OMNICELL, INC., 10-Q filed on 8/6/2025
Quarterly Report
v3.25.2
Cover - shares
 6 Months Ended
Jun. 30, 2025
Jul. 30, 2025
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2025  
Document Transition Report false  
Entity File Number 000-33043  
Entity Registrant Name OMNICELL, INC  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 94-3166458  
Entity Address, Address Line One 4220 North Freeway  
Entity Address, City or Town Fort Worth  
Entity Address, State or Province TX  
Entity Address, Postal Zip Code 76137  
City Area Code 877  
Local Phone Number 415-9990  
Title of 12(b) Security Common Stock, $0.001 par value  
Trading Symbol OMCL  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   45,934,251
Entity Central Index Key 0000926326  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q2  
v3.25.2
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 399,004 $ 369,201
Accounts receivable and unbilled receivables, net of allowances of $10,086 and $6,645, respectively 232,682 256,398
Inventories 105,784 88,659
Prepaid expenses 29,023 25,942
Other current assets 78,283 75,293
Total current assets 844,776 815,493
Property and equipment, net 118,954 112,692
Long-term investment in sales-type leases, net 53,957 52,744
Operating lease right-of-use assets 28,255 25,607
Goodwill 738,488 734,727
Intangible assets, net 177,349 188,266
Long-term deferred tax assets 59,805 57,469
Prepaid commissions 51,884 54,656
Other long-term assets 72,028 79,306
Total assets 2,145,496 2,120,960
Current liabilities:    
Accounts payable 62,414 51,782
Accrued compensation 51,704 60,307
Accrued liabilities 151,876 167,895
Deferred revenues 153,597 141,370
Convertible senior notes, net 174,801 174,324
Total current liabilities 594,392 595,678
Long-term deferred revenues 80,447 76,123
Long-term deferred tax liabilities 1,313 1,108
Long-term operating lease liabilities 30,760 31,123
Other long-term liabilities 7,971 7,218
Convertible senior notes, net 166,994 166,397
Total liabilities 881,877 877,647
Commitments and contingencies (Note 14)
Stockholders’ equity:    
Preferred stock, $0.001 par value, 5,000 shares authorized; no shares issued 0 0
Common stock, $0.001 par value, 100,000 shares authorized; 57,238 and 56,665 shares issued; 46,419 and 46,382 shares outstanding, respectively 57 57
Treasury stock at cost, 10,819 and 10,283 shares outstanding, respectively (305,971) (290,319)
Additional paid-in capital 1,195,548 1,167,882
Retained earnings 381,504 382,888
Accumulated other comprehensive loss (7,519) (17,195)
Total stockholders’ equity 1,263,619 1,243,313
Total liabilities and stockholders’ equity $ 2,145,496 $ 2,120,960
v3.25.2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
shares in Thousands, $ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Allowance for credit losses on accounts receivable and unbilled receivables $ 10,086 $ 6,645
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Preferred stock, shares authorized (in shares) 5,000 5,000
Preferred stock, shares issued (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 100,000 100,000
Common stock, shares issued (in shares) 57,238 56,665
Common stock, shares outstanding (in shares) 46,419 46,382
Treasury stock, shares outstanding (in shares) 10,819 10,283
v3.25.2
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Total revenues $ 290,562 $ 276,788 $ 560,230 $ 522,939
Total cost of revenues 162,884 162,437 321,616 315,965
Gross profit 127,678 114,351 238,614 206,974
Operating expenses:        
Research and development 21,573 21,102 42,099 43,158
Selling, general, and administrative 97,985 90,025 200,014 182,439
Total operating expenses 119,558 111,127 242,113 225,597
Income (loss) from operations 8,120 3,224 (3,499) (18,623)
Interest and other income (expense), net 2,333 4,973 4,422 8,989
Income (loss) before income taxes 10,453 8,197 923 (9,634)
Provision for income taxes 4,814 4,462 2,307 2,307
Net income (loss) $ 5,639 $ 3,735 $ (1,384) $ (11,941)
Net income (loss) per share:        
Basic (in dollars per share) $ 0.12 $ 0.08 $ (0.03) $ (0.26)
Diluted (in dollars per share) $ 0.12 $ 0.08 $ (0.03) $ (0.26)
Weighted-average shares outstanding:        
Basic (in shares) 46,788 45,953 46,692 45,842
Diluted (in shares) 46,986 46,036 46,692 45,842
Product revenues        
Total revenues $ 163,172 $ 156,580 $ 308,340 $ 289,875
Total cost of revenues 91,919 99,381 177,504 191,822
Service revenues        
Total revenues 127,390 120,208 251,890 233,064
Total cost of revenues $ 70,965 $ 63,056 $ 144,112 $ 124,143
v3.25.2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Statement of Comprehensive Income [Abstract]        
Net income (loss) $ 5,639 $ 3,735 $ (1,384) $ (11,941)
Other comprehensive income (loss):        
Foreign currency translation adjustments 6,288 (47) 9,676 (1,446)
Other comprehensive income (loss) 6,288 (47) 9,676 (1,446)
Comprehensive income (loss) $ 11,927 $ 3,688 $ 8,292 $ (13,387)
v3.25.2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock
Treasury Stock
Additional Paid-In Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Balance at beginning of period (in shares) at Dec. 31, 2023   55,822        
Beginning balance at Dec. 31, 2023 $ 1,188,954 $ 56 $ (290,319) $ 1,122,292 $ 370,357 $ (13,432)
Balance at beginning of period (in shares) at Dec. 31, 2023     (10,283)      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income (loss) (15,676)       (15,676)  
Other comprehensive income (loss) (1,399)         (1,399)
Share-based compensation 9,381     9,381    
Issuance of common stock under employee stock plans (in shares)   385        
Issuance of common stock under employee stock plans 8,042     8,042    
Tax payments related to restricted stock units (705)     (705)    
Balance at end of period (in shares) at Mar. 31, 2024   56,207        
Ending balance at Mar. 31, 2024 1,188,597 $ 56 $ (290,319) 1,139,010 354,681 (14,831)
Balance at end of period (in shares) at Mar. 31, 2024     (10,283)      
Balance at beginning of period (in shares) at Dec. 31, 2023   55,822        
Beginning balance at Dec. 31, 2023 1,188,954 $ 56 $ (290,319) 1,122,292 370,357 (13,432)
Balance at beginning of period (in shares) at Dec. 31, 2023     (10,283)      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income (loss) (11,941)          
Other comprehensive income (loss) (1,446)          
Balance at end of period (in shares) at Jun. 30, 2024   56,277        
Ending balance at Jun. 30, 2024 1,202,808 $ 56 $ (290,319) 1,149,533 358,416 (14,878)
Balance at end of period (in shares) at Jun. 30, 2024     (10,283)      
Balance at beginning of period (in shares) at Mar. 31, 2024   56,207        
Beginning balance at Mar. 31, 2024 1,188,597 $ 56 $ (290,319) 1,139,010 354,681 (14,831)
Balance at beginning of period (in shares) at Mar. 31, 2024     (10,283)      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income (loss) 3,735       3,735  
Other comprehensive income (loss) (47)         (47)
Share-based compensation 11,010     11,010    
Issuance of common stock under employee stock plans (in shares)   70        
Issuance of common stock under employee stock plans 99     99    
Tax payments related to restricted stock units (586)     (586)    
Balance at end of period (in shares) at Jun. 30, 2024   56,277        
Ending balance at Jun. 30, 2024 $ 1,202,808 $ 56 $ (290,319) 1,149,533 358,416 (14,878)
Balance at end of period (in shares) at Jun. 30, 2024     (10,283)      
Balance at beginning of period (in shares) at Dec. 31, 2024 46,382 56,665        
Beginning balance at Dec. 31, 2024 $ 1,243,313 $ 57 $ (290,319) 1,167,882 382,888 (17,195)
Balance at beginning of period (in shares) at Dec. 31, 2024 (10,283)   (10,283)      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income (loss) $ (7,023)       (7,023)  
Other comprehensive income (loss) 3,388         3,388
Share-based compensation 11,547     11,547    
Issuance of common stock under employee stock plans (in shares)   462        
Issuance of common stock under employee stock plans 8,266     8,266    
Tax payments related to restricted stock units (2,391)     (2,391)    
Balance at end of period (in shares) at Mar. 31, 2025   57,127        
Ending balance at Mar. 31, 2025 $ 1,257,100 $ 57 $ (290,319) 1,185,304 375,865 (13,807)
Balance at end of period (in shares) at Mar. 31, 2025     (10,283)      
Balance at beginning of period (in shares) at Dec. 31, 2024 46,382 56,665        
Beginning balance at Dec. 31, 2024 $ 1,243,313 $ 57 $ (290,319) 1,167,882 382,888 (17,195)
Balance at beginning of period (in shares) at Dec. 31, 2024 (10,283)   (10,283)      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income (loss) $ (1,384)          
Other comprehensive income (loss) $ 9,676          
Balance at end of period (in shares) at Jun. 30, 2025 46,419 57,238        
Ending balance at Jun. 30, 2025 $ 1,263,619 $ 57 $ (305,971) 1,195,548 381,504 (7,519)
Balance at end of period (in shares) at Jun. 30, 2025 (10,819)   (10,819)      
Balance at beginning of period (in shares) at Mar. 31, 2025   57,127        
Beginning balance at Mar. 31, 2025 $ 1,257,100 $ 57 $ (290,319) 1,185,304 375,865 (13,807)
Balance at beginning of period (in shares) at Mar. 31, 2025     (10,283)      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income (loss) 5,639       5,639  
Other comprehensive income (loss) 6,288         6,288
Share-based compensation 11,205     11,205    
Issuance of common stock under employee stock plans (in shares)   111        
Tax payments related to restricted stock units (961)     (961)    
Stock repurchases (in shares)     (536)      
Stock repurchases $ (15,652)   $ (15,652)      
Balance at end of period (in shares) at Jun. 30, 2025 46,419 57,238        
Ending balance at Jun. 30, 2025 $ 1,263,619 $ 57 $ (305,971) $ 1,195,548 $ 381,504 $ (7,519)
Balance at end of period (in shares) at Jun. 30, 2025 (10,819)   (10,819)      
v3.25.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Operating Activities    
Net loss $ (1,384) $ (11,941)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Depreciation and amortization 39,582 42,090
Loss on disposal of assets 292 221
Share-based compensation expense 21,316 18,672
Deferred income taxes (2,131) (7,948)
Amortization of operating lease right-of-use assets 3,905 3,900
Inventory write-down 0 5,393
Amortization of debt issuance costs 1,461 1,943
Changes in operating assets and liabilities:    
Accounts receivable and unbilled receivables 25,863 10,898
Inventories (15,935) 11,160
Prepaid expenses (3,081) 3,750
Other current assets (4,526) 5,868
Investment in sales-type leases (1,367) (8,056)
Prepaid commissions 2,772 2,532
Other long-term assets 4,684 1,218
Accounts payable 10,689 4,751
Accrued compensation (8,603) (2,814)
Accrued liabilities (14,883) 9,247
Deferred revenues 15,103 22,085
Operating lease liabilities (5,831) (5,512)
Other long-term liabilities 753 1,196
Net cash provided by operating activities 68,679 108,653
Investing Activities    
External-use software development costs (8,709) (7,381)
Purchases of property and equipment (22,953) (18,508)
Net cash used in investing activities (31,662) (25,889)
Financing Activities    
Proceeds from issuances under stock-based compensation plans 8,266 8,141
Employees’ taxes paid related to restricted stock units (3,352) (1,291)
Stock repurchases (15,652) 0
Change in customer funds, net 3,307 (11,552)
Net cash used in financing activities (7,431) (4,702)
Effect of exchange rate changes on cash and cash equivalents 3,300 (802)
Net increase in cash, cash equivalents, and restricted cash 32,886 77,260
Cash, cash equivalents, and restricted cash at beginning of period 398,614 500,979
Cash, cash equivalents, and restricted cash at end of period 431,500 578,239
Reconciliation of cash, cash equivalents, and restricted cash to the Condensed Consolidated Balance Sheets:    
Cash and cash equivalents 399,004 556,781
Restricted cash included in other current assets 32,496 21,458
Cash, cash equivalents, and restricted cash at end of period 431,500 578,239
Supplemental disclosure of non-cash investing activities    
Unpaid purchases of property and equipment $ 692 $ 656
v3.25.2
Organization and Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2025
Accounting Policies [Abstract]  
Organization and Summary of Significant Accounting Policies Organization and Summary of Significant Accounting Policies
Business
Omnicell, Inc. was incorporated in California in 1992 under the name Omnicell Technologies, Inc. and reincorporated in Delaware in 2001 as Omnicell, Inc. The Company’s major products and related services are medication management solutions and adherence tools for healthcare systems and pharmacies, which are sold in its principal market, the healthcare industry. The Company’s market is primarily located in the United States. “Omnicell” or the “Company” refer to Omnicell, Inc. and its subsidiaries, collectively.
Basis of Presentation
The accompanying unaudited Condensed Consolidated Financial Statements reflect, in the opinion of management, all adjustments, consisting of normal recurring adjustments and accruals, necessary to present fairly the financial position of the Company as of June 30, 2025 and December 31, 2024, and the results of operations and comprehensive income (loss) for the three and six months ended June 30, 2025 and 2024, and cash flows for the six months ended June 30, 2025 and 2024. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) have been condensed or omitted in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and accompanying Notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 27, 2025. The Company’s results of operations and comprehensive income (loss) for the three and six months ended June 30, 2025, and cash flows for the six months ended June 30, 2025 are not necessarily indicative of results that may be expected for the year ending December 31, 2025, or for any future period.
Principles of Consolidation
The Condensed Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates
The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s Condensed Consolidated Financial Statements and accompanying Notes to Condensed Consolidated Financial Statements. These estimates are based on historical experience and various other assumptions that management believes to be reasonable. Although these estimates are based on management’s best knowledge of current events and actions that may impact the Company in the future, actual results may be different from the estimates. The Company’s critical accounting estimates are those that affect its financial statements materially and involve difficult, subjective, or complex judgments by management. Those estimates are revenue recognition, inventory valuation, and accounting for income taxes. As of June 30, 2025, the Company is not aware of any events or circumstances that would require an update to its estimates, judgments, or revisions to the carrying value of its assets or liabilities.
Segment Reporting
The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. The Company’s Chief Operating Decision Maker (“CODM”) is its Chief Executive Officer. The CODM allocates resources and evaluates the performance of the Company at the consolidated level using the Company’s consolidated net income (loss). In addition, the CODM is provided with certain segment assets and liabilities, primarily those that impact liquidity, as well as certain significant expenses. All significant operating decisions are based upon an analysis of the Company as one operating segment, which is the same as its reporting segment. Refer to Note 2, Segment Information, for further information regarding the Company’s segment disclosures.
Recently Adopted Authoritative Guidance
There was no recently adopted authoritative guidance that is expected to have a material impact on the Company’s 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 Company’s annual periods beginning January 1, 2025, with early adoption permitted, and should be applied either prospectively or retrospectively. The Company is currently evaluating the impact ASU 2023-09 will have on its consolidated financial statements, which is limited to financial statements 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 disclose certain climate-related information, including Scope 1 and Scope 2 greenhouse gas emissions and other climate-related topics, if material, in registration statements and annual reports. In April 2024, the SEC voluntarily stayed its climate disclosure rules as a result of pending legal challenges to facilitate an orderly judicial resolution. In March 2025, the SEC stated that it has ended its defense of the rule. The Company will continue to monitor any developments in the SEC’s rule and related litigation to determine what, if any, impact it will have on its consolidated financial statement disclosures.
In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense 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 Company’s 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.
There was no other recently issued and effective authoritative guidance that is expected to have a material impact on the Company’s Condensed Consolidated Financial Statements through the reporting date.
v3.25.2
Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company’s 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 Company’s 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 acquired intangibles, and certain restructuring and severance charges. Adjusted operating expenses include research and development, and selling, general and administrative expenses, and exclude certain items such as share-based compensation expense, amortization of acquired intangibles, legal and regulatory expenses, and certain restructuring and severance charges. Depreciation and amortization expense for the Company’s single reportable segment was $19.6 million and $20.8 million for the three months ended June 30, 2025 and 2024, respectively, and $39.6 million and $42.1 million for the six months ended June 30, 2025 and 2024, respectively.
The following table summarizes the Company’s reportable segment revenues and significant expenses, reconciled to the Company’s consolidated net income (loss):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(In thousands)
Total revenues$290,562 $276,788 $560,230 $522,939 
Less:
Adjusted cost of revenues(160,690)(154,499)(316,697)(302,656)
Adjusted operating expenses(105,739)(97,477)(210,093)(199,199)
Other segment items (1)
(16,013)(21,588)(36,939)(39,707)
Interest and other income (expense), net2,333 4,973 4,422 8,989 
Provision for income taxes4,814 4,462 2,307 2,307 
Net income (loss)$5,639 $3,735 $(1,384)$(11,941)
_________________________________________________
(1) Other segment items include certain non-cash charges and expenses that are unrelated to the Company’s ongoing operations. Such charges and expenses consist of items such as share-based compensation, amortization of acquired intangible assets, legal and regulatory expenses, and certain restructuring and severance charges.
v3.25.2
Revenues
 6 Months Ended
Jun. 30, 2025
Revenue Recognition [Abstract]  
Revenues 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 Company’s 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 or annual contractual agreements.
Software as a Service (“SaaS”) and Expert Services. Emerging software and service solutions which are offered on a subscription basis with fees typically based either on transaction volume or a fee over a specified period of time. Solutions in this category include, but are not limited to, EnlivenHealth®, Specialty Pharmacy Services, 340B solutions, Inventory Optimization Service, other software solutions, and services related to the Central Pharmacy Dispensing Service and IV Compounding Service.
The following table summarizes revenue recognition for each revenue category:
Revenue Category
Timing of Revenue Recognition
Income Statement Classification
Connected devices, software licenses, and otherPoint in time, as transfer of control occurs, generally upon installation and acceptance by the customerProduct
ConsumablesPoint in time, as transfer of control occurs, generally upon shipment to, or receipt by, customerProduct
Technical servicesOver time, as services are provided, typically ratably over the service termService
SaaS and Expert Services
Over time, as services are providedService
A portion of the Company’s sales are made to customers who are members of Group Purchasing Organizations (“GPOs”) and Federal agencies that purchase under a Federal Supply Schedule Contract with the Department of Veterans Affairs (the “GSA Contract”). GPOs are often fully or partially owned by the Company’s customers, and the Company pays fees to the GPO on completed contracts. The Company also pays the Industrial Funding Fee (“IFF”) to the Department of Veterans Affairs under the GSA Contract. The Company considers these fees consideration paid to customers and records them as reductions to revenue. Fees to GPOs and the IFF were $1.6 million and $2.4 million for the three months ended June 30, 2025 and 2024, respectively, and $3.8 million and $4.4 million for the six months ended June 30, 2025 and 2024, respectively.
Disaggregation of Revenues
The following table summarizes the Company’s revenues disaggregated by revenue type:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(In thousands)
Connected devices, software licenses, and other$138,620 $134,539 $258,697 $245,608 
Consumables24,552 22,041 49,643 44,267 
Technical services63,766 59,321 125,145 117,836 
SaaS and Expert Services
63,624 60,887 126,745 115,228 
Total revenues$290,562 $276,788 $560,230 $522,939 
The following table summarizes the Company’s revenues disaggregated by geographic region, which is determined based on customer location:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(In thousands)
United States$263,446 $255,317 $512,710 $473,493 
Rest of world
27,116 21,471 47,520 49,446 
Total revenues$290,562 $276,788 $560,230 $522,939 
Contract Assets and Contract Liabilities
The following table reflects the Company’s contract assets and contract liabilities:
June 30,
2025		December 31,
2024
(In thousands)
Short-term unbilled receivables, net (1)
$37,137 $32,917 
Long-term unbilled receivables, net (2)
5,747 7,873 
Total contract assets$42,884 $40,790 
Short-term deferred revenues$153,597 $141,370 
Long-term deferred revenues80,447 76,123 
Total contract liabilities$234,044 $217,493 
_________________________________________________
(1)    Included in accounts receivable and unbilled receivables in the Condensed Consolidated Balance Sheets.
(2)    Included in other long-term assets in the Condensed Consolidated Balance Sheets.
The portion of the transaction price allocated to the Company’s unsatisfied performance obligations for which invoicing has occurred is recorded as deferred revenues.
During the three and six months ended June 30, 2025, the Company recognized revenues of $38.6 million and $92.8 million, respectively, that were included in the corresponding gross short-term deferred revenues balance of $141.4 million as of December 31, 2024.
Deferred revenues from product sales primarily relate to delivered and invoiced products, pending installation and acceptance. Deferred revenues from service contracts primarily relate to services that have been invoiced, but services have not yet been provided. Short-term deferred revenues are expected to be recognized within the next twelve months. Long-term deferred revenues substantially consist of deferred revenues on long-term technical and SaaS and Expert Services contracts which have been invoiced and are expected to be recognized as revenue beyond twelve months, generally not more than ten years. The Company generally invoices customers for products upon shipment. Invoicing associated with the service portion of agreements is generally periodic and is billed on a monthly, quarterly, or annual basis, and in certain circumstances, multiple years are billed at one time. SaaS and Expert Services agreements are generally invoiced periodically on a monthly, quarterly or annual basis over the life of the agreement. In certain circumstances, portions of these agreements may be invoiced lump sum.
In addition, the Company has remaining performance obligations associated with contracts for which the associated products have been accepted or associated services have started, but where invoicing has not yet occurred and therefore are not reflected in deferred revenue. These remaining performance obligations are comprised of the non-variable portions of technical services and SaaS and Expert Services provided under non-cancellable contracts with minimum commitments. Remaining performance obligations which are not included in deferred revenues were $384.1 million as of June 30, 2025. Remaining performance obligations are expected to be recognized ratably over the remaining terms of the associated contracts, which terms vary but are generally not more than ten years. Remaining performance obligations do not include product obligations, services where the associated product has not been accepted, services which have not yet started, variable portions of services, and certain other obligations.
Significant Customers
There were no customers that accounted for more than 10% of the Company’s total revenues for the three and six months ended June 30, 2025 and 2024. Also, there were no customers that accounted for more than 10% of the Company’s accounts receivable and unbilled receivables balance as of June 30, 2025 and December 31, 2024.
v3.25.2
Net Income (Loss) Per Share
 6 Months Ended
Jun. 30, 2025
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share Net Income (Loss) Per Share
Basic net income (loss) per share is computed by dividing net income (loss) for the period by the weighted-average number of shares outstanding during the period. In periods of net loss, all potential common shares are anti-dilutive, so diluted net loss per share equals the basic net loss per share. In periods of net income, diluted net income per share is computed by dividing net income for the period by the basic weighted-average number of shares plus any dilutive potential common stock outstanding during the period, using the treasury stock method for share-based awards and warrants, and the if-converted method for convertible senior notes. Potential common stock includes the effect of outstanding dilutive stock options, restricted stock awards, and restricted stock units, as well as shares the Company could be obligated to issue from its convertible senior notes and warrants, as described in Note 11, Convertible Senior Notes. In the event of the conversion of the Company’s convertible senior notes, the principal portion will be settled in cash with any conversion consideration in excess of the principal portion settled in cash and/or shares of the Company’s common stock at the Company’s option, therefore, only the amounts expected to be settled in excess of the principal portion are considered dilutive in calculating earnings per share under the if-converted method. Any anti-dilutive weighted-average dilutive shares related to stock award plans, convertible senior notes, and warrants are excluded from the computation of the diluted net income per share.
The basic and diluted net income (loss) per share calculations were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(In thousands, except per share data)
Net income (loss)$5,639 $3,735 $(1,384)$(11,941)
Weighted-average shares outstanding – basic46,788 45,953 46,692 45,842 
Effect of dilutive securities from stock award plans198 83 — — 
Weighted-average shares outstanding – diluted46,986 46,036 46,692 45,842 
Net income (loss) per share – basic$0.12 $0.08 $(0.03)$(0.26)
Net income (loss) per share – diluted$0.12 $0.08 $(0.03)$(0.26)
Anti-dilutive weighted-average shares related to stock award plans2,881 2,719 3,657 3,247 
Anti-dilutive weighted-average shares related to convertible senior notes and warrants9,622 11,816 9,622 11,816 
v3.25.2
Cash and Cash Equivalents and Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Cash and Cash Equivalents and Fair Value of Financial Instruments Cash and Cash Equivalents and Fair Value of Financial Instruments
Cash and cash equivalents of $399.0 million and $369.2 million as of June 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 June 30, 2025 and December 31, 2024, cash equivalents were $352.2 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 $3.7 million and $6.6 million for the three months ended June 30, 2025 and 2024, respectively, and $7.3 million and $12.6 million for the six months ended June 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 Company’s 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 Company’s credit facility is classified within Level 2 as the valuation inputs are based on quoted prices or market observable data of similar instruments. The Company’s 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 Company’s credit facility and Note 11, Convertible Senior Notes, for further information regarding the Company’s convertible senior notes.
The following table summarizes the carrying amounts, net of unamortized debt issuance costs, and fair values of the convertible senior notes:
June 30,
2025		December 31,
2024
(In thousands)
Net carrying amount:
2025 Notes174,801 174,324 
2029 Notes166,994 166,397 
Total net carrying amount$341,795 $340,721 
Fair value:
2025 Notes$172,043 $167,129 
2029 Notes154,560 181,320 
Total fair value $326,603 $348,449 
v3.25.2
Balance Sheet Components
 6 Months Ended
Jun. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Components Balance Sheet Components
Balance sheet details are presented in the tables below:
June 30,
2025		December 31,
2024
(In thousands)
Inventories:
Raw materials$31,319 $33,501 
Work in process2,136 1,515 
Finished goods72,329 53,643 
Total inventories$105,784 $88,659 
Other current assets:
Funds held for customers, including restricted cash (1)
$45,838 $47,846 
Deferred cost of sales10,915 8,704 
Net investment in sales-type leases, current portion12,629 12,475 
Prepaid income taxes2,996 1,334 
Other current assets5,905 4,934 
Total other current assets$78,283 $75,293 
Other long-term assets:
External-use software development costs, net$56,229 $58,436 
Unbilled receivables, net5,747 7,873 
Deferred debt issuance costs2,553 2,940 
Other long-term assets7,499 10,057 
Total other long-term assets$72,028 $79,306 
Accrued liabilities:
Operating lease liabilities, current portion$11,855 $10,702 
Customer fund liabilities45,838 47,846 
Advance payments from customers11,773 12,760 
Rebate liabilities48,465 49,300 
Taxes payable3,328 11,443 
Other accrued liabilities30,617 35,844 
Total accrued liabilities$151,876 $167,895 
_________________________________________________
(1)    Includes restricted cash of $32.5 million and $29.4 million as of June 30, 2025 and December 31, 2024, respectively.
The Company capitalizes certain costs associated with cloud computing arrangements that are associated with service contracts, which are amortized using the straight-line method over the term of the arrangement. As of both June 30, 2025 and December 31, 2024, capitalized costs associated with cloud computing arrangements, net of accumulated amortization, were $5.0 million.
The following table summarizes the changes in accumulated balances of other comprehensive income (loss), which consisted of foreign currency translation adjustments:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(In thousands)
Beginning balance$(13,807)$(14,831)$(17,195)$(13,432)
Other comprehensive income (loss):6,288 (47)9,676 (1,446)
Ending balance$(7,519)$(14,878)$(7,519)$(14,878)
v3.25.2
Property and Equipment
 6 Months Ended
Jun. 30, 2025
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
The following table represents the property and equipment balances:
June 30,
2025		December 31,
2024
(In thousands)
Equipment$104,472 $99,728 
Furniture and fixtures4,934 4,809 
Leasehold improvements18,144 17,722 
Purchased software and internal-use software development costs156,137 146,287 
Construction in progress19,446 12,539 
Property and equipment, gross303,133 281,085 
Accumulated depreciation and amortization(184,179)(168,393)
Total property and equipment, net$118,954 $112,692 
Depreciation and amortization expense of property and equipment was $8.6 million and $8.7 million for the three months ended June 30, 2025 and 2024, respectively, and $17.2 million and $17.3 million for the six months ended June 30, 2025 and 2024, respectively.
The geographic location of the Company’s property and equipment, net, is based on the physical location in which it is located. The following table summarizes the geographic information for property and equipment, net:
June 30,
2025		December 31,
2024
(In thousands)
United States$115,192 $109,534 
Rest of world
3,762 3,158 
Total property and equipment, net$118,954 $112,692 
v3.25.2
External-Use Software Development Costs
 6 Months Ended
Jun. 30, 2025
Research and Development [Abstract]  
External-Use Software Development Costs External-Use Software Development Costs
The carrying amounts of external-use software development costs were as follows:
June 30,
2025		December 31,
2024
(In thousands)
Gross carrying amount$258,421 $249,335 
Accumulated amortization(202,192)(190,899)
External-use software development costs, net (1)
$56,229 $58,436 
_________________________________________________
(1)     Included in other long-term assets in the Condensed Consolidated Balance Sheets.
The Company recorded $5.6 million and $6.4 million to cost of product revenues for amortization of external-use software development costs for the three months ended June 30, 2025 and 2024, respectively, and $11.3 million and $13.1 million for the six months ended June 30, 2025 and 2024, respectively.
The estimated future amortization expenses for external-use software development costs were as follows:
June 30,
2025
(In thousands)
Remaining six months of 2025$10,498 
202617,961 
202712,098 
20288,241 
20295,614 
Thereafter1,817 
Total$56,229
v3.25.2
Goodwill and Intangible Assets
 6 Months Ended
Jun. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets 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 fluctuations3,761 
Balance as of June 30, 2025$738,488 
Intangible Assets, Net
The carrying amounts and useful lives of intangible assets were as follows:
June 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$307,418 $(141,907)$(1,167)$164,344 
4 - 30
Acquired technology45,379 (33,663)— 11,716 
4 - 20
Trade names2,400 (1,820)— 580 5
Patents1,681 (972)— 709 
2 - 20
Total intangible assets, net
$356,878 $(178,362)$(1,167)$177,349 
 
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 technology46,134 (32,421)— 13,713 
4 - 20
Trade names2,400 (1,580)— 820 5
Patents2,291 (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 million and $5.7 million for the three months ended June 30, 2025 and 2024, respectively, and $11.1 million and $11.7 million for the six months ended June 30, 2025 and 2024, respectively.
The estimated future amortization expenses for amortizable intangible assets were as follows:
June 30,
2025
(In thousands)
Remaining six months of 2025$10,119 
202618,041 
202716,233 
202815,145 
202913,647 
Thereafter104,164 
Total$177,349 
v3.25.2
Debt and Credit Agreement
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Debt and Credit Agreement 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 Company’s 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 benchmark based on the secured overnight financing rate (“SOFR”) as administered by the Federal Reserve Bank of New York and related SOFR-based mechanics.
Omnicell, Inc. entered into a Second Amended and Restated Credit Agreement (the “Second A&R Credit Agreement”) on October 10, 2023, with the lenders from time to time party thereto, Wells Fargo Securities, LLC, JPMorgan Chase Bank, N.A., PNC Capital Markets LLC and TD Securities (USA) LLC as joint lead arrangers and Wells Fargo Bank, National Association, as administrative agent. The Second A&R Credit Agreement supersedes the Prior A&R Credit Agreement and provides for (a) a five-year revolving credit facility of $350.0 million (the “Current Revolving Credit Facility”) and (b) an uncommitted incremental loan facility of up to an amount equal to the sum of (i) the greater of $250.0 million and 100% of the adjusted consolidated EBITDA for the last four quarters and (ii) additional amounts subject to pro forma compliance with certain consolidated secured net leverage ratio (the “Current Incremental Facility”). In addition, the Second A&R Credit Agreement includes 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
Second A&R Credit Agreement has an expiration date of October 10, 2028, subject to acceleration under certain conditions, upon which date all remaining outstanding borrowings will be due and payable.
Loans under the Current Revolving Credit Facility bear interest, at Omnicell, Inc.’s option, at a rate equal to either (a) the Adjusted Term SOFR (as defined in the Second A&R Credit Agreement), plus an applicable margin ranging from 1.50% to 2.25% per annum based on the Company’s Consolidated Total Net Leverage Ratio (as defined in the Second A&R Credit Agreement), or (b) an alternate base rate equal to the highest of (i) the prime rate, (ii) the federal funds rate plus 0.50%, and (iii) the Adjusted Term SOFR for an interest period of one month plus 1.00%, plus an applicable margin ranging from 0.50% to 1.25% per annum based on the Company’s Consolidated Total Net Leverage Ratio. Undrawn commitments under the Current Revolving Credit Facility are subject to a commitment fee ranging from 0.20% to 0.35% per annum based on the Company’s Consolidated Total Net Leverage Ratio on the average daily unused portion of the Current Revolving Credit Facility. Subject to the terms and conditions of the Current Revolving Credit Facility or Current Incremental Facility Omnicell, Inc. is permitted to make voluntary prepayments at any time without payment of a premium or penalty. The availability of funds under the Current Revolving Credit Facility may be subject to reduction in order to maintain compliance with the financial covenants under the Second A&R Credit Agreement.
The Second A&R Credit Agreement contains customary representations and warranties and customary affirmative and negative covenants applicable to the Company, including, among other things, restrictions on indebtedness, liens, investments, mergers, dispositions, dividends, and other distributions. The Second A&R Credit Agreement contains financial covenants that require the Company to not exceed a maximum consolidated secured net leverage ratio (not to exceed 3.00:1) and maintain a minimum consolidated interest coverage ratio (not to be less than 3.00:1). In addition, the Second A&R Credit Agreement contains certain customary events of default including, but not limited to, failure to pay interest, principal, and fees, or other amounts when due, material misrepresentations or misstatements in any representation or warranty, covenant defaults, certain cross defaults to other material indebtedness, certain judgment defaults, and events of bankruptcy.
Omnicell, Inc.’s obligations under the Second A&R Credit Agreement and, at the election of Omnicell, Inc. and the contracting counterparty, any secured swap obligations and banking services obligations owing to a lender (or an affiliate of a lender) are guaranteed by certain of its domestic subsidiaries and secured by substantially all of its and such subsidiary guarantors’ assets. In connection with entering into the Second A&R Credit Agreement, and as a condition precedent to borrowing loans thereunder, Omnicell, Inc. and certain of Omnicell, Inc.’s other direct and indirect subsidiaries have entered into certain ancillary agreements, including, but not limited to, a reaffirmation agreement, which amends certain terms of the existing collateral agreement and reaffirms their obligations under the existing guaranty agreement.
On November 18, 2024, Omnicell, Inc., as borrower, entered into a First Amendment to Second Amended and Restated Credit Agreement (the “Amendment”) with the lenders party thereto from time to time, and Wells Fargo Bank, National Association, as administrative agent for the lenders. Pursuant to the Amendment, effective as of November 19, 2024, the springing maturity for the revolving credit facility that is tied to the outstanding principal amount of Omnicell, Inc.’s existing 0.25% Convertible Senior Notes due 2025 (the “2025 Notes”) will apply only if more than $200 million in the aggregate principal amount of the 2025 Notes remain outstanding as of 91 days prior to the maturity date of the 2025 Notes.
As of both June 30, 2025 and December 31, 2024, the Company had $350.0 million of funds available under the Current Revolving Credit Facility. As of June 30, 2025 and December 31, 2024, the Company had no outstanding balance under the Current Revolving Credit Facility. The Company was in compliance with all covenants as of June 30, 2025.
Convertible Senior Notes
0.25% Convertible Senior Notes due 2025
On September 25, 2020, Omnicell, Inc. completed a private offering of $575.0 million aggregate principal amount of 0.25% convertible senior notes (the “2025 Notes”), including the exercise in full of the initial purchasers’ option to purchase up to an additional $75.0 million principal amount of the 2025 Notes. As referred to in this Note 11, “Omnicell, Inc.” or the “Company” refers only to Omnicell, Inc., excluding its subsidiaries. Omnicell, Inc. received proceeds from the issuance of the 2025 Notes of $559.7 million, net of $15.3 million of transaction fees and other debt issuance costs. The 2025 Notes bear interest at a rate of 0.25% per year, payable semiannually in arrears on March 15 and September 15 of each year, beginning on March 15, 2021. The 2025 Notes were issued pursuant to an indenture, dated September 25, 2020 (the “2025 Notes Indenture”), between the Company and U.S. Bank National Association, as trustee. The 2025 Notes are general senior, unsecured obligations of the Company and will mature on September 15, 2025, unless earlier redeemed, repurchased, or converted.
During the three months ended June 30, 2025 and December 31, 2024, none of the conditional conversion features of the 2025 Notes were triggered. As of May 15, 2025, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the 2025 Notes may convert all or any portion of their 2025 Notes at any
time. As the 2025 Notes will mature on September 15, 2025, the Company classified the 2025 Notes as a current liability in its Condensed Consolidated Financial Statements as of both June 30, 2025 and December 31, 2024.
Under the original terms of the 2025 Notes Indenture, upon conversion, the Company could satisfy its conversion obligation by paying or delivering cash, shares of its common stock, or a combination thereof, at the Company’s election, in the manner and subject to the terms and conditions provided in the 2025 Notes Indenture. On December 13, 2021, the Company irrevocably elected to fix its settlement method to a combination of cash and shares of the Company’s common stock with the specified cash amount per $1,000 principal amount of 2025 Notes of at least $1,000. As a result, for 2025 Notes converted on or after December 13, 2021, a converting noteholder will receive (i) up to $1,000 in cash per $1,000 principal amount of 2025 Notes and (ii) as of May 15, 2025, a converting noteholder will receive shares of the Company’s common stock for any conversion consideration in excess of $1,000. The initial conversion rate for the 2025 Notes is 10.2751 shares of the Company’s common stock per $1,000 principal amount of 2025 Notes, which is equivalent to an initial conversion price of approximately $97.32 per share of the Company’s common stock, subject to adjustment under certain circumstances in accordance with the terms of the 2025 Notes Indenture. In addition, following certain corporate events that could occur prior to the maturity date of the 2025 Notes or if the Company delivers a notice of redemption in respect of the 2025 Notes, the Company will, under certain circumstances, increase the conversion rate of the 2025 Notes for a holder who elects to convert its 2025 Notes (or any portion thereof) in connection with such a corporate event or convert its 2025 Notes called (or deemed called) for redemption during the related redemption period (as defined in the 2025 Notes Indenture), as the case may be.
If the Company undergoes a fundamental change, holders may require, subject to certain exceptions, the Company to repurchase for cash all or any portion of their 2025 Notes at a fundamental change repurchase price equal to 100% of the principal amount of the 2025 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. As of June 30, 2025, none of the criteria for a fundamental change or a conversion rate adjustment had been met.
As of June 30, 2025, the Company may redeem for cash all or any portion of the 2025 Notes, at its option, if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price for the 2025 Notes then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the 2025 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If the Company redeems less than all of the outstanding 2025 Notes, at least $150.0 million aggregate principal amount of the 2025 Notes must be outstanding and not subject to redemption as of the date of the relevant notice of redemption. No sinking fund is provided for in the 2025 Notes.
Partial Repurchase of the 2025 Notes
In November 2024, the Company entered into separate, privately negotiated transactions with certain holders of the 2025 Notes to repurchase $400.0 million of aggregate principal amount of the 2025 Notes for approximately $391.0 million of cash. The Company accounted for the partial repurchase of 2025 Notes as a debt extinguishment and recorded a $7.2 million gain on extinguishment, which included a partial write-off of previously deferred debt issuance costs of $1.8 million during the three months ended December 31, 2024.
The debt issuance costs associated with the remaining 2025 Notes are being amortized to interest expense over the term of the 2025 Notes using an effective interest rate of 0.80%. As of June 30, 2025, the remaining life of the 2025 Notes and the related issuance cost accretion is approximately 0.2 years.
Following the partial repurchase of the 2025 Notes, the maximum number of shares issuable upon conversion, including the effect of a fundamental change and subject to other conversion rate adjustments, would be 1.8 million shares. As of June 30, 2025, the if-converted value of the 2025 Notes did not exceed the principal amount.
1.00% Convertible Senior Notes due 2029
On November 22, 2024, Omnicell, Inc. completed a private offering of $172.5 million aggregate principal amount of 1.00% Convertible Senior Notes due 2029 (the “2029 Notes”), including the exercise in full of the initial purchasers’ option to purchase up to an additional $22.5 million aggregate principal amount of the 2029 Notes. Omnicell, Inc. received proceeds from the issuance of the 2029 Notes of $166.3 million, net of $6.2 million of transaction fees and other debt issuance costs. The 2029 Notes bear interest at a rate of 1.00% per year, payable semiannually in arrears on June 1 and December 1 of each year, beginning on June 1, 2025. The 2029 Notes were issued pursuant to an indenture, dated November 22, 2024 (the “2029 Notes Indenture”), between the Company and U.S. Bank Trust Company, National Association, as trustee. The 2029 Notes are general senior, unsecured obligations of the Company and will mature on December 1, 2029, unless earlier redeemed, purchased, or converted.
The 2029 Notes are convertible at any time prior to the close of business on the business day immediately preceding August 1, 2029, only under the following circumstances: (i) during any fiscal quarter commencing after the fiscal quarter ending on March 31, 2025 (and only during such fiscal quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price for the 2029 Notes on each applicable trading day; (ii) during the five business day period after any ten consecutive trading day period (the “measurement period”) in which the “trading price” (as defined in the 2029 Notes Indenture) per $1,000 principal amount of the 2029 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate for the 2029 Notes on each such trading day; (iii) if the Company calls such 2029 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date, but only with respect to the 2029 Notes called (or deemed called) for redemption; or (iv) upon the occurrence of specified corporate events as set forth in the 2029 Notes Indenture. On or after August 1, 2029 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the 2029 Notes may convert all or any portion of their 2029 Notes at any time, regardless of the foregoing conditions.
During the three months ended June 30, 2025 and December 31, 2024, none of the conditional conversion features of the 2029 Notes were triggered, and therefore, the 2029 Notes are not convertible during the third quarter of 2025, commencing on July 1, 2025, and were not convertible during the first quarter of 2025, commencing on January 1, 2025.
Upon conversion, the Company will pay cash up to the aggregate principal amount of the 2029 Notes to be converted and pay or deliver, as the case may be, cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election, in respect to the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount of the 2029 Notes being converted, in the manner and subject to the terms and conditions provided in the 2029 Notes Indenture.
The initial conversion rate for the 2029 Notes is 17.4662 shares of the Company’s common stock per $1,000 principal amount of the 2029 Notes, which is equivalent to an initial conversion price of approximately $57.25 per share of the Company’s common stock, subject to adjustment under certain circumstances in accordance with the terms of the 2029 Notes Indenture. In addition, following certain corporate events that occur prior to the maturity date of the 2029 Notes or if the Company delivers a notice of redemption in respect of the 2029 Notes, the Company will, under certain circumstances, increase the conversion rate of the 2029 Notes for a holder who elects to convert its 2029 Notes (or any portion thereof) in connection with such a corporate event or convert its 2029 Notes called (or deemed called) for redemption during the related redemption period (as defined in the 2029 Notes Indenture), as the case may be.
If the Company undergoes a fundamental change (as defined in the 2029 Notes Indenture), holders may require, subject to certain exceptions, the Company to repurchase for cash all or any portion of their 2029 Notes at a fundamental change repurchase price equal to 100% of the principal amount of the 2029 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. As of June 30, 2025, none of the criteria for a fundamental change or a conversion rate adjustment had been met.
The Company may not redeem the 2029 Notes prior to December 6, 2027. The Company may redeem for cash all or any portion of the 2029 Notes, at its option, on or after December 6, 2027, if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price for the 2029 Notes then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the 2029 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. The Company may not redeem less than all of the outstanding 2029 Notes unless at least $100.0 million aggregate principal amount of 2029 Notes are outstanding and not called for redemption as of the time the Company sends the related notice of redemption. No sinking fund is provided for in the 2029 Notes.
The debt issuance costs associated with the 2029 Notes are being amortized to interest expense over the term of the 2029 Notes using an effective interest rate of 1.75%. As of June 30, 2025, the remaining life of the 2029 Notes and the related issuance cost accretion is approximately 4.4 years.
The maximum number of shares issuable upon conversion, including the effect of a fundamental change and subject to other conversion rate adjustments, would be 3.0 million shares. As of June 30, 2025, the if-converted value of the 2029 Notes did not exceed the principal amount.
The 2025 Notes and the 2029 Notes consisted of the following balances:
June 30,
2025		December 31,
2024
(In thousands)
2025 Notes:
Principal amount$175,000 $175,000 
Unamortized debt issuance costs(199)(676)
Convertible senior notes, net, current$174,801 $174,324 
2029 Notes:
Principal amount$172,500 $172,500 
Unamortized debt issuance costs(5,506)(6,103)
Convertible senior notes, net, noncurrent$166,994 $166,397 
The following table summarizes the components of interest expense resulting from the 2025 Notes and the 2029 Notes recognized in interest and other income (expense), net in the Condensed Consolidated Statements of Operations:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(In thousands)
Contractual coupon interest:
2025 Notes$110 $359 $219 $719 
2029 Notes$432 $— 863 — 
Amortization of debt issuance costs:
2025 Notes$239 $778 $477 $1,555 
2029 Notes$294 $— 597 — 
Convertible Note Hedge and Warrant Transactions
In connection with the issuance of the 2025 Notes in September 2020 and the 2029 Notes in November 2024, the Company entered into convertible note hedges and warrants transactions, respectively, with certain initial purchasers of the 2025 Notes and the 2029 Notes or affiliates thereof and certain other financial institutions (the “option counterparties”).
The convertible note hedges related to the 2025 Notes consisted of call options for the Company to purchase, subject to anti-dilution adjustments substantially similar to those applicable to the 2025 Notes, up to approximately 5.9 million shares of the Company’s common stock, which is equal to the number of shares of the Company’s common stock underlying the 2025 Notes at the time of its issuance, at an initial strike price of approximately $97.32 per share. The convertible note hedges related to the 2029 Notes consisted of call options for the Company to purchase up to, subject to anti-dilution adjustments substantially similar to those applicable to the 2029 Notes, approximately 3.0 million shares of the Company’s common stock, which is equal to the number of shares of the Company’s common stock underlying the 2029 Notes at the time of its issuance, at an initial strike price of approximately $57.25 per share. The convertible note hedges will expire upon the maturity of the respective convertible notes, if not earlier exercised or terminated. The cost of the convertible note hedges related to the 2025 Notes and the 2029 Notes was approximately $100.6 million and $40.3 million, respectively, and each was accounted for as an equity instrument, each of which was recorded in additional paid-in capital in the Condensed Consolidated Balance Sheets. In addition, the Company recorded a deferred tax asset of $25.8 million and $10.2 million, respectively, at issuance related to the convertible note hedges for the 2025 Notes and the 2029 Notes. The convertible note hedges are expected generally to reduce the potential dilution to the Company’s common stock upon any conversion of the 2025 Notes or the 2029 Notes and/or offset any cash payments the Company may be required to make in excess of the principal amount of the converted 2025 Notes or the 2029 Notes.
Separately from the convertible note hedges, in September 2020 and November 2024, the Company entered into warrant transactions to sell to the respective option counterparties warrants to acquire, subject to customary anti-dilution adjustments, up to approximately 5.9 million shares of its common stock at an initial strike price of approximately $141.56 and approximately 3.0 million shares of its common stock at an initial strike price of approximately $84.82 per share related to the 2025 Notes and the 2029 Notes, respectively. The warrants require net share or net cash settlement upon the Company’s
election. The Company received aggregate proceeds of approximately $51.3 million and $25.2 million for the issuance of the warrants related to the 2025 Notes and the 2029 Notes, respectively, which was recorded in additional paid-in capital at issuance in the Condensed Consolidated Balance Sheets. The warrants could separately have a dilutive effect to the Company’s common stock to the extent that the market price per share of its common stock, as measured under the warrants, exceeds the strike price of the warrants.
In November 2024, in connection with the partial repurchase of the 2025 Notes, the Company entered into unwind agreements with the existing option counterparties to the convertible note hedges and warrants related to the 2025 Notes to terminate a portion of the existing convertible note hedges and warrants related to the 2025 Notes at a notional amount corresponding to the amount of the 2025 Notes repurchased, resulting in an immaterial gain
v3.25.2
Convertible Senior Notes
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Convertible Senior Notes 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 Company’s 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 benchmark based on the secured overnight financing rate (“SOFR”) as administered by the Federal Reserve Bank of New York and related SOFR-based mechanics.
Omnicell, Inc. entered into a Second Amended and Restated Credit Agreement (the “Second A&R Credit Agreement”) on October 10, 2023, with the lenders from time to time party thereto, Wells Fargo Securities, LLC, JPMorgan Chase Bank, N.A., PNC Capital Markets LLC and TD Securities (USA) LLC as joint lead arrangers and Wells Fargo Bank, National Association, as administrative agent. The Second A&R Credit Agreement supersedes the Prior A&R Credit Agreement and provides for (a) a five-year revolving credit facility of $350.0 million (the “Current Revolving Credit Facility”) and (b) an uncommitted incremental loan facility of up to an amount equal to the sum of (i) the greater of $250.0 million and 100% of the adjusted consolidated EBITDA for the last four quarters and (ii) additional amounts subject to pro forma compliance with certain consolidated secured net leverage ratio (the “Current Incremental Facility”). In addition, the Second A&R Credit Agreement includes 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
Second A&R Credit Agreement has an expiration date of October 10, 2028, subject to acceleration under certain conditions, upon which date all remaining outstanding borrowings will be due and payable.
Loans under the Current Revolving Credit Facility bear interest, at Omnicell, Inc.’s option, at a rate equal to either (a) the Adjusted Term SOFR (as defined in the Second A&R Credit Agreement), plus an applicable margin ranging from 1.50% to 2.25% per annum based on the Company’s Consolidated Total Net Leverage Ratio (as defined in the Second A&R Credit Agreement), or (b) an alternate base rate equal to the highest of (i) the prime rate, (ii) the federal funds rate plus 0.50%, and (iii) the Adjusted Term SOFR for an interest period of one month plus 1.00%, plus an applicable margin ranging from 0.50% to 1.25% per annum based on the Company’s Consolidated Total Net Leverage Ratio. Undrawn commitments under the Current Revolving Credit Facility are subject to a commitment fee ranging from 0.20% to 0.35% per annum based on the Company’s Consolidated Total Net Leverage Ratio on the average daily unused portion of the Current Revolving Credit Facility. Subject to the terms and conditions of the Current Revolving Credit Facility or Current Incremental Facility Omnicell, Inc. is permitted to make voluntary prepayments at any time without payment of a premium or penalty. The availability of funds under the Current Revolving Credit Facility may be subject to reduction in order to maintain compliance with the financial covenants under the Second A&R Credit Agreement.
The Second A&R Credit Agreement contains customary representations and warranties and customary affirmative and negative covenants applicable to the Company, including, among other things, restrictions on indebtedness, liens, investments, mergers, dispositions, dividends, and other distributions. The Second A&R Credit Agreement contains financial covenants that require the Company to not exceed a maximum consolidated secured net leverage ratio (not to exceed 3.00:1) and maintain a minimum consolidated interest coverage ratio (not to be less than 3.00:1). In addition, the Second A&R Credit Agreement contains certain customary events of default including, but not limited to, failure to pay interest, principal, and fees, or other amounts when due, material misrepresentations or misstatements in any representation or warranty, covenant defaults, certain cross defaults to other material indebtedness, certain judgment defaults, and events of bankruptcy.
Omnicell, Inc.’s obligations under the Second A&R Credit Agreement and, at the election of Omnicell, Inc. and the contracting counterparty, any secured swap obligations and banking services obligations owing to a lender (or an affiliate of a lender) are guaranteed by certain of its domestic subsidiaries and secured by substantially all of its and such subsidiary guarantors’ assets. In connection with entering into the Second A&R Credit Agreement, and as a condition precedent to borrowing loans thereunder, Omnicell, Inc. and certain of Omnicell, Inc.’s other direct and indirect subsidiaries have entered into certain ancillary agreements, including, but not limited to, a reaffirmation agreement, which amends certain terms of the existing collateral agreement and reaffirms their obligations under the existing guaranty agreement.
On November 18, 2024, Omnicell, Inc., as borrower, entered into a First Amendment to Second Amended and Restated Credit Agreement (the “Amendment”) with the lenders party thereto from time to time, and Wells Fargo Bank, National Association, as administrative agent for the lenders. Pursuant to the Amendment, effective as of November 19, 2024, the springing maturity for the revolving credit facility that is tied to the outstanding principal amount of Omnicell, Inc.’s existing 0.25% Convertible Senior Notes due 2025 (the “2025 Notes”) will apply only if more than $200 million in the aggregate principal amount of the 2025 Notes remain outstanding as of 91 days prior to the maturity date of the 2025 Notes.
As of both June 30, 2025 and December 31, 2024, the Company had $350.0 million of funds available under the Current Revolving Credit Facility. As of June 30, 2025 and December 31, 2024, the Company had no outstanding balance under the Current Revolving Credit Facility. The Company was in compliance with all covenants as of June 30, 2025.
Convertible Senior Notes
0.25% Convertible Senior Notes due 2025
On September 25, 2020, Omnicell, Inc. completed a private offering of $575.0 million aggregate principal amount of 0.25% convertible senior notes (the “2025 Notes”), including the exercise in full of the initial purchasers’ option to purchase up to an additional $75.0 million principal amount of the 2025 Notes. As referred to in this Note 11, “Omnicell, Inc.” or the “Company” refers only to Omnicell, Inc., excluding its subsidiaries. Omnicell, Inc. received proceeds from the issuance of the 2025 Notes of $559.7 million, net of $15.3 million of transaction fees and other debt issuance costs. The 2025 Notes bear interest at a rate of 0.25% per year, payable semiannually in arrears on March 15 and September 15 of each year, beginning on March 15, 2021. The 2025 Notes were issued pursuant to an indenture, dated September 25, 2020 (the “2025 Notes Indenture”), between the Company and U.S. Bank National Association, as trustee. The 2025 Notes are general senior, unsecured obligations of the Company and will mature on September 15, 2025, unless earlier redeemed, repurchased, or converted.
During the three months ended June 30, 2025 and December 31, 2024, none of the conditional conversion features of the 2025 Notes were triggered. As of May 15, 2025, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the 2025 Notes may convert all or any portion of their 2025 Notes at any
time. As the 2025 Notes will mature on September 15, 2025, the Company classified the 2025 Notes as a current liability in its Condensed Consolidated Financial Statements as of both June 30, 2025 and December 31, 2024.
Under the original terms of the 2025 Notes Indenture, upon conversion, the Company could satisfy its conversion obligation by paying or delivering cash, shares of its common stock, or a combination thereof, at the Company’s election, in the manner and subject to the terms and conditions provided in the 2025 Notes Indenture. On December 13, 2021, the Company irrevocably elected to fix its settlement method to a combination of cash and shares of the Company’s common stock with the specified cash amount per $1,000 principal amount of 2025 Notes of at least $1,000. As a result, for 2025 Notes converted on or after December 13, 2021, a converting noteholder will receive (i) up to $1,000 in cash per $1,000 principal amount of 2025 Notes and (ii) as of May 15, 2025, a converting noteholder will receive shares of the Company’s common stock for any conversion consideration in excess of $1,000. The initial conversion rate for the 2025 Notes is 10.2751 shares of the Company’s common stock per $1,000 principal amount of 2025 Notes, which is equivalent to an initial conversion price of approximately $97.32 per share of the Company’s common stock, subject to adjustment under certain circumstances in accordance with the terms of the 2025 Notes Indenture. In addition, following certain corporate events that could occur prior to the maturity date of the 2025 Notes or if the Company delivers a notice of redemption in respect of the 2025 Notes, the Company will, under certain circumstances, increase the conversion rate of the 2025 Notes for a holder who elects to convert its 2025 Notes (or any portion thereof) in connection with such a corporate event or convert its 2025 Notes called (or deemed called) for redemption during the related redemption period (as defined in the 2025 Notes Indenture), as the case may be.
If the Company undergoes a fundamental change, holders may require, subject to certain exceptions, the Company to repurchase for cash all or any portion of their 2025 Notes at a fundamental change repurchase price equal to 100% of the principal amount of the 2025 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. As of June 30, 2025, none of the criteria for a fundamental change or a conversion rate adjustment had been met.
As of June 30, 2025, the Company may redeem for cash all or any portion of the 2025 Notes, at its option, if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price for the 2025 Notes then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the 2025 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If the Company redeems less than all of the outstanding 2025 Notes, at least $150.0 million aggregate principal amount of the 2025 Notes must be outstanding and not subject to redemption as of the date of the relevant notice of redemption. No sinking fund is provided for in the 2025 Notes.
Partial Repurchase of the 2025 Notes
In November 2024, the Company entered into separate, privately negotiated transactions with certain holders of the 2025 Notes to repurchase $400.0 million of aggregate principal amount of the 2025 Notes for approximately $391.0 million of cash. The Company accounted for the partial repurchase of 2025 Notes as a debt extinguishment and recorded a $7.2 million gain on extinguishment, which included a partial write-off of previously deferred debt issuance costs of $1.8 million during the three months ended December 31, 2024.
The debt issuance costs associated with the remaining 2025 Notes are being amortized to interest expense over the term of the 2025 Notes using an effective interest rate of 0.80%. As of June 30, 2025, the remaining life of the 2025 Notes and the related issuance cost accretion is approximately 0.2 years.
Following the partial repurchase of the 2025 Notes, the maximum number of shares issuable upon conversion, including the effect of a fundamental change and subject to other conversion rate adjustments, would be 1.8 million shares. As of June 30, 2025, the if-converted value of the 2025 Notes did not exceed the principal amount.
1.00% Convertible Senior Notes due 2029
On November 22, 2024, Omnicell, Inc. completed a private offering of $172.5 million aggregate principal amount of 1.00% Convertible Senior Notes due 2029 (the “2029 Notes”), including the exercise in full of the initial purchasers’ option to purchase up to an additional $22.5 million aggregate principal amount of the 2029 Notes. Omnicell, Inc. received proceeds from the issuance of the 2029 Notes of $166.3 million, net of $6.2 million of transaction fees and other debt issuance costs. The 2029 Notes bear interest at a rate of 1.00% per year, payable semiannually in arrears on June 1 and December 1 of each year, beginning on June 1, 2025. The 2029 Notes were issued pursuant to an indenture, dated November 22, 2024 (the “2029 Notes Indenture”), between the Company and U.S. Bank Trust Company, National Association, as trustee. The 2029 Notes are general senior, unsecured obligations of the Company and will mature on December 1, 2029, unless earlier redeemed, purchased, or converted.
The 2029 Notes are convertible at any time prior to the close of business on the business day immediately preceding August 1, 2029, only under the following circumstances: (i) during any fiscal quarter commencing after the fiscal quarter ending on March 31, 2025 (and only during such fiscal quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price for the 2029 Notes on each applicable trading day; (ii) during the five business day period after any ten consecutive trading day period (the “measurement period”) in which the “trading price” (as defined in the 2029 Notes Indenture) per $1,000 principal amount of the 2029 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate for the 2029 Notes on each such trading day; (iii) if the Company calls such 2029 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date, but only with respect to the 2029 Notes called (or deemed called) for redemption; or (iv) upon the occurrence of specified corporate events as set forth in the 2029 Notes Indenture. On or after August 1, 2029 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the 2029 Notes may convert all or any portion of their 2029 Notes at any time, regardless of the foregoing conditions.
During the three months ended June 30, 2025 and December 31, 2024, none of the conditional conversion features of the 2029 Notes were triggered, and therefore, the 2029 Notes are not convertible during the third quarter of 2025, commencing on July 1, 2025, and were not convertible during the first quarter of 2025, commencing on January 1, 2025.
Upon conversion, the Company will pay cash up to the aggregate principal amount of the 2029 Notes to be converted and pay or deliver, as the case may be, cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election, in respect to the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount of the 2029 Notes being converted, in the manner and subject to the terms and conditions provided in the 2029 Notes Indenture.
The initial conversion rate for the 2029 Notes is 17.4662 shares of the Company’s common stock per $1,000 principal amount of the 2029 Notes, which is equivalent to an initial conversion price of approximately $57.25 per share of the Company’s common stock, subject to adjustment under certain circumstances in accordance with the terms of the 2029 Notes Indenture. In addition, following certain corporate events that occur prior to the maturity date of the 2029 Notes or if the Company delivers a notice of redemption in respect of the 2029 Notes, the Company will, under certain circumstances, increase the conversion rate of the 2029 Notes for a holder who elects to convert its 2029 Notes (or any portion thereof) in connection with such a corporate event or convert its 2029 Notes called (or deemed called) for redemption during the related redemption period (as defined in the 2029 Notes Indenture), as the case may be.
If the Company undergoes a fundamental change (as defined in the 2029 Notes Indenture), holders may require, subject to certain exceptions, the Company to repurchase for cash all or any portion of their 2029 Notes at a fundamental change repurchase price equal to 100% of the principal amount of the 2029 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. As of June 30, 2025, none of the criteria for a fundamental change or a conversion rate adjustment had been met.
The Company may not redeem the 2029 Notes prior to December 6, 2027. The Company may redeem for cash all or any portion of the 2029 Notes, at its option, on or after December 6, 2027, if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price for the 2029 Notes then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the 2029 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. The Company may not redeem less than all of the outstanding 2029 Notes unless at least $100.0 million aggregate principal amount of 2029 Notes are outstanding and not called for redemption as of the time the Company sends the related notice of redemption. No sinking fund is provided for in the 2029 Notes.
The debt issuance costs associated with the 2029 Notes are being amortized to interest expense over the term of the 2029 Notes using an effective interest rate of 1.75%. As of June 30, 2025, the remaining life of the 2029 Notes and the related issuance cost accretion is approximately 4.4 years.
The maximum number of shares issuable upon conversion, including the effect of a fundamental change and subject to other conversion rate adjustments, would be 3.0 million shares. As of June 30, 2025, the if-converted value of the 2029 Notes did not exceed the principal amount.
The 2025 Notes and the 2029 Notes consisted of the following balances:
June 30,
2025		December 31,
2024
(In thousands)
2025 Notes:
Principal amount$175,000 $175,000 
Unamortized debt issuance costs(199)(676)
Convertible senior notes, net, current$174,801 $174,324 
2029 Notes:
Principal amount$172,500 $172,500 
Unamortized debt issuance costs(5,506)(6,103)
Convertible senior notes, net, noncurrent$166,994 $166,397 
The following table summarizes the components of interest expense resulting from the 2025 Notes and the 2029 Notes recognized in interest and other income (expense), net in the Condensed Consolidated Statements of Operations:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(In thousands)
Contractual coupon interest:
2025 Notes$110 $359 $219 $719 
2029 Notes$432 $— 863 — 
Amortization of debt issuance costs:
2025 Notes$239 $778 $477 $1,555 
2029 Notes$294 $— 597 — 
Convertible Note Hedge and Warrant Transactions
In connection with the issuance of the 2025 Notes in September 2020 and the 2029 Notes in November 2024, the Company entered into convertible note hedges and warrants transactions, respectively, with certain initial purchasers of the 2025 Notes and the 2029 Notes or affiliates thereof and certain other financial institutions (the “option counterparties”).
The convertible note hedges related to the 2025 Notes consisted of call options for the Company to purchase, subject to anti-dilution adjustments substantially similar to those applicable to the 2025 Notes, up to approximately 5.9 million shares of the Company’s common stock, which is equal to the number of shares of the Company’s common stock underlying the 2025 Notes at the time of its issuance, at an initial strike price of approximately $97.32 per share. The convertible note hedges related to the 2029 Notes consisted of call options for the Company to purchase up to, subject to anti-dilution adjustments substantially similar to those applicable to the 2029 Notes, approximately 3.0 million shares of the Company’s common stock, which is equal to the number of shares of the Company’s common stock underlying the 2029 Notes at the time of its issuance, at an initial strike price of approximately $57.25 per share. The convertible note hedges will expire upon the maturity of the respective convertible notes, if not earlier exercised or terminated. The cost of the convertible note hedges related to the 2025 Notes and the 2029 Notes was approximately $100.6 million and $40.3 million, respectively, and each was accounted for as an equity instrument, each of which was recorded in additional paid-in capital in the Condensed Consolidated Balance Sheets. In addition, the Company recorded a deferred tax asset of $25.8 million and $10.2 million, respectively, at issuance related to the convertible note hedges for the 2025 Notes and the 2029 Notes. The convertible note hedges are expected generally to reduce the potential dilution to the Company’s common stock upon any conversion of the 2025 Notes or the 2029 Notes and/or offset any cash payments the Company may be required to make in excess of the principal amount of the converted 2025 Notes or the 2029 Notes.
Separately from the convertible note hedges, in September 2020 and November 2024, the Company entered into warrant transactions to sell to the respective option counterparties warrants to acquire, subject to customary anti-dilution adjustments, up to approximately 5.9 million shares of its common stock at an initial strike price of approximately $141.56 and approximately 3.0 million shares of its common stock at an initial strike price of approximately $84.82 per share related to the 2025 Notes and the 2029 Notes, respectively. The warrants require net share or net cash settlement upon the Company’s
election. The Company received aggregate proceeds of approximately $51.3 million and $25.2 million for the issuance of the warrants related to the 2025 Notes and the 2029 Notes, respectively, which was recorded in additional paid-in capital at issuance in the Condensed Consolidated Balance Sheets. The warrants could separately have a dilutive effect to the Company’s common stock to the extent that the market price per share of its common stock, as measured under the warrants, exceeds the strike price of the warrants.
In November 2024, in connection with the partial repurchase of the 2025 Notes, the Company entered into unwind agreements with the existing option counterparties to the convertible note hedges and warrants related to the 2025 Notes to terminate a portion of the existing convertible note hedges and warrants related to the 2025 Notes at a notional amount corresponding to the amount of the 2025 Notes repurchased, resulting in an immaterial gain
v3.25.2
Lessor Leases
 6 Months Ended
Jun. 30, 2025
Leases [Abstract]  
Lessor Leases Lessor Leases
Sales-Type Leases
The Company enters into non-cancelable sales-type lease arrangements with the leases varying in length from one to ten years. The Company optimizes cash flows by selling a majority of its sales-type leases, other than those relating to U.S. government hospitals and SaaS and Expert Services products, including Central Pharmacy Dispensing Service and IV Compounding Service, to third-party leasing finance companies on a non-recourse basis. The Company generally has no obligation to the leasing company once the lease has been sold.
The following table presents the Company’s income recognized from sales-type leases:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(In thousands)
Sales-type lease revenues$6,631 $11,576 $12,449 $18,612 
Cost of sales-type lease revenues(4,102)(7,110)(7,039)(11,297)
Selling profit on sales-type lease revenues$2,529 $4,466 $5,410 $7,315 
The receivables as a result of these types of transactions are collateralized by the underlying equipment leased and consist of the following components:
June 30,
2025		December 31,
2024
(In thousands)
Net minimum lease payments to be received$79,433 $77,976 
Less: Unearned interest income portion(12,847)(12,757)
Net investment in sales-type leases66,586 65,219 
Less: Current portion (1)
(12,629)(12,475)
Long-term investment in sales-type leases, net$53,957 $52,744 
_________________________________________________
(1)    The current portion of the net investment in sales-type leases is included in other current assets in the Condensed Consolidated Balance Sheets.
The carrying amount of the Company’s sales-type lease receivables is a reasonable estimate of fair value.
The maturity schedule of future minimum lease payments under sales-type leases retained in-house and the reconciliation to the net investment in sales-type leases reported on the Condensed Consolidated Balance Sheets was as follows:
June 30,
2025
(In thousands)
Remaining six months of 2025$8,536 
202615,310 
202714,266 
202813,176 
202910,511 
Thereafter17,634 
Total future minimum sales-type lease payments79,433 
Present value adjustment(12,847)
Total net investment in sales-type leases$66,586 
v3.25.2
Lessee Leases
 6 Months Ended
Jun. 30, 2025
Leases [Abstract]  
Lessee Leases Lessee Leases
The Company has operating leases for office buildings, data centers, office equipment, and vehicles. The Company’s leases have initial terms of one to twelve years. As of June 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:
June 30,
2025
(In thousands)
Remaining six months of 2025$6,976 
202613,601 
202711,637 
20289,948 
20293,176 
Thereafter1,935 
Total operating lease payments47,273 
Present value adjustment(4,658)
Total operating lease liabilities (1)
$42,615 
_________________________________________________
(1)    Amount consists of a current and long-term portion of operating lease liabilities of $11.9 million and $30.8 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 $2.7 million and $2.6 million for the three months ended June 30, 2025 and 2024, respectively, and $5.1 million and $5.2 million for the six months ended June 30, 2025 and 2024, respectively. Short-term lease costs and variable lease costs were not material for the three and six months ended June 30, 2025 and 2024.
The following table summarizes supplemental cash flow information related to the Company’s operating leases:
Six Months Ended June 30,
20252024
(In thousands)
Cash paid for amounts included in the measurement of lease liabilities$7,012 $6,765 
Right-of-use assets obtained in exchange for new lease liabilities$6,022 $5,509 
The following table summarizes the weighted-average remaining lease term and weighted-average discount rate related to the Company’s operating leases:
June 30,
2025		December 31,
2024
Weighted-average remaining lease term, years 3.84.1
Weighted-average discount rate, %5.5 %5.8 %
v3.25.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Purchase Obligations
In the ordinary course of business, the Company issues purchase orders based on its current manufacturing needs. As of June 30, 2025, the Company had non-cancelable purchase commitments of $139.2 million, of which $111.4 million are expected to be paid within the year ending December 31, 2025.
Legal Proceedings
The Company is currently involved in various legal proceedings.
In December 2023, Omnicell received a civil request for records issued by the U.S. Attorney’s Office for the Eastern District of Washington (the “Government”) related to the Company’s compliance with the pricing terms and conditions of its previous Federal Supply Schedule (“FSS”) contract with the federal government. In December 2024, the Government presented information identifying certain potential non-compliances with the FSS contract and associated potential violations of the False Claims Act. On May 5, 2025, Omnicell entered into a settlement agreement with the Government to resolve this matter. The settlement, which settled the matter without admission of liability, required payment of approximately $4.6 million to cover damages and other statutorily provided amounts under the False Claims Act, which was paid on May 19, 2025. The Company does not expect further engagement with the federal Government regarding this matter.
As required under ASC 450, Contingencies, the Company accrues for contingencies when it believes that a loss is probable and that it can reasonably estimate the amount of any such loss. The Company has not recorded any material accrual for contingent liabilities associated with any current legal proceedings based on its belief that any potential material loss, while reasonably possible, is not probable. Furthermore, any possible range of loss in these matters either cannot be reasonably estimated at this time or is not deemed material. The Company believes that it has valid defenses with respect to legal proceedings pending against it. However, litigation is inherently unpredictable, and it is possible that cash flows or results of operations could be materially affected in any particular period by the unfavorable resolution of legal proceedings or because of the diversion of management’s attention and the creation of significant expenses, regardless of outcome.
The Company is not a party to any legal proceedings that management believes may have a material impact on the Company’s financial position or results of operations.
v3.25.2
Income Taxes
 6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes 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 both the six months ended June 30, 2025 and 2024, the Company recorded a provision for income taxes of $2.3 million by applying its estimated annual effective tax rate to its year-to-date measure of ordinary income and adjusted for $2.0 million and $3.3 million, respectively, of discrete income tax expense primarily from equity compensation.
The effective tax rate for the six months ended June 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 six months ended June 30, 2024 differed from the statutory rate of 21% primarily due to the benefit of the research and development credits and a foreign-derived intangible income benefit deduction, partially offset by the unfavorable impact of the non-deductible compensation, equity charges, and Global Intangible Low-Taxed Income tax inclusion.
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 and development expenses, immediate expensing of certain capital expenditures, and other changes to the U.S. taxation of profits derived from foreign operations. The Company is currently evaluating the impact that the OBBBA may have on its consolidated financial statements.
The Organization for Economic Co-Operation and Development introduced Base Erosion and Profit Shifting Pillar Two rules that impose a global minimum tax rate of 15% on multi-national corporations. These rules did not have an impact on the Company’s provision for income taxes for the six months ended June 30, 2025.
As of June 30, 2025 and December 31, 2024, the Company had gross unrecognized tax benefits of $11.0 million and $10.5 million, respectively. The Company recognizes interest and penalties related to uncertain tax positions in interest and other income (expense), net in the Condensed Consolidated Statements of Operations. Accrued interest and penalties are included within other long-term liabilities on the Condensed Consolidated Balance Sheets. As of June 30, 2025 and December 31, 2024, the amount of accrued interest and penalties was $0.9 million and $0.6 million, respectively.
The Company files income tax returns in the United States and various state and foreign jurisdictions. In the normal course of business, the Company is subject to examinations by taxing authorities, including major jurisdictions such as the United States, Germany, Italy, France, the United Kingdom, and India. With few exceptions, as of June 30, 2025, the Company was no longer subject to U.S., state, and foreign tax examinations for years before 2021, 2020, and 2020, respectively.
v3.25.2
Employee Benefits and Share-Based Compensation
 6 Months Ended
Jun. 30, 2025
Share-Based Payment Arrangement [Abstract]  
Employee Benefits and Share-Based Compensation Employee Benefits and Share-Based Compensation
Share-Based Compensation Expense
The following table sets forth the total share-based compensation expense recognized in the Company’s Condensed Consolidated Statements of Operations:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(In thousands)
Cost of product and service revenues$1,207 $1,620 $2,925 $3,175 
Research and development1,022 1,139 2,242 2,214 
Selling, general, and administrative8,301 7,272 16,149 13,283 
Total share-based compensation expense$10,530 $10,031 $21,316 $18,672 
The Company capitalized approximately $0.6 million and $1.0 million during the three months ended June 30, 2025 and 2024, respectively, and $1.4 million and $1.7 million during the six months ended June 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 six months ended June 30, 2025 and 2024.
Employee Stock Purchase Plan (“ESPP”)
The following assumptions were used to value shares under the ESPP:
Three and Six Months Ended June 30,
20252024
Expected life, years
0.5 - 2.0
0.5 - 2.0
Expected volatility, %
45.8% - 58.7%
33.7% - 57.0%
Risk-free interest rate, %
4.1% - 5.2%
1.5% - 5.5%
Dividend yield, % — %— %
For the six months ended June 30, 2025 and 2024, employees purchased approximately 335,000 and 334,000 shares of common stock, respectively, under the ESPP at a weighted-average price of $24.57 and $24.06, respectively.
Stock Options
The following table summarizes the stock option activity under the 2009 Plan:
Number of
Shares		Weighted-Average
Exercise Price		Weighted-Average
Remaining Years		Aggregate
Intrinsic Value
(In thousands, except per share data)
Outstanding at December 31, 20241,760 $67.51 3.6$2,619 
Granted— — 
Exercised(1)30.92 
Expired(131)70.64 
Forfeited— — 
Outstanding at June 30, 20251,628 $67.29 3.2$84 
Exercisable at June 30, 20251,627 $67.23 3.2$84 
Vested and expected to vest at June 30, 2025 and thereafter1,628 $67.28 3.2$84 
Restricted Stock Units (“RSUs”)
The following table summarizes the RSU activity under the 2009 Plan:
Number of
Shares		Weighted-Average
Grant Date Fair Value		Weighted-Average
Remaining Years		Aggregate
Intrinsic Value
(In thousands, except per share data)
Outstanding at December 31, 20241,614 $54.58 1.6$71,849 
Granted 186 33.09 
Vested (186)73.11 
Forfeited(214)54.66 
Outstanding and unvested at June 30, 20251,400 $49.27 1.3$41,166 
As of June 30, 2025, total unrecognized compensation cost related to RSUs was $41.1 million, which is expected to be recognized over the remaining weighted-average vesting period of 2.6 years.
Performance-Based Stock Unit Awards (“PSUs”)
The following table summarizes the PSU activity under the 2009 Plan:
Number of
Shares		Weighted-Average
Grant Date Fair Value
(In thousands, except per share data)
Outstanding at December 31, 2024177 $28.67 
Granted (Awarded)139 32.66 
Additional granted based on performance achievement135 28.67 
Vested (Released)(97)28.67 
Forfeited— — 
Outstanding and unvested at June 30, 2025354 $30.24 
As of June 30, 2025, total unrecognized compensation cost related to PSUs was approximately $4.3 million, which is expected to be recognized over the remaining weighted-average vesting period of 1.3 years.
Summary of Shares Reserved for Future Issuance under Equity Incentive Plans
The Company had the following ordinary shares reserved for future issuance under its equity incentive plans as of June 30, 2025:
Number of Shares
(In thousands)
Stock options outstanding1,628 
Non-vested restricted stock awards1,808 
Shares authorized for future issuance4,691 
ESPP shares available for future issuance2,391 
Total shares reserved for future issuance10,518 
Stock Repurchase Programs
On May 22, 2025, the Company’s Board of Directors (the “Board”) authorized a new stock repurchase program, which does not expire, providing for the repurchase of up to $75.0 million of the Company’s common stock (the “2025 Repurchase Program”). The 2025 Repurchase Program is in addition to the stock repurchase program approved by the Board on August 2, 2016 providing for the repurchase of up to $50.0 million of the Company’s common stock (the “2016 Repurchase Program”). As of December 31, 2024, the maximum dollar value of shares that may yet be purchased under the 2016 Repurchase Program was $2.7 million and during the three and six months ended June 30, 2025, the 2016 Repurchase Program was completed.
The timing, price, and volume of repurchases are to be based on a variety of factors, including market conditions, relevant securities laws and regulatory requirements, and other corporate considerations, as determined by the Company’s management. Stock repurchases may be made from time to time on the open market, through block trades, in privately negotiated transactions, accelerated or other structured stock repurchase programs, or pursuant to a Rule 10b5-1 plan. The 2025 Repurchase Program does not obligate the Company to repurchase any specific number of shares, and the Company may terminate or suspend the 2025 Repurchase Program at any time.
During the three and six months ended June 30, 2025, the Company repurchased approximately 536,000 shares of its common stock under the repurchase programs at an average price of $29.24 per share for an aggregate purchase price of approximately $15.7 million. During the three and six months ended June 30, 2024, the Company did not repurchase any of its outstanding common stock under the 2016 Repurchase Program. As of June 30, 2025, the maximum dollar value of shares that may yet be purchased under the 2025 Repurchase Program was $62.1 million.
v3.25.2
Restructuring Expenses
 6 Months Ended
Jun. 30, 2025
Restructuring and Related Activities [Abstract]  
Restructuring Expenses Restructuring Expenses
On April 26, 2024, the Company’s management committed to the wind down of the Company’s Medimat Robotic Dispensing System (“RDS”) product line, subject to local law and statutory works council consultation requirements. During the six months ended June 30, 2024, the Company incurred approximately $3.3 million of employee severance costs and other expenses related to the RDS product line wind down. During the three months ended June 30, 2024, the Company did not incur any additional employee-related expenses related to the RDS product line wind down. In addition, during the three and six months ended June 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 Company’s Condensed Consolidated Statements of Operations. During the three and six months ended June 30, 2025, the Company did not incur any material restructuring expenses.
The following table summarizes the total employee-related restructuring expense recognized in the Company’s Condensed Consolidated Statements of Operations:
Six Months Ended June 30,
2024
(In thousands)
Cost of product and service revenues$2,696 
Research and development311 
Selling, general, and administrative156 
Total restructuring expense$3,163 
v3.25.2
Insider Trading Arrangements
 3 Months Ended
Jun. 30, 2025
shares
Trading Arrangements, by Individual  
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Corey J. Manley [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
During the three months ended June 30, 2025, Corey J. Manley, the Company’s Executive Vice President and Chief Legal and Administrative Officer, adopted a new “Rule 10b5-1 trading arrangement” (as defined in Item 408(a) of Regulation S-K) on June 13, 2025, which is intended to satisfy the Rule 10b5-1(c) affirmative defense. Mr. Manley’s trading plan is effective from September 12, 2025 until the earlier of: (1) June 12, 2026; or (2) the date on which all of the transactions under the trading plan are completed. The trading plan is intended to let Mr. Manley sell up to 46,131 shares of common stock, which represents a combination of previously vested shares and gross amounts of shares that will vest over the duration of the plan (shares that will actually be sold under the plan are net of tax withholding). As of the date of this report, none of the shares were sold and no other adjustments were made to the trading plan during the current reporting period.
Name Corey J. Manley
Title Executive Vice President and Chief Legal and Administrative Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date June 13, 2025
Expiration Date June 12, 2026
Arrangement Duration 364 days
Aggregate Available 46,131
v3.25.2
Organization and Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Jun. 30, 2025
Accounting Policies [Abstract]  
Basis of Presentation
The accompanying unaudited Condensed Consolidated Financial Statements reflect, in the opinion of management, all adjustments, consisting of normal recurring adjustments and accruals, necessary to present fairly the financial position of the Company as of June 30, 2025 and December 31, 2024, and the results of operations and comprehensive income (loss) for the three and six months ended June 30, 2025 and 2024, and cash flows for the six months ended June 30, 2025 and 2024. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) have been condensed or omitted in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and accompanying Notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 27, 2025. The Company’s results of operations and comprehensive income (loss) for the three and six months ended June 30, 2025, and cash flows for the six months ended June 30, 2025 are not necessarily indicative of results that may be expected for the year ending December 31, 2025, or for any future period.
Principles of Consolidation
The Condensed Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s Condensed Consolidated Financial Statements and accompanying Notes to Condensed Consolidated Financial Statements. These estimates are based on historical experience and various other assumptions that management believes to be reasonable. Although these estimates are based on management’s best knowledge of current events and actions that may impact the Company in the future, actual results may be different from the estimates. The Company’s critical accounting estimates are those that affect its financial statements materially and involve difficult, subjective, or complex judgments by management. Those estimates are revenue recognition, inventory valuation, and accounting for income taxes.
Segment Reporting
The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. The Company’s Chief Operating Decision Maker (“CODM”) is its Chief Executive Officer. The CODM allocates resources and evaluates the performance of the Company at the consolidated level using the Company’s consolidated net income (loss). In addition, the CODM is provided with certain segment assets and liabilities, primarily those that impact liquidity, as well as certain significant expenses. All significant operating decisions are based upon an analysis of the Company as one operating segment, which is the same as its reporting segment. Refer to Note 2, Segment Information, for further information regarding the Company’s segment disclosures.
Recently Adopted and Issued Authoritative Guidance
Recently Adopted Authoritative Guidance
There was no recently adopted authoritative guidance that is expected to have a material impact on the Company’s 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 Company’s annual periods beginning January 1, 2025, with early adoption permitted, and should be applied either prospectively or retrospectively. The Company is currently evaluating the impact ASU 2023-09 will have on its consolidated financial statements, which is limited to financial statements 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 disclose certain climate-related information, including Scope 1 and Scope 2 greenhouse gas emissions and other climate-related topics, if material, in registration statements and annual reports. In April 2024, the SEC voluntarily stayed its climate disclosure rules as a result of pending legal challenges to facilitate an orderly judicial resolution. In March 2025, the SEC stated that it has ended its defense of the rule. The Company will continue to monitor any developments in the SEC’s rule and related litigation to determine what, if any, impact it will have on its consolidated financial statement disclosures.
In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense 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 Company’s 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.
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 Company’s 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 or annual contractual agreements.
Software as a Service (“SaaS”) and Expert Services. Emerging software and service solutions which are offered on a subscription basis with fees typically based either on transaction volume or a fee over a specified period of time. Solutions in this category include, but are not limited to, EnlivenHealth®, Specialty Pharmacy Services, 340B solutions, Inventory Optimization Service, other software solutions, and services related to the Central Pharmacy Dispensing Service and IV Compounding Service.
The following table summarizes revenue recognition for each revenue category:
Revenue Category
Timing of Revenue Recognition
Income Statement Classification
Connected devices, software licenses, and otherPoint in time, as transfer of control occurs, generally upon installation and acceptance by the customerProduct
ConsumablesPoint in time, as transfer of control occurs, generally upon shipment to, or receipt by, customerProduct
Technical servicesOver time, as services are provided, typically ratably over the service termService
SaaS and Expert Services
Over time, as services are providedService
A portion of the Company’s sales are made to customers who are members of Group Purchasing Organizations (“GPOs”) and Federal agencies that purchase under a Federal Supply Schedule Contract with the Department of Veterans Affairs (the “GSA Contract”). GPOs are often fully or partially owned by the Company’s customers, and the Company pays fees to the GPO on completed contracts. The Company also pays the Industrial Funding Fee (“IFF”) to the Department of Veterans Affairs under the GSA Contract. The Company considers these fees consideration paid to customers and records them as reductions to revenue.
Fair Value Hierarchy The Company measures its financial instruments at fair value. The Company’s 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 Company’s credit facility is classified within Level 2 as the valuation inputs are based on quoted prices or market observable data of similar instruments. The Company’s 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.
Commitments and Contingencies
As required under ASC 450, Contingencies, the Company accrues for contingencies when it believes that a loss is probable and that it can reasonably estimate the amount of any such loss. The Company has not recorded any material accrual for contingent liabilities associated with any current legal proceedings based on its belief that any potential material loss, while reasonably possible, is not probable. Furthermore, any possible range of loss in these matters either cannot be reasonably estimated at this time or is not deemed material. The Company believes that it has valid defenses with respect to legal proceedings pending against it. However, litigation is inherently unpredictable, and it is possible that cash flows or results of operations could be materially affected in any particular period by the unfavorable resolution of legal proceedings or because of the diversion of management’s attention and the creation of significant expenses, regardless of outcome.
The Company is not a party to any legal proceedings that management believes may have a material impact on the Company’s financial position or results of operations.
Net Loss Per Share
Basic net income (loss) per share is computed by dividing net income (loss) for the period by the weighted-average number of shares outstanding during the period. In periods of net loss, all potential common shares are anti-dilutive, so diluted net loss per share equals the basic net loss per share. In periods of net income, diluted net income per share is computed by dividing net income for the period by the basic weighted-average number of shares plus any dilutive potential common stock outstanding during the period, using the treasury stock method for share-based awards and warrants, and the if-converted method for convertible senior notes. Potential common stock includes the effect of outstanding dilutive stock options, restricted stock awards, and restricted stock units, as well as shares the Company could be obligated to issue from its convertible senior notes and warrants, as described in Note 11, Convertible Senior Notes. In the event of the conversion of the Company’s convertible senior notes, the principal portion will be settled in cash with any conversion consideration in excess of the principal portion settled in cash and/or shares of the Company’s common stock at the Company’s option, therefore, only the amounts expected to be settled in excess of the principal portion are considered dilutive in calculating earnings per share under the if-converted method. Any anti-dilutive weighted-average dilutive shares related to stock award plans, convertible senior notes, and warrants are excluded from the computation of the diluted net income per share.
Cloud Computing Costs The Company capitalizes certain costs associated with cloud computing arrangements that are associated with service contracts, which are amortized using the straight-line method over the term of the arrangement.
v3.25.2
Segment Information (Tables)
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information by Statement of Operations
The following table summarizes the Company’s reportable segment revenues and significant expenses, reconciled to the Company’s consolidated net income (loss):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(In thousands)
Total revenues$290,562 $276,788 $560,230 $522,939 
Less:
Adjusted cost of revenues(160,690)(154,499)(316,697)(302,656)
Adjusted operating expenses(105,739)(97,477)(210,093)(199,199)
Other segment items (1)
(16,013)(21,588)(36,939)(39,707)
Interest and other income (expense), net2,333 4,973 4,422 8,989 
Provision for income taxes4,814 4,462 2,307 2,307 
Net income (loss)$5,639 $3,735 $(1,384)$(11,941)
_________________________________________________
(1) Other segment items include certain non-cash charges and expenses that are unrelated to the Company’s ongoing operations. Such charges and expenses consist of items such as share-based compensation, amortization of acquired intangible assets, legal and regulatory expenses, and certain restructuring and severance charges.
v3.25.2
Revenues (Tables)
 6 Months Ended
Jun. 30, 2025
Revenue Recognition [Abstract]  
Schedule of Revenue Recognition for Revenue Categories
The following table summarizes revenue recognition for each revenue category:
Revenue Category
Timing of Revenue Recognition
Income Statement Classification
Connected devices, software licenses, and otherPoint in time, as transfer of control occurs, generally upon installation and acceptance by the customerProduct
ConsumablesPoint in time, as transfer of control occurs, generally upon shipment to, or receipt by, customerProduct
Technical servicesOver time, as services are provided, typically ratably over the service termService
SaaS and Expert Services
Over time, as services are providedService
Schedule of Disaggregation of Revenue
The following table summarizes the Company’s revenues disaggregated by revenue type:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(In thousands)
Connected devices, software licenses, and other$138,620 $134,539 $258,697 $245,608 
Consumables24,552 22,041 49,643 44,267 
Technical services63,766 59,321 125,145 117,836 
SaaS and Expert Services
63,624 60,887 126,745 115,228 
Total revenues$290,562 $276,788 $560,230 $522,939 
Schedule of Disaggregation of Revenues by Geographical Location
The following table summarizes the Company’s revenues disaggregated by geographic region, which is determined based on customer location:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(In thousands)
United States$263,446 $255,317 $512,710 $473,493 
Rest of world
27,116 21,471 47,520 49,446 
Total revenues$290,562 $276,788 $560,230 $522,939 
Schedule of Contract Asset and Liabilities
The following table reflects the Company’s contract assets and contract liabilities:
June 30,
2025		December 31,
2024
(In thousands)
Short-term unbilled receivables, net (1)
$37,137 $32,917 
Long-term unbilled receivables, net (2)
5,747 7,873 
Total contract assets$42,884 $40,790 
Short-term deferred revenues$153,597 $141,370 
Long-term deferred revenues80,447 76,123 
Total contract liabilities$234,044 $217,493 
_________________________________________________
(1)    Included in accounts receivable and unbilled receivables in the Condensed Consolidated Balance Sheets.
(2)    Included in other long-term assets in the Condensed Consolidated Balance Sheets.
v3.25.2
Net Income (Loss) Per Share (Tables)
 6 Months Ended
Jun. 30, 2025
Earnings Per Share [Abstract]  
Schedule of Basic and Diluted Net Income (Loss) Per Share
The basic and diluted net income (loss) per share calculations were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(In thousands, except per share data)
Net income (loss)$5,639 $3,735 $(1,384)$(11,941)
Weighted-average shares outstanding – basic46,788 45,953 46,692 45,842 
Effect of dilutive securities from stock award plans198 83 — — 
Weighted-average shares outstanding – diluted46,986 46,036 46,692 45,842 
Net income (loss) per share – basic$0.12 $0.08 $(0.03)$(0.26)
Net income (loss) per share – diluted$0.12 $0.08 $(0.03)$(0.26)
Anti-dilutive weighted-average shares related to stock award plans2,881 2,719 3,657 3,247 
Anti-dilutive weighted-average shares related to convertible senior notes and warrants9,622 11,816 9,622 11,816 
v3.25.2
Cash and Cash Equivalents and Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments
The following table summarizes the carrying amounts, net of unamortized debt issuance costs, and fair values of the convertible senior notes:
June 30,
2025		December 31,
2024
(In thousands)
Net carrying amount:
2025 Notes174,801 174,324 
2029 Notes166,994 166,397 
Total net carrying amount$341,795 $340,721 
Fair value:
2025 Notes$172,043 $167,129 
2029 Notes154,560 181,320 
Total fair value $326,603 $348,449 
v3.25.2
Balance Sheet Components (Tables)
 6 Months Ended
Jun. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Balance Sheet Components
Balance sheet details are presented in the tables below:
June 30,
2025		December 31,
2024
(In thousands)
Inventories:
Raw materials$31,319 $33,501 
Work in process2,136 1,515 
Finished goods72,329 53,643 
Total inventories$105,784 $88,659 
Other current assets:
Funds held for customers, including restricted cash (1)
$45,838 $47,846 
Deferred cost of sales10,915 8,704 
Net investment in sales-type leases, current portion12,629 12,475 
Prepaid income taxes2,996 1,334 
Other current assets5,905 4,934 
Total other current assets$78,283 $75,293 
Other long-term assets:
External-use software development costs, net$56,229 $58,436 
Unbilled receivables, net5,747 7,873 
Deferred debt issuance costs2,553 2,940 
Other long-term assets7,499 10,057 
Total other long-term assets$72,028 $79,306 
Accrued liabilities:
Operating lease liabilities, current portion$11,855 $10,702 
Customer fund liabilities45,838 47,846 
Advance payments from customers11,773 12,760 
Rebate liabilities48,465 49,300 
Taxes payable3,328 11,443 
Other accrued liabilities30,617 35,844 
Total accrued liabilities$151,876 $167,895 
_________________________________________________
(1)    Includes restricted cash of $32.5 million and $29.4 million as of June 30, 2025 and December 31, 2024, respectively.
Schedule of Accumulated Other Comprehensive Income (Loss)
The following table summarizes the changes in accumulated balances of other comprehensive income (loss), which consisted of foreign currency translation adjustments:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(In thousands)
Beginning balance$(13,807)$(14,831)$(17,195)$(13,432)
Other comprehensive income (loss):6,288 (47)9,676 (1,446)
Ending balance$(7,519)$(14,878)$(7,519)$(14,878)
v3.25.2
Property and Equipment (Tables)
 6 Months Ended
Jun. 30, 2025
Property, Plant and Equipment [Abstract]  
Schedule of Property, Plant and Equipment Balances
The following table represents the property and equipment balances:
June 30,
2025		December 31,
2024
(In thousands)
Equipment$104,472 $99,728 
Furniture and fixtures4,934 4,809 
Leasehold improvements18,144 17,722 
Purchased software and internal-use software development costs156,137 146,287 
Construction in progress19,446 12,539 
Property and equipment, gross303,133 281,085 
Accumulated depreciation and amortization(184,179)(168,393)
Total property and equipment, net$118,954 $112,692 
Schedule of Geographic Information for Property and Equipment, Net The following table summarizes the geographic information for property and equipment, net:
June 30,
2025		December 31,
2024
(In thousands)
United States$115,192 $109,534 
Rest of world
3,762 3,158 
Total property and equipment, net$118,954 $112,692 
v3.25.2
External-Use Software Development Costs (Tables)
 6 Months Ended
Jun. 30, 2025
Research and Development [Abstract]  
Schedule of Capitalized Computer Software
The carrying amounts of external-use software development costs were as follows:
June 30,
2025		December 31,
2024
(In thousands)
Gross carrying amount$258,421 $249,335 
Accumulated amortization(202,192)(190,899)
External-use software development costs, net (1)
$56,229 $58,436 
_________________________________________________
(1)     Included in other long-term assets in the Condensed Consolidated Balance Sheets.
Schedule of Future Amortization Expenses For Capitalized Software Development Costs
The estimated future amortization expenses for external-use software development costs were as follows:
June 30,
2025
(In thousands)
Remaining six months of 2025$10,498 
202617,961 
202712,098 
20288,241 
20295,614 
Thereafter1,817 
Total$56,229
v3.25.2
Goodwill and Intangible Assets (Tables)
 6 Months Ended
Jun. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Changes in Carrying Amount of 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 fluctuations3,761 
Balance as of June 30, 2025$738,488 
Schedule of Carrying Amounts and Useful Lives of Intangible Assets
The carrying amounts and useful lives of intangible assets were as follows:
June 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$307,418 $(141,907)$(1,167)$164,344 
4 - 30
Acquired technology45,379 (33,663)— 11,716 
4 - 20
Trade names2,400 (1,820)— 580 5
Patents1,681 (972)— 709 
2 - 20
Total intangible assets, net
$356,878 $(178,362)$(1,167)$177,349 
 
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 technology46,134 (32,421)— 13,713 
4 - 20
Trade names2,400 (1,580)— 820 5
Patents2,291 (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.
Schedule of Estimated Future Amortization Expense for Intangible Assets
The estimated future amortization expenses for amortizable intangible assets were as follows:
June 30,
2025
(In thousands)
Remaining six months of 2025$10,119 
202618,041 
202716,233 
202815,145 
202913,647 
Thereafter104,164 
Total$177,349 
v3.25.2
Convertible Senior Notes (Tables)
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Schedule of Convertible Debt Balances
The 2025 Notes and the 2029 Notes consisted of the following balances:
June 30,
2025		December 31,
2024
(In thousands)
2025 Notes:
Principal amount$175,000 $175,000 
Unamortized debt issuance costs(199)(676)
Convertible senior notes, net, current$174,801 $174,324 
2029 Notes:
Principal amount$172,500 $172,500 
Unamortized debt issuance costs(5,506)(6,103)
Convertible senior notes, net, noncurrent$166,994 $166,397 
Schedule of Components of Interest Expense
The following table summarizes the components of interest expense resulting from the 2025 Notes and the 2029 Notes recognized in interest and other income (expense), net in the Condensed Consolidated Statements of Operations:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(In thousands)
Contractual coupon interest:
2025 Notes$110 $359 $219 $719 
2029 Notes$432 $— 863 — 
Amortization of debt issuance costs:
2025 Notes$239 $778 $477 $1,555 
2029 Notes$294 $— 597 — 
v3.25.2
Lessor Leases (Tables)
 6 Months Ended
Jun. 30, 2025
Leases [Abstract]  
Schedule of Income Recognized from Sales-Type Leases
The following table presents the Company’s income recognized from sales-type leases:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(In thousands)
Sales-type lease revenues$6,631 $11,576 $12,449 $18,612 
Cost of sales-type lease revenues(4,102)(7,110)(7,039)(11,297)
Selling profit on sales-type lease revenues$2,529 $4,466 $5,410 $7,315 
Schedule of Components of Sales-Type Lease Receivables
The receivables as a result of these types of transactions are collateralized by the underlying equipment leased and consist of the following components:
June 30,
2025		December 31,
2024
(In thousands)
Net minimum lease payments to be received$79,433 $77,976 
Less: Unearned interest income portion(12,847)(12,757)
Net investment in sales-type leases66,586 65,219 
Less: Current portion (1)
(12,629)(12,475)
Long-term investment in sales-type leases, net$53,957 $52,744 
_________________________________________________
(1)    The current portion of the net investment in sales-type leases is included in other current assets in the Condensed Consolidated Balance Sheets.
Schedule of Maturity Schedule of Future Minimum Lease Payments under Sales-Type Leases
The maturity schedule of future minimum lease payments under sales-type leases retained in-house and the reconciliation to the net investment in sales-type leases reported on the Condensed Consolidated Balance Sheets was as follows:
June 30,
2025
(In thousands)
Remaining six months of 2025$8,536 
202615,310 
202714,266 
202813,176 
202910,511 
Thereafter17,634 
Total future minimum sales-type lease payments79,433 
Present value adjustment(12,847)
Total net investment in sales-type leases$66,586 
v3.25.2
Lessee Leases (Tables)
 6 Months Ended
Jun. 30, 2025
Leases [Abstract]  
Schedule of Maturity Schedule of Future Minimum Lease Payments under Operating Leases and the Reconciliation to the Operating Lease Liabilities
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:
June 30,
2025
(In thousands)
Remaining six months of 2025$6,976 
202613,601 
202711,637 
20289,948 
20293,176 
Thereafter1,935 
Total operating lease payments47,273 
Present value adjustment(4,658)
Total operating lease liabilities (1)
$42,615 
_________________________________________________
(1)    Amount consists of a current and long-term portion of operating lease liabilities of $11.9 million and $30.8 million, respectively. The current portion of the operating lease liabilities is included in accrued liabilities in the Condensed Consolidated Balance Sheets.
Schedule of Supplemental Cash Flow Information and Weighted-Average Remaining Lease Term and Discount Rate
The following table summarizes supplemental cash flow information related to the Company’s operating leases:
Six Months Ended June 30,
20252024
(In thousands)
Cash paid for amounts included in the measurement of lease liabilities$7,012 $6,765 
Right-of-use assets obtained in exchange for new lease liabilities$6,022 $5,509 
The following table summarizes the weighted-average remaining lease term and weighted-average discount rate related to the Company’s operating leases:
June 30,
2025		December 31,
2024
Weighted-average remaining lease term, years 3.84.1
Weighted-average discount rate, %5.5 %5.8 %
v3.25.2
Employee Benefits and Share-Based Compensation (Tables)
 6 Months Ended
Jun. 30, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Share-Based Compensation Expense
The following table sets forth the total share-based compensation expense recognized in the Company’s Condensed Consolidated Statements of Operations:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(In thousands)
Cost of product and service revenues$1,207 $1,620 $2,925 $3,175 
Research and development1,022 1,139 2,242 2,214 
Selling, general, and administrative8,301 7,272 16,149 13,283 
Total share-based compensation expense$10,530 $10,031 $21,316 $18,672 
Schedule of Assumptions Used to Value ESPP Shares
The following assumptions were used to value shares under the ESPP:
Three and Six Months Ended June 30,
20252024
Expected life, years
0.5 - 2.0
0.5 - 2.0
Expected volatility, %
45.8% - 58.7%
33.7% - 57.0%
Risk-free interest rate, %
4.1% - 5.2%
1.5% - 5.5%
Dividend yield, % — %— %
Schedule of Share Option Activity
The following table summarizes the stock option activity under the 2009 Plan:
Number of
Shares		Weighted-Average
Exercise Price		Weighted-Average
Remaining Years		Aggregate
Intrinsic Value
(In thousands, except per share data)
Outstanding at December 31, 20241,760 $67.51 3.6$2,619 
Granted— — 
Exercised(1)30.92 
Expired(131)70.64 
Forfeited— — 
Outstanding at June 30, 20251,628 $67.29 3.2$84 
Exercisable at June 30, 20251,627 $67.23 3.2$84 
Vested and expected to vest at June 30, 2025 and thereafter1,628 $67.28 3.2$84 
Schedule of Restricted Stock Unit Activity
The following table summarizes the RSU activity under the 2009 Plan:
Number of
Shares		Weighted-Average
Grant Date Fair Value		Weighted-Average
Remaining Years		Aggregate
Intrinsic Value
(In thousands, except per share data)
Outstanding at December 31, 20241,614 $54.58 1.6$71,849 
Granted 186 33.09 
Vested (186)73.11 
Forfeited(214)54.66 
Outstanding and unvested at June 30, 20251,400 $49.27 1.3$41,166 
Schedule of Performance-Based Restricted Stock Activity
The following table summarizes the PSU activity under the 2009 Plan:
Number of
Shares		Weighted-Average
Grant Date Fair Value
(In thousands, except per share data)
Outstanding at December 31, 2024177 $28.67 
Granted (Awarded)139 32.66 
Additional granted based on performance achievement135 28.67 
Vested (Released)(97)28.67 
Forfeited— — 
Outstanding and unvested at June 30, 2025354 $30.24 
Schedule of Ordinary Shares Reserved for Future Issuance Under Equity Incentive Plans
The Company had the following ordinary shares reserved for future issuance under its equity incentive plans as of June 30, 2025:
Number of Shares
(In thousands)
Stock options outstanding1,628 
Non-vested restricted stock awards1,808 
Shares authorized for future issuance4,691 
ESPP shares available for future issuance2,391 
Total shares reserved for future issuance10,518 
v3.25.2
Restructuring Expenses (Tables)
 6 Months Ended
Jun. 30, 2025
Restructuring and Related Activities [Abstract]  
Schedule of Total Restructuring Expense Recognized in the Condensed Consolidated Statements of Operations
The following table summarizes the total employee-related restructuring expense recognized in the Company’s Condensed Consolidated Statements of Operations:
Six Months Ended June 30,
2024
(In thousands)
Cost of product and service revenues$2,696 
Research and development311 
Selling, general, and administrative156 
Total restructuring expense$3,163 
v3.25.2
Organization and Summary of Significant Accounting Policies (Details)
 6 Months Ended
Jun. 30, 2025
segment
Accounting Policies [Abstract]  
Number of operating segments 1
v3.25.2
Segment Information - Narrative (Details)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
USD ($)
Jun. 30, 2024
USD ($)
Jun. 30, 2025
USD ($)
segment
Jun. 30, 2024
USD ($)
Segment Reporting [Abstract]        
Number of reportable segments | segment     1  
Depreciation and amortization | $ $ 19,600 $ 20,800 $ 39,582 $ 42,090
v3.25.2
Segment Information - Schedule of Segment Reporting Information by Statement of Operations (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Mar. 31, 2025
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2025
Jun. 30, 2024
Segment Reporting Information [Line Items]            
Total revenues $ 290,562   $ 276,788   $ 560,230 $ 522,939
Less:            
Interest and other income (expense), net 2,333   4,973   4,422 8,989
Provision for income taxes 4,814   4,462   2,307 2,307
Net income (loss) 5,639 $ (7,023) 3,735 $ (15,676) (1,384) (11,941)
Reportable Segment            
Segment Reporting Information [Line Items]            
Total revenues 290,562   276,788   560,230 522,939
Less:            
Adjusted cost of revenues (160,690)   (154,499)   (316,697) (302,656)
Adjusted operating expenses (105,739)   (97,477)   (210,093) (199,199)
Other segment items (16,013)   (21,588)   (36,939) (39,707)
Interest and other income (expense), net 2,333   4,973   4,422 8,989
Provision for income taxes 4,814   4,462   2,307 2,307
Net income (loss) $ 5,639   $ 3,735   $ (1,384) $ (11,941)
v3.25.2
Revenues - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Dec. 31, 2024
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Fees to GPOs $ 1,600 $ 2,400 $ 3,800 $ 4,400  
Deferred revenues recognized 38,600   92,800    
Deferred revenues $ 153,597   $ 153,597   $ 141,370
Deferred revenue, period 10 years   10 years    
Remaining performance obligation $ 384,100   $ 384,100    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01          
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Remaining performance obligation, period 10 years   10 years    
v3.25.2
Revenues - Schedule of Disaggregation of Revenues by Revenue Type (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Revenue from External Customer [Line Items]        
Total revenues $ 290,562 $ 276,788 $ 560,230 $ 522,939
Connected devices, software licenses, and other        
Revenue from External Customer [Line Items]        
Total revenues 138,620 134,539 258,697 245,608
Consumables        
Revenue from External Customer [Line Items]        
Total revenues 24,552 22,041 49,643 44,267
Technical services        
Revenue from External Customer [Line Items]        
Total revenues 63,766 59,321 125,145 117,836
SaaS and Expert Services        
Revenue from External Customer [Line Items]        
Total revenues $ 63,624 $ 60,887 $ 126,745 $ 115,228
v3.25.2
Revenues - Schedule of Disaggregation of Revenues by Geographic Location (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Revenue from External Customer [Line Items]        
Total revenues $ 290,562 $ 276,788 $ 560,230 $ 522,939
United States        
Revenue from External Customer [Line Items]        
Total revenues 263,446 255,317 512,710 473,493
Rest of world        
Revenue from External Customer [Line Items]        
Total revenues $ 27,116 $ 21,471 $ 47,520 $ 49,446
v3.25.2
Revenues - Schedule of Contract Asset and Liabilities (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Revenue Recognition [Abstract]    
Short-term unbilled receivables, net $ 37,137 $ 32,917
Long-term unbilled receivables, net 5,747 7,873
Total contract assets 42,884 40,790
Short-term deferred revenues 153,597 141,370
Long-term deferred revenues 80,447 76,123
Total contract liabilities $ 234,044 $ 217,493
v3.25.2
Net Income (Loss) Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Mar. 31, 2025
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2025
Jun. 30, 2024
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]            
Net income (loss) $ 5,639 $ (7,023) $ 3,735 $ (15,676) $ (1,384) $ (11,941)
Weighted-average shares outstanding – basic (in shares) 46,788   45,953   46,692 45,842
Effect of dilutive securities from stock award plans (in shares) 198   83   0 0
Weighted-average shares outstanding – diluted (in shares) 46,986   46,036   46,692 45,842
Net income (loss) per share – basic (in dollars per share) $ 0.12   $ 0.08   $ (0.03) $ (0.26)
Net income (loss) per share – diluted (in dollars per share) $ 0.12   $ 0.08   $ (0.03) $ (0.26)
Stock Award Plans            
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]            
Anti-dilutive weighted-average shares (in shares) 2,881   2,719   3,657 3,247
Convertible Senior Notes and Warrants            
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]            
Anti-dilutive weighted-average shares (in shares) 9,622   11,816   9,622 11,816
v3.25.2
Cash and Cash Equivalents and Fair Value of Financial Instruments - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Dec. 31, 2024
Fair Value Disclosures [Abstract]          
Cash and cash equivalents $ 399,004 $ 556,781 $ 399,004 $ 556,781 $ 369,201
Cash equivalents 352,200   352,200   $ 328,000
Interest income on cash and cash equivalents $ 3,700 $ 6,600 $ 7,300 $ 12,600  
v3.25.2
Cash and Cash Equivalents and Fair Value of Financial Instruments - Carrying Amounts, Net of Unamortized Debt Issuance Costs, and Fair Values (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Net carrying amount    
Cash and Cash Equivalents [Line Items]    
Net carrying amount $ 341,795 $ 340,721
Fair value    
Cash and Cash Equivalents [Line Items]    
Fair value 326,603 348,449
2025 Notes | Net carrying amount    
Cash and Cash Equivalents [Line Items]    
Net carrying amount 174,801 174,324
2025 Notes | Fair value    
Cash and Cash Equivalents [Line Items]    
Fair value 172,043 167,129
2029 Notes | Net carrying amount    
Cash and Cash Equivalents [Line Items]    
Net carrying amount 166,994 166,397
2029 Notes | Fair value    
Cash and Cash Equivalents [Line Items]    
Fair value $ 154,560 $ 181,320
v3.25.2
Balance Sheet Components - Balance Sheet Components (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Inventories:    
Raw materials $ 31,319 $ 33,501
Work in process 2,136 1,515
Finished goods 72,329 53,643
Total inventories 105,784 88,659
Other current assets:    
Funds held for customers, including restricted cash 45,838 47,846
Deferred cost of sales 10,915 8,704
Net investment in sales-type leases, current portion 12,629 12,475
Prepaid income taxes 2,996 1,334
Other current assets 5,905 4,934
Total other current assets 78,283 75,293
Other long-term assets:    
External-use software development costs, net 56,229 58,436
Unbilled receivables, net 5,747 7,873
Deferred debt issuance costs 2,553 2,940
Other long-term assets 7,499 10,057
Total other long-term assets 72,028 79,306
Accrued liabilities:    
Operating lease liabilities, current portion $ 11,855 $ 10,702
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Total accrued liabilities Total accrued liabilities
Customer fund liabilities $ 45,838 $ 47,846
Advance payments from customers 11,773 12,760
Rebate liabilities 48,465 49,300
Taxes payable 3,328 11,443
Other accrued liabilities 30,617 35,844
Total accrued liabilities 151,876 167,895
Restricted cash $ 32,500 $ 29,400
Restricted Cash, Current, Statement of Financial Position [Extensible Enumeration] Total other current assets Total other current assets
v3.25.2
Balance Sheet Components - Narrative (Details) - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Capitalized costs associated with cloud computing arrangements $ 5.0 $ 5.0
v3.25.2
Balance Sheet Components - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Mar. 31, 2025
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2025
Jun. 30, 2024
AOCI Attributable to Parent, Net of Tax [Roll Forward]            
Beginning balance $ 1,257,100 $ 1,243,313 $ 1,188,597 $ 1,188,954 $ 1,243,313 $ 1,188,954
Other comprehensive income (loss) 6,288 3,388 (47) (1,399) 9,676 (1,446)
Ending balance 1,263,619 1,257,100 1,202,808 1,188,597 1,263,619 1,202,808
Accumulated Other Comprehensive Income (Loss)            
AOCI Attributable to Parent, Net of Tax [Roll Forward]            
Beginning balance (13,807) (17,195) (14,831) (13,432) (17,195) (13,432)
Other comprehensive income (loss) 6,288 3,388 (47) (1,399)    
Ending balance $ (7,519) $ (13,807) $ (14,878) $ (14,831) $ (7,519) $ (14,878)
v3.25.2
Property and Equipment - Property, Plant and Equipment Balances (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 303,133 $ 281,085
Accumulated depreciation and amortization (184,179) (168,393)
Total property and equipment, net 118,954 112,692
Equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 104,472 99,728
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 4,934 4,809
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 18,144 17,722
Purchased software and internal-use software development costs    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 156,137 146,287
Construction in progress    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 19,446 $ 12,539
v3.25.2
Property and Equipment - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Property, Plant and Equipment [Abstract]        
Depreciation and amortization expense $ 8.6 $ 8.7 $ 17.2 $ 17.3
v3.25.2
Property and Equipment - Geographic Information for Property and Equipment, Net (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Property, Plant and Equipment [Line Items]    
Total property and equipment, net $ 118,954 $ 112,692
United States    
Property, Plant and Equipment [Line Items]    
Total property and equipment, net 115,192 109,534
Rest of world    
Property, Plant and Equipment [Line Items]    
Total property and equipment, net $ 3,762 $ 3,158
v3.25.2
External-Use Software Development Costs - Schedule of Capitalized Computer Software (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Research and Development [Abstract]    
Gross carrying amount $ 258,421 $ 249,335
Accumulated amortization (202,192) (190,899)
External-use software development costs, net $ 56,229 $ 58,436
v3.25.2
External-Use Software Development Costs - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Research and Development [Abstract]        
Amortization of capitalized software development costs $ 5.6 $ 6.4 $ 11.3 $ 13.1
v3.25.2
External-Use Software Development Costs - Future Amortization Expenses For Capitalized Software Development Costs (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Research and Development [Abstract]    
Remaining six months of 2025 $ 10,498  
2026 17,961  
2027 12,098  
2028 8,241  
2029 5,614  
Thereafter 1,817  
External-use software development costs, net $ 56,229 $ 58,436
v3.25.2
Goodwill and Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Details)
$ in Thousands
 6 Months Ended
Jun. 30, 2025
USD ($)
Goodwill [Roll Forward]  
Balance at beginning of period $ 734,727
Foreign currency exchange rate fluctuations 3,761
Balance at end of period $ 738,488
v3.25.2
Goodwill and Intangible Assets - Schedule of Carrying Amounts and Useful Lives of Intangible Assets (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2025
Dec. 31, 2024
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Gross carrying amount $ 356,878 $ 358,243
Accumulated amortization (178,362) (168,604)
Foreign currency exchange rate fluctuations (1,167) (1,373)
Net carrying amount 177,349 188,266
Customer relationships    
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Gross carrying amount 307,418 307,418
Accumulated amortization (141,907) (133,111)
Foreign currency exchange rate fluctuations (1,167) (1,373)
Net carrying amount $ 164,344 $ 172,934
Customer relationships | Minimum    
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Useful life 4 years 4 years
Customer relationships | Maximum    
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Useful life 30 years 30 years
Acquired technology    
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Gross carrying amount $ 45,379 $ 46,134
Accumulated amortization (33,663) (32,421)
Foreign currency exchange rate fluctuations 0 0
Net carrying amount $ 11,716 $ 13,713
Acquired technology | Minimum    
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Useful life 4 years 4 years
Acquired technology | Maximum    
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Useful life 20 years 20 years
Trade names    
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Gross carrying amount $ 2,400 $ 2,400
Accumulated amortization (1,820) (1,580)
Foreign currency exchange rate fluctuations 0 0
Net carrying amount $ 580 $ 820
Useful life 5 years 5 years
Patents    
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Gross carrying amount $ 1,681 $ 2,291
Accumulated amortization (972) (1,492)
Foreign currency exchange rate fluctuations 0 0
Net carrying amount $ 709 $ 799
Patents | Minimum    
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Useful life 2 years 2 years
Patents | Maximum    
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Useful life 20 years 20 years
v3.25.2
Goodwill and Intangible Assets - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]        
Amortization expense of intangible assets $ 5.3 $ 5.7 $ 11.1 $ 11.7
v3.25.2
Goodwill and Intangible Assets - Schedule of Future Amortization Expense for Intangible Assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]    
Remaining six months of 2025 $ 10,119  
2026 18,041  
2027 16,233  
2028 15,145  
2029 13,647  
Thereafter 104,164  
Total $ 177,349 $ 188,266
v3.25.2
Debt and Credit Agreement (Details) - USD ($)
Nov. 18, 2024
Oct. 10, 2023
Nov. 15, 2019
Jun. 30, 2025
Dec. 31, 2024
Sep. 25, 2020
Convertible Debt | 2025 Notes            
Debt Instrument [Line Items]            
Interest rate 0.25%         0.25%
Springing maturity, outstanding balance trigger $ 200,000,000          
Springing maturity trigger, period prior to maturity 91 days          
Long-term line of credit       $ 174,801,000 $ 174,324,000  
Wells Fargo Securities, JP Morgan Chase Bank, PNC Capital Markets and TD Securities | Line of Credit            
Debt Instrument [Line Items]            
Maximum secured net leverage ratio   3.00        
Minimum interest coverage ratio   3.00        
Wells Fargo Securities, JP Morgan Chase Bank, PNC Capital Markets and TD Securities | Line of Credit | Federal Funds            
Debt Instrument [Line Items]            
Spread on variable interest rate   0.50%        
Wells Fargo Securities, JP Morgan Chase Bank, PNC Capital Markets and TD Securities | Line of Credit | One Month Adjusted Term Secured Overnight Financing Rate (SOFR)            
Debt Instrument [Line Items]            
Spread on variable interest rate   1.00%        
Wells Fargo Securities, JP Morgan Chase Bank, PNC Capital Markets and TD Securities | Line of Credit | Minimum            
Debt Instrument [Line Items]            
Commitment fee rate on undrawn commitments   0.20%        
Wells Fargo Securities, JP Morgan Chase Bank, PNC Capital Markets and TD Securities | Line of Credit | Minimum | Applicable Margin            
Debt Instrument [Line Items]            
Spread on variable interest rate   1.50%        
Wells Fargo Securities, JP Morgan Chase Bank, PNC Capital Markets and TD Securities | Line of Credit | Minimum | One Month Secured Overnight Financing Rate (SOFR) Applicable Margin            
Debt Instrument [Line Items]            
Spread on variable interest rate   0.50%        
Wells Fargo Securities, JP Morgan Chase Bank, PNC Capital Markets and TD Securities | Line of Credit | Maximum            
Debt Instrument [Line Items]            
Commitment fee rate on undrawn commitments   0.35%        
Wells Fargo Securities, JP Morgan Chase Bank, PNC Capital Markets and TD Securities | Line of Credit | Maximum | Applicable Margin            
Debt Instrument [Line Items]            
Spread on variable interest rate   2.25%        
Wells Fargo Securities, JP Morgan Chase Bank, PNC Capital Markets and TD Securities | Line of Credit | Maximum | One Month Secured Overnight Financing Rate (SOFR) Applicable Margin            
Debt Instrument [Line Items]            
Spread on variable interest rate   1.25%        
Revolving Credit Facility | Line of Credit            
Debt Instrument [Line Items]            
Long-term line of credit       0 0  
Revolving Credit Facility | Wells Fargo Securities, Citizens Bank and JP Morgan Chase Bank | Line of Credit            
Debt Instrument [Line Items]            
Term of debt instrument     5 years      
Maximum borrowing capacity     $ 500,000,000      
Remaining borrowing capacity       $ 350,000,000 $ 350,000,000  
Revolving Credit Facility | Wells Fargo Securities, JP Morgan Chase Bank, PNC Capital Markets and TD Securities | Line of Credit            
Debt Instrument [Line Items]            
Term of debt instrument   5 years        
Maximum borrowing capacity   $ 350,000,000        
Accordion feature, higher borrowing capacity option   $ 250,000,000        
EBITDA, prior year, percentage   100.00%        
Incremental Loan Facility | Wells Fargo Securities, Citizens Bank and JP Morgan Chase Bank | Line of Credit            
Debt Instrument [Line Items]            
Maximum borrowing capacity     250,000,000      
Letter of Credit | Wells Fargo Securities, Citizens Bank and JP Morgan Chase Bank | Line of Credit            
Debt Instrument [Line Items]            
Maximum borrowing capacity     15,000,000      
Letter of Credit | Wells Fargo Securities, JP Morgan Chase Bank, PNC Capital Markets and TD Securities | Line of Credit            
Debt Instrument [Line Items]            
Maximum borrowing capacity   $ 15,000,000        
Swing Line Loan | Wells Fargo Securities, Citizens Bank and JP Morgan Chase Bank | Line of Credit            
Debt Instrument [Line Items]            
Maximum borrowing capacity     $ 25,000,000      
Swing Line Loan | Wells Fargo Securities, JP Morgan Chase Bank, PNC Capital Markets and TD Securities | Line of Credit            
Debt Instrument [Line Items]            
Maximum borrowing capacity   $ 25,000,000        
v3.25.2
Convertible Senior Notes - Narrative (Details)
$ / shares in Units, shares in Millions
 1 Months Ended
Dec. 31, 2024
USD ($)
Nov. 22, 2024
USD ($)
day
$ / shares
shares
Dec. 13, 2021
USD ($)
$ / shares
Sep. 25, 2020
USD ($)
day
$ / shares
shares
Nov. 30, 2024
USD ($)
Jun. 30, 2025
USD ($)
shares
Nov. 18, 2024
2025 Notes              
Debt Instrument [Line Items]              
Debt instrument, convertible, principal amount of notes, minimum     $ 1,000        
Debt instrument, convertible, maximum cash     1,000        
Debt instrument, convertible, consideration in excess, amount     $ 1,000        
Cost of convertible note hedge       $ 100,600,000      
Proceeds from sale of warrants       51,300,000      
2025 Notes | Convertible Note Hedge              
Debt Instrument [Line Items]              
Deferred tax asset related to the convertible note hedge transaction       $ 25,800,000      
2025 Notes | Convertible Note Hedge Rights              
Debt Instrument [Line Items]              
Options and warrants to purchase shares (in shares) | shares       5.9      
Strike price (in dollars per share) | $ / shares       $ 97.32      
2025 Notes | Warrants              
Debt Instrument [Line Items]              
Options and warrants to purchase shares (in shares) | shares       5.9      
Strike price (in dollars per share) | $ / shares       $ 141.56      
2025 Notes | Convertible Debt              
Debt Instrument [Line Items]              
Interest rate       0.25%     0.25%
Principal amount $ 175,000,000     $ 575,000,000   $ 175,000,000  
Additional principal amount subject to purchasers' option       75,000,000      
Proceeds from issuance of convertible senior notes, net of issuance costs       559,700,000      
Debt issuance costs incurred and capitalized       $ 15,300,000      
Conversion ratio     0.0102751        
Conversion price (in dollars per share) | $ / shares     $ 97.32        
Repurchase price as a percent of principal amount       100.00%      
Aggregate principal amount of Notes that must be outstanding and not subject to redemption if the Company redeems less than all of the Notes       $ 150,000,000      
Repurchased face amount         $ 400,000,000    
Repayments of convertible debt         391,000,000    
Gain on extinguishment of convertible senior notes, net         7,200,000    
Deferred debt issuance cost, writeoff         $ 1,800,000    
Effective interest rate           0.80%  
Remaining life of debt discount and issuance cost accretion           2 months 12 days  
Maximum number of shares issuable upon conversion (in shares) | shares           1.8  
2025 Notes | Convertible Debt | Period 1              
Debt Instrument [Line Items]              
Threshold percentage of stock price trigger       130.00%      
Threshold trading days | day       20      
Threshold consecutive trading days | day       30      
2029 Notes              
Debt Instrument [Line Items]              
Cost of convertible note hedge   $ 40,300,000          
Proceeds from sale of warrants   25,200,000          
2029 Notes | Convertible Note Hedge              
Debt Instrument [Line Items]              
Deferred tax asset related to the convertible note hedge transaction   $ 10,200,000          
2029 Notes | Convertible Note Hedge Rights              
Debt Instrument [Line Items]              
Options and warrants to purchase shares (in shares) | shares   3.0          
Strike price (in dollars per share) | $ / shares   $ 57.25          
2029 Notes | Warrants              
Debt Instrument [Line Items]              
Strike price (in dollars per share) | $ / shares   $ 84.82          
2029 Notes | Convertible Debt              
Debt Instrument [Line Items]              
Interest rate   1.00%          
Principal amount $ 172,500,000 $ 172,500,000       $ 172,500,000  
Additional principal amount subject to purchasers' option   22,500,000          
Proceeds from issuance of convertible senior notes, net of issuance costs   166,300,000          
Debt issuance costs incurred and capitalized   $ 6,200,000          
Conversion ratio 0.0174662            
Conversion price (in dollars per share) | $ / shares   $ 57.25          
Repurchase price as a percent of principal amount   100.00%          
Aggregate principal amount of Notes that must be outstanding and not subject to redemption if the Company redeems less than all of the Notes   $ 100,000,000          
Effective interest rate           1.75%  
Remaining life of debt discount and issuance cost accretion           4 years 4 months 24 days  
Maximum number of shares issuable upon conversion (in shares) | shares           3.0  
2029 Notes | Convertible Debt | Period 1              
Debt Instrument [Line Items]              
Threshold percentage of stock price trigger   130.00%          
Threshold trading days | day   20          
Threshold consecutive trading days | day   30          
2029 Notes | Convertible Debt | Period 2              
Debt Instrument [Line Items]              
Threshold percentage of stock price trigger   98.00%          
Threshold trading days | day   5          
Threshold consecutive trading days | day   10          
v3.25.2
Convertible Senior Notes - Convertible Debt Balances (Details) - Convertible Debt - USD ($)
Jun. 30, 2025
Dec. 31, 2024
Nov. 22, 2024
Sep. 25, 2020
2025 Notes        
Debt Instrument [Line Items]        
Principal amount $ 175,000,000 $ 175,000,000   $ 575,000,000
Unamortized debt issuance costs (199,000) (676,000)    
Convertible senior notes, net 174,801,000 174,324,000    
2029 Notes        
Debt Instrument [Line Items]        
Principal amount 172,500,000 172,500,000 $ 172,500,000  
Unamortized debt issuance costs (5,506,000) (6,103,000)    
Convertible senior notes, net $ 166,994,000 $ 166,397,000    
v3.25.2
Convertible Senior Notes - Components of Interest Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Debt Instrument [Line Items]        
Amortization of debt issuance costs     $ 1,461 $ 1,943
2025 Notes | Convertible Debt        
Debt Instrument [Line Items]        
Contractual coupon interest $ 110 $ 359 219 719
Amortization of debt issuance costs 239 778 477 1,555
2029 Notes | Convertible Debt        
Debt Instrument [Line Items]        
Contractual coupon interest 432 0 863 0
Amortization of debt issuance costs $ 294 $ 0 $ 597 $ 0
v3.25.2
Lessor Leases - Narrative (Details)
Jun. 30, 2025
Minimum  
Lessor, Lease, Description [Line Items]  
Term of sales-type leases 1 year
Maximum  
Lessor, Lease, Description [Line Items]  
Term of sales-type leases 10 years
v3.25.2
Lessor Leases - Schedule of Income Recognized from Sales-Type Leases (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Leases [Abstract]        
Sales-type lease revenues $ 6,631 $ 11,576 $ 12,449 $ 18,612
Cost of sales-type lease revenues (4,102) (7,110) (7,039) (11,297)
Selling profit on sales-type lease revenues $ 2,529 $ 4,466 $ 5,410 $ 7,315
v3.25.2
Lessor Leases - Schedule of Components of Sales-Type Lease Receivables (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Leases [Abstract]    
Net minimum lease payments to be received $ 79,433 $ 77,976
Less: Unearned interest income portion (12,847) (12,757)
Net investment in sales-type leases 66,586 65,219
Less: Current portion (12,629) (12,475)
Long-term investment in sales-type leases, net $ 53,957 $ 52,744
v3.25.2
Lessor Leases - Schedule of Maturity Schedule of Future Minimum Lease Payments under Sales-Type Leases (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Leases [Abstract]    
Remaining six months of 2025 $ 8,536  
2026 15,310  
2027 14,266  
2028 13,176  
2029 10,511  
Thereafter 17,634  
Net minimum lease payments to be received 79,433 $ 77,976
Present value adjustment (12,847) $ (12,757)
Total net investment in sales-type leases $ 66,586  
v3.25.2
Lessee Leases - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Lessee, Lease, Description [Line Items]        
Operating lease cost $ 2.7 $ 2.6 $ 5.1 $ 5.2
Minimum        
Lessee, Lease, Description [Line Items]        
Term of operating leases 1 year   1 year  
Maximum        
Lessee, Lease, Description [Line Items]        
Term of operating leases 12 years   12 years  
v3.25.2
Lessee Leases - Schedule of Maturity Schedule of Future Minimum Lease Payments under Operating Leases and the Reconciliation to the Operating Lease Liabilities (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Leases [Abstract]    
Remaining six months of 2025 $ 6,976  
2026 13,601  
2027 11,637  
2028 9,948  
2029 3,176  
Thereafter 1,935  
Total operating lease payments 47,273  
Present value adjustment (4,658)  
Total operating lease liabilities 42,615  
Current portion of operating lease liabilities 11,855 $ 10,702
Long-term portion of operating lease liabilities $ 30,760 $ 31,123
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued liabilities Accrued liabilities
v3.25.2
Lessee Leases - Schedule of Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Leases [Abstract]    
Cash paid for amounts included in the measurement of lease liabilities $ 7,012 $ 6,765
Right-of-use assets obtained in exchange for new lease liabilities $ 6,022 $ 5,509
v3.25.2
Lessee Leases - Schedule of Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate (Details)
Jun. 30, 2025
Dec. 31, 2024
Leases [Abstract]    
Weighted-average remaining lease term, years 3 years 9 months 18 days 4 years 1 month 6 days
Weighted-average discount rate, % 5.50% 5.80%
v3.25.2
Commitments and Contingencies (Details) - USD ($)
$ in Millions
May 05, 2025
Jun. 30, 2025
Commitments and Contingencies Disclosure [Abstract]    
Non-cancelable purchase commitments   $ 139.2
Non-cancelable purchase commitments expected to be paid within the year   $ 111.4
Litigation settlement $ 4.6  
v3.25.2
Income Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Dec. 31, 2024
Income Tax Disclosure [Abstract]          
Provision for income taxes $ (4,814) $ (4,462) $ (2,307) $ (2,307)  
Ordinary income effective rate rate amount     2,000 $ 3,300  
Unrecognized tax benefits 11,000   11,000   $ 10,500
Accrued interest and penalties $ 900   $ 900   $ 600
v3.25.2
Employee Benefits and Share-Based Compensation - Schedule of Shared-based Compensation Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Total share-based compensation expense $ 10,530 $ 10,031 $ 21,316 $ 18,672
Cost of product and service revenues        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Total share-based compensation expense 1,207 1,620 2,925 3,175
Research and development        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Total share-based compensation expense 1,022 1,139 2,242 2,214
Selling, general, and administrative        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Total share-based compensation expense $ 8,301 $ 7,272 $ 16,149 $ 13,283
v3.25.2
Employee Benefits and Share-Based Compensation - Narrative (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
May 22, 2025
Dec. 31, 2024
Aug. 02, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Share-based payment arrangement, amount capitalized $ 0.6 $ 1.0 $ 1.4 $ 1.7      
Shares purchased under ESPP (in shares)     335,000 334,000      
2025 Repurchase Program and 2016 Repurchase Program              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Number of shares repurchased (in shares) 536,000   536,000        
Average price of repurchased shares (in dollars per share) $ 29.24   $ 29.24        
Aggregate purchase price of treasury stock $ 15.7   $ 15.7        
2025 Repurchase Program              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Value of shares authorized for repurchase under stock repurchase programs (up to)         $ 75.0    
Remaining value of shares authorized for repurchase under stock repurchase programs 62.1   $ 62.1        
2016 Repurchase Program              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Value of shares authorized for repurchase under stock repurchase programs (up to)             $ 50.0
Number of shares repurchased (in shares)   0   0      
Remaining value of shares authorized for repurchase under stock repurchase programs           $ 2.7  
ESPP shares available for future issuance              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Weighted-average price of shares purchased (in dollars per share)     $ 24.57 $ 24.06      
RSUs | 2009 Plan              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Unrecognized compensation cost 41.1   $ 41.1        
Weighted average period of compensation cost not yet recognized     2 years 7 months 6 days        
PSUs | 2009 Plan              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Unrecognized compensation cost $ 4.3   $ 4.3        
Weighted average period of compensation cost not yet recognized     1 year 3 months 18 days        
v3.25.2
Employee Benefits and Share-Based Compensation - Schedule of Assumptions Used to Value ESPP Shares (Details) - ESPP shares available for future issuance
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Expected volatility (minimum) 45.80% 33.70% 45.80% 33.70%
Expected volatility (maximum) 58.70% 57.00% 58.70% 57.00%
Risk-free interest rate (minimum) 4.10% 1.50% 4.10% 1.50%
Risk-free interest rate (maximum) 5.20% 5.50% 5.20% 5.50%
Dividend yield 0.00% 0.00% 0.00% 0.00%
Minimum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Expected life 6 months 6 months 6 months 6 months
Maximum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Expected life 2 years 2 years 2 years 2 years
v3.25.2
Employee Benefits and Share-Based Compensation - Schedule of Share Option Activity (Details) - 2009 Plan - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2025
Dec. 31, 2024
Number of Shares    
Outstanding at beginning of period (in shares) 1,760  
Granted (in shares) 0  
Exercised (in shares) (1)  
Expired (in shares) (131)  
Forfeited (in shares) 0  
Outstanding at end of period (in shares) 1,628 1,760
Exercisable at end of period (in shares) 1,627  
Vested and expected to vest at end of period (in shares) 1,628  
Weighted-Average Exercise Price    
Outstanding at beginning of period (in dollars per share) $ 67.51  
Granted (in dollars per share) 0  
Exercised (in dollars per share) 30.92  
Expired (in dollars per share) 70.64  
Forfeited (in dollars per share) 0  
Outstanding at end of period (in dollars per share) 67.29 $ 67.51
Exercisable at end of period (in dollars per share) 67.23  
Vested and expected to vest at end of period (in dollars per share) $ 67.28  
Weighted-Average Remaining Years    
Outstanding 3 years 2 months 12 days 3 years 7 months 6 days
Exercisable 3 years 2 months 12 days  
Vested and expected to vest 3 years 2 months 12 days  
Aggregate Intrinsic Value    
Outstanding $ 84 $ 2,619
Exercisable 84  
Vested and expected to vest $ 84  
v3.25.2
Employee Benefits and Share-Based Compensation - Schedule of Restricted Stock Unit Activity (Details) - RSUs - 2009 Plan - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2025
Dec. 31, 2024
Number of Shares    
Outstanding at beginning of period (in shares) 1,614  
Granted (Awarded) (in shares) 186  
Vested (Released) (in shares) (186)  
Forfeited (in shares) (214)  
Outstanding and unvested at end of period (in shares) 1,400 1,614
Weighted-Average Grant Date Fair Value    
Outstanding at beginning of period (in dollars per share) $ 54.58  
Granted (Awarded) (in dollars per share) 33.09  
Vested (Released) (in dollars per share) 73.11  
Forfeited (in dollars per share) 54.66  
Outstanding and unvested at end of period (in dollars per share) $ 49.27 $ 54.58
Weighted-Average Remaining Years    
Outstanding and unvested 1 year 3 months 18 days 1 year 7 months 6 days
Aggregate Intrinsic Value    
Outstanding and unvested $ 41,166 $ 71,849
v3.25.2
Employee Benefits and Share-Based Compensation - Schedule of Performance-Based Restricted Stock Activity (Details) - Performance-Based Restricted Stock - 2009 Plan
shares in Thousands
 6 Months Ended
Jun. 30, 2025
$ / shares
shares
Number of Shares  
Outstanding at beginning of period (in shares) | shares 177
Granted (Awarded) (in shares) | shares 139
Additional granted based on performance achievement (in shares) | shares 135
Vested (Released) (in shares) | shares (97)
Forfeited (in shares) | shares 0
Outstanding and unvested at end of period (in shares) | shares 354
Weighted-Average Grant Date Fair Value  
Outstanding at beginning of period (in dollars per share) | $ / shares $ 28.67
Granted (Awarded) (in dollars per share) | $ / shares 32.66
Additional granted based on performance achievement (in dollars per share) | $ / shares 28.67
Vested (Released) (in dollars per share) | $ / shares 28.67
Forfeited (in dollars per share) | $ / shares 0
Outstanding and unvested at end of period (in dollars per share) | $ / shares $ 30.24
v3.25.2
Employee Benefits and Share-Based Compensation - Schedule of Shares Reserved for Future Issuance Under Equity Incentive Plans (Details)
shares in Thousands
Jun. 30, 2025
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Total shares reserved for future issuance (in shares) 10,518
Stock options outstanding  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Total shares reserved for future issuance (in shares) 1,628
Non-vested restricted stock awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Total shares reserved for future issuance (in shares) 1,808
Shares authorized for future issuance  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Total shares reserved for future issuance (in shares) 4,691
ESPP shares available for future issuance  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Total shares reserved for future issuance (in shares) 2,391
v3.25.2
Restructuring Expenses (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Restructuring and Related Activities [Abstract]        
Restructuring expense, incurred, net of reversals $ 0   $ 0 $ 3,300
Inventory write-down   $ 5,400 $ 0 $ 5,393
v3.25.2
Restructuring Expenses - Total Restructuring Expense Recognized in the Condensed Consolidated Statements of Operations (Details)
$ in Thousands
 6 Months Ended
Jun. 30, 2024
USD ($)
Restructuring Cost and Reserve [Line Items]  
Total restructuring expense $ 3,163
Cost of product and service revenues  
Restructuring Cost and Reserve [Line Items]  
Total restructuring expense 2,696
Research and development  
Restructuring Cost and Reserve [Line Items]  
Total restructuring expense 311
Selling, general, and administrative  
Restructuring Cost and Reserve [Line Items]  
Total restructuring expense $ 156