Company Announcements

Three Months Ended March 31,

2026

2025

% Change

Revenue

$

173,933

$

143,537

21

%

Income from operations

$

13,297

$

27,443

-52

%

Operating margin %

7.6

%

19.1

%

-1147bps

Adjusted income from operations⁽¹⁾

$

18,109

$

29,801

-39

%

Adjusted operating margin % ⁽¹⁾

10.4

%

20.7

%

-1030bps

Diluted net income per share

$

0.20

$

0.70

-71

%

Adjusted diluted net income per share⁽¹⁾

$

0.30

$

0.74

-59

%

TransMedics Group, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)

Three Months Ended March 31,

2026

2025

Revenue:

Net product revenue

$

107,972

$

88,234

Service revenue

65,961

55,303

Total revenue

173,933

143,537

Cost of revenue:

Cost of net product revenue

24,308

16,312

Cost of service revenue

48,464

38,997

Total cost of revenue

72,772

55,309

Gross profit

101,161

88,228

Gross margin

58

%

61

%

Operating expenses:

Research, development and clinical trials

24,879

17,160

Selling, general and administrative

62,985

43,625

Total operating expenses

87,864

60,785

Income from operations

13,297

27,443

Other income (expense):

Interest expense

(7,170)

(3,461)

Interest income and other income (expense), net

2,358

2,694

Total other expense, net

(4,812)

(767)

Income before income taxes

8,485

26,676

Provision for income taxes

(1,170)

(994)

Net income

$

7,315

$

25,682

Net income per share:

Basic

$

0.21

$

0.76

Diluted

$

0.20

$

0.70

Weighted average common shares outstanding:

Basic

34,384,207

33,721,603

Diluted

36,194,023

39,914,487

TransMedics Group, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)

March 31,

December 31,

2026

2025

Assets

Current assets:

Cash

$

461,739

$

488,366

Accounts receivable

90,727

84,282

Inventory

49,890

48,881

Prepaid expenses and other current assets

16,924

16,254

           Total current assets

619,280

637,783

Property, plant and equipment, net

361,571

327,656

Finance lease right-of-use assets, net

334,545

—

Operating lease right-of-use assets, net

4,858

5,155

Deferred tax assets

82,476

83,543

Restricted cash

18,438

500

Goodwill

11,549

11,549

Acquired intangible assets, net

—

1,948

Other non-current assets

2,103

239

           Total assets

$

1,434,820

$

1,068,373

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

$

11,151

$

10,350

Accrued expenses and other current liabilities

59,316

62,740

Current portion of long-term debt

15,000

10,000

Deferred revenue

2,945

2,905

Operating lease liabilities

3,508

3,310

Total current liabilities

91,920

89,305

Convertible senior notes, net

453,530

452,804

Long-term debt, net

44,665

49,587

Finance lease liability

343,829

—

Operating lease liabilities, net of current portion

2,883

3,577

Other long-term liabilities

3,986

—

    Total liabilities

940,813

595,273

    Total stockholders' equity

494,007

473,100

    Total liabilities and stockholders' equity

$

1,434,820

$

1,068,373

TransMedics Group, Inc.

NON-GAAP INCOME FROM OPERATIONS, NET INCOME AND DILUTED NET INCOME PER SHARE
RECONCILIATIONS

(dollars in thousands, except per share)

(unaudited)

Three Months Ended March 31, 2026

Income from
Operations

Operating
Margin %

Net Income

Diluted Net 
Income per
Common Share

Reported

$

13,297

7.6

%

$

7,315

$

0.20

Non-GAAP adjustments:

Incremental amortization of acquired
   intangible assets⁽¹⁾

1,898

1.1

%

1,418

0.04

Transaction-related costs⁽²⁾

2,707

1.6

%

2,023

0.06

Headquarters relocation costs⁽³⁾

207

0.1

%

155

0.00

Adjusted

$

18,109

10.4

%

$

10,911

$

0.30

Three Months Ended March 31, 2025

Income from
Operations

Operating
Margin %

Net Income

Diluted Net
Income per
Common Share

Reported

$

27,443

19.1

%

$

25,682

$

0.70

Non-GAAP adjustments:

Legal matters⁽⁴⁾

2,358

1.6

%

1,759

0.04

Adjusted

$

29,801

20.7

%

$

27,441

$

0.74

(1)

Incremental amortization of acquired intangible assets – We record intangible assets acquired in a business combination or asset acquisition at acquisition date fair values and amortize over their estimated useful lives. These adjustments reflect non-cash charges related to incremental amortization of acquired intangible assets, resulting from periodic reassessments of estimated economic lives. These amounts are excluded as they relate to discrete, non-routine activities rather than the Company's ongoing operations and therefore are not considered indicative of normal operating costs.

(2)

Transaction-related costs – These adjustments primarily reflect direct and incremental costs incurred in connection with strategic initiatives and corporate development activities, and may include due diligence, deal fees, integration and other fees and costs related to transactions. The Company excludes only costs that are directly attributable to individually identifiable transactions that have progressed beyond preliminary evaluation, including those for which formal internal approvals have been obtained or third-party advisors have been engaged. Exploratory and other ongoing corporate development and strategy-related operating expenses are not excluded. Excluded costs are associated with discrete transaction events and are not reflective of the Company's core operating performance, although similar costs may be incurred in future periods.

(3)

Headquarter relocation costs – These adjustments reflect primarily direct and incremental third-party professional fees, including valuation, accounting, and advisory services, incurred in connection with the Company's relocation of its headquarters to Somerville, Massachusetts. These costs may also include incremental depreciation of fixed assets resulting from reassessments of estimated economic lives in consideration of the relocation.  The Company excludes only costs that are directly attributable to the relocation event and does not exclude ongoing occupancy, personnel, or other recurring operating expenses associated with the new headquarters.

(4)

Legal matters - These adjustments reflect legal fees and other directly attributable costs incurred in connection with responding to and addressing matters arising from the short-seller report issued in January 2025. Such costs may include external legal counsel, advisory services, and other incremental expenses necessary to evaluate and defend against the claims. The Company excludes only costs that are specifically associated with this discrete event and does not exclude ongoing legal expenses related to normal business operations. These costs are excluded as they are non-recurring in nature and not indicative of the Company's core operating performance, although similar costs could arise in future periods.