Revenue growth decelerated to 0.3% year-over-year in 2026Q2, with gross margin slipping to 74.1% and operating margin contracting to 31.2%, while EPS fell 8.9% to $0.41, missing consensus by $0.14.
IRadimed Corporation (IRMD) annual income statement — 14-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Sales/Revenue | 86.34M | 83.81M | 73.24M | 65.56M | 53.3M | 41.81M | 31.72M | 38.52M | 30.44M | 23.08M | 32.5M | 31.59M | 15.65M | 11.34M | 7.69M |
| Revenue Growth % | 11.21% | 14.43% | 11.71% | 23% | 27.47% | 31.83% | -17.65% | 26.54% | 31.88% | -28.97% | 2.86% | 101.84% | 38.03% | 47.56% | - |
| Cost of Goods Sold | 20.84M | 19.49M | 16.89M | 15.4M | 12.02M | 9.76M | 8.14M | 8.82M | 7.21M | 5.57M | 6.15M | 5.84M | 3.4M | 2.85M | 2.13M |
| COGS % of Revenue | - | 23.25% | 23.06% | 23.5% | 22.55% | 23.35% | 25.67% | 22.89% | 23.69% | 24.13% | 18.94% | 18.49% | 21.75% | 25.16% | 27.66% |
| Gross Profit | 65.5M | 64.32M | 56.35M | 50.16M | 41.28M | 32.05M | 23.57M | 29.7M | 23.23M | 17.51M | 26.34M | 25.75M | 12.25M | 8.49M | 5.56M |
| Gross Margin % | 75.86% | 76.75% | 76.94% | 76.5% | 77.45% | 76.65% | 74.33% | 77.11% | 76.31% | 75.87% | 81.06% | 81.51% | 78.25% | 74.84% | 72.34% |
| Gross Profit Growth % | - | 14.15% | 12.34% | 21.5% | 28.81% | 35.95% | -20.63% | 27.87% | 32.64% | -33.52% | 2.28% | 110.25% | 44.33% | 52.66% | - |
| Operating Expenses | 37.94M | 38.18M | 34.39M | 30.12M | 25.65M | 22.23M | 24.33M | 21.05M | 17.22M | 16.23M | 15.42M | 14.24M | 9.18M | 5.7M | 4.13M |
| OpEx % of Revenue | - | 45.55% | 46.95% | 45.95% | 48.13% | 53.17% | 76.71% | 54.66% | 56.58% | 70.3% | 47.46% | 45.07% | 58.66% | 50.26% | 53.8% |
| Selling, General & Admin | 34.86M | 35.2M | 31.55M | 27.26M | 23.38M | 20.33M | 22.43M | 19.62M | 15.71M | 14.5M | 14.07M | 12.48M | 8.11M | 4.69M | 3.48M |
| SG&A % of Revenue | - | 42% | 43.08% | 41.59% | 43.86% | 48.61% | 70.71% | 50.94% | 51.6% | 62.84% | 43.31% | 39.49% | 51.84% | 41.35% | 45.29% |
| Research & Development | 3.09M | 2.98M | 2.83M | 2.86M | 2.28M | 1.91M | 1.9M | 1.43M | 1.52M | 1.72M | 1.35M | 1.76M | 1.07M | 1.01M | 654.07K |
| R&D % of Revenue | - | 3.55% | 3.87% | 4.36% | 4.27% | 4.56% | 6% | 3.72% | 4.98% | 7.46% | 4.15% | 5.58% | 6.83% | 8.91% | 8.51% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 111.38K | 32.68K | 121.39K | -48.55K | -3.46K | 7.42K |
| Operating Income | 27.56M | 26.15M | 21.96M | 20.04M | 15.63M | 9.82M | -756.09K | 8.65M | 6M | 1.29M | 10.92M | 11.51M | 3.07M | 2.79M | 1.42M |
| Operating Margin % | 31.92% | 31.2% | 29.99% | 30.56% | 29.32% | 23.48% | -2.38% | 22.45% | 19.72% | 5.57% | 33.6% | 36.44% | 19.59% | 24.58% | 18.54% |
| Operating Income Growth % | - | 19.04% | 9.63% | 28.21% | 59.18% | 1398.48% | -108.74% | 44.03% | 367.22% | -88.23% | -5.15% | 275.52% | 10% | 95.64% | - |
| EBITDA | 29.42M | 28.53M | 22.78M | 20.8M | 16.3M | 11.22M | 582.73K | 9.89M | 6.56M | 1.73M | 11.17M | 11.74M | 3.21M | 2.93M | 1.53M |
| EBITDA Margin % | 34.07% | 34.04% | 31.11% | 31.73% | 30.58% | 26.84% | 1.84% | 25.68% | 21.56% | 7.5% | 34.37% | 37.15% | 20.54% | 25.8% | 19.92% |
| EBITDA Growth % | 17.73% | 25.22% | 9.53% | 27.62% | 45.2% | 1826.18% | -94.11% | 50.68% | 279.33% | -84.51% | -4.85% | 265.08% | 9.87% | 91.14% | - |
| D&A (Non-Cash Add-back) | 1.86M | 2.38M | 817.66K | 765.18K | 670.67K | 1.41M | 1.34M | 1.24M | 559.73K | 445.27K | 248.3K | 223.94K | 149.06K | 139.04K | 106.28K |
| EBIT | 29.25M | 28.36M | 24.28M | 21.74M | 16.18M | 9.84M | -756.09K | 8.65M | 6.2M | 1.4M | 10.95M | 11.63M | 3.02M | 2.78M | 1.43M |
| Net Interest Income | 0 | 0 | 2.19M | 1.86M | 581.85K | 34.81K | 132.19K | 388.8K | 238.11K | 122.58K | 126.42K | 148.91K | 5.7K | 0 | 0 |
| Interest Income | 0 | 0 | 2.19M | 1.86M | 581.85K | 34.81K | 132.19K | 388.8K | 238.11K | 122.58K | 126.42K | 148.91K | 5.7K | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 2.19M | 2.21M | 2.31M | 1.7M | 553.1K | 18.61K | 139.21K | 395.91K | 193.54K | 111.38K | 32.68K | 121.39K | -48.55K | -3.46K | 7.42K |
| Pretax Income | 29.75M | 28.36M | 24.28M | 21.74M | 16.18M | 9.84M | -616.88K | 9.04M | 6.2M | 1.4M | 10.95M | 11.63M | 3.02M | 2.78M | 1.43M |
| Pretax Margin % | 34.45% | 33.84% | 33.14% | 33.16% | 30.36% | 23.52% | -1.94% | 23.48% | 20.36% | 6.05% | 33.7% | 36.83% | 19.28% | 24.55% | 18.63% |
| Income Tax | 6.69M | 5.88M | 5.04M | 4.55M | 3.35M | 510.82K | -1.99M | -587.64K | -106.14K | 896.62K | 3.74M | 4.1M | 966.98K | 846.88K | 465.98K |
| Effective Tax Rate % | 22.49% | 20.74% | 20.77% | 20.91% | 20.72% | 5.19% | 321.92% | -6.5% | -1.71% | 64.21% | 34.13% | 35.28% | 32.05% | 30.42% | 32.54% |
| Net Income | 23.05M | 22.48M | 19.23M | 17.19M | 12.83M | 9.33M | 1.37M | 9.63M | 6.3M | 499.76K | 7.21M | 7.53M | 2.05M | 1.94M | 966.09K |
| Net Margin % | 26.7% | 26.82% | 26.26% | 26.22% | 24.07% | 22.3% | 4.32% | 25% | 20.71% | 2.17% | 22.2% | 23.83% | 13.1% | 17.08% | 12.57% |
| Net Income Growth % | 11.6% | 16.88% | 11.87% | 34.02% | 37.56% | 581.19% | -85.79% | 52.79% | 1161.29% | -93.07% | -4.19% | 267.25% | 5.86% | 100.49% | - |
| Net Income (Continuing) | 23.05M | 22.48M | 19.23M | 17.19M | 12.83M | 9.33M | 1.37M | 9.63M | 6.3M | 499.76K | 7.21M | 7.53M | 2.05M | 1.94M | 966.09K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.79 | 1.75 | 1.50 | 1.35 | 1.02 | 0.74 | 0.11 | 0.78 | 0.52 | 0.04 | 0.60 | 0.60 | 0.20 | 0.19 | 0.09 |
| EPS Growth % | 10.49% | 16.67% | 11.11% | 32.35% | 37.84% | 572.73% | -85.9% | 50% | 1200% | -93.33% | 0% | 200% | 5.26% | 104.74% | - |
| EPS (Basic) | - | 1.77 | 1.52 | 1.36 | 1.02 | 0.76 | 0.11 | 0.85 | 0.52 | 0.05 | 0.67 | 0.68 | 0.23 | 0.19 | 0.09 |
| Diluted Shares Outstanding | 12.87M | 12.85M | 12.78M | 12.72M | 12.64M | 12.59M | 12.44M | 12.28M | 12.11M | 11.72M | 11.99M | 12.56M | 10.22M | 10.42M | 10.42M |
| Basic Shares Outstanding | 12.78M | 12.72M | 12.67M | 12.6M | 12.56M | 12.35M | 12.12M | 11.28M | 12.11M | 10.64M | 10.82M | 11M | 8.74M | 10.42M | 10.42M |
| Dividend Payout Ratio | - | 66.9% | 71.11% | 76.91% | 97.9% | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying IRMD stock.
For fiscal year 2025, IRadimed Corporation (IRMD) reported total revenue of $83.8M. This represents a 990.6% increase compared to $7.7M in 2012.
IRadimed Corporation (IRMD) is profitable, generating $22.5M in net income for the fiscal year ending 2025 with a net profit margin of 26.8%.
IRadimed Corporation (IRMD) reported an operating income of $26.1M, resulting in an operating profit margin of 31.2%. This margin reflects the operational efficiency of the business before interest and taxes.
IRadimed Corporation (IRMD) generated $64.3M in gross profit for the year, representing a gross profit margin of 76.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
3870 launch margin compression
Metrics are mathematically derived from official filings.
Growth Steadies Amid Hardware Transition
Revenue growth decelerated to 0.3% year-over-year in 2026Q2, down from double-digit rates in prior quarters, as the 3870 pump launch likely disrupted sales momentum, according to reported financials.
The sharp slowdown in 2026Q2 revenue growth to 0.3% from 12.7% in the prior quarter suggests the transition to the 3870 platform may be causing order delays or channel digestion. While the company maintained guidance for the next quarter, the implied sequential rebound to $23.0M-$24.5M appears aggressive given the current run-rate. Investors should monitor whether the 3870 launch reaccelerates growth or if the slowdown reflects a more durable demand pause.
Gross Margin Resilience Tested by Mix Shift
Gross margin slipped to 74.1% in 2026Q2, the lowest in the reported period, from 76.5% in 2026Q1, suggesting early 3870 production costs or a less favorable product mix, as per SEC filings.
The 240 basis point sequential decline in gross margin is notable given the historical stability around 76-78%. This may indicate that the new 3870 pump carries lower initial margins due to launch discounts or higher component costs. If the margin compression persists as volume scales, it could challenge the company's premium valuation, which relies on high-margin recurring revenue. The sustainability of the 74% level is a key watch item.
Operating Leverage Falters on SG&A Spike
Operating margin contracted to 31.2% in 2026Q2 from 32.9% in 2026Q1, as SG&A rose to $8.1M while revenue fell, indicating that fixed overhead is not scaling down with the revenue dip, based on reported figures.
The sequential revenue decline of $1.5M was accompanied by only a $0.5M reduction in SG&A, causing operating leverage to work in reverse. This suggests that the company's cost structure is relatively fixed in the short term, which is typical during a product transition. If revenue does not rebound as guided, operating margins could face further pressure, but the historical 30%+ operating margin provides a cushion.
EPS Miss Clouds Earnings Quality
Diluted EPS fell 8.9% year-over-year to $0.41 in 2026Q2, missing consensus by $0.14, while stock-based compensation rose to $807K, the highest in the period, according to financial statements.
The EPS miss is particularly concerning because revenue was in line, implying the shortfall came from margins or expenses. The elevated SBC, up from $684K in the prior quarter, adds to the quality concern, as it reduces reported earnings without a corresponding cash outflow. Investors should assess whether the SBC increase is tied to the 3870 launch incentives or a broader compensation trend.
R&D Discipline Amid Launch Cycle
R&D spending dropped to $657K in 2026Q2, the lowest in the reported period, despite the 3870 launch, suggesting a deliberate cost control effort, as per the income statement data.
The reduction in R&D during a critical product launch is unusual and may indicate that the company is prioritizing near-term profitability over development. While this could be a temporary measure, it raises questions about the pipeline for future iterations. The low R&D intensity (3.2% of revenue) is typical for a mature niche player, but investors should monitor if this underinvestment leads to competitive vulnerabilities.
3870 Launch Marks Key Inflection Point
The initial shipments of the 3870 pump in 2026Q2 represent a pivotal shift from the legacy 3860 platform, with revenue growth stalling to 0.3% and margins compressing, as reported in the latest quarterly results.
This transition is the most significant operational event in the reported period, as it introduces both growth potential and execution risk. The revenue stagnation and margin dip suggest that the market is absorbing the new product, but the maintained guidance implies management expects a rapid recovery. The success of this launch will likely determine whether IRMD can sustain its historical growth and margin profile, making it a critical inflection point for the company.
What Could Invalidate the Base Case
The 3870 launch may be masking structural margin erosion, as gross margin fell to 74.1% and EPS missed by 25%, suggesting the new platform may not achieve legacy profitability, based on reported figures.
Short-sellers could argue that the EPS miss and margin compression are not transitory but signal a permanent shift to lower profitability as the 3870 platform scales. The maintained guidance may be overly optimistic, and if the next quarter fails to show the implied sequential improvement, the stock could re-rate downward. Additionally, the elevated SBC and reduced R&D spending may indicate that management is managing earnings rather than investing for long-term growth, which could undermine the quality of future earnings.