Revenue growth decelerated from 133.1% in 2024Q1 to 20.7% in 2026Q2, while gross margin remained resilient at 59.6% in 2026Q2, though operating margin fell to 12.5% from a 23.2% peak in 2025Q2.
TransMedics Group, Inc. (TMDX) annual income statement — 10-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 |
|---|
| Sales/Revenue | 668.47M | 605.49M | 441.54M | 241.62M | 93.46M | 30.26M | 25.64M | 23.6M | 13.02M | 7.68M | 6.21M |
| Revenue Growth % | 25.82% | 37.13% | 82.74% | 158.53% | 208.83% | 18.03% | 8.62% | 81.33% | 69.38% | 23.77% | - |
| Cost of Goods Sold | 276.12M | 242.69M | 179.46M | 87.53M | 28.19M | 9.1M | 9M | 9.74M | 7.28M | 5.55M | 5.44M |
| COGS % of Revenue | - | 40.08% | 40.64% | 36.23% | 30.16% | 30.08% | 35.12% | 41.27% | 55.95% | 72.19% | 87.66% |
| Gross Profit | 392.35M | 362.81M | 262.08M | 154.09M | 65.27M | 21.16M | 16.64M | 13.86M | 5.73M | 2.14M | 766K |
| Gross Margin % | 58.69% | 59.92% | 59.36% | 63.77% | 69.84% | 69.92% | 64.88% | 58.73% | 44.05% | 27.81% | 12.34% |
| Gross Profit Growth % | - | 38.43% | 70.08% | 136.08% | 208.48% | 27.2% | 20% | 141.77% | 168.32% | 178.98% | - |
| Operating Expenses | 310.74M | 254.22M | 224.59M | 182.82M | 96.71M | 60.59M | 43.02M | 43.47M | 25.97M | 22.56M | 23.75M |
| OpEx % of Revenue | - | 41.99% | 50.86% | 75.66% | 103.48% | 200.21% | 167.79% | 184.15% | 199.52% | 293.6% | 382.54% |
| Selling, General & Admin | 212.21M | 185.17M | 168.62M | 119.55M | 69.9M | 38.28M | 24.19M | 23.6M | 12.31M | 7.61M | 8.12M |
| SG&A % of Revenue | - | 30.58% | 38.19% | 49.48% | 74.79% | 126.51% | 94.34% | 99.97% | 94.61% | 98.97% | 130.7% |
| Research & Development | 92.47M | 69.06M | 55.97M | 63.27M | 26.81M | 22.3M | 18.83M | 19.87M | 13.66M | 14.96M | 15.64M |
| R&D % of Revenue | - | 11.4% | 12.68% | 26.18% | 28.69% | 73.7% | 73.45% | 84.18% | 104.91% | 194.63% | 251.84% |
| Other Operating Expenses | 1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -213K | 0 | 5K |
| Operating Income | 81.61M | 108.58M | 37.5M | -28.73M | -31.44M | -39.43M | -26.38M | -29.6M | -20.24M | -20.43M | -22.99M |
| Operating Margin % | 12.21% | 17.93% | 8.49% | -11.89% | -33.64% | -130.29% | -102.91% | -125.42% | -155.47% | -265.79% | -370.2% |
| Operating Income Growth % | - | 189.59% | 230.53% | 8.62% | 20.27% | -49.44% | 10.87% | -46.28% | 0.93% | 11.14% | - |
| EBITDA | 110.68M | 135.77M | 57.25M | -20.55M | -27.96M | -37.61M | -24.81M | -28.38M | -19.47M | -19.8M | -22.56M |
| EBITDA Margin % | 16.56% | 22.42% | 12.97% | -8.51% | -29.92% | -124.28% | -96.75% | -120.24% | -149.56% | -257.59% | -363.34% |
| EBITDA Growth % | 10.35% | 137.13% | 378.61% | 26.5% | 25.66% | -51.61% | 12.59% | -45.78% | 1.66% | 12.25% | - |
| D&A (Non-Cash Add-back) | 26.18M | 27.18M | 19.76M | 8.18M | 3.48M | 1.82M | 1.58M | 1.22M | 769K | 630K | 426K |
| EBIT | 93.79M | 121.3M | 50.19M | -15.88M | -32.44M | -40.3M | -24.73M | -29.15M | -21M | -19.72M | -23.09M |
| Net Interest Income | -15.39M | -13.78M | -14.41M | 1.71M | -2.83M | -3.87M | -2.33M | -3.56M | -2.42M | -524K | -974K |
| Interest Income | 5.85M | 0 | 0 | 12.5M | 900K | 0 | 1.65M | 790K | 0 | 548K | 5K |
| Interest Expense | 21.24M | 13.78M | 14.41M | 10.79M | 3.73M | 3.87M | 3.98M | 4.35M | 2.42M | 1.07M | 979K |
| Other Income/Expense | -9.05M | -1.06M | -1.72M | 2.06M | -4.73M | -4.75M | -2.33M | -3.9M | -3.48M | -365K | -1.08M |
| Pretax Income | 72.55M | 107.52M | 35.78M | -26.67M | -36.16M | -44.18M | -28.72M | -33.51M | -23.71M | -20.79M | -24.07M |
| Pretax Margin % | 10.85% | 17.76% | 8.1% | -11.04% | -38.7% | -145.99% | -112% | -141.95% | -182.18% | -270.54% | -387.58% |
| Income Tax | -79.14M | -82.77M | 316K | -1.64M | 66K | 36K | 32K | 40K | 41K | 32K | 0 |
| Effective Tax Rate % | -109.08% | -76.98% | 0.88% | 6.16% | -0.18% | -0.08% | -0.11% | -0.12% | -0.17% | -0.15% | 0% |
| Net Income | 151.7M | 190.29M | 35.46M | -25.03M | -36.23M | -44.22M | -28.75M | -33.55M | -23.76M | -20.82M | -24.07M |
| Net Margin % | 22.69% | 31.43% | 8.03% | -10.36% | -38.77% | -146.11% | -112.13% | -142.12% | -182.5% | -270.96% | -387.58% |
| Net Income Growth % | 111.69% | 436.58% | 241.7% | 30.92% | 18.06% | -53.8% | 14.31% | -41.21% | -14.09% | 13.47% | - |
| Net Income (Continuing) | 151.7M | 190.29M | 35.46M | -25.03M | -36.23M | -44.22M | -28.75M | -33.55M | -23.76M | -20.82M | -24.07M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 3.73 | 4.87 | 1.01 | -0.77 | -1.23 | -1.60 | -1.16 | -2.36 | -1.23 | -1.44 | -1.66 |
| EPS Growth % | 100% | 382.18% | 231.17% | 37.4% | 23.13% | -37.93% | 50.85% | -91.87% | 14.58% | 13.25% | - |
| EPS (Basic) | - | 5.60 | 1.07 | -0.77 | -1.23 | -1.60 | -1.16 | -2.36 | -1.23 | -1.44 | -1.66 |
| Diluted Shares Outstanding | 40.71M | 40.54M | 35.22M | 32.52M | 29.56M | 27.62M | 24.7M | 14.2M | 19.25M | 14.48M | 14.48M |
| Basic Shares Outstanding | 34.58M | 33.99M | 33.23M | 32.52M | 29.56M | 27.62M | 24.7M | 14.2M | 19.25M | 14.48M | 14.48M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying TMDX stock.
For fiscal year 2025, TransMedics Group, Inc. (TMDX) reported total revenue of $605.5M. This represents a 9651.9% increase compared to $6.2M in 2016.
TransMedics Group, Inc. (TMDX) is profitable, generating $190.3M in net income for the fiscal year ending 2025 with a net profit margin of 31.4%.
TransMedics Group, Inc. (TMDX) reported an operating income of $108.6M, resulting in an operating profit margin of 17.9%. This margin reflects the operational efficiency of the business before interest and taxes.
TransMedics Group, Inc. (TMDX) generated $362.8M in gross profit for the year, representing a gross profit margin of 59.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Revenue growth deceleration and margin volatility
Metrics are mathematically derived from official filings.
Growth Deceleration Amidst Expansion
Revenue growth slowed from 133.1% in 2024Q1 to 20.7% in 2026Q2, per reported financials, indicating a maturing base and potential market saturation.
The sequential deceleration from triple-digit to low-twenties growth suggests the company is transitioning from hypergrowth to a more normalized phase. While absolute revenue continues to climb, the pace of expansion is clearly moderating, which may reflect increased competition or market penetration limits. Investors should monitor whether this trend stabilizes or further decelerates.
Gross Margin Resilience with Fluctuations
Gross margin hovered between 55.9% and 61.8% over the past ten quarters, with recent quarters around 59%, as per income statement data, indicating stable pricing power.
Despite revenue growth fluctuations, gross margin has remained relatively stable, suggesting the company maintains pricing power and cost control. The slight dip in 2024Q3 to 55.9% and recovery to 59.6% in 2026Q2 may indicate temporary cost pressures or product mix shifts. This stability is a positive sign for profitability sustainability.
Operating Leverage Inconsistent
Operating margin swung from 3.6% in 2024Q3 to 23.2% in 2025Q2, then fell to 12.5% in 2026Q2, per reported figures, showing limited operating leverage.
The wide range in operating margin suggests that operating expenses, particularly R&D and SG&A, are not scaling proportionally with revenue. The spike in R&D spending in 2026Q2 (31.6M vs. 15.3M in 2025Q3) indicates increased investment, which may be strategic but pressures near-term profitability. This inconsistency implies that the company has not yet achieved stable operating leverage.
Earnings Quality Clouded by One-Time Items
Net income in 2025Q4 surged to $105.4M with EPS of $2.59, far exceeding operating income of $21.3M, per financial statements, suggesting non-operating gains.
The massive gap between operating income and net income in 2025Q4 indicates a significant one-time tax benefit or other non-operating items, which inflates reported earnings. Excluding this, normalized earnings are much lower, as seen in other quarters. Investors should adjust for such anomalies when assessing underlying profitability.
R&D Investment Surge Pressures Margins
R&D expenses jumped from $15.3M in 2025Q3 to $31.6M in 2026Q2, a 106% increase, as per income statement data, while SG&A grew modestly, indicating a strategic pivot.
The sharp rise in R&D spending suggests management is prioritizing product development and innovation, which may be necessary for long-term growth but compresses operating margins in the near term. SG&A has also increased but at a slower pace, indicating some cost discipline. This investment phase could lead to future revenue opportunities but requires monitoring for ROI.
2025Q2 Operational Peak
Operating margin peaked at 23.2% in 2025Q2 with revenue of $157.4M, per reported figures, marking the highest profitability before a subsequent decline.
The second quarter of 2025 appears to be an inflection point where the company achieved its best operating efficiency, likely due to revenue scale and controlled expenses. However, subsequent quarters show a decline in operating margin, driven by increased R&D and SG&A spending. This suggests that the company may have shifted from a profitability focus to a growth investment phase, which could impact near-term earnings.
What Could Invalidate the Base Case
The sharp deceleration in revenue growth and volatile margins, with operating margin swinging from 23.2% to 7.6% in recent quarters, per reported data, may signal unsustainable momentum.
Short-sellers might argue that the company's growth is decelerating faster than expected, and the recent R&D spending surge could fail to generate commensurate returns, leading to prolonged margin compression. The reliance on one-time items in 2025Q4 to boost net income raises questions about the quality of earnings. If revenue growth continues to slow and margins remain under pressure, the current valuation could be at risk.