Inspire's Alleged Fraud NEW YORK--(BUSINESS WIRE)--Today, prominent investor rights law firm Bernstein Litowitz Berger & Grossmann LLP ("BLB&G†) filed a class action in the U.S. District Court for the Southern District of New York alleging violations of the federal securities laws by Inspire Medical Systems, Inc. ("Inspire†or the "Company†) and certain of the Company's current senior executives (collectively, "Defendants†). The action is brought on behalf of all investors who purchased or otherwise ...

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. (INSP) reported an earnings per share (EPS) of 45 cents for Q2 2025, reflecting a year-over-year increase of 40.6% and exceeding the Zacks Consensus Estimate by 104.6% [1][10] - The company's revenues reached $217.1 million in Q2 2025, marking a 10.8% increase year-over-year and surpassing the Zacks Consensus Estimate by 0.9% [2][10] Revenue Analysis - U.S. revenues amounted to $207.2 million, up 10.3% from the same quarter last year, while revenues from all other countries totaled $9.9 million, representing a 23% year-over-year increase [4][5] - The overall revenue growth was attributed to increased market penetration and heightened awareness among physicians and patients regarding the Inspire system, although this was partially offset by capacity constraints among ENT surgeons and delays in therapy adoption by some U.S. patients and physicians [3][10] Margin and Expense Overview - Gross profit for Q2 2025 increased by 9.9% year-over-year to $182.4 million, but the gross margin contracted by 74 basis points to 84% [6][10] - Selling, general, and administrative expenses rose by 20.8% year-over-year to $159.5 million, while research and development expenses decreased by 9.2% to $26.2 million [6] Financial Position - As of the end of Q2 2025, Inspire Medical had cash and cash equivalents and short-term investments totaling $300.9 million, down from $369.2 million at the end of Q1 2025 [8] - The cumulative net cash used in operating activities was $4 million, compared to net cash provided of $8.8 million in the previous year [8] Outlook and Guidance - The company has revised its revenue outlook for 2025 to a range of $900 million to $910 million, down from a previous estimate of $940 million to $955 million [11] - EPS guidance for 2025 has also been lowered to between 40 cents and 50 cents, significantly down from the prior forecast of $2.20 to $2.30 [12] Market Reaction - Following the earnings report, shares of Inspire Medical experienced a decline of nearly 24.9% in pre-market trading [3]