Inspire Medical (INSP) Q3 2025 Earnings Transcript

Core Insights - The company reported strong third-quarter results with a revenue of $224.5 million, a 10% increase year-over-year, and reaffirmed its full-year revenue guidance of $900 to $910 million, representing a growth of 12% to 13% compared to 2024 [8][15][18] - The Inspire 5 system has shown significant clinical performance improvements, including an 87% inspiratory overlap with patient breathing and a 20% reduction in surgical times [4][5] - The company is experiencing positive feedback from clinical studies, indicating that Inspire therapy can reduce long-term cardiovascular morbidity and mortality compared to CPAP treatment [6][7] Financial Performance - Total revenue for the third quarter was $224.5 million, with U.S. revenue at $214.4 million, a 9% increase from the previous year [15] - Operating income for the quarter was $9.6 million, down from $14.3 million in the prior year, with net income at $9.9 million compared to $18.5 million [16][17] - The company increased its earnings per share guidance to 90¢ to $1, up from a previous range of 40 to 50¢ [8][19] Market and Product Development - The Inspire 5 launch is progressing well, with over 98% of physician training completed and over 75% of centers onboarding SleepSync [7][8] - The company is focusing on expanding its market access and has seen a positive trend in reimbursement, with CMS finalizing an 11% increase for CPT code 64568 [9][10] - The company is also leveraging the growing interest in sleep health driven by GLP-1 treatments, which is bringing more patients into clinics [11][12] Strategic Initiatives - The company is committed to enhancing patient outcomes through innovation and clinical evidence, with ongoing investments in medical education and patient marketing [7][13] - A new advertising campaign has been launched to promote Inspire therapy, featuring notable partnerships to increase awareness [9] - The company is actively working to transition centers from Inspire 4 to Inspire 5, with a focus on training and support for lower-volume centers [40][41] Future Outlook - The company anticipates a revenue growth of 10% to 11% for 2026, influenced by the ongoing adoption of Inspire 5 and the impact of GLP-1 treatments [22][23] - The company is monitoring competitive dynamics and expects to provide formal guidance for 2026 in January [22][58] - The company is also addressing operational efficiencies through territory management and optimizing the ratio of territory managers to field clinical representatives [77][78]