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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 has shown significant growth with its shares rising eightfold since 2019. The company remains a top player in its industry with a potential widening moat. It controls a life-critical logistics network making it a solid investment in its sector. Some analysts view TransMedics as one of the top stocks for long-term investors to buy. The company is described as having a strong position with founder-led management. No recent earnings release data available. Recommendation to buy given by some analysts.

1.c. Company Highlights

2. TransMedics' Q4 2025 Earnings: Strong Growth and Expanding Profitability

TransMedics reported a robust fourth quarter 2025, with total revenue reaching $160.8 million, representing a 32% year-over-year growth and 12% sequential growth. The company's U.S. transplant revenue grew 11% sequentially to $155 million, while international transplant revenue grew 33% sequentially to $5 million. The operating profit was $21.3 million, accounting for 13.2% of total revenue. Earnings per share (EPS) came in at $3.08, with diluted EPS at $2.62. Gerardo Hernandez, Chief Financial Officer, highlighted that the company sustained strong momentum through the fourth quarter, driven by continued growth and scalability.

Publication Date: Feb -26

📋 Highlights
  • Revenue Growth:: Q4 2025 revenue reached $160.8M (32% YoY, 12% sequential), with full-year revenue hitting $605.5M (37% YoY growth).<br>
  • Operating Profit Expansion:: Q4 operating profit of $21.3M (13.2% margin), rising to $108.6M for 2025 (18% of total revenue).<br>
  • Transplant Logistics Growth:: Transplant logistics revenue surged 32% YoY to $28.6M, driven by OCS adoption and service scalability.<br>
  • Transplant Volumes:: U.S. OCS transplants jumped to 5,139 in 2025 (26% of total U.S. transplants), up 26% from 3,735 in 2024.<br>
  • 2026 Guidance:: Revenue projected at $727–$757M (20–25% YoY growth), supported by OCS ENHANCE, DENOVO, and international expansion.<br>

Revenue Growth and Segment Performance

For the full year 2025, TransMedics achieved total revenue of $605.5 million, marking a 37% year-over-year growth. U.S. transplant revenue grew 38.6% year-over-year, while international transplant revenue grew 9.3%. The company's OCS transplant volumes increased, with 5,139 total U.S. OCS transplants performed in 2025, up from 3,735 in 2024, representing approximately 26% of the total U.S. transplants for the year. The transplant logistics service revenue grew 32% year-over-year to $28.6 million.

Profitability and Margin Expansion

The company's gross margin for the full year was 59.9%, up from 59.4% in 2024, reflecting logistics efficiencies and scale benefits. Operating expenses were $254 million, up 13% year-over-year, driven by a 23% increase in R&D investments. Operating margin expanded from 8.5% in 2024 to 18% in 2025. Net profit for the year was $190 million, compared to approximately $36 million in 2024. The company ended the year with $488 million in cash, driven by strong operating cash generation and disciplined working capital management.

Outlook and Valuation

TransMedics is guiding for revenue growth of 20% to 25% in 2026, driven by increased order utilization, continued OCS adoption, and expansion of service revenue. The company's gross margin is expected to remain around 60% over the long term. With a current P/E Ratio of 23.71 and P/S Ratio of 7.44, the market is pricing in significant growth expectations. The company's ROE is 53.88%, indicating strong profitability. Analysts estimate next year's revenue growth at 17.5%, slightly below the company's guidance.

Investment Drivers and Risks

The company's investments in R&D, particularly in the OCS ENHANCE and DENOVO programs, are expected to drive long-term growth. However, these investments are also expected to pressure operating margins in the near term. The company expects operating margins to approach 30% by 2028. Waleed Hassanein addressed concerns about the competitive landscape, stating that they have a plan to address issues in the Part B of the ENHANCE trial and will work with transplant programs to find an acceptable control arm for the FDA.

3. NewsRoom

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TransMedics: Numb Reaction To Extraordinary Fundamentals

Mar -09

Source: seekingalpha.com

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Royce Small-Cap Fund FY 2025: What Worked

Mar -09

Source: seekingalpha.com

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TransMedics Stock Is Up 104% Over the Last Year: Is It Too Late to Buy for 2026?

Mar -08

Source: fool.com

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4 Top Stocks Long-Term Investors Should Buy in March

Mar -08

Source: fool.com

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Medical Stock Nears Buy Point Amid Liver Transplant Demand Surge

Mar -05

Source: investors.com

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Got $5,000? TransMedics Could Be a High‑Tech Organ Transplant Moonshot

Feb -28

Source: fool.com

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TransMedics Provides Additional Information on the Impact of the Release of the Valuation Allowance on Deferred Tax Assets on Previously Reported Fourth Quarter Financial Results

Feb -27

Source: prnewswire.com

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TMDX Stock Rises as Q4 Earnings & Revenues Beat Estimates

Feb -25

Source: zacks.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

Stock-Card
TransMedics

A-Score: 4.8/10

Value: 1.0

Growth: 9.0

Quality: 6.7

Yield: 0.0

Momentum: 9.5

Volatility: 2.7

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Globus Medical

A-Score: 4.4/10

Value: 3.0

Growth: 6.3

Quality: 7.2

Yield: 0.0

Momentum: 6.0

Volatility: 3.7

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ShockWave Medical

A-Score: 4.2/10

Value: 0.0

Growth: 9.7

Quality: 7.1

Yield: 0.0

Momentum: 6.0

Volatility: 2.7

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Bruker

A-Score: 3.5/10

Value: 5.9

Growth: 5.2

Quality: 2.9

Yield: 0.0

Momentum: 3.0

Volatility: 4.0

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Integer

A-Score: 3.2/10

Value: 4.5

Growth: 5.1

Quality: 4.7

Yield: 0.0

Momentum: 0.5

Volatility: 4.7

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Tandem Diabetes Care

A-Score: 3.1/10

Value: 7.2

Growth: 3.6

Quality: 3.6

Yield: 0.0

Momentum: 2.0

Volatility: 2.0

1-Year Total Return ->

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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

130.85$

Current Price

130.85$

Potential

-0.00%

Expected Cash-Flows