Industry Overview - The Medical Instruments industry is experiencing a significant transformation due to the integration of generative AI (genAI), which is reshaping diagnostics, patient monitoring, and intervention workflows [1][4] - The FDA is implementing a Total Product Lifecycle (TPLC) oversight framework to enhance safety, transparency, and data integrity in the industry [1] Market Trends - The global AI in healthcare market is projected to grow at a CAGR of 38.5% from 2024 to 2030, despite facing geopolitical challenges such as tariffs and supply chain issues [2] - The generative AI market in healthcare was valued at $1.8 billion in 2023 and is expected to grow at a CAGR of 33.2% from 2024 to 2032 [4] - The diagnostics market is anticipated to grow at a CAGR of 24.6% by 2034, driven by advancements in AI applications [4] M&A Activity - The medical instruments sector is witnessing a surge in merger and acquisition (M&A) activity, with 305 transactions announced in 2024, totaling over $63.1 billion, a significant increase from 134 deals in 2023 [5] - Notable M&A transactions include UnitedHealth Group's $3.3 billion acquisition of Amedisys and Stryker's $4.9 billion purchase of Inari Medical [5] Financial Performance - The Zacks Medical Instruments industry has underperformed the S&P 500, declining 15.4% compared to the broader sector's decline of 17.4% [10] - The industry is currently trading at a forward P/E of 28.46X, higher than the broader industry's 19.32X and the S&P 500's 22.80X [12] Company Highlights - **Teleflex**: Expected 2025 sales of $3.33 billion, a 9.3% increase from 2024, with EPS projected at $14.06, indicating a 0.4% rise [18] - **Integer Holdings**: Anticipated 2025 sales of $1.87 billion, a 7.8% increase from 2024, with EPS expected to rise by 20.4% to $6.38 [22] - **Inogen**: Projected 2025 sales of $355.2 million, a 5.8% increase from 2024, with EPS expected to improve by 37.5% to a loss of 95 cents [26]

Group 1 - Inogen (INGN) has shown a 9.5% increase in stock price over the past four weeks, with a mean price target of $11 indicating a potential upside of 49.3% [1] - The average price target ranges from a low of $7.00 to a high of $14.00, with a standard deviation of $3.61, suggesting variability in analysts' estimates [2] - Analysts have shown strong agreement in revising earnings estimates higher, which correlates with potential stock price increases [4][11] Group 2 - The Zacks Consensus Estimate for the current year has increased by 0.5% over the last 30 days, indicating positive sentiment among analysts [12] - INGN holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] - While the consensus price target may not be a reliable indicator of stock gains, it does provide a directional guide for price movement [14]

[Part I – Financial Information](index=3&type=section&id=Part%20I%20%E2%80%93%20Financial%20Information) This section presents the company's unaudited consolidated financial statements and management's analysis [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements, including balance sheets, statements of comprehensive loss, statements of stockholders' equity, and statements of cash flows, along with their condensed notes, providing a detailed financial overview for the reported periods [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) This section details the company's financial position, including assets, liabilities, and equity **Consolidated Balance Sheet Highlights (in thousands):** | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :-------------- | :---------------- | | Total Assets | $312,040 | $296,185 | | Total Liabilities | $112,549 | $122,325 | | Total Stockholders' Equity | $199,491 | $173,860 | | Cash and cash equivalents | $103,685 | $113,795 | [Consolidated Statements of Comprehensive Loss](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Loss) This section outlines the company's financial performance, detailing net loss and total revenue **Net Loss and Revenue (Three Months Ended June 30, in thousands):** | Metric | 2025 | 2024 | Change ($) | Change (%) | | :---------------- | :----- | :----- | :--------- | :--------- | | Net Loss | $(4,152) | $(5,590) | $1,438 | 25.7% | | Total Revenue | $92,277 | $88,765 | $3,512 | 4.0% | **Net Loss and Revenue (Six Months Ended June 30, in thousands):** | Metric | 2025 | 2024 | Change ($) | Change (%) | | :---------------- | :------ | :------ | :--------- | :--------- | | Net Loss | $(10,326) | $(20,168) | $9,842 | 48.8% | | Total Revenue | $174,557 | $166,790 | $7,767 | 4.7% | | Comprehensive Loss | $(5,938) | $(21,531) | $15,593 | 72.4% | [Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) This section details changes in the company's equity, including stock issuance and compensation **Total Stockholders' Equity (in thousands):** | Date | Amount | | :---------------- | :----- | | June 30, 2025 | $199,491 | | June 30, 2024 | $187,595 | | December 31, 2024 | $173,860 | - Proceeds from issuance of common stock from securities purchase agreement totaled **$27,210 thousand** for the six months ended June 30, 2025[14](index=14&type=chunk) - Stock-based compensation expense for the six months ended June 30, 2025, was **$4,440 thousand**, up from **$4,230 thousand** in 2024[14](index=14&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes cash flows from operating, investing, and financing activities **Summary of Consolidated Cash Flows (Six Months Ended June 30, in thousands):** | Activity | 2025 | 2024 | Change ($) | Change (%) | | :-------------------------------- | :------- | :------- | :--------- | :----------- | | Net cash provided by (used in) operating activities | $(12,440) | $1,940 | $(14,380) | -741.2% | | Net cash used in investing activities | $(24,611) | $(25,820) | $1,209 | 4.7% | | Net cash provided by financing activities | $23,951 | $84 | $23,867 | 28413.1% | | Net decrease in cash and cash equivalents | $(12,458) | $(24,013) | $11,555 | -48.1% | - Cash, cash equivalents and restricted cash at the end of the period was **$104,957 thousand** as of June 30, 2025, compared to **$101,479 thousand** as of June 30, 2024[21](index=21&type=chunk) [Condensed Notes to the Consolidated Financial Statements](index=9&type=section&id=Condensed%20Notes%20to%20the%20Consolidated%20Financial%20Statements) These notes provide detailed explanations and disclosures for the consolidated financial statements, covering business operations, accounting policies, fair value measurements, balance sheet components, leases, loss per share, income taxes, stockholders' equity, commitments, contingencies, foreign currency hedging, and segment reporting [1. Business overview](index=9&type=section&id=1.%20Business%20overview) This note describes the company's core business, recent acquisitions, and strategic collaborations - Inogen, Inc. is a medical technology company focused on respiratory health, developing, manufacturing, and marketing portable oxygen concentrators (POCs) and the Simeox® product for airway clearance treatment[24](index=24&type=chunk) - The company completed the acquisition of Physio-Assist SAS on September 14, 2023[26](index=26&type=chunk) - On January 25, 2025, Inogen entered into a Strategic Collaboration Agreement with Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. (Yuwell) to broaden its product portfolio, enhance innovation, and accelerate entry into the Chinese market[27](index=27&type=chunk) [2. Basis of presentation and summary of significant accounting policies](index=9&type=section&id=2.%20Basis%20of%20presentation%20and%20summary%20of%20significant%20accounting%20policies) This note outlines accounting principles, U.S. GAAP compliance, and key management estimates - The consolidated financial statements are prepared in accordance with U.S. GAAP and include Inogen, Inc. and its wholly-owned subsidiaries, with all intercompany balances and transactions eliminated[28](index=28&type=chunk)[30](index=30&type=chunk) - Significant areas requiring management estimates include revenue recognition, warranty reserves, rental asset valuations, accounts receivable allowances, goodwill impairment, stock-based compensation, income taxes, and fair value of acquired intangibles[31](index=31&type=chunk) [3. Fair value measurements](index=10&type=section&id=3.%20Fair%20value%20measurements) This note details the fair value of financial instruments, including cash, investments, and earnout liabilities **Fair Value Measurements (as of June 30, 2025, in thousands):** | Asset Category | Fair Value | | :-------------------------------- | :--------- | | Cash | $23,699 | | Money market accounts | $55,564 | | Corporate bonds | $8,741 | | U.S. Treasury securities | $10,004 | | Institutional Insured Liquidity Deposit Savings | $25,694 | | **Total** | **$123,702** | - The company had a derivative instrument related payable of **$2,820 thousand** as of June 30, 2025, for hedging activities[33](index=33&type=chunk) - The earnout liability of **$13,000 thousand** related to the Physio-Assist acquisition as of December 31, 2024, was fully paid during the first quarter of 2025, resulting in a zero balance as of June 30, 2025[35](index=35&type=chunk) [4. Balance sheet components](index=11&type=section&id=4.%20Balance%20sheet%20components) This note provides a breakdown of key balance sheet items: cash, accounts receivable, goodwill, and intangibles **Cash, Cash Equivalents and Restricted Cash (in thousands):** | Date | Amount | | :---------------- | :------- | | June 30, 2025 | $104,957 | | December 31, 2024 | $117,415 | **Net Accounts Receivable (in thousands):** | Category | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | Rental | $5,462 | $4,863 | | Business-to-business and other receivables | $33,130 | $24,700 | | **Total net accounts receivable** | **$38,592** | **$29,563** | - Goodwill increased to **$10,700 thousand** as of June 30, 2025, from **$9,465 thousand** as of December 31, 2024, primarily due to translation adjustment[49](index=49&type=chunk) **Net Intangible Assets (in thousands):** | Date | Amount | | :---------------- | :------- | | June 30, 2025 | $33,359 | | December 31, 2024 | $30,493 | [5. Leases](index=16&type=section&id=5.%20Leases) This note details the company's operating lease arrangements, including cash payments and total lease liabilities - The Company has operating leases primarily for commercial buildings with terms ranging from three to 11 years[52](index=52&type=chunk) **Cash Paid for Operating Lease Liabilities (Six Months Ended June 30, in thousands):** | Year | Amount | | :--- | :----- | | 2025 | $1,902 | | 2024 | $2,290 | **Total Lease Liabilities (as of June 30, 2025, in thousands):** | Category | Amount | | :-------------------------- | :------- | | Operating lease liability - current | $3,082 | | Operating lease liability - noncurrent | $15,955 | | **Total lease liabilities** | **$19,037** | [6. Loss per share](index=17&type=section&id=6.%20Loss%20per%20share) This note presents basic and diluted net loss per share for the reported periods, explaining dilution factors **Net Loss Per Share (Three Months Ended June 30):** | Metric | 2025 | 2024 | | :-------------------------- | :----- | :----- | | Basic net loss per share | $(0.15) | $(0.24) | | Diluted net loss per share | $(0.15) | $(0.24) | **Net Loss Per Share (Six Months Ended June 30):** | Metric | 2025 | 2024 | | :-------------------------- | :----- | :----- | | Basic net loss per share | $(0.40) | $(0.86) | | Diluted net loss per share | $(0.40) | $(0.86) | - Due to net losses, diluted loss per share is the same as basic loss per share for both the three and six months ended June 30, 2025 and 2024[60](index=60&type=chunk) [7. Income taxes](index=18&type=section&id=7.%20Income%20taxes) This note discusses the company's income tax position, including valuation allowances and effective rates - The Company maintains a full valuation allowance against its domestic and certain foreign deferred tax assets as of June 30, 2025, and December 31, 2024[61](index=61&type=chunk) - Income tax benefit increased by **$0.1 million** (**2,085.7%**) for the three months ended June 30, 2025, compared to 2024, primarily due to lower foreign and state taxes[120](index=120&type=chunk) - The effective income tax rate for the three months ended June 30, 2025, was **3.6%**, up from **0.1%** in 2024, due to a lower net loss and foreign/state taxes[121](index=121&type=chunk) [8. Stockholders' equity](index=18&type=section&id=8.%20Stockholders'%20equity) This note details changes in stockholders' equity, including common stock issuance and stock-based compensation - On January 25, 2025, the Company entered into a Securities Purchase Agreement with Yuwell (Hong Kong) Holdings Limited, resulting in the sale of **2,626,425 shares** of common stock for approximately **$27,210 thousand**[68](index=68&type=chunk) - Unrecognized compensation cost related to unvested employee restricted stock units was **$13,299 thousand** as of June 30, 2025, expected to be recognized over a weighted average period of **2.1 years**[72](index=72&type=chunk) **Total Stock-Based Compensation Expense (in thousands):** | Period | 2025 | 2024 | | :-------------------------- | :----- | :----- | | Three months ended June 30 | $2,293 | $1,814 | | Six months ended June 30 | $4,440 | $4,230 | [9. Commitments and contingencies](index=20&type=section&id=9.%20Commitments%20and%20contingencies) This note outlines outstanding purchase orders, product warranty liabilities, deferred revenue, and legal proceedings - Outstanding purchase orders due within one year totaled approximately **$60,900 thousand** as of June 30, 2025[77](index=77&type=chunk) **Product Warranty Liability (in thousands):** | Date | Amount | | :---------------- | :------- | | June 30, 2025 | $26,724 | | December 31, 2024 | $26,086 | - Deferred revenue related to lifetime warranties decreased to **$8,388 thousand** as of June 30, 2025, from **$9,922 thousand** at December 31, 2024, primarily due to revenue recognition[79](index=79&type=chunk) - The Company is party to various legal proceedings but does not anticipate a material adverse effect on its business[81](index=81&type=chunk) [10. Foreign currency exchange contracts and hedging](index=21&type=section&id=10.%20Foreign%20currency%20exchange%20contracts%20and%20hedging) This note describes the company's use of derivative instruments to hedge foreign currency exchange risk and their impact **Total Notional Amounts of Derivative Contracts (in thousands):** | Date | Amount | | :---------------- | :------- | | June 30, 2025 | $18,266 | | June 30, 2024 | $38,804 | - These contracts resulted in an unrealized loss of **$1,435 thousand** (net of tax) for the six months ended June 30, 2025[82](index=82&type=chunk) - The Company uses foreign exchange forward contracts as cash flow hedges to mitigate foreign currency exchange risk, particularly for European sales denominated in Euros[165](index=165&type=chunk) [11. Segments](index=21&type=section&id=11.%20Segments) This note clarifies the company operates as a single reportable segment, with consolidated results reviewed by CODM - The Company operates and reports in only one operating and reportable segment, based on the similar nature of its products and services in the oxygen therapy and respiratory care markets[84](index=84&type=chunk) - The executive leadership team (ELT) acts as the Chief Operating Decision Maker (CODM) and reviews consolidated results to allocate resources and assess performance[84](index=84&type=chunk) [12. Subsequent events](index=21&type=section&id=12.%20Subsequent%20events) This note discloses significant events occurring after the reporting period, such as new tax laws - On July 4, 2025, the One Big Beautiful Bill Act ('OBBBA') was enacted, providing significant U.S. tax law changes. The Company is evaluating its potential effects but expects no material impact on financial statements as of June 30, 2025[85](index=85&type=chunk)[139](index=139&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and operational results, highlighting key performance drivers, macroeconomic impacts, and future outlook. It details revenue and expense trends for the three and six months ended June 30, 2025, compared to 2024, and discusses liquidity and capital resources [Forward-Looking Statements](index=22&type=section&id=Forward-Looking%20Statements) This section cautions that statements about future performance are based on assumptions and involve material risks - The discussion contains forward-looking statements based on management's beliefs and assumptions, covering future cash flows, revenue, expenses, product development, regulatory approvals, market share, and financing plans[86](index=86&type=chunk) - These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially, as detailed in the 'Risk Factors' section of the 10-Q and Annual Report on Form 10-K[88](index=88&type=chunk) - The company assumes no obligation to update these forward-looking statements unless required by law[89](index=89&type=chunk) [Critical accounting policies and estimates](index=24&type=section&id=Critical%20accounting%20policies%20and%20estimates) This section identifies key accounting policies and estimates requiring significant management judgment - Critical accounting policies and estimates include revenue recognition and acquisitions/related acquired intangible assets and goodwill, which require significant management judgment[96](index=96&type=chunk) - There have been no material changes in critical accounting policies and estimates during the three and six months ended June 30, 2025, compared to the Annual Report on Form 10-K for 2024[96](index=96&type=chunk) [Recent accounting pronouncements](index=26&type=section&id=Recent%20accounting%20pronouncements) This section refers to Note 2 for details on recently adopted and proposed accounting pronouncements - Information about recently adopted and proposed accounting pronouncements is included in Note 2 to the consolidated financial statements[97](index=97&type=chunk) [Macroeconomic environment](index=26&type=section&id=Macroeconomic%20environment) This section discusses the impact of global supply chain issues, inflation, interest rates, and geopolitical dynamics - The company faces ongoing global supply chain challenges, including increased costs and limited availability of raw materials and components, as well as rising wage and distribution costs[98](index=98&type=chunk) - Uncertainty from inflationary pressures, interest rates, monetary policy, and geopolitical dynamics could negatively impact business operations and financial results, including foreign currency fluctuations[98](index=98&type=chunk) - Current U.S. government tariffs are not expected to have a material impact on the business[99](index=99&type=chunk) [Overview](index=26&type=section&id=Overview) This section describes Inogen's medical technology business, strategic goals, and recent product collaborations - Inogen is a medical technology company specializing in innovative respiratory products, including portable oxygen concentrators (POCs) and the Simeox product for airway clearance[101](index=101&type=chunk) - The company aims to expand its domestic HME provider and reseller network, increase international business-to-business adoption (especially in Europe and Asia-Pacific), and broaden its product offerings and indications for use[103](index=103&type=chunk)[104](index=104&type=chunk) - In January 2025, a collaboration with Yuwell was initiated to distribute respiratory products in the U.S. and China, including the launch of the Voxi™ 5 stationary oxygen concentrator in the U.S. in June 2025[105](index=105&type=chunk) [Results of operations](index=27&type=section&id=Results%20of%20operations) This section provides a detailed comparison of the company's financial performance for the three and six months ended June 30, 2025, versus the corresponding periods in 2024, analyzing revenue, cost of revenue, gross profit, and operating expenses [Comparison of three months ended June 30, 2025 and 2024](index=27&type=section&id=Comparison%20of%20three%20months%20ended%20June%2030%2C%202025%20and%202024) For the three months ended June 30, 2025, total revenue increased by 4.0% driven by higher business-to-business sales, while direct-to-consumer sales and rental revenue decreased. Net loss improved by 25.7% due to increased sales revenue and lower operating expenses **Revenue by Type (Three Months Ended June 30, in thousands):** | Metric | 2025 | 2024 | Change ($) | Change (%) | | :---------------- | :----- | :----- | :--------- | :--------- | | Sales revenue | $79,172 | $74,425 | $4,747 | 6.4% | | Rental revenue | $13,105 | $14,340 | $(1,235) | -8.6% | | **Total revenue** | **$92,277** | **$88,765** | **$3,512** | **4.0%** | **Revenue by Region and Category (Three Months Ended June 30, in thousands):** | Category | 2025 | 2024 | Change ($) | Change (%) | | :-------------------------------- | :------- | :------- | :--------- | :--------- | | Business-to-business domestic sales | $25,406 | $21,287 | $4,119 | 19.3% | | Business-to-business international sales | $35,923 | $30,531 | $5,392 | 17.7% | | Direct-to-consumer domestic sales | $17,843 | $22,607 | $(4,764) | -21.1% | | Direct-to-consumer domestic rentals | $13,105 | $14,340 | $(1,235) | -8.6% | **Gross Profit and Margin (Three Months Ended June 30, in thousands):** | Metric | 2025 | 2024 | Change ($) | Change (%) | | :-------------------------- | :----- | :----- | :--------- | :--------- | | Total gross profit | $41,341 | $42,737 | $(1,396) | -3.3% | | Total gross margin percentage | 44.8% | 48.1% | -3.3% | | | Sales revenue gross margin | 45.1% | 48.5% | -3.4% | | | Rental revenue gross margin | 43.0% | 46.2% | -3.2% | | **Operating Expenses (Three Months Ended June 30, in thousands):** | Expense Category | 2025 | 2024 | Change ($) | Change (%) | | :-------------------------- | :----- | :----- | :--------- | :--------- | | Research and development | $5,209 | $5,616 | $(407) | -7.2% | | Sales and marketing | $25,390 | $25,617 | $(227) | -0.9% | | General and administrative | $16,871 | $18,568 | $(1,697) | -9.1% | - Net loss decreased by **$1.4 million**, or **25.7%**, to **$(4,152) thousand** for the three months ended June 30, 2025, compared to **$(5,590) thousand** in the prior year, driven by increased sales revenue and lower operating expenses[122](index=122&type=chunk) [Comparison of six months ended June 30, 2025 and 2024](index=31&type=section&id=Comparison%20of%20six%20months%20ended%20June%2030%2C%202025%20and%202024) For the six months ended June 30, 2025, total revenue increased by 4.7%, primarily from strong business-to-business sales, while direct-to-consumer sales and rental revenue declined. Net loss significantly decreased by 48.8% due to higher sales revenue and reduced operating expenses **Revenue by Type (Six Months Ended June 30, in thousands):** | Metric | 2025 | 2024 | Change ($) | Change (%) | | :---------------- | :------- | :------- | :--------- | :--------- | | Sales revenue | $147,642 | $137,520 | $10,122 | 7.4% | | Rental revenue | $26,915 | $29,270 | $(2,355) | -8.0% | | **Total revenue** | **$174,557** | **$166,790** | **$7,767** | **4.7%** | **Revenue by Region and Category (Six Months Ended June 30, in thousands):** | Category | 2025 | 2024 | Change ($) | Change (%) | | :-------------------------------- | :------- | :------- | :--------- | :--------- | | Business-to-business domestic sales | $46,860 | $37,806 | $9,054 | 23.9% | | Business-to-business international sales | $67,908 | $56,566 | $11,342 | 20.1% | | Direct-to-consumer domestic sales | $32,874 | $43,148 | $(10,274) | -23.8% | | Direct-to-consumer domestic rentals | $26,915 | $29,270 | $(2,355) | -8.0% | **Gross Profit and Margin (Six Months Ended June 30, in thousands):** | Metric | 2025 | 2024 | Change ($) | Change (%) | | :-------------------------- | :------- | :------- | :--------- | :--------- | | Total gross profit | $77,713 | $77,108 | $605 | 0.8% | | Total gross margin percentage | 44.5% | 46.2% | -1.7% | | | Sales revenue gross margin | 44.8% | 46.5% | -1.7% | | | Rental revenue gross margin | 43.2% | 44.9% | -1.7% | | **Operating Expenses (Six Months Ended June 30, in thousands):** | Expense Category | 2025 | 2024 | Change ($) | Change (%) | | :-------------------------- | :------- | :------- | :--------- | :--------- | | Research and development | $9,243 | $12,194 | $(2,951) | -24.2% | | Sales and marketing | $49,147 | $52,553 | $(3,406) | -6.5% | | General and administrative | $33,108 | $35,699 | $(2,591) | -7.3% | - Net loss decreased by **$9.8 million**, or **48.8%**, to **$(10,326) thousand** for the six months ended June 30, 2025, compared to **$(20,168) thousand** in the prior year, driven by increased sales revenue and lower operating expenses[140](index=140&type=chunk) [Liquidity and capital resources](index=33&type=section&id=Liquidity%20and%20capital%20resources) This section assesses the company's ability to meet financial obligations, detailing cash, financing, and future funding - Cash and cash equivalents were **$103.7 million** as of June 30, 2025[141](index=141&type=chunk) - The company received **$27.2 million** from the issuance of common stock pursuant to a securities purchase agreement and paid **$13.0 million** for an earnout liability during the six months ended June 30, 2025[141](index=141&type=chunk)[153](index=153&type=chunk) **Net Cash Flows by Activity (Six Months Ended June 30, in thousands):** | Activity | 2025 | 2024 | | :-------------------------------- | :------- | :------- | | Net cash used in operating activities | $(12,440) | $1,940 | | Net cash used in investing activities | $(24,611) | $(25,820) | | Net cash provided by financing activities | $23,951 | $84 | - The company believes its current cash, cash equivalents, marketable securities, and expected sales/rentals will be sufficient to meet operating and investing requirements for at least the next 12 months, but future funding may be required[143](index=143&type=chunk) [Non-GAAP financial measures](index=36&type=section&id=Non-GAAP%20financial%20measures) This section provides reconciliations and definitions for non-GAAP financial measures like EBITDA and Adjusted EBITDA **EBITDA and Adjusted EBITDA Reconciliation (Six Months Ended June 30, in thousands):** | Metric | 2025 | 2024 | | :-------------------------- | :------- | :------- | | Net loss (GAAP) | $(10,326) | $(20,168) | | EBITDA (non-GAAP) | $(2,323) | $(12,451) | | Adjusted EBITDA (non-GAAP) | $2,117 | $(6,384) | - EBITDA is defined as net loss excluding interest income, interest expense, taxes, and depreciation and amortization. Adjusted EBITDA further excludes stock-based compensation, change in fair value of earnout liability, acquisition-related expenses, and restructuring-related charges[158](index=158&type=chunk) - These non-GAAP measures are used by management for assessing operating performance, business planning, incentivizing personnel, and evaluating acquisitions, but have limitations as analytical tools[159](index=159&type=chunk)[160](index=160&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section discusses the company's exposure to market risks, primarily foreign currency exchange risk and interest rate fluctuation risk, and the strategies employed to mitigate these risks - The principal market risk is foreign currency exchange risk, as a majority of European sales are denominated in Euros, leading to fluctuations in results of operations and cash flows[164](index=164&type=chunk) - The company uses foreign exchange forward contracts as cash flow hedges to protect against adverse changes in foreign currency exchange rates, reducing but not entirely eliminating the impact[165](index=165&type=chunk) - A hypothetical **10%** adverse change in exchange rates on foreign denominated sales would have resulted in a **$5.3 million** decline in revenue for the six months ended June 30, 2025, prior to hedging[165](index=165&type=chunk) - The company has limited exposure to interest rate fluctuation risk due to the short-term nature of its cash, cash equivalents, and marketable securities[166](index=166&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the evaluation of the company's disclosure controls and procedures and reports on any changes in internal control over financial reporting - Management, with the CEO and CFO, concluded that disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025[167](index=167&type=chunk) - No material changes in internal control over financial reporting occurred during the most recent fiscal quarter[168](index=168&type=chunk) - Controls and procedures, due to inherent limitations and resource constraints, can only provide reasonable assurance of achieving control objectives[169](index=169&type=chunk) [Part II – Other Information](index=41&type=section&id=Part%20II%20%E2%80%93%20Other%20Information) This section covers legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and exhibits [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) This section states that the company is involved in various legal proceedings in the normal course of business but does not anticipate a material adverse effect - The company is party to various legal proceedings and investigations arising in the normal course of business[171](index=171&type=chunk) - No material adverse effect on the business is anticipated from these proceedings, though litigation can have an adverse impact due to defense and settlement costs, and diversion of management resources[171](index=171&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the significant risk factors detailed in the company's Annual Report on Form 10-K, noting no material changes since that filing - Significant factors that could materially adversely affect the business are described in the 'Risk Factors' section of the Annual Report on Form 10-K for the year ended December 31, 2024[172](index=172&type=chunk) - As of the date of this Quarterly Report on Form 10-Q, there have been no material changes from the previously disclosed risk factors[172](index=172&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports that there were no unregistered sales of equity securities and no share repurchases during the three months ended June 30, 2025 - No unregistered sales of equity securities occurred[173](index=173&type=chunk) - The company did not repurchase any shares of common stock during the three months ended June 30, 2025[174](index=174&type=chunk) [Item 3. Defaults Upon Senior Securities](index=41&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities - No defaults upon senior securities were reported[175](index=175&type=chunk) [Item 4. Mine Safety Disclosures](index=41&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that Mine Safety Disclosures are not applicable to the company - Mine Safety Disclosures are not applicable to the company[176](index=176&type=chunk) [Item 5. Other Information](index=41&type=section&id=Item%205.%20Other%20Information) This section reports that no directors or Section 16 reporting officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - No directors or Section 16 reporting officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025[177](index=177&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Quarterly Report on Form 10-Q, including equity incentive plans, employment agreements, certifications, and XBRL documents - Exhibits include Amended and Restated 2023 Equity Incentive Plan, various stock option and restricted stock unit agreements, employment and change of control agreements, and certifications (31.1, 31.2, 32.1, 32.2)[182](index=182&type=chunk) - Certifications under 18 U.S.C. Section 1350 (Exhibits 32.1 and 32.2) are not deemed filed with the SEC[181](index=181&type=chunk) [SIGNATURES](index=43&type=section&id=SIGNATURES) This section contains the official signatures of the company's Chief Executive Officer and Chief Financial Officer, certifying the submission of the Quarterly Report on Form 10-Q - The report was signed on August 8, 2025, by Kevin R.M. Smith, Chief Executive Officer and President, and Michael Bourque, Executive Vice President and Chief Financial Officer[186](index=186&type=chunk)

Core Insights - Inogen, Inc. reported an adjusted loss per share of 2 cents for Q2 2025, an improvement from a loss of 7 cents in the same quarter last year and better than the Zacks Consensus Estimate of a 22 cents loss [1][7] - Revenues for the quarter reached $92.3 million, reflecting a 4% year-over-year increase and surpassing the Zacks Consensus Estimate by 1.2% [2][7] - The company experienced a significant decline in domestic direct-to-consumer sales, which fell by 21.1% year-over-year [10][18] Revenue Performance - Inogen's total revenues for Q2 2025 were $92.3 million, up 4% year-over-year, with a similar increase at constant exchange rates [2][3] - Domestic business-to-business sales increased by 19.3% to $25.4 million, while international business-to-business sales rose by 17.7% to $35.9 million [9] - Rental revenues decreased by 8.6% to $13.1 million, attributed to lower average billing rates [8][18] Profitability and Expenses - Adjusted gross profit for the quarter was $44.4 million, down 3.3% year-over-year, with an adjusted gross margin of 48.1%, a contraction of 360 basis points [11] - Sales and marketing expenses decreased by 0.9% to $25.4 million, while research and development expenses fell by 7.3% to $5.2 million [12] - Adjusted operating loss was $2.6 million, an improvement from a loss of $3 million in the prior year [12] Financial Position - At the end of Q2 2025, Inogen had cash and cash equivalents of $103.7 million, down from $118.9 million at the end of Q1 2025, with no debt on its balance sheet [13] - Cumulative net cash used in operating activities was $12.4 million, compared to a net cash provided of $1.9 million a year ago [13] Future Guidance - For Q3 2025, Inogen expects revenues between $91 million and $93 million, indicating approximately 4% growth at the midpoint from Q2 2024 [14] - For the full year 2025, the revenue outlook is set between $354 million and $357 million, reflecting about 6% growth at the midpoint from 2024 [15] Product Developments - Inogen launched the Voxi 5, a new stationary oxygen concentrator aimed at enhancing access to oxygen therapy for long-term care patients [17] - The company also introduced the Inogen Patient Portal, designed to empower patients in managing their care [17]

Company Performance - Inogen reported a quarterly loss of $0.15 per share, better than the Zacks Consensus Estimate of a loss of $0.22, and an improvement from a loss of $0.24 per share a year ago [1] - The quarterly report represents an earnings surprise of +31.82%, following a previous surprise of +51.92% when the company posted a loss of $0.25 per share against an expected loss of $0.52 [2] - Inogen's revenues for the quarter ended June 2025 were $92.28 million, surpassing the Zacks Consensus Estimate by 1.76% and up from $88.76 million year-over-year [3] Market Performance - Inogen shares have declined approximately 31.3% since the beginning of the year, contrasting with the S&P 500's gain of 7.9% [4] - The current consensus EPS estimate for the upcoming quarter is -$0.18 on revenues of $92.91 million, and -$0.95 on revenues of $354.02 million for the current fiscal year [8] Industry Outlook - The Medical - Instruments industry, to which Inogen belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, indicating potential challenges ahead [9] - The performance of Inogen's stock may be influenced by the overall outlook for the industry, as top-ranked industries tend to outperform the bottom half by more than 2 to 1 [9]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $92.3 million, an increase of 4% year-over-year, primarily driven by higher demand in business-to-business channels [17][18] - Adjusted EBITDA was $2.1 million in Q2 2025, compared to $1.3 million in the prior period, marking the second consecutive quarter of positive adjusted EBITDA [21][12] - GAAP net loss decreased to $4.2 million in Q2 2025 from a loss of $5.6 million in the prior period, with loss per diluted share improving to $0.15 from $0.24 [21] Business Line Data and Key Metrics Changes - Domestic business-to-business revenue increased by 19.3% to $25.4 million, while international business-to-business revenue rose by 17.7% to $35.9 million [17][18] - Direct-to-consumer sales decreased by 21.1% to $17.8 million, attributed to a smaller, more efficient team [18] - Rental revenue decreased by 8.6% to $13.1 million, primarily due to a higher mix of lower private payer reimbursement rates [19] Market Data and Key Metrics Changes - The company reported unit growth of 19% in overall unit volumes, driven by market conversion from portable oxygen tanks to portable oxygen concentrators [6] - The portable oxygen concentrators (POCs) are expected to increase from an estimated 23% to 58% of the total ambulatory market in the U.S. over the next five years [7] Company Strategy and Development Direction - The company focuses on increasing patient access, leveraging brand strength, and expanding its portfolio through new products and geographic reach [8] - The rollout of the Patient First initiative aims to strengthen direct-to-consumer sales and rental channels [9] - The introduction of VOXI5, a new stationary oxygen concentrator, is expected to enhance the product portfolio and improve access to therapy for long-term care patients [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to accelerate growth and enhance profitability, with expectations of achieving full-year adjusted EBITDA breakeven in 2025 [12][22] - The company remains focused on operational efficiency and optimizing performance across rental operations [10] - Management highlighted the importance of the VOXI5 launch in expanding the addressable market and driving future growth [30] Other Important Information - The company reported cash and cash equivalents of $123.7 million with no debt outstanding as of June 30, 2025 [21] - The company generated $4.4 million in operating cash flow in Q2 2025, reflecting a focus on working capital optimization [22] Q&A Session Summary Question: Initial demand for VOXI5 and revenue contribution - Management noted that initial demand for VOXI5 has been positive and is included in the guidance for the rest of the year, with a more significant impact expected in Q4 [28][30] Question: Updates on reimbursement for Cemiox - Management is working on generating health economic data and clinical data to support reimbursement, with trials ongoing internationally [31][32] Question: Guidance for the second half of the year - The company expects 7% growth at the midpoint for the second half, with mid single-digit growth in Q3 and low double-digit growth in Q4 [36][37] Question: Drivers behind profitability and cash flow - Management highlighted the focus on profitability, with positive adjusted EBITDA in the last two quarters and a strong cash position [39][42] Question: Pricing and gross margins for VOXI5 - Management refrained from providing specific gross margin expectations but indicated that VOXI5 would enhance profitability across various channels [47][48] Question: Connectivity features on products - Management confirmed that they are creating an ecosystem for connectivity, enhancing brand loyalty and value for both B2B customers and patients [52][53]

August 7, 2025 Supplemental Financial Information Use of Non-GAAP Financial Measures Inogen has presented certain financial information in accordance with U.S. GAAP and also on a non-GAAP basis for the three and six months ended June 30, 2025, and June 30, 2024. Management believes that non-GAAP financial measures, taken in conjunction with U.S. GAAP financial measures, provide useful information for both management and investors by excluding certain non-cash and other expenses that are not indicative of In ...

[Recent Highlights and Executive Summary](index=1&type=section&id=Recent%20Highlights) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Kevin Smith noted Inogen's successful turnaround, with six quarters of revenue growth, two quarters of positive adjusted EBITDA, and raised full-year guidance - Achieved **six consecutive quarters of mid-single-digit revenue growth**[3](index=3&type=chunk) - Delivered **two consecutive quarters of positive adjusted EBITDA**[3](index=3&type=chunk) - Raised **full-year revenue guidance** due to strong first-half performance[3](index=3&type=chunk) [Key Achievements](index=1&type=section&id=Key%20Achievements) In Q2 2025, Inogen achieved **$92.3 million revenue** (4.0% YoY), **$2.1 million adjusted EBITDA**, **$4.4 million operating cash flow**, and launched new products Q2 2025 Key Financial Achievements | Metric | Value (Millions) | | :-------------------------------- | :--------------- | | Revenue | $92.3 | | GAAP Net Loss | $(4.2) | | Adjusted Net Loss | $(0.7) | | Adjusted EBITDA | $2.1 | | Operating Cash Flow | $4.4 | | Cash, Cash Equivalents, Marketable Securities, and Restricted Cash (as of June 30, 2025) | $123.7 | - Introduced **Voxi™ 5**, a new stationary oxygen concentrator (SOC) for long-term care patients in the U.S.[7](index=7&type=chunk) - Launched **Inogen Patient Portal** to empower patients with self-service options for managing insurance, ordering accessories, and accessing support[7](index=7&type=chunk) [Second Quarter 2025 Financial Results](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results) [Overview of Q2 Performance](index=1&type=section&id=Overview%20of%20Q2%20Performance) Inogen reported a **4.0% year-over-year revenue increase** to **$92.3 million** in Q2 2025, driven by higher international and domestic B2B demand, despite a gross margin decrease to **44.8%** and improved net losses Q2 2025 Financial Performance Highlights | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (%) | | :-------------------- | :----------------- | :----------------- | :--------- | | Total Revenue | $92.3 | $88.8 | +4.0% | | Total Gross Margin | 44.8% | 48.1% | -3.3 pp | | Total Operating Expense | $47.5 | $49.8 | -4.7% | | GAAP Net Loss | $(4.2) | $(5.6) | Improved by $1.4 | | Adjusted Net Loss | $(0.7) | $(1.6) | Improved by $0.9 | | Adjusted EBITDA | $2.1 | $1.3 | +$0.8 | - Revenue growth was primarily driven by increased demand from **international and domestic business-to-business customers**[4](index=4&type=chunk) - The decrease in gross margin was mainly attributed to increased **business-to-business sales** as a percentage of total revenue[5](index=5&type=chunk) [Financial Outlook](index=2&type=section&id=Full%20Year%20and%20Third%20Quarter%202025%20Financial%20Outlook) [Full Year 2025 Guidance](index=2&type=section&id=Full%20Year%202025%20Guidance) Inogen raised its full-year 2025 revenue expectations to **$354 million to $357 million**, projecting approximately **6% growth** and anticipating Adjusted EBITDA breakeven Full Year 2025 Financial Guidance | Metric | Guidance Range | | :----------------- | :----------------- | | Reported Revenue | $354 million to $357 million | | Revenue Growth (midpoint) | ~6% YoY | | Adjusted EBITDA | Breakeven | [Third Quarter 2025 Guidance](index=2&type=section&id=Third%20Quarter%202025%20Guidance) For Q3 2025, Inogen projects reported revenue between **$91 million and $93 million**, reflecting an approximate **4% year-over-year growth** at the midpoint Third Quarter 2025 Financial Guidance | Metric | Guidance Range | | :----------------- | :----------------- | | Reported Revenue | $91 million to $93 million | | Revenue Growth (midpoint) | ~4% YoY | [Company Information](index=2&type=section&id=Company%20Information) [About Inogen](index=2&type=section&id=About%20Inogen) Inogen, Inc. is a global medical technology company specializing in innovative respiratory products for homecare, developing, manufacturing, and marketing therapy devices for chronic respiratory conditions - Inogen is a leading global medical technology company offering innovative respiratory products for homecare[13](index=13&type=chunk) - The company develops, manufactures, and markets best-in-class respiratory therapy devices for chronic respiratory conditions[13](index=13&type=chunk) - Inogen partners with patients, prescribers, home medical equipment providers, and distributors to make its products widely available[13](index=13&type=chunk) [Investor Relations & Contact](index=2&type=section&id=Investor%20Relations%20%26%20Contact) Inogen provided details for its Q2 2025 conference call, including dial-in information, webcast access, and investor contact email - A conference call was scheduled for **August 7, 2025**, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time[11](index=11&type=chunk) - Live audio webcast and archived recording available on the Inogen Investor Relations website (http://investor.inogen.com/)[11](index=11&type=chunk)[12](index=12&type=chunk) - Investor contact email: **ir@inogen.net**[17](index=17&type=chunk) [Legal and Non-GAAP Disclosures](index=3&type=section&id=Forward-Looking%20Statements%20and%20Non-GAAP%20Financial%20Measures) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section contains a standard disclaimer regarding forward-looking statements, emphasizing inherent risks and uncertainties that could cause actual results to differ materially from anticipated outcomes - Statements regarding future business plans, market opportunities, financial outlook, growth strategies, and anticipated operational results are forward-looking[15](index=15&type=chunk) - Forward-looking statements are subject to risks and uncertainties, including those related to financial guidance, market acceptance, competition, sales capabilities, and international operations[15](index=15&type=chunk) - Information on risks and uncertainties is contained in the company's Annual Report on Form 10-K and other SEC filings[15](index=15&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) Inogen presents certain financial information on both U.S. GAAP and non-GAAP bases, including adjusted EBITDA and adjusted net loss, to provide useful supplemental information for performance comparison and strategic planning - Non-GAAP measures (EBITDA, adjusted EBITDA, adjusted operating expense, adjusted net loss, adjusted diluted EPS) are presented to supplement U.S. GAAP results[16](index=16&type=chunk) - Management uses non-GAAP measures to compare performance against forecasts, benchmark against competitors, and for compensation decisions[16](index=16&type=chunk) - Investors are encouraged to consider both U.S. GAAP and non-GAAP information, along with reconciliations, for a full understanding of the business[16](index=16&type=chunk) [Consolidated Financial Statements (GAAP)](index=4&type=section&id=Consolidated%20Financial%20Statements%20%28GAAP%29) [Consolidated Statements of Comprehensive Loss](index=4&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Loss) For Q2 2025, Inogen's total revenue increased by **4.0% to $92.3 million**, with lower operating expenses leading to an improved loss from operations and a reduced net loss of **$(4.2) million** Consolidated Statements of Comprehensive Loss (Q2 2025 vs Q2 2024) | Metric (in thousands) | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :-------------------------------- | :------ | :------ | :--------- | :--------- | | Total Revenue | $92,277 | $88,765 | $3,512 | +4.0% | | Sales Revenue | $79,172 | $74,425 | $4,747 | +6.4% | | Rental Revenue | $13,105 | $14,340 | $(1,235) | -8.6% | | Gross Profit | $41,341 | $42,737 | $(1,396) | -3.3% | | Total Operating Expense | $47,470 | $49,801 | $(2,331) | -4.7% | | Loss from Operations | $(6,129) | $(7,064) | $935 | Improved | | Net Loss | $(4,152) | $(5,590) | $1,438 | Improved | | Diluted Net Loss Per Share | $(0.15) | $(0.24) | $0.09 | Improved | Consolidated Statements of Comprehensive Loss (Six Months Ended June 30, 2025 vs 2024) | Metric (in thousands) | 6M 2025 | 6M 2024 | Change ($) | Change (%) | | :-------------------------------- | :------ | :------ | :--------- | :--------- | | Total Revenue | $174,557 | $166,790 | $7,767 | +4.7% | | Sales Revenue | $147,642 | $137,520 | $10,122 | +7.4% | | Rental Revenue | $26,915 | $29,270 | $(2,355) | -8.0% | | Gross Profit | $77,713 | $77,108 | $605 | +0.8% | | Total Operating Expense | $91,498 | $100,446 | $(8,948) | -8.9% | | Loss from Operations | $(13,785) | $(23,338) | $9,553 | Improved | | Net Loss | $(10,326) | $(20,168) | $9,842 | Improved | | Diluted Net Loss Per Share | $(0.40) | $(0.86) | $0.46 | Improved | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, Inogen's total assets increased to **$312.0 million** from **$296.2 million**, driven by marketable securities and accounts receivable, while total liabilities decreased and stockholders' equity rose Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change ($) | | :-------------------------------- | :------------ | :---------------- | :--------- | | Cash and Cash Equivalents | $103,685 | $113,795 | $(10,110) | | Marketable Securities | $18,745 | $0 | $18,745 | | Total Current Assets | $203,121 | $185,451 | $17,670 | | Total Assets | $312,040 | $296,185 | $15,855 | | Total Current Liabilities | $67,068 | $76,686 | $(9,618) | | Total Liabilities | $112,549 | $122,325 | $(9,776) | | Total Stockholders' Equity | $199,491 | $173,860 | $25,631 | [Condensed Consolidated Cash Flow](index=6&type=section&id=Condensed%20Consolidated%20Cash%20Flow) For the six months ended June 30, 2025, Inogen reported a net cash outflow from operating activities of **$(12.4) million**, with significant financing inflows of **$24.0 million** from common stock issuance, leading to a smaller overall net decrease in cash Condensed Consolidated Cash Flow Highlights (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change ($) | | :------------------------------------------ | :------- | :------- | :--------- | | Net Cash Provided by (Used in) Operating Activities | $(12,440) | $1,940 | $(14,380) | | Net Cash Used in Investing Activities | $(24,611) | $(25,820) | $1,209 | | Net Cash Provided by Financing Activities | $23,951 | $84 | $23,867 | | Net Decrease in Cash, Cash Equivalents and Restricted Cash | $(12,458) | $(24,013) | $11,555 | - The significant increase in net cash from financing activities was driven by **$27.2 million in proceeds from the issuance of common stock** from a securities purchase agreement[24](index=24&type=chunk) [Supplemental Data and Non-GAAP Reconciliations](index=7&type=section&id=Supplemental%20Financial%20Information%20and%20Non-GAAP%20Reconciliations) [Revenue by Region and Category](index=7&type=section&id=Revenue%20by%20Region%20and%20Category) In Q2 2025, Inogen's revenue growth was primarily fueled by strong **domestic B2B sales (+19.3%)** and **international B2B sales (+17.7%)**, offsetting declines in D2C sales and rentals, with an increase in units sold Q2 2025 Revenue by Region and Category (in thousands) | Category | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :-------------------------- | :------ | :------ | :--------- | :--------- | | Business-to-business domestic sales | $25,406 | $21,287 | $4,119 | +19.3% | | Business-to-business international sales | $35,923 | $30,531 | $5,392 | +17.7% | | Direct-to-consumer domestic sales | $17,843 | $22,607 | $(4,764) | -21.1% | | Direct-to-consumer domestic rentals | $13,105 | $14,340 | $(1,235) | -8.6% | | Total Revenue | $92,277 | $88,765 | $3,512 | +4.0% | Q2 2025 Operational Metrics | Metric | Q2 2025 | Q2 2024 | | :------------------------ | :------ | :------ | | Units Sold | 49,000 | 41,300 | | Net Rental Patients (period-end) | 50,400 | 51,900 | Six Months Ended June 30, 2025 Revenue by Region and Category (in thousands) | Category | 6M 2025 | 6M 2024 | Change ($) | Change (%) | | :-------------------------- | :------ | :------ | :--------- | :--------- | | Business-to-business domestic sales | $46,860 | $37,806 | $9,054 | +23.9% | | Business-to-business international sales | $67,908 | $56,566 | $11,342 | +20.1% | | Direct-to-consumer domestic sales | $32,874 | $43,148 | $(10,274) | -23.8% | | Direct-to-consumer domestic rentals | $26,915 | $29,270 | $(2,355) | -8.0% | | Total Revenue | $174,557 | $166,790 | $7,767 | +4.7% | [Reconciliation of Non-GAAP Measures](index=7&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section provides detailed reconciliations of U.S. GAAP to non-GAAP financial measures, showing that for Q2 2025, Adjusted EBITDA improved to **$2.1 million** and Adjusted Net Loss significantly improved to **$(0.7) million** Non-GAAP EBITDA and Adjusted EBITDA Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | | Net loss (GAAP) | $(4,152) | $(5,590) | $(10,326) | $(20,168) | | EBITDA (non-GAAP) | $(212) | $(1,585) | $(2,323) | $(12,451) | | Adjusted EBITDA (non-GAAP) | $2,081 | $1,258 | $2,117 | $(6,384) | Non-GAAP Adjusted Financial Metrics Reconciliation (Q2 2025 vs Q2 2024, in thousands) | Metric | GAAP 2025 | Adjusted 2025 | GAAP 2024 | Adjusted 2024 | | :-------------------- | :-------- | :------------ | :-------- | :------------ | | Operating Expense | $47,470 | $43,968 | $49,801 | $45,770 | | Loss from Operations | $(6,129) | $(2,627) | $(7,064) | $(3,033) | | Net Loss | $(4,152) | $(650) | $(5,590) | $(1,559) | | Diluted EPS | $(0.15) | $(0.02) | $(0.24) | $(0.07) | Non-GAAP Adjusted Financial Metrics Reconciliation (6M 2025 vs 6M 2024, in thousands) | Metric | GAAP 2025 | Adjusted 2025 | GAAP 2024 | Adjusted 2024 | | :-------------------- | :-------- | :------------ | :-------- | :------------ | | Operating Expense | $91,498 | $84,710 | $100,446 | $92,259 | | Loss from Operations | $(13,785) | $(6,997) | $(23,338) | $(15,151) | | Net Loss | $(10,326) | $(3,538) | $(20,168) | $(11,981) | | Diluted EPS | $(0.40) | $(0.14) | $(0.86) | $(0.51) |

Core Viewpoint - Stock markets are experiencing significant volatility due to the ongoing trade war, economic slowdown expectations, and rising inflation, leading the Federal Reserve to maintain steady interest rates, which poses challenges for retail investors in stock selection and achieving returns [1] Group 1: Broker Recommendations - Following brokers' recommendations can simplify stock selection, with Urban Outfitters, Inc. (URBN), Inogen, Inc. (INGN), and Southwest Gas Holdings, Inc. (SWX) identified as worthwhile investments [2] - Brokers have direct communication with top management, providing them with insights into company performance and industry conditions, which aids in assessing stock potential [3] Group 2: Stock Selection Strategy - A screening strategy for potential winners includes stocks with broker rating upgrades of 1% or more over the last four weeks, current prices above $5, and an average 20-day trading volume greater than 100,000 [5] - Stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) have a proven success record, and those with a VGM Score of A or B combined with a Zacks Rank 1 or 2 offer the best upside potential [6] Group 3: Company Insights - Urban Outfitters, based in Philadelphia, is a lifestyle specialty retailer with a projected 20% year-over-year earnings increase for fiscal 2026 and a 9.1% upward revision in broker ratings over the past four weeks, currently holding a Zacks Rank 2 [7][8] - Inogen, a medical technology company focused on respiratory health, is expected to see a 24.3% year-over-year earnings growth in 2025, with a 25% upward revision in broker ratings and a Zacks Rank 2 [9][10] - Southwest Gas, a regulated utility providing natural gas services, anticipates an 18.4% year-over-year earnings increase in 2025, with a 14.3% upward revision in broker ratings and currently holding a Zacks Rank 1 [10][11]

Group 1 - Needham analyst Mike Matson upgraded Inogen, Inc from Hold to Buy, with a price forecast of $12 [1] - Inogen reported total revenue of $82.3 million for the first quarter, a 5.5% increase from the prior year, or 7.1% at constant currency rates, driven by higher demand from both international and domestic business-to-business customers [1] - The company has returned to mid-single-digit revenue growth, with expectations for further acceleration in the second half of 2025 and into 2026 [2] Group 2 - Management's strategy includes expanding Inogen's focus beyond core offerings into a more diversified respiratory device portfolio, creating multiple new avenues for growth [2] - Management anticipates nearing adjusted EBITDA breakeven in 2025, which is viewed as a positive indicator of progress [3] - The decline in Inogen's direct-to-consumer sales is attributed to a smaller DTC sales force, with projections for margin improvements as these sales stabilize or return to growth [3] Group 3 - Inogen shares are trading higher by 14% to $6.795 [4]