Guidance and Revenue Outlook
Q: What factors influence your guidance and growth expectations for the second half?
A: We do not expect to decelerate but aim to be practical and realistic in our guidance to avoid surprises. Operational variabilities, such as the 6 to 8 weeks it takes to get new aircraft operational and train new pilots, are factored into our guidance. We tend to be conservative to prevent any unexpected issues.

Heart Business Momentum
Q: What's driving the strength in your heart franchise, and is it sustainable?
A: The OCS remains the only FDA-approved heart perfusion technology delivering significant growth in DCD and DBD utilization from extended criteria donors in the U.S. and globally. We are proud of our Q2 results and expect this momentum to continue throughout this year and next. We plan to further accelerate heart growth with new clinical programs.

Operating Margin Outlook
Q: Are you approaching a low point for operating margins, and where will future leverage come from?
A: We expect to be consistently profitable moving forward but are still in investment mode. Leverage will come from slowing the pace of investment growth relative to revenue and achieving critical mass in our NOP organization. As revenue grows, we anticipate significant opportunities for operating leverage in our highly scalable model.

Pipeline Progress and Clinical Trials
Q: Can you update us on the warm perfusion pipeline and upcoming clinical trials?
A: We are locked and loaded on design for our warm perfusion programs and are in final stages, focusing on supply chain and BNP testing. We expect to begin interactions with the FDA in the second half of this year and aim to start clinical programs early next year. We believe this will help solidify our position in the heart and lung markets.

Logistics Growth and Customer Adoption
Q: What is driving the growth in logistics programs, and how are customers responding?
A: Conversations with new programs are consistent; they want to understand how TransMedics Logistics can help them cost-effectively. Early adopters have shown success, and recent institutions are joining due to peer feedback, our network's reach, and our ability to provide organs from farther locations. Our financial offering is the same nationwide, making it easy for programs to benefit from our services.

International Expansion Opportunities
Q: When can we expect meaningful contributions from international markets?
A: We expect to see early results from our efforts in Europe by the end of 2025, with more significant contributions in 2026 and beyond. We are selectively targeting smaller international opportunities and are in active dialogue to replicate our successful NOP model in other geographies.

Pricing Strategy and Market Share
Q: Do you anticipate pricing power in 2025 and beyond?
A: We have a pricing model that works and are not looking to capitalize on leverage. Our focus is on growing overall transplant volume and market share while being a trusted partner to transplant programs across all organs. We are comfortable with our current pricing strategy and do not see changes in the near future.

Capacity Expansion Planning
Q: Are there plans to invest in capacity expansion, such as clean rooms?
A: While we have no near-term capacity constraints, we plan to begin adding capacity in the next 12 to 18 months from a business continuity and risk management standpoint, not due to current limitations.

Pilot Headcount and Operational Capacity
Q: Will you continue to increase pilot headcount to support growth?
A: Yes, we have nearly doubled our pilot headcount to support the growing number of aircraft and to increase operational capacity by double-shifting planes. Our goal is to eventually operate around the clock. We will continue to evaluate the need for additional pilots as we grow our fleet and utilization.

Mitigating Burnout in Clinical Team
Q: How do you mitigate burnout among your clinical support and procurement teams?
A: We have developed models over the past 18 to 24 months to ensure our staff is well-rested, including shifts and programs to maximize quality of care. We have one of the lowest turnover rates in our NOP team and monitor this routinely to keep our team fresh and deliver the best care for organs.

Quality of Life Improvements for Transplant Teams
Q: Are you seeing improvements in surgeon recruitment due to OCS and NOP programs?
A: While we cannot comment on specific programs, we know that 63% of liver transplants using NOP are done during daytime hours, improving quality of life and surgical outcomes. We hope to achieve similar results in the cardiothoracic arena, addressing fatigue issues in organ transplantation and aiding in recruiting new surgeons.