Inspire Medical Q2 revenue falls less than expected
INSP•What drove the quarter
- Coding and reimbursement challenges — The company said the Q2 U.S. revenue decline was mainly due to an evolving coding and reimbursement environment.
- Product mix — Gross margin increased due to a higher sales mix of the Inspire V system, which has a higher gross margin than the Inspire IV system.
- Cost reductions — Operating expenses fell due to lower stock-based compensation and reduced marketing costs.
Outlook raised for 2026
- Inspire Medical Systems raised its 2026 revenue outlook to $835 million-$875 million.
- The company expects 2026 adjusted operating margin of 4%-6% and adjusted diluted EPS of $1.05-$1.45.
- It expects the majority of restructuring actions to be completed in Q3, with all actions finished by the end of 2026.
Key figures and analyst view
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $200.60 million | $194.67 million (16 analysts) |
| Q2 Adjusted EPS | Beat | $0.14 | -$0.27 (9 analysts) |
