Iradimed outlines $100M revenue run-rate for 2026 driven by new 3870 pump launch

 

Management View

• Roger E. Susi, CEO, reported "yet another record quarter, marking our 16th consecutive quarter of record revenues." He highlighted Q2 2025 revenue of $20.4 million, a 14% increase over the prior year, and noted gross profit at 78% and an 18% rise in GAAP diluted EPS compared to Q2 2024. Susi credited the 3860 MRI IV pump as leading performance, with a 9% growth in MRI patient monitor shipments and strong bookings supporting guidance for the monitor line.
• Susi addressed tariffs, stating "the actual impact is still very small." He emphasized minimal effects from tariffs and clarified that DOGE-related agency impacts "did not materialize." He announced the FDA clearance of the new 3870 IV pump system, describing it as a "seminal event" for the company.
• Susi shared a strategic outlook, stating, "as we sell 2,000 3870 pump channels annually" at a higher ASP, 2025 domestic pump revenue is expected to reach $28 million and "become nearly $50 million" as replacement sales accelerate, supporting the move toward a $100 million revenue run-rate in 2026. He expressed confidence in "breaking through this $100 million revenue range."
• Susi updated guidance for Q3 2025, expecting revenue of $20.5 million to $20.9 million, and GAAP diluted EPS of $0.41 to $0.45. Full-year 2025 guidance was raised to $80 million to $82.5 million in revenue and GAAP diluted EPS of $1.60 to $1.70.
• John F. Glenn, CFO, stated, "For the 3 months ended June 30, 2025, we reported revenue of $20.4 million, a 14% increase from $17.9 million in the second quarter of 2024." Glenn provided details on product line performance, margins, and cash flow, noting a gross margin of 78% and domestic sales comprising 89% of total revenue.

Outlook

• Management raised full-year 2025 revenue guidance to $80 million to $82.5 million, up from $78 million to $82 million, representing 9% to 13% growth over 2024. GAAP diluted EPS guidance increased to $1.60 to $1.70, from $1.55 to $1.65. Susi indicated these upgrades were due to "our strong first half performance."
• For Q3 2025, revenue guidance is $20.5 million to $20.9 million, with GAAP diluted EPS of $0.41 to $0.45, and non-GAAP diluted EPS of $0.45 to $0.49, reflecting anticipated operational inefficiencies during the facility transition.

Financial Results

• Q2 2025 revenue was $20.4 million, with MRI compatible IV infusion pump systems generating $8.2 million (up 19% year-over-year) and patient vital signs monitoring systems $5.9 million (up 9%). Disposables revenue increased to $4.2 million (up 14%).
• Domestic sales rose to $18.2 million (up 18%), while international sales declined to $2.2 million. Gross profit was $16 million. Operating expenses were $9.2 million, and income from operations grew to $6.8 million.
• Net income reached $5.8 million or $0.45 per diluted share, an 18% increase from Q2 2024. On a non-GAAP basis, net income was $6.4 million or $0.49 per diluted share.
• Cash and cash equivalents were $53 million at quarter-end. Cash flow from operations was $7.7 million for the quarter, and free cash flow was $4.9 million, reflecting facility-related capital expenditures.

Q&A

• Frank James Takkinen, Lake Street Capital, asked about backlog composition and 3860 sales trends ahead of the 3870 launch. John F. Glenn responded that "it was a record backlog as of June 30, and it was composed of both -- certainly, as we discussed the pumps, but also a very strong monitoring backlog as well." Roger E. Susi added, "they're still trending extraordinarily strong, and that's why we're so bullish as the year wraps up."
• Takkinen inquired about the cadence of ramping to $50 million in pump revenue. Susi explained the rollout begins with limited Q4 2025 3870 sales for feedback, with significant acceleration expected through 2026: "Q1 on pump bookings overall, I expect to be weak... by second quarter, we should be back to pretty strong run rate on booking pumps, which will just accelerate through Q3 and Q4."
• Takkinen asked if the new pump could expand the overall market. Susi stated, "we feel that with the new pump being much more modern and with this much more user-friendly help... the greenfield, those folks that have sat on the fence and not adopted the older pump, we should knock them off at an accelerating rate."
• Jason Hart Wittes, ROTH, asked about ASP increase for the new pump. Glenn confirmed, "it looks like it's coming out where it's probably going to be around 12-ish percent more than the ASP of the existing pump."
• Wittes inquired about gross margin impact and backlog fulfillment timing. Susi replied, "it might actually be reflected a little bit more so even in the gross margin." He noted the pump backlog is "running about 5 months, 5, 6 months."

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