InMode Ltd. (NASDAQ: INMD ) stock is trading closer to its 52-week lows after dropping by upper single-digit losses so far this year. That said, the company is, to me, presenting an appealing investment opportunity ahead of its Q3 updateGamu Dave Innocent Pasi is a seasoned financial professional and writer, bringing a wealth of experience from his prior roles as a financial analyst and in investment research. With a strong background in analyzing financial statements, capital markets, and the macro-economy ...

Summary of InMode Conference Call Company Overview - **Company**: InMode - **Industry**: Medical Technology, specifically in energy-based, minimally invasive surgical aesthetic and medical treatment solutions Key Points and Arguments Market Conditions - The aesthetic market has been experiencing a slowdown since summer 2023, attributed to macroeconomic factors and softening demand [4][6] - InMode has a strong financial position, being debt-free with a solid cash balance, which allows it to navigate the current market challenges [9] Financing and Credit - Approximately 90% of InMode's capital equipment sales are financed through third-party leasing companies [6] - Rising interest rates have increased monthly payments for customers, leading to tighter credit conditions and more rigorous approval processes [6][7] Product Strategy - InMode has opted not to lower prices, believing it would be detrimental in the long run [16] - The company is expanding its product offerings to include lasers and other technologies, aiming to become a one-stop shop for customers [16][17] Market Penetration - InMode has achieved about 25-30% penetration in the plastic surgeon community but only 5-7% in dermatology, indicating significant growth potential in the latter [20][22] - The company is focusing on upgrading existing customers to newer technologies, which could enhance penetration further [22][32] Patient Demand - There has been a decline in patient demand over the last couple of years, impacting capital equipment sales [58] - Recent months have shown signs of stabilization in demand, although it remains below previous levels [61][63] International Growth - InMode has seen a return to double-digit growth in international markets, attributed to leadership changes and direct operations in countries like Germany and Japan [81][82] - The company is working with a distributor in China and is awaiting approvals for more products, which could enhance sales in that market [87][90] Tariff Impact - The company anticipates a 200-300 basis point headwind from tariffs, with ongoing supply chain adjustments aimed at mitigating this impact [64][70] - Future guidance on tariffs will depend on the success of these adjustments and potential treaties between Israel and the U.S. [69] Future Outlook - InMode is cautiously optimistic about achieving 5-6% revenue growth in the coming years, which would add $25-30 million to the top line annually [94][96] - The company expects new product launches to contribute positively to revenue growth [94] Additional Important Information - The aesthetic space is cyclical, and down cycles typically do not last more than two to three years [12] - The company is actively pursuing opportunities in women's health, which is seen as a significant growth driver [54][56] - InMode is also developing a standalone team focused on ophthalmology, which is expected to boost growth once FDA approvals are secured [53][54]

Company Overview - InMode Ltd. is a leading global provider of innovative medical technologies, focusing on developing, manufacturing, and marketing devices that utilize novel radio frequency (RF) technology [3] - The company aims to enable new surgical procedures and enhance existing treatments across various medical fields, including plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology [3] Upcoming Events - Yair Malca, the Chief Financial Officer of InMode, will present in-person at the Baird 2025 Global Healthcare Conference in New York on September 10, 2025 [1] - The presentation will be moderated by Jeff Johnson, a Senior Research Analyst, and is scheduled for 8:30 am Eastern Time [2] - InMode will also conduct one-on-one investor meetings on the same day, with scheduling available through Baird representatives [2]

Summary of InMode (INMD) FY Conference Call - August 12, 2025 Company Overview - InMode is a leading player in the global energy-based aesthetic treatments market [1] Key Financial Performance - Q2 performance was described as "okay," not as strong as hoped, but not a terrible quarter [3] - There was a decline in the U.S. market, offset by record performance in Europe and growth in Asia Pacific [4] - Continued challenges include low patient demand and higher interest rates affecting capital equipment investments [5] - Q2 guidance was lowered by $5 million due to underperformance in both Q1 and Q2 [7] Market Dynamics - The revenue mix has shifted to approximately 50% from the U.S. and 50% from outside the U.S., compared to a previous 65% U.S. and 35% OUS [15] - The U.S. market is seen as more profitable, and recovery in consumer confidence is anticipated to improve this mix [15] - The entire energy-based device industry is facing similar challenges, with declines in sales reported across competitors [17] Product Development and Trends - There is an increasing trend in non-invasive platform treatments, particularly combination treatments like Morpheus8 with CO2 laser procedures [10] - Demand for new platforms like Optimus Max and Ignite has been weaker than expected due to economic conditions [19] - A new wellness platform for erectile dysfunction is set for a full launch soon, with current sales based on FDA clearance for improved blood circulation [23] Research and Development Strategy - InMode plans to continue introducing new products in both aesthetic and wellness areas, focusing on minimally invasive and non-invasive procedures [26] - The company is exploring the development of products targeting cheaper, non-invasive procedures [26] Management and Organizational Changes - Changes in the management structure were made to adapt to accelerated growth, including promotions and new hires in various regions [28] - The sales team is being reorganized to create specialties for different product lines [31] Capital Allocation Strategy - InMode has repurchased 27% of the company for approximately $400 million and is considering further buybacks, dividends, and M&A opportunities [36][37] - The company is open to various cash allocation strategies to support future growth [37] Tariff Impact - The company estimates an average tariff impact of 10%, which could affect gross margins by 2-3% annually [39] Conclusion - InMode is navigating a challenging market environment but remains focused on product innovation, strategic management changes, and capital allocation to drive future growth [1][28][37]

Company Overview - InMode Ltd. is a leading global provider of innovative medical technologies, focusing on developing, manufacturing, and marketing devices that utilize novel radio frequency (RF) technology [2] - The company aims to enable new surgical procedures and enhance existing treatments, offering a comprehensive line of products across various medical fields including plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology [2] Investor Conferences - InMode will participate in the 10th Annual Needham Virtual MedTech & Diagnostics Conference on August 11, 2025, with CEO Moshe Mizrahy presenting in virtual one-on-one meetings [1] - The company will also attend the Canaccord 45th Annual Global Growth Conference on August 12, 2025, featuring CFO Yair Malca in an in-person fireside chat moderated by Caitlin Cronin [1]

Financial Data and Key Metrics Changes - InMode generated revenues of $95.6 million in Q2 2025, compared to $86.4 million in Q2 2024, which excluded $16.2 million in preorders for new platforms not delivered by 2024 [7][8] - GAAP net income increased to $26.7 million, up 12% from $23.8 million in the previous year, while non-GAAP net income rose to $30.1 million from $29 million [11] - GAAP diluted earnings per share (EPS) for Q2 were $0.42, significantly up from $0.28 in 2024, and non-GAAP diluted EPS was $0.47, up from $0.34 [11] Business Line Data and Key Metrics Changes - Minimally invasive platforms accounted for 84% of total revenues in Q2 2025 [7] - Sales outside the U.S. reached $45 million, representing 48% of overall sales, marking an 11% year-over-year increase [8] - Sales and marketing expenses increased to $47.5 million from $45.1 million in the same period last year, reflecting continued investment in the sales team [9] Market Data and Key Metrics Changes - Europe was the largest geographical revenue contributor, achieving a record of $23 million [8] - The company has a direct sales force of over 297 representatives and distributor coverage in more than 74 countries [9] Company Strategy and Development Direction - The company is restructuring its sales team to enhance market penetration, particularly in the ophthalmology market with a specialized manager and dedicated sales team for the Envision platforms [5] - InMode is expanding its global footprint with new direct operations in Thailand and Argentina to improve customer support and streamline operations [5] - A user meeting is scheduled for late August to launch new wellness platforms aimed at increased blood circulation and pain relief for the urology community, with initial revenue expected in Q4 [6] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging medical aesthetic market, particularly in North America, due to reduced personnel spending and fewer treatments [4][5] - The company remains confident in its offerings and brand recognition, supported by a strong balance sheet and diversified portfolio [6] - Management expects revenues for 2025 to be between $365 million and $375 million, down from previous guidance of $395 million to $405 million [12][13] Other Important Information - Gross margin remained strong at 80% on a GAAP basis, consistent with Q2 2024, while non-GAAP gross margin was 80%, down from 81% [8][9] - The company generated $24 million in cash from operating activities during the quarter [11] - The impact of U.S. tariffs is expected to reduce gross margins by approximately 2% to 3% [12] Q&A Session Summary Question: Dynamics in Q1 and Q2 - Management noted that both Q1 and Q2 results were below expectations, with a slight weakness observed in both quarters [19][23] Question: Capital Purchases and Business Investment - Management indicated that there was no significant change in purchasing behavior between Q1 and Q2, with the market remaining challenging [23] Question: Capital Allocation and Share Repurchase - The company is considering additional share buybacks and remains open to various capital allocation options, but currently has no acquisitions planned [34] Question: Non-Invasive Procedure Growth - The increase in non-invasive procedures is attributed to customer behavior and the introduction of new platforms like Optimus Max [37] Question: Tariff Impact - The original tariff rate was reduced from 17% to 10% temporarily, with an expected annual impact of 2% to 3% on gross margins [63][66] Question: Urology Market and FDA Approval - The company is developing a platform for erectile dysfunction but is currently limited to pilot testing for blood circulation and pain relief until FDA approval is obtained [48][72] Question: Growth in International Markets - Management expressed confidence in the sustainability of growth in international markets, particularly in Europe, as the company expands its global presence [75]

Core Viewpoint - InMode reported quarterly earnings of $0.47 per share, exceeding the Zacks Consensus Estimate of $0.43 per share, and showing an increase from $0.34 per share a year ago, indicating a positive earnings surprise of +9.30% [1][2] Financial Performance - The company achieved revenues of $95.6 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.11%, and up from $86.45 million year-over-year [2] - Over the last four quarters, InMode has exceeded consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Performance and Outlook - InMode shares have declined approximately 14.3% since the beginning of the year, contrasting with the S&P 500's gain of 8.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.42 on revenues of $88.4 million, and for the current fiscal year, it is $1.68 on revenues of $365 million [7] Industry Context - The Medical - Products industry, to which InMode belongs, is currently ranked in the bottom 29% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of InMode's stock may be influenced by the overall outlook of the industry [8]

Company Overview - InMode is a leading global provider of innovative, minimally-invasive aesthetic and wellness solutions[5] - The company has a broad radiofrequency (RF) based portfolio, including capital equipment and consumables[5] - InMode sells in 89 countries[7] - The company has 669 employees worldwide, including 297 direct sales reps and a 42 person R&D team[12] Financial Performance (Q2 2025) - Q2-2025 Revenue was $95.6 million[7] - Q2-2025 Non-GAAP Net Income was $30.1 million[7] - Q2-2025 Non-GAAP Gross Margin was 80%[7] - Q2-2025 Non-GAAP Diluted Earning per Share was $0.47[7] Technology and Solutions - InMode addresses the "Treatment Gap" with minimally-invasive technologies[20] - The company has 10 patented technologies across 11 product families[7] - Clinical studies demonstrate RFAL technology can achieve up to 40% contraction of the heated tissue volume[34] - InMode has launched multiple innovative product platforms since 2010[86]

[Report Summary and Management Insights](index=1&type=section&id=Report%20Summary%20and%20Management%20Insights) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) InMode reported Q2 2025 revenues of $95.6 million with 80% gross margins, GAAP net income of $26.7 million ($0.42 EPS), non-GAAP net income of $30.1 million ($0.47 EPS), and a total cash position of $510.7 million as of June 30, 2025 Q2 2025 GAAP & Non-GAAP Financial Results | U.S. GAAP Results | Q2 2025 (USD thousands) | Q2 2024 (USD thousands) | | :---------------------------------------- | :---------------------- | :---------------------- | | Revenues | $95,602 | $86,449 | | Gross Margins | 80% | 80% | | Net Income | $26,742 | $23,818 | | Earnings per Diluted Share | $0.42 | $0.28 | | **Non-GAAP Results** | | | | Gross Margins | 80% | 81% | | Net Income | $30,139 | $28,976 | | Earnings per Diluted Share | $0.47 | $0.34 | - Quarterly GAAP revenues reached **$95.6 million**, compared to **$86.4 million** in the second quarter of 2024[6](index=6&type=chunk) - Quarterly revenues from consumables and service **decreased by 6%** to **$19.8 million** compared to the second quarter of 2024[6](index=6&type=chunk) - Total cash position as of June 30, 2025, was **$510.7 million**, including cash and cash equivalents, marketable securities, and short-term bank deposits[6](index=6&type=chunk) [Management Comments](index=1&type=section&id=Management%20Comments) Management acknowledged persistent macroeconomic uncertainty and cautious consumer behavior impacting Q2 results, particularly in the U.S., but highlighted record international sales, especially in Europe, emphasizing disciplined execution, investment in growth drivers, and the strength of the balance sheet, while noting a potential 2-3% impact on gross margins from U.S. tariffs - The second quarter reflects broader trends with persistent external headwinds, including ongoing macroeconomic uncertainty and more cautious consumer behavior[3](index=3&type=chunk) - Despite economic challenges in the U.S., international business provided an offset, with sales from Europe reaching a **record high** in Q2 2025[4](index=4&type=chunk) - A strong balance sheet provides flexibility to retain top talent, expand globally, and lead the industry with cutting-edge technologies[5](index=5&type=chunk) - Assuming U.S. tariffs remain at 10%, gross margins are expected to be impacted by approximately **2% to 3%**[5](index=5&type=chunk) [Detailed Second Quarter 2025 Financial Results](index=2&type=section&id=Detailed%20Second%20Quarter%202025%20Financial%20Results) [Second Quarter 2025 Financial Results Overview](index=2&type=section&id=Second%20Quarter%202025%20Financial%20Results) InMode reported an increase in total revenues for Q2 2025 to $95.6 million, up from $86.4 million in Q2 2024 (excluding pre-orders), with GAAP gross margin stable at 80%, non-GAAP gross margin slightly decreasing to 80% from 81%, and improvements in operating margins and net income on both GAAP and non-GAAP bases - Total revenues for Q2 2025 were **$95.6 million**, compared to **$86.4 million** in Q2 2024 (excluding $16.2 million in pre-orders)[7](index=7&type=chunk) [GAAP Financial Performance](index=2&type=section&id=GAAP%20Financial%20Performance) GAAP revenues for Q2 2025 were $95.6 million, an increase from $86.4 million in Q2 2024, with GAAP gross margin holding steady at 80%, GAAP operating margin improving to 24% from 21%, and GAAP net income rising to $26.7 million ($0.42 diluted EPS) from $23.8 million ($0.28 diluted EPS) year-over-year Q2 2025 GAAP Financial Performance vs Q2 2024 | Metric | Q2 2025 (USD thousands) | Q2 2024 (USD thousands) | YoY Change | | :----- | :---------------------- | :---------------------- | :--------- | | Revenues | $95,602 | $86,449 | +10.6% | | Gross Margin | 80% | 80% | 0 pp | | Operating Margin | 24% | 21% | +3 pp | | Net Income | $26,742 | $23,818 | +12.3% | | Diluted EPS | $0.42 | $0.28 | +50.0% | [Non-GAAP Financial Performance](index=2&type=section&id=Non-GAAP%20Financial%20Performance) Non-GAAP gross margin for Q2 2025 was 80%, a slight decrease from 81% in Q2 2024, while non-GAAP operating margin improved to 28% from 27%, and non-GAAP net income increased to $30.1 million ($0.47 diluted EPS) from $29.0 million ($0.34 diluted EPS) year-over-year Q2 2025 Non-GAAP Financial Performance vs Q2 2024 | Metric | Q2 2025 (USD thousands) | Q2 2024 (USD thousands) | YoY Change | | :----- | :---------------------- | :---------------------- | :--------- | | Gross Margin | 80% | 81% | -1 pp | | Operating Margin | 28% | 27% | +1 pp | | Net Income | $30,139 | $28,976 | +4.0% | | Diluted EPS | $0.47 | $0.34 | +38.2% | [Cash Position](index=2&type=section&id=Cash%20Position) As of June 30, 2025, InMode maintained a strong total cash position of $510.7 million, encompassing cash and cash equivalents, marketable securities, and short-term bank deposits - Total cash and cash equivalents, marketable securities, and short-term bank deposits amounted to **$510.7 million** as of June 30, 2025[10](index=10&type=chunk) [Full Year 2025 Financial Outlook](index=2&type=section&id=Full%20Year%202025%20Financial%20Outlook) [2025 Financial Outlook](index=2&type=section&id=2025%20Financial%20Outlook) InMode updated its full-year 2025 financial outlook, revising revenue guidance downwards while maintaining non-GAAP gross margin expectations, with non-GAAP operating income and diluted EPS guidance also lowered Full Year 2025 Financial Outlook (Updated vs. Prior Guidance) | Metric | Updated Guidance | Prior Guidance | Change | | :----- | :--------------- | :------------- | :----- | | Revenues | $365M - $375M | $395M - $405M | Lowered | | Non-GAAP Gross Margin | 78% - 80% | 78% - 80% | Unchanged | | Non-GAAP Income from Operations | $93M - $98M | $101M - $106M | Lowered | | Non-GAAP Diluted EPS | $1.55 - $1.59 | $1.64 - $1.68 | Lowered | [Geopolitical Context](index=2&type=section&id=Geopolitical%20Context) [The Current Situation in Israel](index=2&type=section&id=The%20Current%20Situation%20in%20Israel) The conflict in Israel and the broader region remains volatile, with a ceasefire between Israel and Iran reached on June 23rd, though its durability is uncertain, and despite ongoing conflicts, InMode's operations have not been materially affected to date, but the company continues to monitor developments closely - The conflict in the region remains volatile, with a ceasefire between Israel and Iran reached on June 23rd, though its durability remains uncertain[13](index=13&type=chunk) - To date, InMode's operations have not been materially affected by the regional conflict[13](index=13&type=chunk) - The company continues to monitor political and military developments closely and examine the consequences for its operations and assets[13](index=13&type=chunk) [Non-GAAP Financial Measures Explanation](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) [Use of Non-GAAP Financial Measures](index=3&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) InMode uses non-GAAP financial measures, including non-GAAP net income, diluted EPS, and operating margin, to provide greater transparency into its economic performance and facilitate comparison with peers, with these measures excluding share-based compensation and related tax adjustments - Non-GAAP financial measures are used in InMode's internal analysis and provide investors with greater transparency of its economic performance[15](index=15&type=chunk) - Non-GAAP results exclude share-based compensation and related tax adjustments[2](index=2&type=chunk)[12](index=12&type=chunk)[15](index=15&type=chunk) [Investor Conference Call Details](index=3&type=section&id=Investor%20Conference%20Call%20Details) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) InMode hosted a conference call on July 30, 2025, at 8:30 a.m. Eastern Time to discuss Q2 2025 financial results, with key management participating, and details for pre-registration, dial-in numbers, and webcast access, including replay information, were provided - A conference call was hosted on **July 30, 2025, at 8:30 a.m. Eastern Time**, featuring CEO Moshe Mizrahy, CTO Dr. Michael Kreindel, and CFO Yair Malca[16](index=16&type=chunk) - Participants could pre-register or use provided dial-in numbers for the call, which was also webcast live[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) - A replay of the conference call was available from **July 30, 2025, to August 13, 2025**, via dial-in and for **90 days** on InMode's website[19](index=19&type=chunk) [Company Profile](index=4&type=section&id=Company%20Profile) [About InMode](index=4&type=section&id=About%20InMode) InMode is a leading global provider of innovative medical technologies, specializing in devices harnessing novel radio frequency (RF) technology, developing, manufacturing, and marketing a comprehensive product line for various medical specialties, including plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology, focusing on minimally invasive RF technologies - InMode is a **leading global provider of innovative medical technologies**, developing, manufacturing, and marketing devices utilizing novel radio frequency ("RF") technology[20](index=20&type=chunk) - The company offers a comprehensive line of products across plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology, leveraging medically accepted minimally invasive RF technologies[20](index=20&type=chunk) [Legal Disclosures](index=4&type=section&id=Legal%20Disclosures) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section clarifies that the press release contains forward-looking statements regarding future events or financial performance, which are subject to inherent uncertainties and risks, meaning actual results may differ materially from forecasts, and InMode disclaims any obligation to update these statements, cautioning investors not to place undue reliance on them - The press release includes forward-looking statements related to future events or InMode's future financial or operating performance, including the **2025 revenue projection**[21](index=21&type=chunk) - These statements are based on management's current expectations and assumptions and are subject to inherent uncertainties, risks, and changes in circumstances, meaning actual outcomes may differ materially[21](index=21&type=chunk) - InMode undertakes no obligation to update these forward-looking statements and cautions against undue reliance on them[21](index=21&type=chunk) [Contact Information](index=4&type=section&id=Contact%20Information) [Company and Investor Relations Contact](index=4&type=section&id=Company%20Contact) Contact information for InMode's Chief Financial Officer, Yair Malca, and Investor Relations representative, Miri Segal of MS-IR LLC, was provided for company and investor inquiries - Contact details are provided for **Yair Malca, Chief Financial Officer**, and **Miri Segal of MS-IR LLC** for investor relations[22](index=22&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) [Condensed Consolidated Statements of Income](index=5&type=section&id=INMODE%20LTD.%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) The condensed consolidated statements of income show InMode's financial performance for the three and six months ended June 30, 2025, compared to the same periods in 2024, detailing revenues, cost of revenues, operating expenses, and net income Condensed Consolidated Statements of Income (Q2 2025 vs Q2 2024) | Metric (USD thousands) | Q2 2025 | Q2 2024 | | :--------------------- | :------ | :------ | | REVENUES | 95,602 | 86,449 | | COST OF REVENUES | 19,152 | 17,116 | | GROSS PROFIT | 76,450 | 69,333 | | TOTAL OPERATING EXPENSES | 53,569 | 51,019 | | OPERATIONS INCOME | 22,881 | 18,314 | | INCOME BEFORE INCOME TAXES | 30,943 | 27,004 | | NET INCOME | 26,742 | 23,818 | | Diluted EPS | 0.42 | 0.28 | Condensed Consolidated Statements of Income (Six Months Ended June 30, 2025 vs 2024) | Metric (USD thousands) | 6M 2025 | 6M 2024 | | :--------------------- | :------ | :------ | | REVENUES | 173,476 | 166,733 | | COST OF REVENUES | 36,115 | 33,481 | | GROSS PROFIT | 137,361 | 133,252 | | TOTAL OPERATING EXPENSES | 98,862 | 96,846 | | OPERATIONS INCOME | 38,499 | 36,406 | | INCOME BEFORE INCOME TAXES | 53,420 | 53,080 | | NET INCOME | 44,943 | 47,514 | | Diluted EPS | 0.68 | 0.55 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=INMODE%20LTD.%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) The condensed consolidated balance sheets present InMode's financial position as of June 30, 2025, compared to December 31, 2024, detailing assets, liabilities, and shareholders' equity Condensed Consolidated Balance Sheets (June 30, 2025 vs Dec 31, 2024) | Metric (USD thousands) | June 30, 2025 | Dec 31, 2024 | | :--------------------- | :------------ | :----------- | | TOTAL CURRENT ASSETS | 638,781 | 714,452 | | TOTAL NON-CURRENT ASSETS | 69,567 | 71,215 | | TOTAL ASSETS | 708,348 | 785,667 | | TOTAL CURRENT LIABILITIES | 66,534 | 69,851 | | TOTAL NON-CURRENT LIABILITIES | 13,377 | 12,003 | | TOTAL LIABILITIES | 79,911 | 81,854 | | TOTAL SHAREHOLDERS' EQUITY | 628,437 | 703,813 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=INMODE%20LTD.%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) The condensed consolidated statements of cash flows outline the cash generated from or used in operating, investing, and financing activities for the three and six months ended June 30, 2025, compared to the same periods in 2024 Condensed Consolidated Statements of Cash Flows (Q2 2025 vs Q2 2024) | Metric (USD thousands) | Q2 2025 | Q2 2024 | | :--------------------- | :------ | :------ | | Net cash provided by operating activities | 24,072 | 42,059 | | Net cash provided by (used in) investing activities | 71,656 | 17,725 | | Net cash used in financing activities | (26,979) | (88,585) | | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 70,289 | (28,933) | | CASH AND CASH EQUIVALENTS AT END OF PERIOD | 216,237 | 91,997 | Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30, 2025 vs 2024) | Metric (USD thousands) | 6M 2025 | 6M 2024 | | :--------------------- | :------ | :------ | | Net cash provided by operating activities | 38,116 | 66,173 | | Net cash provided by (used in) investing activities | 147,141 | (29,665) | | Net cash used in financing activities | (126,445) | (88,351) | | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 60,908 | (52,414) | | CASH AND CASH EQUIVALENTS AT END OF PERIOD | 216,237 | 91,997 | [Revenue Breakdown by Category and Technology](index=8&type=section&id=Revenue%20Breakdown%20by%20Category%20and%20Technology) [Revenues by Category](index=8&type=section&id=Revenues%20by%20Category) In Q2 2025, Capital Equipment revenues constituted 79% of total revenues, increasing to $75.8 million from $65.4 million in Q2 2024, while Consumables and service revenues decreased by 6% to $19.8 million, representing 21% of total revenues Q2 2025 Revenues by Category (USD thousands) | Category | Q2 2025 Revenue | % of Total | Q2 2024 Revenue | % of Total | YoY Change | | :------- | :-------------- | :--------- | :-------------- | :--------- | :--------- | | Capital Equipment revenues - United States | 40,653 | 42% | 34,799 | 41% | +16.8% | | Capital Equipment revenues - International | 35,133 | 37% | 30,606 | 35% | +14.8% | | Total Capital Equipment revenues | 75,786 | 79% | 65,405 | 76% | +15.9% | | Consumables and service revenues | 19,816 | 21% | 21,044 | 24% | -5.8% | | Total Revenue | 95,602 | 100% | 86,449 | 100% | +10.6% | [Revenues by Technology](index=8&type=section&id=Revenues%20by%20Technology) For Q2 2025, Minimal Invasive technology accounted for 78% of total revenues, while Hands-Free and Non-Invasive technologies contributed 3% and 19% respectively, with a notable shift in Non-Invasive revenue share, increasing from 6% in Q2 2024 to 19% in Q2 2025 Q2 2025 Revenues by Technology (% of Total) | Technology | Q2 2025 Total % | Q2 2024 Total % | Change (pp) | | :--------- | :-------------- | :-------------- | :---------- | | Minimal Invasive | 78% | 87% | -9 | | Hands-Free | 3% | 7% | -4 | | Non Invasive | 19% | 6% | +13 | [GAAP to Non-GAAP Reconciliation](index=9&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation) [Three Months Ended June 30, 2025 and 2024](index=9&type=section&id=Three%20months%20ended%20June%2030%2C%202025%20and%202024) This section provides a detailed reconciliation of GAAP to non-GAAP condensed consolidated statements of income for the three months ended June 30, 2025 and 2024, primarily adjusting for share-based compensation and related tax effects Q2 2025 GAAP to Non-GAAP Reconciliation (USD thousands) | Metric | GAAP (Q2 2025) | Share Based Compensation | Non-GAAP (Q2 2025) | | :----- | :------------- | :----------------------- | :----------------- | | REVENUES | 95,602 | - | 95,602 | | GROSS PROFIT | 76,450 | 334 | 76,784 | | OPERATIONS INCOME | 22,881 | 3,418 | 26,299 | | NET INCOME | 26,742 | 3,397 | 30,139 | | Diluted EPS | 0.42 | | 0.47 | Q2 2024 GAAP to Non-GAAP Reconciliation (USD thousands) | Metric | GAAP (Q2 2024) | Share Based Compensation | Non-GAAP (Q2 2024) | | :----- | :------------- | :----------------------- | :----------------- | | REVENUES | 86,449 | - | 86,449 | | GROSS PROFIT | 69,333 | 471 | 69,804 | | OPERATIONS INCOME | 18,314 | 5,158 | 23,472 | | NET INCOME | 23,818 | 5,158 | 28,976 | | Diluted EPS | 0.28 | | 0.34 | [Six Months Ended June 30, 2025 and 2024](index=10&type=section&id=Six%20months%20ended%20June%2030%2C%202025%20and%202024) This section details the reconciliation of GAAP to non-GAAP condensed consolidated statements of income for the six months ended June 30, 2025 and 2024, primarily adjusting for share-based compensation and related tax effects 6M 2025 GAAP to Non-GAAP Reconciliation (USD thousands) | Metric | GAAP (6M 2025) | Share Based Compensation | Non-GAAP (6M 2025) | | :----- | :------------- | :----------------------- | :----------------- | | REVENUES | 173,476 | - | 173,476 | | GROSS PROFIT | 137,361 | 644 | 138,005 | | OPERATIONS INCOME | 38,499 | 5,936 | 44,435 | | NET INCOME | 44,943 | 6,591 | 51,534 | | Diluted EPS | 0.68 | | 0.77 | 6M 2024 GAAP to Non-GAAP Reconciliation (USD thousands) | Metric | GAAP (6M 2024) | Share Based Compensation | Non-GAAP (6M 2024) | | :----- | :------------- | :----------------------- | :----------------- | | REVENUES | 166,733 | - | 166,733 | | GROSS PROFIT | 133,252 | 880 | 134,132 | | OPERATIONS INCOME | 36,406 | 9,141 | 45,547 | | NET INCOME | 47,514 | 9,141 | 56,655 | | Diluted EPS | 0.55 | | 0.65 |

Core Insights - InMode Ltd. (INMD) shares have experienced stagnation over the past year, with a recent decline of approximately 20% coinciding with broader market corrections related to tariffs [1] Company Performance - The stock has not shown a meaningful recovery despite broader market trends, indicating potential underlying issues within the company or its market environment [1] Market Context - The recent sell-off in the market, particularly related to tariffs, has negatively impacted InMode Ltd.'s stock performance, contributing to its inability to bounce back [1]