TransMedics Group (TMDX) Q3 2026 earnings summary

Executive summary

• Q3 2026 revenue reached $203.0M, up 41.1% YoY; organic revenue was $193.6M, up 34.6% excluding PAD Aviation.

• Record revenue and case volume were achieved despite typical Q3 seasonality and a 6% decline in U.S. deceased-donor volume; growth reflected Liver and Heart NOP volumes, logistics services and PAD Aviation.

• FY 2026 revenue guidance increased to $764M-$774M, with no meaningful incremental Q4 revenue assumed from ENHANCE Heart Part B or DENOVO Lung.

Financial highlights

• Q3 product revenue was $113.4M, up 29.4% YoY; service revenue was $89.6M, up 59.6%.

• Gross profit was $118.7M and gross margin was 58.5%, versus 58.8% a year earlier; operating expenses were $90.5M versus $61.3M.

• GAAP net income was $17.1M versus $24.3M, and diluted EPS was $0.46 versus $0.66; adjusted net income was $18.9M and adjusted diluted EPS was $0.51.

• Operating income was $28.1M versus $23.3M; adjusted operating income was $28.9M versus $23.6M.

• Nine-month revenue rose 27.5% to $566.9M; net income fell to $39.1M from $84.9M.

Outlook and guidance

• FY 2026 revenue guidance increased to $764M-$774M, representing 26%-28% YoY growth and including ~$14M from PAD Aviation; excluding PAD, guidance is $750M-$760M.

• Guidance assumes continued growth in organ utilization and OCS adoption, with no incremental revenue from ENHANCE Part B or DENOVO trials.

• FY 2026 adjusted operating margin guidance remains 12.5%-14%; gross margin is expected to stay near current levels in the near to medium term.

• ENHANCE Heart Part B and DENOVO Lung are expected to be catalysts beginning Q1 2027; first-in-human OCS Kidney experience is targeted for H2 2027.