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Inspire Medical Systems (INSP)
NYSE:INSP
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Inspire Medical Systems
(NYSE:INSP)
Rating:67Neutral
Price Target:
$140.00
â–²(10.08%Upside)
Positive Factors
Financial Performance
Inspire Medical reported a 1Q sales beat with a significant improvement in operating margin.
Market Confidence
INSP remains confident on hitting its original 2025 revenue guide, with patient demand robust.
Product Launch
The full launch of Inspire V could represent a driver of long-term growth.
Negative Factors
Competitive Pressure
LIVN's OSPREY study included patients with complete concentric collapse, whereas INSP's pivotal studies excluded these patients, potentially giving LIVN a competitive advantage.
Market Volatility
The 4Q-weighted guidance may add incremental near-term volatility to shares despite solid 1Q results.
Sales Forecast
Q2 sales will be below prior expectations, implying sales of $213-$217MM vs. prior consensus of $228MM.
Inspire Medical Systems (INSP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.75B
Dividend YieldN/A
Average Volume (3M)560.72K
Price to Earnings (P/E)58.6
Beta (1Y)0.78
Revenue Growth27.11%
EPS GrowthN/A
CountryUS
Employees1,246
SectorHealthcare
Sector Strength58
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.10
Shares Outstanding29,493,923
10 Day Avg. Volume607,585
30 Day Avg. Volume560,716
Financial Highlights & Ratios
PEG Ratio-40.44
Price to Book (P/B)14.26
Price to Sales (P/S)0.00
P/FCF Ratio2.86K
Enterprise Value/Market Cap0.47
Enterprise Value/Revenue0.57
Enterprise Value/Gross Profit2.49
Enterprise Value/Ebitda10.92
Forecast
1Y Price Target
$215.83Price Target Upside69.70% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
Inspire Medical Systems Business Overview & Revenue Model
Company DescriptionInspire Medical Systems, Inc. is a leading medical technology company specializing in innovative solutions for sleep apnea. The company primarily focuses on the development and commercialization of minimally invasive neurostimulation technologies aimed at treating obstructive sleep apnea (OSA). Inspire's flagship product, the Inspire system, is an FDA-approved implantable device designed to provide a safe and effective treatment for OSA patients who are unable to use traditional continuous positive airway pressure (CPAP) therapy.
How the Company Makes MoneyInspire Medical Systems generates revenue primarily through the sale of its Inspire therapy system to hospitals and medical centers. The company's revenue model is based on the direct sales of its implantable devices to healthcare providers who perform the implantation procedure. Inspire also derives income from training and support services offered to physicians and medical staff to ensure the effective use of its products. Additionally, reimbursement from insurance providers and Medicare plays a significant role in the company's revenue stream, as it facilitates patient access to Inspire's therapy. Key partnerships with medical institutions and collaborations with healthcare professionals further contribute to the adoption and sales of Inspire's technology.
Inspire Medical Systems Earnings Call Summary
Earnings Call Date:May 05, 2025
(Q1-2025)
| % Change Since: -19.88%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong start to the year with significant revenue growth, profitability, and a strategic launch of the new Inspire V system. However, there are some concerns about short-term revenue impacts due to transition challenges and international sales decline. Overall, the long-term outlook remains positive with increased guidance and strategic initiatives in place.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Revenue for Q1 2025 reached $201.3 million, a 23% increase compared to Q1 2024. U.S. revenue increased by 24% year-over-year.
Profitability Achievement
Net income for Q1 2025 was $3 million, compared to a net loss of $10 million in Q1 2024. This represents a diluted net income of $0.1 per share versus a net loss of $0.34 per share previously.
Inspire V System Full Launch
The Inspire V system will be fully launched in the U.S. this month. It incorporates new technology and capabilities, which have been well received by healthcare providers.
Significant Milestone in Patient Care
Inspire surpassed 100,000 patients receiving therapy since inception, highlighting the significant reach and impact of their treatment.
Increased EPS Guidance
Full year 2025 EPS guidance increased to a range of $2.2 to $2.3 per share, up from prior guidance of $2.1 to $2.2 per share.
Negative Updates
Inventory and Transition Challenges
The transition to the Inspire V system is expected to cause Q2 to be a transition quarter, with revenue growth only in the mid to high single-digits sequentially due to inventory destocking and patient warehousing.
International Revenue Decline
Revenue outside the U.S. was $7.7 million, a 6% decrease year-over-year, attributed to prior year demand influenced by supply shortages.
Potential Delays in Procedure Volume
Some patients have been waiting for the new Inspire V device, potentially affecting short-term procedure volumes.
Company Guidance
In the first quarter of 2025, Inspire Medical Systems reported impressive financial results, achieving a revenue of $201.3 million, which marks a 23% increase compared to the same period in 2024. Additionally, the company saw a net income of $3 million, translating to $0.1 per diluted share, a significant improvement from the $10 million net loss, or $0.34 per share, experienced in the first quarter of the previous year. Looking forward, Inspire reaffirmed its full-year 2025 revenue guidance, projecting it to be between $940 million and $955 million, which would represent a 17% to 19% growth over the previous year. Furthermore, they adjusted their diluted net income per share guidance upward to a range of $2.2 to $2.3. The company is optimistic about the full launch of its Inspire V system, which is anticipated to drive revenue growth in the latter half of the year. The gross margin for the quarter was stable at 84.7%, and they ended the quarter with a strong cash position of $414 million, despite share repurchases and other investments.Inspire Medical Systems Financial Statement Overview
Summary
Inspire Medical Systems demonstrates strong financial performance with robust revenue growth and profitability. The company shows impressive revenue increases and margin improvements, though attention is needed on maintaining high free cash flow growth and stockholders' equity.Income Statement
Inspire Medical Systems shows robust growth with a strong revenue increase, evidenced by a TTM revenue growth rate of 4.65% and a significant improvement from past negative net income to a positive $66.51 million in TTM. Gross and net profit margins are healthy at 84.64% and 7.92%, respectively. The EBIT and EBITDA margins have improved to 5.93% and 9.27%, indicating better operational efficiency. Overall, the company demonstrates strong revenue growth and improving profitability.85
Very Positive
Balance Sheet
The company maintains a strong equity position with a high equity ratio of 86.98%, indicating financial stability. The debt-to-equity ratio is low at 0.05, showcasing conservative leverage. Return on equity has significantly improved, reflecting enhanced profitability and asset utilization. However, the slight decline in stockholders' equity over the last reported period necessitates monitoring.80
Positive
Cash Flow
Inspire Medical Systems has shown a positive trend in cash flow generation, with a substantial increase in free cash flow for the TTM at $78.85 million, although the growth rate has slowed down compared to the previous year. Operating cash flow to net income ratio is strong at 1.72, indicating efficient cash generation relative to earnings. While the free cash flow to net income ratio is also positive at 1.19, the drop in operating cash flow over the last year is a concern that needs attention.78
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 840.11M | 802.80M | 624.80M | 407.86M | 233.39M | 115.38M | Gross Profit |
| 711.17M | 679.82M | 528.22M | 341.74M | 200.12M | 97.76M | EBIT |
| 49.82M | 36.08M | -40.27M | -47.59M | -39.85M | -56.21M | EBITDA |
| 77.92M | 65.03M | -17.06M | -39.69M | -38.62M | -53.16M | Net Income Common Stockholders |
| 66.51M | 53.51M | -21.15M | -44.88M | -42.04M | -57.20M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 53.88M | 445.55M | 460.38M | 451.41M | 214.47M | 234.36M | Total Assets |
| 730.81M | 808.38M | 676.81M | 564.88M | 295.08M | 281.19M | Total Debt |
| 31.49M | 31.79M | 24.85M | 8.87M | 33.78M | 30.63M | Net Debt |
| -22.39M | -118.36M | -160.69M | -432.72M | -180.68M | -159.89M | Total Liabilities |
| 95.07M | 118.69M | 104.30M | 68.87M | 66.04M | 51.44M | Stockholders Equity |
| 635.74M | 689.70M | 572.51M | 496.01M | 229.05M | 229.75M |
| Cash Flow | Free Cash Flow | ||||
| 78.85M | 91.12M | 1.02M | 2.47M | -24.79M | -55.50M | Operating Cash Flow |
| 114.68M | 130.25M | 24.65M | 11.57M | -20.12M | -53.05M | Investing Cash Flow |
| -95.14M | -113.12M | -294.82M | -19.60M | 29.14M | 86.63M | Financing Cash Flow |
| -140.92M | -52.39M | 13.95M | 235.08M | 14.95M | 134.06M |
Inspire Medical Systems Technical Analysis
Negative
127.18
Price Trends
147.38
Negative
162.58
Negative
179.03
Negative
Market Momentum
-5.75
Positive
27.18
Positive
10.29
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INSP, the sentiment is Negative. The current price of 127.18 is below the 20-day moving average (MA) of 139.57, below the 50-day MA of 147.38, and below the 200-day MA of 179.03, indicating a bearish trend. The MACD of -5.75 indicates Positive momentum. The RSI at 27.18 is Positive, neither overbought nor oversold. The STOCH value of 10.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INSP.
Inspire Medical Systems Risk Analysis
Inspire Medical Systems disclosed 59 risk factors in its most recent earnings report. Inspire Medical Systems reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Inspire Medical Systems Peers Comparison
Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.13B | 56.13 | 4.98% | ― | 7.41% | -22.10% | |
71 Outperform | $3.96B | 33.01 | 13.90% | ― | 247.53% | 118.34% | |
67 Neutral | $3.75B | 58.61 | 10.86% | ― | 27.11% | ― | |
64 Neutral | $4.59B | ― | -111.13% | ― | 20.54% | 25.73% | |
59 Neutral | $4.65B | ― | -32.05% | ― | 43.72% | 28.63% | |
54 Neutral | $5.37B | 3.26 | -45.10% | 3.30% | 16.81% | 0.02% | |
42 Neutral | $4.11B | ― | 435.49% | ― | 412.21% | 1.75% |
* Healthcare Sector Average
Performance Comparison
INSP
Inspire Medical Systems
127.18
-36.49
-22.29%
CYTK
Cytokinetics
34.38
-18.40
-34.86%
ITGR
Integer Holdings
118.30
1.00
0.85%
IRTC
Irhythm Technologies
143.85
48.10
50.23%
ZLAB
Zai Lab
41.00
22.02
116.02%
KRYS
Krystal Biotech
137.07
-40.64
-22.87%
Inspire Medical Systems Corporate Events
Product-Related Announcements
Inspire Medical Systems Launches Inspire V for OSA
Positive
Jun 13, 2025
Inspire Medical Systems announced the full launch of Inspire V in May 2025, highlighting its advanced accelerometer-based sensing technology for treating obstructive sleep apnea (OSA). This innovation simplifies the implant procedure and enhances therapy effectiveness by accurately timing stimulation during the most vulnerable phases of the breathing cycle, potentially improving patient outcomes and reducing the need for revisions.
The most recent analyst rating on (INSP) stock is a Hold with a $170.00 price target. To see the full list of analyst forecasts on Inspire Medical Systems stock, see the INSP Stock Forecast page.
Product-Related AnnouncementsExecutive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Inspire Medical Systems Reports Strong Q1 2025 Revenue Growth
Positive
May 5, 2025
Inspire Medical Systems reported a 23% increase in revenue for the first quarter of 2025, reaching $201.3 million, and achieved a gross margin of 84.7%. The company also announced the appointment of new senior medical directors and plans to launch the Inspire V system in the U.S. This growth and strategic expansion reflect Inspire’s strong market positioning and commitment to increasing awareness and adoption of its therapy, impacting stakeholders positively by enhancing profitability and operational leverage.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.