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InMode (INMD)
NASDAQ:INMD
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InMode
(NASDAQ:INMD)
Select Model
Select Model
Rating:80Outperform
Price Target:
$17.00
▲(13.64% Upside)
InMode's strong financial performance and attractive valuation are the primary strengths, offset by challenges highlighted in the earnings call, including reduced guidance and market difficulties in North America. Technical indicators suggest a neutral trend, contributing to a balanced overall score.
Positive Factors
Strong Gross Margin
A consistent gross margin of 80% indicates effective cost management and pricing power, which supports long-term profitability and competitive positioning in the aesthetic medical devices market.
International Sales Growth
Growing international sales, particularly in Europe, diversify revenue streams and reduce reliance on any single market, enhancing resilience against regional economic fluctuations.
New Product Launch
The introduction of new products in the wellness space expands InMode's market reach and product portfolio, potentially driving future revenue growth and strengthening its position in the medical devices industry.
Negative Factors
Reduced Guidance for 2025
Lowered revenue guidance reflects potential challenges in achieving growth targets, possibly due to market conditions or competitive pressures, which could impact investor confidence and strategic planning.
Challenging North American Market
Difficulties in the North American market, a key region for InMode, may hinder revenue growth and require strategic adjustments, impacting overall business performance.
Increased Operating Expenses
Rising operating expenses can pressure margins and profitability, necessitating efficiency improvements to maintain financial health and competitive advantage.
InMode (INMD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.03B
Dividend YieldN/A
Average Volume (3M)1.02M
Price to Earnings (P/E)6.0
Beta (1Y)1.29
Revenue Growth-3.62%
EPS Growth40.68%
CountryUS
Employees599
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.47
Shares Outstanding69,558,670
10 Day Avg. Volume841,203
30 Day Avg. Volume1,021,997
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.40
Enterprise Value/Revenue1.03
Enterprise Value/Gross Profit1.29
Enterprise Value/Ebitda3.36
Forecast
1Y Price Target
$17.50Price Target Upside16.98% Upside
Rating ConsensusHold
Number of Analyst Covering4
InMode Business Overview & Revenue Model
Company DescriptionInMode Ltd. is a global provider of innovative and minimally invasive aesthetic and medical technologies. The company specializes in devices that utilize radiofrequency (RF) technology to perform various aesthetic procedures, including body contouring, facial rejuvenation, and hair removal. InMode operates primarily in the aesthetic medicine sector, offering a range of products designed for plastic surgeons, dermatologists, and other medical professionals. Its core products include the BodyTite, FaceTite, and Morpheus8 platforms, which enhance both surgical and non-surgical treatment options for patients seeking cosmetic improvements.
How the Company Makes MoneyInMode generates revenue primarily through the sale of its medical devices and consumables used in aesthetic procedures. The company sells its devices to medical practitioners and clinics, which then use these technologies to provide services to patients. A significant portion of InMode's revenue comes from recurring sales of consumables, such as RF handpieces, that are required for ongoing treatments. Additionally, InMode benefits from partnerships with clinics and healthcare providers that offer its technologies, enhancing its market reach. The company's focus on innovation and expanding its product portfolio also contributes to its revenue growth, as new technologies attract more customers and increase usage among existing clients.
InMode Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted revenue growth, strong gross margins, and strategic market expansions. However, challenges in the North American market, reduced guidance, and increased operating expenses were noted as significant concerns.Q2-2025 Updates
Positive Updates
Revenue Growth
InMode generated revenues of $95.6 million in Q2 2025, up from $86.4 million in the same quarter last year, excluding previous preorders.
Expansion into New Markets
Strategic expansion with new direct operations in Thailand and Argentina to enhance local presence, improve customer support, and streamline operations.
Strong Gross Margin
Gross margin remained strong at 80% on a GAAP basis, consistent with Q2 2024.
International Sales Growth
Sales outside of the U.S. accounted for $45 million or 48% of overall sales, an 11% increase year-over-year, with Europe being the largest contributor.
New Product Launch
Launch of platforms in the wellness space focused on increased blood circulation and pain relief for the urology community, with full commercial rollout expected in Q4.
Improved Operating Margin
GAAP operating margin increased to 24% from 21% in Q2 2024.
Negative Updates
Reduced Guidance for 2025
Revenue guidance for 2025 reduced to $365 million to $375 million from the previous guidance of $395 million to $405 million.
Challenging North American Market
The North American market remains challenging due to reduced personnel spending and fewer treatments, consistent with recent macroeconomic trends.
Increased Operating Expenses
GAAP operating expenses rose to $53.6 million, a 5% year-over-year increase, with non-GAAP operating expenses up 9% year-over-year.
Tariff Concerns
Impact of U.S. tariffs expected to affect gross margins by approximately 2% to 3%.
Minimal Contribution from New Urology Product
Minimal expected contribution from the newly launched urology platforms in Q4 2025.
Company Guidance
During InMode's Second Quarter 2025 Earnings Call, the company provided guidance reflecting a challenging market environment, particularly in North America, due to reduced personnel spending and fewer treatments. InMode reported Q2 revenues of $95.6 million, with a gross margin of 80% on a GAAP basis. Sales outside the U.S. contributed $45 million, marking an 11% increase year-over-year, with Europe leading at $23 million. The company adjusted its 2025 revenue guidance to $365-$375 million, down from the previous $395-$405 million, citing lower-than-expected performance in the first half of the year. Non-GAAP gross margins are expected to remain between 78% and 80%, with non-GAAP earnings per diluted share forecasted between $1.55 and $1.59. Despite these challenges, InMode remains committed to its long-term strategy, focusing on market expansion, product launches, and maintaining a strong balance sheet with cash and equivalents amounting to $510.7 million as of June 30, 2025.InMode Financial Statement Overview
Summary
InMode showcases strong profitability with high margins and a robust balance sheet, featuring low leverage and efficient operations despite recent revenue growth slowdown.Income Statement
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.85
Very Positive
Balance Sheet
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.90
Very Positive
Cash Flow
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.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 401.56M | 394.82M | 492.05M | 454.27M | 357.56M | 206.11M |
| Gross Profit | 321.18M | 317.07M | 411.34M | 380.79M | 303.97M | 175.26M |
| EBITDA | 123.44M | 113.26M | 196.28M | 198.53M | 167.99M | 73.26M |
| Net Income | 178.70M | 181.28M | 197.92M | 161.52M | 164.97M | 75.03M |
Balance Sheet | ||||||
| Total Assets | 708.35M | 785.67M | 863.29M | 644.41M | 478.54M | 295.76M |
| Cash, Cash Equivalents and Short-Term Investments | 510.68M | 596.47M | 741.61M | 547.38M | 415.91M | 260.53M |
| Total Debt | 6.10M | 7.82M | 9.02M | 4.96M | 3.31M | 358.00K |
| Total Liabilities | 79.91M | 81.85M | 75.91M | 89.79M | 62.74M | 40.29M |
| Stockholders Equity | 628.44M | 703.81M | 787.37M | 554.62M | 415.80M | 255.47M |
Cash Flow | ||||||
| Free Cash Flow | 104.17M | 132.00M | 176.12M | 180.00M | 173.95M | 78.76M |
| Operating Cash Flow | 104.79M | 132.66M | 176.83M | 181.58M | 174.88M | 79.22M |
| Investing Cash Flow | 339.72M | 162.21M | -136.06M | -109.47M | -160.11M | -43.30M |
| Financing Cash Flow | -321.47M | -282.77M | 5.50M | -41.09M | -15.02M | -12.44M |
InMode Technical Analysis
Positive
14.96
Price Trends
14.52
Positive
14.46
Positive
16.03
Negative
Market Momentum
0.15
Positive
53.27
Neutral
50.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INMD, the sentiment is Positive. The current price of 14.96 is above the 20-day moving average (MA) of 14.82, above the 50-day MA of 14.52, and below the 200-day MA of 16.03, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 53.27 is Neutral, neither overbought nor oversold. The STOCH value of 50.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.03B | 6.02 | 25.91% | ― | -3.62% | 40.68% | |
58 Neutral | 2.18B | -12.95 | -350.40% | ― | 26.27% | 15.58% | |
55 Neutral | 1.88B | -92.95 | -4.27% | ― | 7.44% | -109.83% | |
50 Neutral | 572.97M | -936.49 | -0.10% | ― | 5.08% | 99.38% | |
45 Neutral | 1.13B | -12.78 | -388.86% | ― | 17.22% | 1.65% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
Performance Comparison
INMD
InMode
14.93
-2.53
-14.49%
ATEC
Alphatec Holdings
14.70
8.55
139.02%
AORT
Artivion
39.95
14.98
59.99%
ESTA
Establishment Labs Holdings
39.10
-3.23
-7.63%
BVS
Bioventus
6.84
-4.85
-41.49%
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.