[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]

Core Viewpoint - InMode Ltd. is revising its full-year revenue guidance for 2025 due to ongoing market weakness and uncertainty in the U.S. economic outlook, with preliminary second-quarter revenue expected to be between $95.4 million and $95.5 million [3][7]. Financial Results - The company anticipates second-quarter 2025 revenue in the range of $95.4 million to $95.5 million [7]. - The non-GAAP gross margin for the second quarter of 2025 is expected to be between 79% and 80% [7]. - Full-year 2025 revenue guidance has been revised to a range of $365 million to $375 million, down from the previous guidance of $395 million to $405 million [3][7]. Conference Call Details - A conference call to discuss the second-quarter financial results will be held on July 30, 2025, at 8:30 a.m. Eastern Time, featuring key executives including the CEO, CFO, and CTO [4][5]. - Participants are encouraged to pre-register for the call to receive unique dial-in information [5]. Company Overview - InMode is a global provider of innovative medical technologies, focusing on devices that utilize novel radio frequency technology for various medical applications [7][8]. - The company aims to enhance surgical procedures and improve existing treatments through its minimally invasive RF technologies [8].

Summary of InMode Conference Call Company Overview - InMode is a medical technology company based in Israel, established approximately 16 years ago, specializing in minimally invasive aesthetic procedures using radio frequency technology [4][5] - The company has grown from $22 million in annual revenue to nearly $500 million in 2023 [4] Recent Performance and Market Conditions - InMode has faced challenges over the past two years due to a slow global economy, particularly in the US and Europe [5][8] - The stock price has fluctuated significantly, reaching a high of around $80 before dropping to approximately $14 [9] - The company expects flat revenue growth for the year, with Q1 performance being softer than anticipated [11][12] Revenue Guidance and Profitability - The revenue mix shifted to a 50/50 split between US and international sales, contrary to previous expectations of 62-65% from the US [12] - Europe had a record quarter in Q1, while the US faced unexpected headwinds [12][17] - Adjustments were made to profitability estimates due to the revenue mix and new tariffs affecting products manufactured in Israel [13][14] Product Development and Pipeline - InMode is expanding its product offerings into women's health and ophthalmology, with two new platforms launched [21][23] - The Empower system for pelvic floor restoration generated $40 million in its first year but saw a 20% decline in 2024 [25][27] - Ongoing studies for overactive bladder treatments are expected to conclude by 2026, with promising preliminary results [31][32] - The company has 15 R&D projects in the pipeline, aiming to release two new products annually [28][29] Sales Force and Capital Allocation - The North American sales force has been restructured into three territories to improve management and efficiency [34][36] - InMode has repurchased $508 million worth of shares over the past two years, buying back 30% of outstanding shares [39] - Future capital allocation strategies include potential share buybacks, internal investments, or acquisitions, with a focus on maintaining flexibility [40][41] Competitive Landscape and Future Outlook - The company is positioned to benefit from reduced competition in the aesthetic market as other companies struggle [48] - InMode's management believes that they will emerge stronger from the current economic slowdown, leveraging their resources and technology [46][47] - The outlook for growth in 2026 remains uncertain, dependent on broader economic conditions [50]

Core Viewpoint - InMode Ltd. addresses concerns raised by DOMA Perpetual Capital Management regarding its operations, buyback strategy, and management performance, emphasizing its commitment to shareholder value and operational integrity [2][3][5][6]. Buyback Strategy - InMode has executed a share buyback program amounting to $412 million over the last 12 months and $508 million over the past 2.5 years, aiming to return capital to shareholders in a tax-efficient manner [3]. Manufacturing and Supply Chain - The company maintains that its manufacturing operations in Israel are essential due to the proximity to engineering, R&D, and logistics teams, and has successfully delivered products to 90 countries despite ongoing regional conflicts [4]. Sales Performance - The slowdown in North American sales is attributed to macroeconomic factors and financing challenges rather than issues within the sales management team, which is fully staffed and operating professionally [5]. Management Performance - The CEO refutes claims of poor leadership and emphasizes a lean management style, asserting that the Board of Directors will ultimately decide on his performance [6]. Company Overview - InMode is a global provider of innovative medical technologies, specializing in devices that utilize radio frequency technology for various medical fields, including plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology [8].

Summary of InMode (INMD) Conference Call - May 19, 2025 Company Overview - InMode is an Israeli-based company specializing in medical aesthetic equipment, particularly surgical equipment that penetrates the skin [2][3] - Established around 16 years ago, with R&D and manufacturing based in Israel [2] - The company went public in February 2019 at $7 per share and has since seen significant revenue growth [8] Financial Performance - Revenue reached approximately $495 million in 2023, up from $22 million in 2017 [5][6] - Experienced a 20% revenue decline in 2024 due to economic slowdown and increased interest rates [10] - Target for 2025 is to match 2024 revenue levels [10] Product and Technology - InMode's technology includes radio frequency-assisted lipolysis and bipolar Matrix RF (Morpheus) [4][6] - The company has diversified its product line to include applications for urinary incontinence, overactive bladder, and facial rejuvenation [6] - Currently has about 12 platforms in its product portfolio, selling in 90 countries [7] Market Dynamics - The U.S. market constitutes 50% of the business, with the rest coming from international markets [19] - The company faces stronger headwinds in the U.S. compared to international markets, with consumer confidence being a significant issue [22][27] - The first quarter is typically the slowest, with Q2 expected to be stronger [30] Operational Challenges - The ongoing conflict in Israel has posed challenges, but the company has managed to maintain operations [12][35] - Tariff exposure is estimated to impact gross margins by 2% to 3% due to most products being manufactured in Israel [38][39] Marketing and Sales Strategy - The company spends heavily on marketing and sales, with a focus on both B2B and B2C strategies [16][60] - Sales and marketing expenses account for 35% to 40% of revenue, while G&A and R&D expenses are relatively low at around 3% and 4%, respectively [59][60] Future Outlook - The company is optimistic about the recovery of the aesthetic procedure market, although it does not expect an immediate surge in demand [99] - Plans to continue product innovation, with new wellness platforms expected to launch later in 2025 [52] - The management is focused on international expansion, establishing subsidiaries in Argentina and Thailand [71][72] Capital Allocation - In the past 12 months, InMode has repurchased $412 million of its stock, totaling $508 million over two years [85][87] - The company is open to various capital allocation strategies, including further buybacks, M&A, and dividends, depending on market conditions [85][86] Key Risks - Economic slowdown and rising interest rates are significant risks affecting consumer spending on aesthetic procedures [10][22] - The company is closely monitoring inflation trends in both the U.S. and Europe [23] Conclusion - InMode remains a leader in the medical aesthetics market, with a strong focus on innovation and international growth despite current economic challenges [11][72]

Core Viewpoint - DOMA Perpetual Capital Management LLC urges InMode Ltd.'s Board to resume and accelerate stock buybacks and replace CEO Moshe Mizrahy due to concerns over capital allocation strategy and declining stock performance [1][2][3]. Capital Allocation Strategy - The letter emphasizes the need for the Board to act on behalf of shareholders by resuming the share repurchase program and returning cash to shareholders, as the current cash on the balance sheet is not generating earnings [3][4]. - InMode's stock price is viewed as undervalued, with approximately 60% of its market cap in cash, and the company maintains no debt while generating free cash flow [4][7]. CEO Performance and Leadership Concerns - CEO Moshe Mizrahy's management style is criticized as reckless and antagonistic, contributing to the company's underperformance and negative public perception [2][5]. - The letter highlights that Mizrahy has consistently lowered guidance and made poor management decisions, such as firing the US Head of Sales before a critical quarter [5][6]. Financial Performance and Valuation - As of May 7, 2025, InMode's market capitalization, excluding cash, is approximately $375 million, which does not reflect the company's strong business fundamentals, including gross margins near 80% [7][8]. - The letter argues that the current valuation is disconnected from the reality of InMode's business, which includes valuable assets like inventory, global distribution, and unique intellectual property [7][8].

Company Participation in Investor Conferences - InMode Ltd. will participate in multiple investor conferences, including BNP 3rd Annual Aesthetics Day, Barclays West Coast Bus Trip, and Jefferies Global Healthcare Conference [1][2] - The BNP conference will feature a virtual fireside chat with CEO Moshe Mizrahy and CFO Yair Malca on May 19 at 11:00 am ET [1] - The Barclays West Coast Bus Trip will be an in-person event at InMode's North American headquarters in Irvine, CA on May 29, led by CFO Yair Malca [2] - The Jefferies Global Healthcare Conference will include an in-person fireside chat with CEO Moshe Mizrahy and CFO Yair Malca on June 4 at 3:10 pm ET in New York, NY [2] Company Overview - InMode is a leading global provider of innovative medical technologies, focusing on developing, manufacturing, and marketing devices that utilize novel radiofrequency (RF) technology [3] - The company aims to enable new surgical procedures and enhance existing treatments through its minimally invasive RF technologies [3] - InMode offers a comprehensive range of products across various medical categories, including plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology [3]

Core Points - InMode Ltd. has successfully obtained a default judgment against DHGate sellers for promoting counterfeit goods, resulting in a permanent injunction and damages awarded to the company [1][2] - The court's ruling protects InMode's trademark rights and includes measures to freeze the assets and halt the listings of the involved sellers [2] - InMode emphasizes its commitment to public safety and has established a Verified Provider Program for its Morpheus8 technology to ensure patients receive care from authorized providers [3][4] Legal Outcome - The US District Court granted InMode a permanent injunction against the sellers for trademark infringement, false designation of origin, and California unfair competition [2] - The ruling includes damages awarded per defendant, reinforcing InMode's stance against counterfeit goods [2] Company Initiatives - InMode has implemented a Verified Provider Program for Morpheus8, allowing certified clinics to confirm their authenticity and use of genuine technology [3] - The program aims to help patients identify safe and authorized providers, enhancing consumer trust in InMode's products [3][4] Company Overview - InMode is a global leader in innovative medical technologies, focusing on devices that utilize novel radiofrequency technology [5] - The company offers a comprehensive range of products across various medical fields, including plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology [5]

Core Insights - The article emphasizes the importance of combining clinical insight with rigorous valuation methods in analyzing healthcare and tech stocks [1] - It highlights the use of scenario-based DCF modeling, sensitivity analysis, and Monte Carlo simulations to identify asymmetric risk-reward opportunities [1] - The focus is on translating complex scientific and market dynamics into actionable investment theses [1] Group 1 - The analyst has a background as a registered nurse (RN) and holds an MBA, which informs their investment analysis [1] - The investment approach is influenced by concepts from "Superforecasting" and "Fooled by Randomness" [1] - The analyst encourages following their insights on social media for the latest thoughts on investments [1]