iRadimed (NASDAQ:IRMD) executives highlighted continued momentum in the company’s MRI-focused product portfolio as the medical device maker reported record fourth-quarter and full-year 2025 results and outlined the commercial ramp for its new 3870 MR IV infusion pump system.
Record revenue streak extends to 18 consecutive quarters
President and CEO Roger Susi said iRadimed delivered its 18th consecutive quarter of record revenue, with fourth-quarter 2025 revenue of $22.7 million, up 17% from $19.4 million in the prior-year quarter and above the company’s prior guidance. Full-year 2025 revenue reached $83.8 million, an increase of 14% from $73.2 million in 2024.
Quarterly and annual profitability, margins, and cash
CFO Jack Glenn reported fourth-quarter 2025 gross profit of $17.0 million for a 75% gross margin. For the full year, gross profit was $64.3 million with gross margin of approximately 77%, consistent with 2024. Susi also pointed to gross margins of approximately 77% for the year and 75% for the quarter.
Operating expenses were $9.9 million in the fourth quarter and $38.2 million for the full year, which Glenn said reflected higher general and administrative expenses to support growth, along with modest increases in sales and marketing and R&D. Income from operations was $7.1 million for the quarter and $26.1 million for the year.
Net income for the quarter was $6.4 million, or $0.50 per diluted share, while non-GAAP net income was $7.0 million, or $0.54 per diluted share. For full-year 2025, net income was $22.5 million, or $1.75 per diluted share, and non-GAAP net income was $24.8 million, or $1.93 per diluted share.
Glenn said iRadimed ended 2025 with $51.2 million in cash and cash equivalents. Cash flow from operations was $5.9 million in the quarter and $24.9 million for the year. Non-GAAP free cash flow was $5.5 million in the fourth quarter and $16.5 million for the year, after capital expenditures “primarily related to the new facility.”
Product line performance and revenue mix
Glenn broke out fourth-quarter revenue contributions by major category:
- MRI-compatible IV infusion pump systems: $9.1 million, up 20% year over year
- Patient vital signs monitoring systems: $7.1 million, up 7.5%
- Disposable revenue: $4.3 million, up 18%
Disposable growth reflected increased utilization of iRadimed’s devices, Glenn said, adding that the company believes utilization could increase further over time with the 3870 due to its user interface and related improvements.
Domestic sales represented 81% of total revenue in the fourth quarter and 84% for the full year, reflecting what Glenn described as consistent strong U.S. performance, “especially in the domestic pump business.”
3870 pump launch strategy and replacement opportunity
A central focus of the call was iRadimed’s planned rollout of the 3870 MR IV pump. Susi reiterated the company’s expectation that 3870 pump deal average selling price will rise 10% to 14% and said the most significant growth driver is expected to come from replacing older installed pumps.
He pointed to replacement dynamics already seen with the legacy 3860 model: Susi said the 3860 delivered approximately 20% growth in fiscal 2025 after iRadimed limited extended maintenance offerings to pumps under seven years old, a change that increased replacement sales for a portion of pumps in that age group. He added that a “majority” of 7+-year-old pumps remain to be replaced, along with many more that are five years and older.
In the U.S. market, Susi said there are approximately 6,400 5+-year-old 3860/3861 pump channels that could be replaced. He said iRadimed currently sells about 1,100 such channels annually into the domestic market and plans to target an additional 1,000 channels per year through replacement sales starting in Q2 2026 and continuing through the rest of 2026. Susi emphasized that even replacing 1,000 channels annually would still leave “many thousands more” to replace in future years.
Susi said that for domestic business alone, selling “north of” 2,000 3870 pump channels annually at the higher anticipated ASP could bring the company close to a $50 million annual revenue run rate for pumps. With disposables and maintenance, international sales, and the MRI monitoring business added, he said that underpins management’s confidence in reaching a $100 million-plus revenue run rate during 2026.
On launch timing, Susi said iRadimed delivered an initial order of 23 3870 systems in December and is providing elevated clinical support and monitoring through February and into early March to ensure device stability and quality ahead of a broader release. He said the general sales release is expected to start in April. Given hospital sales cycles, Susi said the company expects bookings to build in Q2 and ramp significantly in the second half of 2026.
Susi added that iRadimed expects to maintain quarterly revenue in the first half of 2026, driven by growth in MRI monitoring and the 3860 pump backlog, while anticipating the initial April shipments of about 100 to 130 3870 pump channels.
Early customer feedback, margin outlook, and pipeline updates
During Q&A, Susi said early feedback on the 3870 has been “very positive.” Beyond the initial user site, he said iRadimed already had additional orders on the books for “maybe another 15 or 20 pumps.” He also said the company launched the product to its broader sales force roughly two weeks prior to the call, after initially using a small group of specialists to show the system to select customers.
Susi said iRadimed is making “tweaks here and there” based on real-world user input as part of the prelaunch process, describing the effort as intended to optimize the product before broader shipment volumes.
Asked about margins, Glenn said gross margin in the first half of 2026 would likely be “kind of in line” with recent levels, with potential for improvement in the second half as volumes rise and as the company realizes the higher ASP associated with the 3870. He noted the company has previously achieved gross margins around 78% and said margins could trend toward that range and “maybe possibly” improve over time.
On R&D priorities, Susi said iRadimed has begun work on an updated next-generation MRI monitor, noting the current monitor was launched about seven years ago and the company plans to have an updated monitor on the market in 2028.
Regarding international regulatory timelines for the 3870, Susi said the company expects a CE mark by the end of 2026. For Japan, he said clearance would likely take longer, with expectations for approval “until next summertime”—clarifying he meant the following summer, not this summer.
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.
