Core Insights - TransMedics reported a revenue of $157.37 million for the quarter ended June 2025, marking a 37.7% increase year-over-year and exceeding the Zacks Consensus Estimate of $147.37 million by 6.79% [1] - The company's EPS for the quarter was $0.92, significantly higher than the $0.35 reported in the same quarter last year, resulting in an EPS surprise of 91.67% against the consensus estimate of $0.48 [1] Revenue Performance - Geographic revenues from the United States reached $152.19 million, surpassing the average estimate of $142.05 million by four analysts, reflecting a year-over-year increase of 40.3% [4] - Revenue from all other countries was $4.16 million, slightly below the estimated $4.47 million, representing an 11.8% decline compared to the previous year [4] Product Revenue Breakdown - OCS Lung net revenue was reported at $4.15 million, which was below the average estimate of $4.5 million, indicating an 11.5% decrease year-over-year [4] - OCS Liver net revenue reached $115.86 million, exceeding the estimated $108.56 million, with a notable year-over-year increase of 50.4% [4] - OCS Heart net revenue was $32.17 million, slightly below the estimated $32.38 million, showing a modest year-over-year increase of 2.3% [4] Stock Performance - Over the past month, TransMedics' shares have returned -19.4%, contrasting with the Zacks S&P 500 composite's increase of 3.4% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - Wall Street analysts forecast TransMedics (TMDX) will report quarterly earnings of $0.48 per share, reflecting a year-over-year increase of 37.1% [1] - Anticipated revenues for the quarter are projected to be $147.37 million, representing a 28.9% increase compared to the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the past 30 days, indicating analysts' reassessment of their projections [1] Revenue Estimates - Analysts predict 'Net revenue by OCS product- OCS Lung net revenue' will reach $4.50 million, indicating a year-over-year decrease of 4.2% [4] - The estimate for 'Net revenue by OCS product- OCS Liver net revenue' is $108.56 million, showing a significant increase of 40.9% from the prior-year quarter [4] - 'Net revenue by OCS product- OCS Heart net revenue' is expected to be $32.38 million, reflecting a 3% increase from the previous year [4] Geographic Revenue Insights - 'Geographic Revenues- United States' is expected to be $142.05 million, indicating a year-over-year increase of 31% [5] - 'Geographic Revenues- All other countries' is projected to be $4.47 million, showing a decrease of 5.2% from the prior-year quarter [5] Stock Performance - TransMedics shares have decreased by 17.8% over the past month, contrasting with the Zacks S&P 500 composite's increase of 4.9% [5] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to closely follow overall market performance in the near term [5]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $143.5 million, representing approximately 48% year-over-year growth and 18% sequential growth from Q4 2024 [7] - TransMedics' transplant services revenue for Q1 was approximately $55.3 million, up from $35.5 million in Q1 2024, reflecting approximately 56% year-over-year growth and 18.5% sequential growth [8] - Operating profit for Q1 was $27.4 million, representing approximately 19% of total revenue, up from $8.6 million or 7% of total revenue in Q4 2024 [8][22] - Net income for the quarter was $25.7 million, representing a 111% year-on-year increase and 275% sequentially [23] - Earnings per share were $0.76, and diluted earnings per share were $0.70 for Q1 2025 [25] Business Line Data and Key Metrics Changes - U.S. transplant revenue was $139 million, up 51% year-over-year and 19% sequentially, with liver contributing $109 million, heart $26 million, and lung $4 million [19] - Product revenue for Q1 reached $88 million, up 44% year-over-year and 18% sequentially, driven by increased organ utilization in liver and continued OCS adoption [20] - Transplant logistics services revenue for Q1 was $26.1 million, representing approximately 80% year-over-year and 20% sequential growth [9] Market Data and Key Metrics Changes - The company achieved a new high watermark for overall case volume in Q1 2025, indicating strong market demand [7] - The average daily aircraft availability was approximately 15.4, up from 14 in Q4 2024, covering 78% of NOP emissions requiring air transport [9] Company Strategy and Development Direction - The company plans to launch two new heart and lung clinical programs later in 2025 to catalyze growth in 2026 and beyond [10] - A strategic plan to open a disposable design center of excellence and a new manufacturing facility in Mirandola, Italy, aims to leverage local expertise and ensure business continuity [14][95] - The company is focused on vertically integrating critical technology blocks to minimize supply chain risks [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining momentum throughout 2025, despite potential quarterly variability and seasonality [17][26] - The company raised its full-year 2025 revenue guidance to between $565 million and $585 million, reflecting approximately 28% to 32% growth over 2024 [17][25] - Management believes organ transplantation is largely insulated from economic cycles due to its lifesaving nature and cost-effectiveness [16] Other Important Information - Total operating expenses for Q1 were approximately $61 million, up 28% year-over-year, primarily driven by a 51% increase in R&D [22] - The company ended the quarter with $310 million in cash, down $26.5 million from the end of 2024 [24] Q&A Session Summary Question: What are the main drivers of growth in liver? - Management highlighted increased utilization of deceased donors across both DVD and DCD, gaining share and momentum in the liver platform [34][36] Question: What is the outlook for April and beyond? - Management indicated confidence in maintaining momentum but acknowledged potential variability between quarters [37][38] Question: How will clinical trials impact product and service margins? - Management expressed confidence in incurring product revenue during trials but remained cautious about service revenue on the control arm [42] Question: What is the impact of competitors entering the liver market? - Management emphasized the superior results of the OCS Liver platform and the need for competitors to prove their value [44][46] Question: What is the reason for the increase in receivables? - Management attributed the increase to the timing of billing and expected recovery in Q2 [53][54] Question: How does the company view pricing in a competitive environment? - Management stated that the focus should be on the value delivered rather than pricing, emphasizing the economic efficiency of their technology [62][65] Question: What are the expectations for operating margin expansion? - Management indicated that the majority of operating margin increases would be driven by gains in operating leverage, with planned investments for later in the year [69] Question: What is the rationale for opening a facility in Mirandola, Italy? - Management noted that Mirandola is a hub for perfusion technologies and offers significant engineering talent necessary for their products [95][96]

Core Insights - TransMedics (TMDX) is expected to report quarterly earnings of $0.29 per share, reflecting a decline of 17.1% year over year, while revenues are forecasted to reach $123.56 million, an increase of 27.6% year over year [1] Group 1: Earnings Estimates - The consensus EPS estimate for the quarter has remained unchanged over the past 30 days, indicating analysts' reassessment of their projections [1][2] - Changes in earnings estimates are crucial for predicting investor reactions to the stock, with empirical studies showing a strong relationship between earnings estimate revisions and short-term price performance [2] Group 2: Revenue Projections - Analysts project 'Net revenue by OCS product- OCS Lung net revenue' to be $5.19 million, indicating a decline of 8.4% year over year [4] - The consensus estimate for 'Net revenue by OCS product- OCS Liver net revenue' is $87.87 million, reflecting an increase of 31.3% from the previous year [4] - Estimated 'Net revenue by OCS product- OCS Heart net revenue' is $30.01 million, suggesting a year-over-year increase of 28.6% [4] Group 3: Geographic Revenue Estimates - Analysts expect 'Geographic Revenues- United States' to be $119.11 million, indicating a growth of 29.7% from the prior year [5] - The estimate for 'Geographic Revenues- All other countries' is projected at $4.09 million, reflecting a slight decline of 0.1% from the previous year [5] Group 4: Stock Performance - Shares of TransMedics have increased by 33% over the past month, outperforming the Zacks S&P 500 composite, which saw a 0.4% increase [6] - TransMedics holds a Zacks Rank 3 (Hold), suggesting it is expected to mirror overall market performance in the near future [6]