Inspire Medical Systems, Inc. Announces Third Quarter 2026 Financial Results

(NYSE:INSP) Inspire Medical Systems, Inc. reported financial results for the quarter ended September 30, 2026. Revenue for the third quarter of 2026 decreased 7.9% to $206.7 million, primarily due to a decline in U.S. revenue driven by coding and reimbursement challenges. Gross margin increased by 20 basis points to 86.0%, attributed mainly to a higher sales mix of the Inspire V system, which carries a higher gross margin than the Inspire IV system. Operating expenses rose by $23.5 million, or 12.8%, to $206.6 million, mainly due to $24.1 million in restructuring charges, a legal settlement expense of $7.0 million, and higher legal fees, partially offset by lower marketing and stock-based compensation expenses. Operating loss for the quarter was $28.7 million, with an operating margin of (13.9)%. Adjusted operating income was $1.9 million, and adjusted operating margin was 0.9%. The effective tax rate was 2.5%, down from 26.7%, primarily due to the current period pre-tax loss and discrete tax charges related to restructuring. Net loss for the quarter was $24.4 million, while adjusted net earnings were $4.1 million. Diluted earnings per share (EPS) was $(0.84), and adjusted diluted EPS was $0.14. Net cash provided by operating activities for the quarter was $46.4 million, compared to $68.5 million in the prior year period, with the decrease mainly due to lower net earnings and lower collections on receivables. As of September 30, 2026, cash, cash equivalents, and investments increased by $48.5 million to $453.1 million compared to December 31, 2025. The company narrowed its full-year 2026 revenue guidance to a range of $850 million to $860 million, compared to the previous range of $835 million to $875 million. Adjusted operating margin for the full year is now expected to be between 4.5% and 5.5%. Diluted EPS is projected to be in the range of $(0.36) to $(0.10), and adjusted diluted EPS is expected to be between $1.20 and $1.40. The outlook assumes an effective tax rate of approximately 120% to 175% and an adjusted effective tax rate of 33% to 34%, with estimated weighted average diluted shares outstanding of approximately 28.9 million and capital expenditures between $35 million and $40 million. The AMA Editorial Panel approved a new Category I CPT code for single lead hypoglossal nerve stimulation devices, including Inspire V, set to take effect January 1, 2028. Tim Herbert, Chairman and CEO, stated that the company is focused on education initiatives and executing strategic priorities, and highlighted the approval of the new CPT code and investment in revenue growth initiatives through Project Horizon as positioning the company well for future growth. The company will host a conference call on November 2, 2026, at 5:00 p.m. Eastern Time to discuss these results.

Inspire Medical Systems, Inc. Announces Retirement of Casey M. Tansey from its Board of Directors

(NYSE: INSP) Inspire Medical Systems, Inc. announced the retirement of Casey M. Tansey from the Inspire Board after more than eighteen years of service, effective July 30. Mr. Tansey represented U.S. Venture Partners and led Inspire’s Series A financing in November 2007. He has served on the Inspire Board of Directors since that time. Inspire Medical Systems is a medical technology company focused on innovative, minimally invasive solutions for patients with obstructive sleep apnea (OSA). Inspire’s proprietary Inspire therapy is the first FDA-, EU MDR- and PDMA-approved neurostimulation technology for moderate to severe obstructive sleep apnea. The company expects to announce the appointment of a new Director to replace Mr. Tansey in the near future. Tim Herbert is the Chairman and Chief Executive Officer of Inspire Medical Systems.

Inspire Medical Systems, Inc. to Participate in the Wells Fargo 2026 MedTech Innovation Spotlight

(NYSE:INSP) Inspire Medical Systems, Inc. announced that its management team will participate in the Wells Fargo 2026 MedTech Innovation Spotlight on Friday, June 26, 2026. Inspire is scheduled to speak at 10:00 a.m. Eastern Time. The presentation will be accessible via a live webcast. A webcast replay of the presentation will be available for two weeks following the presentation in the Event Archive section of Inspire’s Investor website. Inspire’s proprietary Inspire therapy is the first FDA, EU MDR, and PDMA-approved neurostimulation technology that provides a safe and effective treatment for moderate to severe obstructive sleep apnea.