Inogen(INGN) - 2025 Q2 - Quarterly Results

Recent Highlights and Executive Summary CEO Commentary CEO Kevin Smith noted Inogen's successful turnaround, with six quarters of revenue growth, two quarters of positive adjusted EBITDA, and raised full-year guidance - Achieved six consecutive quarters of mid-single-digit revenue growth[3] - Delivered two consecutive quarters of positive adjusted EBITDA[3] - Raised full-year revenue guidance due to strong first-half performance[3] Key Achievements In Q2 2025, Inogen achieved $92.3 million revenue (4.0% YoY), $2.1 million adjusted EBITDA, $4.4 million operating cash flow, and launched new products Q2 2025 Key Financial Achievements | Metric | Value (Millions) | | :-------------------------------- | :--------------- | | Revenue | $92.3 | | GAAP Net Loss | $(4.2) | | Adjusted Net Loss | $(0.7) | | Adjusted EBITDA | $2.1 | | Operating Cash Flow | $4.4 | | Cash, Cash Equivalents, Marketable Securities, and Restricted Cash (as of June 30, 2025) | $123.7 | - Introduced Voxi™ 5, a new stationary oxygen concentrator (SOC) for long-term care patients in the U.S.[7] - Launched Inogen Patient Portal to empower patients with self-service options for managing insurance, ordering accessories, and accessing support[7] Second Quarter 2025 Financial Results Overview of Q2 Performance Inogen reported a 4.0% year-over-year revenue increase to $92.3 million in Q2 2025, driven by higher international and domestic B2B demand, despite a gross margin decrease to 44.8% and improved net losses Q2 2025 Financial Performance Highlights | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (%) | | :-------------------- | :----------------- | :----------------- | :--------- | | Total Revenue | $92.3 | $88.8 | +4.0% | | Total Gross Margin | 44.8% | 48.1% | -3.3 pp | | Total Operating Expense | $47.5 | $49.8 | -4.7% | | GAAP Net Loss | $(4.2) | $(5.6) | Improved by $1.4 | | Adjusted Net Loss | $(0.7) | $(1.6) | Improved by $0.9 | | Adjusted EBITDA | $2.1 | $1.3 | +$0.8 | - Revenue growth was primarily driven by increased demand from international and domestic business-to-business customers[4] - The decrease in gross margin was mainly attributed to increased business-to-business sales as a percentage of total revenue[5] Financial Outlook Full Year 2025 Guidance Inogen raised its full-year 2025 revenue expectations to $354 million to $357 million, projecting approximately 6% growth and anticipating Adjusted EBITDA breakeven Full Year 2025 Financial Guidance | Metric | Guidance Range | | :----------------- | :----------------- | | Reported Revenue | $354 million to $357 million | | Revenue Growth (midpoint) | ~6% YoY | | Adjusted EBITDA | Breakeven | Third Quarter 2025 Guidance For Q3 2025, Inogen projects reported revenue between $91 million and $93 million, reflecting an approximate 4% year-over-year growth at the midpoint Third Quarter 2025 Financial Guidance | Metric | Guidance Range | | :----------------- | :----------------- | | Reported Revenue | $91 million to $93 million | | Revenue Growth (midpoint) | ~4% YoY | Company Information About Inogen Inogen, Inc. is a global medical technology company specializing in innovative respiratory products for homecare, developing, manufacturing, and marketing therapy devices for chronic respiratory conditions - Inogen is a leading global medical technology company offering innovative respiratory products for homecare[13] - The company develops, manufactures, and markets best-in-class respiratory therapy devices for chronic respiratory conditions[13] - Inogen partners with patients, prescribers, home medical equipment providers, and distributors to make its products widely available[13] Investor Relations & Contact Inogen provided details for its Q2 2025 conference call, including dial-in information, webcast access, and investor contact email - A conference call was scheduled for August 7, 2025, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time[11] - Live audio webcast and archived recording available on the Inogen Investor Relations website (http://investor.inogen.com/)[11](index=11&type=chunk)[12] - Investor contact email: ir@inogen.net[17] Legal and Non-GAAP Disclosures Forward-Looking Statements This section contains a standard disclaimer regarding forward-looking statements, emphasizing inherent risks and uncertainties that could cause actual results to differ materially from anticipated outcomes - Statements regarding future business plans, market opportunities, financial outlook, growth strategies, and anticipated operational results are forward-looking[15] - Forward-looking statements are subject to risks and uncertainties, including those related to financial guidance, market acceptance, competition, sales capabilities, and international operations[15] - Information on risks and uncertainties is contained in the company's Annual Report on Form 10-K and other SEC filings[15] Non-GAAP Financial Measures Inogen presents certain financial information on both U.S. GAAP and non-GAAP bases, including adjusted EBITDA and adjusted net loss, to provide useful supplemental information for performance comparison and strategic planning - Non-GAAP measures (EBITDA, adjusted EBITDA, adjusted operating expense, adjusted net loss, adjusted diluted EPS) are presented to supplement U.S. GAAP results[16] - Management uses non-GAAP measures to compare performance against forecasts, benchmark against competitors, and for compensation decisions[16] - Investors are encouraged to consider both U.S. GAAP and non-GAAP information, along with reconciliations, for a full understanding of the business[16] Consolidated Financial Statements (GAAP) Consolidated Statements of Comprehensive Loss For Q2 2025, Inogen's total revenue increased by 4.0% to $92.3 million, with lower operating expenses leading to an improved loss from operations and a reduced net loss of $(4.2) million Consolidated Statements of Comprehensive Loss (Q2 2025 vs Q2 2024) | Metric (in thousands) | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :-------------------------------- | :------ | :------ | :--------- | :--------- | | Total Revenue | $92,277 | $88,765 | $3,512 | +4.0% | | Sales Revenue | $79,172 | $74,425 | $4,747 | +6.4% | | Rental Revenue | $13,105 | $14,340 | $(1,235) | -8.6% | | Gross Profit | $41,341 | $42,737 | $(1,396) | -3.3% | | Total Operating Expense | $47,470 | $49,801 | $(2,331) | -4.7% | | Loss from Operations | $(6,129) | $(7,064) | $935 | Improved | | Net Loss | $(4,152) | $(5,590) | $1,438 | Improved | | Diluted Net Loss Per Share | $(0.15) | $(0.24) | $0.09 | Improved | Consolidated Statements of Comprehensive Loss (Six Months Ended June 30, 2025 vs 2024) | Metric (in thousands) | 6M 2025 | 6M 2024 | Change ($) | Change (%) | | :-------------------------------- | :------ | :------ | :--------- | :--------- | | Total Revenue | $174,557 | $166,790 | $7,767 | +4.7% | | Sales Revenue | $147,642 | $137,520 | $10,122 | +7.4% | | Rental Revenue | $26,915 | $29,270 | $(2,355) | -8.0% | | Gross Profit | $77,713 | $77,108 | $605 | +0.8% | | Total Operating Expense | $91,498 | $100,446 | $(8,948) | -8.9% | | Loss from Operations | $(13,785) | $(23,338) | $9,553 | Improved | | Net Loss | $(10,326) | $(20,168) | $9,842 | Improved | | Diluted Net Loss Per Share | $(0.40) | $(0.86) | $0.46 | Improved | Consolidated Balance Sheets As of June 30, 2025, Inogen's total assets increased to $312.0 million from $296.2 million, driven by marketable securities and accounts receivable, while total liabilities decreased and stockholders' equity rose Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change ($) | | :-------------------------------- | :------------ | :---------------- | :--------- | | Cash and Cash Equivalents | $103,685 | $113,795 | $(10,110) | | Marketable Securities | $18,745 | $0 | $18,745 | | Total Current Assets | $203,121 | $185,451 | $17,670 | | Total Assets | $312,040 | $296,185 | $15,855 | | Total Current Liabilities | $67,068 | $76,686 | $(9,618) | | Total Liabilities | $112,549 | $122,325 | $(9,776) | | Total Stockholders' Equity | $199,491 | $173,860 | $25,631 | Condensed Consolidated Cash Flow For the six months ended June 30, 2025, Inogen reported a net cash outflow from operating activities of $(12.4) million, with significant financing inflows of $24.0 million from common stock issuance, leading to a smaller overall net decrease in cash Condensed Consolidated Cash Flow Highlights (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change ($) | | :------------------------------------------ | :------- | :------- | :--------- | | Net Cash Provided by (Used in) Operating Activities | $(12,440) | $1,940 | $(14,380) | | Net Cash Used in Investing Activities | $(24,611) | $(25,820) | $1,209 | | Net Cash Provided by Financing Activities | $23,951 | $84 | $23,867 | | Net Decrease in Cash, Cash Equivalents and Restricted Cash | $(12,458) | $(24,013) | $11,555 | - The significant increase in net cash from financing activities was driven by $27.2 million in proceeds from the issuance of common stock from a securities purchase agreement[24] Supplemental Data and Non-GAAP Reconciliations Revenue by Region and Category In Q2 2025, Inogen's revenue growth was primarily fueled by strong domestic B2B sales (+19.3%) and international B2B sales (+17.7%), offsetting declines in D2C sales and rentals, with an increase in units sold Q2 2025 Revenue by Region and Category (in thousands) | Category | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :-------------------------- | :------ | :------ | :--------- | :--------- | | Business-to-business domestic sales | $25,406 | $21,287 | $4,119 | +19.3% | | Business-to-business international sales | $35,923 | $30,531 | $5,392 | +17.7% | | Direct-to-consumer domestic sales | $17,843 | $22,607 | $(4,764) | -21.1% | | Direct-to-consumer domestic rentals | $13,105 | $14,340 | $(1,235) | -8.6% | | Total Revenue | $92,277 | $88,765 | $3,512 | +4.0% | Q2 2025 Operational Metrics | Metric | Q2 2025 | Q2 2024 | | :------------------------ | :------ | :------ | | Units Sold | 49,000 | 41,300 | | Net Rental Patients (period-end) | 50,400 | 51,900 | Six Months Ended June 30, 2025 Revenue by Region and Category (in thousands) | Category | 6M 2025 | 6M 2024 | Change ($) | Change (%) | | :-------------------------- | :------ | :------ | :--------- | :--------- | | Business-to-business domestic sales | $46,860 | $37,806 | $9,054 | +23.9% | | Business-to-business international sales | $67,908 | $56,566 | $11,342 | +20.1% | | Direct-to-consumer domestic sales | $32,874 | $43,148 | $(10,274) | -23.8% | | Direct-to-consumer domestic rentals | $26,915 | $29,270 | $(2,355) | -8.0% | | Total Revenue | $174,557 | $166,790 | $7,767 | +4.7% | Reconciliation of Non-GAAP Measures This section provides detailed reconciliations of U.S. GAAP to non-GAAP financial measures, showing that for Q2 2025, Adjusted EBITDA improved to $2.1 million and Adjusted Net Loss significantly improved to $(0.7) million Non-GAAP EBITDA and Adjusted EBITDA Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | | Net loss (GAAP) | $(4,152) | $(5,590) | $(10,326) | $(20,168) | | EBITDA (non-GAAP) | $(212) | $(1,585) | $(2,323) | $(12,451) | | Adjusted EBITDA (non-GAAP) | $2,081 | $1,258 | $2,117 | $(6,384) | Non-GAAP Adjusted Financial Metrics Reconciliation (Q2 2025 vs Q2 2024, in thousands) | Metric | GAAP 2025 | Adjusted 2025 | GAAP 2024 | Adjusted 2024 | | :-------------------- | :-------- | :------------ | :-------- | :------------ | | Operating Expense | $47,470 | $43,968 | $49,801 | $45,770 | | Loss from Operations | $(6,129) | $(2,627) | $(7,064) | $(3,033) | | Net Loss | $(4,152) | $(650) | $(5,590) | $(1,559) | | Diluted EPS | $(0.15) | $(0.02) | $(0.24) | $(0.07) | Non-GAAP Adjusted Financial Metrics Reconciliation (6M 2025 vs 6M 2024, in thousands) | Metric | GAAP 2025 | Adjusted 2025 | GAAP 2024 | Adjusted 2024 | | :-------------------- | :-------- | :------------ | :-------- | :------------ | | Operating Expense | $91,498 | $84,710 | $100,446 | $92,259 | | Loss from Operations | $(13,785) | $(6,997) | $(23,338) | $(15,151) | | Net Loss | $(10,326) | $(3,538) | $(20,168) | $(11,981) | | Diluted EPS | $(0.40) | $(0.14) | $(0.86) | $(0.51) |