Retail Traders Swarm TransMedics After Q3 Print— Retail Bulls Call It A ‘Hardcore Dip Buy’

• TransMedics shares fell 9% in after-hours trading after its third-quarter results showed strong year-over-year growth but a sequential slowdown and margin pressure.
• The company reaffirmed full-year 2025 guidance and outlined expansion plans, including a 22-aircraft U.S. fleet and a new European logistics network launching in Italy next year.
• Retail traders on Stocktwits viewed the selloff as a buying opportunity, with several predicting a rebound toward $135–$150.

Retail chatter around TransMedics Group surged on Thursday after the company’s shares fell 9% in after-hours trading, as investors focused on a sequential slowdown and margin pressure that overshadowed otherwise strong year-over-year growth in the company’s third-quarter (Q3) earnings.

Seasonal Dip Tempers A Strong Quarter

The organ transplant technology company's Q3 revenue was $143.8 million, an increase of 32% over the same period a year ago, but down from $157.4 million in the second quarter (Q2) due to normal seasonal patterns in transplant volumes. U.S. transplant revenue increased 32% to $139 million, and international revenue increased 41% to $3.6 million, primarily driven by heart procedures.

Gross margin slipped to 59% from 61.4% in Q2, which the company attributed to international expansion costs and seasonality. Operating income came in at $23.3 million, below the previous quarter’s $36.6 million, while net income dropped to $24 million or $0.71 per share, compared with $1.03 in Q2.

Guidance 

TransMedics reaffirmed its 2025 full-year revenue outlook of $595–$605 million, implying 36% growth at the midpoint, and said gross margins are expected to remain near 60% over the next few years.

The company expanded its air logistics fleet to 22 aircraft, covering about 78% of U.S. organ transport missions, and plans to pilot a double-shift system to boost utilization in early 2026. It also plans to launch its first European transplant logistics network in Italy next year, adapting its U.S. model for regional regulations.

Clinical momentum continues, with next-generation heart and lung trials expected to begin enrollment in the fourth quarter, pending full FDA clearance by early 2026.

Stocktwits Traders Call TransMedics Pullback A Buying Opportunity

On Stocktwits, retail sentiment for TransMedics Group was ‘extremely bullish’ amid a 1,175% surge in 24-hour message volume.

One user said they planned to keep adding shares of TransMedics until the stock reached $150, calling the pullback a buying opportunity.

Another described it as a “hardcore dip buy,” predicting the stock would soon rebound to around $135.

TransMedics Group’s stock has more than doubled so far in 2025.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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