Core Insights - Inspire Medical Systems, Inc. (INSP) reported adjusted earnings per share (EPS) of 38 cents for Q3 2025, a decline of 36.7% year over year, surpassing the Zacks Consensus Estimate of a loss of 15 cents [1][10] Revenue Performance - INSP's revenues reached $224.5 million in Q3 2025, reflecting a year-over-year increase of 10.5% and exceeding the Zacks Consensus Estimate by 1.6% [2][3] - U.S. revenues amounted to $214.4 million, up 9.5% from the previous year, while revenues from all other countries totaled $10.1 million, marking a 37.3% increase year over year [4][5] Growth Drivers and Challenges - Revenue growth was primarily driven by increased market penetration and heightened awareness of the Inspire system among physicians and patients [3] - Challenges included capacity constraints among ENT surgeons and delays from some U.S. patients and physicians in starting Inspire therapy until the availability of Inspire V or while trialing GLP-1 medications [3] Margin Analysis - Gross profit increased by 12.8% year over year to $192.7 million, with gross margin expanding by 179 basis points to 85.8% [6] - Selling, general, and administrative expenses rose by 21.8% to $158.9 million, while research and development expenses decreased by 7.2% to $24.2 million [6] - Operating profit fell to $9.6 million, a decline of 32.6% from the previous year, with the operating margin contracting by 275 basis points to 4.3% [7] Financial Position - As of the end of Q3 2025, Inspire Medical had cash and cash equivalents and short-term investments totaling $322.6 million, an increase from $300.9 million at the end of Q2 2025 [8] - Cumulative net cash provided by operating activities was $64.5 million, compared to $61.1 million a year ago [8] Outlook - Inspire Medical raised its EPS guidance for 2025 to between 90 cents and $1.00, up from a previous outlook of 40 cents to 50 cents, while maintaining its revenue outlook of $900 million to $910 million [10][11] - The company continues to make progress with the U.S. launch of the Inspire V system, with over 75% of centers ready for the transition [13]