10-Q · May 5, 2026
TransMedics reported Q1 2026 revenue of $173.9 million, a year-over-year increase of $30.4 million, although it missed analyst EPS estimates at $0.20 versus $0.61 expected. The company observed significant growth in…
Earnings analysis · 10-Q
TMDX earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
TransMedics delivered Q2 revenue of $189.948 million, up 20.7% year over year and above consensus, led by service revenue growth of 28.6% and U.S. liver revenue growth of $32.127 million. However, gross margin fell to…
Read full summary
TransMedics delivered Q2 revenue of $189.948 million, up 20.7% year over year and above consensus, led by service revenue growth of 28.6% and U.S. liver revenue growth of $32.127 million. However, gross margin fell to 60% from 61%, operating margin declined to 12.5% from 23.2%, and GAAP diluted EPS decreased to $0.41 from $0.92, reflecting sharply higher development, infrastructure and finance-lease costs. Liquidity is substantial at $472.7 million of cash, but first-half operating cash flow fell to $41.842 million and management disclosed a material weakness in interim inventory-movement controls.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.41
What stood out
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Revenue grew 21% and beat consensus
Q2 revenue was $189.948 million, up $32.578 million, or 20.7%, from $157.370 million a year earlier and up approximately 9.2% from $173.933 million in Q1 2026. Revenue exceeded the $184.061 million consensus estimate by 3.2%.
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NOP-driven service revenue outgrew product
Service revenue increased $17.520 million to $78.790 million, outpacing the $15.058 million increase in product revenue to $111.158 million. Management attributed U.S. growth to higher OCS Liver disposable-set volumes and increased NOP usage.
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Liver remained the principal growth driver
U.S. liver revenue increased $32.127 million to $147.989 million, more than offsetting a $1.901 million reduction in U.S. lung revenue to $2.253 million. Total U.S. OCS transplant revenue rose $31.436 million to $183.623 million.
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Sequential profitability and liquidity improved
Operating margin improved sequentially to 12.5% in Q2 from approximately 7.6% in Q1, as operating income increased to $23.736 million from $13.297 million. Cash at June 30 was $472.7 million, and management believes existing cash funds operations, capex and debt service for at least 12 months.
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Operating cash flow remained positive
Six-month operating cash flow was positive $41.842 million, despite $36.8 million of working-capital use. Investing cash outflow of $43.749 million was primarily for Somerville land and building purchases.
What to watch
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Year-over-year margin and EPS compression
Margins and earnings remain below prior-year levels: Q2 gross margin declined to 60% from 61%, operating income fell $12.831 million to $23.736 million, and GAAP diluted EPS was $0.41 versus $0.92 a year earlier. Gross-margin pressure reflected a larger service mix and lower product margin.
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Investment spending materially outpaced revenue
R&D expense nearly doubled to $31.632 million from $15.934 million, including a $10.564 million increase in consulting and third-party services for next-generation OCS and OCS Kidney development. SG&A rose $13.742 million to $57.830 million.
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Material weakness in inventory controls
Management concluded disclosure controls were not effective as of June 30, 2026 because controls over interim inventory movement were deficient. Inventory increased $10.2 million and accounts receivable increased $19.9 million during the first six months of 2026.
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Cash conversion weakened amid elevated capex
Operating cash flow declined to $41.842 million in the first half of 2026 from $88.754 million a year earlier, while capital spending was $43.749 million. Planned headquarters capex is approximately $200 million-$240 million through 2030, with $12.7 million committed as of June 30, 2026.
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No new Item 1A risk-factor disclosures
No amendments to the Item 1A risk factors were identified; the filing directs investors to the risk factors in the 2025 Form 10-K. Separately, the company has $460.0 million of 1.5% convertible notes maturing June 1, 2028 and a $60.0 million CIBC loan with principal repayments beginning in July 2026.
Management's outlook
The 10-Q provides no explicit revenue or EPS guidance. Management expects long-term revenue growth and projects a 2026 effective income-tax rate of 25%-27%; it estimates new-headquarters capital expenditures of approximately $200 million-$240 million through 2030.
Earlier filings 4
10-K · February 24, 2026
TransMedics reports strong multi-year revenue growth to $605.5 million in 2025 (up 37.1% year-over-year) driven by its FDA‑approved Organ Care System (OCS) product platform and growth of its National OCS Program (NOP).…
10-Q · October 29, 2025
TransMedics reported Q3 revenue of $143,823,000 (up $35,062,000, +32.2% YoY) and GAAP diluted EPS of $0.66 (vs $0.12 a year ago), driven by product and service revenue expansion and higher operating income. The company…
10-Q · July 30, 2025
TransMedics reported a strong Q2 2025 with revenue of $157,370,000 (+$43,065,000, +37.7% vs Q2 2024) and diluted EPS of $0.92 (vs $0.35 in Q2 2024), materially beating consensus. Gross margin held at ~61.4% and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.