Inspire Medical Q2 revenue falls less than expected

Inspire Medical Systems

03/08/2026 21:10

Overview
US sleep apnea device maker's Q2 revenue fell 7.6% yr/yr but beat analyst expectations
Adjusted diluted EPS for Q2 beat analyst expectations
Company announced Project Horizon to redeploy $30 mln for growth initiatives

Outlook
Inspire Medical Systems raises 2026 revenue outlook to $835 mln-$875 mln
Company expects 2026 adj operating margin of 4%-6% and adj diluted EPS of $1.05-$1.45
Company expects majority of restructuring actions to be completed in Q3, all by end-2026

Result Drivers
CODING AND REIMBURSEMENT CHALLENGES - Co said Q2 U.S. revenue decline was mainly due to evolving coding and reimbursement environment
PRODUCT MIX - Gross margin increased due to higher sales mix of Inspire V system, which has a higher gross margin than Inspire IV system
COST REDUCTIONS - Operating expenses fell due to lower stock-based compensation and reduced marketing costs

Company press release: ID:nGNX6FLVWx

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$200.60 mln
$194.67 mln (16 Analysts)
Q2 Adjusted EPS
Beat
$0.14
-$0.27 (9 Analysts)
Q2 EPS
 
$0.01
 
Q2 Net Income
 
$314,000
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 12 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy."
Wall Street's median 12-month price target for Inspire Medical Systems Inc is $55.00, about 9.5% above its July 31 closing price of $50.21
The stock recently traded at 61 times the next 12-month earnings vs. a P/E of 27 three months ago

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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.)