Transmedics

Revenue jumped 21 percent this quarter to 173.9 million dollars, driven by more hospitals using their organ system for liver and heart transplants. Management is sticking with full year guidance of 727 to 757 million dollars, which means they expect to grow another 20 to 25 percent for the year. They also ended the quarter with 461.7 million dollars in cash, plenty of fuel to keep expanding.

They just signed a deal to invest in PAD Aviation, a German private jet operator, to build the first dedicated organ transport network across Europe. They now own 22 aircraft and unveiled a new preservation system called CHOPS to speed up their heart and lung clinical trials. Each of these moves opens a brand new market that barely shows up in today's numbers.

Operating income dropped 52 percent this quarter to 13.3 million dollars, even though sales went up. The company is spending heavily on research, new aircraft, and European expansion, which pushed operating margins from 19 percent down to under 8 percent. Profits per share fell from 70 cents to 20 cents year over year.

Running an airline alongside a medical device company is genuinely hard. Higher supply chain costs and growth investments knocked gross margin down from 61 percent to 58 percent this quarter. If fuel spikes, planes break, or trials slip, the cost side of this business can move fast in the wrong direction.