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iRadimed(IRMD) - 2025 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported revenue of $20,400,000 for Q2 2025, a 14% increase from $17,900,000 in Q2 2024 [13] - Gross profit margin remained strong at 78%, with net income increasing 18% to $5,800,000 or $0.45 per diluted share compared to $4,900,000 or $0.38 per diluted share in 2024 [15][16] - For the full year 2025, the company raised its revenue guidance to $80 to $82,500,000, reflecting 9% to 13% growth over 2024 [11] Business Line Data and Key Metrics Changes - MRI compatible IV infusion pump systems contributed $8,200,000, up 19% year over year, while patient vital signs monitoring systems contributed $5,900,000, up 9% [13] - Disposables revenue grew 14% to $4,200,000, reflecting increased utilization of devices [14] - Domestic sales increased 18% to $18,200,000, while international sales decreased 9% to $2,200,000 [14] Market Data and Key Metrics Changes - Domestic revenue accounted for 89% of total revenue for Q2 2025, compared to 86% for Q2 2024 [14] - The company anticipates a significant demand for replacing older pump models, with over 6,205 units in the U.S. market alone that are over five years old [9] Company Strategy and Development Direction - The company aims to achieve a revenue run rate exceeding $100,000,000 by 2026, driven by the introduction of the new 3,870 IV pump [7][10] - The new pump is expected to have a higher average selling price (ASP) of approximately 12% more than the existing pump, which may positively impact gross margins [36] - The company plans to transition to a new facility, which may cause short-lived operational inefficiencies [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong backlog and anticipated continued growth, particularly with the upcoming launch of the new pump [20][22] - The company noted that the FDA clearance of the new pump is a significant milestone that will drive future sales growth [6] - Management acknowledged potential operational inefficiencies during the facility transition but remains optimistic about long-term growth prospects [11] Other Important Information - The company declared a quarterly dividend of $0.17 per share for Q3, payable on 08/28/2025 [11] - Cash flow from operations was reported at $7,700,000 for the quarter, up 17% from $6,600,000 in 2024 [17] Q&A Session Summary Question: Can you talk about the composition of the current backlog? - The backlog is composed of both pumps and a strong monitoring backlog, providing good visibility into the second half of the year [19][20] Question: How do you expect 3860 sales to trend in front of 3,870 launching? - Orders for the older pump are expected to remain strong until the new pump is actively marketed, likely around December [22] Question: What is the expected ramp-up to the $50,000,000 of pump revenue? - Initial sales of the new pump will be modest, with a stronger ramp-up expected in Q2 2026 [28] Question: Will the new pump's functionality expand the overall market? - The new pump's improved usability is expected to attract customers who previously hesitated to adopt the older model [31] Question: What is the timing from order to backlog fulfillment? - The monitor backlog is approximately four to five weeks, while the pump backlog is about five to six months [38]