TransMedics released a $103.3 million U.S. tax valuation allowance in the fourth quarter of 2025. This release resulted in the recognition of a net income tax benefit of $83.8 million in the fourth quarter. The company determined it was 'more likely than not' that future income would result in the use of deferred tax assets. TransMedics' annual effective tax rate in 2025 was (77.0)%. Without the impact of the tax valuation allowance release, the annual effective tax rate for 2025 would have been 19.1%, a difference of 96.1 percentage points. Reported fourth-quarter net income was $105.4 million, with net income per diluted share of $2.62. Applying an annual effective tax rate of 19.1% to fourth-quarter income before income taxes of $21.6 million results in an adjusted quarterly tax expense of $4.1 million. Adjusted fourth-quarter net income, excluding the valuation allowance impact, is $17.5 million, and adjusted net income per diluted share is $0.47.