Jacob Fund is a mutual fund company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The latest quarter showed continued market recovery, with major equity indexes reaching new all-time highs. After uncertainties regarding trade policy, finalized tariffs had a limited economic impact, stabilizing the market and refocusing investors on fundamentals. The fund anticipates a new productivity cycle that will enhance profit margins and earnings growth by keeping labo ...

Core Viewpoint - Inogen (INGN) is experiencing significant selling pressure, with a 19.2% decline over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, supported by analysts predicting better-than-expected earnings [1] Technical Analysis - The Relative Strength Index (RSI) is a momentum oscillator that indicates whether a stock is oversold, with readings below 30 typically signaling this condition [2] - INGN's current RSI reading of 27.38 suggests that the heavy selling may be exhausting, indicating a possible bounce back towards equilibrium in supply and demand [5] Fundamental Analysis - There is strong consensus among sell-side analysts to raise earnings estimates for INGN, with a 5.3% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [7] - INGN holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further indicating potential for a near-term turnaround [8]

Core Insights - Inogen (INGN) is making progress towards a sustainable business model that aims to generate respectable revenue growth and margins, but the progress has been slower and more inconsistent than expected [1] Company Summary - Inogen is focused on transitioning to a more sustainable business model [1] - The revenue growth and margin improvements are ongoing but not meeting the anticipated pace [1]

Business Overview - The company primarily develops, manufactures, and markets innovative respiratory products, including portable oxygen therapy solutions and the Simeox product for airway clearance treatment [103]. - The majority of the company's revenue is derived from the sale and rental of portable oxygen concentrator systems and related accessories [104]. - The company aims to expand its domestic home medical equipment provider and reseller network, focusing on business-to-business partnerships [105]. - There is a significant international market opportunity, particularly in Europe, where oxygen reimbursement for respiratory conditions exists [105]. - The company has established a base of operations for sales and customer service in the Netherlands and uses a contract manufacturer in the Czech Republic to support European sales volumes [105]. - The company is focused on expanding in the Asia-Pacific region and Latin America, adding sales representatives to establish new distributors in promising markets [105]. Financial Performance - Sales revenue increased by $4.2 million, or 5.6%, to $79.1 million for the three months ended September 30, 2025, compared to $74.9 million in the same period of 2024 [108]. - Total revenue for the three months ended September 30, 2025, was $92.4 million, up 4.0% from $88.8 million in the same period of 2024 [108]. - Approximately 51,100 oxygen systems were sold in the three months ended September 30, 2025, representing a 16.4% increase from approximately 43,900 systems sold in the same period of 2024 [108]. - Domestic direct-to-consumer sales decreased by 17.9% to $15.8 million for the three months ended September 30, 2025, compared to $19.2 million in the same period of 2024 [113]. - International business-to-business sales increased by 18.8% to $38.4 million for the three months ended September 30, 2025, compared to $32.3 million in the same period of 2024 [112]. - Total gross profit for the three months ended September 30, 2025, was $41.3 million, a slight decrease from $41.3 million in the same period of 2024 [114]. - Net loss decreased by $0.7 million, or 11.2%, for the three months ended September 30, 2025, primarily due to an increase in sales revenue and lower operating expenses [125]. - Sales revenue for the nine months ended September 30, 2025 was $226.7 million, an increase of $14.3 million, or 6.7%, compared to the same period in 2024, driven by higher demand in international and domestic business-to-business sales [126]. - Domestic business-to-business sales increased by 17.3% for the nine months ended September 30, 2025, while international business-to-business sales rose by 19.6% during the same period [128][129]. - Total gross profit for the nine months ended September 30, 2025 was $119.0 million, a slight increase of $0.6 million, or 0.5%, compared to the same period in 2024 [131]. Expenses and Costs - Research and development expenses increased by $1.3 million, or 37.6%, to $4.8 million for the three months ended September 30, 2025, compared to $3.5 million in the same period of 2024 [118]. - Research and development expenses decreased by $1.6 million, or 10.4%, for the nine months ended September 30, 2025, primarily due to a reduction in consulting expenses [135]. - Sales and marketing expenses decreased by $4.3 million, or 5.5%, for the nine months ended September 30, 2025, mainly due to lower media and advertising costs [136]. - General and administrative expenses decreased by $1.1 million, or 5.7%, to $19.3 million for the three months ended September 30, 2025, compared to $20.4 million in the same period of 2024 [120]. - General and administrative expenses decreased by $3.7 million, or 6.7%, for the nine months ended September 30, 2025, primarily due to lower bad debt expenses and changes in fair value of the earnout liability [137]. Cash Flow and Assets - Cash and cash equivalents as of September 30, 2025, totaled $106.5 million, consisting of highly liquid investments with a maturity of three months or less [142]. - Cash used in operating activities for the nine months ended September 30, 2025, was $(10.3) million, compared to cash provided of $8.9 million in the same period of 2024, representing a change of $(19.2) million or -215.0% [146]. - Cash provided by financing activities for the nine months ended September 30, 2025, was $24.4 million, a significant increase of $23.8 million or 4541.7% compared to $0.5 million in 2024 [146]. - Total current assets increased to $203.7 million as of September 30, 2025, from $185.5 million in 2024, while total current liabilities decreased to $64.9 million from $76.7 million [146]. - As of September 30, 2025, the company had cash, cash equivalents, and restricted cash totaling $107.8 million, along with $16.7 million in marketable securities [168]. Tax and Net Loss - Income tax benefit increased by $0.1 million, or 44.6%, for the three months ended September 30, 2025 compared to the same period in 2024, attributed to lower foreign and state taxes [122]. - Income tax benefit for the nine months ended September 30, 2025 increased by $0.1 million, or 53.5%, compared to the same period in 2024, attributed to lower foreign and state taxes [139]. - Net loss for the nine months ended September 30, 2025, decreased by $10.5 million, or 40.2%, to $(15.6) million compared to $(26.1) million for the same period in 2024 [141]. Market and Currency Risks - The company continues to monitor potential supply chain constraints and inflationary pressures that could impact costs and availability of raw materials [100]. - A hypothetical 10% adverse change in foreign exchange rates would have resulted in an estimated $8.4 million decline in revenue for the nine months ended September 30, 2025 [167]. - The company is exposed to foreign currency exchange risk, with the majority of revenue in U.S. dollars and European sales in Euros, leading to potential fluctuations in net income [166]. - The company has begun entering into foreign exchange forward contracts to hedge against adverse currency exchange rate movements, which will reduce but not eliminate the impact on revenue and cash flows [167]. - The volatility of exchange rates is influenced by factors that cannot be reliably forecasted, posing a risk to future operations as international presence grows [166]. Future Outlook - The company expects existing capital resources and cash generated from product sales to meet projected operating and investing requirements for at least the next 12 months [93]. - Future funding requirements will depend on various factors, including market acceptance of products and costs related to research and development activities [144]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $4.4 million, compared to $(5.9) million for the same period in 2024 [163]. - The effective tax rate for the nine months ended September 30, 2025, increased due to a lower net loss and foreign and state taxes [140]. - The company does not hold or issue financial instruments for trading purposes, focusing instead on liquidity and capital preservation [165].

Core Insights - Inogen, Inc. reported an adjusted loss per share of 2 cents for Q3 2025, an improvement from the adjusted loss of 11 cents in the same period last year and better than the Zacks Consensus Estimate of a 22 cents loss per share [1][6] - Total revenues for the third quarter were $92.4 million, reflecting a 4% year-over-year increase, although it fell short of the Zacks Consensus Estimate by 0.1% [2][6] Revenue Analysis - The revenue growth was primarily driven by increased demand from both international and domestic business-to-business customers, despite declines in direct-to-consumer and rental revenue [3][6] - Rental revenues decreased by 4.4% year-over-year to $13.3 million, attributed to lower average billing rates due to a shift towards private payers [4][6] - Sales revenues increased by 5.6% year-over-year to $79.1 million [7] Regional Performance - Domestic business-to-business sales reached $24.9 million, up 6.6% year-over-year, driven by demand from new customers and resellers [8] - International business-to-business sales amounted to $38.4 million, marking an 18.8% increase year-over-year [8] - Domestic direct-to-consumer sales fell by 17.9% year-over-year to $15.8 million [9] Profitability Metrics - Adjusted gross profit for the quarter was $44.3 million, a decline of 0.7% from the previous year, with the adjusted gross margin contracting by 230 basis points to 47.9% [10] - Adjusted operating expenses decreased by 4.8% year-over-year to $43.6 million, with a notable increase in research and development expenses by 37.6% to $4.8 million [11] Financial Position - At the end of Q3 2025, Inogen had cash and cash equivalents of $106.5 million, up from $103.7 million at the end of Q2 2025, and no debt on its balance sheet [12] - Cumulative net cash used in operating activities was $10.3 million, compared to a net cash provided of $8.9 million a year ago [12] Future Guidance - For Q4 2025, Inogen expects revenues between $87 million and $90 million, indicating approximately 10% growth at the midpoint compared to Q4 2024 [13] - 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 [14] Strategic Developments - Inogen launched the Voxi 5, a new stationary oxygen concentrator, which has received positive early market reception, particularly in the B2B channel [16][17] - The company also initiated a limited U.S. market release of Simeox, a bronchial-decongestion solution, while conducting clinical trials in Europe and China [18]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Insights - Inogen reported a quarterly loss of $0.20 per share, which is better than the Zacks Consensus Estimate of a loss of $0.22, and an improvement from a loss of $0.25 per share a year ago [1][2] - The company achieved an earnings surprise of +9.09% for the quarter, having surpassed consensus EPS estimates in all four of the last quarters [2] - Inogen's revenues for the quarter were $92.39 million, slightly missing the Zacks Consensus Estimate by 0.12%, but showing growth from $88.83 million year-over-year [3] Financial Performance - The company has consistently exceeded consensus revenue estimates three times over the last four quarters [3] - The current consensus EPS estimate for the upcoming quarter is -$0.33 on revenues of $89.4 million, and for the current fiscal year, it is -$0.95 on revenues of $356.5 million [8] Market Position - Inogen shares have declined approximately 12.1% since the beginning of the year, contrasting with the S&P 500's gain of 15.1% [4] - The Zacks Industry Rank places the Medical - Instruments sector in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [9] Future Outlook - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [4][5] - The estimate revisions trend for Inogen was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market [7]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $92.4 million, an increase of 4% year-over-year, marking the seventh consecutive quarter of mid-single-digit revenue growth [5][11] - Adjusted EBITDA was positive at $2.3 million, compared to $0.5 million in the prior period, indicating improved profitability [15] - GAAP net loss was $5.3 million, a reduction from a loss of $6 million in the prior period, resulting in a loss per diluted share of $0.20 [14][15] Business Line Data and Key Metrics Changes - Domestic B2B revenue increased by 6.6% to $24.9 million, driven by increased demand [11] - International B2B revenue saw a significant increase of 18.8% to $38.4 million, attributed to successful expansion into new geographies [11] - Direct-to-consumer sales decreased by 17.9% to $15.8 million, reflecting a strategic shift towards a leaner operating model [12] - Rental revenue decreased by 4.4% to $13.3 million, primarily due to a higher mix of lower private payer reimbursement rates [12] Market Data and Key Metrics Changes - The international market contributed significantly to growth, with a focus on expanding into high-opportunity global markets, particularly in Europe [6][22] - The global COPD market represents a $600 million long-term conversion opportunity, indicating substantial growth potential [7] Company Strategy and Development Direction - The company is focused on three strategic priorities: driving top-line growth, advancing profitability, and expanding the innovation pipeline [5] - International expansion remains a key pillar of the long-term growth strategy, with efforts to deepen DME relationships and secure international tenders [6] - The launch of the Voxy 5 stationary oxygen concentrator is a significant step in expanding the product portfolio and enhancing market presence [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining revenue growth and achieving profitability, with an upward revision of full-year adjusted EBITDA expectations to approximately $2 million [8][16] - The company anticipates continued growth in the international B2B segment, with expectations of maintaining upper single-digit to double-digit growth rates [22] - Management highlighted the importance of operational excellence and disciplined cost management in strengthening the financial foundation [7] Other Important Information - The company reported a total gross margin of 44.7%, a decrease of 182 basis points year-over-year, primarily due to increased B2B sales [13] - Cash and cash equivalents as of September 30, 2025, were $124.5 million, with no debt outstanding, reflecting a strong balance sheet [15] Q&A Session Summary Question: Insights on international B2B growth - Management clarified that the growth in international B2B was not driven by a single tender but by overall momentum and expansion within existing markets, particularly in Europe [22] Question: Sales status of Voxy 5 - Initial sales of Voxy 5 have begun, but significant revenue impact is expected more in 2026 as the foundation is being built [24] Question: Decline in rental gross margins - The decline in rental gross margins was attributed to logistic-related adjustments and a decrease in Medicare patients, which affects reimbursement rates [29][30] Question: Progress on Symbiox reimbursement - Management reported positive progress towards achieving reimbursement for Symbiox, with ongoing trials in Europe and China, and a limited market release in the U.S. [32][33]

November 5, 2025 Q3 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 nine months ended September 30, 2025, and September 30, 2024, including EBITDA; adjusted EBITDA; adjusted operating expense; adjusted loss from operations; adjusted net loss; and adjusted diluted EPS. Management believes that non-GAAP financial measures, taken in conjunction with U.S. GAAP ...

Financial Performance - Total revenue for Q3 2025 was $92.4 million, representing a 4.0% increase year-over-year, marking the seventh consecutive quarter of mid-single-digit revenue growth [4] - GAAP net loss for Q3 2025 was $5.3 million, an improvement from a net loss of $6.0 million in the prior-year period [6] - Adjusted EBITDA for Q3 2025 was $2.3 million, compared to $0.5 million in the prior-year period, indicating the third consecutive quarter of positive adjusted EBITDA [7] - For the full year 2025, the company reiterates its revenue outlook in the range of $354 million to $357 million, reflecting approximately 6% growth at the midpoint compared to 2024 revenue [9] - The fourth quarter 2025 revenue is expected to be in the range of $87 million to $90 million, indicating approximately 10% year-over-year growth at the midpoint [10] - Adjusted net loss for Q3 2025 was $0.5 million, compared to an adjusted net loss of $2.6 million in the prior-year period [6] - Net loss for the nine months ended September 30, 2025, was $15,620,000, an improvement from a net loss of $26,131,000 in the same period of 2024 [26] - For the three months ended September 30, 2025, the company reported a net loss of $5,294 million, compared to a net loss of $5,963 million in the same period of 2024, representing a 11.2% improvement [31] - The total loss from operations for the nine months ended September 30, 2025, was $20,901 million, a decrease of 32.8% compared to a loss of $31,130 million in 2024 [31] Cash and Assets - The company has cash, cash equivalents, marketable securities, and restricted cash totaling $124.5 million as of September 30, 2025, with no debt outstanding [8] - Total current assets rose to $203,715,000 as of September 30, 2025, compared to $185,451,000 at the end of 2024, marking a 9.0% increase [24] - Cash and cash equivalents as of September 30, 2025, were $106,476,000, down from $113,795,000 at the end of 2024 [24] - The company reported a net cash used in operating activities of $10,273,000 for the nine months ended September 30, 2025, compared to a net cash provided of $8,932,000 in the same period of 2024 [26] Sales and Market Performance - Business-to-business international sales increased by 18.8% to $38,403,000 from $32,328,000 year-over-year [28] - Direct-to-consumer domestic sales declined by 17.9% to $15,803,000 from $19,249,000 year-over-year [28] - Units sold in Q3 2025 reached 51,100, up from 43,900 in Q3 2024, indicating a growth of 16.3% [28] Expenses and Liabilities - Total operating expense for Q3 2025 was $48.4 million, a decrease of 1.4% from $49.1 million in the prior-year period, reflecting ongoing cost management efforts [5] - Total liabilities decreased to $109,834,000 from $122,325,000, reflecting a reduction of approximately 10.1% [24] - The adjusted operating expenses for the nine months ended September 30, 2025, were $128,310 million, down from $138,037 million in 2024, indicating a decrease of 7.3% [31] Other Financial Metrics - Total gross margin for Q3 2025 was 44.7%, down from 46.5% in the prior-year period, primarily due to increased business-to-business sales [5] - The diluted EPS for the three months ended September 30, 2025, was $(0.20), an improvement from $(0.25) in 2024, reflecting a 20% reduction in losses per share [31] - Non-GAAP adjusted net loss for the three months ended September 30, 2025, was $(462) million, compared to $(2,605) million in 2024, showing a significant reduction of 82.3% [31] Legal and Settlement Expenses - The company incurred $1,784 million in legal and settlement expenses for the nine months ended September 30, 2025, consistent with the same amount in 2024 [31] - The company reported acquisition-related expenses of $127 million for the three months ended September 30, 2024, with no such expenses reported in 2025 [31] - The change in fair value of earnout liability for the nine months ended September 30, 2024, was $1,830 million, with no such adjustments reported in 2025 [31] Stock-Based Compensation and Amortization - Stock-based compensation for the nine months ended September 30, 2025, was $6,203 million, compared to $5,704 million in 2024, representing an 8.7% increase [31] - Amortization of intangibles for the three months ended September 30, 2025, was $1,285 million, up from $1,107 million in 2024, reflecting a 15.9% increase [31]