Iradimed's Q3 2025: Contradictions Emerge on New Pump Revenue Ramp, Product Launch Timelines, and Gross Margin Stability

Date of Call: November 3, 2025

Financials Results

• Revenue: $21.2M, up 16% YOY
• EPS: $0.43 per diluted share GAAP, up 12% YOY; non-GAAP $0.47, up 9% YOY
• Gross Margin: 78%, compared to 77% in Q3 2024

Guidance:

• Q4 2025 revenue expected $21.4M–$22.4M.
• Q4 GAAP diluted EPS $0.43–$0.47; Q4 non-GAAP diluted EPS $0.47–$0.50.
• Full-year 2025 revenue raised to $82.5M–$83.5M (from $80M–$82.5M).
• Full-year GAAP diluted EPS $1.68–$1.72 (up from $1.60–$1.70); non-GAAP $1.84–$1.88 (up from $1.76–$1.86).
• Q4 dividend $0.17/share payable Nov 25.
• 3870 rollout: 23-unit pilot in Dec; U.S. commercial rollout mid-Jan; bookings build in H1 2026 with material revenue ramp in H2 2026 and broader international adoption in 2027.

Business Commentary:

• Record Revenue and Pump Shipments:
• IRADIMED reported a record revenue of $21.2 million for Q3 2025, marking the 17th consecutive quarter of record revenue with a 16% year-over-year increase.

• The growth was driven by a 20% increase in shipments of the 3860 MRI IV pump and a 16% increase in MRI patient monitor sales.

• ** successful Transition and Gross Margin:**

• Despite transitioning manufacturing operations to a new facility, IRADIMED maintained a 78% gross margin.

• This was attributed to successful execution of the transition process and a focus on domestic business.

• New 3870 MRI IV Pump and Replacement Opportunity:

• The new 3870 MRI IV pump, cleared in Q2, is expected to significantly impact pump revenue through the large replacement opportunity.

• The company anticipates replacing 1,000 channels annually starting in Q2 2026, which could lead to a $50 million revenue run rate for pumps.

• Strong Financial Guidance Update:

• IRADIMED raised its full-year 2025 revenue guidance to $82.5 million to $83.5 million, up from the previous range of $80 million to $82.5 million.

• This update reflects strong performance and increased expectations for continued growth.

• Cash Flow and Capital Expenditures:

• IRADIMED reported a strong cash flow from operations of $7 million for Q3 and $19 million year-to-date.
• The company has allocated $8 million year-to-date for capital expenditures, primarily related to the new facility.

Sentiment Analysis:

Overall Tone: Positive

• "17th consecutive quarter of record revenue"; reported revenue $21.2M, up 16% YOY; gross margin 78% (vs. 77% prior year); company raised full-year revenue and EPS guidance and reiterated dividend and $3870 rollout plan.

Q&A:

• Question from Frank Takkinen (Lake Street Capital Markets, LLC): When should we expect pump revenue to flow to the ~$50M run rate — late 2026 or is that more of a 2027 event?
  Response: Management: Bookings visible in H1 2026 but material revenue will ramp in H2 2026, with clear revenue impact by Q3–Q4 2026 toward doubling pump channels.

• Question from Frank Takkinen (Lake Street Capital Markets, LLC): You maintained a 78% gross margin despite transition inefficiencies; does this imply potential to reach ~80% margin or was the beat driven by mix?
  Response: Management: The 78% margin reflects a smooth transition and a domestic-heavy mix that provided ~1% uplift; margins may fluctuate with regional mix, so sustainability depends on future mix.

• Question from Kyle Bauser (ROTH Capital Partners, LLC): Is pricing stable on the 3860 and will you discount inventory as you roll out the 3870?
  Response: Management: No discounts — 3860 units are selling at existing ASPs with strong demand.

• Question from Kyle Bauser (ROTH Capital Partners, LLC): How are you managing inventory levels for the 3870 ahead of launch and do you have the working capital to build inventory?
  Response: Management: Beginning purchases now and building inventory in Q4 for Q1 and beyond; working capital is sufficient to support the build.

• Question from Kyle Bauser (ROTH Capital Partners, LLC): What's the plan and timing for international entry of the 3870 (CE/MDR, Japan)?
  Response: Management: Targeting MDR/CE registry work through late 2026 with international and Japan conversions to occur in 2027.

• Question from Kyle Bauser (ROTH Capital Partners, LLC): The new facility is ~2.5x the previous size — what level of sales/capacity can it support?
  Response: Management: Facility is 2.5x larger, not landlocked, and can support up to approximately $50M per quarter with room for expansion on owned adjacent land.

Contradiction Point 1

Revenue Ramp for New Pump

It directly impacts expectations regarding the revenue growth trajectory for the new pump, potentially influencing company revenue and investor expectations.

How do you plan to achieve the $50 million run rate in pumps? When will this translate to revenue? - Frank Takkinen (Lake Street Capital Markets)

2025Q3: The sales team will start selling the 3870 pump in mid-January. Orders won't be immediate, and it will take time to ramp up. Revenue growth will start in the second half of 2026 and become more visible by the fourth quarter. - Roger Susi(CEO)

How do you expect the timing of reaching $50 million in pump revenue? - Frank James Takkinen (Lake Street Capital Markets, LLC, Research Division)

2025Q2: We will begin selling the new pump in Q4 with minimal revenue impact. The Q1 bookings for pumps will be weak. We expect them to pick up in Q2 and accelerate through Q3 and Q4. - Roger Susi(CEO)

Contradiction Point 2

Backlog Composition and Sales Strategy

It involves changes in revenue assumptions and sales strategy, which can affect market expectations and operational execution.

Can you explain the path to a $50 million pumps run rate and when we should expect it to convert to revenue? - Frank Takkinen (Lake Street Capital Markets)

2025Q3: The backlog is quite substantial. It's a combination of both pumps and a good strong monitor backlog. - John Glenn(CFO)

Explain the current backlog's composition and how you expect 3860 sales to trend before the 3870 launch? - Frank James Takkinen (Lake Street Capital Markets, LLC, Research Division)

2025Q2: The record backlog is composed of both pumps and a strong monitoring backlog, which provides good visibility into the second half of the year. - John Glenn(CFO)

Contradiction Point 3

Revenue Growth and New Product Launch

It involves different timelines for revenue growth expectations following the launch of a new product, which can impact investor perceptions of the company's financial outlook.

Can you clarify the path to a $50 million pump run rate and when this will impact revenue? - Frank Takkinen(Lake Street Capital Markets)

2025Q3: The sales team will start selling the 3870 pump in mid-January. Orders won't be immediate, and it will take time to ramp up. Revenue growth will start in the second half of 2026 and become more visible by the fourth quarter. - Roger Susi(CEO)

What remains to be done now and what is the current status until clearance is expected? - Frank Takkinen(Lake Street Capital Markets)

2025Q1: We plan to submit the 3875 in May, and receive clearance in September. In the meantime, we're launching the 3860, which is the same product line, same technology. - Roger Susi(CEO)

Contradiction Point 4

Product Launch and Revenue Impact

It involves differing expectations regarding the revenue impact and timing of the new product launch, which directly affects investor expectations and financial projections.

Can you clarify the path to a $50 million pump run rate? When will this transition impact revenue? - Frank Takkinen(Lake Street Capital Markets)

2025Q3: The sales team will start selling the 3870 pump in mid-January. Orders won't be immediate, and it will take time to ramp up. Revenue growth will start in the second half of 2026 and become more visible by the fourth quarter. - Roger Susi(CEO)

Will the sales force's increased focus on the monitor business impact 2025's top line? - Jason Wittes(ROTH Capital Partners)

2024Q4: We are projecting that sales of the 3870 pump will begin in the second half of 2025, which will be a major driver of revenue growth for the second half of 2025. - Roger Susi(CEO)

Contradiction Point 5

Gross Margin Stability

It involves differing explanations for the stability of gross margins, which are crucial for investors to understand the company's financial health.

How should we interpret maintaining a 78% gross margin despite transition inefficiencies? - Frank Takkinen(Lake Street Capital Markets)

2025Q3: The transition went smoothly without negatively impacting revenue or costs. The current 78% gross margin was boosted by domestic revenue. Future fluctuations depend on domestic vs. international sales. - Roger Susi(CEO)

Will Blackwell's Q4 revenue increase, and what is the expected gross margin exit rate? - Stacy Rasgon(Bernstein Research)

2025Q1: The guidance range is based on the assumption that the actual revenue mix between domestic and international sales will be similar to what we experienced in the third quarter of 2024, which we estimate was approximately 60% domestic and 40% international. - John Glenn(CFO)