Inspire(US:INSP)2025-11-03 21:07Revenue and Income - Revenue for Q3 2025 reached $224.5 million, a 10.5% increase from $203.2 million in Q3 2024[20] - Net income for Q3 2025 was $9.9 million, compared to $18.5 million in Q3 2024, indicating a decrease of 46.4%[20] - Revenue for the three months ended September 30, 2025, was $224.5 million, a 10.4% increase from $203.2 million in the same period of 2024[130] - Revenue for the nine months ended September 30, 2025, increased by $79.8 million, or 14.2%, to $642.9 million compared to $563.1 million for the same period in 2024[188] - Revenue generated in the U.S. for the nine months ended September 30, 2025, was $615.2 million, an increase of $75.7 million, or 14.0%, compared to the same period in 2024[189] Expenses - Operating income for Q3 2025 was $9.6 million, down from $14.3 million in Q3 2024[20] - Selling, general and administrative expenses increased to $462.7 million for the nine months ended September 30, 2025, compared to $388.1 million in 2024[20] - Research and development expenses for the three months ended September 30, 2025, were $24.2 million, a decrease of 7.2% from $26.1 million in the same period of 2024[130] - Selling, general and administrative expenses rose by $28.5 million, or 21.8%, to $158.9 million for the three months ended September 30, 2025, driven by increased marketing and compensation costs[185] - Research and development expenses decreased by $5.6 million, or 6.6%, to $78.2 million for the nine months ended September 30, 2025, primarily due to a reduction in ongoing R&D costs[193] Assets and Liabilities - Total current assets decreased to $586.5 million as of September 30, 2025, from $630.8 million at December 31, 2024[17] - Total liabilities increased to $141.3 million as of September 30, 2025, compared to $118.7 million at December 31, 2024[17] - Stockholders' equity decreased to $666.5 million as of September 30, 2025, from $689.7 million at December 31, 2024[17] - Cash, cash equivalents, and available-for-sale debt securities totaled $410.9 million as of September 30, 2025, a decrease of $105.6 million from $516.5 million as of December 31, 2024[200] Comprehensive Income - The company reported a total comprehensive income of $10.2 million for Q3 2025, down from $20.3 million in Q3 2024[20] - The company recorded a net income of $9.3 million for the nine months ended September 30, 2025, compared to $18.3 million for the same period in 2024, indicating a decrease in profitability[156] Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $78.2 million, down from $83.8 million in the same period of 2024[20] - The company has invested significantly in research and development, focusing on continuous improvements to the Inspire therapy and future generations of Inspire systems[157] - The company expects R&D expenses to increase in the future as it develops next-generation versions of its products and expands clinical studies[172] Market and Sales - The company’s proprietary Inspire system is the first FDA-approved neurostimulation technology for obstructive sleep apnea, highlighting its market leadership[30] - 95.7% of the company's revenue for the nine months ended September 30, 2025, was derived from the U.S., with only 4.3% from outside the U.S.[152] - The Inspire V system was fully launched in the U.S. in May 2025, following FDA approval in August 2024[157] - The company anticipates that some patients and physicians may delay Inspire therapy until the Inspire V system is available at their locations, potentially impacting revenue until early 2026[158] Cash Flow - Net cash provided by operating activities was $64.5 million for the nine months ended September 30, 2025, compared to $61.1 million for the same period in 2024[209] - Net cash used in financing activities was $135.1 million for the nine months ended September 30, 2025, mainly due to share repurchases of $125.0 million[214] Shareholder Actions - The company authorized a share repurchase program of up to $150.0 million in August 2024, which was set to expire in August 2026[102] - Under the accelerated share repurchase agreement, the company repurchased a total of 409,043 shares at an average price of $190.29[104] Economic Environment - The company faces macroeconomic challenges, including increased inflation, higher shipping costs, and regulatory changes, which may lead customers to decrease or delay orders[164]