Israel's InMode Q1 adjusted profit misses, hurt by higher costs

InMode

06/05/2026 12:15

Overview

Israel medical device maker's Q1 revenue rose 5%, beating analyst expectations

Adjusted EPS and net income for Q1 missed analyst expectations

Company completed $34.8 mln share repurchase and announced CFO and board changes

Outlook

InMode expects 2026 revenue between $365 mln and $375 mln

Company sees 2026 non-GAAP EPS between $1.33 and $1.38

InMode expects 2026 non-GAAP gross margin of 74%-76%

Result Drivers

HIGHER COSTS - Co said lower margins were primarily due to increased cost of goods, new North America sales team structure, and subsidiary establishments

SOFTER MARKET - Management said macroeconomic environment remains challenging and demand in the aesthetics market may be deferred

U.S. GROWTH - U.S. market contributed meaningfully to Q1 revenue growth, per CFO Yair Malca

Company press release: ID:nPnCGDGwa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$82.02 mln
$80.20 mln (6 Analysts)
Q1 EPS
Miss
$0.18
$0.30 (6 Analysts)
Q1 Net Income
Miss
$11.56 mln
$19.10 mln (4 Analysts)
Q1 Gross Margin
75.00%
Q1 Income from Operations
Miss
$10.06 mln
$16.17 mln (5 Analysts)
Q1 Pretax Profit
Miss
$14.35 mln
$21.21 mln (4 Analysts)
Q1 Operating Expenses
$51.50 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the advanced medical equipment & technology peer group is "buy."

Wall Street's median 12-month price target for Inmode Ltd is $16.00, about 11.1% above its May 5 closing price of $14.40

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)