Financial Data and Key Metrics Changes - Fourth quarter revenue increased by 12% to $269 million, while full year revenue rose by 14% to $912 million, primarily driven by growth at existing centers and new center additions [16] - Fourth quarter net income per diluted share increased by $3.51 to $4.66, and full year net income per diluted share increased by $3.09 to $4.89 [16] - Fourth quarter adjusted net income per diluted share increased by $0.51 to $1.65, and full year adjusted net income per diluted share increased by $0.80 to $2.42 [17] - Operating cash flow for the fourth quarter was $52 million, totaling $117 million for the full year [17] - The company ended the quarter with $405 million in cash and investments, allowing for continued investments to drive profitable growth [17] Business Line Data and Key Metrics Changes - The Inspire 5 system demonstrated superiority over Inspire 4, with a significant reduction in surgical time and improved inspiratory overlap, leading to a 79.5% responder rate in the Singapore study [9][10] - Approximately 10,000 Inspire 5 procedures were performed in 2025, providing a basis for professional reimbursement [7] - The professional fee for CPT code 64568 is approximately 10% less than the reimbursement for CPT code 64582 used for Inspire 4 procedures [7] Market Data and Key Metrics Changes - The company is actively engaging with key government agencies and physician societies regarding the coding of the Inspire 5 procedure, with expectations of transitioning to CPT code 64582 with a -52 modifier [4][5] - The WISeR program, requiring prior authorization of Medicare cases in six pilot states, has begun affecting Medicare patient procedures in the first quarter [12] Company Strategy and Development Direction - The company is focused on developing a new CPT code for the Inspire 5 procedure, with clarity on coding and reimbursement expected to enhance patient care [8][13] - The strategy includes training advanced practice providers, certifying additional surgeons, and driving the adoption of Sleep Sync and digital tools to enhance patient access to Inspire therapy [14] - The company plans to transition the existing Inspire 4 IPG line to Inspire 5 later in 2026, ensuring stable product inventory throughout 2026 [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the coding of the Inspire 5 procedure and the potential impact on physician willingness to perform the procedure due to reduced professional fees [6] - The company revised its full year revenue guidance for 2026 to a range of $950 million to $1 billion, reflecting the expected impact from coding uncertainty [18] - Management expressed confidence in the long-term growth potential and the strategies in place to drive stakeholder value [15] Other Important Information - The company completed $50 million in share repurchases during the fourth quarter, totaling $175 million for the full year [17] - The company received FDA approval for 3 Tesla MRI compatibility, enhancing the product's appeal [12] Q&A Session Summary Question: What is the expected clarity on the physician fee with Gen 5 using the 82 code and the -52 modifier? - Management indicated that clarity will come as they work with MACs and commercial payers to minimize the reduction in professional fees [25] Question: What is the pathway forward for Gen 5 and the pursuit of a dedicated code? - Management confirmed the pursuit of a new CPT code, emphasizing that the -52 modifier is not a long-term solution [27] Question: How does the WISeR program impact revenue guidance? - Management clarified that the primary reason for revenue reduction is the coding uncertainty, with the WISeR program causing some disruption but not the main issue [29] Question: What percentage of physicians are salary-based versus RVUs? - Management noted that a majority of physicians are in private practice, with academic centers being salary-based, which mitigates the impact of professional fee reductions [32] Question: How does the company plan to manage the impact of the WISeR program? - Management expressed confidence in their ability to navigate the challenges posed by the WISeR program due to their history of working with Medicare [54]

Inspire Medical Systems, Inc. February 2026 NYSE: INSP This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts are forward-looking statements, including, without limitation, statements regarding potential impacts to our business associated with Inspire V reimbursement, our plans to obtain a long-term solution that would support appropriate reimbursement for Inspire V, and our ex ...

Financial Results - Inspire Medical Systems, Inc. announced preliminary and unaudited results for the quarter and full year ended December 31, 2025, with specific figures to be confirmed upon completion of closing procedures[5]. - The company’s financial results remain subject to change based on internal control over financial reporting[6]. Executive Appointment - The company appointed Matthew J. Osberg as Chief Financial Officer, effective after the filing of the Annual Report on Form 10-K for the fiscal year ended December 31, 2025[7]. - The transition of the Chief Financial Officer role follows Richard J. Buchholz's decision to step down in August 2025, with Buchholz serving as interim CFO until the filing of the 2025 10-K[15]. Compensation and Benefits - Mr. Osberg's annual base salary is set at $650,000, with a target annual cash bonus of 70% of his base salary and additional long-term incentive awards[10]. - The company will pay Mr. Osberg a cash sign-on bonus of $600,000, with half paid upon starting and the remainder six months later[11]. - Mr. Osberg is eligible for performance stock units valued at $1,500,000 and restricted stock units also valued at $1,500,000, both vesting based on performance objectives and time[11]. - The employment agreement with Mr. Osberg includes provisions for severance benefits in case of termination without cause[13]. Investor Relations - The company is participating in various meetings with investors and analysts in January 2026, with presentation materials available on its Investor Relations page[17]. Stock Information - Inspire Medical Systems is listed on the New York Stock Exchange under the trading symbol INSP[3].

Core Insights - Inspire Medical Systems reported strong financial results for Q4 and full year 2025, with a revenue increase of 14% year-over-year to $912 million, driven by growth at existing centers and new center additions [4][5][6]. Financial Performance - Q4 2025 revenue grew by 12% to $269.1 million compared to Q4 2024, with a gross margin increase of 160 basis points to 86.6% [5][6]. - Full year 2025 net income per diluted share was $4.89, with adjusted net income per diluted share at $2.42 [5][6]. - Operating cash flow for Q4 was $52.5 million, totaling $117 million for the full year [5][6]. Operational Highlights - The Inspire V launch showed positive patient outcomes and improvements in therapy delivery, despite challenges in the reimbursement landscape [2]. - The company received clarification on coding for the Inspire V procedure, transitioning to CPT code 64582, which will impact physician reimbursement rates [2][8]. Future Outlook - Inspire Medical Systems revised its revenue outlook for 2026 to a range of $950 million to $1 billion, reflecting expected annual growth of 4% to 10% [8][9]. - The company anticipates an adjusted operating margin of 6% to 8% and net income per diluted share between $1.23 and $1.81 for 2026 [9].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Viewpoint - Inspire Medical Systems, Inc. is under investigation by Kahn Swick & Foti, LLC due to potential breaches of fiduciary duties and failure to disclose material information related to the launch of its Inspire V device [1][3]. Group 1: Company Issues - In August 2025, Inspire Medical Systems disclosed that the launch of its Inspire V device would face an "elongated timeframe" due to undisclosed issues, including incomplete training and onboarding at many centers, delayed software updates, and excess inventory leading to poor demand [2]. - As a result of these issues, the company significantly reduced its 2025 earnings guidance by over 80%, from a range of $2.20 to $2.30 per share to a new range of $0.40 to $0.50 per share [2]. Group 2: Legal Actions - Following the disclosure of these issues, Inspire Medical Systems and certain executives were sued in a securities class action lawsuit for failing to disclose material information, which is still ongoing [3]. - KSF's investigation is focused on whether the company's officers and/or directors breached their fiduciary duties to shareholders or violated state or federal laws [3].

Company Overview - Inspire Medical Systems, Inc. specializes in innovative medical solutions for sleep apnea treatment, particularly known for its Inspire therapy, which serves as an alternative to traditional CPAP machines [1] Stock Performance - The current stock price of INSP is $81.33, reflecting a 2.43% increase or $1.93, with fluctuations between $78.17 and $81.76 throughout the day [4] - Over the past year, INSP has experienced significant volatility, with a high of $203.12 and a low of $70.77 [4] - The company's market capitalization is approximately $2.41 billion, with a trading volume of 1,084,065 shares on the NYSE [4] Analyst Insights - RBC Capital has set a price target of $90 for INSP, indicating a potential upside of approximately 10.66% from the current trading price [2][5] - Baillie Gifford & Co. has reduced its stake in INSP by 2.7%, selling 29,538 shares, leaving them with 1,084,350 shares valued at $80.5 million, which represents about 3.67% of the company [2][5] Institutional Investor Activity - The Texas Permanent School Fund Corp has increased its holdings in INSP by 42.2%, acquiring an additional 11,892 shares, bringing their total to 40,042 shares valued at $5.2 million [3] - Nordea Investment Management AB has entered a new position in INSP, investing approximately $1.6 million during the second quarter [3]

Core Insights - Inspire Medical Systems, Inc. (NYSE: INSP) specializes in innovative medical solutions for sleep apnea and has been a significant player in the medical device industry [1] - RBC Capital downgraded INSP from "Outperform" to "Sector Perform" with the stock priced at $81.33 at the time of the downgrade [1][6] Shareholder Activity - Baillie Gifford & Co. reduced its stake in Inspire Medical by 2.7%, selling 29,538 shares, leaving them with 1,084,350 shares valued at $80.5 million [2] - Texas Permanent School Fund Corp increased its holdings by 42.2%, now owning 40,042 shares valued at $5.2 million, indicating confidence in the company's future [3] - Nordea Investment Management AB acquired a new position valued at approximately $1.6 million, further reflecting investor interest [3] Stock Performance - The current stock price of INSP is $81.33, reflecting a 2.43% increase or $1.93, with fluctuations between $78.17 and $81.76 on the day [4] - Over the past year, the stock reached a high of $203.12 and a low of $70.77, indicating significant volatility [4] - The market capitalization of Inspire Medical stands at approximately $2.41 billion [4] Trading Activity - The trading volume for INSP on the NYSE is 1,084,065 shares, indicating active investor interest despite the recent downgrade [5]

Core Viewpoint - The Law Offices of Frank R. Cruz is investigating potential claims against the board of directors of Inspire Medical Systems, Inc. regarding possible breaches of fiduciary duties to shareholders [1] Group 1 - Inspire Medical Systems disclosed on August 4, 2025, that the launch of its new sleep apnea device, the Inspire V, is facing an "elongated timeframe" due to several issues [1]

Core Insights - Inspire Medical Systems (INSP) is positioned for growth due to a significant product transition, with strong clinical traction for Inspire V, clearer reimbursement pathways, and disciplined cost management, despite facing short-term pressures from inventory conversion and competition [1][8]. Company Overview - Inspire Medical focuses on innovative, minimally invasive solutions for obstructive sleep apnea, with a market capitalization of $2.74 billion. The company anticipates a 39.1% earnings decline for Q4 2025 but expects a return to growth in 2026 [3]. Financial Performance - The company has consistently surpassed earnings estimates over the past four quarters, achieving an average surprise of 164.19% [4]. Positive Factors Driving Prospects - The adoption of GLP-1 therapies is increasing patient referrals to sleep clinics, broadening the patient funnel for Inspire Medical [5]. - Operational execution has been solid, with earnings outperformance driven by margin improvement and disciplined expense management, alongside healthy cash flow and share buybacks [6]. - The rollout of Inspire V has reached over 75% of implanting centers, with physician training and contracting nearing completion, indicating strong adoption momentum [9]. - Favorable reimbursement changes, including an 11% increase in physician fees starting January 2026, are expected to enhance the economic viability of Inspire systems [10][11]. Key Challenges - Short-term uncertainty exists due to GLP-1 trialing, which may delay surgical interventions and impact volume growth [12]. - Operating expenses are rising faster than revenues, creating margin pressure, alongside early signs of competitive activity [13]. - Future margin expansion will depend on balancing growth investments with efficiency improvements as revenue growth stabilizes [14]. Estimate Trend - The Zacks Consensus Estimate for Inspire Medical's earnings is $1.60 per share for 2025, with projected revenues of $269 million and a loss per share of 70 cents for Q4 2025 [15].