TransMedics Reports First Quarter 2026 Financial Results
Rhea-AI Summary
TransMedics (Nasdaq: TMDX) reported first quarter 2026 results: revenue $173.9M (up 21% YoY) and net income $7.3M ($0.20 diluted). The company reiterated 2026 revenue guidance of $727M–$757M (20%–25% growth) and held $461.7M in cash as of March 31, 2026.
Operating income and margins declined versus prior year amid higher operating and R&D investments; TransMedics also announced strategic logistics moves, including a PAD Aviation investment and 22 owned aircraft.
AI-generated analysis. Not financial advice.
Positive
- Revenue +21% year-over-year to $173.9M
- Reiterated 2026 revenue guidance of $727M–$757M (20%–25% growth)
- Cash balance of $461.7M as of March 31, 2026
- Owned 22 aircraft to support logistics network expansion
Negative
- Operating income down 52% to $13.3M
- Operating margin contracted 1,147 basis points to 7.6%
- Net income per share declined 71% to $0.20 diluted
- Operating expenses rose to $87.9M from $60.8M (increase driven by R&D and investments)
News Market Reaction – TMDX
On the day this news was published, TMDX declined 23.19%, reflecting a significant negative market reaction. Argus tracked a trough of -23.2% from its starting point during tracking. Our momentum scanner triggered 53 alerts that day, indicating high trading interest and price volatility. This price movement removed approximately $990M from the company's valuation, bringing the market cap to $3.28B at that time. Trading volume was exceptionally heavy at 6.9x the daily average, suggesting significant selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
TMDX moved on earnings while key medical-device peers were mixed: ITGR up 0.54%, BRKR up 0.33%, but GKOS down 2.74%, INSP down 3.33%, LIVN down 2.40%. Momentum data show only 2 peers in scan with split directions, supporting a stock-specific move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 27 | Tax benefit detail | Positive | +7.9% | Explained $103.3M tax valuation allowance release and Q4 2025 tax impact. |
| Feb 24 | Q4/FY 2025 earnings | Positive | -4.3% | Reported strong Q4 and FY 2025 growth and issued 2026 revenue guidance. |
| Oct 29 | Q3 2025 earnings | Positive | +1.1% | Delivered Q3 2025 growth, solid margins, cash build, and raised guidance. |
| Jul 30 | Q2 2025 earnings | Positive | +10.5% | Reported strong Q2 2025 revenue, net income and increased 2025 guidance. |
| May 08 | Q1 2025 earnings | Positive | +19.6% | Announced Q1 2025 growth, high gross margin, and raised full‑year guidance. |
Earnings and related financial updates have usually led to positive price reactions for TMDX, though one recent quarterly report saw a negative move despite strong growth metrics.
Over the past year, TransMedics has reported multiple quarters of strong revenue growth and profitability, highlighted by Q2 and Q3 2025 results and a detailed Q4 2025 tax valuation allowance update. Earnings releases on May 8, 2025 and Feb 27, 2026 triggered double‑digit and high‑single‑digit gains, while the Feb 24, 2026 full‑year 2025 report saw a modest decline. Today’s Q1 2026 earnings fit into this pattern of scaling revenue, expanding logistics assets, and reinforcing longer‑term growth guidance.
Historical Comparison
In the last 5 earnings‑tagged releases, TMDX moved an average of 6.97%. Today’s -2.93% reaction is smaller in magnitude and contrasts with the generally positive skew to past earnings moves.
Earnings updates show consistent revenue expansion, increased cash balances, logistics fleet growth, and ongoing investment in OCS clinical programs and global infrastructure.
Market Pulse Summary
The stock dropped -23.2% in the session following this news. A negative reaction despite topline growth fits a pattern where investors have sometimes focused on earnings quality and margins rather than revenue alone. Q1 2026 showed 21% revenue growth but lower gross margin and significantly higher operating expenses, pressuring EPS. Historical earnings events averaged moves of 6.97%, so a sharp downside response could reflect concern about profitability trends even as the company reiterates its 2026 revenue outlook.
Key Terms
Organ Care System ("OCS") medical
Controlled Hypothermic Organ Preservation System ("CHOPS") medical
non-GAAP financial
AI-generated analysis. Not financial advice.
Recent Highlights
- Total revenue of
$173.9 million 21% increase compared to the first quarter of 2025 - Net income of
$7.3 million $0.20 - Adjusted net income of
$10.9 million $0.30 - Reiterates full year 2026 revenue guidance to be in the range of
$727 million $757 million - Owned 22 aircraft as of March 31, 2026
- Hosted annual symposium at the International Society of Heart and Lung Transplantation (ISHLT) 46th Annual Meeting & Scientific Session in
Toronto ; unveiled new Controlled Hypothermic Organ Preservation System ("CHOPS") aimed at facilitating enrollment in control arms of OCS ENHANCE Heart Part B and OCS DENOVO Lung clinical trials - Entered into definitive agreement to invest in PAD Aviation, a premier
Germany -based private aviation operator, with intent to create the first dedicated European transplant logistic network
"We are pleased with our first quarter results and see 2026 as another critical period for TransMedics as we deliver on several critical growth catalysts for our business," said Waleed Hassanein, MD, President and Chief Executive Officer. "We are laser focused on executing our multi-pronged growth strategy by accelerating ENHANCE heart and DENOVO lung programs in the
A summary of first quarter financial results is as follows (dollars in thousands except per share):
Three Months Ended March 31, | ||||||||||||
2026 | 2025 | % Change | ||||||||||
Revenue | $ | 173,933 | $ | 143,537 | 21 | % | ||||||
Income from operations | $ | 13,297 | $ | 27,443 | -52 | % | ||||||
Operating margin % | 7.6 | % | 19.1 | % | -1147bps | |||||||
Adjusted income from operations(1) | $ | 18,109 | $ | 29,801 | -39 | % | ||||||
Adjusted operating margin %(1) | 10.4 | % | 20.7 | % | -1030bps | |||||||
Diluted net income per share | $ | 0.20 | $ | 0.70 | -71 | % | ||||||
Adjusted diluted net income per share(1) | $ | 0.30 | $ | 0.74 | -59 | % | ||||||
(1) | Adjusted income from operations, adjusted operating margin and adjusted diluted net |
First Quarter 2026 Financial Results
Total revenue for the first quarter of 2026 was
Gross margin for the first quarter of 2026 was
Operating expenses for the first quarter of 2026 were
Income from operations in the first quarter of 2026 was
Net income in the first quarter of 2026 was
Cash was
2026 Financial Outlook
TransMedics is reiterating its full year 2026 revenue guidance to be in the range of
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 Tuesday, May 5, 2026. Investors interested in listening to the conference call may do so by dialing (800) 715-9871 for domestic callers or (646) 307-1963 for international callers and providing access code 9254082. A live and archived webcast of the event and the company's slide presentation with information on first quarter 2026 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
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 dependence on the success of the OCS; our ability to expand access to the OCS through our NOP; our ability to improve the OCS platform, including by developing the next generation of the OCS products or expanding into new indications and the development, and potential commercialization of our OCS Kidney device; the timing or results of clinical trials for the OCS, including pre- and post-approval studies, or other product candidates, including CHOPS; 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 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 on the 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
Use of Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in
We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe the presentation of these measures is useful to both management and investors as they provide meaningful supplemental information with respect to our core operational performance and allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making.
To calculate adjusted income from operations, adjusted operating margin, adjusted net income and adjusted diluted net income per common share, we exclude certain charges (credits) from GAAP income from operations and GAAP net income, such as transaction-related costs, incremental amortization of intangible assets, headquarters relocation costs and legal matters. Amounts are presented after-tax using the company's statutory tax rate unless the amount is a significant unusual or infrequently occurring item in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 740-270-30, "General Methodology and Use of Estimated Annual Effective Tax Rate."
Investor Contact:
Brian Johnston
332-895-3222
Investors@transmedics.com
TransMedics Group, Inc. | ||||||||
Three Months Ended March 31, | ||||||||
2026 | 2025 | |||||||
Revenue: | ||||||||
Net product revenue | $ | 107,972 | $ | 88,234 | ||||
Service revenue | 65,961 | 55,303 | ||||||
Total revenue | 173,933 | 143,537 | ||||||
Cost of revenue: | ||||||||
Cost of net product revenue | 24,308 | 16,312 | ||||||
Cost of service revenue | 48,464 | 38,997 | ||||||
Total cost of revenue | 72,772 | 55,309 | ||||||
Gross profit | 101,161 | 88,228 | ||||||
Gross margin | 58 | % | 61 | % | ||||
Operating expenses: | ||||||||
Research, development and clinical trials | 24,879 | 17,160 | ||||||
Selling, general and administrative | 62,985 | 43,625 | ||||||
Total operating expenses | 87,864 | 60,785 | ||||||
Income from operations | 13,297 | 27,443 | ||||||
Other income (expense): | ||||||||
Interest expense | (7,170) | (3,461) | ||||||
Interest income and other income (expense), net | 2,358 | 2,694 | ||||||
Total other expense, net | (4,812) | (767) | ||||||
Income before income taxes | 8,485 | 26,676 | ||||||
Provision for income taxes | (1,170) | (994) | ||||||
Net income | $ | 7,315 | $ | 25,682 | ||||
Net income per share: | ||||||||
Basic | $ | 0.21 | $ | 0.76 | ||||
Diluted | $ | 0.20 | $ | 0.70 | ||||
Weighted average common shares outstanding: | ||||||||
Basic | 34,384,207 | 33,721,603 | ||||||
Diluted | 36,194,023 | 39,914,487 | ||||||
TransMedics Group, Inc. | ||||||||
March 31, | December 31, | |||||||
2026 | 2025 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 461,739 | $ | 488,366 | ||||
Accounts receivable | 90,727 | 84,282 | ||||||
Inventory | 49,890 | 48,881 | ||||||
Prepaid expenses and other current assets | 16,924 | 16,254 | ||||||
Total current assets | 619,280 | 637,783 | ||||||
Property, plant and equipment, net | 361,571 | 327,656 | ||||||
Finance lease right-of-use assets, net | 334,545 | — | ||||||
Operating lease right-of-use assets, net | 4,858 | 5,155 | ||||||
Deferred tax assets | 82,476 | 83,543 | ||||||
Restricted cash | 18,438 | 500 | ||||||
Goodwill | 11,549 | 11,549 | ||||||
Acquired intangible assets, net | — | 1,948 | ||||||
Other non-current assets | 2,103 | 239 | ||||||
Total assets | $ | 1,434,820 | $ | 1,068,373 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 11,151 | $ | 10,350 | ||||
Accrued expenses and other current liabilities | 59,316 | 62,740 | ||||||
Current portion of long-term debt | 15,000 | 10,000 | ||||||
Deferred revenue | 2,945 | 2,905 | ||||||
Operating lease liabilities | 3,508 | 3,310 | ||||||
Total current liabilities | 91,920 | 89,305 | ||||||
Convertible senior notes, net | 453,530 | 452,804 | ||||||
Long-term debt, net | 44,665 | 49,587 | ||||||
Finance lease liability | 343,829 | — | ||||||
Operating lease liabilities, net of current portion | 2,883 | 3,577 | ||||||
Other long-term liabilities | 3,986 | — | ||||||
Total liabilities | 940,813 | 595,273 | ||||||
Total stockholders' equity | 494,007 | 473,100 | ||||||
Total liabilities and stockholders' equity | $ | 1,434,820 | $ | 1,068,373 | ||||
TransMedics Group, Inc. NON-GAAP INCOME FROM OPERATIONS, NET INCOME AND DILUTED NET INCOME PER SHARE (dollars in thousands, except per share) (unaudited) | ||||||||||||||||
Three Months Ended March 31, 2026 | ||||||||||||||||
Income from | Operating | Net Income | Diluted Net | |||||||||||||
Reported | $ | 13,297 | 7.6 | % | $ | 7,315 | $ | 0.20 | ||||||||
Non-GAAP adjustments: | ||||||||||||||||
Incremental amortization of acquired | 1,898 | 1.1 | % | 1,418 | 0.04 | |||||||||||
Transaction-related costs(2) | 2,707 | 1.6 | % | 2,023 | 0.06 | |||||||||||
Headquarters relocation costs(3) | 207 | 0.1 | % | 155 | 0.00 | |||||||||||
Adjusted | $ | 18,109 | 10.4 | % | $ | 10,911 | $ | 0.30 | ||||||||
Three Months Ended March 31, 2025 | ||||||||||||||||
Income from | Operating | Net Income | Diluted Net | |||||||||||||
Reported | $ | 27,443 | 19.1 | % | $ | 25,682 | $ | 0.70 | ||||||||
Non-GAAP adjustments: | ||||||||||||||||
Legal matters(4) | 2,358 | 1.6 | % | 1,759 | 0.04 | |||||||||||
Adjusted | $ | 29,801 | 20.7 | % | $ | 27,441 | $ | 0.74 | ||||||||
(1) | Incremental amortization of acquired intangible assets – We record intangible assets acquired in a business combination or asset acquisition at acquisition date fair values and amortize over their estimated useful lives. These adjustments reflect non-cash charges related to incremental amortization of acquired intangible assets, resulting from periodic reassessments of estimated economic lives. These amounts are excluded as they relate to discrete, non-routine activities rather than the Company's ongoing operations and therefore are not considered indicative of normal operating costs. | |
(2) | Transaction-related costs – These adjustments primarily reflect direct and incremental costs incurred in connection with strategic initiatives and corporate development activities, and may include due diligence, deal fees, integration and other fees and costs related to transactions. The Company excludes only costs that are directly attributable to individually identifiable transactions that have progressed beyond preliminary evaluation, including those for which formal internal approvals have been obtained or third-party advisors have been engaged. Exploratory and other ongoing corporate development and strategy-related operating expenses are not excluded. Excluded costs are associated with discrete transaction events and are not reflective of the Company's core operating performance, although similar costs may be incurred in future periods. | |
(3) | Headquarter relocation costs – These adjustments reflect primarily direct and incremental third-party professional fees, including valuation, accounting, and advisory services, incurred in connection with the Company's relocation of its headquarters to | |
(4) | Legal matters - These adjustments reflect legal fees and other directly attributable costs incurred in connection with responding to and addressing matters arising from the short-seller report issued in January 2025. Such costs may include external legal counsel, advisory services, and other incremental expenses necessary to evaluate and defend against the claims. The Company excludes only costs that are specifically associated with this discrete event and does not exclude ongoing legal expenses related to normal business operations. These costs are excluded as they are non-recurring in nature and not indicative of the Company's core operating performance, although similar costs could arise in future periods. |
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SOURCE TransMedics Group, Inc.