Core Viewpoint - InMode Ltd. reported a decline in revenues and net income for Q1 2025 compared to Q1 2024, attributed to a challenging macroeconomic environment and weakened consumer demand, while maintaining a strong focus on innovation and capital allocation strategies [4][10]. Financial Performance - Total GAAP revenues for Q1 2025 were $77.9 million, a decrease of 3% from $80.3 million in Q1 2024 [8]. - GAAP net income for Q1 2025 was $18.2 million, or $0.26 per diluted share, down from $23.7 million, or $0.28 per diluted share in Q1 2024 [10]. - Non-GAAP net income for Q1 2025 was $21.4 million, or $0.31 per diluted share, compared to $27.7 million, or $0.32 per diluted share in Q1 2024 [10]. Margins and Expenses - GAAP gross margin for Q1 2025 was 78%, down from 80% in Q1 2024, while non-GAAP gross margin was 79%, also down from 80% [8]. - GAAP operating margin decreased to 20% in Q1 2025 from 23% in Q1 2024, with non-GAAP operating margin dropping to 23% from 27% [9]. Shareholder Returns - The company completed a share repurchase program of 6.95 million shares for a total of $127 million, returning over $412 million to shareholders in the past 12 months, representing approximately 27% of its share capital [5][6]. Cash Position - As of March 31, 2025, InMode had a total cash position of $512.9 million, including cash and cash equivalents, marketable securities, and short-term bank deposits [11]. International Performance - InMode achieved record revenue in Europe during Q1 2025, despite ongoing market headwinds, indicating strong international performance [4]. Future Outlook - Management anticipates continued challenges in the U.S. market, projecting a 4%-5% decline in operating margins and an expected impact of 2%-3% on gross margins due to U.S. tariffs [7]. - The company has revised its 2025 financial outlook, expecting revenues between $395 million and $405 million, with non-GAAP gross margins between 78% and 80% [16].