Revenue Performance - Revenue for Q1 2025 was $201.3 million, a 23% increase from $164.0 million in Q1 2024[3] - U.S. revenue for the quarter was $193.6 million, reflecting a 24% increase compared to the prior year[3] - Full year 2025 revenue guidance is maintained at $940 million to $955 million, representing a growth of 17% to 19% over 2024[9] Profitability Metrics - Gross margin for Q1 2025 was 84.7%, slightly down from 84.9% in Q1 2024[4] - Operating loss improved to $1.5 million in Q1 2025, a 90% improvement from a loss of $15.2 million in the prior year[5] - Net income for Q1 2025 was $3.0 million, compared to a net loss of $10.0 million in Q1 2024[6] - Adjusted EBITDA for Q1 2025 was $33.2 million, up from $11.9 million in the same period last year[6] - The adjusted EBITDA margin improved to 16% in Q1 2025, compared to 7% in Q1 2024[29] - The net income margin improved to 1% in Q1 2025, compared to a negative margin of 6% in Q1 2024[29] Patient and Product Updates - The company surpassed 100,000 patients receiving Inspire therapy[2] - The Inspire V system is set for full launch in the U.S. this month[2] Financial Position - Total assets decreased from $808,383,000 on December 31, 2024, to $730,809,000 on March 31, 2025, representing a decline of approximately 9.6%[26] - Total current assets decreased from $630,806,000 at the end of 2024 to $571,679,000 by March 31, 2025, a reduction of about 9.4%[26] - Total liabilities decreased from $118,688,000 on December 31, 2024, to $95,066,000 on March 31, 2025, a decline of approximately 19.9%[26] - Cash and cash equivalents decreased significantly from $150,150,000 at the end of 2024 to $53,882,000 by March 31, 2025, a drop of approximately 64.1%[26] - Accounts payable decreased from $38,687,000 at the end of 2024 to $29,137,000 by March 31, 2025, a reduction of approximately 24.7%[26] Stock-Based Compensation - Stock-based compensation expense increased to $31,056,000 in Q1 2025, compared to $26,322,000 in Q1 2024, reflecting a rise of about 18.5%[28] Guidance Updates - Diluted net income per share guidance for 2025 is increased to between $2.20 to $2.30, up from the previous guidance of $2.10 to $2.20[9]

Inspire Reports Year-over-Year Revenue Growth of 23% and Earnings per Share of $0.10 in the First Quarter MINNEAPOLIS, May 05, 2025 (GLOBE NEWSWIRE) -- Inspire Medical Systems, Inc. (NYSE: INSP) (Inspire, or the company), a medical technology company focused on the development and commercialization of innovative, minimally invasive solutions for patients with obstructive sleep apnea, today reported financial results for the quarter ended March 31, 2025. Recent Business Highlights Generated revenue of $201.3 ...

Core Insights - Inspire Medical Systems, Inc. is a medical technology company specializing in minimally invasive solutions for obstructive sleep apnea [3] - The company will present at the BofA Securities 2025 Health Care Conference on May 13, 2025, at 2:20 p.m. Eastern Time [2] - Inspire's proprietary therapy is the first and only FDA, EU MDR, and PDMA-approved neurostimulation technology for treating moderate to severe obstructive sleep apnea [3] Company Information - Inspire focuses on the development and commercialization of innovative solutions for obstructive sleep apnea [3] - The company’s Inspire therapy is recognized for its safety and effectiveness in treating the condition [3] - Additional information about Inspire can be found on their official website [3]

Core Viewpoint - Inspire Medical Systems, Inc. will release its financial results for Q1 2025 on May 5, 2025, after market close, followed by a conference call to discuss the results and business developments [1]. Financial Results Announcement - The financial results for the first quarter of 2025 will be announced after the close of trading on May 5, 2025 [1]. - A conference call will take place at 5:00 p.m. Eastern Time to discuss these results [1]. Conference Call Details - A webcast of the conference call will be available on the Investor Relations page of Inspire's website [2]. - Participants wishing to ask questions must register through a provided link to receive dial-in details and a unique access code [3]. - It is recommended to register at least 10 minutes before the call starts to ensure connection [3]. - A replay of the call will be available approximately two hours after the event and archived for two weeks [4]. Company Overview - Inspire Medical Systems focuses on developing and commercializing innovative, minimally invasive solutions for obstructive sleep apnea [5]. - The company's proprietary Inspire therapy is the first and only FDA, EU MDR, and PDMA-approved neurostimulation technology for treating moderate to severe obstructive sleep apnea [5].

Company Overview - Inspire Medical Systems, Inc. is a medical technology company focused on developing and commercializing innovative, minimally invasive solutions for patients with obstructive sleep apnea [3]. - The company's proprietary Inspire therapy is the first and only FDA, EU MDR, and PDMA-approved neurostimulation technology that provides a safe and effective treatment for moderate to severe obstructive sleep apnea [3]. Upcoming Presentation - Inspire is scheduled to present at the KeyBanc Capital Markets Healthcare Forum on March 18, 2025, at 3:00 p.m. Eastern Time [2]. - The presentation will be accessible via a live webcast, with a replay available for two weeks following the event in the Event Archive section of Inspire's Investor website [2].

Company Overview - Inspire Medical Systems is a medical technology company based in Minneapolis, MN, focused on developing and commercializing innovative, minimally-invasive solutions for patients with obstructive sleep apnea (OSA) [11] - The company's proprietary Inspire system is the first and only FDA-approved neurostimulation technology for treating moderate to severe OSA, utilizing a closed-loop solution that monitors breathing and delivers mild hypoglossal nerve stimulation [11] Financial Performance - Inspire Medical has a Zacks Rank of 2 (Buy) and a VGM Score of A, indicating strong potential for investment [12] - The company has seen a positive trend in earnings estimates, with seven analysts revising their estimates higher for fiscal 2025, leading to an increase in the Zacks Consensus Estimate by $0.12 to $2.16 per share [12] - Inspire Medical boasts an impressive average earnings surprise of 332.5%, highlighting its ability to exceed earnings expectations [12] Investment Potential - The Momentum Style Score for Inspire Medical is rated B, and the stock has increased by 1.1% over the past four weeks, suggesting positive momentum [12] - With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, Inspire Medical is recommended for investors looking for promising opportunities in the medical technology sector [13]

Core Viewpoint - Inspire Medical Systems (INSP) has shown a 6.1% gain over the past four weeks, with a mean price target of $235.40 indicating a potential upside of 25.9% from the current price of $187.01 [1] Price Target Analysis - The average of 15 short-term price targets ranges from a low of $190 to a high of $270, with a standard deviation of $26.31, suggesting variability in analyst estimates [2] - The lowest estimate indicates a 1.6% increase, while the highest suggests a 44.4% upside, highlighting the range of analyst opinions [2] Analyst Consensus and Earnings Estimates - Analysts have shown a strong agreement in revising earnings estimates higher, which is a positive indicator for potential stock upside [4][9] - The Zacks Consensus Estimate for the current year has increased by 6.3% over the past month, with six estimates going higher and two lower [10] Zacks Rank and Investment Potential - INSP holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [11] - This rank, along with a strong externally-audited track record, suggests a solid potential upside for the stock in the near term [11] Caution on Price Targets - While price targets can provide insights, they should be approached with skepticism as they may not reliably indicate actual stock price movements [5][8]

Core Insights - Inspire Medical Systems, Inc. (INSP) reported a significant increase in earnings per share (EPS) for the fourth quarter of 2024, reaching $1.15, which is a 134.7% increase from the previous year's EPS of 49 cents, and exceeded the Zacks Consensus Estimate by 55.4% [1] - The full-year 2024 EPS was $1.75, compared to a loss of 72 cents per share in 2023, surpassing the Zacks Consensus Estimate by 31.6% [2] Revenue Performance - Inspire Medical's revenues for the fourth quarter were $239.7 million, reflecting a year-over-year increase of 24.5%, and slightly beating the Zacks Consensus Estimate by 0.04% [3] - For the full year 2024, revenues totaled $802.8 million, marking a 28.5% increase from 2023 [3] Geographic Revenue Breakdown - U.S. revenues for the fourth quarter amounted to $231.6 million, up 22% year-over-year [4] - International revenues reached $8.1 million, showing a remarkable year-over-year increase of 163% [5] Margin and Expense Analysis - Gross profit for the fourth quarter increased by 23.9% to $203.7 million, although the gross margin contracted by 44 basis points to 84.9% [6] - Selling, general, and administrative expenses rose by 14% year-over-year to $141.5 million, while research and development expenses decreased by 2.3% to $30.3 million [6] Operating Performance - Operating profit for the quarter was $31.9 million, a substantial increase of 242.9% from the prior year, with the operating margin expanding by 847 basis points to 13.3% [7] Financial Position - At the end of 2024, Inspire Medical had cash and cash equivalents and short-term investments totaling $445.5 million, down from $460.4 million at the end of 2023 [8] - Cumulative net cash provided by operating activities increased to $130.2 million from $24.7 million a year ago [8] Future Outlook - Inspire Medical has reiterated its revenue outlook for 2025, projecting revenues between $940 million and $955 million, which represents a growth of 17-19% from 2023 levels [10] - The company expects EPS for 2025 to be in the range of $2.10 to $2.20, compared to the Zacks Consensus Estimate of $2.03 [10] Strategic Developments - During the reported quarter, Inspire Medical activated 72 new U.S. centers, increasing the total to 1,435 centers providing Inspire therapy, and created 12 new U.S. sales territories, bringing the total to 335 [5] - The management highlighted positive early feedback from the Inspire V device and the full launch of the new Inspire SleepSync programming system in the U.S., which aims to enhance patient programming efficiency and data access [12]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $239.7 million, a 25% increase from $192.5 million in Q4 2023 [26] - Net income for Q4 2024 was $35.2 million, compared to $14.8 million in the prior year, representing diluted net income of $1.15 per share versus $0.49 per share in Q4 2023 [11] - Full year 2024 revenue totaled $802.8 million, a 28% increase over $624.8 million in 2023 [30] - Full year diluted net income per share was $1.75 compared to a net loss of $0.72 per share in 2023 [31] Business Line Data and Key Metrics Changes - U.S. revenue in Q4 2024 was $231.6 million, a 22% increase from $189.4 million in the prior year [26] - Revenue outside the U.S. was $8.1 million, a 163% increase year-over-year [26] - Gross margin in Q4 2024 was 85% [27] - Adjusted EBITDA for Q4 2024 was $62.7 million, a 26% adjusted EBITDA margin compared to $33 million or a 17% margin in Q4 2023 [29] Market Data and Key Metrics Changes - The company added 72 new U.S. centers in Q4 2024, bringing the total to 1,435 active U.S. centers [27] - Revenue outside the U.S. for the full year 2024 was $31.8 million, a 71% year-over-year growth [30] Company Strategy and Development Direction - The company aims to enhance patient access and therapy outcomes through organizational changes and new leadership roles [9] - Key strategies include adding advanced practice providers, certifying additional surgeons, and driving the adoption of new digital tools [25] - The Inspire V neurostimulator is expected to simplify procedures and improve efficiency, with a full launch planned for 2025 [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full year 2025 revenue guidance of $940 million to $955 million, representing 17% to 19% growth year-over-year [11][32] - The company is committed to improving annual operating margins and expects sequential improvement throughout 2025 [39] - Management remains focused on ethical business practices amid a civil investigative demand from the Department of Justice [23][24] Other Important Information - The company generated $130 million in operating cash flow for the full year 2024, increasing total cash and investment balances to $517 million [29] - The Inspire V device incorporates respiratory sensing, reducing surgical complexity and costs [13] Q&A Session Summary Question: EPS guidance and DOJ CID - Management indicated that they do not expect to be profitable in Q1 but anticipate sequential improvement throughout the year [39][41] Question: Impact of automated scheduling on patient volume - Management reported significant advantages in patient appointment success using digital scheduling, leading to increased participation in the program [47][48] Question: Inspire V reimbursement and physician feedback - Management believes the Inspire V will not be a barrier for physicians and will actually encourage more cases due to reduced surgical time [52][54] Question: Revenue and expense phasing with Inspire V launch - Management expects sequential revenue growth throughout the year, with continued investments in R&D and expansion of sales territories [62] Question: International revenue growth and interest income - Management indicated that international revenue will continue to represent 3% to 4% of worldwide revenue, with interest income expected to be around $20 million for the year [94][95] Question: Inventory build for Inspire V - Management confirmed that they are actively building inventory for Inspire V and have opened a new production line to support this [127][129] Question: Long-term center base outlook - Management aims to continue growing the number of centers and expects to maintain a consistent growth trajectory over the next few years [148]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $239.7 million, a 25% increase from $192.5 million in Q4 2023 [26] - Net income for Q4 2024 was $35.2 million, compared to $14.8 million in the prior year, representing diluted net income of $1.15 per share versus $0.49 per share in Q4 2023 [11][28] - For the full year 2024, revenue totaled $802.8 million, a 28% increase over $624.8 million in 2023, with net income of $53.5 million compared to a net loss of $21.2 million in 2023 [31] Business Line Data and Key Metrics Changes - U.S. revenue in Q4 2024 was $231.6 million, a 22% increase from $189.4 million in the prior year [26] - Revenue outside the U.S. was $8.1 million, a 163% increase year-over-year [26] - The company added 72 new U.S. centers in Q4 2024, bringing the total to 1,435 active U.S. centers [27] Market Data and Key Metrics Changes - The company continues to expand its market presence, with a focus on increasing patient access and therapy adoption [24] - The Inspire V neurostimulator received FDA approval, which is expected to enhance market penetration and patient outcomes [12] Company Strategy and Development Direction - The company aims to drive growth through the adoption of Inspire therapy, enhancing patient access, and increasing the capacity of provider partners [24] - Key strategies include adding advanced practice providers and certifying additional surgeons qualified to implant Inspire therapy [25] - The company plans to invest in medical education programs to improve awareness and adoption of Inspire therapy [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth strategy and the potential for long-term stakeholder value [25] - The company anticipates continued revenue growth in 2025, with guidance of $940 million to $955 million, representing a 17% to 19% increase year-over-year [32] - Management acknowledged the ongoing investigation by the Department of Justice but does not expect it to interfere with business operations [24][41] Other Important Information - The company generated $130 million in operating cash flow for the full year 2024, with total cash and investment balances reaching $517 million [29] - The Inspire V device is designed to reduce surgical complexity and improve patient outcomes, with positive early feedback from initial procedures [13][14] Q&A Session Summary Question: EPS guidance and DOJ CID - Management indicated that they do not expect to be profitable in Q1 but anticipate sequential improvement throughout the year [39] - Regarding the DOJ CID, management committed to cooperating with the investigation and emphasized their compliance programs [41][42] Question: Impact of digital scheduling on patient volume - Management reported significant advantages in patient appointment success using digital scheduling, leading to increased participation in the program [47][48] Question: Inspire V reimbursement and physician feedback - Management believes the Inspire V will not be a barrier to adoption, as it simplifies the procedure for ENT surgeons [52][54] Question: Revenue phasing and expenses for Inspire V launch - Management expects sequential revenue growth throughout the year, with continued investments in R&D and expansion of sales territories [62] Question: International revenue growth and interest income - Management indicated that international revenue is expected to remain a small percentage of total revenue, while interest income is projected at $20 million for the year [93][95] Question: Inventory build for Inspire V - Management confirmed that they are actively building inventory for Inspire V and have opened a new production line to support this [127][128] Question: Long-term center base outlook - Management expressed a commitment to consistent growth and expanding the center base over the next 3 to 5 years [148]