Key Highlights

  • Record quarterly Revenue was USD 24.2 million, up 14% from a year earlier and 18% from the second quarter.
  • Earnings were USD 0.51 per share GAAP and USD 0.55 non-GAAP, up from USD 0.41 and USD 0.46.
  • Gross Margin improved two points sequentially to 76% as Manufacturing climbed the new pump learning curve.
  • Over 300 of the new 3870 pumps shipped in the quarter, and Backlog grew entering the fourth quarter.

Record Quarter

IRadimed Corporation (NASDAQ:IRMD) reported record third-quarter 2026 revenue of USD 24.2 million, up 14% from the third quarter of 2025 and 18% from the second quarter. GAAP Earnings were USD 0.51 per share and non-GAAP earnings were USD 0.55, compared with USD 0.41 and USD 0.46 in the second quarter. Gross margin improved two full points sequentially to 76%, reflecting efficiencies as manufacturing teams climb the 3870 learning curve.

Management said the launch is clearly becoming a successful one and that hospital customers have responded positively to the new pump, and that the production goal was a stretch, with third-quarter output of the new pump more than 125% above the second quarter, supported by a strong selling effort that booked record numbers of both the 3880 monitor and 3870 pumps. Management credited its production, engineering, quality, materials and field sales teams, and said the order rate and backlog support its ability to forecast fourth-quarter revenue.

Pump Replacement Opportunity

The 3870 MRI-compatible IV pump is replacing the older 3860 system. About 6,400 older pump channels in the U.S. are more than five years old, and roughly 70% of replacement orders swap two older channels for one four-channel stack, so the installed pool translates to more than 10,000 new channels. The company plans to sell about 2,000 to 2,500 3870 pumps per year, and the new system commands about USD 25,000 per channel, a 23% to 25% lift over the older unit.

Hospital customers usually need four to six months or more to budget and issue purchase orders, but a significant number are moving faster. Monitor bookings, which were weak in the first quarter after concern that the new pump would draw sales focus, set records in both the second and third quarters.

Cash, Dividend and Guidance

Cash and equivalents were USD 63.3 million, up from USD 59.1 million at the end of June and USD 51.2 million at year end. Operating Cash Flow was USD 7 million for the quarter and USD 21.2 million for nine months, up 12%. Capital expenditures were USD 0.2 million versus a prior-year period that included construction of the corporate office and manufacturing facility. Non-GAAP free cash flow was USD 6.8 million for the quarter and USD 20.1 million for nine months.

The board declared a regular quarterly dividend of USD 0.20 per share, payable November 27, 2026 to holders of record on November 13. For the fourth quarter, management projects revenue of USD 25 million to USD 26.5 million and GAAP diluted EPS of USD 0.53, and plans another increase of more than 50% in 3870 pump revenue.

Order and Margin Indicators

Items to watch include the timing of hospital purchase orders, 3870 manufacturing efficiency, monitor bookings and the rate of replacement of older pump channels.