Inspire Medical Q3 revenue falls, narrows outlook

Overview

• US sleep apnea device maker's Q3 revenue fell 7.9% yr/yr but beat analyst expectations

• Revenue decline driven by US coding and reimbursement challenges

Outlook

• Inspire Medical narrows 2026 revenue outlook to $850 mln-$860 mln

• Company expects 2026 adjusted operating margin of 4.5%-5.5%

• Inspire Medical forecasts 2026 adjusted diluted EPS of $1.20-$1.40

Result Drivers

• CODING AND REIMBURSEMENT CHALLENGES - Co said US revenue decline was primarily driven by adverse impacts of coding and reimbursement

• SALES MIX SHIFT - Co said gross margin increased due to higher sales mix of Inspire V system, which has a higher margin than Inspire IV

• RESTRUCTURING AND LEGAL COSTS - Co said operating expenses rose due to restructuring charges and legal settlement and fees

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 11 "hold" and 3 "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 $65.00, about 4.6% below its October 30 closing price of $68.10

• The stock recently traded at 56 times the next 12-month earnings vs. a P/E of 61 three months ago

Reuters Recommended Reads

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(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.)