Inspire Medical Systems, Inc. Announces Second Quarter 2025 Financial Results and Updates 2025 Outlook

Core Insights - Inspire Medical Systems reported an 11% increase in revenue for Q2 2025, totaling $217.1 million compared to $195.9 million in Q2 2024, with U.S. revenue growing by 10% to $207.2 million [4][9] - The company is facing operational challenges with the slower-than-expected launch of the Inspire V system, which may impact financial results for the year, although management believes these headwinds are temporary [3][12] - Inspire anticipates full-year 2025 revenue guidance of $900 million to $910 million, a decrease from previous guidance of $940 million to $955 million, reflecting a growth of 12% to 13% over 2024 [12][13] Recent Business Highlights - The full launch of the FDA-cleared Inspire V system in the U.S. is seen as a significant milestone, with positive feedback from surgeons and patients [3] - The company is committed to addressing operational challenges and remains focused on delivering strong patient outcomes [3] Financial Performance - Gross margin for Q2 2025 was 84.0%, slightly down from 84.8% in Q2 2024, primarily due to a $2.1 million charge related to excess inventory [5] - Operating expenses increased by 15% to $185.7 million, driven by investments in U.S. sales expansion and marketing, along with one-time charges totaling $12.9 million [6] - The company reported an operating loss of $3.3 million for Q2 2025, a significant decline from an operating income of $5.1 million in the prior year [7] Net Income and Earnings - Inspire recorded a net loss of $3.6 million in Q2 2025, compared to a net income of $9.8 million in Q2 2024, with a diluted loss per share of $0.12 [8][9] - Adjusted EBITDA for Q2 2025 was $44.1 million, up from $38.7 million in the same period last year [8] Cash Position - As of June 30, 2025, the company had cash, cash equivalents, and investments totaling $410.7 million, down from $516.5 million at the end of 2024 [10] Executive Changes - Randy Ban, Executive Vice President of Patient Access and Therapy Development, announced his retirement effective January 30, 2026, after significantly contributing to the company's growth [11] Guidance - The company maintains its gross margin guidance for 2025 at 84% to 86% despite the revised revenue outlook [12]