TransMedics: Margins Down, Concentration Up, Trials Delayed

Q2's headline beat was driven by low-margin logistics and pricing, not by more organs moving through the platform; service outgrew product by 16.4 pp. Revenue is increasingly concentrated in the liver (78% of organ revenue), while the heart barely grew, and the lung fell 42% year-over-year. The heart and lung growth catalysts, ENHANCE and DENOVO, are delayed, gated by FDA enrollment, and contribute minimally while dragging margins.