Core Insights - InMode Ltd. reported consolidated financial results for Q3 2025, showing a decline in revenues and net income compared to Q3 2024, attributed to cautious consumer sentiment and broader economic challenges [1][4]. Financial Performance - Total revenues for Q3 2025 were $93.2 million, down from $130.2 million in Q3 2024, which included $31.9 million from pre-order sales [3][6]. - Gross margins for Q3 2025 were 78%, compared to 82% in Q3 2024 [7]. - Net income for Q3 2025 was $21.9 million, or $0.34 per diluted share, a decrease from $51.0 million, or $0.65 per diluted share, in Q3 2024 [9]. - Non-GAAP net income for Q3 2025 was $24.5 million, or $0.38 per diluted share, compared to $55.0 million, or $0.70 per diluted share, in Q3 2024 [9]. Operational Highlights - Revenues from consumables and services increased by 26% year-over-year, totaling $19.9 million in Q3 2025 [6]. - The company maintained a total cash position of $532.3 million as of September 30, 2025, which includes cash and cash equivalents, marketable securities, and short-term bank deposits [10]. Management Commentary - CEO Moshe Mizrahy noted that the third quarter progressed in line with expectations despite ongoing global uncertainties, emphasizing the company's focus on strategic investments for long-term growth [4][5]. - CFO Yair Malca highlighted that gross margins were in line with expectations, reflecting proactive planning around tariff impacts [6]. Future Outlook - Management expects full-year revenues for 2025 to remain between $365 million and $375 million, with non-GAAP gross margins projected between 78% and 80% [15].

Core Insights - InMode Ltd. has appointed Michael Dennison as President of North America, highlighting his extensive experience in the aesthetic medical device industry and his previous leadership roles within the company [1][2]. Company Overview - InMode is a leading global provider of innovative medical technologies, specializing in devices that utilize novel radiofrequency (RF) technology for various medical applications, including plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology [3]. Leadership and Strategy - Michael Dennison's promotion is seen as a strategic move to enhance InMode's market presence and drive growth in North America, with a focus on cultivating talent and achieving market excellence [2]. - Dennison aims to build on InMode's strong foundation and accelerate momentum in the North American market, delivering greater value to partners and setting new industry standards [2]. Financial Performance - InMode expects to report third-quarter 2025 revenue between $92.5 million and $93.0 million, reiterating its full-year 2025 guidance of $365 million to $375 million [5].

Core Insights - InMode Ltd. (NASDAQ: INMD) stock is trading near its 52-week lows, having experienced upper single-digit losses this year, indicating a potential investment opportunity ahead of its Q3 update [1] Company Overview - InMode Ltd. is currently facing a decline in stock price, which may present an appealing investment opportunity for investors [1] Analyst Background - The analysis is provided by a seasoned financial professional with extensive experience in financial analysis and investment research, emphasizing a strong background in capital markets and macro-economy [1] Investment Focus - The analyst is focused on building an international investment portfolio and aims to share insights and strategies with the global investing community [1]

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]