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Jun 30, 2025
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.
Revenue by Geographic Location
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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