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TransMedics Group TMDX delivered earnings per share (EPS) of 57 cents in the fourth quarter of 2025, excluding a one-time benefit related to deferred tax assets, which surged 200% year over year. The figure surpassed the Zacks Consensus Estimate by 39%.
TransMedics reported an EPS of $2.85 for 2025, excluding a one-time benefit related to deferred tax assets, against an EPS of $1.01 for 2024.
TransMedics registered revenues of $160.8 million in the fourth quarter, up 32% year over year. The figure surpassed the Zacks Consensus Estimate by 3.1%.
Per management, the uptick was driven by the increased utilization of the Organ Care System, primarily in liver and heart, under the National OCS Program, along with higher NOP service revenues stemming from the continued expansion and utilization of the aviation fleet.
During the reported quarter, TMDX was able to cover 80% of its NOP missions requiring air transport compared with approximately 75% in the fourth quarter of 2024.
For 2025, TMDX registered total revenues of $605.5 million, up 37% compared with 2024.
However, shares of TransMedics gained 6.7% in yesterday’s after-market trading. The company’s shares have climbed 28.3% in the last six months against the industry’s decline of 3.9%. However, the broader S&P 500 Index has increased 8.2% in the same time frame.
TMDX derives revenues via two sources — Net product revenues and Service revenues.
In the fourth quarter of 2025, Net product revenues totaled $100.4 million, up 34% year over year. Growth was driven by continued momentum across both liver and heart programs.
Service revenues totaled $60.4 million, up 29% year over year, driven primarily by logistics.
Transplant Logistics’ services revenues for fourth-quarter 2025 were $28.6 million, up 32% year over year. This resulted from the continued expansion and strong utilization of TransMedics’ aviation fleet.
In the quarter under review, TransMedics’ gross profit increased 29.7% year over year to $93.4 million. The gross margin contracted 110 basis points (bps) to 58%.
Selling, general and administrative expenses rose 9.7% year over year to $51.4 million. Research, development and clinical trials expenses surged 25.7% year over year to $20.7 million. Total operating expenses of $72.1 million increased 13.8% year over year.
Operating profit totaled $21.3 million, reflecting a 146% jump from the prior-year quarter. The operating margin in the fourth quarter expanded 600 bps to 13%.
TransMedics Group, Inc. price-consensus-eps-surprise-chart | TransMedics Group, Inc. Quote
TransMedics exited fourth-quarter 2025 with cash of $488.4 million compared with $466.2 million at the end of third-quarter 2025. Total long-term debt at the end of fourth-quarter 2025 was $49.6 million compared with $54.6 million at the end of third-quarter 2025.
Cumulative net cash provided by operations at the end of 2025 was $192.8 million compared with $158.3 million at the end of the third quarter of 2025.
TransMedics provided its revenue outlook for 2026.
For 2026, the company expects revenues in the range of $727-$757 million, reflecting growth of 20-25% from the 2025 level. The Zacks Consensus Estimate is pegged at $723.8 million.
TransMedics exited fourth-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 marked its third consecutive year of OCS transplant volume growth. U.S. OCS cases increased to 5,139 in 2025, representing 26% of total U.S. heart, liver and lung transplants. Management emphasized that since 2022, national transplant volumes grew 25%, including OCS NOP cases, but excluding them, it would have declined 1%.
In 2026, the company is focused on accelerating growth by expanding clinical indications, geographic reach and next-generation technology across its Organ Care System (OCS) platform. Upcoming catalysts include the ENHANCE Heart and DENOVO Lung programs, both FDA-cleared and progressing through enrollment, with updates expected at ISHLT.
A primary catalyst is the OCS ENHANCE Heart program, which aims to move heart transplantation beyond cold static storage toward functional enhancement. Part A seeks to extend preservation time and distance, while Part B targets a new clinical indication in sub-4-hour DBD heart transplants by demonstrating superiority over traditional cold storage. Success could expand U.S. heart transplant volumes and revenues.
The OCS DENOVO Lung program is designed to drive broader adoption of machine perfusion and the National OCS Program (NOP), reviving lung transplantation growth in the United States. International expansion is another priority by launching the NOP model in Europe, starting with Italy, alongside building logistics and clinical infrastructure.
TransMedics is advancing the OCS Kidney program, leveraging its new Gen 3.0 platform, targeting a large and underpenetrated kidney transplant market. Upgrades to the heart, lung and liver systems are also underway. These initiatives support TransMedics to enter 2026 with strong momentum and a clear roadmap to extend its market leadership.
TransMedics currently carries a Zacks Rank #3 (Hold).
Some top-ranked stocks in the broader medical space are Intuitive Surgical ISRG, AngioDynamics ANGO and Pacific Biosciences of California PACB.
Intuitive Surgical, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 15.7%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 13.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuitive Surgical’s shares have gained 5.3% against the industry’s 3.9% decline in the past six months.
AngioDynamics, sporting a Zacks Rank #1 at present, has an estimated earnings growth rate of 59.3% for 2026. ANGO’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 82.1%.
AngioDynamics’s shares have climbed 18.1% against the industry’s 3.9% decline in the past six months.
Pacific Biosciences of California, currently sporting a Zacks Rank of 1, has an estimated earnings growth rate of 11.1% for 2026. PACB’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 27.7%.
Pacific Biosciences of California’s shares have risen 25.7% against the industry’s 3.9% decline in the past six months.
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This article originally published on Zacks Investment Research (zacks.com).
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