IRadimed outlines 2026 revenue of $91M-$96M as 3870 pump ASP lift trends near 20%

Earnings Call Insights: IRadimed (IRMD) Q1 2026

MANAGEMENT VIEW

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"We once again have a very positive performance to announce with the first quarter 2026 revenue of $22 million, a 13% increase over the first quarter of 2025," said (Founder, Chairman, CEO & President Roger Susi), adding that results reflected "solid execution across our product lines" and that revenue was "substantially derived from the... 3860 pump system," alongside "growing revenue support for our Ferro-magnetic Detection System."

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(CEO Susi) updated early 3870 pricing and configuration trends: "we had anticipated that the 3870 pump deal typically its ASP would increase by some 10% to 14%... However... initial quoting and actual orders are showing a lift closer to 20% of 3870 ASP." He also said, "we are seeing that a majority of this new business is for Quad, 4 pump systems rather than simply replacing the older 3860 dual-channel system."

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(CEO Susi) framed the near-term 3860-to-3870 transition as a ramp rather than a sudden uplift: "it will not be a step-change, but rather a controlled ramp," with "declining revenue derived from the older 3860 pump system... offset positively by increasing revenue from the new 3870 system as we ramp up its production."

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"For the 3 months ended March 31, 2026, revenue was $22 million," said (CFO & Corporate Secretary John Glenn), detailing mix and profitability: "Gross Profit for the quarter was $16.8 million with a Gross Margin of 77%" and "Net income was $5.8 million or $0.45 per diluted share on a GAAP basis."

OUTLOOK

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"For the second quarter of 2026, we expect Revenue of $20 million to $21 million, GAAP diluted earnings per share of $0.40 to $0.44, and non-GAAP diluted earnings per share of $0.44 to $0.48," said (CFO Glenn).

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"For the full year 2026, we reaffirm our guidance with a Revenue of $91 million to $96 million, GAAP diluted earnings per share of $1.90 to $2.05, and non-GAAP diluted earnings per share of $2.06 to $2.21," (CFO Glenn) said.

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Versus the prior quarter’s launch timeline language, (CEO Susi) emphasized earlier-stage commercial execution in the U.S.: "we did not launch our sales effort for 3870 until late January" and said Q2 will be constrained by shipments even as orders build: "Q2 Revenue will not fully reflect this high level of exciting order activity."

FINANCIAL RESULTS

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(CFO Glenn) reported segment contributions for Q1 2026, including "IV infusion pump systems contributed $7.7 million" and "Patient vital signs monitoring systems contributed $7.1 million," while "Disposable revenue was $4.9 million" and "Ferro-magnetic Detection System contributed $600,000."

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(CFO Glenn) highlighted expense and cash flow items: "Total Operating Expenses for the quarter were $9.6 million" and "Cash flow from operations was $8.3 million for the quarter," adding "Non-GAAP free cash flow was $7.8 million... after capital expenditures of approximately $500,000."

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(CFO Glenn) noted capital return and balance sheet position: "We ended the quarter with cash and cash equivalents of $56.4 million" and "the company's Board of Directors declared a regular quarterly cash dividend of $0.20 per share... payable on May 29, 2026."

Q&A

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Frank Takkinen, Lake Street Capital Markets, LLC, Research Division: asked why customers are shifting to Quad configurations and whether it is widespread; (CEO Susi) replied, "more than half of these orders we've taken so far have been for this Quad systems," attributing it to customer reaction to the demonstrated setup: "we walk in and we're showing the Quad Stak..." and said order timing has been faster: "orders that we're getting in at this point have been rather quick."

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Frank Takkinen, Lake Street Capital Markets, LLC, Research Division: asked whether Quad orders include better per-pump pricing; (CEO Susi) said, "No," and provided pricing context: "the list price of the previous pump was $20,000" and "the Quad systems... each coming in at more than $100,000."

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Frank Takkinen, Lake Street Capital Markets, LLC, Research Division: asked what drives the plan to add another 1,000 replacement channels per year and whether greenfield is included; (CEO Susi) said, "I'm just talking taking 1,000 out of the installed-base" and added, "Greenfield will be extra," while also stating, "I don't see that we're going to have time to start calling on the greenfield for a while."

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Frank Takkinen, Lake Street Capital Markets, LLC, Research Division: asked about manufacturing and scaling; (CEO Susi) said, "we're trying to take it a bit cautiously," reiterating "130, 135 pumps for this quarter" and describing an intended cadence: "third quarter, we'll plan to double that up again" while emphasizing execution needs: "stabilizing the supply chain."

SENTIMENT ANALYSIS

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Analyst tone was slightly positive and oriented around upside capture and execution capacity, including: "How are you feeling from that standpoint?" and "What are the drivers to that?"

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Management tone was positive in prepared remarks and reinforced confidence around early demand, while tempering near-term revenue translation: (CEO Susi) said interest has been "very gratifying" and called the order pace "a frenzy right now," while also cautioning, "Q2 Revenue will not fully reflect" the order activity.

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Compared with the previous quarter’s tone emphasizing pilot feedback and an April ramp, the current call used more definitive early-commercial language, including "a majority of this new business is for Quad" and "bookings with greater-than-expected ASP," while repeating near-term constraint framing around production ramp pacing.

QUARTER-OVER-QUARTER COMPARISON

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The 3870 narrative shifted from Q4 2025 expectations of ASP "increase 10% to 14%" and planned initial shipment timing to Q1 2026 evidence of early pricing and mix: (CEO Susi) said current quoting and orders show "a lift closer to 20%" and that "more than half" of early orders are Quad configurations.

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Guidance framing remained centered on a second-half 2026 acceleration, but the current quarter added sharper language around Q2 revenue pressure from the 3860 decline and 3870 ramp: "keeps Q2 Revenue somewhat in check."

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Analyst focus narrowed in Q1 2026 to 3870 ordering patterns and manufacturing ramp, versus Q4 2025 when questions also covered gross margin trajectory, disposables/services growth, inventory transition management, and international regulatory timing.

RISKS AND CONCERNS

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(CEO Susi) described a key near-term operational constraint as production capacity and ramp discipline: "The sales team would like us to ship over 200, but we just can't do it," and said the company is prioritizing execution: "We're going to get them right."

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(CEO Susi) flagged supply chain stabilization as part of the ramp risk: "it's a matter of ramping up the know-how and stabilizing the supply chain."

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(CFO Glenn) described tax rate variability driven by timing: "The increase in the effective tax rate... was largely due to the timing of deductions tied to the windfall deduction for equity grants," adding, "we anticipate that the rate will trend down."

FINAL TAKEAWAY

IRadimed management positioned the Q1 2026 quarter as steady performance led by pumps and monitoring, while portraying the 3870 launch as the primary stock-moving catalyst: early orders are showing an ASP lift closer to 20% and a higher-than-expected mix of Quad system purchases. Management simultaneously tempered near-term expectations by calling Q2 a controlled production ramp that will not fully reflect order momentum, while reaffirming full-year 2026 guidance and emphasizing supply chain stabilization and measured scaling as the operational priorities.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/irmd/earnings/transcripts]

MORE ON IRADIMED

* IRADIMED CORPORATION (IRMD) Q1 2026 Earnings Call Transcript [https://seekingalpha.com/article/4897535-iradimed-corporation-irmd-q1-2026-earnings-call-transcript]
* IRADIMED CORPORATION (IRMD) Q4 2025 Earnings Call Transcript [https://seekingalpha.com/article/4868261-iradimed-corporation-irmd-q4-2025-earnings-call-transcript]
* iRadimed Q1 2026 Earnings Preview [https://seekingalpha.com/news/4583061-iradimed-q1-2026-earnings-preview]
* IRadimed targets $100M-plus revenue run rate in 2026 as 3870 pump ramps [https://seekingalpha.com/news/4549681-iradimed-targets-100m-plus-revenue-run-rate-in-2026-as-3870-pump-ramps]
* Seeking Alpha’s Quant Rating on iRadimed [https://seekingalpha.com/symbol/IRMD/ratings/quant-ratings]