Inspire Medical Systems' Q2 2025: Key Contradictions on Revenue Growth, Medicare Billing, and Patient Trends

Inspire V transition and impact on revenue, Medicare billing and revenue impact, impact of GLP-1s on patient volume, patient flow and utilization trends, Inspire V transition and patient flow are the key contradictions discussed in Inspire Medical Systems' latest 2025Q2 earnings call.



Inspire V Launch Challenges and Revenue Guidance Adjustment:
- Inspire Medical Systems faced challenges with the rollout of the Inspire V system, resulting in a 4% reduction in full-year revenue guidance to $900 million to $910 million from $940 million to $955 million.
- The challenges included a slower-than-expected transition of centers to Inspire V, billing delays for Medicare patients, and increased marketing and footprint expansion costs.

Patient Flow and Surgery Complexity Reduction:
- U.S. centers that have transitioned to Inspire V experienced a more than 20% increase in patient implants in the first half of 2025 compared to the same period in 2024.
- This increase was attributed to reduced surgical complexity with Inspire V, eliminating the need for a pressure sensing lead, which improved surgeon capacity.

Mandatory Center Training and Software Updates:
- Many centers did not complete the required training, implementation of SleepSync, and onboarding criteria before the purchase and implant of Inspire V.
- This delay contributed to the slower-than-expected transition to the new system, as the approval process from centers' IT departments took longer than expected.

Medicare Billing and CPT Code Adoption:
- The approval of CPT code 64568 for Inspire V for Medicare patients was announced in April, with a retroactive effective date of January 1, 2025.
- However, the software updates for claims submissions and processing did not take effect until July 1, delaying the ability of centers to bill procedures involving Medicare patients.