TransMedics Reports Third Quarter 2026 Financial Results
TransMedics Group, Inc. (TMDX) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 PRESS RELEASE TransMedics Reports Third Quarter 2026 Financial Results Strong Revenue Generation Drives Increase in Full-Year 2026 Guidance; Recent Progress Positions Company for Continued Growth with Several Near- and Mid-Term Catalysts Andover, Mass. – November 5,
How this was made
The 30-second read
Why it matters
The raised guidance reflects strong product and service revenue growth, positioning the company for continued expansion.
Market read
Guidance raise may drive short‑term buying interest and influence related med‑tech stocks.
What to watch
Potential regulatory delays or slower adoption of new OCS platforms could temper growth
TransMedics Reports Third Quarter 2026 Financial Results Strong Revenue Generation Drives Increase in Full-Year 2026 Guidance; Recent Progress Positions Company for Continued Growth with Several Near- and Mid-Term Catalysts
Third-quarter revenue grew 41% to $203.0 million, supported by Liver and Heart National OCS Program volume, logistics services and PAD Aviation. Profitability remained positive but gross margin and operating margin declined, while net income and diluted EPS fell year over year. The company raised full-year revenue guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30, 2026GAAP | $203.0M | – | 41% |
| Organic revenue, three months ended September 30, 2026non-GAAP | $193.6M | – | 34.6% |
| Gross profit, three months ended September 30, 2026GAAP | $118.7M | – | – |
| Gross margin, three months ended September 30, 2026GAAP | 58.5% | – | – |
| Research, development and clinical trials expense, three months ended September 30, 2026GAAP | $29.18M | – | – |
| Selling, general and administrative expense, three months ended September 30, 2026GAAP | $61.33M | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | $90.52M | – | – |
| Stock compensation expense, three months ended September 30, 2026GAAP | $12.1M | – | – |
| Income from operations, three months ended September 30, 2026GAAP | $28.14M | – | 21% |
| Operating margin, three months ended September 30, 2026GAAP | 13.9% | – | -230bps |
| Adjusted income from operations, three months ended September 30, 2026non-GAAP | $28.87M | – | 22% |
| Adjusted operating margin, three months ended September 30, 2026non-GAAP | 14.2% | – | -220bps |
| Interest expense, three months ended September 30, 2026GAAP | −$7.27M | – | – |
| Income before income taxes, three months ended September 30, 2026GAAP | $24.10M | – | – |
| Net income, three months ended September 30, 2026GAAP | $17.07M | – | – |
| Diluted net income per share, three months ended September 30, 2026GAAP | $0.46 | – | -30% |
| Adjusted net income, three months ended September 30, 2026non-GAAP | $18.91M | – | – |
| Adjusted diluted net income per common share, three months ended September 30, 2026non-GAAP | $0.51 | – | -24% |
| Total revenue, nine months ended September 30, 2026GAAP | $566.9M | – | 27% |
| Income from operations, nine months ended September 30, 2026GAAP | $65.17M | – | -25% |
| Operating margin, nine months ended September 30, 2026GAAP | 11.5% | – | -810bps |
| Adjusted income from operations, nine months ended September 30, 2026non-GAAP | $72.77M | – | -19% |
| Adjusted operating margin, nine months ended September 30, 2026non-GAAP | 12.8% | – | -740bps |
| Net income, nine months ended September 30, 2026GAAP | $39.07M | – | – |
| Diluted net income per share, nine months ended September 30, 2026GAAP | $1.08 | – | -53% |
| Adjusted net income, nine months ended September 30, 2026non-GAAP | $46.04M | – | – |
| Adjusted diluted net income per common share, nine months ended September 30, 2026non-GAAP | $1.26 | – | -46% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Net product revenue, three months ended September 30, 2026The release attributed total revenue growth primarily to increasing Liver and Heart volume through the National OCS Program. | $113.4M | – | 29% |
| Service revenue, three months ended September 30, 2026Growth included additional revenue from TransMedics logistics services and the contribution of PAD Aviation following the Company's strategic investment on July 1, 2026. | $89.6M | – | 60% |
| Organic service revenue, three months ended September 30, 2026This non-GAAP measure excludes $9,385 (in thousands) of PAD Aviation charter services. | $80.20M | – | 42.8% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
FY 2026 outlook
- Revenue$764-$774 million
- NoteFY 2026 Revenue (excluding PAD Aviation): $750-$760 million
- NoteFY 2026 Revenue (including PAD Aviation) implied annual growth compared to FY 2025 revenue: 26% to 28%
- NoteFY 2026 Revenue (excluding PAD Aviation) implied annual growth compared to FY 2025 revenue: 24% to 26%
- NoteExpected PAD Aviation revenue: approximately $14 million
What drove it
- Increasing Liver and Heart volume through the National OCS Program.
- Additional revenue generated by TransMedics logistics services.
- Contribution of PAD Aviation following the Company's strategic investment on July 1, 2026.
- Reduced scrap, lower inventory adjustments and logistics efficiencies resulting from pricing improvements across service and logistics operations.
- Productivity gains from reduced supplemental lift utilization, lower ground transportation cost per mission, and improved leverage of fixed operating costs as volume increased.
- Completed enrollment in Part A of the Next-Generation OCS ENHANCE Heart trial and FDA approval of a continued access protocol allowing enrollment of an additional 90 patients.
- FDA IDE approvals for ENHANCE Heart Part B and DENOVO Lung trials, including CHOPS as a control arm for both trials.
- First European transplant logistics tender awarded in Italy.
Concerns
- Gross margin was 58.5%, compared with 58.8% in the prior-year period, primarily reflecting a higher mix of service revenue.
- Operating margin was 13.9%, compared with 16.2% in the prior-year period.
- Net income was $17.1 million, compared with $24.3 million in the prior-year period.
- Diluted net income per share was $0.46, compared with $0.66 in the prior-year period.
- Operating expenses increased to $90.5 million from $61.3 million, driven by planned investment in OCS Kidney, Next-Generation OCS and ENHANCE clinical programs, headcount and infrastructure investments.
- Interest expense was $(7,271) (in thousands), compared with $(3,491) (in thousands) in the prior-year period.
- The company disclosed that it has identified a material weakness in its internal control over financial reporting.
What to watch
- ENHANCE Heart Part B and DENOVO Lung trial progress following October FDA IDE approvals.
- OCS NOP launches planned in Italy, the Netherlands and Belgium.
- Execution of the first European transplant logistics tender in Italy.
- OCS Kidney first-in-human clinical experience targeted for the second half of 2027.
- Service revenue mix and its resulting effect on gross margin.
- PAD Aviation revenue contribution, for which full-year guidance assumes approximately $14 million.
Balance sheet and cash flow
- Cash was $493.0 million as of September 30, 2026.
- Cash: $492,962 (in thousands) as of September 30, 2026; $488,366 (in thousands) as of December 31, 2025.
- Restricted cash: $18,438 (in thousands) as of September 30, 2026; $500 (in thousands) as of December 31, 2025.
- Current portion of long-term debt, net: $54,818 (in thousands) as of September 30, 2026; $10,000 (in thousands) as of December 31, 2025.
- Convertible senior notes, net: $454,994 (in thousands) as of September 30, 2026; $452,804 (in thousands) as of December 31, 2025.
- Long-term debt, net: $— as of September 30, 2026; $49,587 (in thousands) as of December 31, 2025.
- Finance lease liability: $351,533 (in thousands) as of September 30, 2026; $— as of December 31, 2025.
- Total assets: $1,517,937 (in thousands) as of September 30, 2026; $1,068,373 (in thousands) as of December 31, 2025.
- Total liabilities: $967,225 (in thousands) as of September 30, 2026; $595,273 (in thousands) as of December 31, 2025.
- Total stockholders’ equity: $550,712 (in thousands) as of September 30, 2026; $473,100 (in thousands) as of December 31, 2025.
Analysis
TransMedics reported third-quarter revenue of $203.0 million, up 41% from $143.8 million. Organic revenue was $193.6 million and organic revenue growth was 34.6%. Growth reflected increasing Liver and Heart volume through the National OCS Program, additional logistics-services revenue, and PAD Aviation, which contributed $9.4 million of charter-services revenue in the quarter. Product revenue was $113.4 million, up 29%, while service revenue was $89.6 million, up 60%. The company described the quarter as its strongest in history, with record revenue and record case volume.
Revenue growth came with a modest gross-margin decline and substantially higher operating expense. Gross margin was 58.5%, compared with 58.8%, as a higher mix of service revenue weighed on margin. This was partly offset by reduced scrap, lower inventory adjustments, pricing improvements, reduced supplemental lift utilization, lower ground transportation cost per mission and fixed-cost leverage. Operating expenses rose to $90.5 million from $61.3 million, reflecting clinical and development spending for OCS Kidney, Next-Generation OCS and ENHANCE, higher headcount, headquarters-related infrastructure, and PAD Aviation.
GAAP income from operations increased 21% to $28.1 million, but operating margin declined to 13.9% from 16.2%. GAAP net income declined to $17.1 million from $24.3 million, and diluted EPS declined to $0.46 from $0.66. Adjusted income from operations rose 22% to $28.9 million, while adjusted diluted EPS declined 24% to $0.51. For the nine months ended September 30, 2026, total revenue increased 27% to $566.9 million, while GAAP operating income decreased 25% to $65.2 million and GAAP diluted EPS decreased 53% to $1.08.
The balance sheet reported $493.0 million of cash as of September 30, 2026. Convertible senior notes, net were $454,994 (in thousands), and finance lease liability was $351,533 (in thousands). The release did not report operating cash flow, free cash flow, share repurchases or dividends. The company raised FY 2026 revenue guidance including PAD Aviation to $764-$774 million, with implied annual growth of 26% to 28%, and guided to $750-$760 million excluding PAD Aviation.
The reported growth strategy centers on extending the OCS platform and building logistics capacity. During the period, TransMedics completed enrollment in ENHANCE Heart Part A, secured a continued access protocol for an additional 90 patients, received FDA IDE approvals for ENHANCE Heart Part B and DENOVO Lung, and won its first European transplant logistics tender in Italy. Management also cited planned OCS NOP launches in Italy, the Netherlands and Belgium and stated that OCS Kidney remains on track for first-in-human clinical experience in the second half of 2027. Execution against these programs, the service-revenue mix, PAD Aviation integration and margin performance are the central reported items to monitor.
Management, verbatim
The third quarter of 2026 was the strongest in TransMedics’ history, with record revenue and record case volume. Importantly, we delivered these results despite typical third quarter seasonality and before any contribution from ENHANCE Part B or DENOVO.
Waleed Hassanein, MD, President and Chief Executive Officer
We enter 2027 with strong momentum and a robust set of growth catalysts. ENHANCE Heart Part B and DENOVO Lung target large, untapped heart and lung segments, with two shots on goal in each through OCS and CHOPS.
Waleed Hassanein, MD, President and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported financial metrics
- Operating cash flow
- Free cash flow
- Capital expenditures
- Share repurchases
- Dividends
- FY 2026 gross margin guidance
- FY 2026 operating expense guidance
- FY 2026 tax-rate guidance
- Previous-release outlook for comparison of actual results with prior guidance
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
TransMedics Group reported Q3 2026 results with record revenue and announced raised full-year guidance.
Ticker impact
issued guidance raising full-year 2026 revenue guidance to $764-$774 million
potential upside as market prices in raised guidance
Revenue guidance increase of 2-3% above prior range signals growth momentum and may attract buyers
Market effects
stronger demand for organ transplant technologies may benefit related med‑tech peers
positive for US biotech and medical device sector
enhances outlook for global transplant logistics and organ preservation market
Counterpoint
Guidance raise may already be priced in; upside limited if execution risks materialize
Key entities
- companyTransMedics Group, Inc.
Medical technology firm focused on organ transplant solutions
