Inspire Medical 2025 Q1 Earnings Strong Performance with Net Income Rebound

Inspire Medical (INSP) reported its fiscal 2025 Q1 earnings on May 05th, 2025. inspire medical exceeded expectations with a significant improvement in net income, achieving $2.99 million compared to a loss in the previous year. The company maintained its full-year revenue guidance of $940 million to $955 million, reflecting a 17% to 19% growth. The anticipated EPS range was raised to $2.20 to $2.30. This reflects Inspire Medical's positive outlook and confidence in its strategic plans.

Revenue
The total revenue of Inspire Medical increased by 22.7% to $201.32 million in 2025 Q1, up from $164.01 million in 2024 Q1.

Earnings/Net Income
Inspire Medical returned to profitability with EPS of $0.10 in 2025 Q1, reversing from a loss of $0.34 per share in 2024 Q1 (129.4% positive change). The company achieved a remarkable turnaround with net income of $2.99 million in 2025 Q1, representing a 129.9% positive swing from the net loss of $-10.01 million in 2024 Q1. This represents a strong EPS recovery.

Price Action
The stock price of Inspire Medical has edged down 0.10% during the latest trading day, has edged up 0.40% during the most recent full trading week, and has edged down 0.51% month-to-date.

Post-Earnings Price Action Review
The earnings report metrics had mixed results on Inspire Medical's stock price. The 3-Day win rate for earnings release is 47.62%, indicating that the stock price increases about half the time within three days of the release. However, the 10-Day win rate is lower at 42.86%, suggesting a potential decline in the medium term. Similarly, the 30-Day win rate is also 42.86%, indicating a likelihood of a long-term decline post-earnings. The maximum return observed following an earnings release was 8.79%, occurring on day 66. Overall, the earnings report metrics do not consistently lead to positive returns for insp stock price in various time frames.

CEO Commentary
Tim Herbert, President & Chief Executive Officer, emphasized the significant growth of Inspire Medical, surpassing 100,000 patients treated with Inspire therapy. He highlighted the successful limited market release of the Inspire V system, with plans for a full launch, which is expected to enhance therapy capabilities. Herbert noted, "We remain lightly penetrated in our target market," indicating ample growth opportunities. He expressed confidence in the company’s ability to transition smoothly to the new system while maintaining a strong focus on patient outcomes. Overall, his tone was optimistic, underscoring the commitment to expanding market access and medical education.

Guidance
Inspire Medical reiterates its full-year 2025 revenue guidance of $940 million to $955 million, reflecting a year-over-year growth of 17% to 19%. The company anticipates diluted net income per share in the range of $2.20 to $2.30, an increase from previous estimates. Tim Herbert indicated that the second quarter would serve as a transition period, with expected revenue growth in mid to high single-digits sequentially, while projecting a stronger performance for the second half of the year.

Additional News
Inspire Medical Systems, Inc. announced the appointment of Paul Hoff, M.D., M.S., and Ruchir Patel, M.D., F.A.C.P., as Vice Presidents, Senior Medical Directors. This strategic leadership change is expected to enhance the company's medical oversight and innovation. Additionally, Inspire Medical is set to present at the BofA Securities 2025 Health Care Conference on May 13, 2025, highlighting its innovative solutions for obstructive sleep apnea. These developments underscore the company’s commitment to leadership in the medical technology sector and its ongoing efforts to raise awareness and adoption of its Inspire therapy.

Ask Aime: How would Inspire Medical's Q1 earnings impact its stock price?