On the Q1 2026 earnings call for TransMedics, the CEO said something that stopped everyone in their tracks. Major transplant programs, he said, are going to Home Depot and buying YETI coolers to preserve human hearts before transplantation. None of those coolers are FDA-approved. None are validated for that purpose. That is the status quo TransMedics is trying to replace.

This is CSI's update on TransMedics following their May 5th earnings report. TransMedics is not a semiconductor company — it sits in CSI's small bets basket, a collection of positions outside the core semiconductor thesis that Kasey follows closely. The company is building what it describes as the premier program for organ transplantation, combining a warm perfusion technology called the Organ Care System with its own aviation logistics network to dramatically improve the odds that a donated organ reaches its recipient in viable condition.

The Q1 2026 numbers are solid. Revenue of $174 million, up 21% year over year, with 82% of organ transplants now covered by TransMedics' own logistics service. But the more interesting story is what comes next across four distinct growth catalysts.

First, the CHOPS system — a new cold preservation device TransMedics just developed to serve the segment of the heart transplant market where cold storage is sufficient and warm perfusion is not required. Of 4,646 hearts transplanted in 2025, roughly 2,100 were preserved for less than four hours. That entire segment is currently going to Home Depot coolers. CHOPS is also the control arm TransMedics needed to run the ENHANCE Heart clinical trials — a clever solution to the problem of not being able to find a competitor willing to run head-to-head against their warm perfusion system.

Second, European expansion — a logistics partnership with PAD Aviation in Germany and new infrastructure in Italy that could eventually double the total addressable market.

Third, the kidney opportunity. Over 20,000 deceased kidney transplants happen annually in the United States. Between 8,000 and 9,000 kidneys are discarded every year due to prolonged ischemic times. TransMedics has designed a Gen 3.0 OCS platform for kidney transplantation, targeting 2027 for market entry.

Fourth, the Gen 3.0 platform upgrade for liver, heart, and lung — parallel development tracks that modernize the core product across every organ.

Kasey closes with something genuinely useful: an honest accounting of what could go right and what could go wrong, and why she continues to hold a small position.

This episode was released to Semi Insider members several weeks before this public version. Members get Kasey and Nick's full research, live Q&A sessions, and analysis like this as it happens. Join at chipstockinvestor.com/membership

What we cover:

— The CHOPS cold preservation system and why it exists

— ENHANCE Heart trial — Part A and Part B explained

— Will CHOPS cannibalize OCS warm perfusion revenue? The CEO's answer

— Heart transplant market data — 2,131 hearts going to cold storage annually

— European expansion — PAD Aviation and Italy buildout

— The kidney opportunity — 20,000+ transplants, 8,000–9,000 discarded

— OCS Gen 3.0 — kidney platform targeting 2027

— Q1 2026 financials — $174M revenue, balance sheet, Summit Aviation debt

— What could go right and what could go wrong for TMDX

— CSI's current position and ongoing conviction

Disclosure: Kasey and Nick hold a position in TransMedics. This content is for general information only and is not individual investment advice. All investing involves risk.

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Hospitals Are Using YETI Coolers for Heart Transplants — TransMedics Just Built Something Better (TMDX Q1 2026)

Chip Stock Investor Podcast

Hospitals Are Using YETI Coolers for Heart Transplants — TransMedics Just Built Something Better (TMDX Q1 2026)