iRadimed Q2 Earnings Call Highlights

iRadimed’s new 3870 pump is seeing strong demand: Second-quarter bookings exceeded shipments by more than two times, with 70% of replaced older systems upgraded to higher-priced four-channel pumps. The company plans to produce more than 300 units in the third quarter.

Profitability was pressured by the production ramp: Q2 revenue rose 0.5% to $20.5 million, but gross margin fell to 74% from 78% as launch-related manufacturing costs increased. Management expects startup costs to fall by more than 50% in Q3 and efficiency to improve further in Q4.

Recurring revenue and guidance remained positive: Monitoring revenue increased 12%, disposables rose 14%, and the company reaffirmed its full-year 2026 outlook while guiding for Q3 revenue of $23 million to $24.5 million. iRadimed also declared a quarterly dividend of $0.20 per share.

i Radimed NASDAQ: IRMD reported second-quarter 2026 revenue of $20.5 million, up 0.5% from a year earlier, as the company began general-release production of its new 3870 MRI IV pump system and worked through the costs associated with an initial manufacturing ramp. GAAP net income was $5.2 million, or $0.41 per diluted share, compared with $5.8 million, or $0.45 per share, in the second quarter of 2025. Non-GAAP net income was $5.9 million, or $0.46 per diluted share, versus $6.4 million, or $0.49 per share, a year ago.

President and Chief Executive Officer Roger Susi said the company manufactured more than 130 of the new 3870 pumps during the quarter, meeting its planned target of 130 to 135 units. The launch required substantial labor and overhead, contributing to a decline in gross margin.

3870 Pump Demand Exceeds Shipments Susi said bookings for the new 3870 pump exceeded the number of units shipped by more than two times during the quarter, citing strong early customer acceptance and demand tied largely to replacement opportunities within the company’s existing installed base. The company estimates that approximately 6,400 3860/3861 pump channels in the U.S. are more than five years old and eligible for replacement. iRadimed had been selling roughly 1,100 3860 channels annually and is targeting an additional 1,000 channels per year through replacement sales of older systems. Management said 70% of the older two-channel systems replaced during the period were replaced with four-channel, or quad, pump systems. Susi said those quad systems carried average selling prices above $110,000 and provided more than a 20% increase in average selling price per pump. “The demand is exceeding our expectations in both the number of pumps and the ASP,” Susi said.

The company expects to manufacture more than 300 3870 pumps in the third quarter, including a target of more than 338 units cited by management. Susi said iRadimed had already added staffing in prior months to prepare for the ramp and does not expect additional staffing to be the principal driver of costs going forward. Instead, he characterized the remaining challenge as a manufacturing learning curve, with workers gaining experience and improving efficiency. Susi said startup costs tied to the launch are expected to decline by more than 50% in the third quarter from second-quarter levels. The company expects further efficiency gains in the fourth quarter, when it anticipates approaching historical manufacturing efficiency levels.

Monitoring, Recurring Revenue Growth MRI-compatible patient vital signs monitoring systems generated $6.7 million in second-quarter revenue, an increase of 12% from the prior-year period. Susi said the domestic sales force booked a record 71 patient monitors while maintaining a high average selling price. Ferromagnetic detection system revenue was $0.8 million, up 57% year over year. Recurring reve...