TransMedics Revenue Climbs 41% To $203 Million — But Net Profit Falls
The organ-transplant technology company raised its annual sales outlook as liver and heart volumes grew and logistics added revenue.
TransMedics Group, which makes portable systems that preserve donated organs for transplant, increased third-quarter revenue 41% to $203 million and raised its annual sales forecast Thursday. Net profit fell to $17.1 million from $24.3 million a year earlier, according to the earnings release accompanying its SEC filing.
Liver, Heart And Logistics Growth
Higher liver and heart procedure volumes through the National OCS Program, along with more logistics revenue, accounted for most of the sales increase, the company said. Revenue grew 35% excluding PAD Aviation, compared with 41% overall; TransMedics made its strategic investment in PAD on July 1, 2026.
The company now expects revenue of $750–$760 million for 2026 excluding PAD, versus $737–$757 million previously. Including approximately $14 million from PAD, the forecast is $764–$774 million, representing annual growth of 26%–28%.
Product sales reached $113.4 million, up 29% from a year earlier. Services grew faster: revenue rose 60% to $89.6 million, or 43% excluding PAD.
TransMedics sells single-use disposable sets for its Organ Care System, which maintains warmth, oxygen supply and organ function during transport rather than storing organs on ice. Its National OCS Program handles procurement, preservation management and transportation for U.S. transplant centers; its 2025 annual report described a fleet of 22 acquired fixed-wing aircraft.
TMDX shares soared about 20% to $83.02 in Friday trading.
More Sales, Less Profit Per Dollar
Operating profit increased to $28.1 million from $23.3 million, but the operating margin fell to 13.9% from 16.2%. Operating expenses reached $90.5 million, versus $61.3 million a year earlier.
TransMedics attributed the spending increase to kidney and next-generation OCS development, heart clinical programs, staffing and infrastructure, including its U.S. headquarters and PAD. Stock-based pay expense was $12.1 million, compared with $8.7 million.
Gross margin slipped to 58.5% from 58.8%. A larger services share of sales weighed on that measure, partly offset by lower scrap and inventory adjustments and better logistics efficiency, including pricing improvements and lower ground-transport costs per mission.
Below operating profit, quarterly interest expense was $7.271 million versus $3.491 million. The company recorded a $7.028 million tax provision, compared with a $1.288 million tax benefit a year earlier.
Diluted earnings fell to $0.46 per share from $0.66. Adjusted net profit also declined, to $18.9 million from $24.5 million, with adjusted earnings of $0.51 per diluted share versus $0.67.
For the first nine months, revenue increased 27% to $566.886 million, while operating profit fell 25% to $65.174 million. Cash stood at $493.0 million on September 30, 2026.
Heart Trials And European Transport
The next-generation heart trial completed enrollment in Part A in September. October FDA permission for continued access allows another 90 patients to enroll; separate October approvals allow Part B and the lung trial to proceed, both using TransMedics’ controlled hypothermic organ-preservation system as a comparison treatment.
October also brought the company's first European transplant-logistics tender, in Italy, starting European transplant operations using PAD Aviation. President and CEO Waleed Hassanein said, “In Europe, we plan to launch OCS NOP in Italy, the Netherlands and Belgium, building on our first European transplant logistics win.”
TransMedics appointed Fernando Araujo as chief financial officer in September. Araujo previously held that role at GE HealthCare’s Advanced Imaging Solutions segment.
The company targets its first human clinical experience with OCS Kidney in the second half of 2027.
Sources
- 8-K Filing — TransMedics Group, Inc. (TMDX) — SEC EDGAR
- Exhibit tmdx-ex99_1.htm — TransMedics Group, Inc. 8-K exhibit — SEC EDGAR
- TransMedics raises 2026 revenue guidance to $764M-$774M as ENHANCE Part B and DENOVO catalysts shift to early 2027 (NASDAQ:TMDX) — seekingalpha.com
- TransMedics: Q3 Earnings Snapshot — Associated Press
- TransMedics Group Inc (TMDX) (Q3 2026) Earnings Call Highlights: Record $203 Million Revenue ... — Yahoo Finance
- TransMedics (TMDX) Q3 2026 Earnings Call Transcript - The Globe and Mail — theglobeandmail.com
- TransMedics: Q3 Earnings Snapshot – WTOP News — wtop.com
