Inspire (INSP) Q2 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy INSP?
Source: NASDAQ.COM
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Analyst Views on INSP
Wall Street analysts forecast INSP stock price to rise
19 Analyst Rating
13 Buy
6 Hold
0 Sell
Moderate Buy
Current: 56.700
Low
91.00
Averages
145.31
High
180.00
Current: 56.700
Low
91.00
Averages
145.31
High
180.00
About INSP
Inspire Medical Systems, Inc. is a medical technology company. The Company focuses on the development and commercialization of advanced, minimally invasive solutions for patients with obstructive sleep apnea (OSA). Its proprietary Inspire therapy is neurostimulation technology that provides safe and effective treatment for moderate to severe obstructive sleep apnea. The Company's closed-loop solution continuously monitors a patient’s breathing and delivers mild hypoglossal nerve stimulation to maintain an open airway. The Company sells its Inspire system to hospitals and ambulatory surgery centers (ASCs) in the United States (U.S.) and in select countries in Europe and Japan through a direct sales organization and sells its Inspire system in Singapore and Hong Kong through distributors. Its direct sales force engages in sales efforts and promotional activities focused on ear, nose and throat (ENT) physicians and sleep centers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Inspire Medical Systems to Announce Q1 Earnings on May 4th
- Earnings Announcement: Inspire Medical Systems is set to release its Q1 2023 earnings on May 4th after market close, with consensus EPS estimate at -$0.26 and revenue at $200.03 million, reflecting a 0.6% year-over-year decline, which could impact investor confidence in the company's future performance.
- Performance Expectations: Over the past year, Inspire has beaten EPS and revenue estimates 100% of the time, although the last three months have seen two upward revisions and seven downward revisions in EPS estimates, indicating market uncertainty regarding the company's profitability.
- Revenue Outlook: Inspire Medical Systems projects 2026 revenue between $950 million and $1 billion, despite facing coding changes and reimbursement challenges, suggesting potential growth opportunities in the OSA implant market as it recovers.
- Market Reaction: Following KeyBanc's prediction that CMS will add codes for the Inspire V implant, Inspire Medical's stock surged, reflecting increased market confidence in the company's future products and potentially driving further development in the medical device sector.
See More
Inspire Medical Systems Q1 Earnings Exceed Expectations
- Earnings Beat: Inspire Medical Systems reported a Q1 non-GAAP EPS of $0.10, exceeding expectations by $0.36, indicating strong profitability and boosting investor confidence.
- Revenue Growth: The company achieved Q1 revenue of $204.58 million, a 1.6% year-over-year increase, surpassing market expectations by $4.55 million, reflecting stable growth and sustained product demand.
- 2026 Guidance Revision: Inspire revised its 2026 revenue outlook to a range of $825 million to $875 million, representing a decline of 4% to 10% compared to 2025, highlighting challenges in the market environment.
- Profitability Outlook: The company expects an adjusted operating margin of 2% to 4% for 2026, with diluted EPS projected between $0.07 and $0.62, and adjusted diluted EPS ranging from $0.75 to $1.25, indicating a cautious approach to profitability.
See More
Inspire (INSP) Q2 2025 Earnings Call Transcript
See More
Cash Flow Management and Investment Opportunities Analysis
- Paylocity Investment Risks: Paylocity (NASDAQ:PCTY) has a trailing 12-month free cash flow margin of 23.6%, but its average ARR growth of 13.4% raises concerns as customer hesitance leads to an estimated 7% sales growth for the next 12 months, indicating potential demand slowdown, warranting caution from investors.
- Super Micro Business Growth: Super Micro (NASDAQ:SMCI) achieved an impressive 74.1% annual revenue growth over the past two years, indicating a significant increase in market share, while its earnings per share have outperformed peers with a 45.5% annual growth over the last five years, showcasing its competitive strength in the high-performance server market.
- Inspire Medical Systems Advantages: Inspire Medical Systems (NYSE:INSP) has seen a remarkable 51.2% annual revenue growth over the last five years, with earnings per share compounding at 25.9% annually, and a 19.2 percentage point increase in free cash flow margin, highlighting its market potential in treating obstructive sleep apnea.
- Market Dynamics and Investment Opportunities: While Paylocity's outlook appears bleak, the robust growth of Super Micro and Inspire Medical suggests that investors should focus on these companies' market performance and future potential to seize better investment opportunities.
See More
Johnson Fistel Investigates Potential Claims Against Hasbro and Others for Fiduciary Breaches
- Hasbro Shareholder Investigation: Johnson Fistel is investigating potential claims against Hasbro (NASDAQ: HAS) executives, as shareholders who held shares before February 7, 2022, may seek corporate governance reforms aimed at enhancing executive oversight and recovering funds, highlighting concerns over corporate governance practices.
- Humana Financial Disclosures: Humana Inc. (NYSE: HUM) shareholders who held shares continuously since July 27, 2022, may pursue governance reforms due to executives allegedly downplaying the impact of rising medical costs on adjusted earnings per share, which poses risks of information asymmetry for investors.
- Ibotta IPO Risks: Ibotta (NYSE: IBTA) failed to disclose significant risks associated with its contract with Kroger during its April 18, 2024 IPO, exposing investors to undisclosed risks and potentially impacting its governance structure reforms.
- Inspire Medical Device Issues: Inspire Medical Systems (NYSE: INSP) shareholders who held shares before August 6, 2024, may seek governance reforms as executives allegedly failed to disclose that demand for the Inspire V device was weaker than expected, leading to a significant reduction in earnings guidance and raising questions about corporate transparency.
See More
Mairs & Power Small Cap Fund Q4 2025 Investor Letter Insights
- Market Performance Analysis: In 2025, the Mairs & Power Small Cap Fund returned 3.98%, significantly trailing the Russell 2000 Total Return Index's 12.81%, highlighting the challenges faced by small-cap stocks amid macroeconomic headwinds and a bubble in technology and AI investments.
- Impact of Stock Selection: Stock selection in Health Care, Information Technology, and Materials notably influenced the fund's performance, with overall sector allocation contributing positively, yet the rebound of small-cap stocks in the latter half of the year indicates market resilience.
- Inspire Medical Systems Performance: Inspire Medical Systems reported a 12% revenue increase to $269 million in Q4 2025, despite challenges in product rollout and reimbursement code setup, with a market capitalization of $1.57 billion, showcasing its potential in a large addressable market.
- Future Outlook: Looking ahead to 2026, the fund remains optimistic about small-cap stocks expected to grow at or above the S&P 500 rate, although it expresses caution regarding certain AI stocks, suggesting they may offer better risk-reward profiles.
See More
Inspire Medical Systems to Announce Q1 Earnings on May 4th
- Earnings Announcement: Inspire Medical Systems is set to release its Q1 2023 earnings on May 4th after market close, with consensus EPS estimate at -$0.26 and revenue at $200.03 million, reflecting a 0.6% year-over-year decline, which could impact investor confidence in the company's future performance.
- Performance Expectations: Over the past year, Inspire has beaten EPS and revenue estimates 100% of the time, although the last three months have seen two upward revisions and seven downward revisions in EPS estimates, indicating market uncertainty regarding the company's profitability.
- Revenue Outlook: Inspire Medical Systems projects 2026 revenue between $950 million and $1 billion, despite facing coding changes and reimbursement challenges, suggesting potential growth opportunities in the OSA implant market as it recovers.
- Market Reaction: Following KeyBanc's prediction that CMS will add codes for the Inspire V implant, Inspire Medical's stock surged, reflecting increased market confidence in the company's future products and potentially driving further development in the medical device sector.
See More
Inspire Medical Systems Q1 Earnings Exceed Expectations
- Earnings Beat: Inspire Medical Systems reported a Q1 non-GAAP EPS of $0.10, exceeding expectations by $0.36, indicating strong profitability and boosting investor confidence.
- Revenue Growth: The company achieved Q1 revenue of $204.58 million, a 1.6% year-over-year increase, surpassing market expectations by $4.55 million, reflecting stable growth and sustained product demand.
- 2026 Guidance Revision: Inspire revised its 2026 revenue outlook to a range of $825 million to $875 million, representing a decline of 4% to 10% compared to 2025, highlighting challenges in the market environment.
- Profitability Outlook: The company expects an adjusted operating margin of 2% to 4% for 2026, with diluted EPS projected between $0.07 and $0.62, and adjusted diluted EPS ranging from $0.75 to $1.25, indicating a cautious approach to profitability.
See More
Inspire (INSP) Q2 2025 Earnings Call Transcript
See More
Cash Flow Management and Investment Opportunities Analysis
- Paylocity Investment Risks: Paylocity (NASDAQ:PCTY) has a trailing 12-month free cash flow margin of 23.6%, but its average ARR growth of 13.4% raises concerns as customer hesitance leads to an estimated 7% sales growth for the next 12 months, indicating potential demand slowdown, warranting caution from investors.
- Super Micro Business Growth: Super Micro (NASDAQ:SMCI) achieved an impressive 74.1% annual revenue growth over the past two years, indicating a significant increase in market share, while its earnings per share have outperformed peers with a 45.5% annual growth over the last five years, showcasing its competitive strength in the high-performance server market.
- Inspire Medical Systems Advantages: Inspire Medical Systems (NYSE:INSP) has seen a remarkable 51.2% annual revenue growth over the last five years, with earnings per share compounding at 25.9% annually, and a 19.2 percentage point increase in free cash flow margin, highlighting its market potential in treating obstructive sleep apnea.
- Market Dynamics and Investment Opportunities: While Paylocity's outlook appears bleak, the robust growth of Super Micro and Inspire Medical suggests that investors should focus on these companies' market performance and future potential to seize better investment opportunities.
See More
Johnson Fistel Investigates Potential Claims Against Hasbro and Others for Fiduciary Breaches
- Hasbro Shareholder Investigation: Johnson Fistel is investigating potential claims against Hasbro (NASDAQ: HAS) executives, as shareholders who held shares before February 7, 2022, may seek corporate governance reforms aimed at enhancing executive oversight and recovering funds, highlighting concerns over corporate governance practices.
- Humana Financial Disclosures: Humana Inc. (NYSE: HUM) shareholders who held shares continuously since July 27, 2022, may pursue governance reforms due to executives allegedly downplaying the impact of rising medical costs on adjusted earnings per share, which poses risks of information asymmetry for investors.
- Ibotta IPO Risks: Ibotta (NYSE: IBTA) failed to disclose significant risks associated with its contract with Kroger during its April 18, 2024 IPO, exposing investors to undisclosed risks and potentially impacting its governance structure reforms.
- Inspire Medical Device Issues: Inspire Medical Systems (NYSE: INSP) shareholders who held shares before August 6, 2024, may seek governance reforms as executives allegedly failed to disclose that demand for the Inspire V device was weaker than expected, leading to a significant reduction in earnings guidance and raising questions about corporate transparency.
See More
Mairs & Power Small Cap Fund Q4 2025 Investor Letter Insights
- Market Performance Analysis: In 2025, the Mairs & Power Small Cap Fund returned 3.98%, significantly trailing the Russell 2000 Total Return Index's 12.81%, highlighting the challenges faced by small-cap stocks amid macroeconomic headwinds and a bubble in technology and AI investments.
- Impact of Stock Selection: Stock selection in Health Care, Information Technology, and Materials notably influenced the fund's performance, with overall sector allocation contributing positively, yet the rebound of small-cap stocks in the latter half of the year indicates market resilience.
- Inspire Medical Systems Performance: Inspire Medical Systems reported a 12% revenue increase to $269 million in Q4 2025, despite challenges in product rollout and reimbursement code setup, with a market capitalization of $1.57 billion, showcasing its potential in a large addressable market.
- Future Outlook: Looking ahead to 2026, the fund remains optimistic about small-cap stocks expected to grow at or above the S&P 500 rate, although it expresses caution regarding certain AI stocks, suggesting they may offer better risk-reward profiles.
See More
