TransMedics Reports Fourth Quarter and Full Year 2025 Financial Results
ANDOVER, Mass., Feb. 24, 2026 /PRNewswire/ -- TransMedics Group, Inc. ("TransMedics") (Nasdaq: TMDX), a medical technology company that is transforming organ transplant therapy for patients with end-stage lung, heart, and liver failure, today reported financial results for the quarter and year ended December 31, 2025.
Recent Highlights
"We are very pleased with our fourth quarter and full year 2025 performance. These results reflect strong execution, continued adoption of our OCS TM NOP TM program, and disciplined investment to support sustained long-term growth," said Waleed Hassanein, M.D., President and Chief Executive Officer. "We have several strategic growth initiatives lined up for 2026 to catalyze growth short, mid- and long-term for TransMedics. We are laser focused on executing on these initiatives by accelerating heart and lung adoption in the US through our ongoing clinical programs, launching our NOP model in Europe, and preparing for the clinical launch of our OCS Kidney program. Achieving our goals would make 2026 another transformative year for TransMedics and catalyze our growth for the next several years, while advancing our mission to expand access and improve clinical outcomes for transplant patients globally."
Fourth Quarter 2025 Financial Results
Total revenue for the fourth quarter of 2025 was $160.8 million, a 32% increase compared to $121.6 million in the fourth quarter of 2024. The increase was due primarily to the increase in utilization of the Organ Care System ("OCS"), primarily in Liver and Heart through the National OCS Program ("NOP") and related NOP service revenue fueled by the continued expansion and utilization of our aviation fleet.
Gross margin for the fourth quarter of 2025 was 58%, compared to 59% in the fourth quarter of 2024. The change from prior year is a result of higher clinical service expenses in support of NOP expansion and higher freight cost.
Operating expenses for the fourth quarter of 2025 were $72.1 million, compared to $63.4 million in the fourth quarter of 2024. The increase in operating expenses was driven primarily by increased research and development investment as well as investment throughout the organization to support the growth of the company. Fourth quarter operating expenses in 2025 included $9.1 million of stock compensation expense compared to $10.4 million of stock compensation expense in the fourth quarter of 2024.
Net income for the fourth quarter of 2025 was $105.4 million, or 66% of revenue, compared to $6.9 million in the fourth quarter of 2024. This includes a net income tax benefit of $83.8 million, primarily driven by a one-time benefit of $103.3 million from the release of the Company's valuation allowance related to deferred tax assets.
Full Year 2025 Financial Results
Total revenue for the full year of 2025 was $605.5 million, an 37% increase compared to $441.5 million for the full year of 2024. The increase was driven primarily by the increase in utilization of the OCS across all three organs through the NOP as well as additional revenue generated by TransMedics logistics services.
Gross margin for the full year of 2025 was 60%, compared to 59% in the full year of 2024. The change from prior year was a result of increased efficiencies in transplant logistics and benefits of scale.
Operating expenses for the full year of 2025 were $254.2 million, compared to $224.6 million in the full year of 2024. The increase in operating expense was driven primarily by increased research and development investment as well as investment throughout the organization to support the growth of the company. Full year operating expenses in 2025 included $35.5 million of stock compensation expense compared to $31.7 million of stock compensation expense in the full year of 2024.
Net income for the full year of 2025 was $190.3 million, or 31% of revenue, compared to $35.5 million in the full year of 2024. This includes a net income tax benefit of $82.8 million, primarily driven by a one-time benefit of $103.3 million from the release of the Company's valuation allowance related to deferred tax assets.
Cash was $488.4 million as of December 31, 2025 compared to $466.2 million as of September 30, 2025.
2026 Financial Outlook
TransMedics expects total revenue for the full year 2026 to be in the range of $727 million to $757 million, which represents 20% to 25% growth compared to the company's prior year revenue.
Webcast and Conference Call Details
The TransMedics management team will host a conference call beginning at 4:30 p.m. ET / 1:30 p.m. PT on Tuesday, February 24, 2026. Investors interested in listening to the conference call may do so by dialing (800) 715-9871 for domestic callers or (646) 307-1963 for international callers and providing access code 8036478. A live and archived webcast of the event and the company's slide presentation with information on fourth quarter and full year 2025 financial results will be available on the "Investors" section of the TransMedics website at www.transmedics.com.
About TransMedics Group, Inc.
TransMedics is the world's leader in portable extracorporeal warm perfusion and assessment of donor organs for transplantation. Headquartered in Andover, Massachusetts, the company was founded to address the unmet need for more and better organs for transplantation and has developed technologies to preserve organ quality, assess organ viability prior to transplant, and potentially increase the utilization of donor organs for the treatment of end-stage heart, lung, and liver failure.
Forward-Looking Statements
This press release contains forward-looking statements. These forward-looking statements address various matters, including, among other things, future results and events, including financial guidance and projected estimates, growth initiatives for our business both in the U.S. and globally, our strategic initiatives to catalyze short, mid- and long-term growth in 2026 and over the next several years, our goals for 2026 and our focus on accelerating heart and lung transplant adoption in the U.S., launching our NOP model in Europe and preparing for the launch for OCS kidney program, and advancing our mission to expand access and improve clinical outcomes for transplant patients globally. For this purpose, all statements other than statements of historical facts are forward-looking statements. The words "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "could," "target," "predict," "seek" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties. Our management cannot predict all risks, nor can we assess the impact of all factors or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in or implied by any forward-looking statements we may make. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated in or implied by the forward-looking statements. Some of the key factors that could cause actual results to differ include: the fluctuation of our financial results from quarter to quarter; our ability to attract, train and retain key personnel; our dependence on the success of the Organ Care System ("OCS"); our ability to expand access to the OCS through our National OCS Program ("NOP"); our ability to improve the OCS platform, including by developing the next generation of the OCS products or expanding into new indications, and the development, and potential commercialization of our OCS Kidney device; the timing or results of clinical trials for the OCS, including pre- and post-approval studies; our ability to sustain profitability; our need to raise additional funding and our ability to obtain it on favorable terms, or at all; our ability to use net operating losses and research and development credit carryforwards; that we have identified a material weakness in our internal control over financial reporting, and that we may identify additional material weaknesses in the future; our ability to scale our manufacturing and sterilization capabilities to meet increasing demand for our products; the rate and degree of market acceptance of the OCS; our ability to educate patients, surgeons, transplant centers and private and public payors on the benefits offered by the OCS; our dependence on a limited number of customers for a significant portion of our revenue; our ability to maintain regulatory approvals or clearances for our OCS products in the United States, the European Union, and other select jurisdictions worldwide; our ability to adequately respond to the Food and Drug Administration ("FDA"), or other competent authorities, follow-up inquiries in a timely manner; the impact of healthcare policy changes, including recently enacted or potential future legislation or administrative actions affecting or reforming the U.S. healthcare system, Organ Procurement and Transplantation Network ("OPTN"), or the FDA; the performance of our third-party suppliers and manufacturers; our use of third parties to transport donor organs and medical personnel for our NOP and our ability to maintain and grow our transplant logistics capabilities to support our NOP to reduce dependence on third party transportation, including by means of attracting, training and retaining pilots, and the acquisition, maintenance or replacement of fixed-wing aircraft for our aviation transportation services or other acquisitions, joint ventures or strategic investments; our ability to maintain Federal Aviation Administration ("FAA") or other regulatory licenses or approvals for our aircraft transportation services; price increases of the components of our products and maintenance, parts and fuel for our aircraft; our manufacturing, sales, marketing and clinical support capabilities and strategy; attacks against our information technology infrastructure; the economic, political and other risks associated with our foreign operations; our ability to protect, defend, maintain and enforce our intellectual property rights relating to the OCS and avoid allegations that our products or services infringe, misappropriate or otherwise violate the intellectual property rights of third parties; the pricing of the OCS, as well as the reimbursement coverage for the OCS in the United States and internationally; regulatory developments in the United States, European Union and other jurisdictions; the impact of a shutdown of the U.S. government; the extent and success of competing products or procedures that are or may become available; our ability to service our 1.50% convertible senior notes, due 2028; our existing and any future indebtedness, including our ability to comply with affirmative and negative covenants under our credit agreements to which we will remain subject until maturity; the impact of any product recalls or improper use of our products; our international expansion plans and the costs related thereto; our estimates regarding revenue, expenses and needs for additional financing; and other factors that may be described in our filings with the Securities and Exchange Commission (the "SEC"). Additional information will be made available in our annual and quarterly reports and other filings that we make with the SEC. The forward-looking statements in this press release speak only as of the date of this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and we are not able to predict all of them. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable law.
Investor Contact:
Brian Johnston
Laine Morgan
Gilmartin Group
332-895-3222
[email protected]
TransMedics Group, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
Revenue:
Net product revenue
$
100,390
$
74,948
$
372,401
$
273,866
Service revenue
60,374
46,676
233,093
167,674
Total revenue
160,764
121,624
605,494
441,540
Cost of revenue:
Cost of net product revenue
23,402
16,545
77,822
58,345
Cost of service revenue
43,948
33,066
164,866
121,114
Total cost of revenue
67,350
49,611
242,688
179,459
Gross profit
93,414
72,013
362,806
262,081
Gross margin
58
%
59
%
60
%
59
%
Operating expenses:
Research, development and clinical trials
20,701
16,464
69,055
55,968
Selling, general and administrative
51,440
46,905
185,168
168,617
Total operating expenses
72,141
63,369
254,223
224,585
Income from operations
21,273
8,644
108,583
37,496
Other income (expense):
Interest expense
(3,354)
(3,571)
(13,782)
(14,409)
Interest income and other income (expense), net
3,714
1,916
12,721
12,693
Total other income (expense), net
360
(1,655)
(1,061)
(1,716)
Income before income taxes
21,633
6,989
107,522
35,780
(Provision) benefit for income taxes
83,750
(132)
82,769
(316)
Net income
$
105,383
$
6,857
$
190,291
$
35,464
Net income per share:
Basic
$
3.08
$
0.20
$
5.60
$
1.07
Diluted
$
2.62
$
0.19
$
4.87
$
1.01
Weighted average common shares outstanding:
Basic
34,220,360
33,592,408
33,993,468
33,229,953
Diluted
40,927,898
35,211,121
40,540,694
35,216,837
TransMedics Group, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
December 31,
2025
2024
Assets
Current assets:
Cash
$
488,366
$
336,650
Accounts receivable
84,282
97,722
Inventory
48,881
46,554
Prepaid expenses and other current assets
16,254
16,290
Total current assets
637,783
497,216
Property, plant and equipment, net
327,656
285,970
Operating lease right-of-use assets
5,155
6,481
Deferred tax assets
83,543
—
Restricted cash
500
500
Goodwill
11,549
11,549
Acquired intangible assets, net
1,948
2,152
Other non-current assets
239
208
Total assets
$
1,068,373
$
804,076
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
10,350
$
10,292
Accrued expenses and other current liabilities
62,740
45,152
Current portion of long-term debt
10,000
—
Deferred revenue
2,905
1,742
Operating lease liabilities
3,310
2,727
Total current liabilities
89,305
59,913
Convertible senior notes, net
452,804
449,939
Long-term debt, net
49,587
59,372
Operating lease liabilities, net of current portion
3,577
6,249
Total liabilities
595,273
575,473
Total stockholders' equity
473,100
228,603
Total liabilities and stockholders' equity
$
1,068,373
$
804,076
SOURCE TransMedics Group, Inc.