Here's What Offers IRadimed Corp. (IRMD) a Compelling Growth Trajectory

Conestoga Capital Advisors, an asset management company, released its fourth-quarter 2025 investor letter. As many believe, US equities experienced solid returns in 2025, with double-digit gains across all major indices, yet underlying conditions revealed extreme volatility and market leadership. A copy of the letter can be downloaded here. In 2025, the Conestoga Micro Cap Composite met its purpose of preserving capital during negative market returns and capturing upside during strong market returns. Micro Caps faced significant volatility in 2025. During the course of events, Conestoga Micro Cap Composite returned -1.91% net of fees in the fourth quarter and 16.24% net of fees for the full year 2025, trailing the Russell Microcap Growth Index’s 2.14% and 21.84% gains in the fourth quarter and full year, respectively. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Conestoga Capital Advisors highlighted IRADIMED CORPORATION (NASDAQ:IRMD). Headquartered in Orlando, Florida, IRADIMED CORPORATION (NASDAQ:IRMD) is a magnetic resonance imaging (MRI) compatible medical device manufacturer. The one-month return for IRADIMED CORPORATION (NASDAQ:IRMD) was 0.00%, and its shares gained 79.34% over the last 52 weeks. On February 19, 2026, IRADIMED CORPORATION (NASDAQ:IRMD) stock closed at $100.86 per share, with a market capitalization of $1.283 billion.

Conestoga Capital Advisors stated the following regarding IRADIMED CORPORATION (NASDAQ:IRMD) in its fourth quarter 2025 investor letter:

"IRADIMED CORPORATION (NASDAQ:IRMD) develops, manufactures, and markets MRI-compatible medical devices, including infusion pump systems and patient monitors. The company delivered record third quarter revenue and earnings, prompting management to raise full-year guidance. This strong operational performance, combined with the announcement of a special cash dividend, underscored the company's financial health and commitment to shareholder returns. We believe IRMD’s niche leadership and innovative product pipeline continue to offer a compelling growth trajectory."

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IRADIMED CORPORATION (NASDAQ:IRMD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held IRADIMED CORPORATION (NASDAQ:IRMD) at the end of the third quarter, which was 13 in the previous quarter. In Q4 2025, IRADIMED CORPORATION (NASDAQ:IRMD) reported record revenue of $22.7 million, marking an increase of 17% compared to Q4 2024. While we acknowledge the potential of IRADIMED CORPORATION (NASDAQ:IRMD) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered IRADIMED CORPORATION (NASDAQ:IRMD) and shared Riverwater Partners Micro Opportunities Strategy's views on the company. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.