IRADIMED CORP

Previous wording

We generate revenue from the sale of MRI compatible medical devices and related products, accessories, extended warranty agreements, services related to maintaining our products and the sale of disposable products used with our devices. The principal customers for our MRI compatible products include hospitals and acute care facilities, both in the United States and internationally. As of June 30, 2025, our direct U.S. sales force consisted of 27 field sales representatives, 4 regional sales directors and supplemented by 9 clinical application specialists. Internationally, we have distribution agreements with independent distributors selling our products.

Current wording

We generate revenue from the sale of MRI compatible medical devices and related products, accessories, extended maintenance agreements, services related to maintaining our products and the sale of disposable products used with our devices. The principal customers for our MRI compatible products include hospitals and acute care facilities, both in the United States and internationally. As of September 30, 2025, our direct U.S. sales force consisted of 29 field sales representatives, 4 regional sales directors and supplemented by 9 clinical application specialists. Internationally, we have distribution agreements with independent distributors selling our products.

Previous wording

Selling cycles for our devices have varied widely and have historically ranged between three and six months in duration. We also enter into agreements with integrated delivery networks (“IDNs”) and healthcare supply contracting companies, which are commonly referred to as group purchasing organizations (“GPOs”) in the U.S., which enable us to sell and distribute our products to their member hospitals. GPOs negotiate volume purchase prices for hospitals, group practices, and other clinics that are members of a GPO. Under our GPO agreements, we are required to pay the GPOs a fee of three percent of the sales of our products to members of the GPO. Sales to participating IDNs do not have an associated fee.

Current wording

sell and distribute our products to their member hospitals. GPOs negotiate volume purchase prices for hospitals, group practices, and other clinics that are members of a GPO. Under our GPO agreements, we are required to pay the GPOs a fee of three percent of the sales of our products to members of the GPO. Sales to participating IDNs do not have an associated fee.

Previous wording

For the quarter ended June 30, 2025, our revenue increased by $2.5 million, or 14% to $20.4 million, compared to $17.9 million for the quarter ended June 30, 2024. Income before the provision for income taxes was $7.3 million for the quarter ended June 30, 2025, compared to $6.3 million for the quarter ended June 30, 2024. Net income was $5.8 million, or $0.45 per diluted share, in the quarter ended June 30, 2025, compared to $4.9 million, or $0.38 per diluted share in the quarter ended June 30, 2024.

Current wording

For the quarter ended September 30, 2025, our revenue increased by $2.9 million, or 16% to $21.2 million, compared to $18.3 million for the quarter ended September 30, 2024. Income before the provision for income taxes was $7.3 million for the quarter ended September 30, 2025, compared to $6.4 million for the quarter ended September 30, 2024. Net income was $5.6 million, or $0.43 per diluted share, in the quarter ended September 30, 2025, compared to $5.0 million, or $0.40 per diluted share in the quarter ended September 30, 2024.

Previous wording

The Company plans an initial strategic rollout of the newly FDA-cleared MRidium® 3870 infusion pump deployment to select healthcare facilities in the fourth quarter of 2025, with product shipments growing towards full commercial distribution throughout 2026.

Current wording

The Company plans an initial strategic rollout of the newly FDA-cleared MRidium® 3870 infusion pump to select healthcare facilities in the fourth quarter of 2025, with product shipments growing towards full commercial distribution throughout 2026.

Previous wording

On July 4, 2025, the OBBBA was enacted into law in the U.S. and includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax

Current wording

On July 4, 2025 OBBBA was enacted in the U.S. OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions including the acceleration of tax deductions for qualified property and research expenditures. The Company has completed an initial assessment of OBBBA’s impact on its financial statement and does not expect a material change in its annual effective rate.

Previous wording

The discussion and analysis of our financial condition and results of operations are based on our unaudited condensed financial statements, which we have prepared in accordance with GAAP. The preparation of these unaudited condensed financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the unaudited condensed financial statements as well as the reported revenue and expenses during the reporting periods. On an ongoing basis, we evaluate our estimates and judgments. We base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

Current wording

statements as well as the reported revenue and expenses during the reporting periods. On an ongoing basis, we evaluate our estimates and judgments. We base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

Previous wording

Comparison of the Three Months Ended and the Six Months Ended June 30, 2025 and 2024

Current wording

Comparison of the Three Months Ended and the Nine Months Ended September 30, 2025 and 2024

Previous wording

For the three months ended June 30,2025, total revenue increased by $2.5 million, or 14%, to $20.4 million from $17.9 million for the same period in 2024. This is attributed to continued demand for our IV infusion pump system, disposables, amortization of extended warranty revenue, and modifications to our sales incentive plan for patient vital signs monitoring systems.

Current wording

For the three months ended September 30,2025, total revenue increased by $2.9 million, or 16%, to $21.2 million from $18.3 million for the same period in 2024. This increase is primarily attributed to continued demand for our IV infusion pump system, disposables, amortization of extended maintenance revenue, and modifications to our sales incentive plan for patient vital signs monitoring systems.

Previous wording

Revenue from sales of devices increased by $1.9 million, or 15%, to $14.6 million for the three months ended June 30, 2025, from $12.7 million for the same period in 2024. Revenue from the amortization of extended warranty agreements increased by $24 thousand, or 4%, to $592 thousand for the three months ended June 30, 2025, from $568 thousand for the three months ended June 30, 2024. Revenue from sales of our disposables increased by $0.5 million, or 14%, to $4.2 million for the three months ended June 30, 2025, from $3.7 million for the same period in 2024. Revenue from the services and other increased by $32 thousand, or 3%, to $1.0 million for the three months ended June 30, 2025, from $967 thousand for the three months ended June 30, 2024.

Current wording

Revenue from sales of devices increased by $2.6 million, or 20%, to $15.6 million for the three months ended September 30, 2025, from $13.0 million for the same period in 2024. Revenue from the amortization of extended maintenance agreements increased by $29 thousand, or 5%, to $613 thousand for the three months ended September 30, 2025, from $584 thousand for the three months ended September 30, 2024. Revenue from sales of our disposables increased by $0.4 million, or 12%, to $4.1 million for the three months ended September 30, 2025, from $3.7 million for the same period in 2024. Revenue from the services and other decreased by $171 thousand, or 16%, to $0.9 million for the three months ended September 30, 2025, from $1.0 million for the three months ended September 30, 2024.

Previous wording

For the six months ended June 30,2025, total revenue increased by $4.4 million, or 12%, to $39.9 million from $35.5 million for the same period in 2024. This is attributed to continued demand for our IV infusion pump system, disposables, amortization of extended warranty revenue, and modification to sales incentive plan for patient vital signs monitoring systems.

Current wording

For the nine months ended September 30,2025, total revenue increased by $7.2 million, or 13%, to $61.1 million from $53.9 million for the same period in 2024. This increase is primarily attributed to continued demand for our IV infusion pump system, disposables, amortization of extended maintenance revenue, and modification to sales incentive plan for patient vital signs monitoring systems.

Previous wording

Revenue from sales in the U.S. increased by $2.7 million, or 17%, to $18.2 million for the three months ended June 30, 2025, from $15.5 million for the same period in 2024. Revenue from sales internationally decreased by $0.2 million, or 8%, for the three months ended June 30, 2025 to $2.2 million, from $2.4 million for the same period in 2024. Domestic sales accounted for 89% of revenue for the three months ended June 30, 2025, compared to 86% for the same period in 2024.

Current wording

Revenue from sales in the U.S. increased by $8.2 million, or 18%, to $52.3 million for the nine months ended September 30, 2025, from $44.1 million for the same period in 2024. Revenue from sales internationally decreased by $0.9 million, or 9%, for the nine months ended September 30, 2025 to $8.9 million, from $9.8 million for the same period in 2024. Domestic sales accounted for 85% of revenue for the nine months ended September 30, 2025, compared to 82% for the same period in 2024.

Previous wording

Revenue from sales of devices increased by $3.0 million, or 12%, to $27.6 million for the six months ended June 30, 2025, from $24.6 million for the same period in 2024. Revenue from the amortization of extended warranty agreements increased by $0.1 million, or 9%, to $1.2 million for the six months ended June 30, 2025, from $1.1 million for the six months ended June 30, 2024. Revenue from sales of our disposables increased by $1.4 million, or 19%, to $9.2 million for the six months ended June 30, 2025, from $7.7 million for the same period in 2024. Revenue from the services and other decreased by $0.2 million, or 9%, to $2.0 million for the six months ended June 30, 2025, from $2.2 million for the six months ended June 30, 2024.

Current wording

Revenue from sales of devices increased by $5.6 million, or 15%, to $43.2 million for the nine months ended September 30, 2025, from $37.6 million for the same period in 2024. Revenue from the amortization of extended maintenance agreements increased by $126 thousand, or 8%, to $1.8 million for the nine months ended September 30, 2025, from $1.6 million for the nine months ended September 30, 2024. Revenue from sales of our disposables increased by $1.9 million, or 17%, to $13.3 million for the nine months ended September 30, 2025, from $11.4 million for the same period in 2024. Revenue from the services and other decreased by $0.3 million, or 9%, to $2.9 million for the nine months ended September 30, 2025, from $3.2 million for the nine months ended September 30, 2024.

Previous wording

For the six months ended June 30, 2025, our cost of revenue increased by $1.0 million, or 12%, to $9.1 million from $8.1 million for the same period in 2024. For the six months ended June 30, 2025, our gross profit increased by $3.4 million, or 12%, to $30.8 million from $27.4 million for the same period in 2024. Gross profit margin remained at 77% for both the six months ended June 30, 2025 and 2024.

Current wording

For the three months ended September 30, 2025, our cost of revenue increased by $0.6 million, or 14%, to $4.7 million from $4.1 million for the same period in 2024. For the three months ended September 30, 2025, our gross profit increased by $2.3 million, or 16%, to $16.5 million from $14.2 million for the same period in 2024. For the three months ended September 30, 2025, gross profit margin increased to 78% compared to 77% for the same period in 2024.

Previous wording

For the three months ended June 30, 2025 our cost of revenue increased by $0.5 million, or 15%, to $4.5 million from $3.9 million for the same period in 2024. For the three months ended June 30, 2025, our gross profit increased by $2.0 million, or 14%, to $16.0 million from $14.0 million for the same period in 2024. Gross profit margin remained at 78% for both the three months ended June 30, 2025 and 2024.

Current wording

For the nine months ended September 30, 2025, our cost of revenue increased by $1.5 million, or 13%, to $13.8 million from $12.3 million for the same period in 2024. For the nine months ended September 30, 2025, our gross profit increased by $5.7 million, or 14%, to $47.3 million from $41.6 million for the same period in 2024. Gross profit margin remained at 77% for both the nine months ended September 30, 2025 and 2024.

Previous wording

For the three months ended June 30, 2025, general and administrative expense increased by $0.2 million, or 4%, to $4.3 million from $4.1 million for the same period in 2024. This increase is primarily due to higher legal and professional expenses, regulatory consulting, software maintenance, and increased payroll and benefit expenses.

Current wording

For the three months ended September 30, 2025, general and administrative expense increased by $0.4 million, or 10%, to $4.4 million from $4.0 million for the same period in 2024. This increase is primarily due to higher legal and professional expenses, software maintenance, and increased payroll and benefit expenses.

Previous wording

For the six months ended June 30, 2025, general and administrative expense increased by $0.8 million, or 10%, to $8.9 million from $8.1 million for the same period last year. This increase is primarily due to higher legal and professional expenses, regulatory consulting, and payroll and benefits expenses.

Current wording

For the nine months ended September 30, 2025, general and administrative expense increased by $1.1 million, or 9%, to $13.2 million from $12.1 million for the same period last year. This increase is primarily due to higher legal and professional expenses, regulatory consulting, and payroll and benefits expenses.

Previous wording

For the three months ended June 30, 2025, sales and marketing expense increased by $0.5 million, or 15%, to $4.0 million from $3.5 million for the same period in 2024. This increase is primarily due to higher sales commissions, sales activities expenses, and payroll and benefits expenses.

Current wording

For the three months ended September 30, 2025, sales and marketing expense increased by $0.8 million, or 21%, to $4.6 million from $3.8 million for the same period in 2024. This increase is primarily due to higher sales commissions, sales activities expenses, and payroll and benefits expenses.

Previous wording

For the six months ended June 30, 2025, sales and marketing expense increased by $0.9 million, or 12%, to $8.2 million from $7.3 million for the same period last year. This increase is primarily due to higher sales commissions, sales activities expenses, and payroll and benefits expense.

Current wording

For the nine months ended September 30, 2025, sales and marketing expense increased by $1.7 million, or 15%, to $12.8 million from $11.1 million for the same period last year. This increase is primarily due to higher sales commissions, sales activities expenses, and payroll and benefits expense.

Previous wording

For the three months ended June 30, 2025, research and development expense increased by $0.1 million, or 10%, to $0.9 million from $0.8 million for the same period in 2024. This is primarily due to an increase in payroll and benefit expenses related to the newly cleared MRidium® 3870 IV infusion pump system.

Current wording

For the three months ended September 30, 2025, research and development expense increased $35 thousand, or 5%, to $674 thousand from $639 thousand for the same period in 2024. This increase is primarily due to an increase in payroll and benefit expenses related to the newly cleared MRidium® 3870 IV infusion pump system.

Previous wording

For the six months ended June 30, 2025, research and development expense decreased $0.1 million, or 7%, to $1.5 million from $1.6 million for the same period last year. This is primarily due to decreased prototype and consulting expenses related to the MRidium® 3870 IV infusion pump system.

Current wording

For the nine months ended September 30, 2025, research and development expense decreased $0.1 million, or 4%, to $2.2 million from $2.3 million for the same period last year. This decrease is primarily due to decreased prototype and consulting expenses related to the MRidium® 3870 IV infusion pump system.

Previous wording

Other income, net consists of interest income, (the largest component), foreign currency gains and losses, and other miscellaneous income. For the three months ended June 30, 2025, other income, net decreased $0.1 million, or 17%, to $0.5 million from $0.6 million for the same period in 2024.

Current wording

Other income, net consists of interest income, (the largest component), foreign currency gains and losses, and other miscellaneous income. For the three months ended September 30, 2025, other income, net decreased $165 thousand, or 26%, to $464 thousand from $629 thousand for the same period in 2024.

Previous wording

For the six months ended June 30, 2025 and 2024, other income, net, remained consistent at $1.1 million for both periods. This income is primarily interest received in 2025 and 2024 on money market fund investments.

Current wording

For the nine months ended September 30, 2025 and 2024, other income, net decreased $0.3 million, or 14%, to $1.5 million from $1.8 million for the same period in 2024. This income is primarily interest received in 2025 and 2024 on money market fund investments.

Previous wording

For the three and six months ended June 30, 2025, we recorded a provision for income tax expense of $1,553,283 and $2,811,283, respectively. Our effective tax rate was 21.2% for the three and six months ended June 30, 2025 and differed from the U.S. federal statutory rate primarily due to U.S. state income tax expense, partially offset by research and development tax credits.

Current wording

For the three and nine months ended September 30, 2025, we recorded a provision for income tax expense of $1,721,074 and $4,532,357, respectively. For the three and nine months ended September 30, 2025, our effective tax rate was 23.6% and 22.0%, respectively, and differed from the U.S. federal statutory rate primarily due to U.S. state income tax expense, partially offset by research and development tax credits.

Previous wording

For the three and six months ended June 30,2024, we recorded a provision for income tax expense of $1,368,036 and $2,475,004, respectively. For the three and six months ended June 30, 2024, our effective tax rate was 21.8% and 21.5%, respectively, and differed from the U.S. federal statutory rate primarily due to U.S. state income tax expense, partially offset by benefits from research and development tax credits.

Current wording

For the three and nine months ended September 30,2024, we recorded a provision for income tax expense of $1,368,830 and $3,843,834, respectively. For the three and nine months ended September 30, 2024, our effective tax rate was 21.3% and 21.4%, respectively, and differed from the U.S. federal statutory rate primarily due to U.S. state income tax expense, partially offset by benefits from research and development tax credits.

Previous wording

On July 31, 2024, the Company received a notice of examination from the U.S. Internal Revenue Service for the tax year ended December 31, 2021. We are currently complying with the taxing authority and believe our tax position for the year under review was appropriate and have not accounted for any proposed adjustments at this time. The Company remains subject to income tax examinations for our U.S. federal and certain U.S. state income taxes for 2020 and subsequent years.

Current wording

On July 31, 2024, the Company received a notice of examination from the I.R.S. for the tax year ended December 31, 2021. On July 29,2025, the Company received notice that the I.R.S. completed its review of our tax return for the tax year ended December 31, 2021, with no changes to our reported tax return and closed out its examination. The Company remains subject to income tax examinations for our U.S. federal and certain U.S. state income taxes for 2022 and subsequent years.

Previous wording

Our principal sources of liquidity have historically been our cash and cash equivalents balances, cash flow from operations and access to the financial markets. Our principal uses of cash are operating expenses, working capital requirements, capital expenditures and dividend payments, if any.

Current wording

Our principal sources of liquidity have historically been our cash and cash equivalents balances, cash flow from operations and access to the financial markets. Our principal uses of cash are operating expenses, working capital requirements, capital expenditures and dividend payments.

Previous wording

As of June 30, 2025, we had cash and cash equivalents of $53.0 million, stockholders’ equity of $94.3 million, and working capital of $68.6 million. As of December 31, 2024, we had cash and cash equivalents of $52.2 million, stockholders’ equity of $86.8 million, and working capital of $66.7 million.

Current wording

As of September 30, 2025, we had cash and cash equivalents of $56.5 million, stockholders’ equity of $98.4 million, and working capital of $72.1 million. As of December 31, 2024, we had cash and cash equivalents of $52.2 million, stockholders’ equity of $86.8 million, and working capital of $66.7 million.

Previous wording

We believe that our current cash, and any cash generated from operations will be sufficient to meet our ongoing operating requirements for at least the next 12 months and into the foreseeable future. We do not anticipate requiring additional capital; however, if required or desirable, we may seek to obtain a credit facility, raise debt, or issue additional equity in private or public markets. However, various economic conditions might disrupt capital markets at any time, which could reduce our ability to access capital and negatively affect our liquidity in the future.

Current wording

We believe that our current cash, and any cash generated from operations will be sufficient to meet our ongoing operating requirements for at least the next 12 months and into the foreseeable future. We do not anticipate requiring additional capital; however, if required or desirable, we may seek to obtain a credit facility, raise debt, or issue additional equity in private or public markets. Various economic conditions might disrupt capital markets at any time, which could reduce our ability to access capital and negatively affect our liquidity in the future.

Previous wording

Cash provided by operating activities increased by $1.5 million, to $12.0 million for the six months ended June 30, 2025, compared to $10.5 million for the same period in 2024. During the six months ended June 30, 2025, cash provided by operations was positively impacted by higher net income, lower cash outflows related to accounts payable, and negatively impacted by increased inventory purchases, prepaid expenses and accounts receivable.

Current wording

Cash provided by operating activities decreased by $0.6 million, to $19.0 million for the nine months ended September 30, 2025, compared to $19.6 million for the same period in 2024. During the nine months ended September 30, 2025, cash provided by operations was positively impacted by higher net income, lower cash outflows related to accounts payable, and negatively impacted by increased inventory purchases, prepaid expenses and accounts receivable.

Previous wording

Cash used in investing activities increased by $5.0 million, to $6.7 million for the six months ended June 30, 2025, compared to $1.7 million for the same period in 2024. The majority of our 2025 spend in investing activities is attributed to construction costs of the New Facility (see Note 11 to the Financial Statements in this Quarterly Report) to accommodate our anticipated growth.

Current wording

Cash used in investing activities increased by $2.2 million, to $8.0 million for the nine months ended September 30, 2025, compared to $5.8 million for the same period in 2024. The majority of our 2025 spend in investing activities is attributed to construction costs of the completed New Facility to accommodate our anticipated growth.

Previous wording

Cash used in financing activities decreased by $5.5 million, to $4.5 million for the six months ended June 30,2025, compared to approximately $10.0 million for the same period in 2024. The decrease is primarily due to December 2023 declaration of a special cash dividend and subsequent payment in the first quarter of 2024. In the second quarter of 2024, the Company commenced paying a regular quarterly cash dividend payment. Special and quarterly cash dividend payments are subject to the sole discretion of the Board and applicable law.

Current wording

Cash used in financing activities decreased by $5.2 million, to $6.7 million for the nine months ended September 30,2025, compared to approximately $11.9 million for the same period in 2024. The decrease is primarily due to December 2023 declaration of a special cash dividend and subsequent payment in the first quarter of 2024. In the second quarter of 2024, the Company commenced paying a regular quarterly cash dividend payment. Special and quarterly cash dividend payments are subject to the sole discretion of the Board and applicable law.