Iradimed (IRMD) Q3 2026 earnings review
Iradimed's new pump lifts sales, but management trims the outlook
Iradimed, a maker of MRI-safe infusion pumps and patient monitors, returned to record sales while trimming its full-year targets. Revenue rose 14% from a year ago to $24.2 million as shipments of the new 3870 pump rebounded from the second-quarter model switch. Gross margin recovered two percentage points from last quarter to 76%, and chief executive Roger Susi set a fourth-quarter plan that trims the top of the full-year outlook.
| Revenue | $24.2M +14% from a year ago |
|---|---|
| Gross profit margin | 76% up from 74% last quarter; 78% a year ago |
| IV infusion pump revenue | $8.7M +35% from last quarter |
| Full-year revenue outlook | Cut $1.2M middle of the range: $92.4M (+10%) |
⚖️ Verdict: 🟢 Bullish
The story got better because the risk of a stalled factory ramp faded as pump sales jumped 35% from last quarter and gross margin turned upward. The trim to the full-year ceiling simply removes an extreme fourth-quarter target of $27 million that the old plan implied by our math. One caution: the release gave no unit shipment count and gross margin still trails last year by two percentage points.
The question now is whether replacing older two-pump units with four-pump setups creates lasting growth or just a one-time upgrade wave across a fixed pool of hospitals. If the larger setups lift ongoing supply usage and bring in new hospitals, growth holds up; if they only work through existing sites, device sales eventually slow. Single-use supply growth and order intake over the next two quarters will tell.
🐂 Bull Case
New Pump Shipments Lifted Revenue to a Record
Iradimed makes non-magnetic intravenous (IV) infusion pumps that can operate safely near magnetic resonance imaging (MRI) scanners. The medical-device maker is replacing its older 3860 pump with a newer model called the 3870. Chief executive Roger Susi said record third-quarter revenue of $24.2 million was "driven by the continued successful launch of our new 3870 MR IV pump".
- Infusion pump revenue: $8.7 million, up 35.1% from last quarter and up 4.2% from a year ago
- US pump channels ordered: "a 45% year-over-year increase in domestic pump channels booked"
- Four-pump orders: "over 70% of pump bookings in the quarter were for our ‘quad stack’ configuration of four pumps on a single IV pole"
This matters because the quad stack doubles the number of pump channels at each MRI scanner from the old two-pump setup. Last quarter, pump sales fell 21.5% from a year ago as the factory switched models, so the third-quarter rebound shows shipments are catching up with orders.
What to watch: fourth-quarter pump revenue in the full-year report. Another sequential rise will show that hospitals are installing the four-pump systems at a steady pace.
Vital Signs Monitors and Disposables Grew Over 16%
Alongside its pumps, Iradimed sells the 3880 system, a non-magnetic monitor that tracks a patient's vital signs during an MRI scan, as well as single-use tubing and multi-year maintenance plans. Susi noted that record quarterly orders were "driven by another record number of monitor units being booked".
- Vital signs monitor revenue: $8.0 million, up 16.5% from a year ago
- Single-use disposables revenue: $5.0 million, up 20.6% from a year ago
- Extended maintenance revenue: $0.8 million, up 30.7% from a year ago
These lines carried the business while the factory switched pump models earlier this year, and both accelerated this quarter. Because each four-pump system uses more single-use tubing than a two-pump unit, disposables and maintenance plans add recurring sales after each device is installed.
What to watch: disposables growth in the fourth quarter. Growth staying near 20% will confirm that newly installed four-pump systems are raising single-use supply orders.
Gross Margin Rebounded Two Points From Q2
Gross margin — the share of sales left after the cost of making the products — fell to 74.1% in the second quarter when workers started building the 3870 pump. In the third quarter, Susi said "we began realizing the efficiencies we anticipated with gross margin improving sequentially as expected". Cost of revenue dropped by 2.2 percentage points of sales from the second quarter, lifting gross margin to 76.3%.
The rebound eases the concern that the four-pump setup carries permanently higher manufacturing costs. One quarter of progress narrows the gap, but it does not settle the margin question until production reaches full speed.
What to watch: fourth-quarter gross margin. A reading above 78% will confirm that start-up inefficiencies have cleared.
International Sales Rose 37% Before the New Pump Arrives
Iradimed earns most of its money in the United States, while overseas hospitals still buy the older 3860 pump because the 3870 awaits foreign regulatory approvals. Domestic sales made up 82% of revenue in the third quarter, down from 85% a year ago. By our math, international sales grew 37.0% from a year ago to $4.4 million, following a 69% jump in the second quarter.
Overseas distributors are adding revenue growth even before they can sell the new pump. That gives the Orlando-based group an extra source of demand while domestic hospitals focus on replacing older units.
What to watch: international share of revenue in the fourth quarter. Holding near 18% while US pump shipments rise will show overseas demand is keeping pace.
🐻 Bear Case
Iradimed Cut the Top of Its Full-Year Plan
Susi highlighted fourth-quarter expected revenue of $25.0 million to $26.5 million, "attaining a $100.0 million revenue run rate" on an annualised basis. In the next sentence, the chief executive lowered the top of the full-year revenue outlook from $96.0 million to $93.1 million.
- Full-year revenue outlook: $91.6–93.1 million, down $1.15 million at the middle of the range by our math
- Fourth-quarter revenue outlook: $25.0–26.5 million, below the $27.3 million middle of the range implied by the prior plan by our math
- Full-year profit per share outlook, excluding one-offs: $2.07–2.11, down from $2.06–2.21
The cut shows that the prior full-year plan required a fourth-quarter production jump that the factory will not reach this year. The release also gave no unit count for third-quarter 3870 shipments, so the company did not confirm whether it met its goal of building over 300 pumps.
What to watch: fourth-quarter revenue against the $25.0–26.5 million plan. A finish below $25.0 million would mean factory output is still holding back deliveries.
Gross Margin Still Trails Last Year by Two Points
Even with the sequential bounce, third-quarter gross margin of 76.3% stayed 1.5 percentage points below the 77.8% recorded a year ago. Cost of revenue took 23.7% of sales, up from 22.2% in the third quarter of 2025, as the factory ramped up the new pump.
That cost drag kept third-quarter profit per share in the bottom half of the company's plan and led Iradimed to trim the top of its full-year GAAP profit outlook by 11 cents. Until gross margin passes 78%, the four-pump system has not matched the profitability of the older line.
What to watch: fourth-quarter cost of revenue as a share of sales. A figure above 22% would show that the new pump configuration costs more to build than the old one.
Order Backlog and New Pump Split Stay Undisclosed
Iradimed reports all infusion pump sales on a single line ($8.7 million in the third quarter) without separating the new 3870 model from the outgoing 3860. In the release, Susi cited record orders and "a 45% year-over-year increase in domestic pump channels booked", but gave no dollar backlog or unit shipment figure.
Without the split or the order book in dollars, investors cannot check how fast the old pump is winding down or how much of next year's sales are already under contract.
What to watch: the revenue footnote in the third-quarter 10-Q filing and commentary on the earnings call. Any unit shipment number will show how much of the $8.7 million came from the new 3870.
Risks this quarter didn't answer
Five standing concerns from prior quarters received no new information in the third-quarter earnings release.
- Size of the replacement pool: no count of how many of the roughly 6,400 older pump channels have already been replaced, which the earnings call may address.
- Delivery wait times: no update on whether record orders are pushing delivery times back toward four to six months.
- Foreign approvals for the 3870 pump: no timeline update on European or Japanese regulatory clearances expected for 2027.
- Executive concentration: founder Roger Susi remains president, chief executive and chairman with no succession plan disclosed in the release.
- Tariff refunds: no figure in the release on potential duty recoveries, which the quarterly 10-Q filing may detail.
💲 Other KPIs
Total deferred revenue — cash customers have paid upfront for extended maintenance plans and orders not yet delivered — rose to $7.87 million by our math, up 14.8% from the end of 2025. The balance grew by $0.33 million from the second quarter as hospitals attached multi-year service agreements to new devices.
Free cash flow rose 18.6% from a year ago to $6.78 million, or 28.0% of sales by our math. Last year's third quarter included $1.3 million of spending to finish the new Orlando factory; excluding that building cost, free cash flow edged down 3.4% by our math because of higher tax payments and inventory purchases.
Cash on the balance sheet rose by $4.2 million during the quarter to $63.3 million, up from $51.2 million at the end of 2025, with no debt. The medical-device maker kept its regular quarterly dividend at $0.20 per share, which uses about $2.6 million of cash each quarter.
🔮 Guidance
Cut against what the prior full-year plan implied. The new fourth-quarter outlook calls for 13.5% growth from a year ago and 6.4% from the third quarter at the middle of the range, by our math. That $25.75 million middle sits $1.55 million below what the old full-year range pointed to.
Cut. Iradimed raised the bottom of the range by $0.6 million and lowered the top by $2.9 million, cutting the middle of the range by $1.15 million to 10.2% annual growth by our math. After holding the $91.0–96.0 million range for three quarters, the company narrowed it with one quarter left.
Cut against what the prior full-year plan implied. The fourth-quarter profit plan points to 10.0% growth from a year ago at the $0.55 middle of the range, by our math. That is 5 cents below the $0.60 middle implied by the previous full-year outlook.
Cut. The company kept the $1.90 floor and lowered the ceiling by 11 cents, taking the middle of the range down to $1.92, or 9.7% growth from 2025 by our math. The range had stood at $1.90–2.05 since the start of the year.
New. Profit per share excluding stock-based compensation is planned at 9.3% growth from a year ago at the $0.59 middle of the range, by our math, compared with 17.0% growth in the third quarter.
Cut. The middle of the range moved down to $2.09, or 8.3% growth for the year by our math. Across four quarters, the middle of this outlook went from $2.135 to $2.165 in the second quarter and down to $2.09 today.
Unchanged. The full-year estimate for stock-based compensation net of tax stays at about $2.5 million, leaving about $0.7 million for the fourth quarter after $1.8 million in the first nine months.
❓ Key Questions
How many 3870 pumps did the factory build in Q3?
Last quarter management aimed to more than double production from 130–135 units to over 300 units in the third quarter. The release did not give the unit count, which is needed to tell whether factory capacity or customer timing drove the full-year outlook cut.
What is the dollar backlog for pumps and monitors?
Susi reported record bookings and a 45% jump in domestic pump channels ordered, but did not state the backlog in dollars or units. Disclosing the order book would show how much of 2027 revenue is already contracted.
How did Q3 pump sales split between 3870 and 3860?
Infusion pump revenue rose 35% from the second quarter to $8.7 million, but both models sit on one line. Knowing the split would show the actual average selling price of the new four-pump systems and how little of the old model remains.
Will gross margin pass 78% in the fourth quarter?
Gross margin improved from 74% to 76% in the third quarter, still below last year's 78%. The fourth-quarter profit plan implies around 55 cents per share at the middle of the range, leaving it unclear whether the factory will reach record margins by year-end.