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IRADIMED CORP (IRMD)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered record revenue of $19.51M, up 11% YoY, with GAAP diluted EPS of $0.37 (+16% YoY) and non-GAAP diluted EPS of $0.42 (+17% YoY). Gross margin held at 76.1%, consistent with Q1 2024 .
  • Segment performance: pumps $6.00M (+16% YoY), monitoring $6.54M (flat YoY), disposables $4.95M (+23% YoY), FMD $0.42M (+67% YoY), services $1.04M (down YoY) .
  • Guidance reaffirmed: FY25 revenue $78.0M–$82.0M; GAAP EPS $1.55–$1.65; non-GAAP EPS $1.71–$1.81. Q2 2025 guidance: revenue $19.7M–$19.9M; GAAP EPS $0.37–$0.40; non-GAAP EPS $0.41–$0.44 .
  • Dividend: $0.17 per share declared for Q2 (payable May 30, 2025). Operational catalysts include a new Orlando manufacturing facility targeted for June–July occupancy, and mid-2025 FDA 510(k) clearance timeline for the next-gen 3870 IV pump (commercial impact skewed to late 2025/2026) .

What Went Well and What Went Wrong

What Went Well

  • Fifteenth consecutive quarter of record revenue driven by strong 3860 pump shipments and outsized disposables growth (+23% YoY); gross margin steady at 76.1% .
  • Domestic demand strengthened (82% of revenue vs 76% prior year), while bookings for monitoring systems showed early signs of recovery following incentive changes; management expects monitor emphasis to support mix in 2025 .
  • Management confidence and execution momentum: “We are excited to begin 2025 with our fifteenth consecutive quarter of record revenue… With our new manufacturing facility on track for completion in July 2025, we are well-positioned to support our planned growth” — Roger Susi .

What Went Wrong

  • International revenue declined, with domestic mix rising, implying dependence on U.S. demand; services revenue fell YoY in Q1 .
  • Free cash flow fell to $0.37M (from $3.40M in Q1 2024) due to $3.92M in capex largely for the new facility; cash from operations grew modestly to $4.29M (+10% YoY) .
  • FDA clearance remains a timing variable; while mid-2025 timeline is reiterated, management acknowledged process uncertainty: “Too soon to tell… interactive questions… If all goes well… 3 or 4 weeks” — Roger Susi .

Financial Results

Summary vs Prior Periods and Prior Year

MetricQ1 2024Q3 2024Q4 2024Q1 2025
Revenue ($USD)$17.60M $18.33M $19.40M $19.51M
GAAP Diluted EPS$0.32 $0.40 $0.40 $0.37
Non-GAAP Diluted EPS$0.36 $0.43 $0.44 $0.42
Gross Profit Margin %76.1% 77.4% 76.1% 76.1%
Operating Income ($USD)—$5.79M $5.8M $5.43M

Notes: Q1 2025 revenue +11% YoY with steady margins; non-GAAP EPS expansion reflects stock comp normalization .

Results vs S&P Global Consensus (Q1 2025)

MetricConsensusActualSurprise
Revenue ($USD)$19.332M*$19.511M +$0.179M (+0.9%)*
Primary EPS$0.375*$0.37 (GAAP) -$0.005 (approx in-line)*
Primary EPS (Adj. context)$0.375*$0.42 (Non-GAAP) +$0.045 (beat)*

Values marked with * retrieved from S&P Global.

Segment Revenue Breakdown (Q1 2025 vs Q1 2024)

SegmentQ1 2024Q1 2025
MRI Compatible IV Infusion Pump Systems$5.19M $6.00M
MRI Compatible Patient Vital Signs Monitoring Systems$6.46M $6.54M
Ferromagnetic Detection Systems (FMD)$0.25M $0.42M
Total Devices Revenue$11.90M $12.96M
Amortization of Extended Warranty$0.49M $0.56M
Disposables$4.01M $4.95M
Services and Other$1.19M $1.04M
Total Revenue$17.60M $19.51M

KPIs and Cash Metrics

KPIQ1 2024Q1 2025
Domestic Revenue Mix76% 82%
Gross Margin %76.1% 76.1%
Cash from Operations$3.88M $4.29M
Free Cash Flow$3.40M $0.37M
Capex$0.48M $3.92M
Quarterly Dividend$0.15 (Q4 2024) $0.17 (Q2 2025 declared)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025$78.0M–$82.0M $78.0M–$82.0M Maintained
GAAP Diluted EPSFY 2025$1.55–$1.65 $1.55–$1.65 Maintained
Non-GAAP Diluted EPSFY 2025$1.71–$1.81 $1.71–$1.81 Maintained
RevenueQ2 2025—$19.7M–$19.9M New quarterly guidance
GAAP Diluted EPSQ2 2025—$0.37–$0.40 New quarterly guidance
Non-GAAP Diluted EPSQ2 2025—$0.41–$0.44 New quarterly guidance
Dividend per ShareQ2 2025—$0.17 (pay 5/30/2025) Declared

Note: Non-GAAP guidance excludes stock-based compensation; expected stock comp net of tax ~$2.6M for FY25 and ~$0.6M for Q2 2025 .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024, Q4 2024)Current Period (Q1 2025)Trend
FDA 510(k) for 3870 pumpFiling in Sept. 2024; AI letter expected; targeted clearance 2Q25; initial revenue Q4 2025 Responses submitted; interactive FDA follow-ups; if all goes well, clarity in 3–4 weeks; mid-2025 clearance reiterated; 2026 revenue story Steady progress; timeline reaffirmed
Sales Mix: Monitor vs PumpPlan to deemphasize legacy pump before 3870; emphasize monitors via incentives in 2025 Monitor bookings held up; Q2 start strong; salesforce incentives adjusted; disposables strong Monitor emphasis building
Tariffs/MacroNoted risk of tariffs; BOM exposure limited Tariff direct impact small; supplier pricing vigilance; customers not reacting Manageable; limited margin risk
Facility ExpansionConstruction largely on schedule; move-in targeted mid-2025 Finish stage; CO by June–July; full operations by end of July Execution on track
GeographyDomestic strength (Q3/Q4); international variability Domestic 82% of mix; international down YoY Domestic-led growth continues
R&D / 3870 timelineR&D ramp to file; later leverage R&D reduced as development phases finalize Transitioning to commercialization prep

Management Commentary

  • “We are excited to begin 2025 with our fifteenth consecutive quarter of record revenue… With our new manufacturing facility on track for completion in July 2025, we are well-positioned to support our planned growth” — Roger Susi .
  • “Starting with the tariff impact… we do not see the risk of material cost impacts directly… The good news thus far is that we do not see our customers reacting or feeling tariff pain” — Roger Susi .
  • “We recently filed responses to the… additional information questions… within a week, we had an FDA response… this new device… will be a 2026 revenue story. We… expect clearance in mid-2025; only light revenue in Q4 2025” — Roger Susi .
  • “Disposable revenue… increased 23%… domestic sales accounted for 82% of total revenue… gross margin was 76.1%” — John Glenn .

Q&A Highlights

  • Disposables surge: growth supported by backlog reduction; management expects disposables to grow commensurate with capital and utilization trends .
  • Monitor recovery: commission structure changes and sales focus driving stronger monitor bookings through Q1 and into early Q2; confidence in 2025 mix shift .
  • FDA process: interactive queries ongoing; potential resolution within weeks; clearance still mid-2025; launch ramp expected to take months, with 2026 as the meaningful revenue year .
  • Facility timing: certificate of occupancy by June–July; operational move-in by end of July .
  • Tariff exposure: limited direct BOM impact; watchful on supplier pricing behavior; customers not showing tariff-related demand changes .

Estimates Context

  • Q1 2025 revenue beat consensus by ~$0.18M (+0.9%), driven by pump shipments and outsized disposables; gross margin stable at 76.1% supports profitability durability *.
  • EPS context: GAAP diluted EPS of $0.37 was approximately in line/slightly below S&P “Primary EPS” $0.375; non-GAAP diluted EPS of $0.42 exceeded consensus Primary EPS, but basis differs (GAAP vs adjusted) *.
  • With management reaffirming FY25 guidance and outlining Q2 guidance above Q1 actuals, near-term estimate revisions likely modest higher on revenue, with EPS constrained by facility transition costs and ramp timing ahead of the 3870 commercialization *.

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • IRMD’s Q1 2025 print was solid: record revenue and YoY EPS growth with steady gross margin; strength was pump-led with notable disposables contribution—a setup for sustained momentum into Q2 .
  • Near term: Q2 guidance implies sequential revenue up and EPS in the $0.37–$0.40 GAAP range; monitor bookings are improving, supporting mix resilience ahead of 3870 introduction .
  • FDA timing and facility ramp are the key 2025 catalysts; expect limited 3870 revenue in Q4 2025, with material contribution in 2026; watch for clearance updates in coming weeks .
  • International softness persists; domestic mix at 82% heightens U.S. demand dependence; monitor any change in international traction as salesforce priorities shift .
  • Capex drag on FCF in Q1 relates to the new facility; CFO plans another ~$3M spend until completion—FCF should normalize post move-in .
  • Tariff risk appears manageable given limited BOM exposure; pricing discipline and supplier oversight are focus areas; margin implications currently minimal .
  • Dividend maintained and raised from prior year’s $0.15 to $0.17 per quarter, underscoring cash generation confidence even during investment cycle .