Core Insights - Inspire Medical Systems, Inc. (INSP) reported fourth-quarter 2025 adjusted earnings per share (EPS) of $1.65, reflecting a 43.5% year-over-year increase and surpassing the Zacks Consensus Estimate by 139.1% [1] Revenue Performance - INSP's revenues for the fourth quarter reached $269.1 million, marking a 10.5% year-over-year growth, aligning with the Zacks Consensus Estimate [2] - Revenue growth was attributed to expansion at existing centers and the addition of new centers [2] - As of December 31, 2025, INSP operated 295 U.S. sales territories and employed 275 field clinical representatives, compared to 335 territories and 230 representatives at the end of 2024 [2] Margin Analysis - Gross profit for the fourth quarter increased by 14.4% year over year to $233 million, with gross margin expanding by 160 basis points to 86.6% [3] - Selling, general and administrative expenses rose by 14.4% year over year to $161.9 million, while research and development expenses decreased by 17.8% to $24.9 million [3] - Operating profit totaled $46.1 million, down 44.6% from the previous year, but operating margin improved by nearly 380 basis points to 17.1% [4] Financial Position - At the end of the fourth quarter, Inspire Medical had cash and cash equivalents and short-term investments totaling $404.6 million, up from $322.6 million at the end of the third quarter [5] - Cumulative net cash provided by operating activities was $117 million, compared to $130.2 million a year ago [5] Outlook - Inspire Medical revised its revenue guidance for 2026 to a range of $950 million to $1 billion, representing a growth of 4-10% from 2025 levels, down from a previous estimate of $1,003 million to $1,013 million [6] - The adjusted EPS outlook for 2026 is projected to be between $1.85 and $2.35, with the Zacks Consensus Estimate at $1.72 [6] Market Reaction - Following the lowered revenue outlook for 2026, INSP's shares fell by 8.7% in after-hours trading [10] - Over the past six months, INSP's shares have declined by 21.9%, while the industry has seen a 33.2% decline, and the S&P 500 Index has gained 9.6% [10] Product Development - The transition to the Inspire V model is expected to be completed by late 2026, with over 90% of centers having already implanted the device [8] - The recent FDA approval for 3 Tesla MRI compatibility is anticipated to further boost demand for Inspire therapy [8] - Inspire Medical is also working on establishing a new CPT code for Inspire V, which may take at least two years to implement [11]

Inspire Medical Systems, Inc. February 2026 NYSE: INSP This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts are forward-looking statements, including, without limitation, statements regarding potential impacts to our business associated with Inspire V reimbursement, our plans to obtain a long-term solution that would support appropriate reimbursement for Inspire V, and our ex ...

Core Insights - Inspire Medical Systems reported strong financial results for Q4 and full year 2025, with a revenue increase of 14% year-over-year to $912 million, driven by growth at existing centers and new center additions [4][5][6]. Financial Performance - Q4 2025 revenue grew by 12% to $269.1 million compared to Q4 2024, with a gross margin increase of 160 basis points to 86.6% [5][6]. - Full year 2025 net income per diluted share was $4.89, with adjusted net income per diluted share at $2.42 [5][6]. - Operating cash flow for Q4 was $52.5 million, totaling $117 million for the full year [5][6]. Operational Highlights - The Inspire V launch showed positive patient outcomes and improvements in therapy delivery, despite challenges in the reimbursement landscape [2]. - The company received clarification on coding for the Inspire V procedure, transitioning to CPT code 64582, which will impact physician reimbursement rates [2][8]. Future Outlook - Inspire Medical Systems revised its revenue outlook for 2026 to a range of $950 million to $1 billion, reflecting expected annual growth of 4% to 10% [8][9]. - The company anticipates an adjusted operating margin of 6% to 8% and net income per diluted share between $1.23 and $1.81 for 2026 [9].

Core Viewpoint - Inspire Medical Systems, Inc. is under investigation by Kahn Swick & Foti, LLC due to potential breaches of fiduciary duties and failure to disclose material information related to the launch of its Inspire V device [1][3]. Group 1: Company Issues - In August 2025, Inspire Medical Systems disclosed that the launch of its Inspire V device would face an "elongated timeframe" due to undisclosed issues, including incomplete training and onboarding at many centers, delayed software updates, and excess inventory leading to poor demand [2]. - As a result of these issues, the company significantly reduced its 2025 earnings guidance by over 80%, from a range of $2.20 to $2.30 per share to a new range of $0.40 to $0.50 per share [2]. Group 2: Legal Actions - Following the disclosure of these issues, Inspire Medical Systems and certain executives were sued in a securities class action lawsuit for failing to disclose material information, which is still ongoing [3]. - KSF's investigation is focused on whether the company's officers and/or directors breached their fiduciary duties to shareholders or violated state or federal laws [3].

Core Viewpoint - The Law Offices of Frank R. Cruz is investigating potential claims against the board of directors of Inspire Medical Systems, Inc. regarding possible breaches of fiduciary duties to shareholders [1] Group 1 - Inspire Medical Systems disclosed on August 4, 2025, that the launch of its new sleep apnea device, the Inspire V, is facing an "elongated timeframe" due to several issues [1]

Core Insights - Inspire Medical Systems (INSP) is positioned for growth due to a significant product transition, with strong clinical traction for Inspire V, clearer reimbursement pathways, and disciplined cost management, despite facing short-term pressures from inventory conversion and competition [1][8]. Company Overview - Inspire Medical focuses on innovative, minimally invasive solutions for obstructive sleep apnea, with a market capitalization of $2.74 billion. The company anticipates a 39.1% earnings decline for Q4 2025 but expects a return to growth in 2026 [3]. Financial Performance - The company has consistently surpassed earnings estimates over the past four quarters, achieving an average surprise of 164.19% [4]. Positive Factors Driving Prospects - The adoption of GLP-1 therapies is increasing patient referrals to sleep clinics, broadening the patient funnel for Inspire Medical [5]. - Operational execution has been solid, with earnings outperformance driven by margin improvement and disciplined expense management, alongside healthy cash flow and share buybacks [6]. - The rollout of Inspire V has reached over 75% of implanting centers, with physician training and contracting nearing completion, indicating strong adoption momentum [9]. - Favorable reimbursement changes, including an 11% increase in physician fees starting January 2026, are expected to enhance the economic viability of Inspire systems [10][11]. Key Challenges - Short-term uncertainty exists due to GLP-1 trialing, which may delay surgical interventions and impact volume growth [12]. - Operating expenses are rising faster than revenues, creating margin pressure, alongside early signs of competitive activity [13]. - Future margin expansion will depend on balancing growth investments with efficiency improvements as revenue growth stabilizes [14]. Estimate Trend - The Zacks Consensus Estimate for Inspire Medical's earnings is $1.60 per share for 2025, with projected revenues of $269 million and a loss per share of 70 cents for Q4 2025 [15].

Core Viewpoint - Inspire Medical Systems, Inc. is facing a federal securities class action due to allegations of misleading statements regarding the launch and demand for its Inspire V device, with a deadline for investors to seek lead plaintiff status set for January 5, 2026 [1][3]. Group 1: Allegations and Legal Action - The complaint claims that Inspire Medical and its executives violated federal securities laws by making false or misleading statements about the market demand for the Inspire V device and the company's readiness for its launch [3]. - The law firm Faruqi & Faruqi is investigating potential claims against Inspire Medical and encourages anyone with relevant information to come forward [7]. Group 2: Launch Issues and Financial Impact - On August 4, 2025, Inspire Medical announced significant delays in the launch of the Inspire V device, citing incomplete training and onboarding at treatment centers as major factors [4]. - The company also faced billing and reimbursement challenges, as necessary software updates for claims processing were not implemented until July 1, 2025, preventing implanting centers from billing for procedures [4]. - Inspire reported weak demand and excess inventory for the Inspire V, leading to a drastic cut in its 2025 earnings guidance by over 80% [5]. - Following these announcements, Inspire's stock price plummeted by more than 32%, from $129.95 per share to $87.91 per share, resulting in a loss of approximately $1.2 billion in market capitalization [5].

Core Viewpoint - A class action lawsuit has been filed against Inspire Medical Systems, Inc. for alleged misleading statements regarding the launch of its Inspire V product, which reportedly faced significant challenges and poor demand [2][7]. Allegation Details - The lawsuit claims that during the class period, Inspire Medical made false statements about the successful launch of Inspire V, while in reality, the launch was hindered by poor demand and excess inventory at provider centers [7]. - It is alleged that many centers did not complete necessary training and onboarding before the product's launch, which contributed to the poor rollout [7]. - The company admitted that software updates for billing procedures were delayed, impacting the ability of implanting centers to process claims [7]. Financial Impact - Following the revelation of these issues on August 4, 2025, Inspire Medical reduced its 2025 earnings guidance by over 80%, leading to a more than 32% decline in the company's stock price [7].

Core Viewpoint - A securities class action lawsuit has been filed against Inspire Medical Systems, Inc. (NYSE: INSP) for allegedly misleading investors about operational failures related to the launch of its Inspire V device for obstructive sleep apnea [1][3]. Summary by Relevant Sections Lawsuit Details - The lawsuit is pending in the U.S. District Court for the District of Minnesota and targets investors who purchased INSP securities between August 6, 2024, and August 4, 2025 [2][3]. - The Lead Plaintiff Deadline is set for January 5, 2026, urging affected investors to contact legal representatives [3]. Allegations of Misleading Information - Inspire Medical allegedly assured investors of its "operational readiness" for the Inspire V launch, claiming it was ready for a full commercial rollout, which the lawsuit argues concealed significant operational failures [3][4]. - The undisclosed operational issues included: - **Medicare & Billing Readiness**: Necessary software updates for Medicare claims processing were not effective until July 1, 2025, preventing implanting centers from billing for procedures, which stalled early adoption and revenue generation [4]. - **Excess Inventory**: A significant surplus of the older Inspire IV device impacted demand for the new Inspire V, leading to a need for inventory reduction [4]. - **Training & Onboarding**: Many treatment centers had not completed essential training for the new device, contributing to operational delays [4]. Impact on Business and Stock - The alleged operational failures resulted in a drastic cut to Inspire's 2025 earnings per share (EPS) guidance by over 80%, leading to a stock price drop of $42.04 per share, equating to a 32.4% decline in value [4]. Investigation Focus - Hagens Berman's investigation emphasizes the concealment of critical issues, particularly the Medicare claims software failure and the inventory glut of the prior device, suggesting that management prioritized a narrative of seamless transition over operational reality [5]. Legal Options for Investors - Investors who purchased INSP securities during the class period may have legal options and are encouraged to contact Hagens Berman for further information [5].

Core Viewpoint - A securities class action lawsuit has been filed against Inspire Medical Systems, Inc. (NYSE: INSP) for allegedly misleading investors about operational failures related to the launch of its Inspire V device for obstructive sleep apnea [1][3]. Group 1: Allegations and Impact - The lawsuit claims that Inspire Medical assured investors of its "operational readiness" for the Inspire V launch, which was later revealed to be false due to undisclosed operational issues [3][4]. - Key operational failures included delays in Medicare claims processing software updates, which did not take effect until July 1, 2025, preventing implanting centers from billing for procedures [4]. - An excess inventory of the older Inspire IV device created a channel glut, negatively impacting demand for the new Inspire V product and necessitating an inventory "burn down" [4]. - Many treatment centers had not completed essential training for the new device, contributing to the launch's failure [4]. - As a result of these issues, Inspire Medical slashed its 2025 EPS guidance by over 80%, leading to a $42.04 per share drop and a 32.4% decline in stock value [4]. Group 2: Legal Actions and Investor Guidance - Investors who purchased Inspire Medical securities between August 6, 2024, and August 4, 2025, are encouraged to contact Hagens Berman to discuss their legal rights before the January 5, 2026, Lead Plaintiff Deadline [2][3]. - Hagens Berman is focusing on the alleged concealment of critical operational failures and is inviting investors to share information that may assist in the investigation [5].