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1. Company Snapshot

1.a. Company Description

TransMedics Group, Inc., a commercial-stage medical technology company, engages in transforming organ transplant therapy for end-stage organ failure patients in the United States and internationally.The company offers Organ Care System (OCS), a portable organ perfusion, optimization, and monitoring system that utilizes its proprietary and customized technology to replicate near-physiologic conditions for donor organs outside of the human body.Its Organ Care System includes OCS LUNG for the preservation of standard criteria donor lungs for double-lung transplantation; OCS Heart, a technology for extracorporeal perfusion and preservation of donor hearts; and OCS Liver for the preservation of donor livers.


The company was founded in 1998 and is headquartered in Andover, Massachusetts.

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1.b. Last Insights on TMDX

Breaking News: TransMedics Group Inc is poised for growth as it prepares to expand into Italy. The company also has significant room for expansion in the US market. According to a recent analysis, TransMedics Group is identified as a top stock to buy in December. Analysts recommend a buy based on the company's growth potential. The company has not released recent earnings data. TransMedics Group's expansion plans and growth prospects make it an attractive investment opportunity. This view is shared by analysts who include it in their list of top stocks to buy.

1.c. Company Highlights

2. TransMedics' Q3 2025 Earnings: Strong Revenue Growth and Expanding Margins

TransMedics reported a robust third-quarter 2025 performance, with total revenue reaching $143.8 million, representing a 32.2% year-over-year growth. The company's revenue growth was driven by a 41% increase in liver revenue, 14% in heart revenue, and 5% in lung revenues. Gross margins for the quarter were approximately 59%, a 2.9% increase year-over-year. The company also reported an operating profit of $23.3 million, or 16% of total revenue, up from $3.9 million or 4% of total revenue in Q3 2024. Earnings per share (EPS) came in at $0.66, significantly beating estimates of $0.37.

Publication Date: Nov -03

📋 Highlights
  • Revenue Growth:: Q3 2025 revenue hit $143.8M (+32.2% YoY), driven by 41% liver, 14% heart, and 5% lung revenue increases.
  • Operating Profit Surge:: Operating profit rose to $23.3M (16% of revenue) from $3.9M (4% of revenue) in Q3 2024.
  • Cash Position:: Generated $65.6M in cash, ending Q3 with $466.2M in cash reserves.
  • International Expansion:: Launched first OUS NOP program in Italy and plans EU air/ground logistics network, targeting mid-80s logistics penetration.
  • Guidance & Margin Goals:: Narrowed 2025 revenue guidance to $595–$605M (+36% YoY) and targets 750 bps operating margin expansion, aiming for 30% margins by 2028.

Revenue Growth Drivers

The company's transplant logistics service revenue grew 35% year-over-year to $27.2 million, driven by the expansion of its aircraft fleet, with 21 aircraft operated during the quarter and a 22nd aircraft added in October. TransMedics is also making progress in its Next-Gen OCS ENHANCE Heart and DENOVO Lung clinical programs, with patient enrollment expected to start in Q4 2025.

Guidance and Outlook

For the full year 2025, TransMedics narrowed its revenue guidance to a range of $595 million to $605 million, representing approximately 36% growth over 2024 at the midpoint. The company expects gross margins to remain around 60% in the coming years and is focused on driving long-term value through investments in R&D and targeted expansion into international markets. Analysts estimate next year's revenue growth at 20.5%.

Valuation Metrics

With a P/E Ratio of 48.9, P/S Ratio of 7.94, and EV/EBITDA of 36.77, the market appears to be pricing in significant growth expectations. The company's ROE of 31.42% and ROIC of 10.54% indicate strong profitability. The current valuation multiples suggest that the market has high expectations for TransMedics' future growth, and the company will need to continue delivering strong results to justify its current valuation.

Future Growth Initiatives

TransMedics is poised for continued growth, driven by its expanding clinical programs, increasing adoption of its OCS technology, and entry into new markets, including Italy, where it is launching its first out-of-the-U.S. NOP program. The company's focus on R&D and its plans to initiate new trials, including a kidney trial in 2027, are expected to drive long-term growth and increase its market share in the organ transplant market.

3. NewsRoom

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3 Top Stocks to Buy in December

Dec -02

Source: fool.com

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TransMedics Group, Inc. $TMDX Shares Acquired by Creative Planning

Nov -25

Source: defenseworld.net

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1 Growth Stock I'm Thankful for -- and the Unstoppable Stock I'm Buying Using the Lessons It Taught Me

Nov -25

Source: fool.com

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TransMedics (TMDX) Crossed Above the 50-Day Moving Average: What That Means for Investors

Nov -20

Source: zacks.com

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TransMedics (TMDX) Just Overtook the 20-Day Moving Average

Nov -20

Source: zacks.com

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TransMedics to Participate in the Piper Sandler 37th Annual Healthcare Conference

Nov -18

Source: prnewswire.com

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Envestnet Asset Management Inc. Buys 2,933 Shares of TransMedics Group, Inc. $TMDX

Nov -16

Source: defenseworld.net

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Polen U.S. Small Cap Growth Q3 2025 Portfolio Performance And Attribution

Nov -06

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.00%)

6. Segments

Liver Organ Care System

Expected Growth: 10.47%

The 10.47% growth of Liver Organ Care System from TransMedics Group, Inc. is driven by increasing demand for organ transplants, advancements in organ preservation technology, and growing adoption of ex-vivo organ perfusion. Additionally, the system's ability to improve organ quality and reduce discard rates, as well as its potential to increase the availability of organs for transplantation, contribute to its growth.

Heart Organ Care System

Expected Growth: 9.27%

The 9.27% growth of Heart Organ Care System from TransMedics Group, Inc. is driven by increasing demand for organ transplants, advancements in organ preservation technology, and growing adoption of ex-vivo organ perfusion. Additionally, the system's ability to increase organ utilization, reduce discard rates, and improve patient outcomes are key factors contributing to its growth.

Lung Organ Care System

Expected Growth: 8.5%

The 8.5% growth of Lung Organ Care System from TransMedics Group, Inc. is driven by increasing demand for lung transplants, advancements in organ preservation technology, and growing adoption of ex-vivo lung perfusion. Additionally, rising incidence of lung diseases, expanding healthcare infrastructure, and favorable reimbursement policies contribute to the growth.

7. Detailed Products

OrganEx

A portable, ex vivo organ perfusion and monitoring system designed to improve organ quality and extend preservation time for transplantation.

OCS Heart

A portable, ex vivo heart perfusion and monitoring system designed to improve heart quality and extend preservation time for transplantation.

OCS Lung

A portable, ex vivo lung perfusion and monitoring system designed to improve lung quality and extend preservation time for transplantation.

OCS Liver

A portable, ex vivo liver perfusion and monitoring system designed to improve liver quality and extend preservation time for transplantation.

8. TransMedics Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for TransMedics Group, Inc. is moderate due to the presence of alternative medical devices and treatments for organ transplantation.

Bargaining Power Of Customers

The bargaining power of customers for TransMedics Group, Inc. is low due to the specialized nature of its products and services, which limits the ability of customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers for TransMedics Group, Inc. is moderate due to the presence of multiple suppliers for raw materials and components, but the company's dependence on a few key suppliers for critical components.

Threat Of New Entrants

The threat of new entrants for TransMedics Group, Inc. is low due to the high barriers to entry, including the need for significant investment in research and development, regulatory approvals, and specialized manufacturing capabilities.

Intensity Of Rivalry

The intensity of rivalry for TransMedics Group, Inc. is high due to the presence of established competitors in the medical device industry, and the company's need to continuously innovate and improve its products to maintain market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 78.74%
Debt Cost 3.95%
Equity Weight 21.26%
Equity Cost 13.23%
WACC 5.92%
Leverage 370.43%

11. Quality Control: TransMedics Group, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Globus Medical

A-Score: 4.4/10

Value: 3.8

Growth: 6.3

Quality: 7.5

Yield: 0.0

Momentum: 2.5

Volatility: 6.0

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ShockWave Medical

A-Score: 4.0/10

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Quality: 6.9

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TransMedics

A-Score: 3.7/10

Value: 0.8

Growth: 9.0

Quality: 6.8

Yield: 0.0

Momentum: 3.5

Volatility: 2.3

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Integer

A-Score: 3.5/10

Value: 5.1

Growth: 5.1

Quality: 4.3

Yield: 0.0

Momentum: 2.0

Volatility: 4.7

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Tandem Diabetes Care

A-Score: 2.7/10

Value: 7.8

Growth: 3.6

Quality: 2.2

Yield: 0.0

Momentum: 0.5

Volatility: 2.0

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Bruker

A-Score: 2.5/10

Value: 2.3

Growth: 5.2

Quality: 3.4

Yield: 0.0

Momentum: 0.5

Volatility: 3.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

136.51$

Current Price

136.51$

Potential

-0.00%

Expected Cash-Flows