Inspire Medical Q1 revenue beats estimates

Overview

• U.S. sleep apnea device maker's Q1 revenue rose 1.6%, beating analyst expectations

• Adjusted diluted EPS for Q1 was $0.10; GAAP diluted EPS was a loss of $0.39

• Company cites reimbursement disruption and WISeR program as factors limiting revenue growth

Outlook

• Inspire Medical Systems sees 2026 revenue between $825 mln and $875 mln, down 4%-10% vs 2025

• Company expects 2026 adjusted operating margin of 2%-4% and adjusted diluted EPS of $0.75-$1.25

• Company anticipates coding and reimbursement uncertainty to persist through 2026, impacting results

Result Drivers

• REIMBURSEMENT DISRUPTION - Co said revenue growth was limited by disruption from coding and reimbursement uncertainty and the WISeR program

• PRODUCT MIX - Gross margin improved due to increased sales mix of the Inspire V system, which has a higher margin than the Inspire IV system

• CODING CHALLENGES - Co said loss of a key CPT code for Medicare reimbursement required physicians and staff to navigate coding alternatives, creating ongoing uncertainty

Company press release: ID:nGNX4ZK96q

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 13 "hold" and no "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 $70.00, about 23.5% above its May 1 closing price of $56.70

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 44 three months ago

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