TransMedics Group (TMDX) Canaccord Genuity's 46th Annual Growth Conference summary

Strategic Overview and Business Model

• Developed a five-layer moat with proprietary technology, national logistics, and digital platforms to transform organ transplantation and maximize organ utilization in the U.S.

• Vertically integrated model features 20 clinical hubs, 22 dedicated aircraft, 140+ pilots, 50+ procurement surgeons, 250+ clinical specialists, and a digital command center for stakeholder visibility.

• Purpose-built digital ecosystem (NOP Connect) enables real-time case tracking, logistics optimization, and automated scheduling.

• Added donor and recipient screening as of July 1, making the platform essential for major transplant institutions.

• OCS platform covers three FDA-approved organs (heart, lung, liver), with kidney in development for clinical launch in H2 2027.

Growth Initiatives and Market Expansion

• Four growth initiatives: increasing heart and lung adoption, launching the OCS kidney program, expanding into Europe, and developing next-gen OCS 3.0.

• Kidney program targets the largest transplant segment, aiming to access up to 30,000 annual procedures and reduce CMS costs by billions.

• U.S. and EU expansion nearly doubles the addressable market, leveraging a proven national operating model and aiming to preempt inferior technologies.

• Next-gen OCS 3.0 will be scalable, cloud-based, sensor-integrated, and supply chain independent, driving operating leverage and cost efficiency.

• Strategic investments in growth initiatives are expected to drive top-line potential north of $2 billion, possibly up to $3 billion.

Financial Performance and Guidance

• Achieved 86% CAGR since FY22, with a $140M swing to profitability and breakeven reached in FY24.

• Revenue grew from $94M in FY22 to $605M projected for FY25, with $737–$757 million projected for the year and 22–25% YoY growth expected in FY26.

• Adjusted operating income turned positive in FY24 and is projected to expand further in FY25.

• Maintains target of 10,000 transplants and 30% operating margin by 2028, with current guidance at 12.5–14% for this year due to kidney program investments.

• Cash and cash equivalents reached $472.7M as of June 30, 2026, supporting ongoing growth initiatives.