TransMedics(TMDX) - 2025 Q2 - Quarterly Results

Introduction Company Overview TransMedics is a medical technology company transforming organ transplant therapy for patients with end-stage organ failure - TransMedics is a medical technology company focused on transforming organ transplant therapy for patients with end-stage lung, heart, and liver failure[1] Recent Highlights & CEO Commentary The company reported strong Q2 performance with 38% revenue growth, driven by strategic execution and platform value - CEO reported a strong quarter, marked by profitable year-over-year revenue growth of 38%[3] - Performance reflects successful execution of strategy, differentiated value of OCS and NOP platforms, and unique leadership position in the transplant market[3] - Company is focused on achieving and surpassing the target of 10,000 US NOP transplants in 2028, while ramping up investments for future growth[3] Second Quarter 2025 Financial Performance Key Financial Metrics The company reported significant Q2 2025 growth with a 38% revenue increase and more than doubled net income Q2 2025 Key Financial Highlights | Metric | Q2 2025 | Q2 2024 | YoY Change | | :----- | :------ | :------ | :--------- | | Total Revenue | $157.4 million | $114.3 million | +38% | | Gross Margin | 61% | 61% | Consistent | | Operating Expenses | $60.0 million | $56.8 million | +$3.2 million | | Net Income | $34.9 million | $12.2 million | +186% | | Diluted EPS | $0.92 | $0.35 | +163% | Revenue Analysis Q2 2025 revenue grew 38% to $157.4 million, driven by increased OCS and NOP service utilization Q2 2025 Revenue Breakdown | Revenue Type | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YoY Change | | :----------- | :--------------------- | :--------------------- | :--------- | | Net product revenue | $96,100 | $71,732 | +33.9% | | Service revenue | $61,270 | $42,573 | +44.0% | | Total revenue | $157,370 | $114,305 | +37.7% | - The increase in revenue was primarily due to increased utilization of the Organ Care System (OCS), particularly in Liver and Heart through the National OCS Program (NOP) and related NOP service revenue, fueled by the continued expansion and utilization of the aviation fleet[4] Profitability and Expenses Gross margin remained stable at 61%, while net income significantly improved to $34.9 million Q2 2025 Profitability and Expenses | Metric (in thousands) | Q2 2025 | Q2 2024 | YoY Change | | :-------------------- | :------ | :------ | :--------- | | Gross Profit | $96,589 | $69,261 | +39.4% | | Gross Margin | 61% | 61% | Consistent | | Operating Expenses | $60,022 | $56,753 | +5.8% | | R&D and Clinical Trials | $15,934 | $13,858 | +15.0% | | SG&A | $44,088 | $42,895 | +2.8% | | Income from Operations | $36,567 | $12,508 | +192.4% | | Net Income | $34,907 | $12,194 | +186.3% | - The increase in operating expenses was driven primarily by increased research and development investment as well as investment throughout the organization to support company growth[5][6] - Stock compensation expense in Q2 2025 was $9.0 million, up from $7.3 million in Q2 2024[6] Balance Sheet Highlights The company maintained a strong liquidity position with cash totaling $400.6 million as of June 30, 2025 Key Balance Sheet Items (as of June 30, 2025) | Metric (in thousands) | June 30, 2025 | Dec 31, 2024 | Change | | :----- | :------------ | :----------- | :----- | | Cash | $400,575 | $336,650 | +$63,925 | | Total Assets | $890,522 | $804,076 | +$86,446 | | Total Liabilities | $572,421 | $575,473 | -$3,052 | | Total Stockholders' Equity | $318,101 | $228,603 | +$89,498 | 2025 Financial Outlook 2025 Financial Outlook The company raised its full-year 2025 revenue guidance to $585-$605 million, representing 35% growth at the midpoint Full Year 2025 Revenue Guidance | Guidance Type | Range | Growth at Midpoint (YoY) | | :------------ | :---- | :----------------------- | | New FY2025 Revenue Guidance | $585 million - $605 million | 35% | | Previous FY2025 Revenue Guidance | $565 million - $585 million | N/A | Operational Achievements and Strategic Initiatives Operational Achievements and Strategic Initiatives Key Q2 achievements include FDA approval to initiate the Next-Gen OCS™ Lung trial and the launch of the NOP ACCESS™ digital ecosystem - Received conditional Investigations Device Exemption (IDE) approval from the U.S. Food and Drug Administration to initiate the Next-Gen OCS™ Lung trial[5] - Launched first-in-class OCS NOP digital ecosystem, NOP ACCESS™, across major NOP™ transplant programs across the U.S[5] About TransMedics Group, Inc. About TransMedics Group, Inc. TransMedics is the global leader in portable warm perfusion and assessment technologies for donor organs - TransMedics is the world's leader in portable extracorporeal warm perfusion and assessment of donor organs for transplantation[9] - The company develops 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[9] Financial Statements (Unaudited) Consolidated Statements of Operations The statements detail financial performance for the three and six months ended June 30, 2025, showing significant growth Consolidated Statements of Operations (Three Months Ended June 30) | Metric (in thousands, except per share) | 2025 | 2024 | | :------------------------------------ | :--- | :--- | | Total revenue | $157,370 | $114,305 | | Gross profit | $96,589 | $69,261 | | Operating expenses | $60,022 | $56,753 | | Income from operations | $36,567 | $12,508 | | Net income | $34,907 | $12,194 | | Diluted Net income per share | $0.92 | $0.35 | Consolidated Statements of Operations (Six Months Ended June 30) | Metric (in thousands, except per share) | 2025 | 2024 | | :------------------------------------ | :--- | :--- | | Total revenue | $300,907 | $211,155 | | Gross profit | $184,817 | $129,223 | | Operating expenses | $120,807 | $104,294 | | Income from operations | $64,010 | $24,929 | | Net income | $60,589 | $24,391 | | Diluted Net income per share | $1.62 | $0.70 | Condensed Consolidated Balance Sheets The balance sheets show an increase in total assets and stockholders' equity as of June 30, 2025 Condensed Consolidated Balance Sheets (as of June 30, 2025 vs. Dec 31, 2024) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Cash | $400,575 | $336,650 | | Total current assets | $558,129 | $497,216 | | Total assets | $890,522 | $804,076 | | Total current liabilities | $56,620 | $59,913 | | Total liabilities | $572,421 | $575,473 | | Total stockholders' equity | $318,101 | $228,603 | Additional Information Webcast and Conference Call Details A conference call to discuss Q2 2025 financial results will be held on Thursday, July 30, 2025 - A conference call will be hosted on Thursday, July 30, 2025, at 4:30 p.m. ET / 1:30 p.m. PT[8] - A live and archived webcast of the event and the company's slide presentation will be available on the 'Investors' section of the TransMedics website[8] Forward-Looking Statements This press release contains forward-looking statements regarding future results, strategy, and growth targets - Forward-looking statements address future results and events, including financial guidance, projected estimates, strategy, focus on achieving 10,000 US NOP transplants in 2028, and investments for growth[10] - These statements are subject to risks and uncertainties, and actual results could differ materially due to factors such as financial result fluctuations, ability to attract and retain key personnel, indebtedness, profitability, funding needs, internal control weaknesses, dependence on OCS, regulatory approvals, and market acceptance[10][11][12] - The company undertakes no obligation to update any forward-looking statement, except as required by applicable law[12] Investor Contact Contact information for investor relations is provided for any inquiries - Investor contact information: Brian Johnston, Laine Morgan, 332-895-3222, Investors@transmedics.com[13]