TransMedics Group reported first-quarter 2026 revenue of $173.9 million, up 21% from $143.5 million a year earlier, as higher utilization of its organ care system in liver and heart transplant programs and additional logistics revenue drove the top line.
Operating income fell to $13.3 million from $27.4 million in the prior-year quarter, a drop of 52%. Operating margin narrowed to 7.6% from 19.1%, a decline of 1,147 basis points.
Operating expenses climbed to $87.9 million from $60.8 million, an increase of 45%, reflecting heavier research and development spending and broader organizational investment. Stock compensation expense rose to $9.6 million from $8.7 million.
Gross margin slipped to 58% from 61% a year ago.
Net income was $7.3 million, or $0.20 per diluted share, down from $25.7 million, or $0.70 per diluted share, in the first quarter of 2025. Adjusted net income came in at $10.9 million, or $0.30 per diluted share, compared with $27.4 million, or $0.74 per diluted share a year earlier.
Adjusted income from operations declined to $18.1 million from $29.8 million, while adjusted operating margin fell to 10.4% from 20.7%.
Cash and equivalents stood at $461.7 million at March 31, 2026.
The company reiterated full-year 2026 revenue guidance of $727 million to $757 million, implying growth of 20% to 25% from the prior year. Today the company's shares have moved -1.17% to a price of $95.94. Check out the company's full 8-K submission here.
