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Why Is Inspire (INSP) Down 2.4% Since Last Earnings Report?
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A month has gone by since the last earnings report for Inspire Medical Systems (INSP - Free Report) . Shares have lost about 2.4% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Inspire due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Inspire Medical Systems, Inc. before we dive into how investors and analysts have reacted as of late.
Inspire Medical delivered fourth-quarter 2025 adjusted earnings per share of $1.65, up 43.5% year over year. The figure beat the Zacks Consensus Estimate of 69 cents by 139.1%.
INSP’s Revenues in Detail
Inspire Medical registered revenues of $269.1 million in the fourth quarter, up 10.5% year over year. The figure was in line with the Zacks Consensus Estimate.
Per management, the revenue growth was primarily driven by growth at existing centers and new center additions.
As of Dec. 31, 2025, INSP operated 295 U.S. sales territories and employed 275 field clinical representatives compared with 335 territories and 230 representatives at the end of 2024.
INSP’s Margin Analysis
In the fourth quarter, Inspire Medical’s gross profit increased 14.4% year over year to $233 million. The gross margin expanded 160 basis points (bps) to 86.6%.
SG&A expenses jumped 14.4% year over year to $161.9million. R&D expenses decreased 17.8% year over year to $24.9million. Operating expenses of $186.9million increased 8.8% year over year.
Operating profit totaled $46.1 million, reflecting a 44.6% plunge from the year-ago quarter’s level. The operating margin expanded almost 380 bps to 17.1%.
Inspire Medical’s Financial Position
Inspire Medical exited fourth-quarter 2025 with cash and cash equivalents and short-term investments of $404.6 million compared with $322.6 million at the end of the third quarter.
Cumulative net cash provided by operating activities at the end of fourth-quarter 2025 was $117 million compared with $130.2 million a year ago.
INSP’s Outlook
Inspire Medical has updated its revenue outlook for 2026 and issued its earnings per share outlook.
The company has lowered its revenue guidance to $950 million-$1 billion (representing growth of 4-10% from 2025 levels) from $1,003 million-$1,013 million (previously projected). The Zacks Consensus Estimate is pegged at $1 billion.
INSP expects its adjusted earnings per share for 2026 to be in the band of $1.85-$2.35. The Zacks Consensus Estimate is pegged at $1.72.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -5200% due to these changes.
VGM Scores
Currently, Inspire has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Inspire has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Inspire is part of the Zacks Medical Info Systems industry. Over the past month, Hinge Health Inc. (HNGE - Free Report) , a stock from the same industry, has gained 12.6%. The company reported its results for the quarter ended December 2025 more than a month ago.
Hinge Health Inc. reported revenues of $170.73 million in the last reported quarter, representing a year-over-year change of 0%. EPS of $0.49 for the same period compares with $0.00 a year ago.
For the current quarter, Hinge Health Inc. is expected to post earnings of $0.38 per share, indicating a change of 0% from the year-ago quarter. The Zacks Consensus Estimate has changed +4.4% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Hinge Health Inc.. Also, the stock has a VGM Score of F.
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Why Is Inspire (INSP) Down 2.4% Since Last Earnings Report?
A month has gone by since the last earnings report for Inspire Medical Systems (INSP - Free Report) . Shares have lost about 2.4% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Inspire due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Inspire Medical Systems, Inc. before we dive into how investors and analysts have reacted as of late.
INSP Q4 Earnings Beat Estimates, Gross Margin Expands
Inspire Medical delivered fourth-quarter 2025 adjusted earnings per share of $1.65, up 43.5% year over year. The figure beat the Zacks Consensus Estimate of 69 cents by 139.1%.
INSP’s Revenues in Detail
Inspire Medical registered revenues of $269.1 million in the fourth quarter, up 10.5% year over year. The figure was in line with the Zacks Consensus Estimate.
Per management, the revenue growth was primarily driven by growth at existing centers and new center additions.
As of Dec. 31, 2025, INSP operated 295 U.S. sales territories and employed 275 field clinical representatives compared with 335 territories and 230 representatives at the end of 2024.
INSP’s Margin Analysis
In the fourth quarter, Inspire Medical’s gross profit increased 14.4% year over year to $233 million. The gross margin expanded 160 basis points (bps) to 86.6%.
SG&A expenses jumped 14.4% year over year to $161.9million. R&D expenses decreased 17.8% year over year to $24.9million. Operating expenses of $186.9million increased 8.8% year over year.
Operating profit totaled $46.1 million, reflecting a 44.6% plunge from the year-ago quarter’s level. The operating margin expanded almost 380 bps to 17.1%.
Inspire Medical’s Financial Position
Inspire Medical exited fourth-quarter 2025 with cash and cash equivalents and short-term investments of $404.6 million compared with $322.6 million at the end of the third quarter.
Cumulative net cash provided by operating activities at the end of fourth-quarter 2025 was $117 million compared with $130.2 million a year ago.
INSP’s Outlook
Inspire Medical has updated its revenue outlook for 2026 and issued its earnings per share outlook.
The company has lowered its revenue guidance to $950 million-$1 billion (representing growth of 4-10% from 2025 levels) from $1,003 million-$1,013 million (previously projected). The Zacks Consensus Estimate is pegged at $1 billion.
INSP expects its adjusted earnings per share for 2026 to be in the band of $1.85-$2.35. The Zacks Consensus Estimate is pegged at $1.72.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -5200% due to these changes.
VGM Scores
Currently, Inspire has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Inspire has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Inspire is part of the Zacks Medical Info Systems industry. Over the past month, Hinge Health Inc. (HNGE - Free Report) , a stock from the same industry, has gained 12.6%. The company reported its results for the quarter ended December 2025 more than a month ago.
Hinge Health Inc. reported revenues of $170.73 million in the last reported quarter, representing a year-over-year change of 0%. EPS of $0.49 for the same period compares with $0.00 a year ago.
For the current quarter, Hinge Health Inc. is expected to post earnings of $0.38 per share, indicating a change of 0% from the year-ago quarter. The Zacks Consensus Estimate has changed +4.4% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Hinge Health Inc.. Also, the stock has a VGM Score of F.