TMDX · TransMedics Group, Inc.

TransMedics reported Q1 2026 revenue of $173.9 million, a 21% increase year-over-year, driven by higher utilization of the Organ Care System (OCS) in Liver and Heart through the National OCS Program (NOP) and additional logistics services revenue. Gross margin declined to 58% from 61% due to investments to support growth and higher supply chain costs. Operating expenses rose to $87.9 million from $60.8 million, reflecting increased R&D and organizational investments, including $9.6 million in stock compensation. Consequently, GAAP operating income fell to $13.3 million (7.6% margin) from $27.4 million (19.1% margin). Net income was $7.3 million ($0.20 diluted EPS) compared to $25.7 million ($0.70) in the prior year. On an adjusted basis, net income was $10.9 million ($0.30 diluted EPS) versus $27.4 million ($0.74). Management reiterated full-year 2026 revenue guidance of $727-$757 million, representing 20%-25% growth. The company highlighted key growth catalysts: accelerating ENHANCE heart and DENOVO lung programs in the U.S., launching the NOP model in Europe, and advancing the OCS Kidney program. Cash stood at $461.7 million as of March 31, 2026. The earnings release also noted an agreement to invest in PAD Aviation to create a dedicated European transplant logistics network.