Anthony Petrone

Al declined to give segment margin or standalone CVI tax detail but reiterated the process is proceeding for the entire CooperSurgical business given strong interest.

Private label revenue share trend and margin impact. Management responded with context on this topic.

MiSight Japan target practice count and market sizing. Management responded with context on this topic.

Private label trends and CVI/CSI synergy assessment for strategic review. Management responded with context on this topic.

MiSight FY2026 growth expectations with Stellest competition. Management responded with context on this topic.

Channel inventory risks from tariffs and IVF executive order impact. Management responded with context on this topic.

MiSight inventory contraction seasonal pattern going forward. Management responded with context on this topic.

SiHy daily toric margin accretion and toric penetration trends. Management responded with context on this topic.

Pete outlined dual AI model: (1) embedded AI in products (e.g. Vivid Pioneer's 4-5 algorithms drive higher price and margin expansion), and (2) SaaS-based features sold as customizable cloud applications per scanner or fleet. CT and ultrasound leading SaaS approach. Intelerad platform serves as reading interface for deploying AI tools across inpatient and outpatient settings.

Jay confirmed 2026 tariffs below $250M (2025 level). Q1 is largest impact quarter, trailing down through year. No windfall from IEPA Supreme Court ruling. Tariffs assumed to remain in effect for rest of year. Refund submissions for 2025 tariffs planned but not included in guidance and accounting treatment TBD.

Pete confirmed no major like-for-like price step-ups entering 2026 but new products carry meaningful price premiums (e.g. Vivid Pioneer). Tariff-related pricing possible later in year. Jay confirmed IntelliRed expected to close in H1 2026, slightly dilutive in year one but offset by cost efficiency. Revenue approximately $270M growing low double digits with EBITDA north of 30%.

Pete clarified: 25% PET MPI market conversion = $1B Flyrcado without new scanners. PET system growth driven by both cardiology and oncology. Jay confirmed 2026 tariff impact will be below $265M current year level, structural supply chain changes, USMCA, selective pricing.

Jay confirmed semiconductor tariffs reflected but not most significant. On 2026 pathway, confirmed below $0.85 but wouldn't quantify further, will update quarterly.

Pete confirmed adoption/conversion is primary driver, not capital equipment availability. Growing business in geographical pods due to radiopharmaceutical half-life. Potential for significantly faster ramp once critical mass reached.

Jay deflected specific mid-20s question, referencing 120bps expansion despite low growth. Pete added new product launches in 2026 at higher margins will help.

Jay provided thorough margin bridge: 150bps from volume/mix/price, productivity offset inflation, ~100bps from one-time items. Noted not to extrapolate Q4 seasonality.

Karleen said no meaningful inventory build needed since many Envision components are similar to the legacy 3D gantry.

Karleen clarified the goal is Fusion capability in every lab (not one-for-one with Panther). Over 1/3 have Fusion now. Fusion menu will carry a pricing premium over legacy Panther assays.

Karleen declined to share contract details but pointed to molecular growth ex-HIV at low double digits as evidence of strong customer relationships.

Essex dismissed semiconductor supply concerns, noting they expanded their supplier network during the prior chip shortage and see no headwinds.

Steve framed current softness as cyclical within a multi-year LRP window. Each franchise has growth drivers. H5N1 compared to Zika, not assumed in guide but would be upside.

Steve expects a rolling replacement cycle rather than a large bolus. Essex noted Gynesonics complements MyoSure by targeting different fibroid types.

Management explained targeting already-engaged PCPs and tracking referral volume increases. Noted VirtualOx shows double-digit increase in home sleep tests but did not provide a specific conversion rate number.

Mick shared new 3-year resupply data showing 6.2% higher rate at 3 years. Patient motivation appears to last and accelerate over time. GLP-1 patients more adherent to CPAP even longer than to GLP-1 therapy itself.

Mick drew on 15+ years of competitive bidding experience. Current Medicare rates now in sync with private payers. Rules look similar to last round. Also discussed Apnimed Phase III, noting GLP-1s may have taken wind out of oral drug sails.

Mick said Lilly hasn't started DTC campaigns for sleep apnea yet, expects 6-12 months post-approval. ResMed proactively targeting high-volume GLP-1 PCPs with CME education, seeing measurable prescription increases.

Mick noted Lilly's own SURMOUNT-OSA data showed CPAP+GLP-1 combo patients did better than GLP-1 alone. AASM guidelines emphasize PAP as frontline. Expects DTC advertising within 6-12 months.

Mick indicated a largely benign pricing environment ahead with targeted increases only where costs remain elevated. No major change in U.S. HME purchasing patterns.

Pushed back on the A1C-threshold premise using CMS precedent and existing commercial policy, and gave a real-world utilization figure above 80%.

Jake pointed to registry data as reasonable estimate for RCT results. Population comes in with spectrum of A1c including some quite high. CGM targets behavior modification and medication adherence. Expects statistically significant improvement meeting reimbursement threshold. Full readout at ADA next month.

Jereme noted historical generational transitions take couple years. 15-day requires different prescription. Basal penetration target around 60% over time. Non-insulin T2 currently under 5%, significant room to grow. 15-day margin impact significant and also opens lower-reimbursement markets.

Jereme provided utilization hierarchy: T2 highest, prediabetes middle, non-diabetic lowest. Distribution still predominantly stelo.com; Amazon live for ~1 month with great uptake.

Geoff said the shift to high-growth tuck-ins is already underway; Thierry noted R&D+investments roughly doubled and no specific buyback plans, only tactical.

Martha described all puzzle pieces falling into place: breakthrough designation, CMS reimbursement, physician society guidelines, hospital demand. 18 million uncontrolled hypertension patients. Ardian could be even bigger than CAS given patient population.

Sean detailed 18M uncontrolled hypertension patients on drugs, addressable market about half of Medicare with current coverage. Emphasized demand is not the issue, coverage and center establishment are.