Inogen Stock Dips Despite Q3 Earnings Beat, Revenues Up Y/Y

Core Insights - Inogen, Inc. reported an adjusted loss per share of 2 cents for Q3 2025, an improvement from the adjusted loss of 11 cents in the same period last year and better than the Zacks Consensus Estimate of a 22 cents loss per share [1][6] - Total revenues for the third quarter were $92.4 million, reflecting a 4% year-over-year increase, although it fell short of the Zacks Consensus Estimate by 0.1% [2][6] Revenue Analysis - The revenue growth was primarily driven by increased demand from both international and domestic business-to-business customers, despite declines in direct-to-consumer and rental revenue [3][6] - Rental revenues decreased by 4.4% year-over-year to $13.3 million, attributed to lower average billing rates due to a shift towards private payers [4][6] - Sales revenues increased by 5.6% year-over-year to $79.1 million [7] Regional Performance - Domestic business-to-business sales reached $24.9 million, up 6.6% year-over-year, driven by demand from new customers and resellers [8] - International business-to-business sales amounted to $38.4 million, marking an 18.8% increase year-over-year [8] - Domestic direct-to-consumer sales fell by 17.9% year-over-year to $15.8 million [9] Profitability Metrics - Adjusted gross profit for the quarter was $44.3 million, a decline of 0.7% from the previous year, with the adjusted gross margin contracting by 230 basis points to 47.9% [10] - Adjusted operating expenses decreased by 4.8% year-over-year to $43.6 million, with a notable increase in research and development expenses by 37.6% to $4.8 million [11] Financial Position - At the end of Q3 2025, Inogen had cash and cash equivalents of $106.5 million, up from $103.7 million at the end of Q2 2025, and no debt on its balance sheet [12] - Cumulative net cash used in operating activities was $10.3 million, compared to a net cash provided of $8.9 million a year ago [12] Future Guidance - For Q4 2025, Inogen expects revenues between $87 million and $90 million, indicating approximately 10% growth at the midpoint compared to Q4 2024 [13] - For the full year 2025, the revenue outlook is set between $354 million and $357 million, reflecting about 6% growth at the midpoint from 2024 [14] Strategic Developments - Inogen launched the Voxi 5, a new stationary oxygen concentrator, which has received positive early market reception, particularly in the B2B channel [16][17] - The company also initiated a limited U.S. market release of Simeox, a bronchial-decongestion solution, while conducting clinical trials in Europe and China [18]