The CooperSurgical segment's office and surgical net sales increased primarily due to the acquisition of obp Surgical on August 1, 2024, and the Cook Medical assets acquisition on November 1, 2023. These acquisitions contributed to the segment's 7% YTD growth to $609.5 million in office and surgical sales.

CooperVision's net sales grew 6% in Q3 2025 and 5% YTD 2025, driven by strong performance in Toric and multifocal lenses (10% Q3 growth) and Sphere, other lenses (3% Q3 growth). Success was attributed to products like Biofinity, MyDay, and MiSight.

R&D expenses increased 14% YoY to $44.6 million in Q3 2025 and 11% YoY to $130.8 million YTD 2025. CooperVision's R&D focuses on contact lenses and manufacturing technology, while CooperSurgical invests in surgical devices and fertility solutions.

CooperVision's operating income increased 17% YoY to $202.6 million in Q3 2025, with its operating margin expanding to 28% from 26% in the prior year. This indicates successful management of sales growth outpacing operating expense increases.

CooperSurgical's operating income decreased 110% YoY to a loss of $(4.2) million in Q3 2025, primarily due to inventory and long-lived asset write-offs related to a product line exit. This suggests challenges in operational efficiency and strategic product portfolio management.

Management concluded that disclosure controls and procedures are not effective as of July 31, 2025, due to a material weakness in IT general controls within the CooperSurgical segment. Remediation efforts are underway, including enhancing risk assessment, employee training, and strengthening change management controls.

The company highlights continued uncertainty from global/regional business, political, and economic conditions, international conflicts, inflation, and foreign exchange rate fluctuations as significant risks. These factors could adversely affect sales, cash flow, and overall performance.

Risks include compliance costs and potential liability related to U.S. and foreign healthcare regulations (e.g., HIPAA, CCPA, GDPR) concerning privacy and security of personal information. The threat of successful cybersecurity attacks is also noted as a significant risk.

The filing notes risks from disruptions in raw material supplies, particularly for silicone hydrogel lenses, and intense competition from new products, technological advances, and competitor expansion through acquisitions. These factors could limit growth and increase costs.

CooperVision's growth in net sales in the Americas and EMEA was primarily attributed to market gains of silicone hydrogel contact lenses. This indicates a strengthening competitive position in these regions, driven by product acceptance and market penetration.

CooperVision's MiSight 1 day lens, utilizing ActivControl technology, has received FDA and Chinese NMPA approvals. This provides a significant competitive edge in the growing myopia management market, differentiating its offerings from competitors.

CooperSurgical competes in the fertility and women's health care market with a diversified portfolio of products and services. The company protects its products through patents, trademarks, and trade secrets, relying on continuous technological innovation to maintain its market position.

Consolidated gross margin decreased to 65% in Q3 2025 from 66% in Q3 2024, primarily driven by inventory write-offs related to a product line exit. This indicates a specific operational decision impacting short-term profitability.

SG&A expenses increased 10.7% YoY to $421.7 million in Q3 2025, with CooperVision's increase due to selling activities and CooperSurgical's due to long-lived asset write-offs and increased selling activities. Corporate also saw increases due to higher salaries and benefits.

CooperSurgical's operating income decline was significantly impacted by inventory and long-lived asset write-offs related to a product line exit. This suggests a strategic decision to streamline offerings, but with a short-term negative impact on operational results.

R&D expenses increased 14% YoY to $44.6 million in Q3 2025 and 11% YoY to $130.8 million YTD, reflecting ongoing investment. CooperVision focuses on contact lenses and manufacturing technology, while CooperSurgical invests in surgical devices, fertility solutions, and manufacturing enhancements.

CooperVision's MiSight 1 day lens, utilizing ActivControl technology, has received FDA and Chinese NMPA approvals. This demonstrates successful innovation leading to expanded market opportunities, particularly in the growing myopia management segment.

The company relies on patents, trademarks, trade secrets, licenses, and technical know-how to develop and maintain its competitive position. It actively monitors and enforces its IP rights, which is crucial for protecting its R&D investments and market differentiation.

Total debt decreased by $105.4 million (4.1%) to $2,478.3 million as of July 31, 2025, compared to October 31, 2024. The company also entered a new $2.3 billion revolving credit facility in May 2024, repaying prior borrowings and extending maturity to 2029.

The company repurchased 0.7 million shares for $52.2 million in Q3 2025 and 1.2 million shares for $92.8 million YTD 2025, with $163.6 million remaining authorized. This indicates management's belief in the intrinsic value of its stock and commitment to shareholder returns.

The Board of Directors decided to end the declaration of a semiannual dividend in December 2023. This strategic shift suggests a prioritization of retaining capital for internal investments, debt reduction, or share repurchases over dividend payouts.

The 10-Q mentions 'Risks related to environmental, social and corporate governance (ESG) issues, including those related to regulatory and disclosure requirements, climate change and sustainability' within its forward-looking statements. However, the filing does not provide specific details on current ESG initiatives, commitments, or progress.

The company highlights compliance costs and potential liability related to data privacy laws like HIPAA, CCPA, and GDPR as a risk factor. While not explicitly an 'ESG initiative,' effective management of these areas contributes to social responsibility and good governance practices.

The filing states, 'There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K for the fiscal year ended October 31, 2024,' implying that ESG-related risks remain consistent with prior disclosures without new or escalating concerns or initiatives.

Management expressed optimism about the long-term prospects for the worldwide contact lens and general healthcare markets, and the resilience of its businesses. This outlook persists even while acknowledging significant risks from global macroeconomic, political, and economic conditions, inflation, and foreign exchange rate fluctuations.

CooperVision's growth in EMEA was positively impacted by favorable foreign exchange rate fluctuations, contributing to the segment's 14% YoY sales growth in Q3 2025 and 8% YTD 2025 in the region. This highlights the influence of currency movements on international sales.

The company continues to face risks from new and changing U.S. and foreign government laws and regulations, particularly those affecting the health care and medical device industries, including EU MDR and IVDR, and data privacy regulations. This necessitates continuous monitoring and adaptation.