Inspire Medical Systems Reports 28.5% Revenue Growth and First Net Income for Fiscal Year 2024

Inspire Medical Systems, Inc. reported significant financial growth for the fiscal year ending December 31, 2024, achieving a revenue of $802.8 million, a 28.5% increase from $624.8 million in 2023. This growth was primarily driven by a $164.9 million increase in U.S. sales, attributed to enhanced market penetration and increased awareness of the Inspire system among physicians and patients. The company also recorded its first net income of $53.5 million, a substantial turnaround from a net loss of $21.2 million in the previous year. The gross margin remained stable at 84.7%, slightly up from 84.5% in 2023.

Operationally, Inspire Medical Systems expanded its sales territories, increasing from 285 to 335 in the U.S. and activating 1,435 medical centers for Inspire therapy by the end of 2024. The company also achieved a significant milestone with the completion of its ADHERE patient registry, which enrolled 5,000 patients, providing valuable data on the safety and effectiveness of its Inspire therapy. The company’s workforce grew by 23% to 1,246 employees, reflecting its commitment to scaling operations in response to increased demand.

Strategically, Inspire Medical Systems has focused on product innovation, receiving FDA approval for its next-generation Inspire system in August 2024, which is expected to launch in the U.S. in 2025. The company also expanded its indications, allowing for treatment of pediatric patients with Down syndrome and increasing the upper limit of the Apnea-Hypopnea Index (AHI) for eligible patients. These developments are anticipated to enhance the company’s market position and broaden its customer base.

Despite these advancements, Inspire Medical Systems faces challenges, including supply chain disruptions that have previously impacted inventory levels and revenue, particularly in the European market. The company has also noted potential competition from emerging therapies, such as glucagon-like peptide 1 (GLP-1) drugs, which may affect demand for Inspire therapy among patients with obesity-related obstructive sleep apnea. The company remains focused on expanding its market presence and enhancing its product offerings to mitigate these risks.

Looking ahead, Inspire Medical Systems is optimistic about its growth trajectory, supported by its strong financial position, with cash and cash equivalents totaling $516.5 million as of December 31, 2024. The company plans to continue investing in research and development, marketing, and expanding its sales force to drive adoption of its Inspire therapy. However, it acknowledges the need for ongoing monitoring of market conditions and competitive dynamics that could influence its future performance.