We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Inspire Medical posted Q2 EPS of 45 cents, up 40.6% year over year and 104.6% above the consensus estimate.
INSP's revenues rose 10.8% to $217.1 million, driven by stronger market reach and product awareness.
INSP's gross margin fell to 84% and 2025 EPS forecast was lowered to between 40 and 50 cents.
Inspire Medical Systems, Inc. (INSP - Free Report) delivered an earnings per share (EPS) of 45 cents in second-quarter 2025, up 40.6% year over year. The figure topped the Zacks Consensus Estimate by 104.6%.
INSP’s Revenues in Detail
Inspire Medical registered revenues of $217.1 million in the second quarter, up 10.8% year over year. The figure beat the Zacks Consensus Estimate by 0.9%.
Per management, the overall revenue growth was primarily driven by increased market penetration and increased physician and patient awareness of the Inspire system. However, this was partially offset by ENT surgeon capacity constraints and some U.S. patients and physicians delaying Inspire therapy until Inspire V is available at their location or while they trial GLP-1 medications.
Shares of this company lost nearly 24.9% in today’s pre-market trading.
Inspire Medical’s Segment Details
Inspire Medical’s operations consist of two geographic regions — the United States and All other countries.
In the quarter under review, U.S. revenues of $207.2 million reflected an increase of 10.3% from the year-ago quarter on a reported basis.
As of June 30, 2025, Inspire Medical had 348 U.S. sales territories and 259 field clinical representatives compared with 335 and 230, respectively, as of Dec. 31, 2024.
Revenues from All other countries totaled $9.9 million, up 23% year over year on a reported basis.
Inspire Medical Systems, Inc. Price, Consensus and EPS Surprise
In the second quarter, Inspire Medical’s gross profit increased 9.9% year over year to $182.4 million. However, the gross margin contracted 74 basis points (bps) to 84%.
Selling, general and administrative expenses jumped 20.8% year over year to $159.5 million. Research and development expenses decreased 9.2% year over year to $26.2 million. Operating expenses of $185.7 million increased 15.4% year over year.
Operating loss totaled $3.3 million against the prior-year quarter’s operating profit of $5.1 million.
Inspire Medical’s Financial Position
Inspire Medical exited second-quarter 2025 with cash and cash equivalents and short-term investments of $300.9 million compared with $369.2 million at the first-quarter end.
Cumulative net cash used in operating activities at the end of second-quarter 2025 was $4 million, against net cash provided by operating activities of $8.8 million a year ago.
INSP’s Outlook
Inspire Medical has lowered its revenue and EPS outlook for 2025.
The company now projects revenues in the range of $900 million-$910 million (representing growth of 12-13% from 2024 levels), lowered from the prior outlook of $940 million-$955 million (representing growth of 17-19% from 2024 levels). The Zacks Consensus Estimate is pegged at $949.1 million.
The company now expects its EPS for 2025 to be between 40 cents and 50 cents, lowered from the prior outlook of $2.20-$2.30. The Zacks Consensus Estimate is pegged at $2.26.
Our Take on Inspire Medical
Inspire Medical exited the second quarter of 2025 with better-than-expected results. The robust improvement of the top and bottom lines was impressive. Strength in year-over-year geographical revenues was promising. The increased market penetration and increased physician and patient awareness of the Inspire system during the reported quarter were encouraging.
However, the gross margin contracted due to rising product costs. This does not bode well for the stock. Also, management’s confirmation about the slower-than-expected progress of the U.S. commercial launch of Inspire V is worrying. Per management, this has resulted in the pushing forward of the timeline to complete the full transition to Inspire V, which will impact financial results for the year.
INSP’s Zacks Rank and Key Picks
Inspire Medical currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are GE HealthCare Technologies Inc. (GEHC - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
GE HealthCare, sporting a Zacks Rank #1 (Strong Buy), reported second-quarter 2025 adjusted EPS of $1.06, beating the Zacks Consensus Estimate by 16.5%. Revenues of $5.01 billion outpaced the consensus mark by 0.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
GE HealthCare has a long-term estimated growth rate of 5.8%. GEHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 12.5%.
West Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, beating the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1.
West Pharmaceutical has a long-term estimated growth rate of 8.4%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.
Boston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2 (Buy).
Boston Scientific has a long-term estimated growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
INSP Stock Plunges Despite Q2 Earnings Beat, Gross Margin Contracts
Key Takeaways
Inspire Medical Systems, Inc. (INSP - Free Report) delivered an earnings per share (EPS) of 45 cents in second-quarter 2025, up 40.6% year over year. The figure topped the Zacks Consensus Estimate by 104.6%.
INSP’s Revenues in Detail
Inspire Medical registered revenues of $217.1 million in the second quarter, up 10.8% year over year. The figure beat the Zacks Consensus Estimate by 0.9%.
Per management, the overall revenue growth was primarily driven by increased market penetration and increased physician and patient awareness of the Inspire system. However, this was partially offset by ENT surgeon capacity constraints and some U.S. patients and physicians delaying Inspire therapy until Inspire V is available at their location or while they trial GLP-1 medications.
Shares of this company lost nearly 24.9% in today’s pre-market trading.
Inspire Medical’s Segment Details
Inspire Medical’s operations consist of two geographic regions — the United States and All other countries.
In the quarter under review, U.S. revenues of $207.2 million reflected an increase of 10.3% from the year-ago quarter on a reported basis.
As of June 30, 2025, Inspire Medical had 348 U.S. sales territories and 259 field clinical representatives compared with 335 and 230, respectively, as of Dec. 31, 2024.
Revenues from All other countries totaled $9.9 million, up 23% year over year on a reported basis.
Inspire Medical Systems, Inc. Price, Consensus and EPS Surprise
Inspire Medical Systems, Inc. price-consensus-eps-surprise-chart | Inspire Medical Systems, Inc. Quote
INSP’s Margin Analysis
In the second quarter, Inspire Medical’s gross profit increased 9.9% year over year to $182.4 million. However, the gross margin contracted 74 basis points (bps) to 84%.
Selling, general and administrative expenses jumped 20.8% year over year to $159.5 million. Research and development expenses decreased 9.2% year over year to $26.2 million. Operating expenses of $185.7 million increased 15.4% year over year.
Operating loss totaled $3.3 million against the prior-year quarter’s operating profit of $5.1 million.
Inspire Medical’s Financial Position
Inspire Medical exited second-quarter 2025 with cash and cash equivalents and short-term investments of $300.9 million compared with $369.2 million at the first-quarter end.
Cumulative net cash used in operating activities at the end of second-quarter 2025 was $4 million, against net cash provided by operating activities of $8.8 million a year ago.
INSP’s Outlook
Inspire Medical has lowered its revenue and EPS outlook for 2025.
The company now projects revenues in the range of $900 million-$910 million (representing growth of 12-13% from 2024 levels), lowered from the prior outlook of $940 million-$955 million (representing growth of 17-19% from 2024 levels). The Zacks Consensus Estimate is pegged at $949.1 million.
The company now expects its EPS for 2025 to be between 40 cents and 50 cents, lowered from the prior outlook of $2.20-$2.30. The Zacks Consensus Estimate is pegged at $2.26.
Our Take on Inspire Medical
Inspire Medical exited the second quarter of 2025 with better-than-expected results. The robust improvement of the top and bottom lines was impressive. Strength in year-over-year geographical revenues was promising. The increased market penetration and increased physician and patient awareness of the Inspire system during the reported quarter were encouraging.
However, the gross margin contracted due to rising product costs. This does not bode well for the stock. Also, management’s confirmation about the slower-than-expected progress of the U.S. commercial launch of Inspire V is worrying. Per management, this has resulted in the pushing forward of the timeline to complete the full transition to Inspire V, which will impact financial results for the year.
INSP’s Zacks Rank and Key Picks
Inspire Medical currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are GE HealthCare Technologies Inc. (GEHC - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
GE HealthCare, sporting a Zacks Rank #1 (Strong Buy), reported second-quarter 2025 adjusted EPS of $1.06, beating the Zacks Consensus Estimate by 16.5%. Revenues of $5.01 billion outpaced the consensus mark by 0.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
GE HealthCare has a long-term estimated growth rate of 5.8%. GEHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 12.5%.
West Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, beating the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1.
West Pharmaceutical has a long-term estimated growth rate of 8.4%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.
Boston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2 (Buy).
Boston Scientific has a long-term estimated growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%.