Transmedics

Sales jumped 41 percent to 203 million dollars, the biggest quarter in company history with a record number of transplant cases. More liver and heart transplants drove the growth. The organ transport side of the business grew even faster, up 60 percent to nearly 90 million dollars. Management raised its full year target to 764 to 774 million dollars, and the company has 493 million dollars in cash to keep building.

In October, the FDA approved two major new trials, one for hearts and one for lungs. Both go after patients the company barely reaches today. The FDA also cleared 90 more patients for an ongoing heart study. Overseas, TransMedics won its first European transport contract in Italy through its German air partner, PAD Aviation. A kidney version, the biggest transplant market of all, is on track for its first human use in the second half of 2027.

Even with record sales, profit fell to 17.1 million dollars, or 46 cents a share, down from 66 cents a year ago. Spending climbed to 90.5 million dollars from 61.3 million. The money is going into kidney research, new heart and lung trials, a new headquarters, and the European airline partner. For now, sales are growing much faster than profits.

Running an airline alongside a medical device company is genuinely hard, and the stock tends to swing about twice as much as the overall market. The fast growing transport business keeps less of each dollar than selling devices does. That left the company with about 58.5 cents of every sales dollar after delivery costs, slightly below last year. If fuel spikes, planes break down, or trials slip, costs can move fast in the wrong direction.