Inspire Medical Systems (INSP) AI Stock Analysis

• Market Cap: $2.76B
• Dividend Yield: N/A
• Average Volume (3M): 1.57M
• Price to Earnings (P/E): 65.2
• Beta (1Y): 0.39
• Revenue Growth: 16.81%
• EPS Growth: 34.90%
• Country: US
• Employees: 1,246
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.38
• Shares Outstanding: 29,056,435
• 10 Day Avg. Volume: 832,051
• 30 Day Avg. Volume: 1,570,877
• PEG Ratio: -0.29
• Price to Book (P/B): 8.00
• Price to Sales (P/S): 6.87
• P/FCF Ratio: 60.55
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $142.50
• Price Target Upside: 50.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $106.00 ▲(11.58% Upside)

Inspire Medical Systems shows strong financial performance and positive corporate events, contributing to a solid overall score. However, technical indicators suggest a bearish trend, and the high P/E ratio indicates potential overvaluation, which tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and successful product adoption, supporting long-term business expansion.

Gross Margin Improvement

Improved gross margins suggest effective cost management and pricing power, enhancing profitability and competitive positioning.

Positive Clinical Outcomes

Positive clinical outcomes enhance product credibility and can drive increased adoption, supporting sustained revenue growth.

Negative Factors

Decreased Net Income

Decreased net income could indicate challenges in managing costs or pricing, potentially impacting future profitability.

Increased Operating Expenses

Rising operating expenses may pressure margins and limit financial flexibility, affecting long-term operational efficiency.

Reimbursement Challenges

Reimbursement challenges can affect revenue stability and growth, as insurance coverage is crucial for product adoption.

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 offers Inspire system, a neurostimulation technology that provides a safe and effective treatment for moderate to severe OSA. It also develops a novel, a closed-loop solution that continuously monitors a patient's breathing and delivers mild hypoglossal nerve stimulation to maintain an open airway. The company was incorporated in 2007 and is headquartered in Golden Valley, Minnesota.

How the Company Makes Money

Inspire Medical Systems generates revenue primarily through the sale of its Inspire therapy system, which includes the device itself, surgical implantation, and follow-up patient management services. The company operates on a direct sales model, selling its products to hospitals and sleep clinics, and it may also collaborate with healthcare providers for training and support services. Additionally, Inspire benefits from reimbursement programs by insurance companies that cover the cost of the Inspire system for eligible patients, which further drives its revenue. The growth in awareness of sleep apnea and the increasing acceptance of innovative treatments also contribute significantly to the company's earnings.

Inspire Medical Systems Financial Statement Overview

Summary

Inspire Medical Systems exhibits strong financial health with consistent revenue growth, robust profit margins, and a solid balance sheet with low leverage. The company has improved its profitability and cash flow generation, although there is room for enhancing operational efficiency and cash flow conversion.

Income Statement

Inspire Medical Systems has shown consistent revenue growth, with a TTM revenue growth rate of 2.47%. The company has maintained strong gross profit margins above 84% over the years, indicating efficient cost management. The net profit margin has improved significantly from negative values in previous years to 6.17% in the TTM period, reflecting enhanced profitability. However, the EBIT and EBITDA margins, though positive, suggest room for improvement in operational efficiency.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio of 0.048, indicating minimal leverage and financial risk. Return on equity has improved to 7.87% in the TTM period, showcasing better utilization of shareholder funds. The equity ratio remains robust, reflecting a solid capital structure. Overall, the balance sheet indicates financial stability and prudent management of resources.

Cash Flow

Inspire Medical Systems has demonstrated positive free cash flow growth of 16.25% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio of 1.26 suggests healthy cash flow relative to earnings. However, the free cash flow to net income ratio of 0.72 indicates that not all earnings are translating into free cash flow, suggesting potential areas for cash flow optimization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	882.62M	802.80M	624.80M	407.86M	233.39M	115.38M
Gross Profit	749.48M	679.82M	528.22M	341.74M	200.12M	97.76M
EBITDA	76.64M	65.03M	-17.06M	-40.73M	-38.62M	-54.13M
Net Income	44.56M	53.51M	-21.15M	-44.88M	-42.04M	-57.20M
Balance Sheet
Total Assets	807.72M	808.38M	676.81M	564.88M	295.08M	281.19M
Cash, Cash Equivalents and Short-Term Investments	322.59M	445.55M	460.38M	451.41M	214.47M	234.36M
Total Debt	32.58M	31.79M	24.85M	8.87M	34.09M	30.63M
Total Liabilities	141.26M	118.69M	104.30M	68.87M	66.04M	51.44M
Stockholders Equity	666.46M	689.70M	572.51M	496.01M	229.05M	229.75M
Cash Flow
Free Cash Flow	98.82M	91.12M	1.02M	2.47M	-24.79M	-55.50M
Operating Cash Flow	133.69M	130.25M	24.65M	11.57M	-20.12M	-53.05M
Investing Cash Flow	37.13M	-113.12M	-294.82M	-19.60M	29.14M	86.63M
Financing Cash Flow	-205.28M	-52.39M	13.95M	235.08M	14.95M	134.06M

Inspire Medical Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 95.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INSP, the sentiment is Negative. The current price of 95 is below the 20-day moving average (MA) of 104.69, below the 50-day MA of 102.40, and below the 200-day MA of 114.39, indicating a bearish trend. The MACD of -4.43 indicates Positive momentum. The RSI at 40.92 is Neutral, neither overbought nor oversold. The STOCH value of 75.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INSP.

Inspire Medical Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TMDX	77 Outperform	$4.70B	55.57	32.48%	―	41.20%	173.53%
INSP	73 Outperform	$2.76B	65.16	6.54%	―	16.81%	34.90%
ITGR	65 Neutral	$2.90B	34.66	5.18%	―	7.81%	-26.32%
LIVN	63 Neutral	$3.55B	-16.19	-17.63%	―	8.97%	-1024.86%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IRTC	51 Neutral	$6.10B	-116.76	-53.15%	―	25.45%	66.62%
PRCT	41 Neutral	$1.93B	-22.42	-27.22%	―	50.07%	21.22%

Inspire Medical Systems Corporate Events

Inspire Medical Systems to Release Tax Valuation Allowance

On November 6, 2025, Inspire Medical Systems announced its plan to release a significant portion of its valuation allowance on U.S. deferred tax assets in the fourth quarter of fiscal 2025. This move is expected to result in an income tax benefit of $90 million to $100 million, potentially increasing diluted earnings per share by $3.00 to $3.30, impacting the company’s financial performance positively.

The most recent analyst rating on (INSP) stock is a Buy with a $94.00 price target. To see the full list of analyst forecasts on Inspire Medical Systems stock, see the INSP Stock Forecast page.

Inspire Medical Systems Reports Q3 2025 Financial Results

Inspire Medical Systems reported its financial results for the third quarter of 2025, showing a 10% increase in revenue to $224.5 million compared to the previous year. The company achieved a gross margin of 85.8% and a net income of $9.9 million. The Inspire V system, which offers enhanced performance and reduced surgical procedure time, has received positive feedback from clinicians, with over 75% of centers ready to transition to this new system. Inspire reaffirmed its full-year revenue guidance of $900 to $910 million and increased its diluted net income per share guidance to $0.90 to $1.00. The company completed a $50 million share repurchase and presented clinical evidence of the Inspire V system’s efficacy at industry meetings.

The most recent analyst rating on (INSP) stock is a Hold with a $77.00 price target. To see the full list of analyst forecasts on Inspire Medical Systems stock, see the INSP Stock Forecast page.

Inspire Medical Systems Unveils Positive Data for Inspire V

In October 2025, Inspire Medical Systems published clinical outcomes data for their Inspire V system at the ISSS/AAO-HNS meetings in Indianapolis. The data, from a Singapore study and a limited U.S. market release, showed significant improvements in patient adherence, safety, and surgical efficiency compared to previous models. The Inspire V system demonstrated a 20% reduction in surgical times and superior respiratory sensing, leading to enhanced patient comfort and therapy outcomes. The results indicate a promising advancement in treating obstructive sleep apnea, with implications for increased adoption and potential changes in reimbursement levels.

The most recent analyst rating on (INSP) stock is a Buy with a $125.00 price target. To see the full list of analyst forecasts on Inspire Medical Systems stock, see the INSP Stock Forecast page.