Inspire Medical’s Earnings Call Highlights Growth and Challenges

Inspire Medical ((INSP)) has held its Q1 earnings call. Read on for the main highlights of the call.

Inspire Medical’s recent earnings call painted a picture of robust growth and strategic advancements, coupled with some short-term challenges. The company reported significant revenue growth and profitability, driven by the strategic launch of the new Inspire V system. Despite some concerns about short-term revenue impacts due to transition challenges and a decline in international sales, the long-term outlook remains positive with increased guidance and strategic initiatives in place.

Strong Revenue Growth

Inspire Medical reported a remarkable revenue for Q1 2025, reaching $201.3 million, which marks a 23% increase compared to Q1 2024. This growth was primarily driven by a 24% year-over-year increase in U.S. revenue, showcasing the company’s strong market presence and demand for its products domestically.

Profitability Achievement

The company achieved a significant milestone in profitability, with a net income of $3 million for Q1 2025, compared to a net loss of $10 million in the same quarter of the previous year. This translates to a diluted net income of $0.1 per share, a notable improvement from a net loss of $0.34 per share previously.

Inspire V System Full Launch

The full launch of the Inspire V system in the U.S. is set for this month. This new system incorporates advanced technology and capabilities that have been well received by healthcare providers, positioning Inspire Medical for continued growth and innovation in the healthcare sector.

Significant Milestone in Patient Care

Inspire Medical has surpassed 100,000 patients receiving therapy since its inception, highlighting the significant reach and impact of their treatment. This milestone underscores the company’s commitment to improving patient care and expanding access to its innovative therapies.

Increased EPS Guidance

Inspire Medical has increased its full-year 2025 EPS guidance to a range of $2.2 to $2.3 per share, up from the prior guidance of $2.1 to $2.2 per share. This adjustment reflects the company’s confidence in its strategic initiatives and anticipated growth.

Inventory and Transition Challenges

The transition to the Inspire V system is expected to make Q2 a transition quarter, with revenue growth projected to be in the mid to high single-digits sequentially. This is due to inventory destocking and patient warehousing, which are anticipated to impact short-term revenue.

International Revenue Decline

Revenue outside the U.S. declined by 6% year-over-year, totaling $7.7 million. This decrease is attributed to prior year demand being influenced by supply shortages, indicating challenges in international markets.

Potential Delays in Procedure Volume

There are potential delays in procedure volumes as some patients are waiting for the new Inspire V device. This could affect short-term procedure volumes, but the company remains optimistic about the long-term benefits of the new system.

Forward-Looking Guidance

Looking ahead, Inspire Medical reaffirmed its full-year 2025 revenue guidance, projecting it to be between $940 million and $955 million, representing a 17% to 19% growth over the previous year. The company also adjusted its diluted net income per share guidance upward to a range of $2.2 to $2.3. Inspire Medical is optimistic about the full launch of its Inspire V system, which is expected to drive revenue growth in the latter half of the year.

In conclusion, Inspire Medical’s earnings call highlighted a strong start to the year with impressive revenue growth and profitability. While there are some short-term challenges due to transition and international sales decline, the company’s strategic initiatives and increased guidance reflect a positive long-term outlook. Investors and stakeholders can look forward to continued growth and innovation from Inspire Medical as it navigates these challenges and capitalizes on new opportunities.