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IRADIMED CORP (IRMD)·Q3 2025 Earnings Summary

Executive Summary

  • Record quarter: Revenue $21.20M (+16% YoY) and GAAP diluted EPS $0.43 (+8% YoY); non-GAAP diluted EPS $0.47 (+9% YoY). Gross margin held at 78% despite early-quarter move-related inefficiencies .
  • Beat vs Street: Revenue beat consensus ($21.20M vs $20.50M*) and GAAP EPS beat ($0.43 vs $0.415*). Non-GAAP EPS of $0.47 also above consensus EPS framework; estimates are S&P Global .
  • Guidance raised: FY25 revenue lifted to $82.5–$83.5M (from $80.0–$82.5M) and GAAP EPS to $1.68–$1.72 (from $1.60–$1.70); Q4 guide set at revenue $21.4–$22.4M, GAAP EPS $0.43–$0.47, non-GAAP EPS $0.47–$0.51 .
  • Catalysts: Facility now fully operational; record pump and monitor backlog; limited shipments of next‑gen 3870 IV pump beginning December; full U.S. commercialization in Q1’26 with expected revenue ramp in 2H’26 .

What Went Well and What Went Wrong

  • What Went Well

    • “Seventeenth consecutive quarter of record revenue” driven by devices, disposables; maintained 78% gross margin while transitioning facilities .
    • FY25 guidance raised across revenue and EPS; Q4 guide points to continued growth and margin resilience .
    • CEO: “On track to begin limited commercial shipments of the next‑generation 3870…this December…full U.S. commercialization…Q1 2026 and expected revenue ramping significantly in the second half of 2026” .

  • What Went Wrong

    • Cash from operations declined YoY in Q3 to $6.99M (−23%) due to higher inventory purchases, prepaid expenses, and accounts receivable dynamics .
    • Services and other revenue fell YoY ($0.87M vs $1.05M), modestly offset by disposables growth .
    • Management flagged “transitional inefficiencies” in early Q3 following the move to the new Orlando facility, tempering EPS versus potential otherwise .

Financial Results

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$19.51 $20.41 $21.20
GAAP Diluted EPS ($)$0.37 $0.45 $0.43
Non-GAAP Diluted EPS ($)$0.42 $0.49 $0.47
Gross Profit Margin (%)76.1% 78% 78%
Income from Operations ($M)$5.43 $6.79 $6.83
Net Income ($M)$4.69 $5.77 $5.58
Segment Revenue ($USD)Q1 2025Q2 2025Q3 2025
MRI IV Infusion Pump Systems$5,999,212 $8,187,511 $8,333,988
Patient Vital Signs Monitoring Systems$6,544,679 $5,944,269 $6,872,311
Ferro Magnetic Detection Systems$418,204 $482,203 $377,716
Amortization of Extended Maintenance/Warranty$560,199 $592,452 $612,993
Disposables$4,947,088 $4,203,870 $4,130,667
Services and Other$1,041,255 $999,095 $874,389
Total Revenue$19,510,637 $20,409,400 $21,202,064
KPIsQ1 2025Q2 2025Q3 2025
Domestic Sales Mix (%)82% 89% 85%
Cash Flow from Operations ($)$4,292,092 $7,746,261 $6,986,075
Free Cash Flow ($)$374,792 $4,922,523 $5,722,520
Results vs Street (S&P Global)Q1 2025Q2 2025Q3 2025
Revenue Consensus Mean ($)$19,332,000*$20,006,000*$20,498,500*
Actual Revenue ($)$19,510,637 $20,409,400 $21,202,064
Primary EPS Consensus Mean ($)$0.375*$0.395*$0.415*
Actual GAAP Diluted EPS ($)$0.37 $0.45 $0.43

Values retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ4 2025N/A$21.4M–$22.4M New
GAAP Diluted EPSQ4 2025N/A$0.43–$0.47 New
Non-GAAP Diluted EPSQ4 2025N/A$0.47–$0.51 New
RevenueFY 2025$80.0M–$82.5M $82.5M–$83.5M Raised
GAAP Diluted EPSFY 2025$1.60–$1.70 $1.68–$1.72 Raised
Non-GAAP Diluted EPSFY 2025$1.76–$1.86 $1.84–$1.88 Raised
DividendQ4 2025Regular $0.17 per share cadence $0.17 per share payable Nov 25, 2025 Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q3 2025)Trend
3870 IV pump commercializationQ1: Clearance expected mid‑2025; limited revenue Q4’25; 2026 ramp . Q2: FDA cleared May 22; limited Q4’25 shipments; full rollout Q1’26 .Limited shipments start December; full U.S. commercialization Q1’26; ramping significantly in 2H’26 .Progressing/accelerating
Facility transitionQ1: New facility completion targeted July . Q2: Move completed July 7; final payments expected in Q3 .Early‑Q3 inefficiencies; facility now fully operational .Resolving
BacklogQ1: Monitor bookings strong; planning shift to monitors . Q2: Record backlog (pumps and monitors) as of June 30 .Pump and monitor backlog at all‑time highs .Growing
Tariffs/macroQ1: Tariff impact minimal; vigilance on supplier pricing . Q2: Tariff impacts still very small .No new macro headwinds cited in PR; focus on operational execution .Stabilizing
ASP and marginsQ2/Q3 calls: 3870 ASP ~12% higher than legacy; margin uplift expected .Gross margin sustained 78%; operating margin supported by mix .Positive bias
Domestic/international mixQ1: 82% domestic ; Q2: 89% domestic .85% domestic .High domestic; variable
R&D executionQ1: R&D down as 3870 development finalized . Q2: R&D ~$0.88M .R&D $0.67M; ongoing refinement ahead of commercialization .Lower near‑term spend
RegulatoryQ1: Active FDA dialogue; expecting clearance . Q2: FDA clearance obtained .No new regulatory items; commercialization plans reaffirmed .De‑risked

Management Commentary

  • CEO: “We are proud to announce our seventeenth consecutive quarter of record revenue…Although we experienced some transitional inefficiencies…we maintained a strong 78% gross margin…with our pump and monitor backlog at all‑time highs.”
  • CEO on product roadmap: “On track to begin limited commercial shipments of the next‑generation 3870…this December, with full U.S. commercialization and rollout in the first quarter of 2026 and expected revenue ramping significantly in the second half of 2026.”
  • CFO (prior quarter context to trend): Strong domestic mix (89%), operating leverage, and backlog supporting 2H execution; facility capex nearing completion .

Q&A Highlights

  • Backlog composition: Mix of pumps and monitors; strong visibility through second half ahead of 3870 commercialization .
  • 3860→3870 transition strategy: Legacy pump orders remain strong; broad selling of 3870 begins in December, with limited placements used for feedback and refinement .
  • ASP uplift: 3870 pricing modeled ~12% above existing pump; expected to support gross and operating margin improvement over time .
  • Fulfillment timelines: Monitor backlog ~4–5 weeks; pump backlog ~5–6 months; Q1’26 pump bookings expected to be softer as transition occurs, but revenue supported by legacy backlog .

Estimates Context

  • Q3 2025: Revenue beat consensus ($21.20M vs $20.50M*); GAAP EPS beat ($0.43 vs $0.415*). Revenue and EPS also exceeded Q2 and Q1 consensus estimates .
  • Given sustained beats and raised FY guidance, Street models likely drift higher for Q4 and FY25, especially on revenue and EPS trajectories as operational inefficiencies abate and backlog converts .
    Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Strong beat‑and‑raise quarter: Revenue and EPS above consensus; FY25 guide raised on both top and bottom lines—supportive for near‑term sentiment and estimate revisions .
  • Execution through transition: 78% gross margin sustained as the new facility becomes fully operational; near‑term margin stability with potential uplift from 3870 ASP and mix over 2026 .
  • Backlog‑driven visibility: Record pump and monitor backlog provides revenue support into Q4/Q1’26 even as bookings cadence shifts with the 3870 launch .
  • 3870 commercialization is the medium‑term growth lever: Limited December shipments, full U.S. rollout in Q1’26, accelerating in 2H’26; replacement cycle plus greenfield adoption opportunity .
  • Watch cash conversion: Q3 cash from operations declined YoY amid working capital build; facility capex largely complete—monitor inventory and receivable dynamics as backlog converts .
  • Mix and geography: High domestic exposure (85% in Q3) remains supportive; monitor international reacceleration for incremental upside .
  • Capital returns unchanged: Quarterly dividend maintained at $0.17/share while funding growth investments .