Inspire Medical Systems Reports 10.5% Revenue Growth in Q3 2025, Net Income Declines 46.3%

Inspire Medical Systems, Inc. reported its financial results for the third quarter of 2025, revealing a revenue increase of 10.5% to $224.5 million compared to $203.2 million in the same period last year. For the nine months ended September 30, 2025, revenue reached $642.9 million, a 14.2% increase from $563.1 million in the prior year. The company attributed this growth primarily to increased market penetration and heightened awareness of its Inspire system, although it noted that some patients and physicians delayed therapy until the availability of the new Inspire V system.

Despite the revenue growth, Inspire Medical Systems experienced a decline in net income, which fell to $9.9 million for the third quarter, down 46.3% from $18.5 million in the same quarter of 2024. For the nine-month period, net income was $9.3 million, a decrease of 49% from $18.3 million in the previous year. The decline in profitability was influenced by increased selling, general, and administrative expenses, which rose by 21.8% to $158.9 million in the third quarter, driven by higher marketing costs and employee-related expenses.

Operationally, Inspire Medical Systems reported a gross margin of 85.8% for the third quarter, an improvement from 84.1% in the prior year, attributed to a favorable sales mix with the introduction of the Inspire V system. The company also noted a significant increase in its inventory levels, which rose to $141.8 million, reflecting preparations for the launch of Inspire V and to mitigate potential supply chain disruptions. As of September 30, 2025, the company had 336 U.S. sales territories and 268 field clinical representatives, an increase from 335 and 230, respectively, at the end of 2024.

Looking ahead, Inspire Medical Systems anticipates continued revenue growth, although it expects some short-term impacts from the transition to the Inspire V system and the ongoing effects of macroeconomic conditions, including inflation and supply chain challenges. The company remains focused on expanding its market presence and enhancing its product offerings, with plans to invest further in research and development to support future innovations and regulatory submissions. As of September 30, 2025, Inspire Medical Systems had cash, cash equivalents, and investments totaling $410.9 million, providing a solid liquidity position to support its operational needs and strategic initiatives.