
Part I – Financial Information This section presents the company's unaudited consolidated financial statements and management's analysis Item 1. Financial Statements This section presents the unaudited consolidated financial statements, including balance sheets, statements of comprehensive loss, statements of stockholders' equity, and statements of cash flows, along with their condensed notes, providing a detailed financial overview for the reported periods Consolidated Balance Sheets This section details the company's financial position, including assets, liabilities, and equity Consolidated Balance Sheet Highlights (in thousands): | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :-------------- | :---------------- | | Total Assets | $312,040 | $296,185 | | Total Liabilities | $112,549 | $122,325 | | Total Stockholders' Equity | $199,491 | $173,860 | | Cash and cash equivalents | $103,685 | $113,795 | Consolidated Statements of Comprehensive Loss This section outlines the company's financial performance, detailing net loss and total revenue Net Loss and Revenue (Three Months Ended June 30, in thousands): | Metric | 2025 | 2024 | Change ($) | Change (%) | | :---------------- | :----- | :----- | :--------- | :--------- | | Net Loss | $(4,152) | $(5,590) | $1,438 | 25.7% | | Total Revenue | $92,277 | $88,765 | $3,512 | 4.0% | Net Loss and Revenue (Six Months Ended June 30, in thousands): | Metric | 2025 | 2024 | Change ($) | Change (%) | | :---------------- | :------ | :------ | :--------- | :--------- | | Net Loss | $(10,326) | $(20,168) | $9,842 | 48.8% | | Total Revenue | $174,557 | $166,790 | $7,767 | 4.7% | | Comprehensive Loss | $(5,938) | $(21,531) | $15,593 | 72.4% | Consolidated Statements of Stockholders' Equity This section details changes in the company's equity, including stock issuance and compensation Total Stockholders' Equity (in thousands): | Date | Amount | | :---------------- | :----- | | June 30, 2025 | $199,491 | | June 30, 2024 | $187,595 | | December 31, 2024 | $173,860 | - Proceeds from issuance of common stock from securities purchase agreement totaled $27,210 thousand for the six months ended June 30, 202514 - Stock-based compensation expense for the six months ended June 30, 2025, was $4,440 thousand, up from $4,230 thousand in 202414 Consolidated Statements of Cash Flows This section summarizes cash flows from operating, investing, and financing activities Summary of Consolidated Cash Flows (Six Months Ended June 30, in thousands): | Activity | 2025 | 2024 | Change ($) | Change (%) | | :-------------------------------- | :------- | :------- | :--------- | :----------- | | Net cash provided by (used in) operating activities | $(12,440) | $1,940 | $(14,380) | -741.2% | | Net cash used in investing activities | $(24,611) | $(25,820) | $1,209 | 4.7% | | Net cash provided by financing activities | $23,951 | $84 | $23,867 | 28413.1% | | Net decrease in cash and cash equivalents | $(12,458) | $(24,013) | $11,555 | -48.1% | - Cash, cash equivalents and restricted cash at the end of the period was $104,957 thousand as of June 30, 2025, compared to $101,479 thousand as of June 30, 202421 Condensed Notes to the Consolidated Financial Statements These notes provide detailed explanations and disclosures for the consolidated financial statements, covering business operations, accounting policies, fair value measurements, balance sheet components, leases, loss per share, income taxes, stockholders' equity, commitments, contingencies, foreign currency hedging, and segment reporting 1. Business overview This note describes the company's core business, recent acquisitions, and strategic collaborations - Inogen, Inc. is a medical technology company focused on respiratory health, developing, manufacturing, and marketing portable oxygen concentrators (POCs) and the Simeox® product for airway clearance treatment24 - The company completed the acquisition of Physio-Assist SAS on September 14, 202326 - On January 25, 2025, Inogen entered into a Strategic Collaboration Agreement with Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. (Yuwell) to broaden its product portfolio, enhance innovation, and accelerate entry into the Chinese market27 2. Basis of presentation and summary of significant accounting policies This note outlines accounting principles, U.S. GAAP compliance, and key management estimates - The consolidated financial statements are prepared in accordance with U.S. GAAP and include Inogen, Inc. and its wholly-owned subsidiaries, with all intercompany balances and transactions eliminated2830 - Significant areas requiring management estimates include revenue recognition, warranty reserves, rental asset valuations, accounts receivable allowances, goodwill impairment, stock-based compensation, income taxes, and fair value of acquired intangibles31 3. Fair value measurements This note details the fair value of financial instruments, including cash, investments, and earnout liabilities Fair Value Measurements (as of June 30, 2025, in thousands): | Asset Category | Fair Value | | :-------------------------------- | :--------- | | Cash | $23,699 | | Money market accounts | $55,564 | | Corporate bonds | $8,741 | | U.S. Treasury securities | $10,004 | | Institutional Insured Liquidity Deposit Savings | $25,694 | | Total | $123,702 | - The company had a derivative instrument related payable of $2,820 thousand as of June 30, 2025, for hedging activities33 - The earnout liability of $13,000 thousand related to the Physio-Assist acquisition as of December 31, 2024, was fully paid during the first quarter of 2025, resulting in a zero balance as of June 30, 202535 4. Balance sheet components This note provides a breakdown of key balance sheet items: cash, accounts receivable, goodwill, and intangibles Cash, Cash Equivalents and Restricted Cash (in thousands): | Date | Amount | | :---------------- | :------- | | June 30, 2025 | $104,957 | | December 31, 2024 | $117,415 | Net Accounts Receivable (in thousands): | Category | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | Rental | $5,462 | $4,863 | | Business-to-business and other receivables | $33,130 | $24,700 | | Total net accounts receivable | $38,592 | $29,563 | - Goodwill increased to $10,700 thousand as of June 30, 2025, from $9,465 thousand as of December 31, 2024, primarily due to translation adjustment49 Net Intangible Assets (in thousands): | Date | Amount | | :---------------- | :------- | | June 30, 2025 | $33,359 | | December 31, 2024 | $30,493 | 5. Leases This note details the company's operating lease arrangements, including cash payments and total lease liabilities - The Company has operating leases primarily for commercial buildings with terms ranging from three to 11 years52 Cash Paid for Operating Lease Liabilities (Six Months Ended June 30, in thousands): | Year | Amount | | :--- | :----- | | 2025 | $1,902 | | 2024 | $2,290 | Total Lease Liabilities (as of June 30, 2025, in thousands): | Category | Amount | | :-------------------------- | :------- | | Operating lease liability - current | $3,082 | | Operating lease liability - noncurrent | $15,955 | | Total lease liabilities | $19,037 | 6. Loss per share This note presents basic and diluted net loss per share for the reported periods, explaining dilution factors Net Loss Per Share (Three Months Ended June 30): | Metric | 2025 | 2024 | | :-------------------------- | :----- | :----- | | Basic net loss per share | $(0.15) | $(0.24) | | Diluted net loss per share | $(0.15) | $(0.24) | Net Loss Per Share (Six Months Ended June 30): | Metric | 2025 | 2024 | | :-------------------------- | :----- | :----- | | Basic net loss per share | $(0.40) | $(0.86) | | Diluted net loss per share | $(0.40) | $(0.86) | - Due to net losses, diluted loss per share is the same as basic loss per share for both the three and six months ended June 30, 2025 and 202460 7. Income taxes This note discusses the company's income tax position, including valuation allowances and effective rates - The Company maintains a full valuation allowance against its domestic and certain foreign deferred tax assets as of June 30, 2025, and December 31, 202461 - Income tax benefit increased by $0.1 million (2,085.7%) for the three months ended June 30, 2025, compared to 2024, primarily due to lower foreign and state taxes120 - The effective income tax rate for the three months ended June 30, 2025, was 3.6%, up from 0.1% in 2024, due to a lower net loss and foreign/state taxes121 8. Stockholders' equity This note details changes in stockholders' equity, including common stock issuance and stock-based compensation - On January 25, 2025, the Company entered into a Securities Purchase Agreement with Yuwell (Hong Kong) Holdings Limited, resulting in the sale of 2,626,425 shares of common stock for approximately $27,210 thousand68 - Unrecognized compensation cost related to unvested employee restricted stock units was $13,299 thousand as of June 30, 2025, expected to be recognized over a weighted average period of 2.1 years72 Total Stock-Based Compensation Expense (in thousands): | Period | 2025 | 2024 | | :-------------------------- | :----- | :----- | | Three months ended June 30 | $2,293 | $1,814 | | Six months ended June 30 | $4,440 | $4,230 | 9. Commitments and contingencies This note outlines outstanding purchase orders, product warranty liabilities, deferred revenue, and legal proceedings - Outstanding purchase orders due within one year totaled approximately $60,900 thousand as of June 30, 202577 Product Warranty Liability (in thousands): | Date | Amount | | :---------------- | :------- | | June 30, 2025 | $26,724 | | December 31, 2024 | $26,086 | - Deferred revenue related to lifetime warranties decreased to $8,388 thousand as of June 30, 2025, from $9,922 thousand at December 31, 2024, primarily due to revenue recognition79 - The Company is party to various legal proceedings but does not anticipate a material adverse effect on its business81 10. Foreign currency exchange contracts and hedging This note describes the company's use of derivative instruments to hedge foreign currency exchange risk and their impact Total Notional Amounts of Derivative Contracts (in thousands): | Date | Amount | | :---------------- | :------- | | June 30, 2025 | $18,266 | | June 30, 2024 | $38,804 | - These contracts resulted in an unrealized loss of $1,435 thousand (net of tax) for the six months ended June 30, 202582 - The Company uses foreign exchange forward contracts as cash flow hedges to mitigate foreign currency exchange risk, particularly for European sales denominated in Euros165 11. Segments This note clarifies the company operates as a single reportable segment, with consolidated results reviewed by CODM - The Company operates and reports in only one operating and reportable segment, based on the similar nature of its products and services in the oxygen therapy and respiratory care markets84 - The executive leadership team (ELT) acts as the Chief Operating Decision Maker (CODM) and reviews consolidated results to allocate resources and assess performance84 12. Subsequent events This note discloses significant events occurring after the reporting period, such as new tax laws - On July 4, 2025, the One Big Beautiful Bill Act ('OBBBA') was enacted, providing significant U.S. tax law changes. The Company is evaluating its potential effects but expects no material impact on financial statements as of June 30, 202585139 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's perspective on the company's financial condition and operational results, highlighting key performance drivers, macroeconomic impacts, and future outlook. It details revenue and expense trends for the three and six months ended June 30, 2025, compared to 2024, and discusses liquidity and capital resources Forward-Looking Statements This section cautions that statements about future performance are based on assumptions and involve material risks - The discussion contains forward-looking statements based on management's beliefs and assumptions, covering future cash flows, revenue, expenses, product development, regulatory approvals, market share, and financing plans86 - These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially, as detailed in the 'Risk Factors' section of the 10-Q and Annual Report on Form 10-K88 - The company assumes no obligation to update these forward-looking statements unless required by law89 Critical accounting policies and estimates This section identifies key accounting policies and estimates requiring significant management judgment - Critical accounting policies and estimates include revenue recognition and acquisitions/related acquired intangible assets and goodwill, which require significant management judgment96 - There have been no material changes in critical accounting policies and estimates during the three and six months ended June 30, 2025, compared to the Annual Report on Form 10-K for 202496 Recent accounting pronouncements This section refers to Note 2 for details on recently adopted and proposed accounting pronouncements - Information about recently adopted and proposed accounting pronouncements is included in Note 2 to the consolidated financial statements97 Macroeconomic environment This section discusses the impact of global supply chain issues, inflation, interest rates, and geopolitical dynamics - The company faces ongoing global supply chain challenges, including increased costs and limited availability of raw materials and components, as well as rising wage and distribution costs98 - Uncertainty from inflationary pressures, interest rates, monetary policy, and geopolitical dynamics could negatively impact business operations and financial results, including foreign currency fluctuations98 - Current U.S. government tariffs are not expected to have a material impact on the business99 Overview This section describes Inogen's medical technology business, strategic goals, and recent product collaborations - Inogen is a medical technology company specializing in innovative respiratory products, including portable oxygen concentrators (POCs) and the Simeox product for airway clearance101 - The company aims to expand its domestic HME provider and reseller network, increase international business-to-business adoption (especially in Europe and Asia-Pacific), and broaden its product offerings and indications for use103104 - In January 2025, a collaboration with Yuwell was initiated to distribute respiratory products in the U.S. and China, including the launch of the Voxi™ 5 stationary oxygen concentrator in the U.S. in June 2025105 Results of operations This section provides a detailed comparison of the company's financial performance for the three and six months ended June 30, 2025, versus the corresponding periods in 2024, analyzing revenue, cost of revenue, gross profit, and operating expenses Comparison of three months ended June 30, 2025 and 2024 For the three months ended June 30, 2025, total revenue increased by 4.0% driven by higher business-to-business sales, while direct-to-consumer sales and rental revenue decreased. Net loss improved by 25.7% due to increased sales revenue and lower operating expenses Revenue by Type (Three Months Ended June 30, in thousands): | Metric | 2025 | 2024 | Change ($) | Change (%) | | :---------------- | :----- | :----- | :--------- | :--------- | | Sales revenue | $79,172 | $74,425 | $4,747 | 6.4% | | Rental revenue | $13,105 | $14,340 | $(1,235) | -8.6% | | Total revenue | $92,277 | $88,765 | $3,512 | 4.0% | Revenue by Region and Category (Three Months Ended June 30, in thousands): | Category | 2025 | 2024 | Change ($) | 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 | $(1,235) | -8.6% | Gross Profit and Margin (Three Months Ended June 30, in thousands): | Metric | 2025 | 2024 | Change ($) | Change (%) | | :-------------------------- | :----- | :----- | :--------- | :--------- | | Total gross profit | $41,341 | $42,737 | $(1,396) | -3.3% | | Total gross margin percentage | 44.8% | 48.1% | -3.3% | | | Sales revenue gross margin | 45.1% | 48.5% | -3.4% | | | Rental revenue gross margin | 43.0% | 46.2% | -3.2% | | Operating Expenses (Three Months Ended June 30, in thousands): | Expense Category | 2025 | 2024 | Change ($) | Change (%) | | :-------------------------- | :----- | :----- | :--------- | :--------- | | Research and development | $5,209 | $5,616 | $(407) | -7.2% | | Sales and marketing | $25,390 | $25,617 | $(227) | -0.9% | | General and administrative | $16,871 | $18,568 | $(1,697) | -9.1% | - Net loss decreased by $1.4 million, or 25.7%, to $(4,152) thousand for the three months ended June 30, 2025, compared to $(5,590) thousand in the prior year, driven by increased sales revenue and lower operating expenses122 Comparison of six months ended June 30, 2025 and 2024 For the six months ended June 30, 2025, total revenue increased by 4.7%, primarily from strong business-to-business sales, while direct-to-consumer sales and rental revenue declined. Net loss significantly decreased by 48.8% due to higher sales revenue and reduced operating expenses Revenue by Type (Six Months Ended June 30, in thousands): | Metric | 2025 | 2024 | Change ($) | Change (%) | | :---------------- | :------- | :------- | :--------- | :--------- | | Sales revenue | $147,642 | $137,520 | $10,122 | 7.4% | | Rental revenue | $26,915 | $29,270 | $(2,355) | -8.0% | | Total revenue | $174,557 | $166,790 | $7,767 | 4.7% | Revenue by Region and Category (Six Months Ended June 30, in thousands): | Category | 2025 | 2024 | Change ($) | 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 | $(2,355) | -8.0% | Gross Profit and Margin (Six Months Ended June 30, in thousands): | Metric | 2025 | 2024 | Change ($) | Change (%) | | :-------------------------- | :------- | :------- | :--------- | :--------- | | Total gross profit | $77,713 | $77,108 | $605 | 0.8% | | Total gross margin percentage | 44.5% | 46.2% | -1.7% | | | Sales revenue gross margin | 44.8% | 46.5% | -1.7% | | | Rental revenue gross margin | 43.2% | 44.9% | -1.7% | | Operating Expenses (Six Months Ended June 30, in thousands): | Expense Category | 2025 | 2024 | Change ($) | Change (%) | | :-------------------------- | :------- | :------- | :--------- | :--------- | | Research and development | $9,243 | $12,194 | $(2,951) | -24.2% | | Sales and marketing | $49,147 | $52,553 | $(3,406) | -6.5% | | General and administrative | $33,108 | $35,699 | $(2,591) | -7.3% | - Net loss decreased by $9.8 million, or 48.8%, to $(10,326) thousand for the six months ended June 30, 2025, compared to $(20,168) thousand in the prior year, driven by increased sales revenue and lower operating expenses140 Liquidity and capital resources This section assesses the company's ability to meet financial obligations, detailing cash, financing, and future funding - Cash and cash equivalents were $103.7 million as of June 30, 2025141 - The company received $27.2 million from the issuance of common stock pursuant to a securities purchase agreement and paid $13.0 million for an earnout liability during the six months ended June 30, 2025141153 Net Cash Flows by Activity (Six Months Ended June 30, in thousands): | Activity | 2025 | 2024 | | :-------------------------------- | :------- | :------- | | Net cash used in operating activities | $(12,440) | $1,940 | | Net cash used in investing activities | $(24,611) | $(25,820) | | Net cash provided by financing activities | $23,951 | $84 | - The company believes its current cash, cash equivalents, marketable securities, and expected sales/rentals will be sufficient to meet operating and investing requirements for at least the next 12 months, but future funding may be required143 Non-GAAP financial measures This section provides reconciliations and definitions for non-GAAP financial measures like EBITDA and Adjusted EBITDA EBITDA and Adjusted EBITDA Reconciliation (Six Months Ended June 30, in thousands): | Metric | 2025 | 2024 | | :-------------------------- | :------- | :------- | | Net loss (GAAP) | $(10,326) | $(20,168) | | EBITDA (non-GAAP) | $(2,323) | $(12,451) | | Adjusted EBITDA (non-GAAP) | $2,117 | $(6,384) | - EBITDA is defined as net loss excluding interest income, interest expense, taxes, and depreciation and amortization. Adjusted EBITDA further excludes stock-based compensation, change in fair value of earnout liability, acquisition-related expenses, and restructuring-related charges158 - These non-GAAP measures are used by management for assessing operating performance, business planning, incentivizing personnel, and evaluating acquisitions, but have limitations as analytical tools159160 Item 3. Quantitative and Qualitative Disclosures about Market Risk This section discusses the company's exposure to market risks, primarily foreign currency exchange risk and interest rate fluctuation risk, and the strategies employed to mitigate these risks - The principal market risk is foreign currency exchange risk, as a majority of European sales are denominated in Euros, leading to fluctuations in results of operations and cash flows164 - The company uses foreign exchange forward contracts as cash flow hedges to protect against adverse changes in foreign currency exchange rates, reducing but not entirely eliminating the impact165 - A hypothetical 10% adverse change in exchange rates on foreign denominated sales would have resulted in a $5.3 million decline in revenue for the six months ended June 30, 2025, prior to hedging165 - The company has limited exposure to interest rate fluctuation risk due to the short-term nature of its cash, cash equivalents, and marketable securities166 Item 4. Controls and Procedures This section details the evaluation of the company's disclosure controls and procedures and reports on any changes in internal control over financial reporting - Management, with the CEO and CFO, concluded that disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025167 - No material changes in internal control over financial reporting occurred during the most recent fiscal quarter168 - Controls and procedures, due to inherent limitations and resource constraints, can only provide reasonable assurance of achieving control objectives169 Part II – Other Information This section covers legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and exhibits Item 1. Legal Proceedings This section states that the company is involved in various legal proceedings in the normal course of business but does not anticipate a material adverse effect - The company is party to various legal proceedings and investigations arising in the normal course of business171 - No material adverse effect on the business is anticipated from these proceedings, though litigation can have an adverse impact due to defense and settlement costs, and diversion of management resources171 Item 1A. Risk Factors This section refers to the significant risk factors detailed in the company's Annual Report on Form 10-K, noting no material changes since that filing - Significant factors that could materially adversely affect the business are described in the 'Risk Factors' section of the Annual Report on Form 10-K for the year ended December 31, 2024172 - As of the date of this Quarterly Report on Form 10-Q, there have been no material changes from the previously disclosed risk factors172 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds This section reports that there were no unregistered sales of equity securities and no share repurchases during the three months ended June 30, 2025 - No unregistered sales of equity securities occurred173 - The company did not repurchase any shares of common stock during the three months ended June 30, 2025174 Item 3. Defaults Upon Senior Securities This section states that there were no defaults upon senior securities - No defaults upon senior securities were reported175 Item 4. Mine Safety Disclosures This section indicates that Mine Safety Disclosures are not applicable to the company - Mine Safety Disclosures are not applicable to the company176 Item 5. Other Information This section reports that no directors or Section 16 reporting officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - No directors or Section 16 reporting officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025177 Item 6. Exhibits This section lists the exhibits filed as part of the Quarterly Report on Form 10-Q, including equity incentive plans, employment agreements, certifications, and XBRL documents - Exhibits include Amended and Restated 2023 Equity Incentive Plan, various stock option and restricted stock unit agreements, employment and change of control agreements, and certifications (31.1, 31.2, 32.1, 32.2)182 - Certifications under 18 U.S.C. Section 1350 (Exhibits 32.1 and 32.2) are not deemed filed with the SEC181 SIGNATURES This section contains the official signatures of the company's Chief Executive Officer and Chief Financial Officer, certifying the submission of the Quarterly Report on Form 10-Q - The report was signed on August 8, 2025, by Kevin R.M. Smith, Chief Executive Officer and President, and Michael Bourque, Executive Vice President and Chief Financial Officer186