Inspire Medical Systems Faces 80% EPS Guidance Cut Due to Software Failures
Written by Emily J. Thompson, Senior Investment Analyst
Source: PRnewswire
Updated: Dec 03 20250mins
- Significant EPS Guidance Cut: Inspire Medical Systems has slashed its 2025 EPS guidance by over 80% due to software updates failing to take effect, resulting in a 32% stock price drop, highlighting the company's inadequate preparation for a critical product launch.
- Management Misrepresentation Issues: Executives claimed operational readiness for the Inspire V device launch, yet investigations reveal significant failures in software and training that were not disclosed to investors, potentially leading to legal repercussions.
- Inventory Concealment: The investigation also uncovered that Inspire Medical failed to disclose a surplus inventory of the older Inspire IV device, stifling demand for the new product, which could undermine investor confidence in the company's future growth prospects.
- Legal Action Initiated: Hagens Berman has filed a class action lawsuit against Inspire Medical, with a lead plaintiff deadline of January 5, 2026, aiming to secure compensation for affected investors, indicating escalating legal risks for the company.
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Analyst Views on INSP
Wall Street analysts forecast INSP stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for INSP is 115.58 USD with a low forecast of 82.00 USD and a high forecast of 180.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
9 Buy
5 Hold
0 Sell
Moderate Buy
Current: 140.530
Low
82.00
Averages
115.58
High
180.00
Current: 140.530
Low
82.00
Averages
115.58
High
180.00
Oppenheimer
Suraj Kalia
Perform
to
Outperform
upgrade
$175
2025-12-08
New
Reason
Oppenheimer
Suraj Kalia
Price Target
$175
2025-12-08
New
upgrade
Perform
to
Outperform
Reason
As previously reported, Oppenheimer analyst Suraj Kalia upgraded Inspire Medical to Outperform from Perform with a $175 price target. The firm believes CMS has erred on mapping HGNS facility rate to higher levels, violating its own cost input protocol for rate-setting. Company commentary also suggests ASP increases now in play, Oppenheimer adds. If ASP's are raised about 20%-40%, revenues increase about 30%-50%, gross margins 200-350 bps, and EPS increases to about $6.50-$11.50.
Oppenheimer
Oppenheimer
Perform -> Outperform
upgrade
$175
2025-12-08
New
Reason
Oppenheimer
Oppenheimer
Price Target
$175
2025-12-08
New
upgrade
Perform -> Outperform
Reason
Oppenheimer upgraded Inspire Medical to Outperform from Perform with a $175 price target.
Piper Sandler
Overweight
maintain
$135 -> $165
2025-12-08
New
Reason
Piper Sandler
Price Target
$135 -> $165
2025-12-08
New
maintain
Overweight
Reason
Piper Sandler raised the firm's price target on Inspire Medical to $165 from $135 and keeps an Overweight rating on the shares. The firm acknowledges that it has been a volatile year for Inspire's shares. While the stock is down 26% year-to-date, shares are up about 86% since Q3 EPS, likely driven by a better-than-expected update and positive reimbursement news. Despite the recent move, shares still trade at about 3.3 times 2027 consensus revenue, which Piper would argue is still very reasonable for a double-digit grower with mid-80s gross margin and GAAP profitable.
Baird
NULL -> Outperform
maintain
$125 -> $180
2025-12-04
Reason
Baird
Price Target
$125 -> $180
2025-12-04
maintain
NULL -> Outperform
Reason
Baird raised the firm's price target on Inspire Medical to $180 from $125 and keeps an Outperform rating on the shares. The firm updated its model following its meetings with management.
See All Ratings
About INSP
Inspire Medical Systems, Inc. is a medical technology company. The Company is focused on the development and commercialization of advanced, minimally invasive solutions for patients with obstructive sleep apnea (OSA). Its proprietary Inspire therapy is FDA, EU MDR, and PDMA-approved neurostimulation technology that provides a safe and effective treatment for moderate to severe obstructive sleep apnea. It has developed a novel, closed-loop solution that 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
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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.
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