TransMedics Reports Third Quarter 2026 Financial Results
Revenue growth accompanied lower net income, while full-year guidance now includes approximately $14 million from PAD Aviation.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
TransMedics (TMDX) reported third-quarter 2026 revenue of $203.0 million, up 41% year over year, and raised its full-year revenue outlook. Organic revenue growth was 35%. Product revenue rose 29% to $113.4 million, while service revenue increased 60% to $89.6 million. Operating income increased 21% to $28.1 million, but net income fell to $17.1 million from $24.3 million. Diluted earnings per share declined 30% to $0.46.
Full-year revenue guidance increased to $750-$760 million excluding PAD Aviation, versus $737-$757 million previously. Including approximately $14 million from PAD Aviation, guidance is $764-$774 million. In October, FDA approvals allowed ENHANCE Heart Part B and DENOVO Lung trials to proceed, and a continued access protocol permitted 90 additional heart-trial patients. TransMedics also won its first European transplant logistics tender in Italy. Cash totaled $493.0 million at September 30.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.Full-year guidance excluding PAD Aviation increased to $750-$760 million from $737-$757 million, implying 24% to 26% growth.
- Moderate pointThird-quarter revenue rose 41% to $203.0 million year over year, including organic growth of 35%.
- Moderate pointThird-quarter operating income increased 21% to $28.1 million year over year.
- Moderate pointItaly awarded TransMedics its first European transplant logistics tender in October, commencing European transplant operations using PAD Aviation.
- Minor pointProduct revenue increased 29% to $113.4 million in the third quarter of 2026.
8 minor points
- Minor pointService revenue rose 60% to $89.6 million, including organic service revenue growth of 43%.
- Minor point. Forward-looking: it has not happened yet and may not happen.Full-year guidance including PAD Aviation is $764-$774 million, implying 26% to 28% growth.
- Minor pointNine-month revenue increased 27% to $566.886 million compared with the same period in 2025.
- Minor pointENHANCE Heart Part A completed enrollment in September; October approval permitted an additional 90 patients under continued access.
- Minor pointENHANCE Heart Part B and DENOVO Lung received FDA investigational trial approvals in October, including CHOPS control arms.
- Minor point. Forward-looking: it has not happened yet and may not happen.TransMedics plans to launch its OCS National OCS Program in Italy, the Netherlands and Belgium.
- Minor point. Forward-looking: it has not happened yet and may not happen.OCS Kidney remains on track, the company says, for first-in-human clinical experience in the second half of 2027.
- Minor pointCash increased to $492.962 million at September 30, 2026, from $488.366 million at December 31, 2025.
Negative
- Moderate pointThird-quarter net income declined to $17.1 million from $24.3 million; diluted earnings fell 30% to $0.46.
- Moderate pointThird-quarter operating margin fell to 13.9% from 16.2%, a decline of 230 basis points.
- Moderate pointThird-quarter operating expenses increased to $90.516 million from $61.275 million a year earlier.
- Moderate pointNine-month operating income declined 25% to $65.174 million; operating margin fell to 11.5% from 19.6%.
- Moderate pointFinance lease liability reached $351.533 million at September 30, 2026, versus none at December 31, 2025.
5 minor points
- Minor pointThird-quarter gross margin was 58% versus 59% in the prior-year period.
- Minor pointThird-quarter interest expense increased to $7.271 million from $3.491 million a year earlier.
- Minor pointThird-quarter income taxes shifted to a $7.028 million provision from a $1.288 million benefit a year earlier.
- Minor pointNine-month net income fell to $39.070 million from $84.908 million; diluted earnings declined 53% to $1.08.
- Minor pointCurrent long-term debt increased to $54.818 million from $10 million at December 31, 2025.
News Explained
For the nine months ended
Details
Market move: TMDX +11.65% vs previous close. 3Q26 earnings report
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Key Figures
- Q3 revenue
- $203.0 million, up 41%
- Third quarter 2026 versus third quarter 2025
- Diluted EPS
- $0.46 vs. $0.66, down 30%
- Third quarter 2026 versus third quarter 2025
- Operating margin
- 13.9% vs. 16.2% (-230 bps)
- Third quarter 2026 versus third quarter 2025
- FY 2026 revenue guidance, excluding PAD Aviation
- $750-$760 million (prior: $737-$757 million)
- Updated full-year guidance
- FY 2026 revenue guidance, including PAD Aviation
- $764-$774 million
- Updated full-year guidance
- Cash
- $493.0 million
- As of September 30, 2026
- IDE approvals
- 2 trial approvals
- ENHANCE Heart Part B and DENOVO Lung
- Additional enrollment
- 90 patients
- FDA-approved continued access protocol for ENHANCE Heart
Previous Earnings Reports
-
Revenue grew and the company raised the low end of its 2026 outlook.
-
Q3 revenue rose year over year and the company raised full-year 2025 guidance.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
investigational device exemption regulatory
non-gaap financial
convertible senior notes financial
enterprise resource planning technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Strong Revenue Generation Drives Increase in Full-Year 2026 Guidance; Recent Progress Positions Company for Continued Growth with Several Near- and Mid-Term Catalysts
Third Quarter 2026 Financial Highlights
- Total revenue of
$203.0 million 41% , including organic revenue growth* of35% - Product revenue of
$113.4 million 29% , and service revenue of$89.6 million 60% , including organic service revenue growth* of43% - Net income of
$17.1 million $0.46 - Adjusted net income* of
$18.9 million $0.51 - Raises full-year 2026 revenue guidance to between
$764 -$774 million $14 million
Recent Business Highlights
- Completed enrollment in Part A of the Next-Generation Organ Care System (OCS) ENHANCE Heart trial (September) and received
U.S . Food and Drug Administration (FDA) approval of a continued access protocol, allowing enrollment of an additional 90 patients (October) - Received Investigational Device Exemption (IDE) approvals from
U.S . FDA for ENHANCE Heart Part B and DENOVO Lung trials, including use of TransMedics Controlled Hypothermic Organ Preservation System (CHOPS) as a control arm for both trials (October) - Awarded first European transplant logistics tender in
Italy , commencing the company's European transplant operations using PAD Aviation (October) - Appointed Fernando Araujo, former CFO of GE HealthCare's Advanced Imaging Solutions segment, as Chief Financial Officer (September)
"The third quarter of 2026 was the strongest in TransMedics' history, with record revenue and record case volume. Importantly, we delivered these results despite typical third quarter seasonality and before any contribution from ENHANCE Part B or DENOVO." said Waleed Hassanein, MD, President and Chief Executive Officer. "We enter 2027 with strong momentum and a robust set of growth catalysts. ENHANCE Heart Part B and DENOVO Lung target large, untapped heart and lung segments, with two shots on goal in each through OCS and CHOPS. In
Recent IDE Approvals
In October, TransMedics received full
EU Expansion
TransMedics continues to expand its operations in the EU, including through winning its first logistics tender in
Third Quarter 2026 Financial Results
A summary of third quarter financial results is as follows (dollars in thousands except per share):
|
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||
|
|
2026 |
2025 |
% Change |
2026 |
2025 |
% Change |
|
Revenue |
|
|
41 % |
|
|
27 % |
|
Income from operations |
|
|
21 % |
|
|
-25 % |
|
Operating margin % |
13.9 % |
16.2 % |
-230bps |
11.5 % |
19.6 % |
-810bps |
|
Adjusted income from operations(1) |
|
|
22 % |
|
|
-19 % |
|
Adjusted operating margin %(1) |
14.2 % |
16.4 % |
-220bps |
12.8 % |
20.2 % |
-740bps |
|
Diluted net income per share |
|
|
-30 % |
|
|
-53 % |
|
Adjusted diluted net income per share(1) |
|
|
-24 % |
|
|
-46 % |
|
(1) Adjusted income from operations, adjusted operating margin and adjusted diluted net income per share represent non-GAAP financial measures. For a reconciliation of GAAP to non-GAAP items, please see the tables attached to this press release. |
Total revenue for the third quarter of 2026 was
Gross margin was
Operating expenses for the third quarter of 2026 were
Income from operations in the third quarter of 2026 was
Net income in the third quarter of 2026 was
Cash was
2026 Financial Outlook
TransMedics raises its full-year 2026 revenue guidance. The table below summarizes the updates:
|
|
Prior Guidance |
Updated Guidance |
Implied Annual Growth (compared to FY 2025 |
|
FY 2026 Revenue (excluding PAD Aviation) |
|
|
|
|
FY 2026 Revenue (including PAD Aviation) |
--- |
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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, November 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 6054544. A live and archived webcast of the event and the company's slide presentation with information on third 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 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. TransMedics routinely posts information that may be important to investors on the landing page of the Company's website and in the "Investors" section of the website at https://investors.transmedics.com/. Investors and potential investors are encouraged to consult the TransMedics website regularly for important information about TransMedics.
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", "look to", "plan" 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 the United States, the European Union and other select jurisdictions worldwide; our ability to adequately respond to the Food and Drug Administration (the "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, 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, 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, or IT, 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
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 the United States ("GAAP"), we disclose certain non-GAAP financial measures, including organic revenue, organic revenue growth, organic service revenue, organic service revenue growth, revenue guidance excluding PAD Aviation, adjusted income from operations, adjusted operating margin, adjusted net income, and adjusted diluted net income per common share. These non-GAAP financial measures are not calculated in accordance with GAAP, are not a substitute for, and should be considered supplemental to, GAAP financial measures. Our definitions of these non-GAAP measures may differ from similarly titled measures used by other companies, which may limit their usefulness for comparative purposes.
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.
We report organic revenue, organic revenue growth, organic service revenue, organic service revenue growth and revenue guidance excluding PAD Aviation to provide management and investors with additional understanding and visibility into the underlying revenue trends of the Company's established, ongoing operations, as well as provide insights into overall demand for its products and services. To calculate these measures, we exclude from revenue and service revenue the effect of the PAD Aviation transaction as there is no prior period comparable revenue.
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, ERP implementation costs, headquarters relocation costs, legal matters and discrete tax items. 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."
* Non-GAAP financial measure.
Investor Contact:
Brian Johnston
332-895-3222
Investors@transmedics.com
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TransMedics Group, Inc. Consolidated Statements of Operations (in thousands, except share and per share data) • (unaudited) |
||||
|
|
||||
|
|
Three Months Ended |
Nine Months Ended |
||
|
|
2026 |
2025 |
2026 |
2025 |
|
Revenue: |
|
|
|
|
|
Net product revenue |
|
|
|
|
|
Service revenue |
89,586 |
56,146 |
234,337 |
172,719 |
|
Total revenue |
203,005 |
143,823 |
566,886 |
444,730 |
|
Cost of revenue: |
|
|
|
|
|
Cost of net product revenue |
23,570 |
18,687 |
73,444 |
54,420 |
|
Cost of service revenue |
60,778 |
40,561 |
160,426 |
120,918 |
|
Total cost of revenue |
84,348 |
59,248 |
233,870 |
175,338 |
|
Gross profit |
118,657 |
84,575 |
333,016 |
269,392 |
|
Gross margin |
58 % |
59 % |
59 % |
61 % |
|
Operating expenses: |
|
|
|
|
|
Research, development and clinical trials |
29,182 |
15,260 |
85,693 |
48,354 |
|
Selling, general and administrative |
61,334 |
46,015 |
182,149 |
133,728 |
|
Total operating expenses |
90,516 |
61,275 |
267,842 |
182,082 |
|
Income from operations |
28,141 |
23,300 |
65,174 |
87,310 |
|
Other income (expense): |
|
|
|
|
|
Interest expense |
(7,271) |
(3,491) |
(21,666) |
(10,428) |
|
Interest income and other income (expense), net |
3,231 |
3,222 |
8,483 |
9,007 |
|
Total other expense, net |
(4,040) |
(269) |
(13,183) |
(1,421) |
|
Income before income taxes |
24,101 |
23,031 |
51,991 |
85,889 |
|
(Provision) benefit for income taxes |
(7,028) |
1,288 |
(12,921) |
(981) |
|
Net income |
|
|
|
|
|
Net income per share: |
|
|
|
|
|
Basic |
|
|
|
|
|
Diluted |
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
Basic |
34,691,046 |
34,112,452 |
34,552,868 |
33,917,006 |
|
Diluted |
40,833,175 |
40,748,023 |
36,077,206 |
40,410,208 |
|
TransMedics Group, Inc. Condensed Consolidated Balance Sheets (in thousands) • (unaudited) |
||
|
|
||
|
|
September 30, |
December 31, |
|
|
2026 |
2025 |
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash |
|
|
|
Accounts receivable |
114,935 |
84,282 |
|
Inventory |
58,373 |
48,881 |
|
Prepaid expenses and other current assets |
26,186 |
16,254 |
|
Total current assets |
692,456 |
637,783 |
|
Property, plant and equipment, net |
376,490 |
327,656 |
|
Finance lease right-of-use assets, net |
330,400 |
— |
|
Operating lease right-of-use assets, net |
4,342 |
5,155 |
|
Deferred tax assets |
72,787 |
83,543 |
|
Restricted cash |
18,438 |
500 |
|
Goodwill |
18,015 |
11,549 |
|
Acquired intangible assets, net |
2,815 |
1,948 |
|
Other non-current assets |
2,194 |
239 |
|
Total assets |
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
|
|
|
Accrued expenses and other current liabilities |
82,757 |
62,740 |
|
Current portion of long-term debt, net |
54,818 |
10,000 |
|
Deferred revenue |
1,497 |
2,905 |
|
Operating lease liabilities |
3,642 |
3,310 |
|
Total current liabilities |
152,857 |
89,305 |
|
Convertible senior notes, net |
454,994 |
452,804 |
|
Long-term debt, net |
— |
49,587 |
|
Finance lease liability |
351,533 |
— |
|
Operating lease liabilities, net of current portion |
1,915 |
3,577 |
|
Other long-term liabilities |
5,926 |
— |
|
Total liabilities |
967,225 |
595,273 |
|
Total stockholders' equity |
550,712 |
473,100 |
|
Total liabilities and stockholders' equity |
|
|
|
TransMedics Group, Inc. Non-GAAP Income From Operations, Net Income and Diluted Net Income per Share Reconciliations (dollars in thousands, except per share) • (unaudited) |
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|
|
||||
|
|
Income from |
Operating |
Net Income |
Diluted Net |
|
Three Months Ended September 30, 2026 |
||||
|
Reported |
|
13.9 % |
|
|
|
Non-GAAP adjustments: |
|
|
|
|
|
Transaction-related costs(1) |
667 |
0.3 % |
667 |
0.02 |
|
ERP implementation costs(2) |
64 |
0.0 % |
48 |
— |
|
Discrete tax items(3) |
— |
0.0 % |
1,125 |
0.03 |
|
Adjusted |
|
14.2 % |
|
|
|
Nine Months Ended September 30, 2026 |
||||
|
Reported |
|
11.5 % |
|
|
|
Non-GAAP adjustments: |
|
|
|
|
|
Transaction-related costs(1) |
5,119 |
0.9 % |
3,994 |
0.10 |
|
Headquarters relocation costs(4) |
272 |
0.0 % |
204 |
0.01 |
|
ERP implementation costs(2) |
309 |
0.1 % |
231 |
0.01 |
|
Incremental amortization of acquired |
1,898 |
0.3 % |
1,418 |
0.03 |
|
Discrete tax items(3) |
— |
0.0 % |
1,125 |
0.03 |
|
Adjusted |
|
12.8 % |
|
|
|
* As a result of our non-GAAP adjustments, our convertible senior notes have a dilutive effect for the nine months ended |
||||
|
Three Months Ended September 30, 2025 |
||||
|
Reported |
|
16.2 % |
|
|
|
Non-GAAP adjustments: |
|
|
|
|
|
Headquarters relocation costs(4) |
115 |
0.1 % |
86 |
— |
|
ERP implementation costs(2) |
156 |
0.1 % |
117 |
0.01 |
|
Adjusted |
|
16.4 % |
|
|
|
Nine Months Ended September 30, 2025 |
||||
|
Reported |
|
19.6 % |
|
|
|
Non-GAAP adjustments: |
|
|
|
|
|
Headquarters relocation costs(4) |
115 |
0.0 % |
86 |
— |
|
ERP implementation costs(2) |
156 |
0.0 % |
117 |
0.01 |
|
Legal matters(6) |
2,358 |
0.6 % |
1,759 |
0.04 |
|
Adjusted |
|
20.2 % |
|
|
|
(1) 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. |
|
|
|
(2) ERP implementation costs – These adjustments reflect direct and incremental costs incurred in connection with the design, configuration, testing, deployment, and initial implementation of a new enterprise resource planning ("ERP") system, or a significant upgrade or replacement of an existing ERP platform. Such costs may include third-party consulting, system integration, project management, data conversion, and other implementation-related professional fees. The Company excludes only costs that are directly attributable to the initial implementation or significant transformation of an ERP platform and that are non-recurring in nature. Ongoing software subscription, hosting, maintenance, support, personnel, and other recurring information technology operating expenses are not excluded. |
|
|
|
(3) Discrete tax items – These adjustments represent certain income tax charges or benefits that management does not consider indicative of ongoing operating performance. Such items may include the indirect tax consequences of non-GAAP adjustments affecting the utilization of tax credits, deductions or other tax benefits; tax effects recognized in the current period related to non-GAAP adjustments recorded in prior periods; and certain significant tax adjustments arising from changes in tax laws, valuation allowances, tax settlements or other discrete tax events, as applicable. These items are excluded from adjusted net income and adjusted earnings per share to facilitate comparability of operating performance between periods. |
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|
|
(4) Headquarters 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 |
|
|
|
(5) 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. |
|
|
|
(6) 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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|
(7) Reconciliation of revenue to organic revenue and of service revenue to organic service revenue (dollars in thousands) (unaudited). |
|
|
Total Revenue |
Revenue |
Service |
Service |
|
Three Months Ended September 30, 2026 |
||||
|
Reported |
|
41.1 % |
|
59.6 % |
|
Less: PAD Aviation charter services |
9,385 |
6.5 % |
9,385 |
16.8 % |
|
Organic |
|
34.6 % |
|
42.8 % |
|
Nine Months Ended September 30, 2026 |
||||
|
Reported |
|
27.5 % |
|
35.7 % |
|
Less: PAD Aviation charter services |
9,385 |
2.1 % |
9,385 |
5.5 % |
|
Organic |
|
25.4 % |
|
30.2 % |
|
(8) Full-Year 2026 Revenue Guidance: Revenue guidance of |
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SOURCE TransMedics Group, Inc.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were TransMedics TMDX third-quarter 2026 revenue and earnings?
TransMedics reported $203.0 million in revenue and $0.46 in diluted earnings per share for the quarter ended September 30, 2026. Revenue increased 41% year over year, while diluted earnings per share declined 30%. Net income was $17.1 million, compared with $24.3 million a year earlier.
What is TransMedics TMDX updated full-year 2026 revenue guidance?
TransMedics expects $764-$774 million in full-year 2026 revenue including approximately $14 million from PAD Aviation. Excluding PAD Aviation, guidance increased to $750-$760 million from $737-$757 million. The updated ranges imply annual growth of 26% to 28% including PAD Aviation and 24% to 26% excluding it.
What clinical and European expansion milestones does TransMedics plan next?
TransMedics plans to launch its OCS National OCS Program in Italy, the Netherlands and Belgium, and says OCS Kidney remains on track for first-in-human clinical experience in the second half of 2027. ENHANCE Heart Part B and DENOVO Lung target additional heart and lung segments using OCS and the Controlled Hypothermic Organ Preservation System, or CHOPS.
Why did TransMedics operating expenses increase in the third quarter of 2026?
Operating expenses increased because of planned development spending, additional headcount and infrastructure investment. Spending covered OCS Kidney, Next-Generation OCS and ENHANCE clinical programs, along with the U.S. headquarters and the addition of PAD Aviation. Third-quarter stock compensation expense was $12.1 million, compared with $8.7 million a year earlier.