Company Overview - InMode Ltd. (INMD) was founded in 2008 and is based in Israel, specializing in non-/minimally invasive aesthetic medical products [1] Industry Position - The company is recognized as a global leader in its field, particularly for its proprietary radiofrequency (RF) assisted lipolysis and deep subdermal technologies [1]

Company Overview - InMode Ltd. was founded in 2008 and is based in Israel, specializing in non-/minimally invasive aesthetic medical products [1] - The company is recognized as a global leader in its field, utilizing proprietary radiofrequency (RF) assisted lipolysis and deep subdermal technologies [1] Investment Philosophy - The investment approach emphasizes the importance of compounding, dividend reinvesting, and patient investing through various market conditions to achieve wealth creation [1] - The strategy includes a mix of steady accumulation of high-quality assets along with high-risk/high-reward opportunities and transformative technologies [1] Academic Background - The individual behind the investment insights has over 20 years of teaching experience at the college/university level and holds a PhD from Brunel University [1]

Summary of InMode Conference Call Company Overview - **Company**: InMode - **Founded**: 17 years ago by Moshe Mizrahy - **Headquarters**: Israel - **Employees**: 650 worldwide, plus 200 in manufacturing - **Revenue Growth**: From $22 million in 2017 to $500 million in 2023, indicating rapid growth [7][20] Core Business and Technology - **Focus**: Aesthetic and wellness medical treatments, utilizing minimally invasive technology rather than traditional optical energy methods [6][8] - **Key Products**: - BodyTite platforms for fat melting and skin tightening - Empower for women's health, targeting vaginal laxity and urinary incontinence - InVision for dry eye treatment [7][12][13] Market Dynamics - **Current Market Challenges**: - Revenue decline of 20% expected in 2024 due to high inflation (8%-9%) and increased interest rates (13%-14%) affecting equipment financing for doctors [19][20] - Projected revenue for 2023 is approximately $370 million [20][21] - **Gross Margin**: Maintained at 80% despite market challenges, with EBITDA above 20% [20] Future Growth Opportunities - **Women's Health**: - Ongoing FDA studies for urinary incontinence and overactive bladder, expected to complete by end of 2026 [11][14] - Empower product generated $40 million in its first year [12] - **Ophthalmology**: - InVision product for dry eye treatment sold $30 million in its first year, with expectations to exceed $50 million annually in the future [13] - **International Expansion**: - Established subsidiaries in Japan, Argentina, and Thailand, aiming to increase direct sales from 80% to 85% [22][24] - Potential growth in China, with plans to expand product offerings as additional clearances are obtained [24][38] Sales and Marketing Strategy - **Sales Force**: - Approximately 300 direct salespeople globally, with 210 in the U.S. [30] - Leadership changes made to streamline management and improve sales momentum [31][32] - **Marketing Investments**: Increased spending on marketing to support direct sales efforts [22] Financial Strategy - **Capital Allocation**: - $508 million spent on stock buybacks, with a shift in focus towards exploring M&A opportunities [33][34] - No current M&A pipeline, but interest in acquiring companies related to women's health and wellness [34] Product Development - **Upcoming Products**: - Development of four laser types (CO2, Erbium, Q-Switch, PICO) to complement existing RF technology, expected to launch between 2026 and 2027 [35][36] Conclusion - InMode is navigating a challenging market environment but remains optimistic about future growth through product innovation, international expansion, and strategic management of its sales force and financial resources [20][21][22]

Core Insights - InMode Ltd. reported strong financial performance for Q3 2025, with an EPS of $0.38, surpassing the estimated EPS of $0.35 [1][6] - The company's revenue reached approximately $93.2 million, exceeding the estimated revenue of about $90.9 million [2][6] - InMode maintained a robust gross margin of 78%, indicating efficiency in managing production costs [2][6] Financial Metrics - The company has a price-to-earnings (P/E) ratio of approximately 5.1, reflecting the market's valuation of its earnings [4] - The price-to-sales ratio stands at about 2.52, and the enterprise value to sales ratio is around 2, suggesting favorable market value relative to sales [4] - InMode's low debt-to-equity ratio of approximately 0.01 indicates minimal reliance on debt financing [5] - The company boasts a strong current ratio of about 9.6, highlighting its ability to cover short-term liabilities with short-term assets [5] - The earnings yield of about 19.6% provides a measure of return on investment for shareholders [5] Leadership Changes - Michael Dennison has been appointed as the new President of North America, expected to enhance regional strategy and customer engagement [3]

Financial Data and Key Metrics Changes - InMode generated revenues of $93.2 million in Q3 2025, down from $130.2 million in Q3 2024, which included $31.9 million in pre-order sales [6][7] - Consumables and service revenues were $19.9 million, up 26% year-over-year, driven primarily by markets outside the U.S. [6][7] - GAAP gross margins were 78%, down from 82% in Q3 2024, attributed to the impact of tariffs [7][8] - GAAP net income was $21.8 million, down from $50.9 million in Q3 2024, with diluted earnings per share at $0.34, down from $0.65 [9][10] Business Line Data and Key Metrics Changes - Minimally invasive platforms accounted for 75% of total revenues this quarter [7] - Sales outside the U.S. increased slightly to $40 million, or 43% of overall sales, a 10% increase year-over-year [7] - Sales and marketing expenses decreased to $44.9 million from $51.9 million in the same period last year [8] Market Data and Key Metrics Changes - The U.S. was the largest geographical revenue contributor, reaching $53.2 million [7] - The company currently has 284 direct sales reps and distributors covering more than 73 countries [8] Company Strategy and Development Direction - The company is focused on expanding its presence in high-growth markets, recently opening a new subsidiary in Argentina [3][4] - A new leadership addition, Michael Denison, was appointed as President of North America to streamline operations [5][28] - The company aims to launch new products in the aesthetic segment in early 2026, including new lasers [26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the marketplace but expressed confidence in the company's competitive advantages and strong financial position [5] - The company plans to remain conservative in its guidance for 2026 due to uncertainties in the market [14][16] Other Important Information - The company expects to begin generating initial revenue from its new subsidiary in Argentina by the end of 2025 [4] - Non-GAAP gross margins are expected to remain between 78%-80% for 2025 [10] Q&A Session Summary Question: Guidance for Q4 and 2026 sales growth - Management indicated it is too early to discuss guidance for 2026 and prefers to see how Q4 plays out first [14] Question: Capital equipment environment and interest rates - Management noted that while interest rates have come down, it has not yet significantly impacted capital equipment financing [16][17] Question: Updates on ophthalmology initiative - The company is separating sales teams for the Envision initiative and has made progress with the American Optometrist Association [20][21] Question: New product pipeline in aesthetics - New lasers complementary to the aesthetic portfolio are expected to be launched in early 2026 [26] Question: Rationale for appointing Michael Denison - Denison was chosen for his extensive experience and knowledge of the market, aiming to unify North American operations under one management [28][29] Question: Urology business expectations - The company is launching urology products and will assess their performance by the end of the year [30] Question: Strength in OUS business and future trends - The company is currently selling in 88 to 90 countries and does not plan to add more countries in 2025 [33][34] Question: Non-invasive growth and consumables - The company sold about 230,000 disposable handpieces in Q3 2025, indicating a sequential increase [41]

Company Overview - InMode is a leading global provider of minimally-invasive aesthetic and wellness solutions [5] - The company has 10 patented technologies across 11 product families [7] - InMode sells its products in 88 countries [7] - The company has 656 employees worldwide, including 284 direct sales reps [19] Financial Performance (Q3 2025) - Q3 2025 revenue was $93.2 million [7] - Non-GAAP net income for Q3 2025 was $24.5 million [7] - Non-GAAP gross margin for Q3 2025 was 78% [7] - Non-GAAP diluted earnings per share for Q3 2025 was $0.38 [7] Technology and Market - InMode addresses the "Treatment Gap" with minimally-invasive technologies [26] - RFAL technology can achieve up to 40% soft tissue contraction [40]

*Please refer to "Use of Non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A reconciliation between U.S. GAAP and non-GAAP Statement of Income is provided following the financial statements that are included in this release. Non-GAAP results exclude share-based compensation and related tax adjustments. Exhibit 99.1 InMode Reports Third Quarter 2025 Financial Results: Quarterly Revenue of $93.2 Million, 78% Gross Margins YOKNEAM, Israel, November 5, 2025 - InMode ...

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]