TransMedics Group Reports 37.7% Revenue Growth to $157.4 Million in Latest Quarter

TransMedics Group, Inc. reported significant financial growth in its latest quarterly filing, with total revenue reaching $157.4 million for the three months ended June 30, 2025, a 37.7% increase from $114.3 million in the same period last year. For the first half of 2025, revenue totaled $300.9 million, up from $211.2 million in the prior year. The company achieved a net income of $34.9 million for the second quarter, compared to $12.2 million in the same quarter of 2024, and a net income of $60.6 million for the first half of 2025, up from $24.4 million in the previous year.

The increase in revenue was driven by a rise in both product and service sales, with net product revenue increasing to $96.1 million from $71.7 million year-over-year, and service revenue growing to $61.3 million from $42.6 million. The company attributed this growth to higher sales volumes of its Organ Care System (OCS) products, particularly for liver and heart transplants, as well as increased utilization of its National OCS Program (NOP) for organ procurement and logistics services. The gross profit for the second quarter was $96.6 million, resulting in a gross margin of 61%, consistent with the previous year.

In terms of operational developments, TransMedics has expanded its workforce and capabilities, with a focus on enhancing its commercial team and logistics operations. The company reported an increase in employee headcount, which is expected to support its growth strategy. Additionally, TransMedics is in the process of constructing a new design center and manufacturing facility in Mirandola, Italy, aimed at supporting the development of its next-generation OCS technology platform. This facility is expected to enhance production capacity and flexibility for international customers.

The company’s balance sheet reflects a strong liquidity position, with cash and restricted cash totaling $401.1 million as of June 30, 2025, compared to $363.3 million at the end of 2024. Total assets increased to $890.5 million, up from $804.1 million, while total liabilities decreased slightly to $572.4 million. The company’s accumulated deficit has narrowed to $407.7 million, down from $468.2 million at the end of 2024, indicating improved financial health.

Looking ahead, TransMedics anticipates continued revenue growth driven by the expansion of its NOP and increased adoption of its OCS products in both domestic and international markets. However, the company acknowledges potential risks, including market competition and the need for additional funding to support ongoing operations and product development. Management believes that existing cash reserves will be sufficient to fund operations for at least the next 12 months, but may seek additional financing to support its growth initiatives.