Omnicell Q4 2025 Omnicell Inc Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 Omnicell Inc Earnings Call
Speaker #1: Hello, and welcome to the Omnicell fiscal year and fourth quarter 2025 results. All lines have been placed on mute to prevent any background noise.
Operator: Hello, and welcome to the Omnicell Fiscal Year and Q4 2025 results. 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 would like to ask a question during this time, simply press star, followed by the number 1 on your telephone keypad. And if you would like to withdraw your question, press star 1 again, and please note that this call is being recorded. I will now turn the call over to Kathleen Neiman, Senior Vice President, Investor Relations. You may begin.
Operator: Hello, and welcome to the Omnicell Fiscal Year and Q4 2025 results. 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 would like to ask a question during this time, simply press star, followed by the number 1 on your telephone keypad. And if you would like to withdraw your question, press star 1 again, and please note that this call is being recorded. I will now turn the call over to Kathleen Neiman, Senior Vice President, Investor Relations. You may begin.
Speaker #1: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press the power followed by the number one on your telephone keypad.
Speaker #1: And if you would like to withdraw your question, press the star one again. And please note that this call is being recorded. I will now turn the call over to Kathleen Nemeth, Senior VP in Press Relations, you may
Speaker #1: begin. Good morning and
Kathleen Nemeth: Good morning, and welcome to the Omnicell Full Year 2025 and Q4 financial results conference call. On the call with me today are Randall Lipps, Omnicell Chairman, President, CEO, and Founder, Baird Radford, Executive Vice President and Chief Financial Officer, and Nnamdi Njoku, 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: Good morning, and welcome to the Omnicell Full Year 2025 and Q4 financial results conference call. On the call with me today are Randall Lipps, Omnicell Chairman, President, CEO, and Founder, Baird Radford, Executive Vice President and Chief Financial Officer, and Nnamdi Njoku, 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.
Speaker #2: Welcome to the Omnicell full year 2025 and fourth quarter financial results conference call. On the call with me today are Randall Lipps, Omnicell Chairman, President, CEO, and Founder; Baird Radford, Executive Vice President and Chief Financial Officer; and Nandi Nuchoku, Executive Vice President and Chief Operating Officer.
Speaker #2: 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 dates specified on the call.
Speaker #2: Actual results and other events may differ materially from those contemplated due to numerous factors that involve substantial risks and uncertainties. For more issued today: information, please refer to our press release with the SEC on OMNICELL's annual report on Form 10-K filed February 27th, 2025.
Speaker #2: And another more recent we do not assume any obligation to update any forward-looking SEC. statements. During this call, we Except as required by law, will discuss some report filed with the non-GAAP financial measures, non-GAAP financial measures to the most measures are included in our financial results press releases.
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 financial 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 always posted in the investor relations section of our website at ir.omnicell.com. With that, I will turn the call over to Randall. Randall?
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 financial 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 always posted in the investor relations section of our website at ir.omnicell.com. With that, I will turn the call over to Randall. Randall?
Speaker #2: Our results were released this morning, and our financial results press releases are always posted in the Investor Relations section of our website at ir.omnicell.com.
Speaker #2: With that, I will turn the call over to Randall.
Speaker #2: Randall. Good
Randall Lipps: Good morning, and welcome to Omnicell's Q4 2025 Earnings Call. We are pleased to report a solid finish to 2025, with Q4 total revenues, bookings, and ARR each coming in above the midpoint of our previous announced guidance ranges. We executed nicely in our core point of care business and saw strong demand for our flagship point-of-care connected devices, including XT Extend, which drove our robust top-line performance during the quarter. We are happy to see the ongoing customer focus on our innovative solutions, leading to recent wins at major health systems and government healthcare facilities. We continue to advance our transformation efforts into an end-to-end medication management platform technology company. Looking ahead, we remain focused on delivering innovative solutions that aim to continuously improve the customer experience and enable the autonomous pharmacy vision.
Randall Lipps: Good morning, and welcome to Omnicell's Q4 2025 Earnings Call. We are pleased to report a solid finish to 2025, with Q4 total revenues, bookings, and ARR each coming in above the midpoint of our previous announced guidance ranges. We executed nicely in our core point of care business and saw strong demand for our flagship point-of-care connected devices, including XT Extend, which drove our robust top-line performance during the quarter. We are happy to see the ongoing customer focus on our innovative solutions, leading to recent wins at major health systems and government healthcare facilities. We continue to advance our transformation efforts into an end-to-end medication management platform technology company. Looking ahead, we remain focused on delivering innovative solutions that aim to continuously improve the customer experience and enable the autonomous pharmacy vision.
Speaker #3: morning and welcome to OMNICELL's fourth quarter 2025 earnings call. We are pleased to report a solid finish to 2025. The fourth quarter total revenues bookings and ARR each coming in above the midpoint of our previous announced guidance ranges.
Speaker #3: We executed nicely in our core point-of-care business and saw strong demand for our flagship point-of-care connected devices, including XTX10, which drove our robust top-line performance during the quarter.
Speaker #3: We are happy to see the ongoing customer focus on our innovative solutions leading to recent wins at major health systems and government healthcare facilities.
Speaker #3: We continue to advance our transformation efforts into an end-to-end medication management platform technology company. Looking ahead, we remain focused on delivering innovative solutions that aim to continuously improve the customer experience and enable the autonomous pharmacy vision.
Speaker #3: We believe that our commitment to operational excellence, as well as customer and patient-centric outcomes positions us to drive long-term value for all of our stakeholders.
Randall Lipps: We believe that our commitment to operational excellence, as well as customer and patient-centric outcomes, positions us to drive long-term value for all of our stakeholders. As we have outlined previously, we expect our future growth to continue to be driven by three core pillars, which include expanding our market presence, scaling recurring revenue, and accelerating our technology platform. First, expanding our market presence. We're actively working to grow our product footprint across the inpatient and outpatient care environments, including nursing units, operating rooms, and a full spectrum of pharmacy settings. We believe that the recent customer wins and increased platform adoption underscore the strength of our solutions and the trust we are building across the healthcare continuum. As part of this expansion of market presence, we introduced Titan XT, our transformational enterprise-wide automated dispensing system, at the ASHP annual meeting in December.
Randall Lipps: We believe that our commitment to operational excellence, as well as customer and patient-centric outcomes, positions us to drive long-term value for all of our stakeholders. As we have outlined previously, we expect our future growth to continue to be driven by three core pillars, which include expanding our market presence, scaling recurring revenue, and accelerating our technology platform. First, expanding our market presence. We're actively working to grow our product footprint across the inpatient and outpatient care environments, including nursing units, operating rooms, and a full spectrum of pharmacy settings. We believe that the recent customer wins and increased platform adoption underscore the strength of our solutions and the trust we are building across the healthcare continuum. As part of this expansion of market presence, we introduced Titan XT, our transformational enterprise-wide automated dispensing system, at the ASHP annual meeting in December.
Speaker #3: As we have outlined previously, we expect our future growth to continue to be driven by three core pillars: which include expanding our market presence, scaling reoccurring revenue, and accelerating our technology platform.
Speaker #3: First, expanding our market presence. We're actively working to grow our product footprint across the inpatient and outpatient care environments. Including nursing units, operating rooms, and a full spectrum of pharmacy settings.
Speaker #3: We believe that the recent customer wins and increased platform adoption underscore the strength of our solutions and the trust we are building across the healthcare continuum.
Speaker #3: As part of this expansion of market presence, we introduced Titan XT, our transformational enterprise-wide automation dispensing system, at the ASHP annual meeting in December.
Speaker #3: Titan XT is designed to unify proven automation and powerful intelligence, and will deliver a more efficient medication management experience to support a growing health system.
Randall Lipps: Titan XT is designed to unify proven automation and powerful intelligence and will deliver a more efficient medication management experience to support a growing health system. With the Titan XT launch, we continue to focus on extending the power of OmniSphere, Omnicell's cloud-based, high-trust, certified medication management platform into inpatient nursing care areas. This should deliver greater control of medication inventory management for pharmacy, while providing nurses with more confidence when administering medications. At the ASHP annual meeting, we connected with over 4,000 pharmacy leaders who had the opportunity to see firsthand how we are working to empower autonomous medication management to deliver improved patient outcomes, a superior clinical experience, and greater visibility and security. We are encouraged by the early positive feedback that we are receiving from pharmacists and nursing as our sales team discusses Titan XT and OmniSphere with customers. Second, scaling recurring revenue.
Randall Lipps: Titan XT is designed to unify proven automation and powerful intelligence and will deliver a more efficient medication management experience to support a growing health system. With the Titan XT launch, we continue to focus on extending the power of OmniSphere, Omnicell's cloud-based, high-trust, certified medication management platform into inpatient nursing care areas. This should deliver greater control of medication inventory management for pharmacy, while providing nurses with more confidence when administering medications. At the ASHP annual meeting, we connected with over 4,000 pharmacy leaders who had the opportunity to see firsthand how we are working to empower autonomous medication management to deliver improved patient outcomes, a superior clinical experience, and greater visibility and security. We are encouraged by the early positive feedback that we are receiving from pharmacists and nursing as our sales team discusses Titan XT and OmniSphere with customers. Second, scaling recurring revenue.
Speaker #3: With the Titan XT launch, we continue to focus on extending the power of cloud-based high-trust certified OMNISPHERE. OMNICELL's medication management platform into inpatient nursing care areas.
Speaker #3: This should deliver greater control of medication inventory management for pharmacy, while providing nurses with more confidence when administering medications. At meeting, we connected with over 4,000 pharmacy leaders who had the opportunity to see firsthand how we are working to empower autonomous medication management to deliver improved patient outcomes.
Speaker #3: A superior clinical experience and greater visibility and security. We're encouraged by the early positive feedback that we are receiving from pharmacists and nursing as our sales team discusses Titan customers.
Speaker #3: XT and OMNISPHERE with Second, scaling reoccurring revenue. We are focused on expanding our base of predictable recurring revenue through cloud-based offerings software subscriptions and revised service contracts.
Randall Lipps: We are focused on expanding our base of predictable recurring revenue through cloud-based offerings, software subscriptions, and revised service contracts, which is anticipated to provide greater predictability for our business, while delivering long-term value to our customers. As Baird will discuss in a moment, our strong Q4 performance was driven in part by continued strength in annual recurring revenue, which exited Q4 of 2025 at an annualized run rate of $636 million, an increase of 10% from our 2024 exit rate. Lastly, accelerating our technology platform, OmniSphere. OmniSphere is our cloud-native platform designed to unify all Omnicell products under a single, secure infrastructure, intended to make it simpler, safer, and more connected to manage medications within a growing health system.
Randall Lipps: We are focused on expanding our base of predictable recurring revenue through cloud-based offerings, software subscriptions, and revised service contracts, which is anticipated to provide greater predictability for our business, while delivering long-term value to our customers. As Baird will discuss in a moment, our strong Q4 performance was driven in part by continued strength in annual recurring revenue, which exited Q4 of 2025 at an annualized run rate of $636 million, an increase of 10% from our 2024 exit rate. Lastly, accelerating our technology platform, OmniSphere. OmniSphere is our cloud-native platform designed to unify all Omnicell products under a single, secure infrastructure, intended to make it simpler, safer, and more connected to manage medications within a growing health system.
Speaker #3: Which is anticipated to provide greater predictability for our business while delivering long-term value to our customers. As Baird will discuss in a moment, our strong fourth quarter performance was driven in part by continued strength in annual recurring revenue, which exited the fourth quarter of 2025 at an annualized run rate of $636 million, an increase of 10% from our 2024 exit rate.
Speaker #3: Lastly, accelerating our technology platform, OMNISPHERE. OMNISPHERE is our cloud-native platform designed to unify all OMNICELL products under a single, secure infrastructure intended to make it simpler, safer, and more connected to manage medications within a growing health system.
Speaker #3: Designed to be the connected backbone for medication management, OMNISPHERE offers a single command center for automation and intelligence that is engineered to provide enterprise-wide visibility into medications and supply inventory.
Randall Lipps: Designed to be the connected backbone for medication management, OmniSphere offers a single command center for automation and intelligence that is engineered to provide enterprise-wide visibility into medications and supply inventory. As previously announced, OmniSphere achieved HITRUST CSF i1 certification in 2025, demonstrating our commitment to cybersecurity and adherence to high industry standards for data protection and medication management. Recognizing this recent example of our commitment to customer-centric solutions, Omnicell once again noted among the top 50 healthcare technology companies by the Healthcare Technology Report, for a continuous focus on innovation that is designed to help healthcare organizations deliver safer and more precise care. We believe the power of Omnicell's products and services portfolio to support safety and efficiency across all care settings is resonating with the market as large health systems across the country select Omnicell during the quarter as their medication management partner.
Randall Lipps: Designed to be the connected backbone for medication management, OmniSphere offers a single command center for automation and intelligence that is engineered to provide enterprise-wide visibility into medications and supply inventory. As previously announced, OmniSphere achieved HITRUST CSF i1 certification in 2025, demonstrating our commitment to cybersecurity and adherence to high industry standards for data protection and medication management. Recognizing this recent example of our commitment to customer-centric solutions, Omnicell once again noted among the top 50 healthcare technology companies by the Healthcare Technology Report, for a continuous focus on innovation that is designed to help healthcare organizations deliver safer and more precise care. We believe the power of Omnicell's products and services portfolio to support safety and efficiency across all care settings is resonating with the market as large health systems across the country select Omnicell during the quarter as their medication management partner.
Speaker #3: As previously announced, OMNISPHERE achieved high trust CSF-I1 certification in 2025. Demonstrating our commitment to cybersecurity and adherence to high industry standards for data protection and medication management.
Speaker #3: Recognizing this recent example of our commitment to customer-centric solutions, Omnicell once again noted among the top 50 healthcare technology companies by the Healthcare Technology Report for a continuous focus on healthcare organizations deliver innovation that is designed to help safer, and more precise care.
Speaker #3: We believe the power of OMNICELL's products and services portfolio to support safety and efficiency across all care settings is resonating with the market, as large health systems across the country select OMNICELL during the quarter as their medication management partner.
Speaker #3: Competitive convergence during the fourth quarter of 2025 included leading health systems serving Louisiana, Mississippi, a large Texas-based academic health system, and a New England integrated health delivery network, all of whom had indicated that they plan to leverage OMNICELL's central pharmacy automation, point of care dispensing solutions, and OMNICELL's inventory optimization service in an effort to drive patient safety and improve clinician and pharmacy staff efficiency.
Randall Lipps: Competitive convergence during Q4 2025 included leading health systems serving Louisiana, Mississippi, a large Texas-based academic health system, and a New England integrated health delivery network, all of whom have indicated that they plan to leverage Omnicell's central pharmacy automation, point of care dispensing solutions, and Omnicell's inventory optimization service, in an effort to drive patient safety, improve clinician and pharmacy staff efficiency, and support and optimize pharmacy supply chain. This was also another strong quarter for our point of care solutions, including XT Extend, which has helped to drive significant wins across the US and Canada, including leading health systems in Western New York and Honolulu, Hawaii, along with Canadian providers in British Columbia and Vancouver.
Randall Lipps: Competitive convergence during Q4 2025 included leading health systems serving Louisiana, Mississippi, a large Texas-based academic health system, and a New England integrated health delivery network, all of whom have indicated that they plan to leverage Omnicell's central pharmacy automation, point of care dispensing solutions, and Omnicell's inventory optimization service, in an effort to drive patient safety, improve clinician and pharmacy staff efficiency, and support and optimize pharmacy supply chain. This was also another strong quarter for our point of care solutions, including XT Extend, which has helped to drive significant wins across the US and Canada, including leading health systems in Western New York and Honolulu, Hawaii, along with Canadian providers in British Columbia and Vancouver.
Speaker #3: And support and optimize pharmacy supply chain. was also another strong This quarter for our point of care solutions, including XT Extend, the US and Canada, which has helped to drive significant wins across including leading health systems in Western New York, and Honolulu, Hawaii.
Speaker #3: Along with Canadian providers in British Columbia, and Vancouver. During the fourth quarter, the Department of Veteran Affairs selected OMNICELL's point of care dispensing and IV workflow solutions to support medication management at a number of hospitals across their network.
Randall Lipps: During Q4, the Department of Veterans Affairs selected Omnicell's point of care dispensing and IV workflow solutions to support medication management at a number of hospitals across their network. As we look at the broader economic environment influencing customers' capital decisions, we are encouraged by early reports from publicly traded health systems and industry reports, which suggest increasing patient volumes and improving financial performance. While hospital fundamentals have been strong, some potential uncertainty still exists, particularly around regulations and tariffs. Nonetheless, I'm excited by the momentum we have coming out of 2025, driven by our commitment to empowering autonomous medication management. As hospitals and health systems continue to navigate the dynamic cost and regulatory environment, we remain dedicated to our mission to be their most trusted partner, helping empower them to achieve better patient outcomes, lower costs, and improve staff efficiency.
Randall Lipps: During Q4, the Department of Veterans Affairs selected Omnicell's point of care dispensing and IV workflow solutions to support medication management at a number of hospitals across their network. As we look at the broader economic environment influencing customers' capital decisions, we are encouraged by early reports from publicly traded health systems and industry reports, which suggest increasing patient volumes and improving financial performance. While hospital fundamentals have been strong, some potential uncertainty still exists, particularly around regulations and tariffs. Nonetheless, I'm excited by the momentum we have coming out of 2025, driven by our commitment to empowering autonomous medication management. As hospitals and health systems continue to navigate the dynamic cost and regulatory environment, we remain dedicated to our mission to be their most trusted partner, helping empower them to achieve better patient outcomes, lower costs, and improve staff efficiency.
Speaker #3: As we look at the broader economic environment influencing customers' capital decisions, we are encouraged by early reports from publicly traded health systems and industry reports which suggest increasing patient volumes and improving financial performance.
Speaker #3: While hospital fundamentals have been strong, some potential uncertainty still exists particularly around regulations and tariffs. Nonetheless, I'm excited by the momentum we have coming out of 2025.
Speaker #3: Driven by our commitment to management. As hospitals and empowering autonomous medication health systems continue to navigate the dynamic cost and regulatory environment, we remain dedicated to our mission to be their most trusted partner.
Speaker #3: Helping empower them to achieve better patient outcomes, lower costs, and improve staff efficiency. Now, at this point, I'd like to turn the call over to our Chief Financial Officer, Baird Radford, for a review of our financial
Randall Lipps: Now, at this point, I'd like to turn the call over to our Chief Financial Officer, Baird Radford, for a review of our financial results. Baird?
Randall Lipps: Now, at this point, I'd like to turn the call over to our Chief Financial Officer, Baird Radford, for a review of our financial results. Baird?
Speaker #3: results. Baird? Thank
Speaker #2: you, Randall. And good morning, everyone. As we report out 2025 results and look forward to 2026, OMNICELL enters the new year with strong momentum anchored by a solid fourth quarter customer confidence in our business strategy, and 2025 finish and continued product roadmap.
Baird Radford: Thank you, Randall, and good morning, everyone. As we report out 2025 results and look forward to 2026, Omnicell enters the new year with strong momentum, anchored by a solid Q4 2025 finish, and continued customer confidence in our business strategy and product roadmap. For the full year 2025, we delivered bookings, annual recurring revenue, and total revenue above the midpoint of our most recently provided guidance. We believe this performance reflects resilient customer demand and solid execution across our business. We also ended 2025 with the successful introduction of Titan XT at ASHP in early December. The initial response from customers has been positive, which we believe validates both the introduction, timing, and the strategic importance of this next generation automated dispensing platform.
Baird Radford: Thank you, Randall, and good morning, everyone. As we report out 2025 results and look forward to 2026, Omnicell enters the new year with strong momentum, anchored by a solid Q4 2025 finish, and continued customer confidence in our business strategy and product roadmap. For the full year 2025, we delivered bookings, annual recurring revenue, and total revenue above the midpoint of our most recently provided guidance. We believe this performance reflects resilient customer demand and solid execution across our business. We also ended 2025 with the successful introduction of Titan XT at ASHP in early December. The initial response from customers has been positive, which we believe validates both the introduction, timing, and the strategic importance of this next generation automated dispensing platform.
Speaker #2: For the full year 2025, we delivered bookings, annual recurring revenue, and total revenue above the midpoint of our most recently provided guidance. We believe this performance reflects resilient customer demand and solid execution across our business.
Speaker #2: We also ended 2025 with the successful introduction of Titan XT at ASHP in early December. The initial response from customers has been both the introduction timing and the strategic importance of this next generation automated dispensing platform.
Baird Radford: Titan XT, powered by our cloud-based OmniSphere platform, is designed to bring enterprise-wide visibility, centralized inventory management, guided workflows, and a modern infrastructure that is engineered to support the shift toward autonomous medication management... and reinforces our confidence in the potential multi-year product refresh opportunity ahead. Additionally, customers appear to be appreciating the optionality created by our flexible financing options and are recognizing the innovation embedded in our product roadmap. These dynamics, combined with the early signals we are seeing in pipeline activity, should position us well as we continue to advance towards sustainable, profitable growth in 2026 and beyond. Now moving to our Q4 2025 results. Total revenue was $314 million, representing an increase of 2% from the fourth quarter of 2024, and an increase of 1% compared to the previous quarter.
Baird Radford: Titan XT, powered by our cloud-based OmniSphere platform, is designed to bring enterprise-wide visibility, centralized inventory management, guided workflows, and a modern infrastructure that is engineered to support the shift toward autonomous medication management... and reinforces our confidence in the potential multi-year product refresh opportunity ahead. Additionally, customers appear to be appreciating the optionality created by our flexible financing options and are recognizing the innovation embedded in our product roadmap. These dynamics, combined with the early signals we are seeing in pipeline activity, should position us well as we continue to advance towards sustainable, profitable growth in 2026 and beyond. Now moving to our Q4 2025 results. Total revenue was $314 million, representing an increase of 2% from the fourth quarter of 2024, and an increase of 1% compared to the previous quarter.
Speaker #2: XT, powered by our Titan cloud-based OMNISPHERE platform, is designed to bring enterprise-wide visibility, centralized inventory management, guided workflows, and a modern infrastructure that is engineered to support the shift toward autonomous medication management and reinforces our confidence in the potential multi-year product refresh opportunity ahead.
Speaker #2: Additionally, customers appear to be appreciating the optionality created by our flexible financing options. And are recognizing the innovation embedded in our product roadmap. These dynamics combined with the early signals we are seeing in pipeline activity should position us well as we continue to advance towards sustainable, profitable growth in 2026 and beyond.
Speaker #2: Now, moving to our fourth quarter 2025 results. Total revenue was $314 million, representing an increase of 2% from the fourth quarter of 2024 and an increase of 1% compared to the previous quarter.
Speaker #2: Fourth quarter 2025 product revenue was $180 million, representing a decrease of 1% compared to the fourth quarter of 2024 and an increase of 1% over the previous quarter.
Baird Radford: Q4 2025 product revenue was $180 million, representing a decrease of 1% compared to Q4 2024, and an increase of 1% over the previous quarter. Service revenue for Q4 2025 was $134 million, which increased 8% from Q4 2024, and increased 1% over the previous quarter. Non-GAAP gross margin for Q4 2025 was 43.2% compared to Q4 2024 of 47.4% and 44.2% in the previous quarter.
Baird Radford: Q4 2025 product revenue was $180 million, representing a decrease of 1% compared to Q4 2024, and an increase of 1% over the previous quarter. Service revenue for Q4 2025 was $134 million, which increased 8% from Q4 2024, and increased 1% over the previous quarter. Non-GAAP gross margin for Q4 2025 was 43.2% compared to Q4 2024 of 47.4% and 44.2% in the previous quarter. Our Q4 2025 GAAP earnings per share was a loss of $0.05 per share, compared to a profit of $0.34 per share in the Q4 2024, and a profit of $0.12 per share in the previous quarter. Our Q4 2025 non-GAAP earnings per share was $0.40, compared with $0.60 per share in the Q4 2024, and $0.51 per share in the previous quarter. Q4 2025 non-GAAP EBITDA was $37 million, compared with $46 million in the Q4 2024, and $41 million in the previous quarter.
Speaker #2: Service revenue for the fourth quarter of 2025 was $134 million, which increased 8% from the fourth quarter of 2024 and increased 1% over the previous quarter.
Speaker #2: Non-GAAP gross margin for the fourth quarter of 2025 was 43.2%, compared to the fourth quarter of 2024 at 47.4%, and 44.2% in the previous quarter.
Speaker #2: Our fourth quarter 2025 GAAP earnings per share was a loss of $0.05 per share compared to a profit of $34 per share in the fourth quarter of $0.12 per share in the previous 2024 and a profit of quarter.
Baird Radford: Our Q4 2025 GAAP earnings per share was a loss of $0.05 per share, compared to a profit of $0.34 per share in the Q4 2024, and a profit of $0.12 per share in the previous quarter. Our Q4 2025 non-GAAP earnings per share was $0.40, compared with $0.60 per share in the Q4 2024, and $0.51 per share in the previous quarter. Q4 2025 non-GAAP EBITDA was $37 million, compared with $46 million in the Q4 2024, and $41 million in the previous quarter. Moving on to the balance sheet. Our cash and cash equivalents totaled $197 million as of 31 December 2025, compared to $369 million as of 31 December 2024.
Speaker #2: Our fourth quarter 2025 non-GAAP earnings per share was $0.40 compared with the fourth quarter of $0.60 per share in
Speaker #1: 2024 . $0.51 per share in the And quarter previous . Fourth quarter EBITDA was fourth compared with $37 million , quarter 46 million of 2024 .
Speaker #1: in the EBITDA Five non-GAAP was 37 million , compared 46 million in the with fourth quarter of 2020 . Four previous and quarter Moving on to .
Baird Radford: Moving on to the balance sheet. Our cash and cash equivalents totaled $197 million as of 31 December 2025, compared to $369 million as of 31 December 2024. As a reminder, the year-over-year decrease reflects the repayment of debt with a principal amount of $175 million that matured in September 2025, and the repurchase of approximately $78 million of our common stock during 2025. The company continues to generate solid free cash flow, with Q4 2025 free cash flow of $18 million, compared to Q4 2024 of $43 million, and $14 million in the previous quarter. In terms of accounts receivable, days sales outstanding for Q4 2025 were 65 days, which compares to 77 days in Q4 2024 and 74 days in the previous quarter. Inventories as of 31 December 2025 were $101 million, compared to $89 million at 31 December 2024, and $107 million at 30 September 2025.
Speaker #1: the 41 million in the sheet , our cash and cash totaled balance 197 million as of December 31st , 2025 , compared to 369 million as of December 31st , 2024 .
Baird Radford: As a reminder, the year-over-year decrease reflects the repayment of debt with a principal amount of $175 million that matured in September 2025, and the repurchase of approximately $78 million of our common stock during 2025. The company continues to generate solid free cash flow, with Q4 2025 free cash flow of $18 million, compared to Q4 2024 of $43 million, and $14 million in the previous quarter. In terms of accounts receivable, days sales outstanding for Q4 2025 were 65 days, which compares to 77 days in Q4 2024 and 74 days in the previous quarter. Inventories as of 31 December 2025 were $101 million, compared to $89 million at 31 December 2024, and $107 million at 30 September 2025.
Speaker #1: As a the year year over reminder , reflects the repayment of debt with a principal amount of 175 million that matured in and the repurchase of September 2025 , approximately 78 million of our common stock during 2025 .
Speaker #1: The continues company to solid free cash flow with quarter 2025 free cash flow of 18 million fourth quarter 2024 compared to of previous 43,000,014 million in the quarter .
Speaker #1: terms of accounts In receivable , day sales outstanding for fourth quarter of 2025 were 65 days , which compares to the 77 in the days 2020 .
Speaker #1: fourth quarter of Four and 74 days in the previous quarter . Inventories . of December 31st , As 2025 101 million , were compared 89 million at to December 31st , 2020 .
Baird Radford: Turning now to a review of our full year 2025 results. Product bookings for full year 2025 were $535 million, landing above the midpoint of our previously provided guidance of $500 to $550 million, and compared to product bookings of $558 million in 2024. Product backlog as of December 31, 2025, was $640 million, down 1% compared to our 2024 exit. Our 2025 exit backlog includes $435 million, categorized as short-term, which we anticipate converting into revenue in 2026. Exiting 2025, annual recurring revenue, or ARR, was $636 million, compared to our previously provided guidance of $610 to $630 million, and compared to ARR of $580 million exiting 2024.
Baird Radford: Turning now to a review of our full year 2025 results. Product bookings for full year 2025 were $535 million, landing above the midpoint of our previously provided guidance of $500 to $550 million, and compared to product bookings of $558 million in 2024. Product backlog as of December 31, 2025, was $640 million, down 1% compared to our 2024 exit. Our 2025 exit backlog includes $435 million, categorized as short-term, which we anticipate converting into revenue in 2026. Exiting 2025, annual recurring revenue, or ARR, was $636 million, compared to our previously provided guidance of $610 to $630 million, and compared to ARR of $580 million exiting 2024. Our full year 2025 total revenue was $1.185 billion, in the upper range of our previously issued guidance of $1.177 to 1.187 billion, and compared to $1.112 billion in 2024.
Speaker #1: For and 107 million at September 30th , 2025 . Turning now to a our full review of year 2025 results . Product full year 2025 were for landing above the midpoint of our previously guidance of bookings 500 to 550 million .
Speaker #1: compared to bookings of And 558,000,000 in 2024 , of backlog as December 31st , product 2025 was 640 million , 1% down our 2024 exit .
Speaker #1: to Our compared backlog 435 million categorized includes short term , which we anticipate converting into revenue in 2026 . Exiting recurring 2025 . Annual revenue or are was 636 million .
Speaker #1: to our Compared provided guidance of 610 to 630 million , and compared AR to of 580 million , exiting 2024 . full year 2025 total revenue was upper range of 1.185 billion in the our issued previously guidance 1.177 to 1.187 billion .
Baird Radford: Our full year 2025 total revenue was $1.185 billion, in the upper range of our previously issued guidance of $1.177 to 1.187 billion, and compared to $1.112 billion in 2024. Our full year 2025 product revenue was $666 million, compared to $631 million in 2024. Our full year 2025 service revenue was $519 million compared to $482 million in 2024. Within the full year 2025 service revenues, technical services revenue was $260 million, and SaaS and expert service revenue was $259 million. Our full year 2025 GAAP earnings per share was $0.04 per share, compared to $0.27 in 2024.
Baird Radford: Our full year 2025 product revenue was $666 million, compared to $631 million in 2024. Our full year 2025 service revenue was $519 million compared to $482 million in 2024. Within the full year 2025 service revenues, technical services revenue was $260 million, and SaaS and expert service revenue was $259 million. Our full year 2025 GAAP earnings per share was $0.04 per share, compared to $0.27 in 2024. Our full year 2025 non-GAAP earnings per share was $1.62 per share, compared to $1.71 in 2024. For the full year 2025, non-GAAP EBITDA was $140 million, compared to $136 million in 2024.
Speaker #1: And compared to of 1.112 billion in 2024 , our full year 2025 product revenue was 666 million , compared to 631,000,000 in 2024 .
Speaker #1: Our full year 2025 service revenue was $519 million, compared to $482 million in 2024. Within the full year revenues, technical services revenue was $260 million, and SaaS expert and service revenue was $259 million.
Speaker #1: Our full 2025 GAAP year earnings per share was $0.04 per compared share , to $0.27 in 2024 . Our full year 2025 earnings share non-GAAP was $1.62 per share , compared to per 2020 .
Baird Radford: Our full year 2025 non-GAAP earnings per share was $1.62 per share, compared to $1.71 in 2024. For the full year 2025, non-GAAP EBITDA was $140 million, compared to $136 million in 2024. Before we move on to 2026 guidance, I'd like to walk through some of the key insights from our Q4 2025 and full year 2025 performance. For full year 2025, we delivered product bookings of $535 million, which is in the upper half of our most recently provided guidance, and we exited 2025 with a product backlog of $640 million. Q4 2025 closeout was driven by XT orders, and as expected, there were no Titan XT orders placed in 2025.
Speaker #1: For for the full 2025 , year non-GAAP EBITDA was 140 million , compared 136,000,000 in 2020 . For to . Before we move on to 2026 guidance , I'd like to walk through some of the key from insights our fourth quarter 2025 and full year 2025 performance year 2025 , we delivered product of bookings .
Baird Radford: Before we move on to 2026 guidance, I'd like to walk through some of the key insights from our Q4 2025 and full year 2025 performance. For full year 2025, we delivered product bookings of $535 million, which is in the upper half of our most recently provided guidance, and we exited 2025 with a product backlog of $640 million. Q4 2025 closeout was driven by XT orders, and as expected, there were no Titan XT orders placed in 2025. The state of our competitive pipeline exiting 2025 continues to give us confidence that our focus on providing reliable products, while at the same time advancing our platform innovation through OmniSphere, is resonating with our customers. We delivered $314 million of total revenue in the fourth quarter of 2025, and $1.185 billion for the full year 2025, with both results landing in the upper end of our most recently provided guidance. As expected, the movement in total revenue from Q3 to Q4 was more linear than in prior years, as we continue to see the benefits from improved customer scheduling and coordination, leading to more predictable connected device implementations.
Speaker #1: 535 million , which For full is in the upper half of our recently most provided And guidance . we exited product 2025 with a backlog of 640 million .
Speaker #1: Fourth quarter 2025 closeout driven by was XT orders and as expected , there were no tight XT orders placed in 2025 . The state of our competitive pipeline exiting continues to give us confidence that our focus providing reliable on products while at the same time advancing our platform innovation through Omnisphere resonating with our customers is .
Baird Radford: The state of our competitive pipeline exiting 2025 continues to give us confidence that our focus on providing reliable products, while at the same time advancing our platform innovation through OmniSphere, is resonating with our customers. We delivered $314 million of total revenue in the fourth quarter of 2025, and $1.185 billion for the full year 2025, with both results landing in the upper end of our most recently provided guidance. As expected, the movement in total revenue from Q3 to Q4 was more linear than in prior years, as we continue to see the benefits from improved customer scheduling and coordination, leading to more predictable connected device implementations. During the fourth quarter of 2025, we also saw solid performance in our consumables and specialty offerings.
Speaker #1: We delivered 314 million of revenue in the quarter of 2025 and 1.185 billion for the full 2025 , year results landing in the upper end of our most recently provided guidance as expected , the movement in total revenue from Q3 to Q4 was more linear than in prior years .
Speaker #1: continue to As we see the improved from benefits scheduling customer and coordination , leading to more predictable connected device implementations . fourth quarter During the we also saw solid performance in our consumables and specialty offerings .
Baird Radford: During the fourth quarter of 2025, we also saw solid performance in our consumables and specialty offerings. Q4 2025 non-GAAP gross margin was 43.2%, reflecting a one percentage point decline compared to Q3, driven by declines in product margins, partially offset by improvements in service margins. Compared to Q4 2024, non-GAAP gross margins declined by approximately four percentage points, which primarily reflects the impact of $7 million of tariff costs in Q4 2025, along with shifts in product and customer mix in the quarter. Going a layer deeper into non-GAAP gross margins, compared to Q3 2025, product margins in Q4 2025 reflect shifts in product and customer mix associated with connected device implementations completed in the quarter. As we shared our outlook during our Q3 earnings call, service margins for Q4 2025 improved, driven by the progress we made in Q3 on software upgrades for our customers. Moving on to operating expenses, the Q4 2025 increase versus Q3 largely reflects costs associated with the American Society of Health-System Pharmacists annual meeting in December, where we announced our new automated dispensing system platform, Titan XT.
Baird Radford: Q4 2025 non-GAAP gross margin was 43.2%, reflecting a one percentage point decline compared to Q3, driven by declines in product margins, partially offset by improvements in service margins. Compared to Q4 2024, non-GAAP gross margins declined by approximately four percentage points, which primarily reflects the impact of $7 million of tariff costs in Q4 2025, along with shifts in product and customer mix in the quarter. Going a layer deeper into non-GAAP gross margins, compared to Q3 2025, product margins in Q4 2025 reflect shifts in product and customer mix associated with connected device implementations completed in the quarter.
Speaker #1: Fourth quarter 2025 non-GAAP gross margin 43.2% , was reflecting a one percentage point decline compared to the third quarter , driven by declines in product margins , partially offset by improvements in service margins compared to the fourth quarter of 2020 .
Speaker #1: . For non-GAAP gross margins declined by approximately four percentage points , which primarily reflects the impact of $7 million of tariff costs in the fourth quarter of 2025 , along with product and customer in the mix shifts in quarter .
Speaker #1: Going a layer deeper non-GAAP gross into compared to quarter of 2025 , product margins in the fourth quarter of 2020 . Five reflect shifts in product and customer mix associated with connected device implementations completed in the quarter .
Baird Radford: As we shared our outlook during our Q3 earnings call, service margins for Q4 2025 improved, driven by the progress we made in Q3 on software upgrades for our customers. Moving on to operating expenses, the Q4 2025 increase versus Q3 largely reflects costs associated with the American Society of Health-System Pharmacists annual meeting in December, where we announced our new automated dispensing system platform, Titan XT. Additional costs incurred during Q4 funded opportunistic investments in customer experience and human capital initiatives. We believe these investments will benefit us as we transition from XT to Titan XT and OmniSphere. Despite Q4 total revenue landing at the higher end of our guidance, Q4 2025 non-GAAP EBITDA was at the lower end of our guidance.
Speaker #1: As we shared outlook our during our third quarter call earnings . Service margins for the fourth quarter of 2025 improved , driven by the progress we made in the third quarter .
Speaker #1: On software upgrades for our customers . Moving on to operating expenses , the fourth quarter of 2025 increase versus the third quarter , largely costs reflects associated with the American Society of Hospital Pharmacists annual meeting in December , where we announced our automated new dispensing system , Titan platform XT .
Baird Radford: Additional costs incurred during Q4 funded opportunistic investments in customer experience and human capital initiatives. We believe these investments will benefit us as we transition from XT to Titan XT and OmniSphere. Despite Q4 total revenue landing at the higher end of our guidance, Q4 2025 non-GAAP EBITDA was at the lower end of our guidance. Q4 non-GAAP EBITDA reflects the investments highlighted in my operating expense remarks, which we believe were important to support the long-term health of the business. As we previewed on our Q2 2025 earnings call, you will see that our non-GAAP earnings per share results for the full year 2025 reflect an approximately $0.21 per share headwind compared to 2024, due to the reduction in interest income in 2025, resulting from our repurchase of a significant portion of outstanding convertible senior notes in the Q4 2024. Now turning to 2026 guidance. For the Q1 2026, we're providing the following guidance:...
Speaker #1: Additional costs incurred during the fourth quarter funded opportunistic investments in customer experience and human capital initiatives . We these investments will believe benefit us as we transition from XT to Titan XT Omnisphere and .
Speaker #1: Despite fourth quarter total revenue landing at the higher end of our guidance , fourth quarter 2025 non-GAAP EBITDA was at the lower our guidance .
Baird Radford: Q4 non-GAAP EBITDA reflects the investments highlighted in my operating expense remarks, which we believe were important to support the long-term health of the business. As we previewed on our Q2 2025 earnings call, you will see that our non-GAAP earnings per share results for the full year 2025 reflect an approximately $0.21 per share headwind compared to 2024, due to the reduction in interest income in 2025, resulting from our repurchase of a significant portion of outstanding convertible senior notes in the Q4 2024. Now turning to 2026 guidance. For the Q1 2026, we're providing the following guidance:...
Speaker #1: non-GAAP EBITDA end of the investments in my operating highlighted expense which we remarks , believe were important to support the long term health of the business as we previewed on our second quarter 2025 earnings call .
Speaker #1: You will see non-GAAP earnings per that our share results for the full 2025 year reflect an $0.21 approximately per share headwind , compared to 2024 , due to the reduction in income interest in 2025 resulting our from significant portion of outstanding convertible senior notes in the fourth quarter of 2024 .
Speaker #1: Now , turning to 2026 guidance for the first quarter of 2026 . We're providing the following guidance . We expect quarter 2026 total revenue first to be between 300 and 310 million , with product revenue anticipated to be between 171 and 176 million , and revenue expected to service be between 129 and We 134 million .
Baird Radford: We expect Q1 2026 total revenue to be between $300 and $310 million, with product revenue anticipated to be between $171 and $176 million, and service revenue expected to be between $129 and $134 million. We expect Q1 2026 non-GAAP EBITDA to be between $27 and $33 million, and non-GAAP earnings per share to be between $0.26 and $0.36 per share. As a reminder, the first quarter normally includes some seasonally higher expenses, including payroll taxes and benefits reset. For full year 2026, we are providing the following guidance. We anticipate full year 2026 product bookings to be in the range of $510 to $560 million.
Baird Radford: We expect Q1 2026 total revenue to be between $300 and $310 million, with product revenue anticipated to be between $171 and $176 million, and service revenue expected to be between $129 and $134 million. We expect Q1 2026 non-GAAP EBITDA to be between $27 and $33 million, and non-GAAP earnings per share to be between $0.26 and $0.36 per share. As a reminder, the first quarter normally includes some seasonally higher expenses, including payroll taxes and benefits reset. For full year 2026, we are providing the following guidance. We anticipate full year 2026 product bookings to be in the range of $510 to $560 million. For full year 2026, we expect total revenue to be in the range of $1.215 to 1.255 billion.
Speaker #1: first expect quarter 2026 non-GAAP to be between 27 and 33 million , and non-GAAP earnings per share to be between 26 and share $0.36 per .
Speaker #1: reminder , As a the first quarter normally includes some seasonally higher expenses , including payroll taxes and benefits reset for full year 2026 .
Speaker #1: We are providing the following guidance . We anticipate full year 2026 product bookings to be in the range of 510 to 560 million for full year 2026 .
Baird Radford: For full year 2026, we expect total revenue to be in the range of $1.215 to 1.255 billion. Full year 2026 product revenue is expected to be in the range of $690 to 710 million, with service revenue expected to be in the range of $525 to 545 million. Year-end 2026 ARR is expected to be in the range of $680 to 700 million. Non-GAAP EBITDA for the full year 2026 is expected to be in the range of $145 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.
Speaker #1: We total revenue to be in the range of full 1.215 to 1.255 billion year , 2026 product revenue is expected to be in the range of with service 690 to 710 million , to be in expected the range of 525 to 545 million year 2026 .
Baird Radford: Full year 2026 product revenue is expected to be in the range of $690 to 710 million, with service revenue expected to be in the range of $525 to 545 million. Year-end 2026 ARR is expected to be in the range of $680 to 700 million. Non-GAAP EBITDA for the full year 2026 is expected to be in the range of $145 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. This guidance includes our current estimate of tariff costs hitting our P&L in 2026 of approximately $15 million. We recognize that the regulatory environment surrounding tariffs remains fluid, and our guidance reflects tariffs in place as of today. Our guidance also includes an estimated effective tax rate of approximately 13% in our non-GAAP earnings per share guidance.
Speaker #1: RR is expected to be in the range end of 680 to 700 million . non-GAAP EBITDA for the full year 2026 is expected to be in the range of 145 to 160 million , in full year 2026 .
Speaker #1: non-GAAP earnings per is share expected to be in the range of $1.65 to $1.85 per share . This guidance includes current our estimate tariff of costs our hitting PNL in 2026 , of approximately 15 million .
Baird Radford: This guidance includes our current estimate of tariff costs hitting our P&L in 2026 of approximately $15 million. We recognize that the regulatory environment surrounding tariffs remains fluid, and our guidance reflects tariffs in place as of today. Our guidance also includes an estimated effective tax rate of approximately 13% in our non-GAAP earnings per share guidance. Before concluding my prepared remarks, I would like to share a bit of additional context that informed the guidance that we are providing today. Our full year 2026 product bookings guidance was developed in recognition of where we are in the XT life cycle. As we shared in December with the announcement of Titan XT and the OmniSphere platform, 2026 is the 10th year of use for our initial cohort of XT cabinets, which were first shipped in 2017.
Speaker #1: We recognize that the regulatory environment surrounding tariffs guidance remains fluid, and reflects tariffs and our place as of today. Our guidance also includes an estimated effective tax rate of approximately 13% for our non-GAAP earnings per share guidance. In concluding my prepared remarks, I would also like to share a bit of additional context on the guidance that we are providing today.
Baird Radford: Before concluding my prepared remarks, I would like to share a bit of additional context that informed the guidance that we are providing today. Our full year 2026 product bookings guidance was developed in recognition of where we are in the XT life cycle. As we shared in December with the announcement of Titan XT and the OmniSphere platform, 2026 is the 10th year of use for our initial cohort of XT cabinets, which were first shipped in 2017. As we transition from the late stage of XT hardware to the early stage of Titan XT hardware, we also recognize that health system capital budget approval cycles tend to range from several quarters to a few years. Therefore, it was important for us to announce Titan XT in 2025 to give our customers sufficient time to incorporate our new product offering into their planning cycles and prepare for implementations. As for the potential size and pacing of the hardware replacement cycle, we shared with investors in December that we estimate this replacement cycle opportunity to be in excess of $2.5 billion.
Speaker #1: Our full year 2026 product bookings guidance was where we recognition of are developed and in the XT life cycle . As we shared in December with the announcement of Titan Ext and the Omnisphere platform , 2026 is 10th year of the use for our initial cohort of cabinets , ext first shipped were which in As we 2017 .
Baird Radford: As we transition from the late stage of XT hardware to the early stage of Titan XT hardware, we also recognize that health system capital budget approval cycles tend to range from several quarters to a few years. Therefore, it was important for us to announce Titan XT in 2025 to give our customers sufficient time to incorporate our new product offering into their planning cycles and prepare for implementations. As for the potential size and pacing of the hardware replacement cycle, we shared with investors in December that we estimate this replacement cycle opportunity to be in excess of $2.5 billion. Regarding pacing of product bookings and product revenue, it is important to balance considerations such as our current XT installed base being not as old as the G-series installed base was when we announced XT, creating a near-term potential headwind.
Speaker #1: transition from the late stage of ext hardware to the early stage of Titan , ext hardware , we also recognize that health system budget capital approval cycles tend to range several from quarters to a few years .
Speaker #1: Therefore , it was important for us to announce Titan ext in give our 2025 to customers sufficient time to incorporate our new product offering into planning their and prepare for implementations .
Speaker #1: for the As potential size and the pacing of hardware replacement cycle we shared investors in with December that we estimate replacement cycle this opportunity to be in excess of $2.5 billion .
Baird Radford: Regarding pacing of product bookings and product revenue, it is important to balance considerations such as our current XT installed base being not as old as the G-series installed base was when we announced XT, creating a near-term potential headwind. Additionally, it is important to consider the potential customer benefits of the software workflows, as well as the data and AI-enabled analytics enhancements that are expected to be offered in our OmniSphere platform, creating a potential tailwind. For these various reasons, our 2026 product bookings guidance reflects a midpoint in a similar range to our reported actual 2025 product bookings. As you look to build out your P&L models for 2026, I will remind you that we shared with investors in December that we anticipate 2026 incremental revenues from Titan XT to be modest. We expect Titan XT to be available for shipment in the second half of 2026, and the improved software functionality in OmniSphere to be available in the first half of 2027.
Speaker #1: Regarding of product bookings and product revenue , it is important to balance pacing considerations such as our XT installed current base being not as old as the G installed series base was XT announced creating when we a near-term potential headwind .
Baird Radford: Additionally, it is important to consider the potential customer benefits of the software workflows, as well as the data and AI-enabled analytics enhancements that are expected to be offered in our OmniSphere platform, creating a potential tailwind. For these various reasons, our 2026 product bookings guidance reflects a midpoint in a similar range to our reported actual 2025 product bookings. As you look to build out your P&L models for 2026, I will remind you that we shared with investors in December that we anticipate 2026 incremental revenues from Titan XT to be modest. We expect Titan XT to be available for shipment in the second half of 2026, and the improved software functionality in OmniSphere to be available in the first half of 2027.
Speaker #1: it is Additionally , to important consider the potential customer of benefits the software as the as well data and workflows enabled analytics enhancements that are expected offered in to be Omnisphere our platform , creating a potential tailwind for these various reasons are 2026 product bookings guidance reflects a midpoint in a similar range to reported our actual 2025 product bookings .
Speaker #1: you look out your to build As PNL models for 2026 , I will remind you that we shared with in that we December 2026 anticipate revenues Titan incremental from be modest .
Speaker #1: XT We Titan to be available for shipment in the second half of 2026 , and improved software functionality the in Omnisphere to available the be first half in of 2027 .
Baird Radford: Additionally, we anticipate that the increased level of revenue linearity that we experienced in the later quarters of 2025 will likely continue through 2026, which should result in a 2026 quarter-over-quarter revenue pattern that is flatter in absolute dollars than our past historical patterns. Moving on to our cost structure. Omnicell's management team continues to be focused on balancing the importance of making investments for the benefit of the long-term health of our business, with our commitment to expanding profitability for investors. The midpoint and high end of our 2026 guidance reflect non-GAAP EBITDA expansion at a rate of approximately two times the rate of total revenue growth. At the same time, this guidance reflects anticipated investments to ready Titan XT and OmniSphere platform for commercial adoption, as well as advance other enhancements to the customer experience.
Baird Radford: Additionally, we anticipate that the increased level of revenue linearity that we experienced in the later quarters of 2025 will likely continue through 2026, which should result in a 2026 quarter-over-quarter revenue pattern that is flatter in absolute dollars than our past historical patterns. Moving on to our cost structure. Omnicell's management team continues to be focused on balancing the importance of making investments for the benefit of the long-term health of our business, with our commitment to expanding profitability for investors. The midpoint and high end of our 2026 guidance reflect non-GAAP EBITDA expansion at a rate of approximately two times the rate of total revenue growth. At the same time, this guidance reflects anticipated investments to ready Titan XT and OmniSphere platform for commercial adoption, as well as advance other enhancements to the customer experience.
Speaker #1: Additionally , we anticipate that the increased level of revenue linearity that we experienced in the quarters later of 2025 will likely continue through which should result in 2026 , over a quarter revenue .
Speaker #1: Additionally , we anticipate that the increased level of revenue linearity that we experienced in the quarters later of 2025 will likely continue through which should result in 2026 , over a quarter revenue . pattern is 2026 quarter flatter in absolute That dollars than our past historical patterns .
Speaker #1: Moving on to our cost structure , OMNICELL, INC. management team continues to be focused on balancing importance the of making investments for the benefit of the long term health of our business .
Speaker #1: commitment to With our profitability expanding for investors , the midpoint and high end of our 2026 guidance reflect non-GAAP EBITDA expansion at a two times rate of the rate of total revenue growth same .
Speaker #1: At the time , reflects investments anticipated this guidance ready to Titan XT and Omnisphere platform for commercial As well as advance other enhancements to the customer experience .
Baird Radford: Also included in our 2026 guidance is spending associated with the transformation of our back office systems and workflows, including a multi-year update and refresh of our enterprise resource planning or ERP systems, which are coming off vendor support in 2027 and will result in approximately $10 million of associated expenses in 2026. As I reflect on 2025, I'm grateful for the level of commitment and execution by the team here at Omnicell. We delivered a solid Q4 and a strong closeout of 2025. As I look ahead, I'm excited to have joined the Omnicell team, and I'm optimistic about the future and positive feedback that we have received from health systems following our announcement of Titan XT and the OmniSphere platform.
Baird Radford: Also included in our 2026 guidance is spending associated with the transformation of our back office systems and workflows, including a multi-year update and refresh of our enterprise resource planning or ERP systems, which are coming off vendor support in 2027 and will result in approximately $10 million of associated expenses in 2026. As I reflect on 2025, I'm grateful for the level of commitment and execution by the team here at Omnicell. We delivered a solid Q4 and a strong closeout of 2025. As I look ahead, I'm excited to have joined the Omnicell team, and I'm optimistic about the future and positive feedback that we have received from health systems following our announcement of Titan XT and the OmniSphere platform.With customers responding positively to our continued emphasis on innovation and execution against our product roadmap, we believe we are well-positioned to drive sustainable, profitable growth in 2026 and beyond. We would now like to open the call for questions. Operator?
Speaker #1: Also included in our 2026 guidance is associated with the transformation of our back office systems and workflows a , including multiyear update and refresh of our enterprise resource planning ERP systems , which are coming off vendor support in will 2027 and approximately 10 million of associated result in expenses in 2026 .
Speaker #1: As I reflect on 2025 , I am the level commitment and of grateful for the execution by team here at Omnicell . We delivered a solid quarter and a fourth strong out of 2025 .
Speaker #1: I look ahead, as I've joined the Omnicell team, and I'm optimistic about the future and excited about the positive feedback that we have received from Health Systems.
Baird Radford: With customers responding positively to our continued emphasis on innovation and execution against our product roadmap, we believe we are well-positioned to drive sustainable, profitable growth in 2026 and beyond. We would now like to open the call for questions. Operator?
Speaker #1: Following our announcement of Titan XT and the Omnisphere platform with customers responding close positively to continued our emphasis on innovation and execution against our roadmap , we believe we are well positioned to drive sustainable , profitable in 2026 and beyond .
Operator: We will now begin the question-and-answer session. If you would like to ask a question at this time, simply press star followed by the number one on your telephone keypad. We will pause for a brief moment to compile the Q&A roster. Our first question comes from the line of Alan Lutz with Bank of America. Alan, please go ahead.
Operator: We will now begin the question-and-answer session. If you would like to ask a question at this time, simply press star followed by the number one on your telephone keypad. We will pause for a brief moment to compile the Q&A roster. Our first question comes from the line of Alan Lutz with Bank of America. Alan, please go ahead.
Speaker #1: now like to We would open the call for questions . Operator .
Speaker #2: We will now begin the question and answer session . If you would like to ask a question at this time , simply press star , followed by the number one on your telephone keypad .
Speaker #2: Pause for a brief moment. We will compile the roster for Q&A. And our first question comes from the line of Allen Lutz, America.
Speaker #2: pause for a brief We will moment to compile the roster Q&A . And from the our first question comes line of Allen Lutz of please go Allen , with Bank ahead
[Analyst] (Bank of America): Hey, thanks. This is Dev on for Alan Lutz. Baird and Randy, you know, I just wanna step back and take a look at this products booking expectations and the cycle and just get a sense of, you know, how we should be viewing this. You know, I think you mentioned the G-series maturity versus where XT stands today. I guess, you know, as you look at the Titan cycle and the ramp over the next couple of years, is it sensible to take, you know, the typical 8- to 10-year replacement cycle and consider how you lap placements of XT in 2017 to 2020? Or is there, you know, some sort of other variables that make this ramp a little different?
Dev Sharma: Hey, thanks. This is Dev on for Alan Lutz. Baird and Randy, you know, I just wanna step back and take a look at this products booking expectations and the cycle and just get a sense of, you know, how we should be viewing this. You know, I think you mentioned the G-series maturity versus where XT stands today. I guess, you know, as you look at the Titan cycle and the ramp over the next couple of years, is it sensible to take, you know, the typical 8- to 10-year replacement cycle and consider how you lap placements of XT in 2017 to 2020? Or is there, you know, some sort of other variables that make this ramp a little different?
Speaker #2: .
Speaker #2: .
Speaker #3: is . This Dave on for Allen , Baird and Randy . You know , I just want Hey , to step back and take a look at this product's booking expectations and the cycle and just get a sense of , you know , how we should be viewing this .
Speaker #3: think you You know , I the series maturity versus where stands XT today . I guess , you know , as you look at , the Titan title cycle and the ramp over the next couple of , is it sensible to take , you know , the cycle and the you lap typical 8 to 10 year consider how years placements effect in Or is 2017 to 2020 ?
[Analyst] (Bank of America): I think you mentioned that maturity of G-series as one. I would just love to get an understanding of how you're thinking about this ramp, in particular, based on kind of the internal data you have around placements in the prior cycle over the next few years, not just in 2026.
Dev Sharma: I think you mentioned that maturity of G-series as one. I would just love to get an understanding of how you're thinking about this ramp, in particular, based on kind of the internal data you have around placements in the prior cycle over the next few years, not just in 2026.
Speaker #3: sort of other there , you variables that make this ramp know , some different ? think you I mentioned that maturity of G series as would just one to get an understanding of how about this you're thinking particular , ramp in of the data you love placements in the cycle over prior the next few years , based on kind not just 2026 .
Baird Radford: Yeah, thanks for the question, Dev. I think the starting point here that's really important to keep in mind is that we believe that this refresh cycle is in excess of $2.5 billion. We continue to feel really good about that opportunity. And you laid out factors about how do you consider the XT refresh that took place as a guide. I think broadly, you're in the ballpark. I think the tricky part is always, you know, customer to customer, how do you land those? But broadly, we see a similar level of rollout over the course of, call it, the next eight or so years. So I think you're thinking about that right. Randy, anything you'd want to add?
Baird Radford: Yeah, thanks for the question, Dev. I think the starting point here that's really important to keep in mind is that we believe that this refresh cycle is in excess of $2.5 billion. We continue to feel really good about that opportunity. And you laid out factors about how do you consider the XT refresh that took place as a guide. I think broadly, you're in the ballpark. I think the tricky part is always, you know, customer to customer, how do you land those? But broadly, we see a similar level of rollout over the course of, call it, the next eight or so years. So I think you're thinking about that right. Randy, anything you'd want to add?
Speaker #4: Yeah , thanks for the
Speaker #4: Question, Dave. I think the starting point here, that's important to really keep in mind, is the belief that the refresh cycle is in this excess of $2.5 billion.
Speaker #4: We continue to feel really good about that opportunity . out And factors about you how do you laid consider XT refresh that took place as a the think broadly , guide ?
Speaker #4: I you're in the ballpark . I think tricky always , part is customer you know , to customer . How do you land those ?
Speaker #4: But broadly , we see a similar level of rollout over the course of call it the next eight , eight or so years .
Speaker #4: But broadly , we see a similar level of rollout over the course of call it the next eight , the So I thinking about that right , Randy , anything you'd add ?
Speaker #4: But broadly , we see a similar level of rollout over the course of call it the next eight , the So I thinking about that right , Randy , anything you'd think you're
Baird Radford: Yeah, I think it's a broader discussion. Obviously, when we go to see our customers, they're really excited about not just the hardware, but the platform. And to access the platform and all its capabilities, you have to be on the Titan. So that becomes the overwhelming discussion, not about how old is my hardware and how new is the new hardware? It's about all the things that we're bringing. Many of our customers are very complex organizations that have built up a large portfolio of inpatient and outpatient institutions that are complex and hard to manage. And so they really need this enterprise-level, single enterprise-level connected point where they can manage all these things in a rational manner. It's the only way they're gonna be able to manage their true costs.
Randall Lipps: Yeah, I think it's a broader discussion. Obviously, when we go to see our customers, they're really excited about not just the hardware, but the platform. And to access the platform and all its capabilities, you have to be on the Titan. So that becomes the overwhelming discussion, not about how old is my hardware and how new is the new hardware? It's about all the things that we're bringing. Many of our customers are very complex organizations that have built up a large portfolio of inpatient and outpatient institutions that are complex and hard to manage. And so they really need this enterprise-level, single enterprise-level connected point where they can manage all these things in a rational manner. It's the only way they're gonna be able to manage their true costs.
Speaker #4: want to
Speaker #5: broader as a discussion , obviously when see our we go to customers , excited about not just the they're really hardware but the platform access .
Speaker #5: And to platform and all those capabilities , you have to the Titan . becomes So that the be on overwhelming discussion , not about how old is my how how new new hardware .
Speaker #5: It's about all the things that we're bringing many of our customers are very complex organizations that have built up a large of inpatient portfolio and outpatient institutions complex and hard to that are manage .
Speaker #5: And so they really level enterprise, single enterprise level, connected point where they can manage all these things in a rational manner.
Baird Radford: So the discussion is much broader and much more enthusiastic about the platform than just the focus on the hardware. Because the platform allows us to bring in other technology solutions that we can bring in, that we can't bring in today on our current hardware. I would just say that from the trade show to now, which has only been 45 days, the top of our pipeline is full of activity, not only internally, the $2.5 billion is within our own customer set, but just the general market in general, which is even larger than that. We have engaged fairly fervently, and I think we even saw a little of that in Q4, where we had a fairly large contingent of competitive upgrades there.
Randall Lipps: So the discussion is much broader and much more enthusiastic about the platform than just the focus on the hardware. Because the platform allows us to bring in other technology solutions that we can bring in, that we can't bring in today on our current hardware. I would just say that from the trade show to now, which has only been 45 days, the top of our pipeline is full of activity, not only internally, the $2.5 billion is within our own customer set, but just the general market in general, which is even larger than that. We have engaged fairly fervently, and I think we even saw a little of that in Q4, where we had a fairly large contingent of competitive upgrades there.
Speaker #5: in a It's the only way they're going to be able manage their to true costs . And so discussion is the much broader and more much enthusiastic about the platform than just focus on the hardware .
Speaker #5: And the because the bring platform technology in other allows us to solutions that bring in we can , that we can't bring in today current on our hardware .
Speaker #5: So I would just that say the from the show to trade now , which only been has the top of our pipeline , is full of activity , not only have internally .
Speaker #5: You 2.5 billion is within our own customer set just the general market and general , which is even larger than that . We have engaged fairly fervently , and I think we even saw a little that in fourth quarter where we had a fairly large contingent of competitive upgrades there .
Baird Radford: So that momentum has started, and we believe it will continue. We're early on in the year here, and we've just introduced the product, and so I think we put out, you know, what we knew today, but I mean, it's only 45-
Randall Lipps: So that momentum has started, and we believe it will continue. We're early on in the year here, and we've just introduced the product, and so I think we put out, you know, what we knew today, but I mean, it's only 45- I don't even know, 45 business days from when we made the announcement. But the excitement has never been better. I mean, 2025 was a year of innovation. We opened up the innovation lab, we launched Titan XT, we relaunched OmniSphere at the next level. I mean, it's just excitement around here, both internally at the company and externally in the marketplace. I we couldn't be happier.
Speaker #5: So that momentum has started . And we will continue . We're early on believe it here , and we've in the just introduced the product .
Baird Radford: ... I don't even know, 45 business days from when we made the announcement. But the excitement has never been better. I mean, 2025 was a year of innovation. We opened up the innovation lab, we launched Titan XT, we relaunched OmniSphere at the next level. I mean, it's just excitement around here, both internally at the company and externally in the marketplace. I we couldn't be happier.
Speaker #5: And so I think out , you know , we put what we today . I mean , But it's knew only 40 . I don't know , 45 business from when days we made the announcement .
Speaker #5: But the excitement has been better . I mean , never 2025 was a year of innovation . We opened up the Innovation lab .
Speaker #5: We launched right We next . relaunched Omnisphere at the I mean , it's next level . just excitement around here . it's Both internally at the just company and externally in the marketplace .
[Analyst] (Bank of America): Got it. That's very helpful. And then just one last one from me. Just on, you know, there's been some right-sizing efforts over the last couple of years. As you look ahead for this Titan cycle and as well as, you know, OmniSphere and the rest of the product suite, you know, do you see a need for any incremental investments around the sales force, around clinical education, marketing, support individuals? How should we kind of think about the SG&A spend line item over the next few years, relative to, I guess, how that's grown into 2025 here?
Dev Sharma: Got it. That's very helpful. And then just one last one from me. Just on, you know, there's been some right-sizing efforts over the last couple of years. As you look ahead for this Titan cycle and as well as, you know, OmniSphere and the rest of the product suite, you know, do you see a need for any incremental investments around the sales force, around clinical education, marketing, support individuals? How should we kind of think about the SG&A spend line item over the next few years, relative to, I guess, how that's grown into 2025 here?
Speaker #5: We couldn't be, I, happier.
Speaker #3: Got very helpful . And then just one it . last That's Just on one from me . there's been . You know , efforts over the last couple of Do years .
Speaker #3: you ahead for tightening cycle some right and as well as , you know , and the Omnisphere rest of the product suite , you know , see a do you need for an incremental investments or on the sales force or on education , marketing support individuals ?
Speaker #3: Should we kind of think—how about the spend line item over the next few years relative to, I guess, how that's grown into 2025?
Baird Radford: Yeah, I think Nnamdi and I'll, I'll tag team this. You know, from a sales perspective, you know, we've signaled in past calls the, the competitive environment that we're seeing brewing, and being in those deals is super important. Randy alluded to some investments we made during 2025, to increase the sales force, to make sure that we're well-positioned to capitalize on this market opportunity in front of us. So you'll start to see some of those come through. And then on the clinical side, do you wanna-
Baird Radford: Yeah, I think Nnamdi and I'll, I'll tag team this. You know, from a sales perspective, you know, we've signaled in past calls the, the competitive environment that we're seeing brewing, and being in those deals is super important. Randy alluded to some investments we made during 2025, to increase the sales force, to make sure that we're well-positioned to capitalize on this market opportunity in front of us. So you'll start to see some of those come through. And then on the clinical side, do you wanna-
Speaker #3: Here ?
Speaker #4: Yeah , I'll tag team I think you know , from a sales perspective , you in the past calls know , we've signaled the the competitive we're seeing and in deals is those super important alluded .
Speaker #4: To Randy, some investments we made during 2025 will increase the sales force to make sure that we're well positioned to capitalize on this market opportunity in front of us.
Nnamdi Njoku: Yeah.
Nnamdi Njoku: Yeah.
Baird Radford: Share anything?
Baird Radford: Share anything?
Nnamdi Njoku: Yeah, just, broadly speaking, as Randy talked about, we're excited about the response we're getting from our customers, and, we know that this is a pivot point for the company. So we are investing in our sales force and how we go to market, particularly around pricing and how we package all the solutions that we've just announced. On the clinical side as well, we'll continue to make investments in the field with regards to how we engage our customers from a clinical standpoint. So overall, I would say we're making the right investments in the right areas to make sure that, you know, customers really understand the value of what we're bringing in the marketplace.
Nnamdi Njoku: Yeah, just, broadly speaking, as Randy talked about, we're excited about the response we're getting from our customers, and, we know that this is a pivot point for the company. So we are investing in our sales force and how we go to market, particularly around pricing and how we package all the solutions that we've just announced. On the clinical side as well, we'll continue to make investments in the field with regards to how we engage our customers from a clinical standpoint. So overall, I would say we're making the right investments in the right areas to make sure that, you know, customers really understand the value of what we're bringing in the marketplace.
Speaker #4: So you'll start to see some of those come through . And then on the clinical side , do you want to share anything ?
Speaker #4: Yeah , just broadly speaking , as Randy talked about , we're excited about getting from response we're the our customers . And we know that this is a pivot point company .
Speaker #4: Yeah , just broadly speaking , as Randy talked about , we're excited about getting from response we're the our customers . And we know that this is a pivot point for the So we are investing in sales force our and how we go to market , particularly around pricing and how we package all the solutions that we've just on the announced as continue clinical side We'll well .
Speaker #4: To make investments in the field, in regards to how we engage from our standpoint—clinical overall—I would say we're making the right investments in the right areas to make sure we really know customers, and that you understand the value in the marketplace of what we're bringing.
[Analyst] (Bank of America): Fantastic. Thank you.
Dev Sharma: Fantastic. Thank you.
Operator: Our next question comes from the line of Matt Hewitt with Craig-Hallum. Matt, please go ahead.
Operator: Our next question comes from the line of Matt Hewitt with Craig-Hallum. Matt, please go ahead.
Speaker #3: That's it . Thank you .
Matt Hewitt: Good morning, and thanks for taking all the questions. Maybe first up, given the launch of XT coming shortly on the heels of XT Extend, I'm just curious, those customers that had gotten into queue, maybe had signed contracts for Extend, what has been the feedback from them? Are they pushing ahead with Extend, with plans to upgrade to Titan at some point in the future? Or are you having some of those pipeline candidates come back and say, "Oh, hold the line, with, you know, we maybe wanna go with Titan, can we get in queue for that maybe in the back half of the year when that platform is available?
Matt Hewitt: Good morning, and thanks for taking all the questions. Maybe first up, given the launch of XT coming shortly on the heels of XT Extend, I'm just curious, those customers that had gotten into queue, maybe had signed contracts for Extend, what has been the feedback from them? Are they pushing ahead with Extend, with plans to upgrade to Titan at some point in the future? Or are you having some of those pipeline candidates come back and say, "Oh, hold the line, with, you know, we maybe wanna go with Titan, can we get in queue for that maybe in the back half of the year when that platform is available?
Speaker #2: And our next question comes from the Matthew line of with Craig-hallum . with Matt , please go .
Speaker #6: morning and thanks for Good questions . the taking all Maybe first up , given the launch of XT coming shortly on the heels of XT extend , I'm just curious those customers that had gotten into queue signed maybe had contracts extend .
Speaker #6: What has feedback from them ? Are they pushing ahead with for extend with plans to to Titan at some point in upgrade the future , or are you having some of those pipeline candidates come back and say , hold the line .
Speaker #6: You oh , know , maybe we want to go with Can we get in queue for Titan . Maybe in that ? the back half of the that year when platform is available ?
Nnamdi Njoku: Thanks, Matt, for the question. So if you take a step back, one of the principles we've operated under here is really, you know, meeting customers where they are. So think about it from the standpoint of customers that have an aging fleet, obviously have a compelling reason to go to Titan XT, and for all the reasons that we've articulated. For those customers that you're calling out that have made the investment in XT Extend, they still have the ability to access cloud capability once we have that generally available. So it's not a, it's not an investment that goes to the wayside here. Those customers will get the benefit of accessing our cloud capability through OmniSphere, because the XT Extend consoles are essentially a cloud-enabled console.
Nnamdi Njoku: Thanks, Matt, for the question. So if you take a step back, one of the principles we've operated under here is really, you know, meeting customers where they are. So think about it from the standpoint of customers that have an aging fleet, obviously have a compelling reason to go to Titan XT, and for all the reasons that we've articulated. For those customers that you're calling out that have made the investment in XT Extend, they still have the ability to access cloud capability once we have that generally available. So it's not a, it's not an investment that goes to the wayside here. Those customers will get the benefit of accessing our cloud capability through OmniSphere, because the XT Extend consoles are essentially a cloud-enabled console. So, as we think about it here, all we have the ability here to engage just about every customer out there for the path to the cloud.
Speaker #4: Thanks , Matt , for the question . So take a step back , one of the if you principles we've operated under here is really , you know , meeting are .
Speaker #4: customers where they about it So from a think standpoint of customers that have an fleet aging , obviously have a compelling reason to go Titan XT .
Speaker #4: We've reasons that articulated for those. And for all the customers that you're calling out that have made the investment in XT Extend, they still have the ability to cloud access capability.
Speaker #4: Once we have that, generally, so it's not available, so not an investment that goes to the wayside here. Customers will get the benefit of accessing our cloud capability through Omnisphere because their consoles are essentially an extended cloud console.
Nnamdi Njoku: So, as we think about it here, all we have the ability here to engage just about every customer out there for the path to the cloud.
Speaker #4: enabled So , so as about we think it here , we have the ability engage just about every customer here to there with the cloud a path to .
Matt Hewitt: That's super helpful. And then maybe just to follow up on the gross margins, you know, you're facing some tariff costs, I get that. Is there anything that you can do from a mitigation standpoint to reduce those costs? Maybe not immediately, but over the course of this year, so that you could get those product gross margins back to where they should be. Thank you.
Matt Hewitt: That's super helpful. And then maybe just to follow up on the gross margins, you know, you're facing some tariff costs, I get that. Is there anything that you can do from a mitigation standpoint to reduce those costs? Maybe not immediately, but over the course of this year, so that you could get those product gross margins back to where they should be. Thank you.
Speaker #6: That's super helpful . And then maybe just to follow up gross margins , you on the you're facing some
Speaker #6: tariff costs . I get Is there anything that that . a you can mitigation standpoint to do from costs ? Maybe not immediately , but over the course of this could get that you year so those product gross margins back to where be .
Baird Radford: Yeah. So there are a couple of things wrapped in there that I wanna share. As it relates to the fourth quarter, we definitely saw the impact of the customer and product mix. So based on those installations in the product side, during the quarter, there was a little bit more unfavorable mix than we had seen in the past. I think that is a little bit more of a Q4 thing than a broader reset of what the margins would be. As you talk about tariffs, we are looking forward, and the mitigation efforts completed by the team during 2025, and they really did scramble well, following the implementation of those tariffs.
Baird Radford: Yeah. So there are a couple of things wrapped in there that I wanna share. As it relates to the fourth quarter, we definitely saw the impact of the customer and product mix. So based on those installations in the product side, during the quarter, there was a little bit more unfavorable mix than we had seen in the past. I think that is a little bit more of a Q4 thing than a broader reset of what the margins would be. As you talk about tariffs, we are looking forward, and the mitigation efforts completed by the team during 2025, and they really did scramble well, following the implementation of those tariffs.
Speaker #6: they should Thank you .
Speaker #6: they should Thank you .
Speaker #7: there are a couple so So things of that Yeah . to I want share as it relates to the fourth quarter . We definitely saw the impact of the customer and product mix .
Speaker #7: So, based on those installations and the side during the quarter, there was a little product bit more unfavorable than we had seen in the mix past.
Speaker #7: I think is that a little bit more of a Q4 than than a broader what the reset of would be . As you talk about tariffs , we are looking forward in the mitigation efforts by the team completed during and they 2025 , really did scramble well thing those tariffs .
Baird Radford: We're exiting the year with roughly $6 million in the Q4 of tariffs, and we signaled $15 million into tariffs over the course of the entirety of 2026. When you think about how that'll roll out, you know, it's probably a little more front-end weighted than back-end weighted next year, but we'll start to see some natural benefits from the efforts that the team has undertaken on tariffs. So those are two points to flag. I think the third point to flag is that the supply chain team is very committed to finding ways to manage our use of the global supply chain network to optimize the cost structure. How do we make sure we have a resilient, available supply chain? And how do we do that through the lens of optimizing on cost to try to yield better margins?
Baird Radford: We're exiting the year with roughly $6 million in the Q4 of tariffs, and we signaled $15 million into tariffs over the course of the entirety of 2026. When you think about how that'll roll out, you know, it's probably a little more front-end weighted than back-end weighted next year, but we'll start to see some natural benefits from the efforts that the team has undertaken on tariffs. So those are two points to flag. I think the third point to flag is that the supply chain team is very committed to finding ways to manage our use of the global supply chain network to optimize the cost structure. How do we make sure we have a resilient, available supply chain? And how do we do that through the lens of optimizing on cost to try to yield better margins?So we continue to remain very focused on that area.
Speaker #7: of We're the year with following the roughly $6 million in the tariffs , and we fourth quarter of signaled tariffs $15 million into over the course of the entirety of 2026 , think when you how about roll out it's , you know , little more front end probably a than back end weighted next But we'll start to see some natural weighted from the year .
Speaker #7: has team undertaken efforts on So those are two points flag . I think the third point flag is that the to team supply is very committed to ways finding to manage our of the to chain network to optimize supply cost the structure .
Speaker #7: How do we sure we have a resilient available supply chain , and how do we do that lens of on optimizing cost to yield try to better margins .
Baird Radford: So we continue to remain very focused on that area.
Matt Hewitt: Understood. Thank you.
Matt Hewitt: Understood. Thank you.
Speaker #7: So we continue to remain very focused on that area.
Operator: ... Our next question comes from the line of Scott Schoenhouse with KeyBanc. Scott, please go ahead.
Operator: ... Our next question comes from the line of Scott Schoenhouse with KeyBanc. Scott, please go ahead.
Speaker #6: Understood . Thank you
Scott Schoenhaus: Hey, team. Thanks for taking my question. Randall, I believe you mentioned the first question about seeing traction from the competitive wins with your conversations with customers. Maybe can we dig more there? You know, your largest competitor in this kind of duopoly hasn't done a refresh cycle in a long time, and there should be a lot of pent-up demand. Can you maybe comment on what you're seeing and then maybe what's embedded in the guidance for bookings in terms of the competitive wins? Thanks.
Scott Schoenhaus: Hey, team. Thanks for taking my question. Randall, I believe you mentioned the first question about seeing traction from the competitive wins with your conversations with customers. Maybe can we dig more there? You know, your largest competitor in this kind of duopoly hasn't done a refresh cycle in a long time, and there should be a lot of pent-up demand. Can you maybe comment on what you're seeing and then maybe what's embedded in the guidance for bookings in terms of the competitive wins? Thanks.
Speaker #2: our next And question comes of with Sondhaus from the line KeyBanc . Scott , please go ahead
Speaker #2: . team .
Speaker #8: Hey ,
Speaker #8: for taking Randall . I believe you mentioned in question . first question about seeing traction from the competitive wins conversations with customers . Maybe can we dig there ?
Speaker #8: know , the You largest more with your largest your competitor Scott duopoly in this hasn't done refresh long time . cycle . should be a lot of pent up demand .
Speaker #8: what you're comment on seeing ? And then maybe embedded in the terms for of guidance the competitive wins ? .
Randall Lipps: Yeah, I think, obviously, the timing of this announcement was very good for us, as it also was timed with marketplace. In our marketplace, everyone is looking at refreshing their systems over the next few years, and it's allowed us to get in a lot more conversations that we would not have had, had we not announced the product at this time. And so it's really hats off to the Omnicell team for getting this product out and ready and announced. And, you know, so we know we're in more fights than we've been. The top of the funnel is really strong and fresh, and it's really our opportunity to take more market share. Now, in general, it's hard to put these accounts into certainly into the backlog until you sign them.
Randall Lipps: Yeah, I think, obviously, the timing of this announcement was very good for us, as it also was timed with marketplace. In our marketplace, everyone is looking at refreshing their systems over the next few years, and it's allowed us to get in a lot more conversations that we would not have had, had we not announced the product at this time. And so it's really hats off to the Omnicell team for getting this product out and ready and announced. And, you know, so we know we're in more fights than we've been. The top of the funnel is really strong and fresh, and it's really our opportunity to take more market share. Now, in general, it's hard to put these accounts into certainly into the backlog until you sign them.
Speaker #5: Yeah , I
Speaker #5: Yeah , I think what's obviously the
Speaker #5: this timing of for bookings in us was as it also was Thanks with marketplace in our Everyone is looking at refreshing their systems over the and it's allowed us to get in a lot more years , conversations not that we would have had had we not announced the this product at time .
Speaker #5: so And really hats off to the it team for getting this product out ready and and announced . And you so know , we know more we've been we're in the funnel is fights than really strong the top of fresh .
Speaker #5: is And it's it's it's really our opportunity to to take more market it's share In now . hard to put these accounts into general , it's into the fervently backlog until you sign them .
Randall Lipps: So I'd say we've kind of built our forecast based on what we see today. I don't know, Baird, does that describe that the right way?
Randall Lipps: So I'd say we've kind of built our forecast based on what we see today. I don't know, Baird, does that describe that the right way?
Speaker #5: So I'd say we've kind of built our our based on forecast what we today . I don't know that the right way .
Baird Radford: Yeah, we definitely felt the momentum as we were exiting 2025, the vibrancy of the competitive environment. As Randy alluded, it is difficult to bake those into a guidance, but we have assumed a, you know, a modest step up, reflecting our confidence of where we're positioned in that space. And, you know, we don't shy away from the competition. We're excited to have our outstanding products, their reliability and our innovation roadmap considered by competitive customers, so we're looking forward to the fight.
Baird Radford: Yeah, we definitely felt the momentum as we were exiting 2025, the vibrancy of the competitive environment. As Randy alluded, it is difficult to bake those into a guidance, but we have assumed a, you know, a modest step up, reflecting our confidence of where we're positioned in that space. And, you know, we don't shy away from the competition. We're excited to have our outstanding products, their reliability and our innovation roadmap considered by competitive customers, so we're looking forward to the fight.
Speaker #5: described , Yeah ,
Speaker #9: felt .
Speaker #7: The
Speaker #7: were momentum as we exiting 2025 . The vibrancy of we we the definitely competitive environment as Randy alluded , it is difficult to bake , bake those guidance .
Speaker #7: But we into a have assumed a , you know , a to up reflecting modest our confidence of step where we're that positioned in space .
Speaker #7: And , we don't shy away from the you know , competition . We're to have our outstanding products innovation roadmap by considered competitive looking the So we're fight excited .
Scott Schoenhaus: Perfect. Thanks for all that color. Maybe just as a follow-up, Baird, you know, you talked about mix shift pressures on the margins this quarter, but maybe talk about that maybe as a potential tailwind as you unroll, you know, roll the OmniSphere product in terms of mix shifts on margins. Thanks.
Scott Schoenhaus: Perfect. Thanks for all that color. Maybe just as a follow-up, Baird, you know, you talked about mix shift pressures on the margins this quarter, but maybe talk about that maybe as a potential tailwind as you unroll, you know, roll the OmniSphere product in terms of mix shifts on margins. Thanks.
Speaker #8: Perfect .
Speaker #8: color . Maybe just
Speaker #8: as a follow up , you talked about forward to mix pressures on the margins this quarter . shift But maybe talk about that tailwind potential you customers .
Speaker #8: a know unroll , you the , roll product in mix terms of shift on Thanks margins .
Baird Radford: Yeah. So as we think about OmniSphere, we'll be releasing for general availability those software workflow enhancements in the first half of 2027. I'd love to share more with you about where that is. We're pressure testing with customers at this time our thoughts around how to go to market in that area. And we signaled in December that we'll look to, in the back half of this year, provide you a more complete and comprehensive review of where that product and offering, set of offerings stands, and how we think that'll roll ourselves forward. So just need a little bit more time on that, but we definitely, definitely will share.
Baird Radford: Yeah. So as we think about OmniSphere, we'll be releasing for general availability those software workflow enhancements in the first half of 2027. I'd love to share more with you about where that is. We're pressure testing with customers at this time our thoughts around how to go to market in that area. And we signaled in December that we'll look to, in the back half of this year, provide you a more complete and comprehensive review of where that product and offering, set of offerings stands, and how we think that'll roll ourselves forward. So just need a little bit more time on that, but we definitely, definitely will share.
Speaker #7: So as
Speaker #7: So as
Speaker #7: About how we think Omnisphere—we'll be releasing it for general availability. Those software workflow enhancements, I'd say in 2027. I'd love to share more with you about where that is.
Speaker #7: We're pressure testing with Omnisphere customers at this time . Our thoughts how to go to around market in that , and area signaled in we about December that we'll look to in back half of this year , you a provide more and the of comprehensive review where that product and set of offerings , stands and how we think that ourselves will roll need a little bit more just forward .
Scott Schoenhaus: Great. Thanks.
Scott Schoenhaus: Great. Thanks.
Speaker #7: on that . we definitely , So share .
Operator: Your next question comes from the line of Bill Sutherland with the Benchmark Company. Bill, please go ahead.
Operator: Your next question comes from the line of Bill Sutherland with the Benchmark Company. Bill, please go ahead.
Speaker #7: definitely will
Speaker #8: Thanks Great . But
Speaker #8: . .
Bill Sutherland: Thank you. Good morning, everybody. Your ARR was very strong, and you're guiding strong. Maybe some granularity there in terms of the growth drivers. Thank you.
Bill Sutherland: Thank you. Good morning, everybody. Your ARR was very strong, and you're guiding strong. Maybe some granularity there in terms of the growth drivers. Thank you.
Speaker #2: your next And question comes from the line of Bill Sutherland with the Benchmark Bill , please Company . go ahead .
Speaker #10: you . Good morning Thank everybody . Your RR was very strong and strong your guiding . Maybe some granularity there in terms of of the of the growth drivers .
Baird Radford: Yeah, I think, Bill, are you thinking historically or are you thinking guidance-wise?
Baird Radford: Yeah, I think, Bill, are you thinking historically or are you thinking guidance-wise?
Speaker #10: you Thank .
Bill Sutherland: Both, actually. I was a little surprised at the strength that you reported, and you followed through with a similar kind of growth trajectory for this year.
Bill Sutherland: Both, actually. I was a little surprised at the strength that you reported, and you followed through with a similar kind of growth trajectory for this year.
Speaker #7: Yeah I think Bill are you . Thinking historically thinking guidance wise .
Speaker #10: I was a little Both at the surprised . Actually strength that you reported . And and you followed through with a similar kind of growth trajectory for
Baird Radford: Yeah, on the ARR side, historically, we had a really nice run in 2025 on the technical services, so the traditional break fix for our connected devices. The team did a very nice job in that space of making sure that contractually available pricing opportunities were secured. And so the team did a very nice job over the course of the last 18 months, and that yielded us some benefit. Also baked into that ARR are consumable and our specialty businesses, and those continue to perform nicely. We're encouraged by the momentum in both of those businesses. And what you see are, you see those three factors carrying forward in the guidance that we are setting for ARR in 2026.
Baird Radford: Yeah, on the ARR side, historically, we had a really nice run in 2025 on the technical services, so the traditional break fix for our connected devices. The team did a very nice job in that space of making sure that contractually available pricing opportunities were secured. And so the team did a very nice job over the course of the last 18 months, and that yielded us some benefit. Also baked into that ARR are consumable and our specialty businesses, and those continue to perform nicely. We're encouraged by the momentum in both of those businesses. And what you see are, you see those three factors carrying forward in the guidance that we are setting for ARR in 2026.
Speaker #7: Yeah the , yeah . On AR side had a a we had really nice run in technical 2025 on the services . So the traditional brake fix for our connected the team did a job , historically , we very in that , in that space nice of making sure that contractually available pricing opportunities were secured .
Speaker #7: And so the team did a very nice job over the course of the devices , 18 months in that yielded us some benefit .
Speaker #7: into baked Also that AR consumable and our specialty businesses . And those continue to perform nicely . We're encouraged momentum in those both of by the businesses and see are you see those three factors what you forward in carrying guidance that we setting are for AR in 2026 .
Bill Sutherland: Great. Thank you. And then one thing I've been thinking about is, with the success that you're seeing with Extend and people, and your customers excited, that that is gonna provide them an on-ramp, with OmniSphere. Does that change the calculus in terms of, the number of or the, of the, cabinets that are gonna be just refreshed versus, you know, replaced by Titan? And just trying to think about kind of the impact of this new go-to-market strategy. Thank you.
Bill Sutherland: Great. Thank you. And then one thing I've been thinking about is, with the success that you're seeing with Extend and people, and your customers excited, that that is gonna provide them an on-ramp, with OmniSphere. Does that change the calculus in terms of, the number of or the, of the, cabinets that are gonna be just refreshed versus, you know, replaced by Titan? And just trying to think about kind of the impact of this new go-to-market strategy. Thank you.
Speaker #10: Thank . And you Great . is with the success seeing that you're extend with about and people and excited customers that that your is going provide them an on to ramp with Omnisphere , does that change the calculus in terms of the number of or the of cabinets that are going to be the just versus refreshed , you know , replaced by Titan and trying to think about just of the the impact of , of this new go to market strategy .
Randall Lipps: Yeah, it's a, it's a great question. One of the goals, of course, is to, to lean into recurring revenue. And as we're able to connect to the OmniSphere, either with Titan or with an XT platform, a newer XT platform only, the older ones can't connect, but the newer ones can. It really allows us to garner subscription fees because we no longer have the back end. We don't have the cost of running on-prem servers or on-prem licenses.
Randall Lipps: Yeah, it's a, it's a great question. One of the goals, of course, is to, to lean into recurring revenue. And as we're able to connect to the OmniSphere, either with Titan or with an XT platform, a newer XT platform only, the older ones can't connect, but the newer ones can. It really allows us to garner subscription fees because we no longer have the back end. We don't have the cost of running on-prem servers or on-prem licenses. ... cybersecurity, that's all done in the cloud by us. So as we move those connections over to OmniSphere, it really allows us to generate a, I would say, a new and healthy source of revenue for our customers who don't want to run on-premise equipment, so to speak, in these large enterprises. So I think while you're looking at the hardware opportunity, it might be a little less, a little more. It's really the opportunity to garner this new revenue stream from OmniSphere that is gonna be a big driver in our future.
Speaker #10: Thank you .
Speaker #5: Yeah , it's a it's a great One of the course , is goals , of to to And revenue . as in to we're able to to the lean connect either with recurring or an platform with ext older , newer XT a platform , only the older can't newer ones ones can connect , but the .
Speaker #5: It really allows us to garner a subscription fee because we now have the longer back. We don't own the cost of running on servers, prem licenses, prem, and or cyber.
Baird Radford: ... cybersecurity, that's all done in the cloud by us. So as we move those connections over to OmniSphere, it really allows us to generate a, I would say, a new and healthy source of revenue for our customers who don't want to run on-premise equipment, so to speak, in these large enterprises. So I think while you're looking at the hardware opportunity, it might be a little less, a little more. It's really the opportunity to garner this new revenue stream from OmniSphere that is gonna be a big driver in our future.
Speaker #5: done in the That's all cloud by us . So as we those connections over to Omnisphere , it really allows us to generate a , I would end .
Speaker #5: our customers who don't want to run on and equipment . So to speak , in these large enterprises . So I think while you're looking at the hardware opportunity , it might be a little less a little .
Speaker #5: really the It's opportunity to garner this new revenue stream Omnisphere from that that is going to be a more future .
Nnamdi Njoku: It just really is. It's about accelerating adoption of OmniSphere, is how you guys are thinking about it, of course?
Bill Sutherland: It just really is. It's about accelerating adoption of OmniSphere, is how you guys are thinking about it, of course?
Baird Radford: Exactly. Exactly. Good, good, good extraction.
Baird Radford: Exactly. Exactly. Good, good, good extraction.
Speaker #10: It really is about a it's accelerating
Nnamdi Njoku: Okay. Thanks, everybody.
Bill Sutherland: Okay. Thanks, everybody.
Speaker #4: Yes .
Speaker #7: Exactly .
Speaker #5: Exactly . Good , good good . Extraction .
Rachel Smith: Thanks, Bill.
Rachel Smith: Thanks, Bill.
Operator: And our next question comes from the line of Jessica Tassan with Piper Sandler. Jessica, please go ahead.
Operator: And our next question comes from the line of Jessica Tassan with Piper Sandler. Jessica, please go ahead.
Speaker #10: Okay . Thanks everybody .
Jessica Tassan: Hi, guys. Thanks for taking the question. So my first one is just, can you give us a sense of how Omnicell contends with the lease structure that we believe kind of dominates your competitors' ADC install base? Does Omnicell need to wait for lease expiry? Do customers upgrade early? And then just, are lease terms or the duration of leases going to constrain the rate of competitive conversions you're able to achieve over the next, you know, two or three years?
Jessica Tassan: Hi, guys. Thanks for taking the question. So my first one is just, can you give us a sense of how Omnicell contends with the lease structure that we believe kind of dominates your competitors' ADC install base? Does Omnicell need to wait for lease expiry? Do customers upgrade early? And then just, are lease terms or the duration of leases going to constrain the rate of competitive conversions you're able to achieve over the next, you know, two or three years?
Speaker #11: Bill . Thanks ,
Speaker #2: And our next and our next question from the line comes Jessica Thorson Piper Sandler . with driver in our Jessica , please go ahead .
Speaker #12: Hi , guys . Thanks the for taking question . first one is just can you give us So my a sense of how contends with omnicell the the that we believe kind structure dominates your
Speaker #12: competitors ? ADC install . Just Omnicell need to wait for lease customers Do upgrade expiry . early and just our lease terms or the duration of leases going constrain to the rate of competitive conversions to ?
Speaker #12: base achieve over the next 2 or 3 years You're able ?
Baird Radford: Well, thanks, Jess. There's a lot tied up in there. Let me try to unpack that. One of the things that we've always done is we've offered third-party leasing to customers, and we've found that that program has helped some, but has also created a bit of administrative burden for others. So as we were working our way through 2025, it became apparent to us that the market opportunities that are presenting themselves in some of these competitive arrangements would benefit Omnicell if we were to have an Omnicell-financed leasing opportunity for customers.
Baird Radford: Well, thanks, Jess. There's a lot tied up in there. Let me try to unpack that. One of the things that we've always done is we've offered third-party leasing to customers, and we've found that that program has helped some, but has also created a bit of administrative burden for others. So as we were working our way through 2025, it became apparent to us that the market opportunities that are presenting themselves in some of these competitive arrangements would benefit Omnicell if we were to have an Omnicell-financed leasing opportunity for customers.
Speaker #4: Well .
Speaker #7: Thanks , Jess . There's a lot tied there . Let up in me let me try to unpack that
Speaker #7: One of the things that we've done is offered third-party, always-on leasing to customers. And we've found that that program has helped some.
Speaker #7: also created a bit of an burden administrative for others then . So as we were working it became But is apparent that us to the market through 2025 , opportunities that are presenting themselves in some of competitive these arrangements would Omnicell if we were have a to omnicell financed leasing of opportunity for customers , we've introduced this into a number conversations , and found that it's allowed stay in those us to conversations longer .
Baird Radford: We've introduced this into a number of conversations, and we found that it's allowed us to stay in those conversations longer, and I think it comes back to the company has always desired to meet the needs of customers where they are, and the extension of a Omnicell-driven financing program is just one more extension of that kind of ingrained culture here. Some customers, I think, will take the option. I think some will not. And so I don't see a wholesale shift in the way we do business, but I do see it as a great opportunity for us to remain competitive in competitive bid situations and potentially pick up a few additional customers because we're willing to use our balance sheet. So pause there and see if anything you want me to go deeper or want us to talk about more, Jess.
Baird Radford: We've introduced this into a number of conversations, and we found that it's allowed us to stay in those conversations longer, and I think it comes back to the company has always desired to meet the needs of customers where they are, and the extension of a Omnicell-driven financing program is just one more extension of that kind of ingrained culture here. Some customers, I think, will take the option. I think some will not. And so I don't see a wholesale shift in the way we do business, but I do see it as a great opportunity for us to remain competitive in competitive bid situations and potentially pick up a few additional customers because we're willing to use our balance sheet. So pause there and see if anything you want me to go deeper or want us to talk about more, Jess.
Speaker #7: And I think it comes back to the company has always desired to meet the customers where they are and the extension of Omnicell driven financing program is just one more extension of that kind of ingrained here .
Speaker #7: Some customers , I think , will take the option . culture think some will not . And so I don't see a wholesale shift in the way we do business .
Speaker #7: as a great do see it But I for us to remain competitive and competitive , bid situations and potentially pick up a few additional customers because we're willing to use our sheet .
Jessica Tassan: I think I'll follow up offline on that one. I guess my just follow-up would be, we saw the CommonSpirit Conifer announcement earlier this week. I guess, is there a risk or have you all contemplated the risk that AI tools potentially allow health systems to consider, you know, sort of home growing their pharmacy inventory management, and procurement at, you know, platform, and that that could, you know, compete with or undermine the OmniSphere launch in 2027?
Speaker #7: So pause there and see if anything balance me to go you want or want deeper talk more . Just about .
Jessica Tassan: I think I'll follow up offline on that one. I guess my just follow-up would be, we saw the CommonSpirit Conifer announcement earlier this week. I guess, is there a risk or have you all contemplated the risk that AI tools potentially allow health systems to consider, you know, sort of home growing their pharmacy inventory management, and procurement at, you know, platform, and that that could, you know, compete with or undermine the OmniSphere launch in 2027?
Speaker #12: think I follow up
Speaker #12: one . I offline on that us to guess my just follow up would be saw the common spirit , Conifer this announcement earlier week .
Speaker #12: we guess . Is I there a risk or have you all risk contemplated the that AI tools potentially allow health systems to consider sort of home growing ?
Speaker #12: Their pharmacy inventory and procurement management at platform , and that that could compete with or undermine the launch in 27 . Omnisphere
Baird Radford: Well, we think AI is a great tool, and it will be used for supply chain, but you need to have an infrastructure to operate it across in order to get the right results. And so our infrastructure, particularly as you look at OmniSphere, is all geared toward AI. And so we don't have to garner the tool sets that everybody needs to use to get the optimal returns on their supply chain, but they need an infrastructure that is enterprise-wide, that is, reliable, that's secure, that you can exercise whatever types of AI you want to, both those that we offer and maybe even some that some of these institutions might have.
Baird Radford: Well, we think AI is a great tool, and it will be used for supply chain, but you need to have an infrastructure to operate it across in order to get the right results. And so our infrastructure, particularly as you look at OmniSphere, is all geared toward AI. And so we don't have to garner the tool sets that everybody needs to use to get the optimal returns on their supply chain, but they need an infrastructure that is enterprise-wide, that is, reliable, that's secure, that you can exercise whatever types of AI you want to, both those that we offer and maybe even some that some of these institutions might have. So we think it's a net, net plus for us because people really want access to real-time data in a very large enterprise manner in order to do the right kinds of modeling, and that leans toward us.
Speaker #5: think Well , we AI is a great tool and it will be used for supply chain , but you need to have an infrastructure to operate across it the right in order results .
Speaker #5: And so to get our infrastructure, particularly as you look at Omnisphere, is all geared toward AI. And so we don't Gardner.
Speaker #5: The have to . sets that everybody needs to use to get the optimal returns on their chain , but supply they need an infrastructure is that enterprise wide , that is reliable , that's secure , you that can exercise types of you want , both those that we and whatever maybe even AI some that some of these institutions might So we think net net have .
Baird Radford: So we think it's a net, net plus for us because people really want access to real-time data in a very large enterprise manner in order to do the right kinds of modeling, and that leans toward us.
Speaker #5: for us because people really it's a want real time access to data large to enterprise manner in a very right modeling and and that leans toward us .
Jessica Tassan: Thank you.
Jessica Tassan: Thank you.
Rachel Smith: Thanks, Jess.
Kathleen Nemeth: Thanks, Jess.
Baird Radford: Thanks, Jess.
Baird Radford: Thanks, Jess.
Operator: Your next question comes from the line of Stan Berenstain with Wells Fargo Securities. Stan, please go ahead.
Operator: Your next question comes from the line of Stan Berenstain with Wells Fargo Securities. Stan, please go ahead.
Speaker #12: Thank you .
Speaker #11: Jeff . Jess Thanks ,
Speaker #5: Thanks ,
Speaker #5: .
Stan Berenshteyn: Yes, hi, thanks for taking my questions. First, I'd love to get an update on the robotics. I was wondering if you could maybe give us what percentage of product revenue were accounted by robotic products in 2025, and any changes in expectations for that mix to differ at all in 2026, and any changes in expectations for bookings?
Stan Berenshteyn: Yes, hi, thanks for taking my questions. First, I'd love to get an update on the robotics. I was wondering if you could maybe give us what percentage of product revenue were accounted by robotic products in 2025, and any changes in expectations for that mix to differ at all in 2026, and any changes in expectations for bookings?
Speaker #2: And your next question comes from the line of Stan Bernstein with Wells Fargo Securities. Stan, please go ahead.
Speaker #13: Yes . Hi . Thanks for taking my questions . First , I'd love to get an update on the on the robotics . I was wondering if you could maybe us give what percentage of product revenue robotic were accounted by products in 2025 , and any changes in that mix to differ to all expectations for in 2026 .
Baird Radford: Yeah, I'll, I'll hit the revenue component, and then Omni. You know, we have not yet disclosed the robotics platform. I will say, in any given period, it has not been a material amount. We are encouraged by the momentum of the, the XR2 offering, but it is a discrete set. You got to have the space for it, and you got to have the, the needs and purpose for it. So you know, that is a lower volume product. So, yeah.
Baird Radford: Yeah, I'll, I'll hit the revenue component, and then Omni. You know, we have not yet disclosed the robotics platform. I will say, in any given period, it has not been a material amount. We are encouraged by the momentum of the, the XR2 offering, but it is a discrete set. You got to have the space for it, and you got to have the, the needs and purpose for it. So you know, that is a lower volume product. So, yeah.
Speaker #13: at And any expectations for bookings ?
Speaker #7: Yeah , hit the revenue I'll component of the Nnamdi . You know , we have not yet disclosed the robotics platform . I will say in any given period , it not been a material amount are .
Speaker #7: We encouraged by the has momentum of
Speaker #7: the ZR2 , but it is discrete set . You got to have the space for it and you got to have the the needs and purpose for it .
Nnamdi Njoku: Just kind of building off Baird's comments. So overall, I mean, as Baird said, it's not a material component right now, but we still think that automation and robotics is part of the answer to some of the challenges our health systems are facing. So we're just continuing to work on the right suite of solutions to meet that need. So that's where we're focused on right now.
Nnamdi Njoku: Just kind of building off Baird's comments. So overall, I mean, as Baird said, it's not a material component right now, but we still think that automation and robotics is part of the answer to some of the challenges our health systems are facing. So we're just continuing to work on the right suite of solutions to meet that need. So that's where we're focused on right now.
Speaker #7: So that is a lower volume So product . changes in yeah .
Speaker #4: Just kind of building off Baird's comments . mean , as Baird overall , I said , it's not So a material right now , but we still think that automation and robotics is part of the answer of the challenges to some our health systems are So we're just continuing to facing .
Stan Berenshteyn: ... Got it. Thanks. And maybe on the services side, would love an update on Enliven and 340B. I know Enliven, I think, you had some pressures earlier in 2025. What are the expectations as we think about next year and, or this year, I should say, as well as if you can comment on how 340B has been performing and what your expectations? Thank you.
Stan Berenshteyn: ... Got it. Thanks. And maybe on the services side, would love an update on Enliven and 340B. I know Enliven, I think, you had some pressures earlier in 2025. What are the expectations as we think about next year and, or this year, I should say, as well as if you can comment on how 340B has been performing and what your expectations? Thank you.
Speaker #4: Work on the right of solutions to suit, meet that need. So that's where we're focused on right now.
Speaker #13: Got it . Thanks . And maybe on the we'd love an update on enliven service and P-40b . I enliven . I think you had some know pressures earlier in 2025 .
Speaker #13: What are the expectations as we think about year and or this year ? next I should say , as well as if you can comment on how three P-40b has been performing and what your expectations .
Randall Lipps: So on the Enliven side, as we know, there's you know, headwinds in the retail segment, and that's continuing to sort of unfold out there. With Enliven here, we're still the solutions that that business provides into that retail segment; we still feel like long term, it's a right suite of solutions. But there are some headwinds in that market right now that we're continuing to watch, and what we're focused on right now is just you know, helping our customers navigate through those headwinds. So that's kind of where things are right now, and that's kind of the focus of that business. With respect to 340B, that is part of our specialty offering at this stage.
Randall Lipps: So on the Enliven side, as we know, there's you know, headwinds in the retail segment, and that's continuing to sort of unfold out there. With Enliven here, we're still the solutions that that business provides into that retail segment; we still feel like long term, it's a right suite of solutions. But there are some headwinds in that market right now that we're continuing to watch, and what we're focused on right now is just you know, helping our customers navigate through those headwinds. So that's kind of where things are right now, and that's kind of the focus of that business. With respect to 340B, that is part of our specialty offering at this stage.
Speaker #13: Thank you .
Speaker #13: .
Speaker #4: So they so enlivened side as we know there's headwinds in the retail , you know , segment . And that's continuing to sort of unfold out there with here .
Speaker #4: Enliven still the solutions that that business provides into that retail segment. We still feel like long term it's a set of solutions.
Speaker #4: right suite there are some headwinds in that market right now that we're watch . continuing to we're we're focused And just , on right you know , helping now is our customers navigate through those headwinds .
Speaker #4: So that's kind of where things are right now . And that's kind of the focus of that business to respect . With is part of our specialty offering at this stage feel it's .
Randall Lipps: We feel it's a compelling part of our specialty business and a big contributor with regards to how we go to market on specialty. And as you know, there's a lot of chatter out there in the marketplace with regards to the pilot program with the top 10 specialty drugs. But as we connect with customers, they're definitely watching it, but at the same time, those drugs tend to be replaced by generics or newer drugs that come onto the marketplace. So overall, from a net standpoint, customers are watching it, but we still feel like there's not a material change to our revenue expectations with the specialty business.
Randall Lipps: We feel it's a compelling part of our specialty business and a big contributor with regards to how we go to market on specialty. And as you know, there's a lot of chatter out there in the marketplace with regards to the pilot program with the top 10 specialty drugs. But as we connect with customers, they're definitely watching it, but at the same time, those drugs tend to be replaced by generics or newer drugs that come onto the marketplace. So overall, from a net standpoint, customers are watching it, but we still feel like there's not a material change to our revenue expectations with the specialty business.
Speaker #4: a compelling part of our specialty and We contributor business a big with how we go to regards to market on specialty . And as you know , there's a lot of chatter of a lot out there in the marketplace with regards to the program , with the pilot top ten specialty drugs .
Speaker #4: But as we connect with customers , they're definitely watching it . But at the same time , those those drugs tend to be replaced by generics or , or newer drugs that come onto the marketplace .
Speaker #4: So That standpoint from a . , customers are watching we still it . But feel like there's overall not a change to our revenue expectations with the material specialty business .
Stan Berenshteyn: Got it. Thanks. And maybe one quick follow-up here for Baird, regarding the comments, related to the ERP platform implementations. I think you called out $10 million incremental expenses for 2026. Is that supposed to just come off, like, in 2027, all else equal, or is there some other things we should be contemplating, like improved efficiencies, that, that are going to help margins as you continue to grow the business? Thank you.
Stan Berenshteyn: Got it. Thanks. And maybe one quick follow-up here for Baird, regarding the comments, related to the ERP platform implementations. I think you called out $10 million incremental expenses for 2026. Is that supposed to just come off, like, in 2027, all else equal, or is there some other things we should be contemplating, like improved efficiencies, that, that are going to help margins as you continue to grow the business? Thank you.
Speaker #13: Got it . And Thanks . maybe one quick follow here up Baird for regarding related to the ERP platform comments implementations . I think you called 10 million incremental out expenses for 2026 .
Speaker #13: That is supposed to come off, like, in 2027? All else equal, or are there things we should be contemplating, like improved efficiencies that are going to help margins?
Randall Lipps: Yeah, it'll definitely be a multi-year system implementation that we'll be experiencing. But like any large initiative, we have assumed that we're going to be able to drive efficiencies through the use of the system. I would stop short of saying it's anywhere near dollar for dollar. Some things you just have to do to maintain a corporate structure. But we definitely are planning that the system investments will yield benefits to our business, particularly as we clean up the way in which we work with our customers and satisfy their needs. That should provide opportunities on the commercial side for us.
Randall Lipps: Yeah, it'll definitely be a multi-year system implementation that we'll be experiencing. But like any large initiative, we have assumed that we're going to be able to drive efficiencies through the use of the system. I would stop short of saying it's anywhere near dollar for dollar. Some things you just have to do to maintain a corporate structure. But we definitely are planning that the system investments will yield benefits to our business, particularly as we clean up the way in which we work with our customers and satisfy their needs. That should provide opportunities on the commercial side for us.
Speaker #13: As you continue to business, thank you. Grow the—
Speaker #13: As you just it'll
Speaker #7: be it'll definitely Yeah , be a system that will be experiencing . But multi-year like like any large we have initiative , assumed that we are going to be able to drive implementation efficiencies through the use of the system .
Speaker #7: I stop short of saying it's anywhere near dollar for dollar . Some things you just would do to corporate structure . But we definitely are are planning that maintain a these system investments will yield benefits to our business , particularly as we clean up the we work which with our way in customers .
Stan Berenshteyn: Great. Thank you.
Stan Berenshteyn: Great. Thank you.
Speaker #7: That should provide opportunities on the commercial side for their satisfy.
Rachel Smith: Thanks, Dan.
Rachel Smith: Thanks, Dan.
Operator: And your next question comes from the line of Eugene Mannheimer, with Freedom Capital Markets. Eugene, please go ahead.
Operator: And your next question comes from the line of Eugene Mannheimer, with Freedom Capital Markets. Eugene, please go ahead.
Speaker #13: Great . Thank you .
Speaker #11: Thanks , Dan .
Gene Mannheimer: Oh, thanks. Good morning. Congrats on the great progress. When we think about the Titan adoption cycle, do you envision the same bell curve type of shape that we saw during the last cycle, right, in which it peaks and the corresponding revenue peaks in years three to five and then tapers off? Or do you envision a more of a linear pace of adoption?
Gene Mannheimer: Oh, thanks. Good morning. Congrats on the great progress. When we think about the Titan adoption cycle, do you envision the same bell curve type of shape that we saw during the last cycle, right, in which it peaks and the corresponding revenue peaks in years three to five and then tapers off? Or do you envision a more of a linear pace of adoption?
Speaker #2: next question And your comes from the line of Eugene Mannheimer with Freedom Capital Markets . Eugene , please go ahead .
Speaker #13: Oh , thanks .
Speaker #14: Good morning . progress Congrats on . When we the great adoption cycle , do you envision the same bell curve shape that we saw during the last cycle ?
Speaker #14: Right . In which it the peaks and type of corresponding revenue peaks in years 3 to 5 , and then tapers off ? Or do you more of a envision a linear adoption pace of ?
Randall Lipps: Well, hey, Eugene, Randy Lipps. I think, yeah, it's more typically the bell shape, but I think what is different this time is we will have a lot more additional products to add on to the OmniSphere that fill in some of those gaps. So we're not just selling Titan. We're able to plug and play small, medium, and large, some with software, some with hardware, additional products off the OmniSphere that really de-emphasizes just the sort of the bell curve profile of the business. Because we really want to move toward a business that's much more sustainable, much more higher margin than we are today, with recurring revenues.
Randall Lipps: Well, hey, Eugene, Randy Lipps. I think, yeah, it's more typically the bell shape, but I think what is different this time is we will have a lot more additional products to add on to the OmniSphere that fill in some of those gaps. So we're not just selling Titan. We're able to plug and play small, medium, and large, some with software, some with hardware, additional products off the OmniSphere that really de-emphasizes just the sort of the bell curve profile of the business. Because we really want to move toward a business that's much more sustainable, much more higher margin than we are today, with recurring revenues.
Speaker #5: Well , hey , Jean Randall Lipps , I think , yeah , it's typically the bell shape , but more is I think what different this time is we lot more products to additional add on to the sphere omni that fill in some of those gaps .
Speaker #5: not So we're just selling we're able Titan , to play plug and small , medium and large some with software , some with hardware .
Speaker #5: Additional off the Omni sphere that that really the emphasizes just the sort of the bell curve profile of the business because we really want to move toward a that's much more sustainable , much more higher margin are than we with recurring revenues .
Randall Lipps: I think we're getting ourselves set up for that with Titan being the initial product that plugs and plays off of OmniSphere to bring great value to customers. But as we add more products, they will just plug and play off the OmniSphere and continue to build out their own, I guess, bell cycle, bell curve cycle as well. So it's going to be a wave of products, just not a product wave cycle. I think that's the difference we're doing here, and we're going to lean into the OmniSphere revenue generation portion of the future as well, not just sort of the hardware moment, if you will.
Randall Lipps: I think we're getting ourselves set up for that with Titan being the initial product that plugs and plays off of OmniSphere to bring great value to customers. But as we add more products, they will just plug and play off the OmniSphere and continue to build out their own, I guess, bell cycle, bell curve cycle as well. So it's going to be a wave of products, just not a product wave cycle. I think that's the difference we're doing here, and we're going to lean into the OmniSphere revenue generation portion of the future as well, not just sort of the hardware moment, if you will.
Speaker #5: And I think we're getting ourselves set that . With being Titan the the initial product plugs and plays off business Omnisphere to that bring great value to customers .
Speaker #5: But as we add more will just plug and play off the , they Omni sphere continue products out own . I guess Bell Bell curve cycle as well .
Speaker #5: So a wave of products , just not a going to be product wave cycle . I the the difference here . And we're we're doing lean into going to the sphere revenue generation of the sort of the future as hardware just moment , if will portion well , not .
Gene Mannheimer: Got it. Makes a lot of sense, Randy. And my follow-up would be, you know, you implied that you're bullish, obviously, on your ability to gain share vis-a-vis your primary competitor. So again, looking back to prior product cycles, do you think your experience in competitive conversions will be similar to that which you witnessed in their last product cycle that they embarked on, you know, 10 or 12 years ago?
Gene Mannheimer: Got it. Makes a lot of sense, Randy. And my follow-up would be, you know, you implied that you're bullish, obviously, on your ability to gain share vis-a-vis your primary competitor. So again, looking back to prior product cycles, do you think your experience in competitive conversions will be similar to that which you witnessed in their last product cycle that they embarked on, you know, 10 or 12 years ago?
Speaker #14: my follow makes a lot of
Speaker #14: be , you know , you implied that you're sense . bullish Got it your obviously on to gain share vis a vis your ability primary competitor .
Speaker #14: So again , to looking back prior do you think experience in cycles , competitive conversions will be similar to you witnessed in their last which cycle that product they embarked on ?
Speaker #14: product
Randall Lipps: I just think our opportunity in the market has never been better. I think the key here is we have the right product for these complex customers who have evolved from, you know, 5, 10, or 20 hospitals to 50 to 100 hospitals. And so the solution sets are enormously different for those type of customers. And the only way to really reach these customers with the right solution set is to have an enterprise, cloud-based, single app, multi-tenant product that really allows a customer to get as big as they need in every area they need, and to shift and move quickly with plug-and-play resources that can track the medication management wherever they go.
Randall Lipps: I just think our opportunity in the market has never been better. I think the key here is we have the right product for these complex customers who have evolved from, you know, 5, 10, or 20 hospitals to 50 to 100 hospitals. And so the solution sets are enormously different for those type of customers. And the only way to really reach these customers with the right solution set is to have an enterprise, cloud-based, single app, multi-tenant product that really allows a customer to get as big as they need in every area they need, and to shift and move quickly with plug-and-play resources that can track the medication management wherever they go.
Speaker #14: ?
Speaker #5: opportunity has never been think our I think better .
Speaker #5: I key here is we think the have the right product these complex
Speaker #5: five , I just , you know , 10 or 20 hospitals to 50 to 100 hospitals . the solution sets enormously for those type of customers .
Speaker #5: And the only way to customers really are with the right solution , set is to have to , solution set enterprise cloud based , multi-tenant that really allows the customer to get as big as they every area .
Speaker #5: need They ago to shift and need , and move quickly with in plug and resources that can track the medication management wherever they go .
Randall Lipps: And so when we talk about our solution resonating with the customer, it's the same chief pharmacy officer or operational officer who said: "Yeah, we just acquired 25, 100 clinics. Now I got to manage those medications. What do you have?" I said, "We have our MedVision software-only product for clinics. You can just plug that in and start running. You don't need to have to do a whole bunch of other things." "Oh, great!" So it's this broadened conversation about these institutions that are really big, that are looking for true platform players. And I just feel like we're so far ahead out there that as long as we can get those discussions right, we're going to win more than our fair share.
Randall Lipps: And so when we talk about our solution resonating with the customer, it's the same chief pharmacy officer or operational officer who said: "Yeah, we just acquired 25, 100 clinics. Now I got to manage those medications. What do you have?" I said, "We have our MedVision software-only product for clinics. You can just plug that in and start running. You don't need to have to do a whole bunch of other things." "Oh, great!" So it's this broadened conversation about these institutions that are really big, that are looking for true platform players. And I just feel like we're so far ahead out there that as long as we can get those discussions right, we're going to win more than our fair share.
Speaker #5: when product we And so talk about our solution resonating customer , it it's the same chief pharmacy with the officer operational who said , officer or yeah , we just acquired play 25 , 100 clinics .
Speaker #5: Now I got to manage those do you medications . we have our have ? What vision software only can just plug that in and med I said , running .
Speaker #5: You don't need to have to do a whole start bunch things . Oh , So it's this broadened conversation great . about these that really big , that are looking for true platform players and I just feel are like we're ahead out we can that as long as get those there discussions right win more going to than our fair share
Gene Mannheimer: That's great. Thanks again.
Gene Mannheimer: That's great. Thanks again.
Rachel Smith: Thanks, Jane.
Rachel Smith: Thanks, Jane.
Operator: And now our final question comes from the line of David Larsen with BTIG. David, please go ahead.
Operator: And now our final question comes from the line of David Larsen with BTIG. David, please go ahead.
Speaker #5: .
Speaker #14: That's again
Speaker #14: That's again .
Speaker #14: great . Thanks
Speaker #11: Thanks ,
Speaker #11: Jean .
David Larsen: Hi. Can you talk a little bit about the Q1 revenue guide? It actually looked very good relative to what we were expecting. Did any deals maybe push from Q4 into Q1? And is that a positive indicator for the volumes we're seeing in hospitals and demand from hospitals? Thanks.
David Larsen: Hi. Can you talk a little bit about the Q1 revenue guide? It actually looked very good relative to what we were expecting. Did any deals maybe push from Q4 into Q1? And is that a positive indicator for the volumes we're seeing in hospitals and demand from hospitals? Thanks.
Speaker #2: Our final question comes from the line of Larson. Go ahead.
Speaker #2: our final question comes from the line of Larson with go ahead .
Speaker #2: our final question comes from the line of Larson with go ahead .
Speaker #2: BD .
Speaker #15: one Q Can you talk revenue guide ? actually It the Hi . looked very bit about good what we relative to were expecting
Speaker #15: . Did deals any push from for maybe Q one Q
Speaker #15: that A is that is positive indicator for the volumes in we're seeing hospitals demand from hospitals ? Thanks .
Randall Lipps: Yeah, we, you know, on the push, we did not see anything material push from Q4 to Q1. As it relates to Q1, I, we're seeing a little more linearity in the business right now, and I think that's really just important to recognize. The business is not only growing, but it's become increasingly, increasingly in this moment, predictable. That certainly helps us with implementations. It helps us manage costs. It helps us manage customer expectations in a very positive way. And so, yeah, we're happy to see the results as well.
Randall Lipps: Yeah, we, you know, on the push, we did not see anything material push from Q4 to Q1. As it relates to Q1, I, we're seeing a little more linearity in the business right now, and I think that's really just important to recognize. The business is not only growing, but it's become increasingly, increasingly in this moment, predictable. That certainly helps us with implementations. It helps us manage costs. It helps us manage customer expectations in a very positive way. And so, yeah, we're happy to see the results as well.
Speaker #7: you the on the know , on push , we did , we're Yeah , see we not we anything did not see material push from Q4 to Q1 as it relates to Q1 .
Speaker #7: I David , please seeing a we're linearity in the little more business right now , and I think
Speaker #7: I David , please seeing a we're linearity in the little more business right now , and I think
Speaker #7: . The business is not only growing , but increasingly in this it's moment become , predictable , increasingly . That's David helps us certainly implementations .
Speaker #7: helps us It with manage It us customer manage helps in a expectations way . positive And very so , yeah , the results as
David Larsen: And then when we use the phrase cloud and OmniSphere, does that mean that Omnicell is going to host all of the data for all of your clients with OmniSphere and Titan, and then the clients will kind of use the software to access that data, and you'll charge a hosting fee, and you can update the software overnight, immediately, in real time, across the entire network? Just, does that mean you're going to be hosting the data, or will, like, Amazon host it? Thanks.
David Larsen: And then when we use the phrase cloud and OmniSphere, does that mean that Omnicell is going to host all of the data for all of your clients with OmniSphere and Titan, and then the clients will kind of use the software to access that data, and you'll charge a hosting fee, and you can update the software overnight, immediately, in real time, across the entire network? Just, does that mean you're going to be hosting the data, or will, like, Amazon host it? Thanks.
Speaker #7: .
Speaker #15: use the And cloud and omnisphere , does that that omnicell host to all of the data for all of your clients Omnisphere and with then clients will kind use the software to access you'll a data , and and you fee charge update the overnight software hosting real time across the entire network .
Speaker #15: the Just that mean you're going to be does data or hosting the will like Amazon Thanks host it ?
Randall Lipps: Yeah, David, exactly. No, Omnicell will host it, and we'll be providing the oversight and of all the data. And just as you said, David, you've described it perfectly. The customers do not need to manage either the compute power, the storage power, or access power to their systems. We will make that easy, simple, and safe for them.
Randall Lipps: Yeah, David, exactly. No, Omnicell will host it, and we'll be providing the oversight and of all the data. And just as you said, David, you've described it perfectly. The customers do not need to manage either the compute power, the storage power, or access power to their systems. We will make that easy, simple, and safe for them.
Speaker #5: Lamisil David . we'll be will host it providing the oversight the and all the Exactly . data . And just as you said , David , you described it perfectly .
Speaker #5: The customers not need to do to their systems . We will make that easy , simple and safe for
David Larsen: Okay, and then just the last quick one: So at some point in time, over the next, call it decade, your clients are going to have to convert from XT to Titan. At some point, XT will not be supported, even if that's like in 10 years. Is that correct?
David Larsen: Okay, and then just the last quick one: So at some point in time, over the next, call it decade, your clients are going to have to convert from XT to Titan. At some point, XT will not be supported, even if that's like in 10 years. Is that correct?
Speaker #15: just the one . last quick at some So point in
Randall Lipps: Oh, for sure. Probably sooner, but yeah.
Randall Lipps: Oh, for sure. Probably sooner, but yeah.
David Larsen: Probably sooner. Okay. All right. Thank you.
David Larsen: Probably sooner. Okay. All right. Thank you.
Speaker #15: correct ?
Rachel Smith: Thanks, David.
Rachel Smith: Thanks, David.
Randall Lipps: Thank you, David.
Randall Lipps: Thank you, David.
Speaker #5: . Probably sooner . But for sure yeah ,
Operator: That concludes our question and answer session. I will now turn the call back over to Randall Lipps for closing remarks. Randall?
Operator: That concludes our question and answer session. I will now turn the call back over to Randall Lipps for closing remarks. Randall?
Speaker #15: Sooner. Okay. Probably. All right. Oh, you.
Speaker #15: Thank Thank you
Randall Lipps: Hey, well, thank you for joining us. A shout-out to the Omnicell team. We had an amazing year last year in innovation and launching new products. We opened this brand-new innovation center in Austin. We launched our new product, Titan. We've got the OmniSphere in more locations. It's just, you know, it's just one of those pivot moments for the company that in 30 years only comes around once in a while. And it's really a pleasure to see the enthusiasm there and this launch as we move toward the autonomous medication management world, which is not that far off. It's closer than you think. And tech is available, customers are ready, and Omnicell's got the products and people to make it happen. Thank you very much. We'll see you next time.
Randall Lipps: Hey, well, thank you for joining us. A shout-out to the Omnicell team. We had an amazing year last year in innovation and launching new products. We opened this brand-new innovation center in Austin. We launched our new product, Titan. We've got the OmniSphere in more locations. It's just, you know, it's just one of those pivot moments for the company that in 30 years only comes around once in a while. And it's really a pleasure to see the enthusiasm there and this launch as we move toward the autonomous medication management world, which is not that far off. It's closer than you think. And tech is available, customers are ready, and Omnicell's got the products and people to make it happen. Thank you very much. We'll see you next time.
Speaker #2: concludes our . answer session . I will now turn the call back over to Randall Lipps for closing remarks . Randall .
Speaker #5: Well , thank Hey . you joining for
Speaker #5: us . David A shout out to the Omnicell team . We had an amazing year last year and and innovation launching new products .
Speaker #5: We opened this brand new innovation center in Austin . We product launched our question and We've got Omnisphere and the locations . It's just one of those it's moments for the pivotal 30 years , that in only comes around once in it's really a pleasure there .
Speaker #5: And this as move we toward the autonomous management a while . medication is not enthusiasm that far off . which It's closer than you just , think .
Speaker #5: And tech is available. Customers are ready, and products and people to make it happen. Thank you very much. See you all next time. OMNICELL, INC. got the—
Operator: That concludes today's call. You may now disconnect.
Operator: That concludes today's call. You may now disconnect.
