TMDX Stock Falls Despite Q3 Earnings Beat Estimates, Revenues Up Y/Y

Core Insights - TransMedics Group, Inc. (TMDX) reported earnings per share (EPS) of 66 cents for Q3 2025, representing a 450% increase year over year and exceeding the Zacks Consensus Estimate by 78.4% [1][6] - The company's revenues reached $143.8 million in Q3 2025, a 32.2% year-over-year increase, although it fell short of the Zacks Consensus Estimate by 0.8% [2][6] Revenue Breakdown - TMDX's net product revenues amounted to $87.7 million, up 33.1% year over year, driven by increased organ utilization in liver and heart transplants [4] - Service revenues totaled $56.1 million, reflecting a 30.9% year-over-year growth, primarily due to logistics services [4][7] Operational Performance - The company covered 78% of its National OCS Program (NOP) missions requiring air transport, an increase from approximately 61% in Q3 2024 [3] - Operating profit reached $23.3 million, marking a 493.9% increase from the prior year, with an operating margin expansion of 1260 basis points to 16.2% [9] Financial Position - At the end of Q3 2025, TMDX had cash reserves of $466.2 million, up from $400.6 million at the end of Q2 2025, while long-term debt decreased to $54.6 million from $59.5 million [10] - Cumulative net cash provided by operations was $158.3 million, significantly higher than $29.1 million at the end of Q3 2024 [10] Guidance and Future Outlook - TMDX has raised its full-year 2025 revenue guidance to a range of $595 million to $605 million, indicating a growth of 36% at the midpoint compared to 2024 [11] - The company is advancing multiple product programs, including next-gen trials for heart and lung OCS, with expectations for significant revenue generation starting in 2026 [13] Expansion Plans - TMDX plans to launch its inaugural international NOP program in Italy in the first half of 2026 and aims to build a European logistics network similar to its U.S. model [14] - The company is increasing its aviation capacity to 22 aircraft and is finalizing a new global headquarters and manufacturing campus to support future growth [14]