iRadimed (NASDAQ:IRMD) reported second-quarter 2025 results that management said marked the company’s 16th consecutive quarter of record revenues, driven by strength in its MRI-compatible infusion pump business and continued growth in patient monitoring.
For the quarter ended June 30, 2025, revenue rose 14% year over year to $20.4 million, while gross margin held steady at 78%. GAAP diluted earnings per share increased 18% to $0.45, according to CFO Jack Glenn. President and CEO Roger Susi highlighted the quarter’s performance as the company prepares to launch its newly cleared MRidium 3870 IV pump system.
Quarterly performance led by pumps; domestic sales increased
- MRI-compatible IV infusion pump systems: $8.2 million, up 19% year over year
- Patient vital signs monitoring systems: $5.9 million, up 9%
- Disposables: $4.2 million, up 14% on increased utilization
Domestic revenue rose 18% to $18.2 million, while international sales declined 9% to $2.2 million. Domestic revenue represented 89% of total revenue in the quarter, compared with 86% in the prior-year period, Glenn said.
Gross profit was $16.0 million, up 14% from $14.0 million a year earlier, with gross margin “consistent with the prior year.” Glenn said margin performance benefited from “increased overhead absorption as we built inventory ahead of the new facility’s opening.”
Operating expenses increased 9% to $9.2 million, driven by higher sales and marketing spending and modest increases in general and administrative costs. Research and development expense was about $0.9 million, essentially flat, Glenn said. Income from operations grew 21% to $6.8 million, while net income rose to $5.8 million from $4.9 million a year ago.
FDA clearance for MRidium 3870 sets stage for replacement cycle
Susi told investors the company received FDA clearance on May 22 for its MRidium 3870 IV pump systems, calling the action “long-awaited and hard-fought.” He said the new pump platform is expected to drive a replacement cycle for older installed units and support the company’s growth trajectory into 2026.
“With this clearance and the sales growth that the new pump will ignite will prove to be a seminal event,” Susi said, adding that the company’s revenue trajectory “looks to be passing the $100 million revenue run rate as we progress through 2026.”
Management outlined its view of the replacement opportunity by referencing the installed base of its existing 3860 pumps. Susi said that in the U.S. market alone there are “over 6,200 five-plus-year-old 3860” pump channels “up for replacement,” and that the company currently sells about 1,000 channels annually in the domestic market. The company’s target, he said, is to add another 1,000 channels annually through upgrade and replacement sales in 2026, with a further ramp beyond that in subsequent years.
As an illustrative framework, Susi said that if the company sells 2,000 3870 pump channels annually in the domestic market at a “slightly higher” average selling price, domestic pump device revenue expected at $28 million in 2025 could become “nearly $50 million.” He added that adding disposables, international sales, and the monitoring business supports his confidence in reaching a $100 million revenue run rate, while noting on the call that he had not factored in potential market expansion benefits from improved usability.
Backlog remains elevated; transition plan limits near-term 3870 revenue contribution
In response to questions from Lake Street Capital Markets analyst Frank Takkinen, Glenn said iRadimed had a “record backlog as of June 30,” made up of both pumps and “very strong monitoring backlog as well,” which he said provides “good visibility into the second half of the year.”
Susi said demand for the current MRidium 3860+ pump remains strong and that iRadimed is managing the timing of when the sales team begins broadly discussing the 3870. “They’re not doing that at this point,” he said, adding that the company expects to begin broader discussions “certainly somewhere in December.” Until that point, he said, orders for the legacy pump should remain “rather significant, quite strong.”
ROTH analyst Jason Wittes asked about backlog fulfillment timing, and Susi said lead times differ by product line. He said the monitoring backlog is about “four weeks, five weeks,” while pump backlog is running “about five months, five to six months.”
Susi also detailed the initial commercialization approach for the 3870. He said iRadimed plans to sell “a few 3870s” in the fourth quarter, which he characterized as “insignificant to revenue,” with the primary goal being feedback from a small group of early users. Wittes later asked if there would be upgrades from the backlog this year, and Susi said the company is “only targeting a limited number of facilities, basically three,” with plans to deliver “40 to 50 of the new pumps” for observation and learning.
Looking to early 2026, Susi said the company expects pump bookings in the first quarter to be weak during the transition, even if reported revenue remains supported by the existing backlog. He said bookings should improve by the second quarter and “accelerate through Q3 and Q4.”
Pricing, margins, and external factors
Wittes also asked about pricing for the new 3870 pump. Susi said the company expects the average selling price to be “around 12-ish%” higher than the existing pump. He added that this should be reflected in gross margin and “might actually be reflected a little bit more so even in the gross margin,” though he did not provide specific margin targets tied to the new platform.
Susi also revisited two topics discussed in the prior quarter: tariffs and potential effects from DOGE-related changes at government agencies. On tariffs, he said that while tariffs had been collected on some components, “the actual impact is still very small,” but that iRadimed expects to have better visibility as tariff policies stabilize and pre-tariff inventories are depleted. On DOGE-related effects, Susi said impacts “did not materialize.”
Updated guidance raised; dividend reiterated
Management raised full-year guidance following what Susi called a strong first half. For the third quarter of 2025, iRadimed expects revenue of $20.5 million to $20.9 million, representing 12% to 14% growth over Q3 2024 revenue of $18.3 million. The company guided to GAAP diluted EPS of $0.41 to $0.45 and non-GAAP diluted EPS of $0.45 to $0.49, with Susi noting expectations are “tempered by anticipated but short-lived operational inefficiencies during our facility transition,” as the company has moved into a new building.
For the full year 2025, iRadimed now expects revenue of $80.0 million to $82.5 million, up from its prior range of $78.0 million to $82.0 million. GAAP diluted EPS guidance increased to $1.60 to $1.70 from $1.55 to $1.65, and non-GAAP diluted EPS increased to $1.76 to $1.86 from $1.71 to $1.81. Susi said the ranges include about $2.6 million in stock-related compensation expense net of tax for the year (and $0.6 million in Q3).
Glenn said the company ended the quarter with $53.0 million in cash and cash equivalents, up from $52.2 million at year-end 2024. Operating cash flow was $7.7 million in Q2 and $12.0 million for the first half. Free cash flow was $4.9 million for the quarter and $5.3 million for the first half, reflecting $6.7 million in capital expenditures year to date tied primarily to the new facility. Glenn said iRadimed expects “final payments of approximately $1.1 million” for the facility in Q3, bringing total construction cost to about $12.6 million.
Susi also reaffirmed the company’s quarterly dividend, saying iRadimed declared a $0.17 per share dividend for Q3 payable on August 28, 2025.
In closing remarks, Susi said the company now has “very clear vision” for “many more years of rewarding growth” following the new pump clearance, after what he described as “white-knuckle twists and turns” related mainly to the clearance process.
About iRadimed (NASDAQ:IRMD)
iRadimed Corporation designs, develops and manufactures medical device solutions for MRI environments. The company’s core product line consists of MRI-compatible infusion systems engineered to deliver precise fluid management during magnetic resonance imaging procedures. These devices are crafted to minimize electrical noise and interference, ensuring both patient safety and image clarity in diagnostic and interventional settings.
In addition to infusion pumps, iRadimed offers a range of complementary accessories and monitoring solutions tailored to MRI suites.
