IRADIMED CORP Q3 FY2025 earnings call

• IRADIMED achieved its 17th consecutive quarter of record revenue with the third quarter of 2025 generating $21.2 million, a 16% increase from the third quarter of 2024. Gross profit was 78%, and GAAP diluted earnings per share increased 8%.
• Pump shipments led performance, with the 3860 MRI IV pump growing 20% year-over-year and MRI patient monitor shipments up 16%.
• The new 3870 MRI IV pump system, cleared in Q2, is expected to have a 10%-14% price increase. The replacement of older 3860 pumps is the key growth driver, with a target of 1,000 replacements per year starting in Q2 2026. It is anticipated that pump revenue could reach a $50 million run rate, and overall business could exceed $100 million.
• Declared a $0.17 per share quarterly dividend for Q4, payable on November 25.

In the third quarter of 2025, MRI compatible IV infusion pump systems contributed $8.3 million, accounting for 39.15% of the $21.2 million total revenue, with a year-over-year increase of 20%. Patient vital signs monitoring systems generated $6.9 million, making up 32.55% of total revenue, up 16% year-over-year. Disposable revenue grew 12% to $4.1 million. Ferromagnetic detection systems also saw solid gains. Domestic sales reached $18.1 million, a 19% increase, accounting for 85% of total revenue, while international sales remained stable at $3.1 million.

• For the fourth quarter of 2025, revenue is expected to be $21.4 million to $22.4 million, GAAP diluted earnings per share is forecasted to be $0.43 to $0.47, and non-GAAP diluted EPS is $0.47 to $0.50.
• For the full year 2025, revenue is raised to $82.5 million to $83.5 million from the prior range of $80 million to $82.5 million. GAAP diluted earnings per share is expected to be $1.68 to $1.72, up from $1.60 to $1.70, and non-GAAP diluted EPS is $1.84 to $1.88, up from $1.76 to $1.86.

• Future results may differ materially from forward-looking statements due to several risk factors. For a description of the relevant risks and uncertainties, refer to the Risk Factors section in the company's most recent reports filed with the Securities and Exchange Commission.

Q: Congrats on the solid quarter and all the progress. I was hoping we could start with some more color around the kind of bridge to $50 million run rate in pumps. When should we expect that to flow through to kind of revenue to that $50 million run rate? Can we see that in late '26? Or is that more of a 2027 event?

A: We should -- yes, Frank, it's Roger. Maybe I'll pick it up first and let Jack jump in if he has some more color for you. As I said, most of that -- given that we start pounding the pavement shall we say, to sell 3870 here in mid-January, the early part. But by the time they get out there, you're basically half of Q1. And as I mentioned, orders don't just immediately get turned around even from people that are -- we think are pretty well pent up with desire to get a new pump now after at least 20 years of 3860. So yes, the story is in the back half of 2026 for revenue. We anticipate bookings and so forth, that we'll be able to report on in the first half, certainly. But the real revenue will start to ramp up in the third and fourth quarter. And so yes, by that fourth quarter, we think it will be pretty clear that we're doubling the number of pump channels that we're booking certainly and the revenues should start to reflect that as well.

Q: Thank you, operator, and this will conclude today's question-and-answer session. And I would now like to turn the conference back over to Roger Susi for closing remarks.

A: Thank you, operator, and I thank you all once again for joining today's call and look forward to displaying IRADIMED's ability to execute once again as we introduce our new MRI IV pump and capitalize on the huge replacement opportunity throughout 2026 and beyond. Thank you.

Q: Our first question is going to come from the line of Kyle Bauser with ROTH Capital Partners. Maybe we can talk a little bit about inventory levels for 3860 and 3870. Maybe first on 3860. Obviously, demand is still very strong here. It doesn't sound like any air pockets, which is impressive. Is pricing stable on that? Or are you planning on maybe sort of providing any sort of discounted levels there as you kind of roll out that inventory and move into 3870?

A: Kyle, nice to have you on board here with us. By the way, and hope to meet face-to-face soon. But to answer your question, the question is simple, no. No. We haven't -- it's surprising maybe, but yes, that boost -- that gift that keeps on giving from these old 3860 pump orders is straight at the ASPs we've always enjoyed, no discounting, no, haven't done that.

Q: Great. Great to hear. And maybe on -- how are you thinking about inventory levels for 3870 ahead of the launch? And what are current levels? Or do you expect -- how do you expect to manage that, et cetera?

A: Well, there's lots of money going there. I'll let Jack pick that one up.

Q: Sure. So good to hear from you, Kyle. So yes, as far as the inventory levels of 3860, certainly, we have the inventories and we'll plan the inventories for the backlog that we have currently with the 3860, which will be shipping throughout Q1 of next year and end of Q2, it looks like. As far as the 3870, we are beginning those buys now. And so you'll see in Q4, there certainly -- we're building up inventory for those 3870s and now will be appropriate build for Q1 and beyond. And so certainly, we have the working capital from that perspective, no issues there.

Q: Okay. Appreciate that. And I don't want to get ahead of myself here since you're just kind of beginning the rollout into the U.S. But can you remind me plans eventually to secure entry into international markets for 3870 and how you're kind of thinking about that?

A: Yes. It's primarily a regulatory issue. There's the new MDR requirements to maintain your CE Mark for European community business. That's a heavy lift, but our regulatory folks, they came off of a long battle with FDA, as you know, to clear the 3870, but that was back in May. They took a breather, but they're hot and heavy on obtaining that MDR, let's call it a clearance, but it's a registration where the CE Mark. And that will -- that's what we're targeting to be done in Q4. So international business will switch over to the 3870 next year, 2027, I should say, not in 2026. We'll just be getting the MDR towards the latter part of 2026. Likewise, our other large market for pumps is Japan. And I'll be speaking with them. I'm in Japan calling on this call right now. I'm speaking to them here in the next day or 2 and working with the Japanese to clear the product here in Japan. We're going to do that simultaneously. But it probably still will be somewhere in the fourth quarter by the time we get that cleared. And then we'll switch Japan over. So both those largest international markets will be a 2027 kicked in.

Q: Okay. Great. Appreciate that. And maybe just one more quick one. Glad to hear you're fully moved into the new facility. I think it's 2.5x the size of the previous facility. Correct me if I'm wrong. But any sense as to kind of what level of sales this could support or capacity, however you want to frame it?

A: Well, it is 2.5x the size. That's right. And we were doing $20 million a quarter out of that 2.5x smaller space. So the math of it's pretty equal. We don't see any reason why we can't get to $50 million a quarter in the new facility. And so yes, 2.5x. But unlike the old facility, we're not landlocked where we are. As you might recall, Jack mentioned the cost of construction of the building that we did pay cash and we built it with our cash flow. But we also purchased the 26 acres. The building sits on about 5 of it, 5 or 6 of that. So there's lots of space around us that's ours to -- and the way we constructed the building was so it could easily be expanded into that adjacent space that we own. So we have, I guess, paid forward quite a ways these plenty capacity physically.