IRadimed Corporation

For the second quarter of 2026, revenue was $20.5 million, up 0.5% from $20.4 million in Q2 2025. GAAP net income was $5.2 million, or $0.41 per diluted share, versus $5.8 million, or $0.45, last year; non-GAAP net income was $5.9 million, or $0.46 per share, versus $6.4 million, or $0.49. Gross profit was $15.2 million with a 74% margin, down from $16 million and 78% a year ago. By segment, MRI-compatible patient vital signs monitoring systems contributed $6.7 million, up 12% year over year; Ferro-magnetic Detection Systems contributed $0.8 million, up 57%; disposables revenue grew 14% to $4.8 million; maintenance agreements grew 28% to $0.8 million; and services and other grew 7% to $1.1 million. Operating income was $6.4 million, cash and equivalents ended at $59.1 million, and cash flow from operations was $5.9 million for the quarter. Guidance calls for Q3 revenue of $23 million to $24.5 million, GAAP EPS of $0.49 to $0.54, and non-GAAP EPS of $0.54 to $0.59. For full-year 2026, the company reaffirmed revenue of $91 million to $96 million, GAAP EPS of $1.90 to $2.05, and non-GAAP EPS of $2.09 to $2.24.

Roger Susi emphasized that the company successfully launched first general-release production of the 3870 MR IV pump system and met its target of building 130 to 135 units in the quarter. He framed the 3870 as the key growth engine for the next several years, driven by replacement demand, greenfield penetration, and expansion at existing customers. His tone was upbeat and confident, especially about backlog, customer acceptance, and the expectation that gross margins will recover as the learning curve improves.

John Glenn focused on the financial impact of the launch transition and the path to margin recovery. He noted gross profit of $15.2 million and a 74% margin, down from 78% a year ago due to higher manufacturing costs from the first sizable 3870 ramp, but said gross margin should improve in the second half as volumes build. He also highlighted $59.1 million in cash and equivalents, $5.9 million of operating cash flow in the quarter, $0.4 million of capex, and a quarterly dividend of $0.20 per share. On taxes, he said the effective tax rate was 24.2% and likely to remain around 24% for the rest of the year.

Analysts focused on the operational demands of ramping 3870 production from 0 to 130-plus units in Q2 and over 300 in Q3, and management said staffing had largely been done in advance, with the remaining challenge mostly a manufacturing learning curve rather than new headcount. They also asked about whether the 3860 installed base would create a gap in service and disposable revenue; management said disposables were already growing 14% and believed the quad-stack replacement should ultimately increase utilization. On lead times, management said current orders could probably fill within about a quarter, but acknowledged lead times could stretch back toward historic 4- to 6-month levels as demand builds.