InMode 2025 Q3 Earnings Revenue Drops 28.5%, Net Income Falls 57.1%

InMode (INMD) reported fiscal 2025 Q3 earnings on November 6, 2025, with total revenue declining to $93.17 million, a 28.5% drop year-over-year. The company maintained its full-year 2025 revenue guidance of $365–$375 million despite the quarterly shortfall. While revenue beat consensus estimates by $4.83 million, net income of $21.86 million and EPS of $0.35 both missed expectations, reflecting ongoing operational challenges.

Revenue

Capital Equipment revenue amounted to $73.27 million, while Consumables and service revenue totaled $19.90 million. Together, these segments contributed to the total revenue of $93.17 million. The decline in revenue was driven by the absence of $31.9 million in pre-order sales from the prior year’s quarter and reduced U.S. sales, which impacted operating margins.

Earnings/Net Income

InMode’s EPS declined 47.0% to $0.35 in 2025 Q3 from $0.66 in 2024 Q3. Meanwhile, the company’s net income declined to $21.86 million in 2025 Q3, a 57.1% drop from $50.99 million in 2024 Q3. Despite sustained profitability over eight fiscal quarters, the significant declines in both metrics highlight recent operational headwinds.

Post-Earnings Price Action Review

The strategy of buying InMode shares on the date of its revenue raise and holding for 30 days showed mixed performance over the past three years. While the first year yielded a 14.87% gain and the third year a modest 5.43% gain, the second year resulted in a 12.50% loss. The largest single-day gain of 6.78% occurred on the revenue raise date, underscoring market optimism. However, volatility persisted, with a peak-to-trough decline of 11.92% during the second year. Investors should weigh these fluctuations against their risk tolerance before adopting the strategy.

Guidance

Management reaffirmed full-year 2025 revenue guidance of $365–$375 million and non-GAAP EPS of $1.55–$1.59. Non-GAAP gross margin is expected to remain between 78% and 80%, while non-GAAP operating income is projected at $93–$98 million.

Additional News

InMode appointed Michael Dennison as president of North America, signaling a strategic focus on regional growth. The company also highlighted cautious consumer demand and ongoing monitoring of geopolitical developments in Israel. Analysts noted that while U.S. sales declines hurt margins, consumables revenue grew 26% year-over-year, offering a glimmer of resilience.

[CEO Commentary]

CEO Yossi Maim emphasized the company’s long-term value proposition amid near-term challenges, noting strong fundamentals and discounted valuation as key drivers for future growth.