Inspire Medical Systems (INSP)
NYSE:INSP
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Inspire Medical Systems
(NYSE:INSP)
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Rating:66Neutral
Price Target:
$58.00
▲(2.40% Upside)
Action:ReiteratedDate:02/14/26
The score is supported by strong financial performance (profitability inflection, high gross margins, and a conservative balance sheet) and a reasonable earnings multiple, but is pulled down by very weak technicals (sharp downtrend, oversold conditions) and elevated 2026 execution risk from reimbursement/coding uncertainty and near-term disruption highlighted on the earnings call.
Positive Factors
Revenue and Margin Traction
Rapid scale from $115M to $912M and a sustained gross margin near 85% indicate a durable revenue base and a structurally high-margin device business. The move to consistent GAAP profitability and a ~16% net margin supports long-term reinvestment and funding of commercial expansion.
Negative Factors
Coding & Reimbursement Uncertainty
A potential 10%–50% haircut to physician professional fees is a structural headwind that can materially reduce provider economics and patient access. Prolonged uncertainty can depress physician willingness to offer the therapy and constrain sustainable procedure volumes across payers.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Margin Traction
Rapid scale from $115M to $912M and a sustained gross margin near 85% indicate a durable revenue base and a structurally high-margin device business. The move to consistent GAAP profitability and a ~16% net margin supports long-term reinvestment and funding of commercial expansion.
Read all positive factors
Inspire Medical Systems (INSP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.63B
Dividend YieldN/A
Average Volume (3M)954.80K
Price to Earnings (P/E)18.6
Beta (1Y)0.60
Revenue Growth16.81%
EPS Growth34.90%
CountryUS
Employees1,246
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)1.65
Shares Outstanding28,797,306
10 Day Avg. Volume1,030,230
30 Day Avg. Volume954,798
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)3.47
Price to Sales (P/S)2.97
P/FCF Ratio34.52
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue1.74
Enterprise Value/Gross Profit2.04
Enterprise Value/Ebitda22.76
Forecast
1Y Price Target
$67.73Price Target Upside19.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)1.87
Revenue Forecast (FY)$962.22M
Inspire Medical Systems Business Overview & Revenue Model
Company Description
Inspire Medical Systems, Inc., a medical technology company, focuses on the development and commercialization of minimally invasive solutions for patients with obstructive sleep apnea (OSA) in the United States and internationally. The company off...
How the Company Makes Money
Inspire Medical Systems primarily makes money by selling its Inspire therapy system for OSA to hospitals and ambulatory surgery centers that implant the device. Revenue is largely generated from product sales tied to procedure volume, including: (...
Inspire Medical Systems Key Performance Indicators (KPIs)
Inspire Medical Systems Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: strong 2025 financial results, cash generation, buybacks, and clear clinical and commercial traction for Inspire 5 (training, high center adoption, superior clinical metrics). However, material near-term reimbursement and coding uncertainty (transition to CPT 64582 with a -52 modifier), the WISER prior-authorization pilot, and inconsistent claims processing introduce significant short- to medium-term risk that widened 2026 guidance and could constrain physician willingness and early-year procedures. Management has a dual-path remediation plan (short-term payer engagement to reduce the modifier impact and long-term pursuit of a new CPT code), plus product and operational levers, but the timing and magnitude of reimbursement outcomes remain the key risk to achieving the higher end of guidance.Positive Updates
Revenue Growth
Fourth quarter revenue increased 12% to $269 million; full year 2025 revenue increased 14% to $912 million, driven by growth at existing centers and new center additions.
Negative Updates
Coding and Reimbursement Uncertainty
Recent clarification indicates Inspire 5 procedures should transition to CPT code 64582 with a -52 modifier; company estimates the professional fee reduction could range approximately 10% to 50% of the base rate, with actual impact varying by MAC and payer.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth
Fourth quarter revenue increased 12% to $269 million; full year 2025 revenue increased 14% to $912 million, driven by growth at existing centers and new center additions.
Read all positive updates
Company Guidance
Management revised 2026 guidance to full‑year revenue of $950M–$1,000M (4%–10% growth), reflecting coding uncertainty (transition to CPT 64582 with a -52 modifier) and WISER-related Q1 disruption; they expect Q1 revenue roughly flat YoY and a Q1 net loss with sequential improvement thereafter and the strongest revenue and profit in Q4. They forecast adjusted operating margin of 6%–8%, GAAP net income per diluted share of $1.23–$1.81 and adjusted net income per diluted share of $1.85–$2.35, assume an effective tax rate of 44%–49% (adjusted 26%–28%), weighted‑average diluted shares of ~29.4M, and capex of $45M–$50M. The revenue range models a physician professional‑fee haircut of 10% (high end) to 50% (low end), and management cautioned that stock‑based compensation can materially affect the reported tax rate (concentrated in Q1).Inspire Medical Systems Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 911.98M | 802.80M | 624.80M | 407.86M | 233.39M |
| Gross Profit | 778.76M | 679.82M | 528.22M | 341.74M | 200.12M |
| EBITDA | 64.91M | 65.03M | -17.06M | -40.73M | -38.62M |
| Net Income | 145.42M | 53.51M | -21.15M | -44.88M | -42.04M |
Balance Sheet | |||||
| Total Assets | 907.32M | 808.38M | 676.81M | 564.88M | 295.08M |
| Cash, Cash Equivalents and Short-Term Investments | 308.27M | 445.55M | 460.38M | 451.41M | 214.47M |
| Total Debt | 32.16M | 31.79M | 24.85M | 16.41M | 34.09M |
| Total Liabilities | 126.16M | 118.69M | 104.30M | 68.87M | 66.04M |
| Stockholders Equity | 781.16M | 689.70M | 572.51M | 496.01M | 229.05M |
Cash Flow | |||||
| Free Cash Flow | 78.48M | 91.12M | 1.02M | 2.47M | -24.79M |
| Operating Cash Flow | 116.98M | 130.25M | 24.65M | 11.57M | -20.12M |
| Investing Cash Flow | 21.45M | -113.12M | -294.82M | -19.60M | 29.14M |
| Financing Cash Flow | -183.45M | -52.39M | 13.95M | 235.08M | 14.95M |
Inspire Medical Systems Technical Analysis
Neutral
56.64
Price Trends
58.97
Negative
81.48
Negative
87.76
Negative
Market Momentum
-1.28
Negative
50.61
Neutral
67.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INSP, the sentiment is Neutral. The current price of 56.64 is above the 20-day moving average (MA) of 53.63, below the 50-day MA of 58.97, and below the 200-day MA of 87.76, indicating a neutral trend. The MACD of -1.28 indicates Negative momentum. The RSI at 50.61 is Neutral, neither overbought nor oversold. The STOCH value of 67.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for INSP.
Inspire Medical Systems Risk Analysis
Inspire Medical Systems disclosed 60 risk factors in its most recent earnings report. Inspire Medical Systems reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Inspire Medical Systems Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $3.56B | -13.83 | -21.49% | ― | 8.97% | -1024.86% | |
67 Neutral | $3.98B | 21.73 | 53.88% | ― | 41.20% | 173.53% | |
66 Neutral | $1.63B | 18.63 | 21.07% | ― | 16.81% | 34.90% | |
66 Neutral | $3.03B | 26.50 | 6.05% | ― | 7.81% | -26.32% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $4.02B | ― | -38.33% | ― | 25.45% | 66.62% | |
47 Neutral | $1.45B | -18.34 | -25.13% | ― | 50.07% | 21.22% |
* Healthcare Sector Average
INSP
Inspire Medical Systems
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Inspire Medical Systems Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresRegulatory Filings and Compliance
Inspire Medical Updates Governance, Outlines 2026 Growth Outlook
Positive
Feb 11, 2026
Inspire Medical Systems reported on February 11, 2026 that it ended 2025 with solid momentum, driven by the full commercial launch of its Inspire V system, 12% fourth-quarter revenue growth to $269.1 million and 14% full-year revenue growth to $91...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Inspire Medical Systems Issues Strong Preliminary 2025 Revenue Results
Positive
Jan 12, 2026
On January 12, 2026, Inspire Medical Systems reported preliminary, unaudited revenue for the fourth quarter and full year 2025, indicating continued double‑digit growth and strong adoption of its fifth‑generation Inspire V system. Four...
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.