Summary of InMode (INMD) FY Conference Call - August 12, 2025 Company Overview - InMode is a leading player in the global energy-based aesthetic treatments market [1] Key Financial Performance - Q2 performance was described as "okay," not as strong as hoped, but not a terrible quarter [3] - There was a decline in the U.S. market, offset by record performance in Europe and growth in Asia Pacific [4] - Continued challenges include low patient demand and higher interest rates affecting capital equipment investments [5] - Q2 guidance was lowered by $5 million due to underperformance in both Q1 and Q2 [7] Market Dynamics - The revenue mix has shifted to approximately 50% from the U.S. and 50% from outside the U.S., compared to a previous 65% U.S. and 35% OUS [15] - The U.S. market is seen as more profitable, and recovery in consumer confidence is anticipated to improve this mix [15] - The entire energy-based device industry is facing similar challenges, with declines in sales reported across competitors [17] Product Development and Trends - There is an increasing trend in non-invasive platform treatments, particularly combination treatments like Morpheus8 with CO2 laser procedures [10] - Demand for new platforms like Optimus Max and Ignite has been weaker than expected due to economic conditions [19] - A new wellness platform for erectile dysfunction is set for a full launch soon, with current sales based on FDA clearance for improved blood circulation [23] Research and Development Strategy - InMode plans to continue introducing new products in both aesthetic and wellness areas, focusing on minimally invasive and non-invasive procedures [26] - The company is exploring the development of products targeting cheaper, non-invasive procedures [26] Management and Organizational Changes - Changes in the management structure were made to adapt to accelerated growth, including promotions and new hires in various regions [28] - The sales team is being reorganized to create specialties for different product lines [31] Capital Allocation Strategy - InMode has repurchased 27% of the company for approximately $400 million and is considering further buybacks, dividends, and M&A opportunities [36][37] - The company is open to various cash allocation strategies to support future growth [37] Tariff Impact - The company estimates an average tariff impact of 10%, which could affect gross margins by 2-3% annually [39] Conclusion - InMode is navigating a challenging market environment but remains focused on product innovation, strategic management changes, and capital allocation to drive future growth [1][28][37]