Financial Analysis

Employee Benefits and Share-Based Compensation Equity Incentive Plans 1997 Employee Stock Purchase Plan The Company has an Employee Stock Purchase Plan (ESPP), under which employees can purchase shares of its common stock based on a percentage of their compensation, but not greater than 15% of their earnings; provided, however, an eligible employees right to purchase shares of the Companys common stock may not accrue at a rate which exceeds $25,000 of the fair market value of such shares for each calendar year in which such rights are outstanding. The purchase price per share must be equal to the lower of 85% of the fair value of the common stock at the beginning of a 24-month offering period or the end of each six-month purchasing period. 2009 Equity Incentive Plan The 2009 Equity Incentive Plan (2009 Plan), as amended, provides for the issuance of incentive stock options, RSAs, RSUs, PSUs, and other stock awards to the Companys employees, directors, and consultants. RSUs generally vest over periods of up to four years, with one-fourth of the shares vesting one year from the vesting commencement date with respect to initial grants, and the remaining shares vesting in 12 equal quarterly installments thereafter. Awards of restricted stock to non-employee directors are granted on the date of the annual meeting of stockholders and vest in full on the date of the next annual meeting of stockholders, provided such non-employee director remains a director on such date. PSUs granted …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

Debt and Credit Agreement On November 15, 2019, Omnicell, Inc. entered into an Amended and Restated Credit Agreement (as amended, the Prior A&R Credit Agreement) with the lenders from time to time party thereto, Wells Fargo Securities, LLC, Citizens Bank, N.A., and JPMorgan Chase Bank, N.A., as joint lead arrangers, and Wells Fargo Bank, National Association, as administrative agent. As referred to in this Note 10, Omnicell, Inc. refers only to Omnicell, Inc., excluding its subsidiaries. The Prior A&R Credit Agreement provided for (a) a five-year revolving credit facility of $500.0 million (the Prior Revolving Credit Facility) and (b) an uncommitted incremental loan facility of up to $250.0 million (the Prior Incremental Facility). In addition, the Prior A&R Credit Agreement included a letter of credit sub-limit of up to $15.0 million and a swing line loan sub-limit of up to $25.0 million. The Prior A&R Credit Agreement was subsequently amended on September 22, 2020 and March 29, 2023, to permit the issuance of the convertible senior notes and the purchase of the convertible note hedge transactions (as described in Note 11, Convertible Senior Notes ), expand the Companys flexibility to make restricted payments (including common stock repurchases), and replace the total net leverage covenant, as well as to remove and replace the interest rate benchmark based on the London interbank offered rate (LIBOR) and related LIBOR-based mechanics with an interest rate ben …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table summarizes the Companys revenues disaggregated by revenue type: Year Ended December 31, 2025 2024 2023 (In thousands) Connected devices, software licenses, and other $ 565,475 $ 539,168 $ 623,584 Consumables 100,222 91,339 84,977 Technical services 260,063 238,211 225,831 SaaS and Expert Services 259,085 243,520 212,720 Total revenues $ 1,184,845 $ 1,112,238 $ 1,147,112 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Fair Value of Financial Instruments The Company measures its financial instruments at fair value. The Companys cash, cash equivalents, and restricted cash are classified within Level 1 of the fair value hierarchy as they are valued primarily using quoted market prices utilizing market observable inputs. The Companys credit facility is classified within Level 2 as the valuation inputs are based on quoted prices or market observable data of similar instruments. The Companys convertible senior notes are classified within Level 2 as the valuation inputs are based on quoted prices in an inactive market on the last day in the reporting period. Refer to Note 10, Debt and Credit Agreement , for further information regarding the Companys credit facility and Note 11, Convertible Senior Notes , for further information regarding the Companys convertible senior notes. The following table summarizes the carrying amounts, net of unamortized debt issuance costs, and fair values of the convertible senior notes: As of December 31, 2025 2024 (In thousands) Net carrying amount: 2025 Notes $ $ 174,324 2029 Notes 167,596 166,397 Total net carrying amount $ 167,596 $ 340,721 Fair value: 2025 Notes $ $ 167,129 2029 Notes 185,869 181,320 Total fair value $ 185,869 $ 348,449 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and Intangible Assets Goodwill The following table represents changes in the carrying amount of goodwill: (In thousands) Balance as of December 31, 2023 $ 735,810 Foreign currency exchange rate fluctuations (1,083) Balance as of December 31, 2024 734,727 Foreign currency exchange rate fluctuations 3,219 Balance as of December 31, 2025 $ 737,946 Intangible Assets, Net The carrying amounts and useful lives of intangible assets were as follows: December 31, 2025 Gross carrying amount (1) Accumulated amortization Foreign currency exchange rate fluctuations Net carrying amount Useful life (years) (In thousands, except for years) Customer relationships $ 306,419 $ (148,990) $ (1,317) $ 156,112 10 - 30 Acquired technology 39,715 (26,358) 13,357 4 - 20 Trade names 2,400 (2,400) 5 Patents 1,656 (1,020) 636 2 - 20 Total intangible assets, net $ 350,190 $ (178,768) $ (1,317) $ 170,105 December 31, 2024 Gross carrying amount (1) Accumulated amortization Foreign currency exchange rate fluctuations Net carrying amount Useful life (years) (In thousands, except for years) Customer relationships $ 307,418 $ (133,111) $ (1,373) $ 172,934 4 - 30 Acquired technology 46,134 (32,421) 13,713 4 - 20 Trade names 2,400 (1,580) 820 5 Patents 2,291 (1,492) 799 2 - 20 Total intangible assets, net $ 358,243 $ (168,604) $ (1,373) $ 188,266 _________________________________________________ (1) The differences in gross carrying amounts between periods are primarily due to the write-off of certain fu …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes The following is a geographical breakdown of income (loss) before income taxes: Year Ended December 31, 2025 2024 2023 (In thousands) Domestic $ 10,154 $ 19,757 $ (28,105) Foreign 1,171 5,836 7,997 Income (loss) before income taxes $ 11,325 $ 25,593 $ (20,108) The provision for income taxes consisted of the following: Year Ended December 31, 2025 2024 2023 (In thousands) Current: Federal $ 3,309 $ 21,805 $ 8,556 State 5,490 4,964 1,471 Foreign 982 846 840 Total current income taxes 9,781 27,615 10,867 Deferred: Federal 2,215 (14,416) (8,002) State (2,023) 115 (2,261) Foreign (700) (252) (341) Total deferred income taxes (508) (14,553) (10,604) Total provision for income taxes $ 9,273 $ 13,062 $ 263 The following table provides the updated disclosure requirements under ASU 2023-09, which the Company adopted prospectively for annual periods beginning in 2025. The provision for income taxes differs from the amount computed by applying the statutory federal tax rate as follows: Year Ended December 31, 2025 (In thousands) % U.S. federal tax provision at statutory rate $ 2,378 21 % State income taxes, net of federal benefit (1) 2,313 20 % Foreign rate differential: Germany Statutory rate difference between Germany and U.S. 22 % Effect of changes in tax laws or rates enacted in the current period 850 8 % Net operating loss (NOL) adjustment due to audit settlement (1,083) (10) % Other 218 2 % Other (229) (2) % Effect of cross-border tax laws: Global intangible low-taxed …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Lessee Leases The Company has operating leases for office buildings, data centers, office equipment, and vehicles. The Companys leases have initial terms of one to twelve years. As of December 31, 2025, the Company did not have any additional material operating leases that were entered into, but not yet commenced. The maturity schedule of future minimum lease payments under operating leases and the reconciliation to the operating lease liabilities reported on the Consolidated Balance Sheets was as follows: December 31, 2025 (In thousands) 2026 $ 13,645 2027 11,665 2028 9,956 2029 3,154 2030 618 Thereafter 1,276 Total operating lease payments 40,314 Present value adjustment (3,565) Total operating lease liabilities (1) $ 36,749 _________________________________________________ (1) Amount consists of a current and long-term portion of operating lease liabilities of $12.0 million and $24.8 million, respectively. The current portion of the operating lease liabilities is included in accrued liabilities in the Consolidated Balance Sheets. Operating lease costs were $10.1 million, $10.3 million, and $10.8 million for the years ended December 31, 2025, 2024, and 2023, respectively. Short-term lease costs and variable lease costs were not material for the years ended December 31, 2025, 2024, and 2023. During the year ended December 31, 2023, the Company recorded impairment and abandonment charges to operating lease right-of-use assets of $10.0 million, in connection with restructuring …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently Adopted Authoritative Guidance In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The Company adopted ASU 2023-09 for the year ended December 31, 2025 on a prospective basis. Refer to Note 17, Income Taxes, for further information regarding the Companys income tax disclosures. Recently Issued Authoritative Guidance In November 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosure (Subtopic 220-40): Disaggregation of Income Statement Expenses , which requires disclosures of additional information and disaggregation of certain expenses included in the income statement. The amendments are effective for the Companys annual periods beginning January 1, 2027, and for interim periods within fiscal years beginning January 1, 2028, with early adoption permitted, and should be applied either prospectively or retrospectively. The Company is currently evaluating the impact ASU 2024-03 will have on its consolidated financial statements. In September 2025, the FASB issued ASU 2025-06, IntangiblesGoodwill and OtherInternal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for I …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Restructuring Expenses During 2023, due to challenging industry dynamics and macroeconomic conditions, the Company underwent several expense containment measures such as a reduction of its headcount across many of its functions and a reduction of its real estate footprint. During the year ended December 31, 2023, the restructuring initiatives incurred $15.5 million of employee severance costs and related expenses, net of reversals. Refer to Note 13, Lessee Leases for information regarding the Companys restructuring activities for the reduction of its real estate footprint and optimization of certain leased facilities. On April 26, 2024, the Companys management committed to the wind down of the Companys Medimat Robotic Dispensing System (RDS) product line, subject to local law and statutory works council consultation requirements. During the year ended December 31, 2024, the Company incurred approximately $6.6 million of employee severance costs and other expenses related to the RDS product line wind down, net of immaterial reversals of previously recognized restructuring expenses. The Company also incurred $5.4 million of inventory write-down charges during the year ended December 31, 2024 related to the RDS product line wind down that were recorded to cost of revenues in the Companys Consolidated Statements of Operations. Further, during the fourth quarter of 2025, the Company incurred additional charges related to the wind down of the Companys RDS product line. During the y …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Revenues Disaggregation of Revenues The following table summarizes the Companys revenues disaggregated by revenue type: Year Ended December 31, 2025 2024 2023 (In thousands) Connected devices, software licenses, and other $ 565,475 $ 539,168 $ 623,584 Consumables 100,222 91,339 84,977 Technical services 260,063 238,211 225,831 SaaS and Expert Services 259,085 243,520 212,720 Total revenues $ 1,184,845 $ 1,112,238 $ 1,147,112 The following table summarizes the Companys revenues disaggregated by geographic region, which is determined based on customer location: Year Ended December 31, 2025 2024 2023 (In thousands) United States $ 1,065,071 $ 1,012,373 $ 1,011,380 Rest of world (1) 119,774 99,865 135,732 Total revenues $ 1,184,845 $ 1,112,238 $ 1,147,112 _________________________________________________ (1) No individual country represented more than 10% of total revenues. Contract Assets and Contract Liabilities The following table reflects the Companys contract assets and contract liabilities: December 31, 2025 2024 (In thousands) Short-term unbilled receivables, net (1) $ 28,396 $ 32,917 Long-term unbilled receivables, net (2) 3,521 7,873 Total contract assets $ 31,917 $ 40,790 Short-term deferred revenues $ 171,861 $ 141,370 Long-term deferred revenues 63,254 76,123 Total contract liabilities $ 235,115 $ 217,493 _________________________________________________ (1) Included in accounts receivable and unbilled receivables in the Consolidated Balance Sheets. (2) Included in ot …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment Information The Companys one reportable segment derives revenues from sales of its products and related services, as described in Note 1, Organization and Summary of Significant Accounting Policies, which are sold in its principal market, the healthcare industry. The accounting policies of the Companys one reportable segment are the same as those described in the summary of significant accounting policies in Note 1. As the Company has a single reportable segment and is managed on a consolidated basis, the measure of segment profit or loss that the CODM uses to allocate resources and assess performance is consolidated net income (loss) as reported on the Consolidated Statements of Operations. The CODM uses this key measure to evaluate income generated from segment assets in deciding how to reinvest profits as well as monitor budget versus actual results. The CODM is also provided with certain segment assets, primarily those that impact liquidity, such as cash and cash equivalents, accounts receivable and inventories, as well as certain liabilities such as accounts payable and outstanding debt. Assets and liabilities provided to the CODM are consistent with those reported on the Consolidated Balance Sheets. In addition, the CODM is regularly provided with significant expenses, which are adjusted cost of product and service revenues and adjusted operating expenses. These significant expenses are adjusted for certain non-cash charges and expenses that are unrelated to the …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Employee Benefits and Share-Based Compensation Share-Based Compensation Expense The following table sets forth the total share-based compensation expense recognized in the Companys Condensed Consolidated Statements of Operations: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (In thousands) Cost of product and service revenues $ 996 $ 1,709 $ 3,921 $ 4,884 Research and development 722 1,062 2,964 3,276 Selling, general, and administrative 9,492 8,834 25,641 22,117 Total share-based compensation expense $ 11,210 $ 11,605 $ 32,526 $ 30,277 The Company capitalized approximately $0.5 million and $1.0 million during the three months ended September 30, 2025 and 2024, respectively, and $1.9 million and $2.7 million during the nine months ended September 30, 2025 and 2024, respectively, of share-based compensation expense to internal-use and external-use software development costs related to internal labor. The Company did not capitalize any material share-based compensation expense to inventory during the three and nine months ended September 30, 2025 and 2024. Employee Stock Purchase Plan (ESPP) The following assumptions were used to value shares under the ESPP: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Expected life, years 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Expected volatility, % 45.8% - 58.7% 33.7% - 58.7% 45.8% - 58.7% 33.7% - 58.7% Risk-free interest rate, % 3.9% - 5.0% 3.2% - 5.3% 3.9% - 5.2 …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

Debt and Credit Agreement On November 15, 2019, Omnicell, Inc. entered into an Amended and Restated Credit Agreement (as amended, the Prior A&R Credit Agreement) with the lenders from time to time party thereto, Wells Fargo Securities, LLC, Citizens Bank, N.A., and JPMorgan Chase Bank, N.A., as joint lead arrangers, and Wells Fargo Bank, National Association, as administrative agent. As referred to in this Note 10, Omnicell, Inc. refers only to Omnicell, Inc., excluding its subsidiaries. The Prior A&R Credit Agreement provided for (a) a five-year revolving credit facility of $500.0 million (the Prior Revolving Credit Facility) and (b) an uncommitted incremental loan facility of up to $250.0 million (the Prior Incremental Facility). In addition, the Prior A&R Credit Agreement included a letter of credit sub-limit of up to $15.0 million and a swing line loan sub-limit of up to $25.0 million. The Prior A&R Credit Agreement was subsequently amended on September 22, 2020 and March 29, 2023, to permit the issuance of the convertible senior notes and the purchase of the convertible note hedge transactions (as described in Note 11, Convertible Senior Notes ), expand the Companys flexibility to make restricted payments (including common stock repurchases), and replace the total net leverage covenant, as well as to remove and replace the interest rate benchmark based on the London interbank offered rate (LIBOR) and related LIBOR-based mechanics with an interest rate ben …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table summarizes the Companys revenues disaggregated by revenue type: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (In thousands) Connected devices, software licenses, and other $ 152,561 $ 135,672 $ 411,258 $ 381,280 Consumables 24,937 22,689 74,580 66,956 Technical services 67,275 59,583 192,420 177,419 SaaS and Expert Services 65,858 64,476 192,603 179,704 Total revenues $ 310,631 $ 282,420 $ 870,861 $ 805,359 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Cash and Cash Equivalents and Fair Value of Financial Instruments Cash and cash equivalents of $180.1 million and $369.2 million as of September 30, 2025 and December 31, 2024, respectively, consisted of bank accounts and highly-liquid U.S. Government money market funds held in sweep and asset management accounts with financial institutions of high credit quality. As of September 30, 2025 and December 31, 2024, cash equivalents were $131.1 million and $328.0 million, respectively, which consisted of money market funds held in sweep and asset management accounts. The Company recorded interest income on its cash and cash equivalents of $3.2 million and $7.0 million for the three months ended September 30, 2025 and 2024, respectively, and $10.5 million and $19.6 million for the nine months ended September 30, 2025 and 2024, respectively, which is included within interest and other income (expense), net in the Condensed Consolidated Statements of Operations. Fair Value Hierarchy The Company measures its financial instruments at fair value. The Companys cash, cash equivalents, and restricted cash are classified within Level 1 of the fair value hierarchy as they are valued primarily using quoted market prices utilizing market observable inputs. The Companys credit facility is classified within Level 2 as the valuation inputs are based on quoted prices or market observable data of similar instruments. The Companys convertible senior notes are classified within Level 2 as the valuati …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and Intangible Assets Goodwill The following table represents changes in the carrying amount of goodwill: (In thousands) Balance as of December 31, 2024 $ 734,727 Foreign currency exchange rate fluctuations 3,145 Balance as of September 30, 2025 $ 737,872 Intangible Assets, Net The carrying amounts and useful lives of intangible assets were as follows: September 30, 2025 Gross carrying amount (1) Accumulated amortization Foreign currency exchange rate fluctuations Net carrying amount Useful life (years) (In thousands, except for years) Customer relationships $ 306,419 $ (144,928) $ (1,316) $ 160,175 10 - 30 Acquired technology 45,379 (34,649) 10,730 4 - 20 Trade names 2,400 (1,940) 460 5 Patents 1,681 (1,002) 679 2 - 20 Total intangible assets, net $ 355,879 $ (182,519) $ (1,316) $ 172,044 December 31, 2024 Gross carrying amount (1) Accumulated amortization Foreign currency exchange rate fluctuations Net carrying amount Useful life (years) (In thousands, except for years) Customer relationships $ 307,418 $ (133,111) $ (1,373) $ 172,934 4 - 30 Acquired technology 46,134 (32,421) 13,713 4 - 20 Trade names 2,400 (1,580) 820 5 Patents 2,291 (1,492) 799 2 - 20 Total intangible assets, net $ 358,243 $ (168,604) $ (1,373) $ 188,266 _________________________________________________ (1) The differences in gross carrying amounts between periods are primarily due to the write-off of certain fully amortized intangible assets. Amortization expense of intangible assets was $5.3 mi …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes The Company generally provides for income taxes in interim periods based on the estimated annual effective tax rate for the year, adjusting for discrete items in the quarter in which they arise. For the nine months ended September 30, 2025 and 2024, the Company recorded a provision for income taxes of $6.5 million and $5.3 million, respectively, by applying its estimated annual effective tax rate to its year-to-date measure of ordinary income and adjusted for $3.2 million and $4.9 million, respectively, of discrete income tax expense primarily from equity compensation. The effective tax rate for the nine months ended September 30, 2025 differed from the statutory rate of 21% primarily due to the unfavorable impact of state taxes, non-deductible compensation and equity charges, partially offset by the favorable impact of the research and development credits and a foreign-derived intangible income (FDII) deduction. The effective tax rate for the nine months ended September 30, 2024 differed from the statutory rate of 21% primarily due to the benefit of the research and development credits and a FDII benefit deduction, partially offset by the unfavorable impact of the non-deductible compensation and equity charges. On July 4, 2025, the One Big Beautiful Bill Act (the OBBBA) was enacted in the United States, which includes significant tax reform provisions. Included in the OBBBA are provisions that allow for the immediate expensing of domestic United States research …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Lessee Leases The Company has operating leases for office buildings, data centers, office equipment, and vehicles. The Companys leases have initial terms of one to twelve years. As of September 30, 2025, the Company did not have any additional material operating leases that were entered into, but not yet commenced. The maturity schedule of future minimum lease payments under operating leases and the reconciliation to the operating lease liabilities reported on the Condensed Consolidated Balance Sheets was as follows: September 30, 2025 (In thousands) Remaining three months of 2025 $ 3,476 2026 13,554 2027 11,592 2028 9,906 2029 3,135 Thereafter 1,893 Total operating lease payments 43,556 Present value adjustment (4,066) Total operating lease liabilities (1) $ 39,490 _________________________________________________ (1) Amount consists of a current and long-term portion of operating lease liabilities of $11.9 million and $27.6 million, respectively. The current portion of the operating lease liabilities is included in accrued liabilities in the Condensed Consolidated Balance Sheets. Operating lease costs were $2.5 million for both the three months ended September 30, 2025 and 2024, and $7.6 million and $7.7 million for the nine months ended September 30, 2025 and 2024, respectively. Short-term lease costs and variable lease costs were not material for the three and nine months ended September 30, 2025 and 2024. The following table summarizes supplemental cash flow information …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently Adopted Authoritative Guidance There was no recently adopted authoritative guidance that is expected to have a material impact on the Companys Condensed Consolidated Financial Statements through the reporting date. Recently Issued Authoritative Guidance In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for the Companys annual periods beginning January 1, 2025, with early adoption permitted, and should be applied either prospectively or retrospectively. The Company plans to adopt ASU 2023-09 on a prospective basis for its fiscal year beginning January 1, 2025. Because the standard only affects disclosure requirements and not recognition or measurement of income taxes, the Company does not expect adoption to have a material impact on its consolidated financial condition, results of operations, or cash flows. The Company is currently evaluating the impact of the required disclosures on its consolidated financial statement disclosures. In March 2024, the SEC issued final rules under SEC Release No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors, to require registrants to disc …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Restructuring Expenses On April 26, 2024, the Companys management committed to the wind down of the Companys Medimat Robotic Dispensing System (RDS) product line, subject to local law and statutory works council consultation requirements. During the three and nine months ended September 30, 2024, the Company incurred approximately $0.6 million and $4.1 million, respectively, of employee severance costs and other expenses related to the RDS product line wind down, net of immaterial reversals of previously recognized restructuring expenses. In addition, during the nine months ended September 30, 2024, the Company incurred $5.4 million of inventory write-down charges related to the RDS product line wind down that were recorded to cost of revenues in the Companys Condensed Consolidated Statements of Operations. During the three and nine months ended September 30, 2025, the Company did not incur any material restructuring expenses. The following table summarizes the total employee-related restructuring expense recognized in the Companys Condensed Consolidated Statements of Operations: Three Months Ended September 30, Nine Months Ended September 30, 2024 2024 (In thousands) Cost of product and service revenues $ 642 $ 3,338 Research and development (15) 296 Selling, general, and administrative (7) 149 Total restructuring expense $ 620 $ 3,783 …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Revenues Revenue Recognition The Company earns revenues from sales of its products and related services, which are sold in the healthcare industry, its principal market. The Companys customer arrangements typically include one or more of the following revenue categories: Connected devices, software licenses, and other. Software-enabled connected devices and software licenses that manage and regulate the storage and dispensing of pharmaceuticals, consumables blister cards, and packaging equipment and other supplies. This revenue category is often sold through long-term, sole-source agreements. Solutions in this category include, but are not limited to, XT Series automated dispensing systems and products related to the Central Pharmacy Dispensing Service and IV Compounding Service. Consumables. Medication adherence packaging, labeling, and other one-time use packaging including multimed adherence packaging and single dose blister cards, which are used by retail, community, and outpatient pharmacies, as well as by institutional pharmacies serving long-term care and other sites outside the acute care hospital, and are designed to improve patient engagement and adherence to prescriptions. Technical services. Post-installation technical support and other related services (support and maintenance), including phone support, on-site service, parts, and access to unspecified software updates and enhancements, if and when available. This revenue category is often supported by multi-year …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment Information The Companys one reportable segment derives revenues from sales of its products and related services, as described in Note 3, Revenues, which are sold in its principal market, the healthcare industry. As the Company has a single reportable segment and is managed on a consolidated basis, the measure of segment profit or loss that the CODM uses to allocate resources and assess performance is consolidated net income (loss) as reported on the Condensed Consolidated Statements of Operations. The CODM uses this key measure to evaluate income generated from segment assets in deciding how to reinvest profits as well as monitor budget versus actual results. The CODM is also provided with certain segment assets, primarily those that impact liquidity, such as cash and cash equivalents, accounts receivable and inventories, as well as certain liabilities such as accounts payable and outstanding debt. Assets and liabilities provided to the CODM are consistent with those reported on the Condensed Consolidated Balance Sheets. In addition, the CODM is regularly provided with significant expenses, which are adjusted cost of revenues and adjusted operating expenses. These significant expenses are adjusted for certain non-cash charges and expenses that are unrelated to the Companys ongoing operations. Adjusted cost of revenues include cost of product revenues and cost of service revenues, and exclude certain items such as share-based compensation expense, amortization of acqu …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing