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]

Q2 2025 Financial Performance - Total revenue reached $92.3 million, a 4.0% year-over-year increase[4] - Business-to-business domestic sales were $25.4 million, up 19.3% year-over-year, representing 27.5% of total revenue[4] - Business-to-business international sales amounted to $35.9 million, a 17.7% increase year-over-year, accounting for 38.9% of total revenue[4] - Direct-to-consumer domestic sales were $17.8 million, a decrease of 21.1% year-over-year, making up 19.3% of total revenue[4] - Rental revenue totaled $13.1 million, down 8.6% year-over-year, contributing 14.2% of total revenue[4] Operating Expenses and Profitability - Total operating expenses for the quarter were $47.47 million, compared to $49.801 million in the same period last year[5] - Net loss for the quarter was $4.152 million, compared to a net loss of $5.590 million in the same period last year[5] - Adjusted EBITDA (non-GAAP) for the quarter was $2.081 million, compared to $1.258 million in the same period last year[7] Non-GAAP Adjustments - Stock-based compensation for the quarter was $2.293 million[7, 9, 11] - Amortization of intangibles for the quarter was $1.209 million[9]

[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]

Core Viewpoint - Inogen (INGN) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling pressure that affects stock prices [4]. Recent Performance of Inogen - For the fiscal year ending December 2025, Inogen is expected to earn -$1.15 per share, reflecting a 24.3% change from the previous year's reported number [8]. - Over the past three months, the Zacks Consensus Estimate for Inogen has increased by 22.5%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Inogen to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Group 1 - Inogen (INGN) has experienced a significant decline of 15.7% over the past four weeks, but it is now in oversold territory, indicating a potential trend reversal [1] - The Relative Strength Index (RSI) for INGN is currently at 28.33, suggesting that the heavy selling pressure may be exhausting itself [5] - There is strong consensus among Wall Street analysts that INGN will report better earnings than previously predicted, with a consensus EPS estimate increase of 18.6% over the last 30 days [6] Group 2 - 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, indicating a potential turnaround [7]

Part I [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements present Inogen's financial position as of March 31, 2025, and its results of operations and cash flows for the three months then ended, showing increased assets, decreased liabilities, and a narrowed net loss [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets increased to **$308.4 million** from **$296.2 million**, while total liabilities decreased to **$110.5 million** from **$122.3 million**, with stockholders' equity rising to **$198.0 million** due to a private placement Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $118,893 | $113,795 | | Accounts receivable, net | $36,623 | $29,563 | | Inventories, net | $26,273 | $24,812 | | Total current assets | $200,708 | $185,451 | | Total assets | $308,412 | $296,185 | | **Liabilities & Equity** | | | | Accounts payable and accrued expenses | $35,925 | $27,153 | | Earnout liability | $0 | $13,000 | | Total current liabilities | $65,451 | $76,686 | | Total liabilities | $110,460 | $122,325 | | Total stockholders' equity | $197,952 | $173,860 | [Consolidated Statements of Comprehensive Loss](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Loss) For Q1 2025, total revenue increased to **$82.3 million** from **$78.0 million** in the prior-year period, resulting in a narrowed net loss of **$6.2 million** or **($0.25)** per share, significantly improving from a **$14.6 million** loss Statement of Comprehensive Loss Highlights (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenue | $82,280 | $78,025 | | Gross profit | $36,372 | $34,371 | | Total operating expense | $44,028 | $50,645 | | Loss from operations | $(7,656) | $(16,274) | | Net loss | $(6,174) | $(14,578) | | Basic and Diluted net loss per share | $(0.25) | $(0.62) | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities increased to **$16.8 million** in Q1 2025, primarily due to an earnout payment, while financing activities provided **$24.0 million** from a stock issuance, leading to a **$5.1 million** net increase in cash Cash Flow Summary (in thousands) | Activity | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(16,790) | $(4,749) | | Net cash used in investing activities | $(2,038) | $(13,444) | | Net cash provided by financing activities | $23,951 | $285 | | Net increase (decrease) in cash | $5,124 | $(18,048) | - Financing activities in Q1 2025 included **$27.2 million** in proceeds from the issuance of common stock from a securities purchase agreement and a **$3.2 million** payment of an accrued earnout[21](index=21&type=chunk)[139](index=139&type=chunk) [Condensed Notes to the Consolidated Financial Statements](index=9&type=section&id=Condensed%20Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes detail accounting policies and key events, including a strategic collaboration and **$27.2 million** private placement with Yuwell, the full payment of a **$13.0 million** earnout liability, and the company's single reportable segment in respiratory care - On January 25, 2025, the Company entered into a Strategic Collaboration Agreement with Yuwell to broaden its product portfolio, enhance R&D, and enter the Chinese market[27](index=27&type=chunk) - The company paid off the **$13.0 million** earnout liability related to the Physio-Assist acquisition during the first quarter of 2025[36](index=36&type=chunk) - The company determined it operates and reports in a single operating and reportable segment focused on oxygen therapy and respiratory care[85](index=85&type=chunk) - On February 21, 2025, an investor, a subsidiary of Yuwell, purchased **2,626,425** shares of common stock for an aggregate price of approximately **$27.2 million**[69](index=69&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, highlighting a **5.5%** revenue increase to **$82.3 million**, a significant reduction in operating loss to **$7.7 million**, and strengthened liquidity from a **$27.2 million** private placement [Overview and Strategy](index=32&type=section&id=Overview%20and%20Strategy) Inogen, a medical technology company, focuses on expanding its respiratory product offerings, growing B2B networks, optimizing direct-to-consumer sales, and investing in R&D, notably through a collaboration with Yuwell - Strategic goals include expanding product offerings, growing domestic and international B2B channels, improving direct-to-consumer productivity, and optimizing rental revenues[106](index=106&type=chunk) - The company obtained 510(k) clearance for its Simeox airway clearance device in December 2024 and plans to leverage its commercial infrastructure for a U.S. launch in 2025[107](index=107&type=chunk) - A collaboration with Yuwell, initiated in January 2025, is expected to broaden the product portfolio, enhance innovation, and accelerate entry into the Chinese market[108](index=108&type=chunk) [Results of Operations](index=34&type=section&id=Results%20of%20Operations) For Q1 2025, total revenue rose **5.5%** to **$82.3 million**, driven by strong B2B sales growth, while operating expenses significantly decreased, leading to a narrowed operating loss Revenue by Category (in thousands) | Revenue Category | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Business-to-business domestic sales | $21,454 | $16,519 | 29.9% | | Business-to-business international sales | $31,985 | $26,035 | 22.9% | | Direct-to-consumer domestic sales | $15,031 | $20,541 | -26.8% | | Direct-to-consumer domestic rentals | $13,810 | $14,930 | -7.5% | | **Total revenue** | **$82,280** | **$78,025** | **5.5%** | Operating Expenses (in thousands) | Expense Category | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Research and development | $4,034 | $6,578 | -38.7% | | Sales and marketing | $23,757 | $26,936 | -11.8% | | General and administrative | $16,237 | $17,131 | -5.2% | - Net loss decreased by **$8.4 million (57.6%)** year-over-year, primarily due to increased sales revenue and lower operating expenses[126](index=126&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company had **$118.9 million** in cash, bolstered by a **$27.2 million** private placement, and management believes current resources are sufficient for future operating and investing needs - As of March 31, 2025, the company had cash and cash equivalents of **$118.9 million**[127](index=127&type=chunk) - The company received **$27.2 million** from the Yuwell private placement and paid out a **$13.0 million** earnout liability in Q1 2025[127](index=127&type=chunk) Summary of Cash Flows (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Cash used in operating activities | $(16,790) | $(4,749) | | Cash used in investing activities | $(2,038) | $(13,444) | | Cash provided by financing activities | $23,951 | $285 | - Management believes current capital resources are sufficient to meet projected operating and investing requirements for at least the next 12 months[129](index=129&type=chunk) [Non-GAAP Financial Measures](index=42&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures EBITDA and Adjusted EBITDA to assess operating performance, with Adjusted EBITDA significantly improving to positive **$36,000** in Q1 2025 from a **$7.6 million** loss in Q1 2024 Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss (GAAP) | $(6,174) | $(14,578) | | EBITDA (non-GAAP) | $(2,111) | $(10,866) | | Stock-based compensation | $2,147 | $2,416 | | Acquisition-related expenses | $0 | $238 | | Change in fair value of earnout liability | $0 | $570 | | **Adjusted EBITDA (non-GAAP)** | **$36** | **$(7,642)** | [Quantitative and Qualitative Disclosures about Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risks are foreign currency exchange risk, particularly from Euro-denominated sales, which are hedged with forward contracts, and minimal interest rate risk due to highly liquid investments - The principal market risk is foreign currency exchange risk, as the majority of European sales are in Euros while revenue is reported in U.S. dollars[151](index=151&type=chunk) - The company has begun using foreign exchange forward contracts to hedge its forecasted U.S. dollar-equivalent earnings from adverse currency rate changes[152](index=152&type=chunk) - Interest rate risk is considered low, as cash and cash equivalents of **$122.5 million** as of March 31, 2025, are held in highly liquid investments with maturities of three months or less[153](index=153&type=chunk) [Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective at the reasonable assurance level[154](index=154&type=chunk) - No changes in internal control over financial reporting occurred during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal controls[155](index=155&type=chunk) Part II – Other Information [Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings arising in the normal course of business but does not anticipate any of these will have a material adverse effect on its operations - The company is party to various legal proceedings from the normal course of business and does not expect them to have a material adverse effect[158](index=158&type=chunk) [Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes from the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - As of the date of this report, there have been no material changes from the risk factors previously disclosed in the 2024 Annual Report on Form 10-K[159](index=159&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities and made no repurchases of its common stock during the three months ended March 31, 2025 - The company did not repurchase any shares of its common stock during the three months ended March 31, 2025[161](index=161&type=chunk) [Other Information](index=47&type=section&id=Item%205.%20Other%20Information) During the first quarter of 2025, none of the company's directors or Section 16 reporting officers adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement - No directors or Section 16 officers adopted or terminated any Rule 10b5-1 trading arrangements during the quarter[164](index=164&type=chunk) [Exhibits](index=48&type=section&id=Item%206.%20Exhibits) The report includes key exhibits such as the Collaboration Agreement with Jiangsu Yuyue Medical Equipment & Supply Co., Ltd., CEO and CFO certifications, and XBRL data files - Key exhibits filed include the Collaboration Agreement with Yuwell, a Registration Rights Agreement, and CEO/CFO certifications under Sarbanes-Oxley Sections 302 and 906[167](index=167&type=chunk)

Core Insights - Inogen, Inc. reported an adjusted loss per share of 11 cents for Q1 2025, an improvement from a loss of 45 cents in the same period last year and better than the Zacks Consensus Estimate of a loss of 52 cents [1] - The company achieved revenues of $82.3 million for Q1 2025, reflecting a year-over-year increase of 5.5% and surpassing the Zacks Consensus Estimate by 3.3% [2] Revenue Performance - The revenue growth was primarily driven by increased demand and new customer acquisitions in domestic and international business-to-business channels, although this was partially offset by declines in direct-to-consumer sales and rental revenues [3] - Rental revenues decreased by 7.5% year-over-year to $13.8 million, while sales revenues increased by 8.5% to $68.5 million [4] Regional and Segment Analysis - Domestic business-to-business sales rose by 29.9% year-over-year to $21.5 million, driven by new customer demand [5] - International business-to-business sales increased by 22.9% year-over-year to $31.9 million, with a 27.9% increase at constant exchange rates [5] - Domestic direct-to-consumer sales fell by 26.8% year-over-year to $15 million [6] Profitability and Expenses - Adjusted gross profit increased by 4.9% year-over-year to $39.4 million, but the adjusted gross margin contracted by 20 basis points to 47.9% [7] - Sales and marketing expenses decreased by 11.8% to $23.8 million, R&D expenses fell by 38.7% to $4 million, and general and administrative expenses decreased by 5.2% to $16.2 million [8] Financial Position - Inogen ended Q1 2025 with cash and cash equivalents of $118.9 million, up from $113.8 million at the end of 2024 [9] - The company had no debt on its balance sheet, but net cash used in operating activities increased to $16.8 million from $4.7 million a year ago [10] Future Guidance - For Q2 2025, Inogen expects revenues between $89 million and $91 million, reflecting flat to 3% growth from Q2 2024 [11] - For the full year 2025, the revenue outlook is set at $352 million to $355 million, indicating a growth of 5-6% from 2024 [12] Strategic Developments - Inogen finalized a strategic collaboration with Jiangsu Yuyue Medical Equipment & Supply Co., Ltd., aimed at expanding its product portfolio and enhancing its innovation pipeline [14]