TransMedics Reports First Quarter 2025 Financial Results

Rhea-AI Summary

TransMedics (NASDAQ: TMDX) reported strong Q1 2025 financial results with total revenue of $143.5 million, up 48% year-over-year. The company achieved a net income of $25.7 million ($0.70 per diluted share) and maintained a robust gross margin of 61%. Growth was primarily driven by increased utilization of their Organ Care System (OCS), particularly in Liver and Heart transplants through the National OCS Program. The company owned 21 aircraft and announced plans for a new design center and manufacturing facility in Italy. Based on strong performance, TransMedics raised its full year 2025 revenue guidance to $565-585 million, representing 30% growth at the midpoint. The company ended Q1 with a strong cash position of $310.1 million.

Positive

• Revenue grew 48% YoY to $143.5 million
• Net income reached $25.7 million (18% of revenue), up from $12.2 million in Q1 2024
• Strong gross margin of 61%
• Raised full year 2025 revenue guidance to $565-585 million
• Robust cash position of $310.1 million
• Fleet expansion to 21 owned aircraft
• Planned expansion with new design center and manufacturing facility in Italy

Negative

• Operating expenses increased 28% YoY to $60.8 million
• Slight decline in gross margin from 62% in Q1 2024 to 61% in Q1 2025

Insights

Financial Analyst

TransMedics delivers exceptional 48% revenue growth, raises guidance, and demonstrates strong profitability with 18% net margins.

TransMedics has delivered remarkable financial performance with $143.5 million in Q1 2025 revenue, representing a 48% year-over-year increase. This substantial growth has prompted management to raise their full-year 2025 revenue guidance to $565-585 million from the previous $530-552 million range, reflecting strong confidence in their business trajectory.

The company's profitability metrics are particularly impressive. Net income reached $25.7 million ($0.70 per diluted share), translating to an 18% net margin. The 61% gross margin shows slight sequential improvement from Q4 2024's 59%, though marginally lower than Q1 2024's 62% due to revenue mix shifts toward services. This balanced margin profile while growing at nearly 50% demonstrates exceptional operational execution.

TransMedics' strategic investments are supporting this growth trajectory. Operating expenses increased to $60.8 million from $47.5 million year-over-year, reflecting deliberate R&D investments and organizational scaling. Their vertical integration strategy includes an aircraft fleet of 21 planes, creating a significant competitive advantage in organ logistics where time is critical.

With a robust cash position of $310.1 million, TransMedics has ample resources to fund its expansion plans, including the announced design center and manufacturing facility in Italy. The company's clinical presence remains strong with 10 abstracts/presentations at a major transplantation conference, validating their technology's continued relevance in improving outcomes for transplant patients.

ANDOVER, Mass., May 8, 2025 /PRNewswire/ -- TransMedics Group, Inc. ("TransMedics") (Nasdaq: TMDX), a medical technology company that is transforming organ transplant therapy for patients with end-stage lung, heart, and liver failure, today reported financial results for the quarter ended March 31, 2025.

Recent Highlights

• Total revenue of $143.5 million in the first quarter of 2025, a 48% increase compared to the first quarter of 2024
• Generated net income of $25.7 million or $0.70 per fully diluted share in the first quarter of 2025
• Raising full year 2025 revenue guidance to $565 million to $585 million
• Owned 21 aircraft as of March 31, 2025
• Announced strategic plan to open design center of excellence and new disposables manufacturing facility in Mirandola, Italy
• Hosted annual symposium at the International Society of Heart and Lung Transplantation (ISHLT) 45th Annual Meeting & Scientific Session in Boston; highlighted latest design and potential sample size of upcoming next-gen clinical programs
• 10 abstracts and presentations at ISHLT featured OCS™ & NOP™ clinical value

"Overall, we are very pleased with our first quarter performance, which we believe underscores the unique attributes of our business and the ability to deliver strong top and bottom-line financial results," said Waleed Hassanein, MD, President and Chief Executive Officer. "We are confident in our ability to sustain this momentum through 2025 and beyond by remaining laser focused on operational execution and leveraging the unrivaled capabilities of OCS NOP to expand the utilization of available donor organs for transplantation. Ultimately, this will enable us to deliver what we believe to be the best possible clinical outcomes and most cost-efficient therapy for our transplant patients. We are grateful and humbled by the unwavering support of our clinical transplant partners and the resilience of our exceptional team."

First Quarter 2025 Financial Results 

Total revenue for the first quarter of 2025 was $143.5 million, a 48% increase compared to $96.9 million in the first quarter of 2024. The increase was due primarily to the increase in utilization of the Organ Care System ("OCS"), primarily in Liver and Heart through the National OCS Program ("NOP") as well as additional revenue generated by the addition of TransMedics logistics services.

Gross margin for the first quarter of 2025 was 61%, compared to 62% in the first quarter of 2024, and compared to 59% in the fourth quarter of 2024. The change from prior year is a result of a higher proportion of service revenue.

Operating expenses for the first quarter of 2025 were $60.8 million, compared to $47.5 million in the first quarter of 2024. The increase in operating expense was driven primarily by increased research and development investment as well as investment throughout the organization to support the growth of the company. First quarter operating expenses in 2025 included $8.7 million of stock compensation expense compared to $6.5 million of stock compensation expense in the first quarter of 2024.

Net income for the first quarter of 2025 was $25.7 million, 18% of revenue, compared to net income of $12.2 million in the first quarter of 2024.

Cash was $310.1 million as of March 31, 2025.

2025 Financial Outlook
TransMedics is raising its full year 2025 revenue guidance to be in the range of $565 million to $585 million, which represents 30% growth at the midpoint compared to the company's prior year revenue. TransMedics' full year 2025 revenue guidance as reported on February 27, 2025 was previously in the range of $530 million to $552 million.

Webcast and Conference Call Details
The TransMedics management team will host a conference call beginning at 4:30 p.m. ET / 1:30 p.m. PT on Thursday, May 8, 2025. Investors interested in listening to the conference call may do so by dialing (844) 676-6010 for domestic callers or (412) 634-6944 for international callers and ask to be joined into the TransMedics call. A live and archived webcast of the event and the company's slide presentation with information on first quarter 2025 financial results will be available on the "Investors" section of the TransMedics website at www.transmedics.com.

About TransMedics Group, Inc.
TransMedics is the world's leader in portable extracorporeal warm perfusion and assessment of donor organs for transplantation. Headquartered in Andover, Massachusetts, the company was founded to address the unmet need for more and better organs for transplantation and has developed technologies to preserve organ quality, assess organ viability prior to transplant, and potentially increase the utilization of donor organs for the treatment of end-stage heart, lung, and liver failure.

Forward-Looking Statements
This press release contains forward-looking statements with respect to, among other things, future results and events, including financial guidance and projected estimates, potential clinical outcomes and therapies, and statements about our operations, operational execution, financial position, strategic plans and other business plans. For this purpose, all statements other than statements of historical facts are forward-looking statements. The words "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "could," "target," "predict," "seek" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties. Our management cannot predict all risks, nor can we assess the impact of all factors or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in or implied by any forward-looking statements we may make. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated in or implied by the forward-looking statements. Some of the key factors that could cause actual results to differ include: the fluctuation of our financial results from quarter to quarter; our ability to attract, train, and retain key personnel; our existing and any future indebtedness, including our ability to comply with affirmative and negative covenants under our credit agreement to which we will remain subject until maturity; our ability to sustain profitability; our need to raise additional funding and our ability to obtain it on favorable terms, or at all; our ability to use net operating losses and research and development credit carryforwards; that we have identified a material weakness in our internal control over financial reporting, and that we may identify additional material weaknesses in the future; our dependence on the success of the Organ Care System ("OCS"); our ability to expand access to the OCS through our National OCS Program ("NOP"); our ability to improve the OCS platform, including by developing the next generation of the OCS products or expanding into new indications; our ability to scale our manufacturing and sterilization capabilities to meet increasing demand for our products; the rate and degree of market acceptance of the OCS; our ability to educate patients, surgeons, transplant centers and private and public payors of benefits offered by the OCS; our dependence on a limited number of customers for a significant portion of our revenue; our ability to maintain regulatory approvals or clearances for our OCS products in the United States, the European Union, and other select jurisdictions worldwide; our ability to adequately respond to Food and Drug Administration ("FDA"), or other competent authorities, follow-up inquiries in a timely manner; the impact of healthcare policy changes, including recently enacted or potential future legislation reforming the U.S. healthcare system or the FDA; the performance of our third-party suppliers and manufacturers; our use of third parties to transport donor organs and medical personnel for our NOP and our ability to maintain and grow our logistics capabilities to support our NOP to reduce dependence on third party transportation, including by means of attracting, training and retaining pilots, and the acquisition, maintenance or replacement of fixed-wing aircraft for our aviation transportation services or other acquisitions, joint ventures or strategic investments; our ability to maintain Federal Aviation Administration ("FAA") or other regulatory licenses or approvals for our aircraft transportation services; price increases of the components of our products and maintenance, parts and fuel for our aircraft; the timing or results of post-approval studies and any clinical trials for the OCS; our manufacturing, sales, marketing and clinical support capabilities and strategy; attacks against our information technology infrastructure; the economic, political and other risks associated with our foreign operations; our ability to protect, defend, maintain and enforce our intellectual property rights relating to the OCS and avoid allegations that our products or services infringe, misappropriate or otherwise violate the intellectual property rights of third parties; the pricing of the OCS, as well as the reimbursement coverage for the OCS in the United States and internationally; regulatory developments in the United States, European Union and other jurisdictions; the extent and success of competing products or procedures that are or may become available; our ability to service our 1.50% convertible senior notes, due 2028; the impact of any product recalls or improper use of our products; our estimates regarding revenues, expenses and needs for additional financing; and other factors that may be described in our filings with the Securities and Exchange Commission (the "SEC"). Additional information will be made available in our annual and quarterly reports and other filings that we make with the SEC. The forward-looking statements in this press release speak only as of the date of this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and we are not able to predict all of them. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable law.

Investor Contact:
Brian Johnston
Laine Morgan
332-895-3222
Investors@transmedics.com

TransMedics Group, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
		Three Months Ended March 31,
		2025		2024
Revenue:
Net product revenue		$                   88,234		$                   61,325
Service revenue		55,303		35,525
Total revenue		143,537		96,850
Cost of revenue:
Cost of net product revenue		16,312		14,084
Cost of service revenue		38,997		22,804
Total cost of revenue		55,309		36,888
Gross profit		88,228		59,962
Gross margin		61 %		62 %
Operating expenses:
Research, development and clinical trials		17,160		11,380
Selling, general and administrative		43,625		36,161
Total operating expenses		60,785		47,541
Income from operations		27,443		12,421
Other income (expense):
Interest expense		(3,461)		(3,598)
Interest income and other income (expense), net		2,694		3,570
Total other expense, net		(767)		(28)
Income before income taxes		26,676		12,393
Provision for income taxes		(994)		(196)
Net income		$                   25,682		$                   12,197
Net income per share:
Basic		$                       0.76		$                       0.37
Diluted		$                       0.70		$                       0.35
Weighted average common shares outstanding:
Basic		33,721,603		32,760,190
Diluted		39,914,487		34,678,895

 

TransMedics Group, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
		March 31, 2025		December 31, 2024
Assets
Current assets:
Cash		$                 310,143		$                 336,650
Accounts receivable		142,026		97,722
Inventory		43,380		46,554
Prepaid expenses and other current assets		10,369		16,290
Total current assets		505,918		497,216
Property, plant and equipment, net		311,244		285,970
Operating lease right-of-use assets		6,007		6,481
Restricted cash		500		500
Goodwill		11,549		11,549
Acquired intangible assets, net		2,101		2,152
Other non-current assets		211		208
Total assets		$                 837,530		$                 804,076
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$                   10,595		$                   10,292
Accrued expenses and other current liabilities		40,139		45,152
Deferred revenue		2,078		1,742
Operating lease liabilities		2,791		2,727
Total current liabilities		55,603		59,913
Convertible senior notes, net		450,650		449,939
Long-term debt, net		59,448		59,372
Operating lease liabilities, net of current portion		5,521		6,249
Total liabilities		571,222		575,473
Total stockholders' equity		266,308		228,603
Total liabilities and stockholders' equity		$                 837,530		$                 804,076

 

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SOURCE TransMedics Group, Inc.

FAQ

What was TransMedics (TMDX) revenue in Q1 2025?

TransMedics reported Q1 2025 revenue of $143.5 million, representing a 48% increase compared to $96.9 million in Q1 2024.

What is TransMedics' (TMDX) revenue guidance for 2025?

TransMedics raised its full year 2025 revenue guidance to $565-585 million, representing 30% growth at the midpoint compared to the previous year.

What was TransMedics' (TMDX) net income in Q1 2025?

TransMedics reported a net income of $25.7 million, or $0.70 per fully diluted share, representing 18% of revenue in Q1 2025.

How many aircraft does TransMedics (TMDX) own as of Q1 2025?

TransMedics owned 21 aircraft as of March 31, 2025.

What was TransMedics' (TMDX) gross margin in Q1 2025?

TransMedics reported a gross margin of 61% in Q1 2025, compared to 62% in Q1 2024 and 59% in Q4 2024.