TransMedics Group (TMDX) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $189.9 million, up 21% year-over-year, driven by strong growth in OCS case volume, clinical services, and logistics.

• Net income was $14.7 million ($0.41 per diluted share), with adjusted net income at $16.2 million ($0.44 per diluted share); adjusted income from operations was $25.8 million (13.6% margin).

• Ended the quarter with $472.7 million in cash and equivalents, supporting ongoing investments in growth, R&D, and international expansion.

• Completed a strategic investment in PAD Aviation to establish a Pan-European transplant logistics network.

• Continued investment in OCS Kidney, next-generation OCS, and clinical programs to support future growth.

Financial highlights

• Product revenue was $111.2 million (+16% YoY), service revenue $78.8 million (+29% YoY), with service representing 41% of total revenue.

• Gross margin was 60% (down from 61% YoY), with product gross margin at 77% and service margin improving to 35%.

• Adjusted operating margin was 13.6% (down from 23.2% YoY); adjusted net income margin was 8.5%.

• Operating expenses increased sharply, with R&D up 99% YoY to $31.6 million and SG&A up 31% YoY to $57.8 million.

• Adjusted diluted EPS was $0.44, down from $0.92 YoY.

Outlook and guidance

• Raised full-year 2026 revenue guidance (excluding PAD Aviation) to $737–$757 million, representing 22–25% growth over 2025.

• Guidance excludes PAD Aviation revenue and assumes no meaningful incremental revenue from ENHANCE Part B, DENOVO, or other ongoing clinical trials.

• Full-year adjusted operating margin (excluding PAD Aviation) expected at 12.5–14%, with gross margin for H2 2026 at approximately 59%.

• Effective tax rate for 2026 expected between 25% and 27%.