TransMedics Reports Fourth Quarter and Full Year 2025 Financial Results

Rhea-AI Summary

TransMedics (Nasdaq: TMDX) reported strong fourth-quarter and full-year 2025 results with Q4 revenue $160.8M (+32% YoY) and FY revenue $605.5M (+37% YoY). Net income was $105.4M in Q4 and $190.3M for FY, each boosted by a one-time tax benefit tied to a valuation allowance release. The company completed 5,139 U.S. OCS cases (+38% YoY), owns 22 aircraft, secured FDA trial approvals, announced HQ expansion, and provided 2026 revenue guidance of $727M–$757M (20%–25% growth).

Positive

• Total revenue +37% year-over-year (2025)
• Q4 revenue +32% year-over-year
• Completed 5,139 U.S. OCS cases (+38% YoY)
• Cash balance of $488.4M at year-end
• 2026 revenue guidance: $727M–$757M (20%–25% growth)

Negative

• Net income driven by one-time tax benefit from valuation allowance release
• Operating expenses +13% year-over-year (2025)
• Q4 gross margin declined to 58% from 59%

Key Figures

Q4 2025 revenue: $160.8 million Full-year 2025 revenue: $605.5 million Q4 2025 net income: $105.4 million +5 more

8 metrics

Q4 2025 revenue $160.8 million Fourth quarter 2025, up 32% vs Q4 2024

Full-year 2025 revenue $605.5 million 2025, 37% growth vs 2024 revenue of $441.5M

Q4 2025 net income $105.4 million Fourth quarter 2025, 66% of revenue, aided by tax benefit

Full-year 2025 net income $190.3 million 2025 vs $35.5M in full-year 2024

Tax benefit Q4 2025 $83.8 million Includes one-time $103.3M valuation allowance release

U.S. OCS cases 2025 5,139 cases Full year 2025, up 38% vs 3,735 cases in 2024

2025 gross margin 60% Full year 2025, up from 59% in 2024

2026 revenue guidance $727–757 million Full-year 2026 outlook, 20–25% growth vs 2025

Market Reality Check

Price: $137.78 Vol: Volume 618,761 is slightl...

normal vol

$137.78 Last Close

Volume Volume 618,761 is slightly below the 20-day average of 678,752, suggesting no outsized positioning ahead of the earnings release. normal

Technical Pre-news price of $134.65 trades above the 200-day MA at $124.89 and about 13.69% below the $156 52-week high, indicating a longer-term uptrend but not at peak levels.

Peers on Argus

TMDX was up 0.3% pre-release while peers showed mixed moves: BRKR up 4.32%, ITGR...

TMDX was up 0.3% pre-release while peers showed mixed moves: BRKR up 4.32%, ITGR and GKOS up 1.08% each, LIVN up 0.57%, and INSP down 1.79%. This pattern points to stock-specific drivers rather than a uniform medical device sector move.

Common Catalyst Peer headlines today relate to conferences and partnerships, while TMDX’s news is earnings-focused, reinforcing that this is a company-specific catalyst.

Previous Earnings Reports

5 past events · Latest: Oct 29 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Oct 29	Q3 2025 earnings	Positive	+3.5%	Reported Q3 2025 revenue of $143.8M and net income of $24.3M, raised guidance.
Jul 30	Q2 2025 earnings	Positive	+10.5%	Delivered Q2 2025 revenue of $157.4M, strong net income and higher full-year guidance.
May 08	Q1 2025 earnings	Positive	+19.6%	Posted Q1 2025 revenue of $143.5M and $25.7M net income with 61% gross margin.
Feb 27	FY/Q4 2024 earnings	Positive	+5.8%	Announced Q4 2024 revenue of $121.6M and full-year $441.5M with solid profitability.
Oct 28	Q3 2024 earnings	Positive	-29.9%	Reported Q3 2024 revenue of $108.8M and $4.2M net income but shares fell sharply.

Pattern Detected

Earnings releases have generally produced positive stock reactions, with four out of the last five earnings events showing gains despite one large downside move.

Recent Company History

Over the last five earnings cycles, TransMedics has consistently reported strong revenue growth and improving profitability. Q3 2024 revenue reached $108.8 million, rising to $143.5 million in Q1 2025, $157.4 million in Q2 2025, and $143.8 million in Q3 2025. Full-year 2024 revenue was $441.5 million, and guidance was repeatedly raised into 2025 toward $595–605 million. Today’s fourth quarter and full-year 2025 results extend that trajectory with higher revenue, net income and margins tied to expanding OCS adoption and logistics scale.

Historical Comparison

+1.9% avg move · Across the last 5 earnings releases, average next-day move was about 1.91%. Those reports shared a p...

earnings

+1.9%

Average Historical Move earnings

Across the last 5 earnings releases, average next-day move was about 1.91%. Those reports shared a pattern of strong revenue growth, rising net income, and repeated guidance raises, which this full-year 2025 update continues.

Earnings updates from late 2024 through 2025 show revenue advancing from $108.8M in Q3 2024 to $157.4M in Q2 2025 and $143.8M in Q3 2025, while full-year revenue climbed to $441.5M in 2024 and guidance increased toward $595–605M for 2025, indicating a steady scaling of the OCS platform and logistics network.

Market Pulse Summary

This announcement highlights substantial operational and financial progress, with full-year 2025 rev...

Analysis

This announcement highlights substantial operational and financial progress, with full-year 2025 revenue of $605.5 million, net income of $190.3 million, and 5,139 U.S. OCS cases completed. The company also tightened its model with a 60% gross margin and issued 2026 revenue guidance of $727–757 million. Investors may focus on the durability of demand, the impact of the one-time tax benefit on earnings quality, and execution on NOP expansion and new organ programs.

Key Terms

fda approval

1 terms

fda approval regulatory

"Received FDA approval for the OCS ENHANCE Heart and DENOVO Lung trials"

FDA approval is the U.S. Food and Drug Administration’s formal authorization for a drug, vaccine, or medical device to be marketed and sold after reviewers determine it meets standards for safety and effectiveness. For investors it’s a pivotal milestone because it opens the door to legal, large-scale sales and can sharply boost revenue potential while reducing regulatory uncertainty—like receiving a safety certificate that lets a new bridge carry traffic and tolls.

AI-generated analysis. Not financial advice.

ANDOVER, Mass., Feb. 24, 2026 /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 and year ended December 31, 2025.

Recent Highlights 

• Total revenue of $160.8 million in the fourth quarter of 2025, a 32% increase compared to the fourth quarter of 2024
• Total revenue of $605.5 million in the full year 2025, a 37% increase compared to the full year 2024
• Generated net income of $105.4 million, or $2.62 per diluted share, in the fourth quarter of 2025, which includes a net income tax benefit of $83.8 million primarily due to the release of the valuation allowance related to deferred tax assets
• Generated net income of $190.3 million, or $4.87 per diluted share, in the full year 2025, which includes a net income tax benefit of $82.8 million
• Completed 5,139 U.S. OCS cases in the full year 2025, a 38% increase compared to 3,735 U.S. OCS cases in the full year 2024
• Owned 22 aircraft as of December 31, 2025
• Announced the signing of a long-term lease for new global headquarters at Assembly Innovation Park in Somerville, Mass. and the acquisition of adjacent land to create a fully integrated TransMedics campus
• Received FDA approval for the OCS ENHANCE Heart and DENOVO Lung trials
• Appointed Amanda Sorrento as SVP Global Human Resources, effective January 5, 2026
• Appointed Giovanni Cecere as Chief Commercial Officer, effective February 2, 2026
• Tamer Khayal, M.D. assumed the new role of SVP of International to drive NOP model across Europe and rest of the world
• Appointed Matthew Forsyth as Senior Vice President, General Counsel & Corporate Secretary, effective March 9, 2026

"We are very pleased with our fourth quarter and full year 2025 performance. These results reflect strong execution, continued adoption of our OCS^TM NOP^TM program, and disciplined investment to support sustained long-term growth," said Waleed Hassanein, M.D., President and Chief Executive Officer. "We have several strategic growth initiatives lined up for 2026 to catalyze growth short, mid- and long-term for TransMedics. We are laser focused on executing on these initiatives by accelerating heart and lung adoption in the US through our ongoing clinical programs, launching our NOP model in Europe, and preparing for the clinical launch of our OCS Kidney program. Achieving our goals would make 2026 another transformative year for TransMedics and catalyze our growth for the next several years, while advancing our mission to expand access and improve clinical outcomes for transplant patients globally."

Fourth Quarter 2025 Financial Results
Total revenue for the fourth quarter of 2025 was $160.8 million, a 32% increase compared to $121.6 million in the fourth 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") and related NOP service revenue fueled by the continued expansion and utilization of our aviation fleet.

Gross margin for the fourth quarter of 2025 was 58%, compared to 59% in the fourth quarter of 2024. The change from prior year is a result of higher clinical service expenses in support of NOP expansion and higher freight cost.

Operating expenses for the fourth quarter of 2025 were $72.1 million, compared to $63.4 million in the fourth quarter of 2024. The increase in operating expenses was driven primarily by increased research and development investment as well as investment throughout the organization to support the growth of the company. Fourth quarter operating expenses in 2025 included $9.1 million of stock compensation expense compared to $10.4 million of stock compensation expense in the fourth quarter of 2024.

Net income for the fourth quarter of 2025 was $105.4 million, or 66% of revenue, compared to $6.9 million in the fourth quarter of 2024. This includes a net income tax benefit of $83.8 million, primarily driven by a one-time benefit of $103.3 million from the release of the Company's valuation allowance related to deferred tax assets.

Full Year 2025 Financial Results
Total revenue for the full year of 2025 was $605.5 million, an 37% increase compared to $441.5 million for the full year of 2024. The increase was driven primarily by the increase in utilization of the OCS across all three organs through the NOP as well as additional revenue generated by TransMedics logistics services.

Gross margin for the full year of 2025 was 60%, compared to 59% in the full year of 2024. The change from prior year was a result of increased efficiencies in transplant logistics and benefits of scale.

Operating expenses for the full year of 2025 were $254.2 million, compared to $224.6 million in the full year 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. Full year operating expenses in 2025 included $35.5 million of stock compensation expense compared to $31.7 million of stock compensation expense in the full year of 2024.

Net income for the full year of 2025 was $190.3 million, or 31% of revenue, compared to $35.5 million in the full year of 2024. This includes a net income tax benefit of $82.8 million, primarily driven by a one-time benefit of $103.3 million from the release of the Company's valuation allowance related to deferred tax assets.

Cash was $488.4 million as of December 31, 2025 compared to $466.2 million as of September 30, 2025.

2026 Financial Outlook
TransMedics expects total revenue for the full year 2026 to be in the range of $727 million to $757 million, which represents 20% to 25% growth compared to the company's prior year revenue.

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, February 24, 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 8036478. A live and archived webcast of the event and the company's slide presentation with information on fourth quarter and full year 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. These forward-looking statements address various matters, including, among other things, future results and events, including financial guidance and projected estimates, growth initiatives for our business both in the U.S. and globally, our strategic initiatives to catalyze short, mid- and long-term growth in 2026 and over the next several years, our goals for 2026 and our focus on accelerating heart and lung transplant adoption in the U.S., launching our NOP model in Europe and preparing for the launch for OCS kidney program, and advancing our mission to expand access and improve clinical outcomes for transplant patients globally. 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 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, 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; 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 the United States, the European Union, and other select jurisdictions worldwide; our ability to adequately respond to the 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 or administrative actions affecting or reforming the U.S. healthcare system, Organ Procurement and Transplantation Network ("OPTN"), 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 transplant 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; 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 impact of a shutdown of the U.S. government; 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; our existing and any future indebtedness, including our ability to comply with affirmative and negative covenants under our credit agreements to which we will remain subject until maturity; the impact of any product recalls or improper use of our products; our international expansion plans and the costs related thereto; our estimates regarding revenue, 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
Gilmartin Group
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 December 31,								Year Ended December 31,
		2025				2024				2025				2024
Revenue:
Net product revenue		$	100,390			$	74,948			$	372,401			$	273,866
Service revenue			60,374				46,676				233,093				167,674
Total revenue			160,764				121,624				605,494				441,540
Cost of revenue:
Cost of net product revenue			23,402				16,545				77,822				58,345
Cost of service revenue			43,948				33,066				164,866				121,114
Total cost of revenue			67,350				49,611				242,688				179,459
Gross profit			93,414				72,013				362,806				262,081
Gross margin			58	%			59	%			60	%			59	%
Operating expenses:
Research, development and clinical trials			20,701				16,464				69,055				55,968
Selling, general and administrative			51,440				46,905				185,168				168,617
Total operating expenses			72,141				63,369				254,223				224,585
Income from operations			21,273				8,644				108,583				37,496
Other income (expense):
Interest expense			(3,354)				(3,571)				(13,782)				(14,409)
Interest income and other income (expense), net			3,714				1,916				12,721				12,693
Total other income (expense), net			360				(1,655)				(1,061)				(1,716)
Income before income taxes			21,633				6,989				107,522				35,780
(Provision) benefit for income taxes			83,750				(132)				82,769				(316)
Net income		$	105,383			$	6,857			$	190,291			$	35,464
Net income per share:
Basic		$	3.08			$	0.20			$	5.60			$	1.07
Diluted		$	2.62			$	0.19			$	4.87			$	1.01
Weighted average common shares outstanding:
Basic			34,220,360				33,592,408				33,993,468				33,229,953
Diluted			40,927,898				35,211,121				40,540,694				35,216,837

 

TransMedics Group, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited)
		December 31,
		2025				2024
Assets
Current assets:
Cash		$	488,366			$	336,650
Accounts receivable			84,282				97,722
Inventory			48,881				46,554
Prepaid expenses and other current assets			16,254				16,290
Total current assets			637,783				497,216
Property, plant and equipment, net			327,656				285,970
Operating lease right-of-use assets			5,155				6,481
Deferred tax assets			83,543				—
Restricted cash			500				500
Goodwill			11,549				11,549
Acquired intangible assets, net			1,948				2,152
Other non-current assets			239				208
Total assets		$	1,068,373			$	804,076
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	10,350			$	10,292
Accrued expenses and other current liabilities			62,740				45,152
Current portion of long-term debt			10,000				—
Deferred revenue			2,905				1,742
Operating lease liabilities			3,310				2,727
Total current liabilities			89,305				59,913
Convertible senior notes, net			452,804				449,939
Long-term debt, net			49,587				59,372
Operating lease liabilities, net of current portion			3,577				6,249
Total liabilities			595,273				575,473
Total stockholders' equity			473,100				228,603
Total liabilities and stockholders' equity		$	1,068,373			$	804,076

 

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SOURCE TransMedics Group, Inc.

FAQ

What were TransMedics (TMDX) fourth-quarter 2025 revenues and growth rate?

TransMedics reported $160.8 million in Q4 2025 revenue, a 32% increase year-over-year. According to the company, the rise was driven by higher OCS utilization across liver and heart and expanded NOP logistics and aviation services.

How did TransMedics (TMDX) achieve net income in 2025 despite rising expenses?

Net income of $190.3 million for full-year 2025 included a substantial tax benefit from a valuation allowance release. According to the company, the one-time benefit materially boosted reported net income while operating expenses increased to support growth.

What is TransMedics' 2026 revenue guidance and expected growth for TMDX?

TransMedics expects full-year 2026 revenue of $727M to $757M, implying 20%–25% growth versus 2025. According to the company, guidance reflects continued NOP expansion, higher OCS utilization, and logistics scale benefits.

How many OCS cases and aircraft did TransMedics report for 2025 (TMDX)?

TransMedics completed 5,139 U.S. OCS cases in 2025 and owned 22 aircraft as of December 31, 2025. According to the company, case growth was about 38% year-over-year, supporting expanded NOP services and logistics.

What operational risks or cost pressures did TransMedics (TMDX) report in Q4 2025?

The company cited higher clinical service and freight costs, with Q4 gross margin at 58% and operating expenses rising. According to the company, these costs reflect NOP expansion and increased R&D and organizational investments to support growth.