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InMode (INMD)
NASDAQ:INMD
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InMode (INMD) AI Stock Analysis

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INMD

InMode

(NASDAQ:INMD)

Rating:74Outperform
Price Target:
$16.50
▲(15.30%Upside)
InMode's robust financial performance is the strongest factor, supported by a healthy balance sheet and solid profitability. However, challenges such as declining revenues, reduced margins, and tariff impacts highlighted in the earnings call detract from the overall score. Technical indicators suggest a neutral to slightly bearish trend, and the valuation indicates potential undervaluation, which could attract value investors.
Positive Factors
Gross Margin
Prelim gross margins are at the higher end of the FY25 guidance range, leading to raised gross margin expectations.
Share Repurchase Program
INMD announced another tax-efficient share repurchase program of up to 10% of its total shares outstanding, signaling confidence in its value.
Negative Factors
Economic Conditions
High interest rates are making large capital equipment purchases difficult for providers, impacting InMode's sales.
Geopolitical Risks
Geopolitical risks, including tariff concerns and the situation in Israel, pose additional challenges for InMode.
Market Environment
Waning consumer and provider demand due to inflationary pressures have affected InMode's performance, presenting ongoing challenges.
Revenue Guidance
The company lowered its FY25 revenue guidance to $365M-$375M from $395M-$405M, indicating a decline in expected performance.

InMode (INMD) vs. SPDR S&P 500 ETF (SPY)

InMode Business Overview & Revenue Model

Company DescriptionInMode (INMD) is a leading global provider in the medical technology sector, specializing in minimally invasive aesthetic medical products. The company develops, manufactures, and markets innovative devices that leverage radio-frequency (RF) technology to provide solutions for a variety of aesthetic procedures. These procedures include body contouring, skin tightening, and facial rejuvenation, among others, catering to both the healthcare professional and the consumer markets.
How the Company Makes MoneyInMode makes money primarily through the sale of its medical aesthetic devices, which utilize proprietary radio-frequency technology. The company generates revenue by selling these devices to plastic surgeons, dermatologists, and other medical professionals worldwide. InMode's business model also includes recurring revenue streams from the sale of consumables and disposables that accompany the use of its devices, such as treatment tips and handpieces. Additionally, InMode offers training and support services to ensure effective and safe use of its products, further solidifying customer relationships and enhancing device utilization. Strategic partnerships with leading healthcare providers and an extensive distribution network also contribute to the company's revenue growth by expanding its market reach and customer base.

InMode Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q1-2025)
|
% Change Since: -11.78%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Negative
InMode faces significant challenges with declining revenue, reduced margins, and the impact of U.S. tariffs. Despite completing a significant share purchase program and strong international sales, the financial performance this quarter was underwhelming, leading to reduced guidance for 2025.
Q1-2025 Updates
Positive Updates
Shareholder Return Program
InMode completed its fifth share purchase program this month, purchasing 6.95 million shares totaling $127 million. Over the past 12 months, the company has returned more than $412 million to shareholders through share purchases, representing approximately 27% of total capital.
Strong International Sales
First quarter sales outside of the U.S. accounted for $38 million, representing 49% of total sales, a 1% increase compared to the same period last year. Europe was the largest revenue contributor from outside the U.S. and reached a record sales number.
Negative Updates
Revenue Decline
Total revenue for Q1 2025 was $77.9 million, a decrease of 3% compared to the first quarter of 2024.
Decreased Gross Margins
Gross margin was 78% on a GAAP basis, compared to 80% in Q1 2024. Non-GAAP gross margins were 79% versus 80% in the same period last year.
Operating Margin Decline
GAAP operating margin in Q1 2025 was 20%, down from 23% in Q1 2024. Non-GAAP operating margin decreased to 23% from 27% in the first quarter of 2024.
Reduced Earnings per Share
GAAP diluted earnings per share for Q1 2025 were $0.26 compared to $0.28 in Q1 2024. Non-GAAP diluted earnings per share were $0.31 compared to $0.32 in Q1 2024.
Impact of U.S. Tariffs
With U.S. tariffs at their current levels of 10%, the company anticipates an impact of approximately 2% to 3% on gross margins. The situation remains fluid, with potential for increased tariffs.
Guidance Reduction
Revised guidance for 2025 includes revenues between $395 million to $405 million, down from previous guidance of $400 million to $410 million, and non-GAAP gross margins between 78% to 80%, compared to prior guidance of 80% to 82%.
Company Guidance
During InMode's First Quarter 2025 Earnings Results Conference Call, the company provided updated guidance amidst ongoing macroeconomic challenges. InMode's Q1 2025 revenue was reported at $77.9 million, reflecting a 3% decrease compared to the same period in the previous year. The gross margin was 78% on a GAAP basis, down from 80% in Q1 2024. The company noted that minimally invasive platforms accounted for 87% of total revenues, with international sales contributing $38 million or 49% of total sales, marking a 1% increase from Q1 2024. Operating expenses were $45.3 million on a GAAP basis, a slight 1% decrease year-over-year. The GAAP operating margin was 20%, down from 23% in Q1 2024, while GAAP diluted earnings per share were $0.26, compared to $0.28 in Q1 2024. For 2025, InMode reiterated its guidance for revenues between $395 million to $405 million, adjusted its non-GAAP gross margin guidance to 78%-80%, and expects non-GAAP earnings per diluted share between $1.64 to $1.68, reflecting adjustments due to factors like U.S. tariffs. The company remains committed to maintaining its workforce and leading the industry into the future, despite current economic pressures.

InMode Financial Statement Overview

Summary
InMode presents a robust financial profile characterized by strong profitability, excellent balance sheet health, and solid cash flow generation. While revenue growth has tempered recently, the company's low leverage and efficient operations support its financial resilience and potential for sustained performance in the Medical Devices industry.
Income Statement
85
Very Positive
InMode has demonstrated strong profitability with a consistent Gross Profit Margin of around 80% over the years. While Revenue Growth has slowed in recent periods, with a slight decline in the latest TTM period, the company maintains a robust Net Profit Margin averaging over 40%. The EBIT and EBITDA margins also reflect efficient operational performance, indicating strong profitability in the Medical Devices industry.
Balance Sheet
90
Very Positive
The company exhibits a very healthy balance sheet with a Debt-to-Equity Ratio consistently below 0.02, showcasing low leverage and minimal debt reliance. Return on Equity (ROE) remains strong, often exceeding 20%, indicating efficient use of equity capital. The Equity Ratio is high, further emphasizing the company's financial stability and low risk profile.
Cash Flow
80
Positive
InMode's cash flow performance is solid, with strong Free Cash Flow generation and a Free Cash Flow to Net Income Ratio typically exceeding 0.6. Although the Free Cash Flow Growth Rate has decreased in recent periods, the Operating Cash Flow consistently covers Net Income, indicating healthy cash conversion and operational efficiency.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue392.41M394.82M492.05M454.27M357.56M206.11M
Gross Profit314.06M317.07M411.34M380.79M303.97M175.26M
EBITDA110.79M113.26M196.28M198.53M167.99M73.26M
Net Income175.78M181.28M197.92M161.52M164.97M75.03M
Balance Sheet
Total Assets704.74M785.67M863.29M644.41M478.54M295.76M
Cash, Cash Equivalents and Short-Term Investments512.92M596.47M741.61M547.38M415.91M260.53M
Total Debt5.59M7.82M9.02M4.96M3.31M358.00K
Total Liabilities85.31M81.85M75.91M89.79M62.74M40.29M
Stockholders Equity619.43M703.81M787.37M554.62M415.80M255.47M
Cash Flow
Free Cash Flow121.41M132.00M176.12M180.00M173.95M78.76M
Operating Cash Flow122.05M132.66M176.83M181.58M174.88M79.22M
Investing Cash Flow285.32M162.21M-136.06M-109.47M-160.11M-43.30M
Financing Cash Flow-381.75M-282.77M5.50M-41.09M-15.02M-12.44M

InMode Technical Analysis

Technical Analysis Sentiment
Negative
Last Price14.31
Price Trends
50DMA
14.38
Negative
100DMA
15.36
Negative
200DMA
16.63
Negative
Market Momentum
MACD
<0.01
Positive
RSI
47.30
Neutral
STOCH
61.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INMD, the sentiment is Negative. The current price of 14.31 is below the 20-day moving average (MA) of 14.67, below the 50-day MA of 14.38, and below the 200-day MA of 16.63, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.30 is Neutral, neither overbought nor oversold. The STOCH value of 61.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INMD.

InMode Risk Analysis

InMode disclosed 61 risk factors in its most recent earnings report. InMode reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
We have limited business in Russia which pose some degree of sanctions risk that cannot be entirely eliminated. Q4, 2022

InMode Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$1.01B6.2524.50%-15.84%9.26%
68
Neutral
$1.34B-7.25%5.94%-115.82%
62
Neutral
$1.23B-186.68%9.27%1.51%
53
Neutral
$1.64B-291.71%25.53%23.22%
52
Neutral
$7.58B0.48-62.71%2.36%15.33%0.41%
47
Neutral
$536.40M-19.79%8.60%-42.76%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
INMD
InMode
14.31
-3.81
-21.03%
ATEC
Alphatec Holdings
10.88
0.78
7.72%
AORT
Artivion
31.50
4.35
16.02%
ESTA
Establishment Labs Holdings
41.23
-3.21
-7.22%
BVS
Bioventus
6.54
-0.47
-6.70%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 29, 2025