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TransMedics Group, Inc. TMDX delivered earnings per share (EPS) of 92 cents in the second quarter of 2025, which surged 162.9% year over year. The figure surpassed the Zacks Consensus Estimate by 91.7%.
TransMedics registered revenues of $157.4 million in the second quarter, up 37.7% year over year. The figure surpassed the Zacks Consensus Estimate by 6.8%.
Per management, the uptick resulted from the increase in utilization of the Organ Care System (OCS), primarily in liver and heart through the National OCS Program (NOP), and additional revenues generated by the addition of TransMedics logistics services.
During the reported quarter, TMDX was able to cover 79% of its NOP missions requiring air transport compared with 78% in the first quarter of 2025.
Shares of this company gained nearly 10.5% yesterday. The company’s shares have surged 90.7% in the year-to-date period against the industry’s decline of 7.5%. The broader S&P 500 Index has increased 7.9% in the same time frame.
TMDX derives revenues via two sources — Net product revenue and Service revenue.
In the second quarter of 2025, Net product revenues totaled $96.1 million, up 33.9% year over year. Growth was driven by increased organ utilization in the liver and continued OCS adoption across both the liver and the heart.
Service revenues totaled $61.3 million, up 43.9% year over year, drivenprimarily by logistics.
Transplant Logistics’ services revenues for second-quarter 2025 were$29.8 million, up 56% year over year. This resulted from the continued expansion and utilization of TransMedics’ aviation fleet.
In the quarter under review, TransMedics’ gross profit increased 39.4% year over year to $96.6 million. The gross margin expanded 78 basis points (bps) to 61%.
Selling, general and administrative expenses rose 2.8% year over year to $44.1 million. Research, development and clinical trials expenses surged 14.9% year over year to $15.9 million. Total operating expenses of $60 million increased 5.8% year over year.
Operating profit totaled $36.6 million, reflecting a 192.3% jump from the prior-year quarter. The operating margin in the second quarter expanded 1230 bps to 23.2%.
TransMedics exited second-quarter 2025 with cash of $400.6 million compared with $310.1 million at the end of first-quarter of 2025. Total long-term debt at the end of second-quarter 2025 was $59.5 million compared with $59.4 million at the end of first-quarter 2025.
Cummulative net cash provided by operations at the end of the second quarter was $88.8 million compared with $22.3 million at the second quarter of 2024-end.
TransMedics Group, Inc. price-consensus-eps-surprise-chart | TransMedics Group, Inc. Quote
TransMedics has raised its revenue outlook for 2025.
For the full year, the company now expects revenues in the range of $585 million-$605 million (reflecting growth of 35% at the midpoint from the comparable 2024 figures). This is up from the prior outlook of $565 million to $585 million. The Zacks Consensus Estimate is pegged at $580.4 million.
TransMedics exited second-quarter 2025 with better-than-expected results. The solid top and bottom-line performances and the uptick in Transplant Logistics services revenues were encouraging. Strength in both revenue sources was also impressive. The expansion of the operating margin bodes well.
TransMedics’ management emphasized that the company is not only hitting new milestones but actively laying the groundwork for even bigger breakthroughs. A standout development was the FDA’s conditional approval for its next-gen OCS Lung clinical trial, with the OCS Heart IDE expected to follow soon—both viewed as potential growth catalysts for 2026.
Management also highlighted expansion plans, including the upcoming OCS Kidney launch, growing the NOP logistics network, and even identifying a new global headquarters to scale operations beyond 10,000 transplants. These efforts, combined with strong cash generation and operating leverage, position TransMedics to lead a global transformation in transplant care while remaining an attractive growth story for long-term investors.
TransMedics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Medpace Holdings, Inc. MEDP, West Pharmaceutical Services, Inc. WST and Boston Scientific Corporation BSX.
Medpace Holdings, sporting a Zacks Rank of 1 (Strong Buy), reported second-quarter 2025 EPS of $3.10, beating the Zacks Consensus Estimate by 3.3%. Revenues of $603.3 million outpaced the consensus mark by 11.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medpace Holdings has a long-term estimated growth rate of 11.4%. MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.9%.
West Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, beating the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1.
West Pharmaceutical has a long-term estimated growth rate of 8.5%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.
Boston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2 (Buy).
Boston Scientific has a long-term estimated growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%.
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This article originally published on Zacks Investment Research (zacks.com).
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