Hi, everyone. My name is Rohan Patel. I'm a medtech analyst at J.P. Morgan. It's my pleasure to have Haemonetics here with us, and I'd like to introduce CEO Chris Simon for a presentation.
Thanks, Rohan, and thank you to J.P. Morgan for hosting the conference and giving us an opportunity to discuss our strategy and plans for long-term shareholder value creation. Thank you all for joining, both here in the room and on the Webex. First point, just a necessary disclosure. Our remarks will include some forward-looking statements and some Non-GAAP numbers, so the usual safe harbor and risk factors apply. Please see our SEC filings for additional details. If I step back and try to share with you Haemonetics at a glance, the way I would articulate it is that we're the global leader in plasma apheresis. We see that as a $1 billion addressable market growing at least in the mid-single digits. It provides a highly durable source of EBITDA, very attractive return on invested capital, and robust free cash flow. We value our leadership position globally in that franchise.
Unfortunately, that business is also characterized by systemic risk and cyclicality. So, to further accelerate our growth and reduce the volatility, we made a decision to diversify into attractive MedSurg markets. We want to do so while avoiding competition with the therapeutic category leaders in those markets. We do this by acquiring and growing a portfolio of scalable, therapeutically agnostic, enabling technologies in areas like in vitro diagnostics and vascular closure. As a result of that effort, today we have leadership positions not only in plasma, blood management technologies, and interventional technologies, which are really our three core product platforms. Additionally, as the slide highlights, fully three quarters of our revenue is generated right here in the U.S. from products that are manufactured here in the U.S. or elsewhere in North America, which provides a natural buffer both for geopolitical and for macroeconomic uncertainty.
In terms of our transformational growth, we think about this as a four-year LRP that ran from the beginning of FY22, our fiscal year, back and then completes in one additional quarter here in fiscal 26. The focus on that LRP has been about building high-quality, sustainable growth engines driving revenue, margin, and cash flow expansion. They are the three goals and the three metrics that define us. Again, revenue, margin expansion, and free cash flow. Over the LRP, we've made meaningful structural changes to the portfolio and to the business. We think this has created a durable, recurring revenue base with clinically differentiated technology. It's a significantly higher margin business, higher margin revenue base from attractive, supportive markets. We've now beginning to create meaningfully greater operating leverage as we continue to improve our scale and efficiency.
We have significant momentum, and there is an opportunity for real long-term value creation yet to be unlocked. In 2022, we committed to an ambitious set of goals against these priorities: revenue, operating margin, income, and cumulative free cash flow, all while transitioning from what was then our largest customer worldwide, which represented over $100 million in revenue and roughly one-third of our adjusted earnings at the time. Here we are, 15 of the 16 quarters through that LRP, and we believe the performance speaks for itself. We expect it now at this point, in the midpoint of our current guidance, 8% total revenue compound annual growth rate, or 13% organic revenue when you separate out that one customer transition and some other non-core divestitures. We have improved our operating income margin by 770 basis points of adjusted operating margin expansion at the midpoint of our current guidance.
In fact, through the first half of the year and our most recent quarter, we were already at 26.3% operating income margin, with additional expansion anticipated in the second half of the year. Adjusted EPS is expected to compound at roughly 17%. That's been supported by pricing discipline and productivity, as well as important mix change in revenue and volume. We've also, on a trailing 12-month basis, we have a 92% cash to adjusted earnings conversion ratio, which we think speaks to the vitality and the optionality of our balance sheet now and going forward. We believe this portfolio transformation is laying the foundation for sustainable growth going forward. In FY22, when we issued the plan, 30% of our revenue came from lower growth, lower margin businesses. In FY26, our core high-growth, high-margin businesses now represent fully 85% of our revenue stream.
This ongoing shift has been both deliberate and disciplined, and we exited or de-emphasized non-core assets and relocated capital and talent to platforms with the largest addressable markets, faster innovation cycles, and structurally higher margins. The impact is increasingly clear in both mix and momentum. With the portfolio transitions largely behind us and the mix structurally aligned to this higher growth portfolio, we expect the next phase of value creation will continue to drive sustained earnings power, robust cash, and improving returns on invested capital. Through the process of diversification, we've changed. And I've heard from some that we've become complex. From where we sit, we don't see it as very complex. In fact, we run a simple and highly focused growth model. Most revenue and all of our growth comes from three core product platforms.
Each of these platforms holds a clear leadership position in their market: NexSys PCS for plasma, TEG 6s in viscoelastic testing, Vascade product family, MVP in particular in electrophysiology. All three compete in large and growing markets and are supported by a high-velocity innovation pipeline that we are absolutely committed to investing in, enabling sustainable above-market growth. I'll start with plasma. It's the foundational earnings and free cash flow engine for our corporation. It's a durable business that performs well in pretty much any economic cycle where we are the undisputed market leader. Global plasma collections addressable market, which excludes China, is approximately $1 billion today. And we lead with something now exceeding 50% market share, supported by deep customer engagement and technological differentiation in our core platform. End-market demand remains strong and durable in support of a $30 billion global biopharmaceutical industry.
Despite progress at the end market with products like the recombinant, Ig remains irreplaceable for many patients, especially those suffering from primary and secondary immune deficiency, which is growing in the double digits. We have the technology leadership position. We are, in fact, and continue to be, the industry standard. We're the most trusted partner and the only provider of a fully bi-directionally integrated plasma collection platform. Our technology is purpose-built and designed around customer key performance indicators: yield, efficiency, donor safety, and the donor experience, ultimately leading to a lower cost to collect and an improved cost per gram collected, and of course, the most important metric, perhaps, is favorable donor retention. Our NexLynk DMS is a strategic differentiator and essentially the secret sauce of that platform. We have the best DMS software here in the U.S. market.
It is bi-directionally integrated with NexSys, and it materially improves workflows, throughput, real-time operational decision-making, and center-level productivity. Recent NexLynk competitive wins have solidified 80% share here in the U.S. DMS market, and it extends and expands our plasma margins, providing operational visibility into over 1,000 customer centers, a great source of renewed innovation for the company. Our late-stage pipeline that we'll talk about more later this coming year is, as I said, purpose-built to extend this leadership. We are at a point in the market where collection growth is normalizing, it's re-accelerating, and we're benefiting from strong end-market demand. We're benefiting from share gains, and we're benefiting from premium pricing for what is widely viewed by our customers as superior technology.
In the long run, we expect this franchise to continue to deliver above-market revenue growth, to expand margins, and to provide a durable source of free cash flow to fund our ongoing growth. If I shift gears now and talk a little bit about our hospital-based MedSurg businesses, first up is TEG. TEG is the standard for viscoelastic testing worldwide. It is our second-largest growth driver, and it is our largest and fastest-growing MedSurg hospital product. It, again, is a durable, high-performing business in our portfolio, consistently delivering double-digit annual growth, and despite our success, the opportunity ahead is equally substantial. This is a large, under-penetrated, and growing market. Additional indications, additional regulatory and clinical support will continue to advance our viscoelastic footprint, so TEG, as I said, largest, fastest-growing hospital product. Viscoelastic testing is a structurally attractive $400 million-plus addressable market.
The market itself is growing in the mid-single digits, and we've only really penetrated what we believe to be approximately 60% of the eligible procedures, so there's meaningful room to go. The recent global launch of our heparinase neutralization cartridge has created an inflection point, solidifying and reinforcing this potential to continue to grow at double digits as we expand adoption and push further into international opportunities. Why we win with TEG? Category leadership and clinical differentiation. It's the industry standard. Of the used viscoelastic testing, we have roughly 45% share. Of the head-to-head competition in viscoelastic testing, that share is closer to 75%.
It delivers real-time, actionable coagulation insights that improve clinical outcomes and reduce the cost to treat because when they make a transfusion, they make it with exactly the right product, and often they don't need to make the transfusion to get a better clinical outcome with patients. It's an exciting product that's at the sweet spot of growth in healthcare. TEG is also very capital-efficient for hospitals. It meets a high clinical unmet need with relatively low system cost, and it enables consistent capital placement even in tight CapEx cycles. As we grow and expand, we'll continue to leverage the TEG Manager software platform. It's a platform that has the potential to meaningfully drive physician heuristics. As we continue to advance the digitization of that platform with AI and other applications, it just gets smarter and more relevant.
Our market leadership position helps reinforce that, and we think it goes from strength to strength as we advance the platform. The third pillar of our three core platforms is vascular closure, particularly in electrophysiology. It represents our largest total market opportunity globally at roughly $2.5 billion, and our initial focus, our primary place to compete and win, is in electrophysiology, which we estimate to be approximately a $600 million serviceable market, including the U.S., Japan, and select European countries. We focus on the top 600 accounts here in the U.S. They represent 90% of the procedures. It's very concentrated. If you add an additional 200 hospital accounts in Japan, we've really covered the nucleus of the market, so it tends to be a very efficient opportunity for us to grow and expand our presence.
We have advanced vascular closure as an opportunity set that is meaningfully under-penetrated, even within our largest accounts, and creating a clear multi-year opportunity for us to continue growth and expansion. Why we believe we win in vascular closure, again, is clinical and, in this case, economic differentiation. Vascade, Vascade MVP, and Vascade MVP XL deliver clear clinical advantage and economic benefit to the clinicians and the hospitals that they operate in, and it is now supported by a large body of data with growing and further adoption. We help, in a meaningful way, reduce the need for medication, particularly opioids, for the fully resorbable closure. Ambulation has been reduced from six hours to two hours. 90-plus% of the patients go home the same day, and the hospital is benefiting from those economics and that workflow.
The introduction of MVP XL expands our relevance across emerging EP technologies and large core access, including both PFA and left atrial appendage closure. Expanded label, which is underway, will further strengthen our clinical evidence base. It'll reinforce our leadership position and widen our competitive opportunity. We will focus continually on those top 600 accounts. As I said, they're 90% of the opportunity, and there's a meaningful additional growth play for us. We are looking to expand geographically, particularly in markets like Japan, where our safety-first profile is exceptionally well adopted. We also continue to expand the addressable market through additional clinical applications that we'll talk more about later this year. We recently, last week, announced the acquisition of Vivasure, which unlocks an additional attractive TAM for the corporation.
We exercised an option that was two years in the process, outlayed an additional approximately $60 million with a series of potential earnouts that get us what we believe is a differentiated large bore closure platform with minimal dilution. Vivasure should extend our leadership across a full spectrum of advanced closure, from small bore, ranging up now through large bore, and ultimately with a 26 French OD outer diameter opportunity. As I said, we think it's a $300 million addressable market in large bore, primarily for TAVR and for EVAR procedures, adjacencies where we can leverage our existing vascular closure and structural heart efforts to meaningfully improve our relevance. It also should help strengthen our IDN and ASC enterprise value proposition and the contracting work we have underway there. The company itself is based in Ireland. It provides perhaps future flexibility as we continue to expand the IVT franchise.
And the product that we're most excited about is PerQseal Elite. It's currently under FDA review for U.S. release, with launch timing aligned to our FY27 growth aspirations. If I just talk about that clinical profile for a second, based on the most recent trial data, we think this is going to be a simple one-step deployment for what is a fully absorbable product with no need to pre-close. There are 0% major complications throughout a 30-day follow-up period and near instantaneous hemostasis, with a median time to hemostasis of 0.0 minutes. It's tuck-in innovation, as I said, that will leverage our existing footprint, and we hope we'll extend both our vascular closure and structural heart leadership.
If I now step back at the total company level and look at the financials that we've consistently delivered here across this most recent LRP, at a company level, the growth has been consistently compelling. Transformational growth strategies, we've outlined it, is portfolio evolution, investments in category leadership, and execution across our three growth drivers. All three of our businesses are contributing to margin expansion, and there's room to further evolve our portfolio and improve operating leverage in the years to come. We believe the trajectory of earnings and free cash flow that we are generating is an example and a testimony of the compounding impacts of this high-margin portfolio, operating leverage, and managerial discipline. We've more than doubled our free cash flow over this period, which we believe is now more normalized and reflects the strength and the optionality for this business going forward.
As we think about capital allocation, that free cash flow has given us an opportunity to really invest heavily in this business. Over the course of our transformation these past four years, we've deployed $1.3 billion of capital across four clear priorities: organic growth, particularly R&D and commercial expansion, M&A, and then shareholder returns, both in the form of debt repayment and getting capital back to our shareholders through buybacks. We are now studying carefully the returns, and we believe those returns on invested capital are catching up to our long-term growth goals, originally probably hovering in the mid-single digits at 6%-7%, now up double-digit 11% or better as we continue to move forward. We know we have work to do there, but we do so from a position of strength.
The newly acquired products are getting back on track over the course of the next LRP, and we believe all of our investments will deliver certainly double-digit return on invested capital. So we're excited about where we are. We're excited about where we're going, and look forward to answering any and all of your questions. Thank you. Thanks, Chris, for the presentation. I guess I wanted to start off with a bit of a broader question. You're currently in the last year of your LRP, as you'd mentioned, and I know you plan on hosting an analyst day later this year, so I don't want to front-run that. But are you able to talk a little bit more about your growth outlook for the business over the next, call it, five years? I guess you obviously are kind of making acquisitions with the Vivasure deal in hospital.
Plasma's performing quite well, but fiscal 2027's probably going to be the first year of normalized kind of ex-CSL growth, you could call it, in a while. And so I think it would be helpful just to get a sense for how you're thinking about some of the puts and takes on revenue and margin in fiscal 2027 and beyond. Yeah. For us, we run on a fiscal year that wraps up March 31st. So the immediate focus is finishing this year strong and delivering fully. We'll obviously talk more about FY 2027 and the new long-range plan when we come out with guidance in May. What I can say is this focus that we have, operating discipline, execution, around the three core platforms really defines us.
And we were excited, are excited to do the Vivasure deal that we think will be a meaningful benefit to the vascular closure and interventional cardiology franchise. But our primary focus will continue to be organic investments against those three core platforms and really delivering what we think is now an exciting growth platform. As I said, we like what we're doing in plasma. The plasma franchise has never been stronger. That provides a durable nucleus for us. And then we'll continue to build and expand and improve the execution of our hospital-based MedSurg businesses as part of that growth.
Got it. Is there any kind of color maybe that you can provide on margins as we look in earnings, I guess, as we look beyond this fiscal year?
I know just with some of the puts and takes around the cash balance and interest expense, as well as you're making some good progress on gross and operating margin. So maybe just qualitatively, how are you thinking about operational improvements as well as some of the below-the-line considerations?
Yeah. Thanks for that, Rohan. I'm joined by James and Olga, our CFO and head of investor relations. Maybe I'll let James answer the margin question.
Yeah, sure. So we're real pleased with our operating margin expansion over the past several years. You saw the statistics that Chris just put up there, getting almost 800 basis points of margin expansion over the past four years, which was mostly driven by gross margin expansion. You saw the three growth engines that Chris put up there. And basically, we had portfolio evolution here to really focus on those three main platforms.
Once we did that, our gross margins accelerated pretty dramatically. That drove the operating margin improvement over this past horizon that we've just been through. Now, in the future, I think what we could look forward to is now that we've been through what I would call an era of gross margin expansion, I think the focus now changes to operating leverage. The gross margin will continue to expand, although it'll be, I think, smaller in size. The real future is looking at how our revenues grow quicker than expenses. What we think we've done here is built out a cost base and a foundation that's the right amount of investment for future growth. If that's the case, then our operating expenses should not grow nearly as quickly as our revenue.
So as that plays out in the future, whether it's fiscal 2027 or beyond, you should see some continued margin expansion. It may not be in these chunk-sized increments that we've seen previously. You think more in the 50-100 basis point margin improvement. But there's still a ways to go in this business. And we're looking forward to continuing to generate that improvement into next year and beyond. Yeah. Just to put an exclamation point on it, Rohan, as you well know, through the first half of this current fiscal year, we are north of 26% on an operating income margin. And that expansion, that improvement is great. Keep in mind, we did that while transitioning more than $150 million of revenue from that customer transition and $53 million of additional divestitures.
So we've trimmed the top line necessarily by over $150 million, more than 10% of our revenue. And we've been able to drive the margin expansion and meaningful double-digit growth in earnings per share in that same period. Got it. No, thanks. That was very helpful, color. I do want to move on to Vivasure. I think it's top of mind, obviously, given your recent announcement and congratulations on the deal. Maybe just to start, can you just help us frame this opportunity in the context of your IVT franchise strategically, but also kind of what's the incremental revenue opportunity look like for you from a competitive standpoint? Why do you feel as though this product is differentiated? And what is your strategy, I guess, for launch in fiscal 2027, I believe, is what you kind of mentioned.
Yes. Our MedSurg growth strategy is to bring differentiated, meaningful innovation in enabling technology. We're not in a heart valve business. We're in the access or closure to heart valve opportunities with something like Vivasure. When we look at that, we think this is a really good example of where we can expand our leadership in closure, in this case, in the large bore segment. We think this is roughly a $300 million market, growing certainly in the mid- to high-single digits with TAVR and EVAR. What we have here is a fully absorbable, sutureless, implant-free design with no need to pre-close. As we go out and look at the market and the unmet need, we think this checks many, if not all, of those boxes.
And so the trial data that was submitted to FDA back in the fall had zero major complications through 30-day follow-up and immediate median time to hemostasis. That should severely advance the opportunity set. We think it's kind of a classic tuck-in opportunity that will fit very neatly at the intersection of vascular closure and structural heart. And we were able to do this through what we internally describe as outsourced R&D. We exercise the option because, to Vivasure's credit, they had met all of their major milestones. We're at a point now where we believe we'll get the release from FDA in FY27 at a point in time where we expect our sales force to be ready and committed to driving that growth.
I guess, how are you positioning the sales force for the upcoming, I guess you have some time, but for the launch in fiscal 2027, just given the priorities across IVT today? Obviously, you have kind of a diverse business with an array of products. And so just want to get a sense for how you're prioritizing all the products now that you've kind of made the decision to acquire Vivasure.
Yeah. Thanks for that. Look, it's no secret. We've struggled through the first half of this fiscal year with our interventional technologies performance. If I could take a step back and address that because it's important context to answer your question directly. I think three things happened to us that we now understand a lot more fully. One is that as amazing and powerful as the PFA adoption cycle has been, it has been a disruptive influence.
I've seen a lot that somehow we're on the wrong side of that technological advancement. That's not true. There will be a change in access sites. I'm sure we'll talk about that perhaps here today. But the reality is the disruption is PFA taking all the oxygen out of the room such that other technologies were put on the back burner, including our vascular closure opportunity set. So the power of the adoption and the speed of which is such that we expect that to begin to normalize next year. And as it does, we think that kind of settles the landscape for us to get back on our front foot and compete.
I think the second thing that's been brought to the surface is while we had great speed with adoption through the first 70%-75% of the top 600 accounts, the remainder are all affiliated, mostly with IDNs, GPOs, etc. And the absence within Haemonetics of a fit-for-task corporate account capability really came back to hurt us, particularly in this environment where PFA was so disruptive and value access committees were busy focusing on the great new technology. We just didn't have presence or relevance with them. And then the third thing is just very straightforward. We woke up to very aggressive competitors. And it's a team that was purpose-built for medical education and adoption. They found themselves in hand-to-hand combat here that perhaps not fully prepared for. We are addressing all three of those. That is our first priority. We have no higher priority as a corporation.
We've talked about half a dozen levers we are pulling to address it. I'm happy to go through any and all of them. We talked about green shoots last quarter. I want to be clear about that. The green shoots are operational. The quality of the team we've put forth, the revamped and focused effort. To your question, we've bifurcated our efforts such that it's 80% focused on closure, over 200 feet on the street, driving forward with our closure portfolio. They will pick up responsibility when it comes for the Vivasure product. We have the other 20%, which is roughly 45 people focused on structural heart and driving our presence there. We think Vivasure helps make us more relevant in that space, but the bifurcation is still relatively new, taking hold. It's reflected in comp plans, etc.
We'll use compensation to make sure we have the appropriate focus and mind share. As I said, operationally, we like what we're observing. From a results perspective, it's going to be entirely an FY27 event, right? It's just these changing your corporate accounts program is great. There's a cycle, in some cases, a multi-year cycle for contracting. We're in that cycle, but it will take time. As I said, we don't have any concern about the long-term opportunity set, the underlying growth. The beauty of a category like this with the benefits that PFA has brought to it is we've taken what was a high single, low double-digit grower to something that's closer to the mid-teens. As the dust settles, the growth rate will regress to the mean. It's a very attractive mean for us. So stay tuned. We'll have more to say when we guide for FY27.
But I think this team and the work we've already done prepares us well for PerQseal Elite when it comes.
Got it. No, that's really helpful. And maybe if we have time at the end, we can circle back to Hospital and IVT. But I do want to spend some time on plasma. This has been quite strong for you over the course of fiscal 2026. You're taking a fair amount of share from competitors. You managed to get some price last year, and that's continuing to some extent as well this year. And then you also have collections starting to normalize potentially. So maybe if you could just talk a little bit about what you're seeing in plasma, what you saw over the first half of fiscal 2026, and how that's trending as of December, January into the second half.
Can you talk about kind of the relative growth contribution between share gains, pricing, and collections as we look farther out into fiscal 2027? I know there's a bit of a wide variance in consensus plasma forecast for fiscal 2027 and beyond. So maybe it would be helpful if you could help frame that in the context of these factors.
Yeah. Thanks, Rohan. Look, our plasma franchise, if I think back over the last decade, has never, never been stronger. Based on the midpoint of our current guidance, it will be larger. It is faster growing. It is more profitable, and it is more diverse than it has been at any point in time in history. In fact, no individual customer is more than 10% of our total revenue. And the top three customers are now less than 25%, which we think is a testament to the diversification.
We are well positioned for continued growth. This year has been really the first time I've observed what we describe internally as the trifecta, which is share gains based on superior technology. It's a price premium for that technology that our customers are glad to pay because of the benefits it drives within their operations, and as you highlight, we're now seeing a normalization and a return to growth. In the second quarter of this year, the U.S. market grew high single digits. The international market continues to grow double digits, so we're firing on all three dimensions right now, and that's really powerful. You can't always expect that to be the case as we go forward, so when we get ready to guide for FY27, we'll drill down into each of those three dimensions and talk about what we see going forward.
It's premature to comment on it now simply because this is the time of year where we roll up our sleeves and sit down and have candid discussions with customers about how many new centers, what level of incentives, what's realistic in terms of additional share capture, etc. And so we'll put flesh around that in the next 90 days. But I don't want to miss the forest for the trees here. Plasma has never been better, and we expect to continue that trajectory.
Got it. And just to kind of talk about the competitive advantage in plasma a little bit more, you talked a bit about the DMS and the 80% share that you have with customers for DMS specifically in the U.S. So maybe if you could just discuss what's the source of your moat in plasma?
How are you investing in kind of ensuring that integration is as smooth as possible and kind of customers and retention? Customers are sticking with your platform over the long term and retention looks good. Just what is the source of that innovation and how are you thinking about maintaining that?
Yeah, I'd highlight three things. I think the company's performance long term, multi-decade, but certainly through the pandemic and importantly, the recovery from the pandemic where we grew 40% and 20% in those two years. The fact that we were there for all of our customers established the company as the supply partner the industry knows and trusts. And it really, because we completed the upgrade cycle to NexSys, helped these customers get a firsthand experience with what is, and this is my second point, superior technology. We talk about yield. We talk about speed.
We talk about safety and we talk about the aggregate donor experience. We have a very strong body of evidence to suggest that we're unrivaled on those dimensions. I think that's what you see with our share gains that we've picked up here, particularly in the last two years. I'm highlighting our major plasma customers, but also some of our major blood center customers as well. Then I think the third piece that I would highlight is the NexLynk DMS. It's the only standalone 510(k) approved plasma software. We have 80% share of the market at this point. When it's bidirectionally connected with the device itself, the platform is just truly exceptional on those key dimensions.
And I think as the industry becomes more and more sophisticated about donor recruitment, donor retention, AI applications for how to think through what the optimal offering is, we're talking increasingly about cost per gram, beyond cost per liter, but cost per gram, and working jointly with our customers on a portfolio of innovation initiatives that will take that leadership to another level over the next decade.
Got it. And with the minute or so left, I do want to touch on capital allocation. I think the cash outflow for Vivasure was roughly $60 million. I believe you've also started to kind of pursue more share buybacks. Obviously, there's reinvestment opportunity as well and potentially future M&A.
So maybe if you could just talk about your priorities for capital allocation from here on out, just in the context of both what you've done over the past year as well as your priorities moving forward.
Sure. I'll let James take a first cut at that.
Yeah, absolutely. So the number one priority for us always has been, and the first call on capital for us is organic, right? And you heard Chris allude to some of these things, right? Whether it was innovation and plasma, it's improving and sustaining those three growth engines that we talked about. So that's always number one. I would say M&A has been number two here historically. And you saw that with Vivasure this past quarter. Apart from that, though, I think M&A will be paused while we continue to work on the improvements in IVT that Chris just referenced.
Number three is share buyback and return of capital to shareholders. That's something we've been very active with, $225 million in the past year. And we'll continue to be opportunistic about that, even at these levels where we are today. However, I think the other key point that we have to address is that there's a $300 million maturity in our convertible debt, which was 0%, that's coming due here at the end of March. So we're going to be smart and disciplined about paying down our debt. And that represents another capital deployment opportunity that we'll focus on. And then we spoke a bit earlier about earnings trajectory for next year. That will, while we'll probably not be able to pay all of it down with our existing cash balance, that will leave likely some tail of that on our revolver.
So that might bump up some interest expense going through next year. So we need to be cognizant about that. But that's the big picture. That's the way we'll continue to pursue capital deployment here.
Great. Well, thank you. It seems like we're out of time, but appreciate everyone for joining. And thanks to the team for taking the time as well. Thanks, Rohan.