InMode 2025 Q2 Earnings Strong Performance with Net Income Growth of 12.3%

InMode (INMD) reported its fiscal 2025 Q2 earnings on Jul 30th, 2025. The company’s performance exceeded expectations, with its earnings per share (EPS) surpassing analyst forecasts. However, the company adjusted its full-year guidance downwards, indicating challenges in the current market environment. Despite this, InMode remains confident in its long-term potential and continues to invest in its growth strategies.

Revenue
InMode's total revenue rose by 10.6% to $95.60 million in Q2 2025 compared to $86.45 million in Q2 2024. The capital equipment segment generated $75.79 million, while consumables and service revenues contributed $19.82 million, culminating in the total revenue figure of $95.60 million. This revenue growth highlights the company's robust performance across its business segments despite market challenges.

Earnings/Net Income
InMode's EPS increased 50.0% to $0.42 in Q2 2025, up from $0.28 in Q2 2024, demonstrating solid earnings growth. The company's net income rose to $26.74 million, a 12.3% increase from $23.82 million in the previous year. The EPS results indicate a positive financial trajectory for the company.

Post-Earnings Price Action Review
The strategy of purchasing InMode (INMD) shares following a quarter-over-quarter revenue increase on the earnings release date and holding for 30 days has yielded no returns over the past three years. This approach resulted in a compound annual growth rate (CAGR) of 0.00% and an excess return of -87.61%, significantly trailing the benchmark return of 87.61%. Although the strategy exhibited zero percent maximum drawdown and volatility, it proved ineffective in capturing post-earnings release gains. The lack of returns suggests the strategy's inability to capitalize on positive financial announcements, possibly due to market conditions or investor sentiment.

CEO Commentary
Moshe Mizrahy, Co-Founder and CEO, spoke about the difficult landscape in the medical aesthetic market, especially in North America, where reduced spending has led to fewer treatments. He shared that the company is restructuring its sales team to boost market penetration, including launching a dedicated team for the ophthalmology market. Mizrahy remains confident in InMode's offerings, emphasizing its strong balance sheet and diversified portfolio. Despite current challenges, he stresses the importance of maintaining investment to stay competitive, seeing long-term market potential.

Guidance
InMode revised its revenue expectations for 2025 to between $365 million and $375 million, down from previous guidance of $395 million to $405 million. Non-GAAP gross margins are now projected between 78% and 80%, and non-GAAP income from operations is expected to be between $93 million and $98 million, revised from $101 million to $106 million. Non-GAAP earnings per diluted share are guided to be between $1.55 and $1.59, lowered from $1.64 to $1.68.

Additional News
InMode has been active in returning capital to shareholders, completing a recent share repurchase program of 6.95 million shares, which amounted to $127 million. This move underscores the company’s commitment to disciplined capital allocation and enhancing shareholder value. Additionally, the company has been focusing on strengthening its international presence, achieving record revenue in Europe during Q1 2025 despite challenging market conditions. InMode is also exploring strategic M&A opportunities and additional share repurchase programs to maximize long-term shareholder value. These initiatives highlight InMode's focus on maintaining a strong balance sheet and pursuing growth avenues amidst a challenging market environment.