Inspire Medical Systems, Inc. reported a revenue of $204.6 million for the first quarter of 2026, reflecting a 1.6% increase from $201.3 million in the same period of the previous year. The company experienced a gross profit of $176.9 million, resulting in a gross margin of 86.5%, up from 84.7% in the prior year, primarily due to a higher sales mix of the Inspire V system, which has a superior gross margin compared to its predecessor. However, the company recorded a net loss of $11.3 million, a significant decline from a net profit of $3.0 million in the first quarter of 2025, largely attributed to increased income tax expenses and lower other income.
Operating expenses for the quarter totaled $178.0 million, an increase of 3.4% from $172.1 million in the previous year. Research and development expenses decreased by 7.1% to $25.8 million, while selling, general, and administrative expenses rose by 5.5% to $152.2 million, driven by higher payroll costs and legal fees. The effective tax rate surged to 571.2% from 28.1% in the prior year, primarily due to shortfalls related to stock-based compensation, which were influenced by a decline in stock price at the time of vesting.
In terms of operational metrics, Inspire Medical Systems had 284 U.S. sales territories and 288 field clinical representatives as of March 31, 2026, compared to 295 territories and 275 representatives at the end of 2025. The company continues to face challenges related to coding and reimbursement for its Inspire V therapy, which has adversely impacted revenue. The introduction of the Wasteful and Inappropriate Service Reduction Model (WISeR) program has also contributed to delays in revenue generation.
Looking ahead, Inspire Medical Systems anticipates ongoing challenges in revenue due to the uncertainty surrounding reimbursement coding and the impact of GLP-1 medications on the treatment landscape for obstructive sleep apnea. The company is actively engaging with stakeholders to address these issues and is focused on optimizing its sales and marketing strategies to drive adoption of its Inspire therapy. Despite the current challenges, Inspire remains committed to expanding its market presence and enhancing its product offerings.
About Inspire Medical Systems, Inc.
Inspire Medical Systems develops and commercializes minimally invasive neurostimulation devices for obstructive sleep apnea (OSA). Its proprietary Inspire system uses closed-loop hypoglossal nerve stimulation to maintain airway openness, offering a safe, effective alternative to CPAP. The company targets sleep centers and ENT physicians globally, emphasizing clinical data, patient compliance, and reimbursement strategies to expand access and improve patient outcomes.
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