Inspire Medical Systems (INSP) AI Stock Analysis

• Market Cap: $2.60B
• Dividend Yield: N/A
• Average Volume (3M): 583.24K
• Price to Earnings (P/E): 50.9
• Beta (1Y): 0.75
• Revenue Growth: 22.05%
• EPS Growth: 785.52%
• Country: US
• Employees: 1,246
• Sector: Healthcare
• Sector Strength: 38
• Industry: Medical - Devices
• EPS (TTM): 0.45
• Shares Outstanding: 29,574,316
• 10 Day Avg. Volume: 639,787
• 30 Day Avg. Volume: 583,241
• 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: 1.37
• Enterprise Value/Revenue: 4.13
• Enterprise Value/Gross Profit: 4.89
• Enterprise Value/Ebitda: 43.85
• 1Y Price Target: $169.60
• Price Target Upside: 30.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 58 Neutral
• Price Target: $82.00 ▼(-36.90% Downside)

Inspire Medical Systems' overall stock score is driven by strong financial performance and promising corporate developments. However, technical analysis indicates bearish momentum, and valuation metrics suggest the stock is overvalued. Mixed sentiment from the earnings call, with reduced guidance, also impacts the score.

Positive Factors

Competitive Advantage

Inspire 5's closed-loop stimulation is highlighted as a competitive advantage over competing technologies.

Financial Performance

Inspire Medical reported a 1Q sales beat with a significant improvement in operating margin.

Sales Growth

Inspire 5 procedure efficiency is expected to support volume and sales growth acceleration.

Negative Factors

Competition

LIVN's aura6000 may have demonstrated improvements in both non-CCC and CCC patients, representing a potentially meaningful competitive advantage.

Guidance and Market Concerns

Inspire provided a disappointing update on its 2Q25 call as a significant cut to 2025E guidance took center stage amid worsening concerns around the health of the company’s underlying markets.

Operational Challenges

A significant challenge is that centers are failing to complete the training, contracting, and onboarding required to purchase and implant Inspire V, a process made more challenging by more onerous IT approvals.

Inspire Medical Systems Business Overview & Revenue Model

Company Description

Inspire Medical Systems, Inc. is a leading medical technology company specializing in innovative solutions for sleep apnea. The company primarily focuses on the development and commercialization of minimally invasive neurostimulation technologies aimed at treating obstructive sleep apnea (OSA). Inspire's flagship product, the Inspire system, is an FDA-approved implantable device designed to provide a safe and effective treatment for OSA patients who are unable to use traditional continuous positive airway pressure (CPAP) therapy.

How the Company Makes Money

Inspire Medical Systems generates revenue primarily through the sale of its Inspire therapy system to hospitals and medical centers. The company's revenue model is based on the direct sales of its implantable devices to healthcare providers who perform the implantation procedure. Inspire also derives income from training and support services offered to physicians and medical staff to ensure the effective use of its products. Additionally, reimbursement from insurance providers and Medicare plays a significant role in the company's revenue stream, as it facilitates patient access to Inspire's therapy. Key partnerships with medical institutions and collaborations with healthcare professionals further contribute to the adoption and sales of Inspire's technology.

Inspire Medical Systems Financial Statement Overview

Summary

Inspire Medical Systems shows robust financial performance with strong revenue growth, improved profitability, and stable financial health. The income statement reflects healthy margins and positive net income. The balance sheet is solid with a high equity ratio and low leverage, though the decline in stockholders' equity needs monitoring. Cash flow generation is efficient, but the slowdown in free cash flow growth is a concern.

Income Statement

Inspire Medical Systems shows robust growth with a strong revenue increase, evidenced by a TTM revenue growth rate of 4.65% and a significant improvement from past negative net income to a positive $66.51 million in TTM. Gross and net profit margins are healthy at 84.64% and 7.92%, respectively. The EBIT and EBITDA margins have improved to 5.93% and 9.27%, indicating better operational efficiency. Overall, the company demonstrates strong revenue growth and improving profitability.

Balance Sheet

The company maintains a strong equity position with a high equity ratio of 86.98%, indicating financial stability. The debt-to-equity ratio is low at 0.05, showcasing conservative leverage. Return on equity has significantly improved, reflecting enhanced profitability and asset utilization. However, the slight decline in stockholders' equity over the last reported period necessitates monitoring.

Cash Flow

Inspire Medical Systems has shown a positive trend in cash flow generation, with a substantial increase in free cash flow for the TTM at $78.85 million, although the growth rate has slowed down compared to the previous year. Operating cash flow to net income ratio is strong at 1.72, indicating efficient cash generation relative to earnings. While the free cash flow to net income ratio is also positive at 1.19, the drop in operating cash flow over the last year is a concern that needs attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	861.31M	802.80M	624.80M	407.86M	233.39M	115.38M
Gross Profit	727.54M	679.82M	528.22M	341.74M	200.12M	97.76M
EBITDA	81.21M	65.03M	-17.06M	-39.69M	-38.62M	-53.16M
Net Income	53.12M	53.51M	-21.15M	-44.88M	-42.04M	-57.20M
Balance Sheet
Total Assets	802.19M	808.38M	676.81M	564.88M	295.08M	281.19M
Cash, Cash Equivalents and Short-Term Investments	300.89M	445.55M	460.38M	451.41M	214.47M	234.36M
Total Debt	33.06M	31.79M	24.85M	8.87M	34.09M	30.63M
Total Liabilities	124.38M	118.69M	104.30M	68.87M	66.04M	51.44M
Stockholders Equity	677.81M	689.70M	572.51M	496.01M	229.05M	229.75M
Cash Flow
Free Cash Flow	85.01M	91.12M	1.02M	2.47M	-24.79M	-55.50M
Operating Cash Flow	117.44M	130.25M	24.65M	11.57M	-20.12M	-53.05M
Investing Cash Flow	-54.20M	-113.12M	-294.82M	-19.60M	29.14M	86.63M
Financing Cash Flow	-144.31M	-52.39M	13.95M	235.08M	14.95M	134.06M

Inspire Medical Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 129.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 129.95 is above the 20-day moving average (MA) of 127.41, below the 50-day MA of 130.99, and below the 200-day MA of 165.89, indicating a bearish trend. The MACD of -4.50 indicates Positive momentum. The RSI at 21.42 is Positive, neither overbought nor oversold. The STOCH value of 37.52 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	73 Outperform	$4.29B	61.43	28.21%	―	48.09%	2410.18%
IRTC	66 Neutral	$5.15B	―	-91.13%	―	22.37%	31.14%
ITGR	65 Neutral	$3.77B	47.57	5.15%	―	7.21%	-23.29%
LIVN	61 Neutral	$2.32B	30.62	-17.87%	―	8.57%	-1154.64%
INSP	58 Neutral	$2.60B	50.93	8.07%	―	22.05%	785.52%
PRCT	53 Neutral	$2.66B	―	-27.62%	―	59.36%	19.87%
Sector *	50 Neutral	AU$2.60B	3.65	-58.14%	2.69%	36.37%	13.78%

Inspire Medical Systems Corporate Events

Inspire Medical Systems Reports Q2 2025 Financial Results

Inspire Medical Systems announced its financial results for the second quarter of 2025, reporting a revenue of $217.1 million, an 11% increase from the previous year. Despite achieving a gross margin of 84%, the company faced an operating loss of $3.3 million, partly due to a $4.0 million non-cash impairment of a strategic investment. The company also launched its Inspire V neurostimulation system in the U.S., which has received positive feedback but is experiencing slower-than-expected commercial progress, impacting financial results for the year. Executive Vice President Randall A. Ban announced his retirement effective January 30, 2026, marking the end of his influential tenure at the company.

The most recent analyst rating on (INSP) stock is a Hold with a $200.00 price target. To see the full list of analyst forecasts on Inspire Medical Systems stock, see the INSP Stock Forecast page.

Inspire Medical Systems Launches Inspire V for OSA

Inspire Medical Systems announced the full launch of Inspire V in May 2025, highlighting its advanced accelerometer-based sensing technology for treating obstructive sleep apnea (OSA). This innovation simplifies the implant procedure and enhances therapy effectiveness by accurately timing stimulation during the most vulnerable phases of the breathing cycle, potentially improving patient outcomes and reducing the need for revisions.

The most recent analyst rating on (INSP) stock is a Hold with a $170.00 price target. To see the full list of analyst forecasts on Inspire Medical Systems stock, see the INSP Stock Forecast page.