10-QPeriod: Q3 FY2025

Edwards Lifesciences Corp Quarterly Report for Q3 Ended Sep 30, 2025

Filed November 5, 2025For Securities:EW

Summary

Edwards Lifesciences Corporation reported a solid third quarter for 2025, with net sales reaching $1.55 billion, a 14.7% increase year-over-year. This growth was primarily driven by strong performance in their Transcatheter Aortic Valve Replacement (TAVR) and Transcatheter Mitral and Tricuspid Therapies (TMTT) product lines, demonstrating continued market leadership and product adoption. While overall sales showed robust growth, net income attributable to Edwards Lifesciences Corporation for the quarter was $291.1 million, a decrease compared to the same period last year. This was influenced by several factors including significant litigation expenses ($90.4 million), an intangible asset impairment charge of $40.0 million, and an unfavorable impact from foreign currency fluctuations. Despite these headwinds, the company's core operations in structural heart disease remain strong, with continued investment in research and development to fuel future innovation.

Financial Highlights

50 data points
Beta

Revenue

$1.55B

77.8% Gross Margin

Net Income

$290.30M

18.7% Net Margin

EPS (Diluted)

$0.50

Total Assets

$13.27B

Cash & Equivalents

$2.69B

Free Cash Flow

$516.20M

Financial Statements
Beta
Revenue$1.55B
Cost of Revenue$345.20M
Gross Profit$1.21B
R&D Expenses$280.70M
SG&A Expenses$514.60M
Operating Income$307.10M
Net Income$290.30M
EPS (Basic)$0.50
EPS (Diluted)$0.50
Shares Outstanding (Basic)584.70M
Shares Outstanding (Diluted)585.70M

Key Highlights

  • 1Net sales increased by 14.7% to $1.55 billion for the three months ended September 30, 2025, compared to $1.35 billion for the same period in 2024.
  • 2Transcatheter Mitral and Tricuspid Therapies (TMTT) sales showed exceptional growth of 59.3%, driven by the PASCAL system and the EVOQUE valve.
  • 3Transcatheter Aortic Valve Replacement (TAVR) sales grew by 12.4% due to strong performance of the SAPIEN 3 Ultra RESILIA valve.
  • 4The company incurred significant litigation expenses totaling $90.4 million during the quarter.
  • 5An intangible asset impairment charge of $40.0 million was recorded related to developed technology assets.
  • 6Net income attributable to Edwards Lifesciences Corporation decreased to $291.1 million from $3,070.8 million year-over-year, largely due to a significant gain from discontinued operations in the prior year's quarter.
  • 7Cash and cash equivalents stood at $2.69 billion as of September 30, 2025, with ample availability under its revolving credit facility.

Frequently Asked Questions

Revenue growth was primarily driven by strong sales of Transcatheter Aortic Valve Replacement (TAVR) products, particularly the Edwards SAPIEN 3 Ultra RESILIA valve, and Transcatheter Mitral and Tricuspid Therapies (TMTT) products, including the PASCAL and EVOQUE systems. Net sales increased by 14.7% to $1.55 billion.

Significant expenses impacting profitability included $90.4 million in certain litigation expenses and a $40.0 million intangible asset impairment charge related to developed technology assets. Additionally, gross profit as a percentage of net sales decreased due to foreign currency fluctuations and higher operational expenses.

Edwards Lifesciences maintains a strong liquidity position with $2.69 billion in cash and cash equivalents as of September 30, 2025. The company also has a $750 million revolving credit facility with no amounts outstanding and has continued its share repurchase program, demonstrating confidence in its financial health and commitment to returning capital to shareholders.

The company has completed the sale of its Critical Care product group in September 2024. Additionally, it has entered into an agreement to sell a non-core product group, expected to close in the fourth quarter of 2025. The financial results of these divested businesses are presented as discontinued operations.