TransMedics Group, Inc. reported fourth‑quarter revenue of $160.8 million, a 32% year‑over‑year increase, and net income of $105.4 million, a 66% jump from $6.9 million in Q4 2024. The company’s GAAP earnings per share of $2.62 far exceeded the consensus estimate of $0.41, a beat of $2.21 or 540% above expectations, driven by higher utilization of its Organ Care System (OCS) and National OCS Program (NOP) services and disciplined cost control.
The quarter’s gross margin of 58% was slightly lower than the 59% margin reported in Q4 2024, a compression attributed to higher clinical service and freight costs associated with expanding NOP operations. However, the full‑year gross margin rose to 60% from 59% in 2024, reflecting improved operational efficiency and a more favorable product mix. One‑time income‑tax benefits of $83.8 million, resulting from the release of a valuation allowance on deferred tax assets, lifted reported net income to $105.4 million, underscoring the impact of non‑recurring items on profitability.
Full‑year 2025 revenue reached $605.5 million, up 37% from $441.5 million in 2024, while net income climbed to $190.3 million, a 31% increase. Management raised its 2026 revenue guidance to a range of $727 million to $757 million, up from the prior guidance of $700 million to $730 million, signaling confidence in continued demand for the OCS platform and the expansion of the NOP logistics network.
In a conference call, President and CEO Waleed Hassanein highlighted the company’s “strong execution” and “disciplined investment” that enabled the robust results. He noted that the OCS Kidney program launch and international expansion are expected to further accelerate growth, while the company remains focused on expanding the OCS platform and NOP logistics to capture additional market share in the organ transplantation space.
Investors responded positively to the earnings, citing the significant earnings and revenue beats, the upward revision of the 2026 revenue outlook, and the company’s clear focus on expanding its OCS platform and logistics capabilities as key drivers of future growth.
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