InMode (INMD) AI Stock Analysis

• Market Cap: $885.76M
• Dividend Yield: N/A
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): 9.7
• Beta (1Y): 1.01
• Revenue Growth: -13.98%
• EPS Growth: 15.94%
• Country: US
• Employees: 599
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.46
• Shares Outstanding: 63,358,750
• 10 Day Avg. Volume: 952,571
• 30 Day Avg. Volume: 1,237,454
• PEG Ratio: -0.28
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 2.56
• P/FCF Ratio: 11.26
• Enterprise Value/Market Cap: 0.66
• Enterprise Value/Revenue: 1.57
• Enterprise Value/Gross Profit: 2.00
• Enterprise Value/Ebitda: 5.59
• 1Y Price Target: $17.67
• Price Target Upside: 25.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.45
• Revenue Forecast (FY): $369.79M

• Rating: 74 Outperform
• Price Target: $17.00 ▲(21.00% Upside)
• Action: Reiterated Date: 02/12/26
• Date: Action: Reiterated 02/12/26

The score is driven primarily by strong underlying financial quality (high margins, strong cash conversion, and a very conservative balance sheet). Offsetting that strength are weakened growth and profitability trends and a conservative 2026 outlook that implies flat revenue and lower margins/EPS. Technicals are mildly constructive and valuation is relatively low, but both are secondary to the near-term fundamental trajectory.

Positive Factors

Conservative balance sheet & cash

Extremely low leverage and a very large cash stockpile provide durable financial flexibility: supports continued R&D, buybacks, selective M&A or price support during cyclical troughs, and materially reduces refinancing/default risk over the medium term.

Very high gross and EBITDA margins

Sustained high gross margins reflect proprietary device technology and favorable unit economics. High margins enable robust cash conversion and the ability to fund new product development, commercial investments and shareholder returns even if revenue growth is muted.

Strong international momentum

Material and accelerating international growth diversifies revenue away from a softer North American market, increasing total addressable market exposure and reducing single-market cyclicality. This supports longer-term scale, consumables adoption, and geographic growth optionality.

Negative Factors

Weakened revenue trend

A sustained top-line decline reduces operating leverage and constrains reinvestment ability. Continued revenue weakness signals either demand softness or competitive pressure in core markets, lengthening the recovery path and making long-term growth targets harder to achieve.

Margin compression and conservative 2026 guide

Management’s guidance for lower gross margins and EPS implies reduced profitability power ahead. Persistently lower margins would diminish free cash flow and returns on capital, limiting the company’s ability to sustain buybacks, invest in commercialization, or absorb future cost shocks.

Product mix & tariff-driven cost pressure

Shifting into externally sourced, lower-margin laser platforms and facing import tariffs structurally erode InMode’s historical margin advantage. This mix and cost pressure can reduce pricing power and long-run profitability unless offset by higher volume or efficiency gains.

InMode Business Overview & Revenue Model

Company Description

InMode Ltd. designs, develops, manufactures, and markets minimally invasive aesthetic medical products based on its proprietary radiofrequency assisted lipolysis and deep subdermal fractional radiofrequency technologies in the United States and internationally. The company offers minimally invasive aesthetic medical products for various procedures, such as liposuction with simultaneous skin tightening, body and face contouring, and ablative skin rejuvenation treatments, as well as for use in women's health conditions and procedures. It also designs, develops, manufactures, and markets non-invasive medical aesthetic products that target an array of procedures, including permanent hair reduction, facial skin rejuvenation, wrinkle reduction, cellulite treatment, skin appearance and texture, and superficial benign vascular and pigmented lesions, as well as hands-free medical aesthetic products that target a range of procedures, such as skin tightening, fat reduction, and muscle stimulation. The company was formerly known as Invasix Ltd. and changed its name to InMode Ltd. in November 2017. InMode Ltd. was incorporated in 2008 and is headquartered in Yokneam, Israel.

How the Company Makes Money

InMode generates revenue through the sale of its proprietary devices and consumables used in aesthetic procedures. Its primary revenue streams include the direct sale of medical devices to healthcare providers, as well as recurring revenue from disposable products associated with these devices. Additionally, the company benefits from training and support services provided to practitioners, which help to establish long-term partnerships. Key factors contributing to InMode's earnings include the growing demand for non-invasive aesthetic treatments, strategic collaborations with medical professionals, and the expansion of its product portfolio to address diverse patient needs.

InMode Financial Statement Overview

Summary

Financial strength remains solid, supported by very high gross margins, efficient cash conversion, and an exceptionally low-leverage balance sheet (debt-to-equity ~0.02). The main drag is weakened trajectory: recent revenue declines, margin compression, and lower returns/cash flow versus prior peaks reduce near-term earnings visibility.

Income Statement

Profitability remains strong with very high gross margins (~79% in 2025) and solid operating profitability (EBITDA margin ~30%), but the growth profile has deteriorated meaningfully. Revenue declined ~25% in 2025 (annual) after being roughly flat-to-down in 2024, and net margin compressed sharply to ~25% in 2025 from unusually high levels in 2024 (~46%). The business is still profitable, but the negative revenue trend and margin pressure reduce earnings visibility.

Balance Sheet

The balance sheet is exceptionally conservative with very low leverage (debt-to-equity ~0.02 in 2025) and a large equity base (~$683M) supporting the asset base (~$766M). Returns on equity remain positive (~14% in 2025) but have stepped down materially from prior years (mid-20%+), consistent with slowing profitability. Overall financial risk from debt appears minimal, with the main watch item being the downward trend in returns.

Cash Flow

Cash generation is healthy, with free cash flow closely tracking reported earnings (free cash flow roughly equal to net income in 2025). However, cash flow momentum has weakened: free cash flow fell ~36% in 2025 (annual) and operating cash flow also declined versus prior years, reflecting the revenue/profit slowdown. Despite the drop, the company still converts profits to cash efficiently, which supports financial flexibility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	370.50M	394.82M	492.05M	454.27M	357.56M
Gross Profit	290.97M	317.07M	411.34M	380.79M	303.97M
EBITDA	111.03M	113.26M	196.28M	198.53M	167.99M
Net Income	93.83M	181.28M	197.92M	161.52M	164.97M
Balance Sheet
Total Assets	766.43M	785.67M	863.29M	644.41M	478.54M
Cash, Cash Equivalents and Short-Term Investments	555.33M	596.47M	741.61M	547.38M	415.91M
Total Debt	13.23M	7.82M	9.02M	4.96M	4.52M
Total Liabilities	83.23M	81.85M	75.91M	89.79M	62.74M
Stockholders Equity	683.20M	703.81M	787.37M	554.62M	415.80M
Cash Flow
Free Cash Flow	84.28M	132.00M	176.12M	180.00M	173.95M
Operating Cash Flow	85.26M	132.66M	176.83M	181.58M	174.88M
Investing Cash Flow	186.03M	162.21M	-136.06M	-109.47M	-160.11M
Financing Cash Flow	-126.06M	-282.77M	5.50M	-41.09M	-15.02M

InMode Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 14.05 is below the 20-day moving average (MA) of 14.86, below the 50-day MA of 14.67, and below the 200-day MA of 14.61, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 42.94 is Neutral, neither overbought nor oversold. The STOCH value of 7.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INMD.

InMode Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INMD	74 Outperform	$885.76M	9.65	13.53%	―	-13.98%	15.94%
ESTA	67 Neutral	$2.32B	-44.98	-338.19%	―	24.76%	-10.41%
BVS	64 Neutral	$721.70M	77.92	4.97%	―	1.58%	―
AXGN	56 Neutral	$1.63B	-92.18	-1.90%	―	18.72%	85.77%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
OFIX	50 Neutral	$504.90M	-5.57	-24.60%	―	4.31%	3.26%
SSII	45 Neutral	$964.23M	-79.53	-43.42%	―	159.43%	67.42%

InMode Corporate Events

InMode Posts Mixed 2025 Results, Leans on Europe and New Platforms for 2026

On February 10, 2026, InMode reported its fourth-quarter and full-year 2025 results, posting quarterly GAAP revenue of $103.9 million, up 6% year over year, and full-year revenue of $370.5 million, down 6% from 2024, with margin compression and significantly lower GAAP net income. The company highlighted record European revenue, a strengthened balance sheet with $555.3 million in cash and a $127.4 million share repurchase in 2025, while acknowledging persistent demand headwinds in North America, ongoing regional geopolitical risks, and betting on operational reorganization and planned 2026 laser-platform launches to stabilize growth and reinforce its market position.

The most recent analyst rating on (INMD) stock is a Buy with a $18.50 price target. To see the full list of analyst forecasts on InMode stock, see the INMD Stock Forecast page.

InMode Confirms Strategic Review Amid Takeover Rumors

On February 2, 2026, InMode issued a statement responding to market speculation surrounding a publicly announced non-binding proposal from Steel Partners Holdings L.P. to acquire 51% of the company’s outstanding shares and other related rumors. The company confirmed that it is evaluating potential strategic alternatives and has established a committee of independent directors, supported by external legal and financial advisers, to oversee this review in line with their fiduciary duties and the interests of all shareholders. InMode cautioned that there is no assurance the ongoing strategic review will lead to any transaction or other outcome, and indicated it does not plan to provide further updates on the process unless required under applicable law or regulation.

The most recent analyst rating on (INMD) stock is a Buy with a $17.50 price target. To see the full list of analyst forecasts on InMode stock, see the INMD Stock Forecast page.