Artisan Partners, an investment management company, released its “Artisan Small Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global equities continue to rally in the third quarter, the period with double-digit YTD gains. Major US indices like Russell 1000®, Russell Midcap®, and Russell 2000® reached record highs in the period. In the quarter, the fund’s Investor Class fund ARTSX returned 8.69%, Advisor Class fund APDSX posted a return of 8.75%, and Institutional ...

Core Insights - Inspire Medical Systems reported strong third quarter results, driven by robust adoption of the Inspire V system and operational discipline [1] - The company experienced significant growth in patient volume and positive clinical feedback, contributing to an expanding customer base both in the U.S. and internationally [1] - CEO Tim Herbert expressed enthusiasm regarding the performance of the Inspire V system and the positive reception of its simplified procedure and comfort settings [1] Financial Performance - Revenue for Q3 was $224.5 million, exceeding analyst estimates of $220.2 million, representing a 10.5% year-on-year growth [6] - EPS (GAAP) was $0.34, significantly beating analyst estimates of -$0.19 [6] - Adjusted EBITDA reached $44.08 million, surpassing analyst expectations of $24.72 million, with a margin of 19.6% [6] - The company reaffirmed its full-year revenue guidance at $905 million and EPS guidance at $0.95, both exceeding analyst estimates [6] Market Dynamics - Sales volumes increased by 13.6% year-on-year, although this was a decrease from the 23.8% growth in the same quarter last year [6] - Market capitalization stands at $2.38 billion [6] - CEO Tim Herbert indicated expectations for accelerated growth in 2026 following the rollout of Inspire V, with formal guidance to be provided in January [6] Strategic Initiatives - The company is focusing on transitioning high-volume centers to Inspire V by year-end, while some centers may continue using Inspire IV for specific reasons [6] - Inspire Medical Systems is implementing targeted initiatives to engage ENT surgeons and expand provider capacity, with early results anticipated to be more evident in 2026 [6] - The management team is monitoring competitive dynamics closely, noting that competition is still in early stages and has not significantly impacted growth [6]

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]

Core Insights - Inspire Medical Systems Inc reported better-than-expected third-quarter financial results, with earnings of 38 cents per share, surpassing the analyst consensus estimate of a loss of 19 cents per share [1] - The company also reported quarterly sales of $224.501 million, exceeding the analyst consensus estimate of $220.467 million [1] Financial Guidance - Inspire Medical Systems raised its FY2025 GAAP EPS guidance from a range of $0.40-$0.50 to $0.90-$1.00, while affirming sales guidance of $900 million-$910 million [2] Management Commentary - Tim Herbert, Chairman and CEO, highlighted the productive third quarter focused on the transition to the Inspire V system and presented clinical evidence of enhanced performance at recent industry meetings [3] Stock Performance - Following the earnings announcement, Inspire Medical shares increased by 17%, trading at $86.46 [3] Analyst Reactions - Wells Fargo upgraded Inspire Medical Systems from Equal-Weight to Overweight, lowering the price target from $101 to $90 [6] - JP Morgan maintained a Neutral rating, cutting the price target from $110 to $82 [6] - Truist Securities reiterated a Hold rating, reducing the price target from $90 to $84 [6] - RBC Capital maintained an Outperform rating, lowering the price target from $150 to $125 [6] - Piper Sandler reiterated an Overweight rating, reducing the price target from $150 to $135 [6]

MINNEAPOLIS, Nov. 03, 2025 (GLOBE NEWSWIRE) -- Inspire Medical Systems, Inc. (NYSE: INSP) (Inspire, or the company), a medical technology company focused on the development and commercialization of innovative, minimally invasive solutions for patients with obstructive sleep apnea, today reported financial results for the quarter ended September 30, 2025. Recent Business Highlights Generated revenue of $224.5 million in the third quarter of 2025, a 10% increase over the same quarter last yearAchieved gross m ...

Core Insights - Inspire Medical Systems, Inc. (NYSE:INSP) is recognized as one of the top medical device stocks to invest in, particularly due to its recent clinical data showcasing the effectiveness of its Inspire V system for treating obstructive sleep apnea [1][3] Group 1: Clinical Data and Performance - On October 10, Inspire Medical Systems published clinical data from a restricted U.S. market release at ten medical centers and a clinical investigation in Singapore [1] - The Singapore study revealed a 20% reduction in surgical times compared to the previous Inspire IV system, with all procedures successfully completed for 44 patients [2] - The Inspire V system demonstrated superior performance in respiratory sensing, achieving an inspiratory phase overlap percentage of 87.1% compared to 79.4% for its predecessor [2]

Core Insights - Inspire Medical Systems (INSP) has presented promising clinical data for its Inspire V system, demonstrating strong safety, enhanced respiratory sensing, and improved patient adherence, which are crucial for treating obstructive sleep apnea through minimally invasive neurostimulation [1][4][8] Company Performance - Following the announcement of the Inspire V system data, INSP's shares declined by 6.2% on the closing day, with a year-to-date drop of 59.5%, contrasting with the industry's growth of 27.2% and the S&P 500's gain of 12.2% [3] - Despite the stock decline, the positive study data is expected to facilitate faster adoption and stronger revenue growth, with improved safety and higher patient adherence likely to drive higher implant volumes [4][5] Clinical Study Findings - The Inspire V system trials indicated a 20% reduction in surgical times and superior Apnea Hypopnea Index (AHI) improvement compared to the previous Inspire IV model [8][9] - In a clinical trial in Singapore involving 44 patients, the Inspire V system achieved a primary endpoint of 87.1% inspiratory phase overlap, outperforming Inspire IV's 79.4% [10] - At a mean follow-up of 246 days, patient adherence averaged 5.5 hours per night, with AHI improving from 34.4 to 8.3 events per hour [11] - A limited U.S. market release involved 101 patients, all of whom successfully completed device implantations with no serious adverse events, and showed an average nightly usage of 6.8 hours [12] Market Outlook - The global neurostimulation devices market was valued at approximately USD 5.6 billion in 2022 and is projected to reach USD 14.8 billion by 2030, growing at a CAGR of 12.8% from 2023 to 2030 [14] - Key drivers for market growth include an aging population, technological advancements, and increasing demand for therapies addressing chronic diseases [15]

Core Insights - Inspire Medical Systems has released clinical outcomes data for its Inspire V system, showcasing its effectiveness for patients with obstructive sleep apnea (OSA) [1][2][3] - The data will be presented at the AAO-HNS and ISSS meetings in Indianapolis, highlighting the system's advancements in safety, efficacy, and patient adherence [1][2] Clinical Data Summary - The Inspire V system trial in Singapore involved 44 patients, showing a 20% reduction in surgical times and a 100% success rate for procedures [2][3] - The primary endpoint, inspiratory phase overlap percentage (IPOP), was 87.1% for Inspire V compared to 79.4% for Inspire IV, indicating superior performance [2] - Patient adherence averaged 5.5±1.7 hours/night, with a significant reduction in the Apnea Hypopnea Index (AHI) from 34.4 events/hour at baseline to 8.3 events/hour at six months [2] Market Release Evaluation - In the U.S., a limited market release involved 101 patients, all of whom successfully used the Inspire therapy with no serious adverse events [3] - At the 60-day check, patients averaged 6.8 hours/night of therapy usage, with a median AHI reduction from 30 to 4.5 events/hour [3] - Surgeons reported an average surgical implant time of 34.5 minutes for Inspire V, with increased implant volume due to shorter procedure times [4] Company Overview - Inspire Medical Systems focuses on innovative, minimally invasive solutions for OSA and is the first company to receive FDA, EU MDR, and PDMA approvals for its neurostimulation technology [8]

Core Viewpoint - The Schall Law Firm is investigating Inspire Medical Systems, Inc. for potential violations of securities laws following a significant drop in share price due to disappointing earnings and operational delays [1][2]. Group 1: Company Performance - Inspire Medical Systems reported Q2 earnings on August 4, 2025, which included a lowered full-year revenue guidance [2]. - The company disclosed delays in the rollout of its "Inspire V" system, as treatment centers postponed adoption due to billing issues with Medicare [2]. - Following the announcement, shares of Inspire fell by almost 40.6% in intraday trading on August 5, 2025 [2]. Group 2: Legal Investigation - The investigation by the Schall Law Firm focuses on whether Inspire issued false or misleading statements or failed to disclose important information to investors [2]. - The firm is representing investors who may have suffered losses and is encouraging them to participate in the investigation [3].

Core Insights - Inspire Medical Systems reported second-quarter earnings of 45 cents per share, exceeding analyst consensus estimates of 21 cents per share, with quarterly sales of $217.086 million, also surpassing the consensus estimate of $214.480 million [1][2] Financial Guidance - The company lowered its FY2025 GAAP EPS guidance from a range of $2.20-$2.30 to $0.40-$0.50 and reduced sales guidance from $940 million-$955 million to $900 million-$910 million [2] Product Launch and Market Reaction - The full launch of the FDA-cleared Inspire V system in the U.S. is highlighted as a significant milestone, with positive feedback from surgeons and patients regarding the simplified procedure and patient outcomes [3] - Following the earnings announcement, Inspire Medical Systems shares fell by 40.6%, trading at $77.14 [3] Analyst Ratings and Price Targets - Multiple analysts adjusted their price targets for Inspire Medical Systems post-earnings, with JP Morgan downgrading from Overweight to Neutral and lowering the target from $195 to $110, while Stifel maintained a Hold rating with a target reduction from $175 to $140 [4][6] - Piper Sandler maintained an Overweight rating but reduced the price target from $233 to $150, and RBC Capital kept an Outperform rating with a target cut from $215 to $180 [6] - UBS maintained a Buy rating with a target decrease from $270 to $230, while Wells Fargo lowered its Equal-Weight rating target from $174 to $101 [6] - Lake Street maintained a Buy rating with a target reduction from $270 to $150, and Truist Securities downgraded from Buy to Hold with a target cut from $190 to $125 [6]