iRadimed(IRMD) - 2025 Q2 - Quarterly Results

Press Release Highlights This section provides an overview of IRADIMED CORPORATION's Q2 2025 financial performance, updated guidance, and dividend declaration Q2 2025 Performance Overview The company achieved record Q2 2025 revenue of $20.4 million and $0.45 GAAP diluted EPS, marking its sixteenth consecutive quarter of growth - Achieved sixteenth consecutive quarter of record revenue[3] Q2 2025 Performance Metrics | Metric | Q2 2025 (USD) | YoY Change | | :----------------- | :---------- | :--------- | | Revenue | $20.4 million | +14% | | GAAP Diluted EPS | $0.45 | +18% | | Gross Profit Margin | 78% | - | - Reported a record backlog for pump and monitor products as of June 30, 2025, underscoring unprecedented market demand[3] Financial Guidance Update The company raised its financial guidance for both the third quarter and the full year 2025, reflecting increased confidence in future revenue and earnings performance Q3 2025 Financial Guidance | Metric | Range (USD) | | :-------------------------- | :-------------------- | | Revenue | $20.5 million to $20.9 million | | GAAP Diluted EPS | $0.41 to $0.45 | | Non-GAAP Diluted EPS | $0.45 to $0.49 | Full Year 2025 Financial Guidance (Revised) | Metric | New Guidance (USD) | Previous Guidance (USD) | | :-------------------------- | :-------------------- | :-------------------- | | Revenue | $80.0 million to $82.5 million | $78.0 million to $82.0 million | | GAAP Diluted EPS | $1.60 to $1.70 | $1.55 to $1.65 | | Non-GAAP Diluted EPS | $1.76 to $1.86 | $1.71 to $1.81 | Quarterly Cash Dividend IRADIMED's board of directors declared a regular quarterly cash dividend of $0.17 per share of common stock, payable on August 28, 2025, to stockholders of record as of August 18, 2025 - Declared a regular quarterly cash dividend of $0.17 per share of common stock[1][5][6] - Dividend payable on August 28, 2025, to stockholders of record as of August 18, 2025[5][6] Detailed Financial Results This section provides a comprehensive breakdown of the company's financial performance for Q2 and H1 2025 Three Months Ended June 30, 2025 For Q2 2025, IRADIMED reported strong financial growth with revenue increasing 14% and net income rising 18% year-over-year. Both GAAP and non-GAAP diluted EPS also saw double-digit percentage increases Financial Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (USD) | Q2 2024 (USD) | Change (YoY) | | :-------------------------- | :------------ | :------------ | :------------- | | Revenue | $20.4 million | $17.9 million | +14% | | Net Income | $5.8 million | $4.9 million | +18% | | GAAP Diluted EPS | $0.45 | $0.38 | +18% | | Non-GAAP Net Income | $6.4 million | $5.4 million | +19% | | Non-GAAP Diluted EPS | $0.49 | $0.42 | +17% | Six Months Ended June 30, 2025 For the first half of 2025, the company continued its growth trajectory, reporting a 12% increase in revenue and a 16% rise in net income compared to the same period in 2024. Both GAAP and non-GAAP diluted EPS also showed strong growth Financial Performance (H1 2025 vs H1 2024) | Metric | H1 2025 (USD) | H1 2024 (USD) | Change (YoY) | | :-------------------------- | :------------ | :------------ | :------------- | | Revenue | $39.9 million | $35.5 million | +12% | | Net Income | $10.5 million | $9.0 million | +16% | | GAAP Diluted EPS | $0.82 | $0.71 | +16% | | Non-GAAP Net Income | $11.7 million | $10.0 million | +17% | | Non-GAAP Diluted EPS | $0.91 | $0.79 | +15% | Revenue Breakdown and Geographic Sales The company's revenue is primarily driven by MRI Compatible IV Infusion Pump Systems and Patient Vital Signs Monitoring Systems. Domestic sales constitute the majority of total revenue, showing an increasing trend year-over-year for both the three and six-month periods Revenue by Product Category | Product Category | Q2 2025 Revenue (USD) | Q2 2024 Revenue (USD) | H1 2025 Revenue (USD) | H1 2024 Revenue (USD) | | :------------------------------------ | :-------------- | :-------------- | :-------------- | :-------------- | | MRI Compatible IV Infusion Pump Systems | $8,187,511 | $6,881,199 | $14,186,723 | $12,073,879 | | MRI Compatible Patient Vital Signs Monitoring Systems | $5,944,269 | $5,450,224 | $12,488,948 | $11,911,882 | | Ferro Magnetic Detection Systems | $482,203 | $366,402 | $900,407 | $616,102 | | Disposables | $4,203,870 | $3,695,717 | $9,150,958 | $7,709,592 | - Domestic sales as a percentage of total revenue: - Q2 2025: 89% (vs 86% in Q2 2024) - H1 2025: 86% (vs 81% in H1 2024)[11][12] Gross Profit Margin The company maintained a consistent gross profit margin of 78% for the three months ended June 30, 2025, and 77% for the six months ended June 30, 2025, reflecting stable cost management relative to revenue - Gross profit margin: - Q2 2025: 78% (constant YoY) - H1 2025: 77% (constant YoY)[11][12] Cash Flow from Operations IRADIMED generated increased cash flow from operations for both the three and six-month periods ended June 30, 2025, indicating healthy operational cash generation - Cash flow from operations: - Q2 2025: $7.7 million, up 17% YoY - H1 2025: $12.0 million, up 14% YoY[13][14] Operational Developments The construction of the company's new facility in Orlando, Florida, was completed in early July 2025, with final payments expected in Q3 2025. This expansion is anticipated to support future growth - New facility construction in Orlando, Florida, completed in early July 2025[15] - Total construction cost of the new facility is approximately $12.6 million[15] - Remaining final payments of approximately $1.1 million on the new facility are expected in Q3 2025[15] Financial Guidance This section outlines the company's updated financial projections for the third quarter and full year 2025 Third Quarter 2025 Guidance For Q3 2025, the company expects revenue between $20.5 million and $20.9 million, with GAAP diluted EPS ranging from $0.41 to $0.45 and non-GAAP diluted EPS from $0.45 to $0.49 Q3 2025 Financial Guidance | Metric | Range (USD) | | :-------------------------- | :-------------------- | | Revenue | $20.5 million to $20.9 million | | GAAP Diluted EPS | $0.41 to $0.45 | | Non-GAAP Diluted EPS | $0.45 to $0.49 | - Expected stock-based compensation expense, net of tax, for Q3 2025: approximately $0.6 million[17] Full Year 2025 Guidance The company raised its full-year 2025 guidance, now expecting revenue between $80.0 million and $82.5 million, GAAP diluted EPS from $1.60 to $1.70, and non-GAAP diluted EPS from $1.76 to $1.86 Full Year 2025 Financial Guidance (Revised) | Metric | New Guidance (USD) | Previous Guidance (USD) | | :-------------------------- | :-------------------- | :-------------------- | | Revenue | $80.0 million to $82.5 million | $78.0 million to $82.0 million | | GAAP Diluted EPS | $1.60 to $1.70 | $1.55 to $1.65 | | Non-GAAP Diluted EPS | $1.76 to $1.86 | $1.71 to $1.81 | - Expected stock-based compensation expense, net of tax, for Full Year 2025: approximately $2.6 million[17] Use of Non-GAAP Financial Measures This section clarifies the purpose and calculation of non-GAAP financial measures used to supplement GAAP reporting Definition and Rationale Non-GAAP measures offer supplemental insights into operating results, excluding non-core items for clearer period-to-period comparisons - Non-GAAP financial measures (net income, EPS, free cash flow) are provided as supplemental perspectives on operating results, performance trends, and financial condition, not as substitutes for GAAP measures[18] - Non-GAAP net income excludes stock-based compensation expense (net of tax), operating expenses not indicative of core performance, and infrequent income tax items[19] - Free cash flow is calculated as net cash provided by operating activities, less net cash used in investing activities for internal software development and property/equipment purchases[20] Reconciliation Note A reconciliation of non-GAAP to GAAP measures is provided later in the release, stressing that non-GAAP figures should not be considered in isolation or as a substitute for GAAP performance or liquidity measures - A reconciliation of non-GAAP financial measures to the most comparable GAAP measures is available later in the release[23] - Non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP operating performance or liquidity measures[23] Conference Call Information IRADIMED scheduled a conference call for August 1, 2025, at 11:00 a.m. Eastern Time to discuss the financial results, with registration and webcast details provided - Conference call scheduled for August 1, 2025, at 11:00 a.m. Eastern Time[24] - Registration for the conference call is available at https://register-conf.media-server.com/register/BI52cf21ec526142b8b6142d07c87cfcf9[24](index=24&type=chunk) - A real-time webcast and recording of the call will be available on the Company's website at http://www.iradimed.com/en-us/investors/events/[25](index=25&type=chunk) About IRADIMED CORPORATION This section provides an overview of IRADIMED CORPORATION, highlighting its leadership in MRI-compatible medical devices and key product offerings Company Overview IRADIMED CORPORATION is a leader in developing, manufacturing, marketing, and distributing innovative MRI-compatible medical devices, accessories, disposables, and related services - IRADIMED CORPORATION is a leader in developing innovative Magnetic Resonance Imaging ("MRI") compatible medical devices[26] - The company designs, manufactures, markets, and distributes MRI-compatible medical devices, accessories, disposables, and related services[26] Key Products The company's core products include the patented MRidium® MRI compatible IV infusion pump system, which uses non-magnetic components for safe fluid delivery during MRI scans, and the 3880 MRI-compatible patient vital signs monitoring system, designed for accurate and uninterrupted patient monitoring in strong magnetic fields - The company is the only known provider of a non-magnetic intravenous ("IV") infusion pump system specifically designed for use during MRI procedures (MRidium® MRI compatible IV infusion pump system)[27] - The MRidium® pump system features a non-magnetic ultrasonic motor and uniquely designed non-ferrous parts to safely deliver anesthesia and other IV fluids during MRI procedures[27] - The 3880 MRI-compatible patient vital signs monitoring system is designed with non-magnetic components to safely and accurately monitor patient vital signs in magnetic fields up to 30,000 gauss[28] Forward-Looking Statements This section contains cautionary statements regarding forward-looking information, including financial guidance, future dividends, operational issues, product commercialization, and strategic plans. It highlights that these statements are based on current beliefs and involve risks and uncertainties that could cause actual results to differ materially - The release contains forward-looking statements regarding financial guidance, future quarterly cash dividends, operational issues, commercialization of next-generation products, and strategic plans[30] - Forward-looking statements are based on management's current beliefs and involve risks and uncertainties that could cause actual results to differ materially[30][31] - Readers are cautioned not to place undue reliance on these statements, and the Company undertakes no commitment to update or revise them[31][33] Condensed Financial Statements This section presents the company's condensed balance sheets, statements of operations, and non-GAAP reconciliations Condensed Balance Sheets The condensed balance sheets show an increase in total assets from $98.3 million at December 31, 2024, to $106.4 million at June 30, 2025, primarily driven by an increase in property and equipment, net. Total stockholders' equity also increased Condensed Balance Sheet Data | Metric | June 30, 2025 (USD) | December 31, 2024 (USD) | | :-------------------------- | :-------------- | :---------------- | | Cash and cash equivalents | $52,995,781 | $52,233,907 | | Total current assets | $77,372,612 | $74,706,209 | | Property and equipment, net | $22,938,080 | $16,810,797 | | Total assets | $106,447,489 | $98,325,775 | | Total current liabilities | $8,814,546 | $8,512,308 | | Total liabilities | $12,146,103 | $11,507,019 | | Total stockholders' equity | $94,301,386 | $86,818,756 | Condensed Statements of Operations The condensed statements of operations show significant year-over-year growth in revenue, gross profit, and net income for both the three and six months ended June 30, 2025, reflecting strong operational performance Condensed Statements of Operations (Three Months Ended June 30) | Metric | 2025 (USD) | 2024 (USD) | | :-------------------------- | :----------- | :----------- | | Revenue | $20,409,400 | $17,928,876 | | Gross profit | $15,954,992 | $14,009,593 | | Income from operations | $6,787,997 | $5,627,043 | | Net income | $5,773,961 | $4,901,224 | | Diluted EPS | $0.45 | $0.38 | Condensed Statements of Operations (Six Months Ended June 30) | Metric | 2025 (USD) | 2024 (USD) | | :-------------------------- | :----------- | :----------- | | Revenue | $39,920,037 | $35,526,995 | | Gross profit | $30,797,798 | $27,397,316 | | Income from operations | $12,219,453 | $10,375,390 | | Net income | $10,461,390 | $9,037,757 | | Diluted EPS | $0.82 | $0.71 | Reconciliation of Non-GAAP Financial Measures This section provides the detailed reconciliation tables for non-GAAP net income, diluted EPS, and free cash flow, adjusting GAAP figures primarily for stock-based compensation expense and capital expenditures Non-GAAP Net Income and Diluted EPS Reconciliation The reconciliation shows the adjustments made to GAAP net income to arrive at non-GAAP net income and diluted EPS, primarily by adding back stock-based compensation expense, net of tax benefit Non-GAAP Net Income and Diluted EPS Reconciliation (Three Months Ended June 30) | Metric | 2025 (USD) | 2024 (USD) | | :------------------------------------ | :----------- | :----------- | | Net income (GAAP) | $5,773,961 | $4,901,224 | | Stock-based compensation expense, net of tax benefit | $577,188 | $481,186 | | Non-GAAP net income | $6,351,149 | $5,382,410 | | Non-GAAP net income per share – diluted | $0.49 | $0.42 | Non-GAAP Net Income and Diluted EPS Reconciliation (Six Months Ended June 30) | Metric | 2025 (USD) | 2024 (USD) | | :------------------------------------ | :----------- | :----------- | | Net income (GAAP) | $10,461,390 | $9,037,757 | | Stock-based compensation expense, net of tax benefit | $1,229,778 | $977,812 | | Non-GAAP net income | $11,691,168 | $10,015,569 | | Non-GAAP net income per share – diluted | $0.91 | $0.79 | Non-GAAP Free Cash Flow Reconciliation The free cash flow reconciliation shows net cash provided by operating activities less capital expenditures, indicating the cash available for strategic opportunities. Free cash flow decreased year-over-year for both periods, primarily due to increased capital expenditures Non-GAAP Free Cash Flow Reconciliation (Three Months Ended June 30) | Metric | 2025 (USD) | 2024 (USD) | | :------------------------------------ | :----------- | :----------- | | Net cash provided by operating activities | $7,746,261 | $6,638,526 | | Less: Capital Expenditures | $2,823,738 | $1,269,770 | | Free cash flow | $4,922,523 | $5,368,756 | Non-GAAP Free Cash Flow Reconciliation (Six Months Ended June 30) | Metric | 2025 (USD) | 2024 (USD) | | :------------------------------------ | :----------- | :----------- | | Net cash provided by operating activities | $12,038,353 | $10,521,680 | | Less: Capital Expenditures | $6,741,038 | $1,748,573 | | Free cash flow | $5,297,315 | $8,773,107 |