Well, good afternoon, everyone. Would like to welcome everyone here to a presentation from Omnicell. Very pleased to have the management team here today. Thank you for making the trip. You probably don't know this, I spent about five years at Baxter, I got very familiar with the pharmacy space. While we don't cover Omnicell, we've sort of seen the company out and about when I was doing customer visits and also just doing kind of the general market research. Really pleased to have the opportunity to sit down with you and talk a little bit about the business. Well, glad to be here, David. Thanks so much. Maybe we just sort of start with some high-level framing here. You've come out of a tough period for the business, now you're seeing growth kind of re-accelerate here. Maybe just help us think about just the evolution of the top-line growth rate the past couple of years, how we should think about, maybe if we'll start with 2026, we'll talk a little bit later about the longer term? Sure. Well, the pandemic was a big acceleration of our business and really brought in the product cycle. We saw decreased growth, probably for the first time in a long time, in 2023 and 2024. Now we've returned to growth in 2025. We've launched a new product. We're standing on the precipice of our next cycle of brand-new exciting products, both front-end, back-end. We've also entered specialty pharmacy in a big way. The business has two levers now, sort of the revenue and earnings-producing side of pharmacy and big providers, as well as the cost containment and control of medication management on providers on inpatient and outpatient. Yeah. Maybe we could dive into the market a little bit here, because obviously, you and Pyxis have been around a while. Medication management continues to be a pretty big challenge for hospitals. What would you say in terms of just market dynamics? What have you solved? What still needs to be solved, and what are your customers telling you now are their biggest priorities? Well, just in terms of medication management, medications are the number two largest expenses for providers right after labor. It is something that's very concerning and does have the duality of offering both revenue and earnings capacity as well as cost containment. Getting the meds right is important to getting the right outcomes. Sort of in that sphere, we've seen medication move to sort of a nice-to-have some automation products to a must-have to mission-critical, to having whole visibility, not only in a hospital, not only in inpatient, but in outpatient as well. There's a really big lean in to wanting a total enterprise viewpoint that can be rationalized across hundreds, if not 1,000 facilities, to make sense. That is something that we see all the time as being on the docket for these customers as they expand. They're continuing to get bigger, even in disjointed geographies, which is pretty amazing. To make great decisions on medications means you can make the difference in your margin on your business. You need a system that can be enterprise-wide and acceptable. One of the things that's always interesting about a story like Omnicell or conversations we have around either Pyxis or this business, that you always get kind of bucketed like it's an equipment company. If you look at your revenue, it's a little over half products, I think, and then the rest is software and service. What is Omnicell today, and how do you think about the framing of the business? Great question. It's more hardware-centric in the earlier days, and now it's becoming more software services-centric because you just don't need a piece of hardware to manage the drugs itself. You need all the intelligence that helps you get drugs to the right place. If you think about some of these institutions, they have 1 million discrete locations where they're trying to manage meds to a very precise level in order to be able to give them to the patient at the right time and the right way. With that equation of difficulty, you can't do that with people. You've got to have great intelligence and systems that really operate at a whole different level. It's exciting to see how AI and cloud-based systems can start to really make a dent in some of the expectations of what you can really refine in the processes. How are you now selling to customers? Are they moving to a SaaS model? Do you talk about ARR as a metric now? How is the business model changing? There's more components on the software SaaS side more naturally. We want to take the workload off our customers. Taking the servers out of the basement and moving them into the cloud, taking cybersecurity, taking the management of upgrades and all those things, we want to take that on for our customer because it's just better. Those are fees, and those are recurring fees. There's a connection fee to that cloud base as you need storage or compute power or other things associated with it. We're able to move more of our services along with the hardware. You still need the hardware, but you can not only purchase it but lease it or in some cases actually rent it in order to get the results you want. Our business is, people like to think of it as when is just the next product cycle, but it's so much different than it was even five years ago. I would think on the software side, obviously the pace of much faster. Are you equipped to deliver over-the-air upgrades and software launches? Great question. In the on-prem equipment bases, you can deliver about two software upgrades a year, maybe a major and a minor. As we move to the cloud, we have upgrades every 30 days. Our ability to accelerate innovation, accelerate results, and provide more services for our customers, where we're actually doing the hands-on work, maybe with some of the optimization and other things, is more enabled by that. Just operationally, just to be sure I understand this. When you're taking a hospital from on-prem to cloud a re you actually doing that? What are you actually moving and what's on the hospital and what's on you? Well, we're actually taking their on-prem equipment and moving it into the cloud and connecting it into our OmniSphere. It's all our product. At that point, it's all managed by us. That's a huge relief from the institution. They are paying money today to obviously manage on-site, provide computer space for it. They're redirecting those dollars from internal to external to us. That's a new revenue source for us, but probably more importantly, it's a better customer experience. It also means that as we deploy different types of equipment, not just sort of the main cabinet that goes on nursing floors, but other kinds of devices, they become plug and play. You plug them into the network, they get lit up, get connected to the OmniSphere in the cloud, and then you're able to aggregate all that data and workflows in a single place. Then I wanted to jump into some products in the business in a second, but one more strategy question. When BD bought CareFusion, which obviously is a while ago, part of the strategy was sort of comprehensive medication management and this sort of end-to-end, the pump is going to call up the dispensing cabinet and tell it what it's needing. Somehow it's going to get from there, the dispensing cabinet in the basement up to the patient. It kind of made sense sort of, but I wonder sometimes, as you think about your positioning in the market competitively, how do you think about end-to-end medication management and where you play? Well, medication management's important. There's a lot of medication management processes that go on the nursing floor. There's a lot that go down before meds get to the floor, like robotics for mixing and compounding. Fluids management is a big piece of it, and look at the specialty drugs we have coming queued up. 25% of those are going to be infused. Having products and services that help enable that in institutions that are not ready for that kind of growth is important. I don't think we want to own just every space. As long as we can rationalize and connect into that space, that's the most important part. Okay. Maybe let's jump into some of the products. Let me talk about Titan XT. You've talked about that as your third-generation platform. Tell us a little about features and benefits and what are some of the differentiators that you're bringing to market here? Well, I hate to, it's really cool. It's not just, "Oh, it's an upgrade, an improvement over the old." We started with a clean sheet paper, started all over. It really predicts what people are going to use the system for. When a nurse comes up and it's time to get meds out for a patient, it predicts what patient she most likely wants. It's 9:00 A.M., here's the 9:00 A.M. meds. It already has it queued up, and it says, "This is what you want." Two clicks and you're in and you're out, you have the meds flowing out. This is versus the old way of, "I want to get this patient, and I want to get this drug and this drug." You don't have to do that anymore. As you can see, it's just so easy to use. All of this predictive setup really releases the nurses from burdening them down with doing all these tasks individually. The same thing for pharmacy techs. When pharmacy techs interact with the system, it actually gives them a menu of things they need to do at that moment when they walk up. This kind of tech really allows nurses and pharmacists to be quickly in-service on how to use the product. They don't need a lot of training. It's very intuitive. If I were to come up and just ask you to use the new system and say, "Pick out three drugs for Randy. It's 9:00 A.M." You could instantly do it. If I ask you to do that on our old system, you'd say, "Well, you need to send me to training. I don't know what to do at this point. This is a huge step function past where we've been. The fact that it's operating in the cloud as well as a very strong edge system, it really allows us to be able to implement new changes, new innovation, faster than we ever could in the past. That's what I'm excited about. I used to hate going to see 10 customers and, boy, they all want this one thing. Yeah, let's put that in the roadmap. Okay, that's two years from now. Now it could be 60 days from now or 90 days or 180 days from now. The business is fun again. It's almost like we're starting over, and we're inventing new stuff and moving fast. For Titan XT, you might take back your comment that even I could figure out- I'm a Baxter guy. I've always been trained well. When I ask that question, I want to ask my next question, how does this actually work? How does it know? How does it ingest the data to figure out that I'm going up at 9:00 A.M. to pull a script for Randy? Is it actually visualizes for us? I walk up to it, and it knows that it's me, and it knows that I take care of patients. You have to self-identify at some point. Okay. You have to put your fingerprint or something that's you. Okay. You, as a nurse, have been either assigned or usually assigned certain patients. You've either taken a med out for that patient already or most likely have these rooms when you come there. It knows all these things. Now, it may predict something that's not quite right, so you may have to adjust it. Most of the time, as you use it more, it gets better and better and better. All patients have meds scheduled that haven't been fulfilled yet at a certain period of time over a certain window. It's pretty easy to predict what you're there for, and you need to apply those meds in order to be medically correct in getting those meds to the patient at that time. It sounds space age, it's pretty intuitive, and it's probably one of the areas that we get the most amazing feedback from, is we don't really have to sell them on them. We just said, "Try this, try that. What do you like and why do you like it?" It's very satisfying seeing people use it. How do you think about the product development and needs when you go through different sites of care, whether it's a hospital pharmacy, on the general floor, in the ICU? I don't know if you're in the retail pharmacy. Do you need different platforms for each setting, and how do you think about that? You definitely need different settings for each of those, ICU, ER, general med surge floor, even certain other kinds of floors, you may need different dynamics based on additional protocols that need to be followed. All those are customizable. What's really cool about our innovation center and in our executive briefing center, you can go set up all of those from a corporate standpoint and then push a button and roll them all out before they're even shipped out. Then it's literally plugging it in and provisioning the system on site, lights itself up, and it doesn't take a lot of people on our site or their site to get the system going. Physically, you just need to transfer the meds over. This is just I've been in this business so long, we've been studying these problems for so long. We finally decided, "Let's just kill all these problems off, and let's make this easy." The biggest part of healthcare adopting new technology is how adaptable, how much pain does it cost to change? If you remove the pain of change, you're going to get people taking the tech all day long. Okay. That's a good segue to kind of jump into the business a little bit. You came out of the gates, had a strong Q1. You exceeded revenue expectations, as well as all profitability metrics. You kept revenue guidance unchanged for the year, that reflected the earnings outperformance, on the bottom line of the year. Maybe now with a little bit of reflection, give us some thoughts that contextualize Q1 and kind of your decision to leave guidance unchanged? We shared with the markets at the Q1 earnings, that we felt that we were still within the range of the full-year revenue being a quarter in. We're partway into the year. We definitely saw some early signs that showed profitability following through for the rest of the year. Couple things. One, we've been pretty disciplined on our spend management, so we're starting to see some early wins there. In terms of margins, we saw favorable gross margins in the first quarter, a little higher than the upper end of the normal range. As we prepared our full-year guidance, we brought back to a place that we thought was more reflective of a full year. Solid Q1, high end of revenue, beat on earnings, we were able to cascade the earnings component, a big chunk of it, forward throughout the rest of the year. As you think about the revenue side of it. How much of this was, well, it's one quarter in, maybe there's some market uncertainty out there, let's see what happens, or there's only one time in Q1? I think we have good visibility to the year being within that range, and I think we find ourselves trying to manage through from the end of the cycle of XT, which is now in year 10, to the entrance of the new product, Titan XT, which is in year zero. We want to find a thoughtful, smooth management through. What we found for our employees and for our customers is the consistency of implementation within the customer sites is really helpful for managing our cost structure and managing our customer's experience, both of which are important to us. I can see the intuitive thoughtfulness and guidance coming through. I don't know how long Jamie and Marshall trained you on expectations management, but clearly, I can hear it. Maybe just on that product cycle transition. Handoffs are really tough when you go from one product launch to another in any business. What are some of the things that you guys did to prepare to make it as smooth as possible, and have you contemplated any hiccups in that transition? I think our last big transition, when the G-Series to the original XT Series, we made some mistakes, and we had a lot of learnings. One of the mistakes is we had a hard cut-off pretty quick on our G-Series, and we really kind of forced all of our customers to quickly move to the new series. A lot of them were fine with the G-Series and said, "Look, I'll make my decision to move to the next generation in a couple of years. I just want to run my operation, and I don't want to disrupt what I have or my expansion plans." In this case, we're still going to be able to sell our old series XT as well as our Titan XT. It just depends on where you are as an institution. We'll make it as easier to facilitate both, but we're not going to cut off immediately both series or start to try to reconvert old orders into new orders, those kinds of things, unless the customer really, really wants to. That will make a smoother transition instead of having sales people go back and redo orders and things like that. Secondly is giving customers not just how does the transition work for the hardware, but how does all the software work Setting up a three to five-year plan so that they can really understand where each of these pieces come into play and what options they have. Putting that strategic plan together with the customer that works over the next two or three years, and making sure it meets their priorities. Having a very specific plan that allows for the rollout of product where they want it and at the speed that they want it. That's one of the things that particularly Baird and the team have brought into the company, is this more consistent rollout, steady quarter to quarter without a lot of fluctuations, which gives us better cost, better quality, and customers are. Just the higher expectations for both sides is exactly what's going to happen. Then it does happen when it does that way. I think we're really set up for the transition, and we're giving you plenty of time to announce, with plenty of beta testing time. I think we've done a lot of things a lot differently than we've done in the past. It's exciting as every quarter goes by that we do the check boxes and then move on to the next set. Excellent. Maybe just coming back to the question on guidance for a second, you just sparked one there. You talk about having a lot of visibility to the year. Maybe just unpack where the source of that visibility, how far in advance you really kind of view when backlog converts to revenue, and what are some of the leading indicators that you watch to kind of reinforce that confidence? I think a couple things, David. The team has done a really nice job of engaging with our customers. It's a way to not only sell the product, but to actually set up the implementation and the ultimate usage experience. That increased engagement has given us greater clarity on scheduling, which has allowed us to manage our workforce accordingly. That experience also provides line of sight during the course of the year, which is really helpful in satisfying those customer needs. How far in advance One of the things I want to ask, as you close in, does visibility go up or is it just. As you would anticipate, you start to look one to two quarters out, you got a high degree of visibility. As you get to three to four, you have a good degree of visibility. Out beyond in a thoughtful, consistent manner. 90 days out, 180 days out is really nice clarity in the business, and that allows us to set up to satisfy our customers. Maybe just on the market for a second. You've talked about a $2.5 billion annual. A refresh cycle. Right. It's about a 10-year cycle. Refresh cycle. The $8 billion-$10 billion ADC market you talk about, is that accumulated over the o ver the duration. Has there been any, I think BD is about to go through a product refresh, this turnaround product refresh. Is there any kind of abnormalities that occur in these cycles? Obviously, you had COVID, where do you think we are in the kind of ADC replacement cycle? The ADC replacement cycle is prime over the next several years, where the other primary party in the space has market share leadership. We've been steadily chipping away at it over the years. They have a significant number of their hardware units that are coming off lease and are subject to renewal. We are entering that year 10 of the natural refresh of our hardware. As I look forward over the next two, three, four years, I think it's a really exciting time in the space, I think the innovator mentality that's very focused on the customer experience should prevail. Maybe just talk a little about robotics and AI. You just hired someone to lead the clinical, I just hired clinical leadership with Perry coming into the organization. Maybe talk about your vision for that opportunity, what you're hoping gets accomplished here, how are you going to measure success? Yeah. I think we have two primary roadmaps there. One is to use AI to supplement faster, better, cheaper work, whether it's engineering or customer service. We have initiatives everywhere in the company. Everyone in the company must be trained in AI and how to use it and operate it. It's not just to certain departments. We think we can drive efficiencies and better returns. We're all learning at a pretty fast pace. We really think native agentic AI is really important to the business, we have a separate stream working on that. We believe that that will actually help accelerate new products and new services that are solution-based. They're just not services, we'll just do the work for you. To me, that's really exciting. Because you look at most big hospital providers have shortages in their tech spaces. They don't have enough techs to do the pharmacy workload required to meet the operational needs. If we can move some of that off their plate with AI and with robotics, I think they're very hungry. Some of these tasks are pretty simple and easy to do or don't take much work if it can be supervised or reviewed from a quality standpoint. I think we'll be able to provide actual solutions and workload removal from our customers. One of the things I've always struggled with is how do you monetize a solution-based business? It makes a ton of sense for the customer, what's the business model? Well, there's two or three things. One is, as you take off workloads, you pay a fee they pay you a consumption fee based on, not so much people time, eventually it rolls into tokens and compute time that you're providing on their behalf. To provide these solutions. I wonder, maybe you would be a better advice on this, I wonder if that's going to be sort of the currency of the future, is really how much compute power are you using and how much expertise or domain expertise do you provide that can give you a view and a solution that no one else can provide? Interesting. Okay. Well, we'll look forward to staying tuned on that getting further updates. Sure. I want to turn to the P&L in a second, EnlivenHealth has been a little bit of a drag on the SaaS business. Maybe just unpack for us a little bit, what are the factors contributing to that, what turns it around? Well, retail, the whole sector has been sort of a drag these days, and we have been retooling our business to meet more of their needs. Where there's a little bit of a crisis, I think there's a pretty big opportunity. We reformatted some of our solutions and reformatted some of our engineering to provide new solutions to these issues that these institutions have, particularly to be more competitive in the marketplace with the likes of Amazon and so forth. Is it a strategically important business to you? As long as it's growing and it's increasing in revenue, it should be. Okay. Our providers do use retail, and retail, not all the pharmacies, other than specialty, have a strong retail strategy. Some do and some don't. Okay, maybe just toggling over to the P&L for a second here. I mean, the gross margin has quite a bit of variability in it between that 43% and 46% level. Help us think about the drivers there. The quarters are always important, how should we think about sort of the broader gross margin trend? I think we'll always see some variability from quarter to quarter. The drivers of that largely are about which products we end up placing and installing during the quarter and recognizing revenue. The other part of it is what customers did we implement at? What was our strength in negotiation in terms of ultimate pricing there? We'll see some variability. Couple things I'd point to. 2025, we saw an increase in software, field software upgrades, that impacted our service margin. We'd anticipate seeing improvements in 2026 over 2025 as a result of that. As we enter our new product offering in Titan XT, we'll be introducing it at a modest premium in price. We believe that we'll be able to expand margins as we work through the initial ramp-up and scale-in process on the manufacturing side. Over time, we're definitely focused there. You brought up token cost. This is now coming up as like a thing on earnings calls, not just in IT hardware and software, we heard about this from GE HealthCare, we heard about it from Canon, a few other players. How are you thinking about sort of the surging cost of chips and memory and other key inputs while we're on the topic of gross margin? Yeah. I think it starts with our supply chain team. They've done a really nice job of building vendor relationships that allow us to protect the resiliency of our supply chain. By that I mean our ability to procure the goods necessary to deliver product to our customers timely. They've done a really nice job there. We look at where we can qualify new vendors, we look at opportunities to advance buy when there's periods of compression in the supply availability. We'll look to continue to manage that. I think it starts first and foremost with a team that is leaning forward and trying to address this proactively. It's something we're all going to face in this industry, it's something that we're doing eyes wide open. How much can you do if memory price is up 40%? I think it starts with memory is a relatively smaller component of our cost. Largely our cabinets are steel and frames that are created. There is an electronic component to it that we have to manage through. This is not the core capability or the highest contributing cost is memory. Fluctuations in memory or in chipsets definitely will cause an impact in the business, but we're managing our way through that. Okay. Maybe just lastly on EBITDA, maybe it's an artifact of timing. I think if you look at your second quarter adjusted EBITDA guidance, it's for a little bit of a step down versus what you produced in Q1. How should we think about kind of cadence of EBITDA? I think I'd frame it more as Q1 was a bit of a step forward, and Q2 is a step into the normalized range. By that I mean Q1, we were at the higher end of our gross margin. You had talked about 43%-46%. We were at the upper end of that. The second thing that we saw was management side is careful, and sometimes that means putting up some toll gates before spending goes through to make sure it's the appropriate return that we would anticipate. We signaled to the market that a portion of Q1 was higher margin on products and mix, and a portion of Q1 EBITDA over-performance was a result of delaying certain purchases that'll be made over Q2 and Q3. Okay. No holding back on growth-related investments? No, absolutely not. We're green light on the sales force, the competitive front, and bringing both Titan XT and OmniSphere into the marketplace. Those are clean green lights, and it's the back office, and it's the other aspects of our business where discipline is important and w anted. We're being a bit more mindful. Excellent. Maybe we'll just close on capital allocation. You've gone through this process. You had to convert, you were buying back stock, and now you're in a pretty good position. How are you thinking about use of the balance sheet? Well, I think on the make or buy decision, I think for smart products, we think that we can buy and integrate quickly, and they're quickly approved and sit in the salesperson's bag right away, and they're, in some cases, already in the market. I think it makes a lot of sense to look very closely at those. In both spaces, in specialty and in our workflow inventory business, it makes sense to look at those, particularly if they can be connected into the OmniSphere. That's the key, because as you connect in more products, more systems, you're just able to collect and aggregate the data and fix it out. On operating leases, I don't know if you wanted to. Yeah, I think I'd start with the use of capital at the places where we believe we have the best right to perform and win for shareholders. That's in our core business. What we learned over the back half of last year is having an on-balance sheet, easy-to-offer leasing or rental program for customers kept us in the game longer on competitive opportunities. We've done it historically. We want to lean into that of return of capital through the expansion of the top line and profits that come with it. We're going to spend more time on leasing going forward and making sure we're meeting customers where they are on whether it's capital sale or whether it's a leasing sale. Excellent. Well, I think we're just about out of time. Maybe I'll turn it back to you to see any closing remarks, Randall. I think you have your Q1 earnings yearly conference meeting with investors. What's the message you want people to walk out of here with as we gear up for second quarter earnings? Well, I would just say, as we gear up for the year to the next year, it's an exciting time to be a part of Omnicell. We've got the whole leadership team. Probably our Triple A Leadership has changed over or been remade over the last two years. Have the best management team ever. We're ready to double the size of the company as we start this next growth and innovations sprint that we're on. It's just a great time to be at Omnicell, and I thank all the employees and people who have been making and getting us set up for this run, and it's just really exciting. It's attracted a lot of great management people. We just hired a new leader to take over for our specialty, a seasoned veteran in the arena. We're set and ready to go. This is the start. Excellent. Well, that's a great place to leave us. Thank you for making the trip to Miami, look forward to getting the next update in August. It's been great. Thanks for the questions. Thank you.