• Underlying net profit expected at $390-400 million for FY25
• Services revenue to decline by low double-digits
• Cochlear implant units to increase by around 10% for FY25

Cochlear Limited (ASX: COH) today is updating its FY25 earnings guidance following slower-than-expected sales growth over the last few months. The company now expects to deliver underlying net profit of $390-400 million for FY25, down from previous expectations. Cochlear had anticipated a single digit decline in Services revenue for FY25 after two years of strong growth following the launch of the Nucleus® 8 Sound Processor, but now expects it to decline by low double-digits. The company continues to work on identifying and connecting with recipients who could benefit from the latest sound processing technology, and expects these initiatives, combined with the introduction of the new off-the-ear Nucleus® Kanso® 3 Sound Processor, to lift Services revenue in FY26. Cochlear implant units are still expected to increase by around 10% for FY25, with growth weighted to the emerging markets. However, growth in the higher value developed markets has been impacted by slower-than-expected market growth and a small loss of market share in a few countries. Cochlear's next generation cochlear implant system will launch in Europe and Asia Pacific from mid-June 2025, with further markets to follow pending regulatory approvals.

Underlying net profit expected to be $390-400 million for FY25