Can INSP sustain its earnings momentum into 2025?

**Inspire Medical Systems (INSP) is poised to sustain its earnings momentum into 2025**, based on several key factors:

1. **Strong Revenue Growth**: INSP has demonstrated robust revenue growth, with a 25% increase in the fourth quarter of 2024 compared to the same period in 2023, and a 28% increase for the full year 2024. The company's preliminary revenue guidance for 2025 projects a 17% to 19% increase over 2024.
2. **New Product Launch**: The upcoming launch of the Inspire V neurostimulator is expected to be a significant catalyst for growth. This new product is anticipated to simplify the procedure and expand treatment indications, potentially increasing market adoption.
3. **Market Expansion**: INSP has been actively expanding its market presence, including the activation of 72 new U.S. centers and the creation of 12 new U.S. sales territories in the fourth quarter of 2024. This strategic expansion is likely to support continued revenue growth.
4. **Financial Health**: The company's financial health is reflected in its gross margin of 85.0% for the fourth quarter of 2024 and its profitability, reporting a net income of $35.2 million and diluted net income per share of $1.15 for the fourth quarter of 2024.
5. **Analyst Confidence**: The consensus rating for INSP is "Buy" with an average analyst price target of $226.88, indicating optimism about the company's future performance. BofA Securities has upgraded INSP, placing it in the profitable growth category, and set a price target of $255, suggesting potential for growth.
6. **Strategic Focus**: INSP has implemented a new leadership structure and appointed key personnel in manufacturing, quality assurance, sales, and therapy development. This strategic focus on enhancing operational efficiency and growth is likely to support sustained earnings momentum.

In conclusion, INSP's strong revenue growth, new product launch, market expansion, financial health, analyst confidence, and strategic focus position the company well for sustaining its earnings momentum into 2025.