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Jun 30
Inspire Q2 2025 Earnings Report
Inspire Medical Systems, Inc. announced its second quarter 2025 financial results, reporting a revenue increase of 11% year-over-year, but also a net loss and a decrease in operating income.
Key Takeaways
Inspire Medical Systems reported second quarter 2025 revenue of $217.1 million, an 11% increase from the prior year. Despite the revenue growth, the company experienced a net loss of $3.6 million and an operating loss of $3.3 million, primarily due to increased operating expenses and a non-cash impairment. Adjusted net income was $13.3 million, and adjusted diluted EPS was $0.45.
Revenue for Q2 2025 reached $217.1 million, marking an 11% increase compared to the same period last year.
The company reported a net loss of $3.6 million and an operating loss of $3.3 million for the quarter.
Adjusted net income was $13.3 million, and adjusted diluted earnings per share stood at $0.45.
The full launch of the Inspire V neurostimulation system in the U.S. was initiated, though its commercial launch is progressing slower than anticipated.
Inspire
Inspire
Inspire Revenue by Geographic Location
Revenue by Geographic Location
United States Revenue
CapyFin.comAll Other Countries Revenue
CapyFin.com Forward Guidance
Inspire Medical Systems updated its full-year 2025 revenue guidance to a range of $900 million to $910 million, a reduction from previous guidance, and also lowered its diluted net income per share guidance to $0.40 to $0.50. The company maintains its gross margin guidance.
Positive Outlook
- Full year 2025 revenue guidance still represents growth of 12% to 13% over full year 2024 revenue.
- The company is maintaining its full year 2025 gross margin guidance of 84% to 86%.
- The Inspire V system is expected to be a growth engine for the company.
- Management believes the operational headwinds are temporary and actions are underway to address them.
- The company remains committed to serving patients with OSA and driving profitable growth.
Challenges Ahead
- Full year 2025 revenue guidance was lowered to $900 million - $910 million from the prior range of $940 million - $955 million.
- Diluted net income per share guidance for full year 2025 was significantly reduced to $0.40 - $0.50 from the prior guidance of $2.20 - $2.30 per share.
- The U.S. commercial launch of the Inspire V system is progressing slower than expected.
- The timeline to complete the full transition to Inspire V has been pushed forward, impacting financial results for the year.
- The company anticipates continued investments in the expansion of the U.S. sales organization and patient marketing expenses.
Revenue & Expenses
Visualization of income flow from segment revenue to net income