS and expert Services, Revenue growth has been slower than expected particularly within our enliven health business as that business faces, headwinds in the retail pharmacy space.
Baird Radford: Non-GAAP EBITDA for the full year 2025 is now expected to be in the range of $140 million to $146 million compared to our previous range of $130 million to $145 million. Finally, full year 2025 non-GAAP earnings per share are expected to be in the range of $1.63 to $1.73 versus our prior expectation of $1.40 to $1.65. The increase of our profit metrics at their respective midpoints represents the expected benefit from higher revenue levels, partially offset by investments in customer experience enhancements and innovation. For full year 2025, we are assuming an effective blended tax rate of approximately 18% in our non-GAAP earnings per share guidance. As we wrap up, I would like to extend my deep appreciation to the entire Omnicell team for their warm welcome and also for their incredible efforts in delivering a very strong third quarter of 2025.
As a result, we have monitored the midpoint for our SAS and expert Services Revenue. Guidance for the full year, 2025 from 265 million to 259 million
Non-gaap Eva for the full year 2025 is now expected to be in the range of 140 million to 146 million compared to our previous range of 130 million to 145 million.
Finally, full year, 2025 non-gaap earnings per share are expected to be in the range of 1.63 cents to $1.73.
For our prior expectation of 1.40 to $1.65.
The increase of a profit metrics at their respective. Midpoints represent the expected benefit from higher Revenue levels, partially offset by investments in customer experience, enhancements in innovation.
For full year 2025, we are assuming an effective Blended tax rate of approximately 18% in our non-gaap earnings per share guidance.
Baird Radford: Their resilience and dedication have laid a solid foundation for continued success throughout 2025 and into the future. We would now like to open the call for questions. Operator.
As we wrap up, I would like to extend my deep appreciation to the entire, Omni sell team, for their warm welcome, and also for their incredible efforts in delivering a very strong third quarter of 2025
Their resilience and dedication have laid a solid foundation for continued success throughout 2025, and into the future.
We would now like to open the call for questions, operator.
Operator: Thank you, and at this time I would like to remind everyone, in order to ask a question, press star and the number one on your telephone keypad. Once again, star one. In the interest of time, we ask that you please limit yourself to one primary question. If you have additional questions, you can rejoin the queue. Thank you in advance. We will pause just a moment to compile the Q&A roster. All right, looks like our first question today comes from the line of Jessica Datson with Piper Sandler. Jessica, please go ahead.
Thank you. And at this time I would like to remind everyone in order to ask a question press star and the number 1 on your telephone keypad. Once again star 1.
In the interest of time, we ask that you please limit yourself to one primary question. Then, if you have additional questions, you can rejoin the queue. Thank you in advance, and we will pause just a moment to compile the Q&A roster.
All right, looks like our first question today comes from the line of Jessica tassin with Piper Sandler. Jessica. Please go ahead.
Jessica Datson: Hi guys. Thanks for the question. I guess the most important one for me is just, you know, Baird, it's awesome to hear you emphasizing the hardware as being kind of central to the Omnicell platform. I'm interested to know, are you guys engaging with startup companies and doing diligence to figure out how to implement humanoid robots in the pharmacy or how to develop more sophisticated robotics? If so, does that potentially expand your reach into retail pharmacies or ambulatory settings? How should we be thinking about investments in hardware and specifically in robotics over the next, call it, whether inorganic or organic over the next couple years? I have just one on some 4Q detail?
Hi guys. Thanks for
Randall Lipps: Absolutely. I mean, it's all about AI and robotics. If you look at Per Genove, who we just hired as our new technical leader, he has an extensive robotic background for that reason. I think that it's key that we use robotics and deploy robotics to capture the information and detailed visibility of where meds are so that we can apply the power of intelligence across those to optimize and deliver outcomes for everyone. Absolutely. I'm sorry, Jessica, what was the other question?
Well, yeah, absolutely. I mean, it's all about Ai and Robotics. And, um, if you look at the per Genova, who we just hired, as a new, uh, technical leader has an extensive robotic background for that reason.
So, um,
I think that it's key that
Uh, we use Robotics and deploy robotics uh to capture the information and detailed visibility of where meds are so that we can apply our uh the power of intelligence across those to optimize and deliver uh, outcomes for for everyone. So that that's absolutely
And I'm sorry, Jessica. What was the other? Uh,
Jessica Datson: Yeah, I guess just one quick follow up. Is there any thought being given to potentially making a smaller version of the central dispensing robot just so that it's easier for customers to purchase both from a physical capacity and then also obviously a budget perspective?
Question. Yeah, I guess I just 1 quick follow-up. So. Is there any thought, um, being given to to potentially, you know, um, making a smaller version of the central dispensing, robot, just so that it's easier for customers to purchase both from from like, a physical capacity. And then also, obviously a budget perspective,
Randall Lipps: Yeah, I think we're looking at a lot of different dynamics there. Not only just size, but speed and types of robotics. I would say that there are a lot of different options on that plate that we are deploying, as well as just adding robotics to some of our current products that are more manual intensive today.
Yeah, I think we're looking at a lot of different Dynamics there, not only just size but speed and types of robots. So I would say that the
Uh, there are a lot of, uh,
different options on that plate that we are deploying, as well as just adding robotics to some of our current products that are um.
more manual intensive today.
Jessica Datson: Got it. Last one is just, I think there's some investor confusion just around Omnisphere. Can you clarify if an ADC does not run on Omnisphere today, what is it running on? Is Omnicell penetrated today across the ADC install base, or is it, you know, a large incremental revenue opportunity akin to XT Extend? Thanks, guys.
Got it. Um, last 1 is just I think there's some of them investor. Uh, confusion. Just around omnisphere. Can you clarify if an ADC does not run on omnisphere today? What is it? Running on? Um, and is Omni sell, uh, penetrated today across the ADC install base or is it, you know, a large incremental? Um uh Revenue opportunity? Akin to XT extend. Thanks guys.
Randall Lipps: Yeah, Omnisphere does run on our current products. You can connect Omnisphere to our Color Touch products, but long term they'll be integrated to another platform, a clean sheet platform. There's an easy path from Omnisphere to getting all of our products connected onto the platform.
Jessica Datson: Yeah, I would say, Randy, I would add that Omnisphere is still in limited customer release. There are some customers that are running it. Most of the current customers are on Omnicenter and eventually they'll migrate over to Omnisphere. That's the long term vision for that part of our innovation roadmap.
Randall Lipps: Yeah, we have early adopters running on it today, and it's been running for several years. Actually, we've been working on it, so it's a mature product.
Yeah, omnisphere does, um, a, a run on our current products so you can connect the omnisphere, uh, to our color touch product. Uh, but, uh, long term, uh, they'll be in great integrated to a another platform, a clean sheet platform. So, uh, there's an easy path from omnisphere to getting all of our products connected onto the platform. Yeah, I would say Randy, I would add that that omnisphere is in still in, um, limited customer release. There are some customers that are running it. Um, they're currently most of the current customers are on Omni Center and eventually they'll migrate over to omnisphere. That's the long term uh vision for that. Part of the of our Innovation roadmap. Yeah, we have
early adopters running on it today and it's, it's been running for
Jessica Datson: Okay, thanks, Jessica, for all three of your questions. Next question, please.
Several years actually, we've been working on it. So it's a, it's a mature product.
Okay.
Thanks, Jess for all 3, of your questions. Um, next question, please.
Operator: Yes, our next question comes from the line of Matt Hewitt with Craig-Hallum Capital Group. Matt, please go ahead. Good morning and congratulations on the strong quarter. Maybe I wanted to touch on the IV opportunity. You called out the Ballad Health win, and I'm just curious, as customers are looking to integrate your solutions, are they looking to add the IV at each facility or are they looking at more of a hub and spoke type model? I'm just trying to gauge how they're seeing this impacting their business and where it can go from there. Thank you.
Yes, our next question is uh, or I should say. It comes from the line of Matt Hewitt with Craig Hallam Capital group. Matt, please go ahead.
Good morning and uh, congratulations on the strong quarter. Uh, maybe I wanted to touch on the IV opportunity. You, you called out the Ballard health or the ballot Health, uh, win. And I'm just curious as customers are looking to integrate your Solutions, are they looking to add the Ivy at each facility? Or are they looking at more of a hub and spoke type model? I'm just trying to gauge how they're how they're, you know, seeing this impacting their business and and where it can go from there. Thank you.
[Company Representative]: Thank you, Matthew, for that question. Let me maybe provide just a broad perspective about how we're thinking about IV, and I'll hit your question directly. We see a great opportunity in the IV space with customers just taking control over their IV supply chain. To really unlock that opportunity, we're looking at different ways of doing that, everything from semi-automatic to fully automatic solutions. We have a number of programs out there right now with our workflow product and analytics. With respect to IV robot that you're asking about, it kind of depends on the size and the footprint of the health system. Typically, our implementation takes into account just what the goals of that health system are, what they want to achieve from a throughput on a volume standpoint, and that dictates how many robots actually go into implementation. That's typically how we approach that.
Thank you, Matthew for that question. And Let Me Maybe provide a, just a broad perspective about how we're thinking about Ivy, and I'll and I'll hit your question directly. Uh, so we see a great opportunity in the IV space with customers, just taking control over their IV, supply chain and to really unlock that opportunity. We're looking at different ways of doing that, everything from semi-automatic to fully automatic Solutions. Um, and we have a number of pro programs out there right now with our workflow product and analytics uh with respect to uh IV robot that you're asking about.
It kind of depends on the size and the, the footprint of the health system. But typically our implementation takes into account, just what the goals of that Health System, what they want to achieve from a throughput on a volume standpoint, and that dictates how many robots actually go into into implementation. So that's typically how we approach that.
Operator: That's great. Thank you.
That's great. Thank you.
Jessica Datson: Thanks Matt.
Operator: Thank you. Our next question comes from the line of Stan Berenshteyn with Wells Fargo. Stan, please go ahead.
Thanks Matt.
Thank you.
And our next question comes from the line of Stan Barenstein with Wells Fargo. Stan, please go ahead.
Baird Radford: Hi, good morning. Thanks for taking the questions. First, on bookings guidance, you reiterated guidance. I'm curious, as we sit here in the fourth quarter, is the composition of the products within your bookings in any way different than what you had anticipated at the start of the year? Can you also comment on whether you've seen any changes in your sales cycle? Thanks for the question, Stan. From the bookings perspective, I think it's important to recognize that we exited Q3 with good momentum. Our engagement with our pipeline continues to be strong, and we continue to see them looking primarily at our point of care products, and we have not seen a change in the mix within those offerings. Maybe just one quick one on the compounding robot. I think previously, Randy, you've said you're at the tail end of making upgrades here.
I'm curious. Um, as we said in the fourth quarter is the composition of the products within your bookings in any way different than what you had anticipated at the start of the year. And can you also comment on whether you've seen any changes in your sales cycle?
So, uh, thanks. Thanks for the question, Stan. Um, you know from the bookings perspective, I think it's important to recognize that we exited Q3 with good momentum. Our engagement with uh, our pipeline continues to be strong and we continue to see them looking primarily at our point of care products. Um and we have not seen a change in the mix within uh within those offerings.
Baird Radford: It's potentially coming out of limited release. Can you give us an update on that? What do you anticipate happens once you're out of limited release? Are you changing your go to market strategy there? How should we think about that? Thank you.
Okay, and maybe just a 1 quick 1 on the compounding, robot, I think. Previously, Randy, you said your, your, you know, the tail end of making upgrades here. It's potentially coming out of limited release. Can you give us an update on that? And then what do you anticipate happens? Once you're out of limited release. Are you you know changing your go to market strategy there. Um you know, how should we think about that? Thank you.
Randall Lipps: I think it's. We're still in limited release, and we don't have any precise date for when we're coming out of that limited release date. We want to get it right. It's a product that is complex and is FDA regulated, so we have to be very careful how we approach that on our semi automated platform. It is doing really well and picking up, and we feel like that continues to answer a lot of the open issues in the market that needs a solution.
Uh, yeah. Well I think it's uh, we're still in limited release and we don't have any precise date for when we're coming out of that limited release date. We want to get it right.
and it's, um, it's, it's a product that uh, is
Is complex and is FDA uh, regulated. So we we have to be very careful how we approach that.
On our semi-automated platform, it is doing really well and picking up, and we feel like that continues to answer a lot of the open issues in the market that need a solution.
Operator: All right, thanks for your question, Stan. Our next question comes from the line of David Larsen with BTIG. David, please go ahead.
All right, thanks for your question, Stan.
David Larsen: Hey, congratulations on the good beat and raise. Randy, can you maybe talk a little bit about the buying environment? I'm kind of hearing mixed things from different companies that sell into the hospital sector. Some are saying there's the risk of a slowdown with the big beautiful Bill act because of Medicaid and exchange enrollment headwinds that might happen. Others are saying there's not really any drag at all. What are you seeing and what are your discussions like with your clients? Looks like things are going pretty well.
And our next question comes from the line of David Larsen with btig David, please go ahead.
Randall Lipps: Yeah, I think things in general have been improving. I think it's really hospital system specific. If you have a lot of government pay or a higher % of government pay than the average, you're going to have more headwinds. I think the most interesting thing is that really there's a big refresh cycle that's approaching, and all the hospitals are preparing for this refresh cycle because we see a lot of the old first generation systems or recent generation systems in the marketplace sunsetting that are not our systems but are our competitors. With that refresh cycle comes people who are aware that they need to prepare for purchasing more tech in the pharmacy space.
Hi. Uh, congratulations on the good beat and raise. Um, Randy can you maybe talk a little bit about the buying environment? We're kind of, I'm kind of hearing mixed things from different companies that sell into the hospital sector. Some are saying there's the risk of a Slowdown on what the big beautiful bill act because of Medicaid and exchange enrollment headwinds that might happen. Others are saying there's not really any drag at all, what what are you seeing and what are your discussions like with your your clients? So it looks like things are going pretty well.
Yeah, I think things that in general have been improving. I think it's really Hospital. Uh, systems specific. If you have a lot of government pay or a higher percentage of government pay than than the average, uh, you're going to have more headwinds. Uh, I think the most interesting thing is that really there's a big refresh cycle that's approaching and, uh, all the hospital.
Randall Lipps: With our first wave of refresh cycle coming up, it is an opportunity for us to really approach the marketplace with all of our new innovative platforms, particularly around our Omnisphere and intelligence platform, where people really want an enterprise solution that's unique. We're really excited about this changing mindset due to the timing in the market and our ability to have these deeper conversations both with our customers and those who are not our customers.
Hospitals, uh, are preparing for this refresh cycle because, um, we see, um, uh, a lot of the old first generation systems are, are, are recent generation systems in the marketplace, uh, sun setting, uh, that are not our systems, but our our competitors. So, with that refresh cycle, comes people who are aware that they need to prepare, uh, for purchasing, uh, more Tech in the pharmacy space. And with our first wave of refresh cycle coming out, it is an opportunity for us to, um, uh, really approach the marketplace with all of our new Innovative platforms. Uh, particularly around our on the sphere and the intelligence platform where people really want an Enterprise solution, uh, that's unique. So real really excited about, uh, this changing mindset due to the timing in the market, and our ability to have these deeper conversations, both with our customers and
those who are not our customers.
David Larsen: That's great. I'm hearing a lot about GLP1s. Every time I look up, somebody's mentioning it. Can your compounding product help hospital systems create a compounded GLP1 solution for their patients, or is that not an area you're sort of in?
Great. And then I'm hearing a lot about lglp ones. Every time I look up, somebody's mentioning it can, your compounding product help Hospital Systems, create a, a compounded, glp1 solution for their patients, or is that not an area. You're sort of in
Randall Lipps: We've looked at that area and we haven't found the best way to use our technology there to formally create a program or create a program for the hospitals. We're still looking at it. I think it's, we're wondering if it's going to change with the oral solids coming out and what impact that would have on the IV compounding approach.
Well, we've looked at that area and we haven't found the best way to use our technology there to, uh, formally create a program or create a program for the hospitals, but we're still looking at it and I, I think it's, we're wondering if it's going to change with the oral, uh, solids coming out and what impact that would have on the IB compounding approach.
Operator: All right, thanks for the question, David. Our next question comes from the line of Bill Sutherland with the Benchmark Company. Bill, please go ahead.
All right, thanks for the question, David.
Baird Radford: Thank you. Good morning, everyone. Baird, you called out the headwinds that are slowing the EnlivenHealth product. Any other industry headwinds in particular that you guys are watching most closely, you know, as far as could impact as you go into 2026? The short answer is we're not seeing anything at this time. We are definitely focused on staying very close on the point of care business to those customer negotiations and monitoring the flow through of backlog as well as negotiations of the pipeline for bookings to come. Those are the places where we stay very focused. At this point, we're seeing consistency with the last several quarters. Okay. While I've got you, always curious about capital deployment, you know, as you look into this quarter. Thanks. Thanks for the question, Bill.
And our next question comes from the line of Bill Sutherland with the Benchmark company. Bill, please go ahead.
we headwinds in particular that you guys are watching, most closely, um, you know, as far as cutting impact as you go into 2026,
Uh, the the short answer is we're we're not seeing anything at this time. We are definitely focused and staying very close on the point of care business to those customer negotiations and monitoring the flow through of backlog, uh, as well as negotiations of the pipeline for booking to come. So, those are the places where we stay very focused. But at this point, we're seeing, uh, consistency with the last several quarters.
Okay, and then, well, I've got you. I'm always curious about capital deployment. You know, as you look into this quarter.
Baird Radford: You know, as we highlighted during Q3, we completed the remaining $62 million of our $75 million share repurchase program. This helped us reduce our outstanding share count over the course of that program by 5%. As we look forward, I think it's important to keep a couple things in mind. I'm working with the team to get up to speed on our potential options and trade offs as it relates to investing in first organic growth as well as potentially acquisitions and or share repurchases. Still relatively new to the company in two months. There are no actions currently planned. I definitely want to reiterate for this group that we're committed to being prudent and disciplined in making these decisions into the future.
Yeah, thanks. Thanks for the question, Bill. Um, you know, as we highlighted during Q3, we completed the remaining $62 million of our $75 million share repurchase program. This helped us reduce our outstanding share count over the course of the repurchase program by 5%.
Um as we look forward I think it's important to keep a couple things in mind. I'm working with the team to get up to speed on our potential options and trade-offs as it relates to investing in first organic growth, as well as potentially Acquisitions and or share repurchases.
Um, still relatively new to the company in 2 months. Um, so there are no actions currently planned. Um, but I definitely want to reiterate for this group that we're committed to being prudent and disciplined in making these decisions into the future.
Operator: All right, thanks, Bill. Our next question comes from the line of Scott Schoenhaus with KeyBanc Capital Markets. Scott, please go ahead. Thanks team.
All right, thanks Bill.
And our next question comes from the line of Scott showing house with keybanc, capital markets, Scott, please go ahead.
Baird Radford: Congrats on a strong quarter and welcome, Baird. I guess a lot of my questions have been answered, but I guess my question will be on 340B. Randall, your commentary seemed a little bit more positive this quarter versus previous quarters. Anything to draw there, what the customer behavior is changing there? Is it anything to do with the regulatory side from the HIC subsidies, and then how do you adapt your platform or your selling season this year around the regulatory? Is there maybe positives that you can sort of adapt your conversations with your clients, such as 340B? Thanks.
Randall Lipps: Yeah, thanks, Scott. Appreciate the comments and questions. I think we've really matured over the last year, particularly this year. We're seeing more crossover sales from our regular sales force with our 340B team acting as a good go to market. We're seeing over half of our new customers and pipeline coming from current Omnicell customers, and this is a really positive indicator. This is where we want to get the synergies, and as we kind of change our go to market, added in some salesforce strength, we're seeing good results from that. We are picking up the pace there as we sign these new contracts, which will eventually come out in increased ARR. We think it's a positive business. We haven't seen anything to really slow it down.
Thanks team, congrats on the strong quarter and welcome beard. Um, so I guess, um, a lot of my questions have been answered, but I guess my question, uh, will be on 340 B. Uh, Randall, your commentary seen a little bit more positive. Uh, this quarter versus previous quarters, anything to draw their, what the customer behavior is changing. There, is it anything to do with the regulatory side from the hick subsidies? And then, how do you adapt your platform or your cell your selling season this year around? The regulatory, is there is maybe positives that you can sort of adapt your conversations with your clients such as 340b. Thanks. Yeah. Well, thanks Scott. Um, appreciate the comments and questions.
Um, yeah. I think we, uh, really matured over the last year. Particularly this year, we're seeing more crossover sales from our, uh, regular sales force with our 340b team acting as a, a good go to market. So, we're seeing over half.
Of our new customers and pipeline coming from current Omni sell customers. And this is a really positive indicator. This is where we want to get the synergies. And as we've kind of changed our go to market uh added in some sales force strength. Uh we're seeing good results from that. And uh we're we're we're uh
Randall Lipps: Even though there's a lot of chatter about some of the specialty drugs being cost being reduced, there's still enough activity there that it makes it worthwhile for these hospitals to pursue a specialty pharmacy and to operate, make it easy for them to operate it by using our services.
We are picking up the pace there, uh, as we sign these new contracts, we which will, uh, eventually uh, come out in uh, increased ARR. We think it's a positive business. We haven't seen anything to really slow it down even though there's a lot of chatter about some of the specialty drugs, uh, being uh tossed being reduced. Uh, there's still enough activity there, that it makes it worthwhile uh, for these hospitals to pursue a specialty, pharmacy, and and, and to operate, uh, make it easy for them to operate it by using our services.
Operator: All right, thank you for the question, Scott. Our next question comes from the line of Gene Mannheimer with Freedom Capital Markets. Gene, please go ahead.
All right. Thank you for the questions, Scott.
And our next question comes from the line of Eugene, mannheimer with freedom Capital markets Eugene, please go ahead.
Baird Radford: Thanks for taking the question. Congrats on the great numbers and welcome, Baird. I just really had one. I mean, you had a very strong quarter, so you cited strength in your point of care business. I'm just wondering, how much of that outperformance was due to net new wins versus expansions within the base versus, say, maybe you're seeing some tail end of the XT upgrade cycle. Just trying to understand some of the dynamics within that. Thank you. I think we saw relative consistency there. There were wins, there were expansions within existing customers and can't really pin it on anything specific. It was just really good, solid execution by the team across the offerings. Makes sense. Where are we in that XT upgrade? Is it 90% of the way done at this point?
Thanks for taking the question, congrats on the great numbers and and welcome beard. Um, I just really had 1. I mean, you, you had a very strong quarter. So, um, you cited strength in your point of care business. I'm just wondering, like, how much of that outperformance was due to net new wins versus expansions within the base?
Versus say, maybe you're seeing some tail. End of the XT upgrade cycle. Just trying to understand some of the Dynamics within that. Thank you.
I think we um I think we saw relative consistency there. Um, you know, there were there were wins, there were expansions within existing customers and um
The offerings.
Makes sense. Did, where where are we in? You know, that XT upgrade? Is it 90% of the way done at this point?
Randall Lipps: No, we're for the cohort we have, and it's very early on, right, because we just started last April.
Uh, know, we're we're, uh, for the cohort. We have, it's very early on, right? Because, uh,
Jessica Datson: No, the full XT, not the XT Extend. Oh, I'm sorry, Bill is asking you that. Yeah, the full XT. From a bookings perspective, Bill, we're well along the completion of the upgrade cycle. Obviously, from a revenue perspective, we've got bookings and backlog, which we expect to continue to ship throughout the next several quarters. From an XT Extend perspective, as Randy said, we're still fairly early in that from that perspective.
We just started uh last April. So know the full XT, not the extent. Oh, I'm sorry. Is asking about? Yeah.
Baird Radford: Sure. Makes sense. Okay, thank you.
The full extent. So from a bookings perspective Bill we're well along. Um, the completion of the upgrade cycle. Obviously from a revenue perspective, we've got bookings and backlog which we expect to continue to ship, uh, throughout the next, several quarters from an extend perspective. As Randy said, we're still fairly fairly early in that, uh, from that respect.
Sure, makes sense. Okay, thank you.
Operator: Thank you, Eugene. Our next question comes from the line of Allen Lutz with Bank of America. Allen, please go ahead.
Thanks Eugene.
And our next question comes from the line of Alan Lutz with Bank of America Alan. Please go ahead.
Baird Radford: Good morning and thanks for taking the questions. Randy, you mentioned the sunsetting of a competitor system, maybe presenting a unique opportunity for Omnicell to take some share. Can you talk about how big that opportunity is? Can you talk maybe a little bit about the historical switching rate between you and one of your major competitors? As you go to market, trying to convince some of those prospects to switch, what is sort of the pitch and can you talk overall about your expectations as it relates to what, if any, of that is embedded in guidance for the rest of the year?
Good morning and thanks for taking the questions. Randy you mentioned the the sun setting of a competitor system, maybe presenting a unique opportunity for omnis sell to take some Cher. Can you talk about how big that opportunity is? Can you talk maybe a little bit about the historical switching rate between you and and 1 of your major competitors and then as you go to market, trying to convince some of those prospects to switch.
[Company Representative]: Thanks.
Randall Lipps: Yeah, thanks for the question, Allen. Yeah, it's a significant sized market. Right. It's an $8 to $10 billion market. The opportunity for us to switch is about moving from sort of unique product to a platform. The centerpiece of our approach is the enterprise offering that we have with Omnisphere, which really sits as the central piece that allows you to connect all of the current technology, all the new technology, all the smaller technology to a central platform to collect the data and integrate into the operation of these very, very large institutions. It really allows you not to have additional servers or, you know, the cloud just expands as you need more space.
You know what, what is, what is sort of the pitch and and can you talk over all about your expectations? Uh as it relates to, what if any of that is embedded in guidance, for the rest of the year? Thanks?
Yeah, thanks for the question. Uh Alan. Yeah, it's a significant sized market, right? It's 8 to 10 billion dollar market.
and um,
the opportunity for us to switch is about moving from
Randall Lipps: It provides the flexibility that you need to give these institutions as they move more patients to outpatient or change their cadre of hospitals around to different sets as they acquire or get rid of those. It's the flexibility they need to do that. You know, they want the outcomes and the outcomes depend on collecting the data and storing it and using it in an intelligent way. An approach in the autonomous pharmacy, you need to have all the data to do that in order to actually let the system start to make high level decisions for you. Historically, we've grown this company by taking market share. I think through the pandemic things were muted. Coming out of the pandemic, things were muted because people didn't want to have the people to do the switching. I think that's changed now.
Uh, sort of unique product to a platform. And this is the center piece of our approach is the Enterprise uh, offering that we have with omnisphere, which really sets the central piece, that allows you to connect. All of the current technology, all the new technology, all the smaller technology, to a central platform, to collect the data and integrate um, into the operation of these very, very large institutions. It really allows you uh, not to have additional servers or, you know, the cloud just expands for as you need more space. And so it, it, it provides the flexibility that you need to give these institutions as they move more patients to outpatient or, uh, change their their, uh, Cadre of hospitals around to a different, uh, sets as they acquire or get rid of those. Uh, it's it's the flexibility. They need to to do that.
And, uh, you know, because they, they want the outcomes and the outcomes depend on collecting the data and storing it and and uh, using uh, it in an intelligent way and then approaching the autonomous Pharmacy. You need to have all the data to do that. In order to
Actually let the system start to make, uh, high level decisions for you. And when we, you know, historically uh, you know, we've grown this company by taking market share. Um, I think through the pandemic, things were muted and coming out of the pen thing. Thanks from you because of uh, people didn't want to have the people to do the switching. I think that's uh now uh
Randall Lipps: Hospitals are much more stable, their employee base is stable and they want to spend strategic capital. I think we'll get our fair hearing in these accounts and it's a unique opportunity. We have been leading the innovation. We absolutely believe we have the best product in the marketplace by far. We're going to get more than our fair share. We have and we will.
You know, that's that's changed. Now, hospitals are much more stable, their employee base is stable and, um, they want to spend strategic Capital. So I think we'll get, uh, Our Fair hearing and these accounts.
And it's a unique opportunity and uh, you know, we have been leading the Innovation. We absolutely believe we have the best product in the marketplace by far.
and um, we uh
You know, we're going to get more than our fair share. We have and we will
Baird Radford: Thanks, Randy.
Randall Lipps: You bet.
Thanks, Randy.
Operator: Thank you, Allen. It looks like there are no further questions at this time. I will now turn the call back over to Randall for closing comments. Randall?
You bet. Thank you, Alan.
Randall Lipps: Thank everybody for joining. It is a unique time in the industry and we're really excited about it. I hope that some of you will be able to meet us at ASHP and see some of the new innovations we're bringing to the marketplace. It's an exciting time to be in our market. We've been preparing for these upcoming years and I think we've done a good job and we'll move forward and get back to some solid growth. Thanks for joining.
And it looks like there are no further questions at this time. So I will now turn the call back over to Randall for closing comments. Randall. Well,
well, thank everybody for joining it is unique time in the industry and um, we're really excited about it. I hope that some of you will be able to
Uh, meet us at the ASA and see some of the new Innovations. We're bringing to the marketplace. Uh, it's an exciting time to be in our markets. We've been preparing for uh, these upcoming years. And I think we've done a good job.
and um,
Operator: Cheers. Ladies and gentlemen, that does conclude today's call. You may now disconnect. Have a great day everyone.
And uh, we'll move forward and uh, get back to Some solid growth. Thanks for joining cheers.
That does conclude today's call. You may now disconnect have a great day, everyone.
Jessica Datson: Sa.