Inspire Medical Systems Inc

Latest Results (19.11.2025):

Inspire Medical Systems Inc reported its financial results for the third quarter of 2025 with solid revenue growth and robust margins. The company generated $224.5 million in revenue—up 10% year-over-year—with a gross margin of 85.8%, while posting a net income of $9.9 million. The report also highlighted the transition to the Inspire V system and affirmed full year 2025 guidance, demonstrating confidence in improving clinical performance and operational efficiency.

Revenue Growth

The company achieved $224.5 million in revenue for Q3 2025—a 10% increase over Q3 2024—with US revenue comprising $214.4 million (up 9%) and international revenue showing a robust 37% increase. This growth reflects both higher overall sales volume and a greater mix of Inspire V system sales.

Margin and Profitability

In the third quarter of 2025, Inspire Medical Systems Inc reported a gross margin of 85.8%, benefiting from a higher sales mix. However, the net income declined to $9.9 million from $18.5 million the previous year, with diluted earnings per share of $0.34 and adjusted diluted EPS of $0.38, indicating challenges in controlling operating expenses.

Operating Expenses

Operating expenses increased to $183.1 million in Q3 2025 from $156.5 million in Q3 2024. This rise was primarily attributed to higher patient marketing and corporate costs, partially offset by lower R&D spending, including litigation-related legal expenses that impacted the period’s operating performance.

Guidance and Outlook

Looking ahead, Inspire Medical Systems Inc maintained its full year 2025 revenue guidance in the range of $900 million to $910 million (a 12-13% growth over 2024), while increasing its diluted net income per share guidance to $0.90 to $1.00. This optimistic outlook is supported by disciplined cost management and positive field feedback from the Inspire V system transition.

Inspire V System Transition

The report emphasized the transition to the Inspire V system, noting significant clinical improvements such as a 20% reduction in surgical procedure time and enhanced device performance. With more than 75% of US centers ready to adopt the new system, the company is positioning itself for future operational and financial success.