The quarter was in line with company expectations but showed margin erosion and lower profitability. Focus shifts to Q3 results for evidence of 3870 pump revenue ramp and gross margin recovery. The reaffirmed guidance suggests management expects improvement in H2, but execution risk remains. Monitor the next 10-Q for segment detail on the new pump.
Price Chart
Executive Summary
IRADIMED reported Q2 2026 revenue of $20.5M (+0.5% YoY) but GAAP EPS fell 9% to $0.41 and net income dropped 10% to $5.2M, with gross margin contracting to 74% from 78%. The company reaffirmed full-year guidance and highlighted the initial launch of its next-generation 3870 MR IV pump, though the quarter showed declining profitability and operating cash flow.
Key Facts
- Q2 2026 revenue $20.5M, up 0.5% YoY from $20.4M
- GAAP diluted EPS $0.41, down 9% from $0.45 YoY
- Non-GAAP diluted EPS $0.46, down 7% from $0.49 YoY
- Net income $5.2M, down 10% from $5.8M YoY
- Gross profit margin 74% vs 78% in Q2 2025
- Operating cash flow $5.9M, down 23% from $7.7M YoY
- Q3 2026 guidance: revenue $23.0M-$24.5M, GAAP EPS $0.49-$0.54
- Full-year 2026 guidance reaffirmed: revenue $91M-$96M, GAAP EPS $1.90-$2.05
- Declared regular quarterly cash dividend of $0.20 per share
- Initial shipments of next-generation 3870 MR IV pump began in Q2
Financial Impact
Revenue essentially flat (+0.5%) while earnings declined ~9-10% and gross margin compressed 400bps; cash flow from operations fell 23% in the quarter.
Risk Factors
- New product (3870 pump) ramp may face production or adoption delays
- Gross margin pressure could persist if startup inefficiencies continue
- Flat revenue growth and declining EPS may weigh on valuation multiple
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-051240 |
| Document: irmd-20260731.htm | 0001628280-26-051240 |
| Document: 0001628280-26-051240-index-headers.html | 0001628280-26-051240 |
| Document: 0001628280-26-051240-index.html | 0001628280-26-051240 |
| Document: 0001628280-26-051240.txt | 0001628280-26-051240 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 31, 2026 12w ago | 8-K | $90.86 $84.63 | ▼ −6.86% | ▼ −9.31% | $84.63 (−6.86%) |
Jul 31, 2026 12w ago | Press Release | $90.86 $84.63 | ▼ −6.86% | ▼ −9.31% | $84.63 (−6.86%) |
Jul 24, 2026 13w ago | Press Release | $95.08 $87.65 | ▼ −7.81% | ▼ −11.52% | $84.63 (−10.99%) |
Jun 4, 2026 20w ago | Insider Cluster | $93.07 $86.38 | ▼ −7.19% | ▼ −11.19% | $84.63 (−9.07%) |
May 20, 2026 22w ago | Press Release | $90.40 $86.95 | ▼ −3.82% | ▼ −8.82% | $84.63 (−6.38%) |
May 1, 2026 25w ago | Press Release | $87.15 $94.83 | ▲ +8.81% | ▲ +5.74% | $84.63 (−2.89%) |
Apr 27, 2026 26w ago | Press Release | $89.08 $94.08 | ▲ +5.61% | ▲ +0.84% | $84.63 (−5.00%) |
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