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IRADIMED CORP (IRMD)·Q2 2025 Earnings Summary

Executive Summary

  • IRADIMED delivered its 16th straight record quarter: revenue $20.41M (+14% Y/Y) and GAAP diluted EPS $0.45 (+18% Y/Y); non-GAAP diluted EPS $0.49 .
  • Results exceeded S&P Global consensus: Revenue $20.41M vs $20.01M*, and EPS $0.49 vs $0.395*; beat driven by strong pump shipments, firm monitor demand, and sustained 78% gross margin supported by overhead absorption ahead of the facility move .
  • FY25 guidance raised: revenue to $80.0–$82.5M (from $78.0–$82.0M), GAAP EPS to $1.60–$1.70 (from $1.55–$1.65), and non-GAAP EPS to $1.76–$1.86 (from $1.71–$1.81) .
  • Q3 guide embeds near-term headwinds from new-facility transition: revenue $20.5–$20.9M, GAAP EPS $0.41–$0.45, non-GAAP EPS $0.45–$0.49; dividend maintained at $0.17/share .
  • Strategic catalysts: FDA 510(k) clearance for next-gen MRidium 3870 pump (May 29); mgmt expects a multiyear replacement cycle with a ~12% ASP uplift and envisions a path to a ~$100M run-rate in 2026 as 3870 commercialization ramps .

Values retrieved from S&P Global (*).

What Went Well and What Went Wrong

What Went Well

  • Sixteenth consecutive record quarter with revenue $20.41M (+14% Y/Y) and GAAP EPS $0.45 (+18% Y/Y), exceeding internal Q2 guidance given in May .
  • Margin quality: gross margin at 78%, supported by increased overhead absorption as the company built finished goods ahead of the July 7 facility move .
  • Strategic progress: FDA 510(k) clearance for MRidium 3870 and management’s outlook for a significant replacement cycle; CEO: “we anticipate a huge demand for replacing older 3860 model pumps… we anticipate the ASP will be… around 12% more than the ASP of the existing pump” .

What Went Wrong

  • International softness continued: domestic mix rose to 89% of revenue (Q2’25) from 86% (Q2’24), implying weaker international traction despite overall growth .
  • Near‑term operational friction: management flagged “operational inefficiencies in the third quarter of 2025 as we settle into our new facility,” tempering EPS growth in Q3 .
  • Capital intensity/FCF: while Q2 operating cash flow was $7.75M, free cash flow was $4.92M given $2.82M capex tied to the new facility; YTD capex $6.74M with ~$1.1M remaining in Q3 .

Financial Results

Multi-Period Performance (oldest → newest)

MetricQ4 2024Q1 2025Q2 2025
Revenue ($)$19.4M $19,510,637 $20,409,400
GAAP Diluted EPS ($)$0.40 $0.37 $0.45
Non-GAAP Diluted EPS ($)$0.44 $0.42 $0.49
Gross Margin (%)76.1% 76.1% 78%
Operating Income ($)$5.8M $5,431,456 $6,787,997
Net Income ($)—$4,687,429 $5,773,961
Cash from Operations ($)$6.0M $4,292,092 $7,746,261
Free Cash Flow ($)$2.9M $374,792 $4,922,523

Actuals vs S&P Global Consensus (Q2 2025)

MetricS&P Consensus*ActualBeat/(Miss)
Revenue ($)$20,006,000*$20,409,400 $403,400
GAAP Diluted EPS ($)$0.395*$0.49 $0.095

Values retrieved from S&P Global (*).

Segment Revenue Breakdown

SegmentQ2 2024 ($)Q2 2025 ($)
MRI Compatible IV Infusion Pump Systems6,881,199 8,187,511
MRI Compatible Patient Vital Signs Monitoring Systems5,450,224 5,944,269
Ferro Magnetic Detection Systems366,402 482,203
Total Devices Revenue12,697,825 14,613,983
Amortization of Extended Warranty568,188 592,452
Disposables3,695,717 4,203,870
Services and Other967,146 999,095
Total Revenue17,928,876 20,409,400

KPIs and Mix

KPIQ2 2024Q2 2025
Gross Margin (%)78% 78%
Domestic Sales Mix (%)86% 89%
Cash from Operations ($)6,638,526 7,746,261
Free Cash Flow ($)5,368,756 4,922,523

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025$78.0–$82.0M $80.0–$82.5M Raised
GAAP Diluted EPSFY 2025$1.55–$1.65 $1.60–$1.70 Raised
Non-GAAP Diluted EPSFY 2025$1.71–$1.81 $1.76–$1.86 Raised
RevenueQ3 2025—$20.5–$20.9M New
GAAP Diluted EPSQ3 2025—$0.41–$0.45 New
Non-GAAP Diluted EPSQ3 2025—$0.45–$0.49 New
Dividend per ShareQ3 2025$0.17 (Q2 declared) $0.17 Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024)Previous Mentions (Q1 2025)Current Period (Q2 2025)Trend
New 3870 pump regulatory status & launchExpected mid‑summer 2025 clearance; 2026 revenue story FDA interactions ongoing; still expecting mid‑2025 clearance FDA 510(k) clearance obtained May 29; limited Q4’25 seeding, ramp through 2026 Regulatory risk reduced; commercialization near
ASP / pricing——New pump ASP ~12% above 3860 Positive pricing tailwind
Tariffs & supply chainTariffs not expected to materially affect GM% Tariff impact small; watching supplier pricing Tariff effects “still very small”; monitoring as inventories normalize Stable/manageable
Product performancePumps strong; monitor bookings strong in U.S. Pump shipments strong; renewed emphasis on monitors Pumps led growth; monitor shipments +9%; record backlog Balanced growth, strong demand
Regional mix—Domestic 82%; international –15% Y/Y Domestic 89% of revenue Mix shifting domestic
Capacity & facilitiesNew facility progressing to mid‑2025 completion CO by July; move end of July Move on July 7; short‑term Q3 inefficiencies expected Near-term transition; added capacity

Management Commentary

  • Strategic message: CEO emphasized a robust demand backdrop and visibility: “sixteenth consecutive quarter of record revenue… record backlog… reinforces our growth trajectory” .
  • Margin context: “Our gross profit margin for the quarter was 78%, driven in part by increased overhead absorption as we ramped up finished goods inventory ahead of our move to our new facility on July 7, 2025” .
  • Near-term caution and long-term confidence: “We anticipate some operational inefficiencies in the third quarter of 2025… [but] expanded capacity and the commercialization of our next-generation… pump… will help drive sustained growth” .
  • Long-term ambition: “piercing that $100 million revenue run rate in 2026… domestic pump device revenue… expected at $28M in 2025 will become nearly $50M… add disposables and international…” .
  • Pricing uplift: “It looks like [3870 pricing]… around 12% more than the ASP of the existing pump” .

Q&A Highlights

  • Backlog composition and fulfillment: Record backlog spans both pumps and monitors; pump backlog ~5–6 months; monitor backlog ~4–5 weeks, providing H2 visibility .
  • 3860 vs 3870 dynamics: Legacy 3860 orders to remain “quite strong” until active 3870 selling begins around December; initial 3870 placements in Q4’25 will be limited for user feedback before broader 2026 ramp .
  • ASP and margin implications: 3870 ASP ~12% above 3860; management indicated this should support gross and operating margins over time .
  • Ramp cadence: Pump bookings expected to be weaker in Q1’26 as customers transition and as initial seeding completes; bookings strengthen by Q2’26 with acceleration into H2’26 .

Estimates Context

  • Q2 2025 vs S&P Global consensus: Revenue $20.41M vs $20.01M*; GAAP EPS $0.49 vs $0.395* — both beats .
  • Q1 2025 vs S&P Global consensus: Revenue $19.51M vs $19.33M*; GAAP EPS $0.42 vs $0.375* — beats that preceded the Q2 raise .
  • Q3 2025 setup: Company guides revenue $20.5–$20.9M and GAAP EPS $0.41–$0.45 vs S&P consensus of $20.50M* revenue and $0.415* EPS — guidance brackets consensus amid expected temporary inefficiencies.
  • Implication: FY25 raises and 3870 pricing uplift suggest upward pressure on outer‑quarter estimates as commercialization progresses; near‑term (Q3) may remain bounded by facility transition commentary .

Values retrieved from S&P Global (*).

Key Takeaways for Investors

  • Quality beat: Broad-based top-line strength and stable 78% gross margin produced a clean revenue/EPS beat and FY raises .
  • Near-term watch item: Q3 guide embeds transition costs from the facility move; expect some EPS moderation before resuming trajectory .
  • Structural tailwind: FDA-cleared 3870 pump should catalyze a multiyear replacement cycle with ~12% ASP uplift, supporting margin durability and revenue acceleration into 2026 .
  • Mix shift: Rising domestic mix (89%) supports margins; international remains a re-acceleration lever if demand normalizes .
  • Cash/returns: Strong OCF ($7.75M) and a maintained $0.17 quarterly dividend provide support during the transition and ramp investments .
  • Estimate path: With Q2 beats and FY raises, consensus likely needs to lift for FY25; Q3 may stay in-range given operational commentary; focus on order trends and early 3870 feedback late 2025 .
  • Trading lens: Stock-sensitive catalysts include any updates on 3870 commercial timelines/early feedback, backlog conversion cadence, and evidence that Q3 inefficiencies are transitory .

Appendix: Additional Data Points

  • Balance sheet (Q2’25): Cash & equivalents $52.996M; Total assets $106.45M; Stockholders’ equity $94.30M .
  • Non-GAAP reconciliations: Q2’25 non-GAAP net income $6.35M; diluted non-GAAP EPS $0.49 .
  • Capex/new facility: Total construction cost ~$12.6M; ~$1.1M remaining payments expected in Q3’25 .