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Sep 30
Inspire Q3 2025 Earnings Report
Inspire Medical Systems, Inc. announced its third quarter 2025 financial results, reporting a 10% increase in revenue year-over-year and reaffirming full-year revenue guidance while increasing diluted net income per share guidance.
Key Takeaways
Inspire Medical Systems delivered strong third-quarter results, with revenue reaching $224.5 million, a 10% increase from the prior year. The company achieved a gross margin of 85.8% and reported a net income of $9.9 million, with adjusted diluted EPS of $0.38. Inspire is making significant progress with the U.S. launch of its Inspire V system and has reaffirmed its full-year revenue guidance while raising its diluted net income per share guidance.
Revenue for Q3 2025 increased by 10% year-over-year to $224.5 million, driven by strong global performance.
Gross margin improved to 85.8% in Q3 2025, up from 84.1% in the prior year, primarily due to higher sales volume and a favorable Inspire V sales mix.
Net income for the quarter was $9.9 million, with adjusted diluted earnings per share of $0.38.
The company reaffirmed its full-year 2025 revenue guidance of $900 million to $910 million and increased its diluted net income per share guidance to $0.90 to $1.00.
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 is maintaining its full-year 2025 revenue guidance and has increased its diluted net income per share guidance, reflecting confidence in its operational execution and the successful transition to the Inspire V system.
Positive Outlook
- Reaffirming full-year 2025 revenue guidance of $900 million to $910 million, representing 12% to 13% growth over 2024.
- Increasing full-year 2025 diluted net income per share guidance to $0.90 to $1.00, up from the previous guidance of $0.40 to $0.50.
- Maintaining full-year 2025 gross margin guidance of 84% to 86%.
- Strong progress with the U.S. launch of the Inspire V system, with over 75% of centers ready to transition.
- Positive feedback from clinicians regarding the Inspire V system's performance, including a 20% reduction in surgical procedure time.
Challenges Ahead
- Operating income decreased to $9.6 million from $14.3 million in the prior year period.
- Net income decreased to $9.9 million from $18.5 million in the prior year period.
- Diluted net income per share decreased to $0.34 from $0.60 in the prior year period.
- Adjusted EBITDA slightly decreased to $44.0 million from $44.5 million in the prior year period.
- Operating expenses increased by 17% year-over-year, primarily due to patient marketing and general corporate costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income