InMode Ltd.'s Q2 2025: Contradictions Unveiled on Economic Outlook, Gross Margins, and Capital Equipment Sales

Economic outlook and market conditions, tariff impact on gross margins, capital equipment sales and market dynamics, macroeconomic conditions impact on sales, capital equipment sales trends are the key contradictions discussed in InMode Ltd.'s latest 2025Q2 earnings call.



Revenue and Market Conditions:
- InMode reported total revenue of $95.6 million for Q2 2025, with 84% of sales from minimally invasive platforms.
- Despite a challenging macroeconomic environment, the company saw an 11% year-over-year increase in sales outside the U.S., with Europe being the largest geographical revenue contributor at $23 million.
- Revenue growth was driven by strong performance in international markets, particularly Europe, and the introduction of new platforms in the wellness space.

Guidance Adjustment:
- InMode adjusted its full-year 2025 revenue guidance to between $365 million to $375 million, down from the previous guidance of $395 million to $405 million.
- This adjustment reflects the continued slowdown in the medical aesthetics market, particularly in North America, due to reduced personnel spending and fewer treatments.

Tariff Impact and Cost Management:
- InMode anticipates a 2% to 3% impact on gross margins due to the current 10% tariff on U.S. imports, although there is an expectation that this may be reduced or resolved by end of August.
- The company is focusing on cost management and has not planned for significant cuts to its workforce, but rather adjusting costs in manufacturing and logistics to maintain competitiveness.

Product and Market Expansion:
- The company has expanded its global footprint to directly operate in Thailand and Argentina to enhance local customer support and streamline operations.
- The introduction of new platforms focused on increased blood circulation, pain relief, and collagen building for the urology community is expected to contribute to revenue in the fourth quarter.