The core business growth is very strong with 32-37% revenue growth and expanding full-year gross margins. The significant tax benefit is non-recurring, so future quarters will not see this level of net income. However, the robust 2026 guidance suggests continued strong top-line growth, making this a bullish signal for the stock despite the accounting anomaly in net income.
Price Chart
Executive Summary
TransMedics reported strong fourth quarter and full year 2025 financial results, with revenue up 32% and 37% respectively, driven by increased utilization of its Organ Care System. Net income surged to $105.4 million in Q4 and $190.3 million for the full year, significantly boosted by a one-time $83.8 million tax benefit from the release of a valuation allowance. The company also provided 2026 revenue guidance of $727-$757 million, representing 20-25% growth.
Key Financial Metrics
Key Facts
- Q4 2025 revenue was $160.8 million, up 32% YoY from $121.6 million in Q4 2024
- Full year 2025 revenue was $605.5 million, up 37% YoY from $441.5 million in 2024
- Q4 net income was $105.4 million ($2.62 diluted EPS), including an $83.8 million tax benefit
- Full year net income was $190.3 million ($4.87 diluted EPS), including an $82.8 million tax benefit
- 2026 revenue guidance is $727-$757 million, representing 20-25% growth over 2025
- Gross margin was 58% in Q4 2025 (down from 59% in Q4 2024) and 60% for full year 2025 (up from 59% in 2024)
Financial Impact
Revenue growth of 32-37% and 2026 guidance of 20-25% growth indicate strong momentum. The $83.8 million tax benefit significantly inflated Q4 net income, which would have otherwise been $21.6 million.
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Net product revenue | $372.4M | +36.0% |
| Service revenue | $233.1M | +39.0% |
Risk Factors
- The substantial net income in Q4 and full year 2025 was heavily influenced by a one-time $83.8 million tax benefit, which is not sustainable
- Gross margin declined slightly in Q4 2025 to 58% from 59% in Q4 2024 due to higher clinical service and freight costs
- Forward-looking statements in the filing highlight numerous risks including regulatory, reimbursement, and execution risks for new programs
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-066953 |
| Document: tmdx-20260224.htm | 0001193125-26-066953 |
| Document: 0001193125-26-066953-index-headers.html | 0001193125-26-066953 |
| Document: 0001193125-26-066953-index.html | 0001193125-26-066953 |
| Document: 0001193125-26-066953.txt | 0001193125-26-066953 |
| CONTEXT: Previous Earnings (2026-02-24) | 0001193125-26-066953 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jun 12, 2026 16w ago | Institutional Cluster | $72.91 $88.27 | ▲ +21.07% | ▲ +17.80% | $78.63 (+7.85%) |
Jun 11, 2026 16w ago | Institutional Cluster | $73.59 $89.98 | ▲ +22.27% | ▲ +17.88% | $78.63 (+6.85%) |
Apr 10, 2026 25w ago | DEFA14A | $114.00 $71.12 | ▼ −37.62% | ▼ −47.95% | $78.63 (−31.03%) |
Mar 2, 2026 30w ago | Insider Cluster | $147.00 $70.46 | ▼ −52.07% | ▼ −61.39% | $78.63 (−46.51%) |
Feb 27, 2026 31w ago | 8-K | $145.26 $70.46 | ▼ −51.49% | ▼ −60.88% | $78.63 (−45.87%) |
Feb 24, 2026 31w ago | 8-K | $131.85 $68.00 | ▼ −48.43% | ▼ −55.38% | $78.63 (−40.36%) |
US Market Status
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