Inspire Medical Systems, Inc.

inspiresleep.com

What Do They Do?

Sells an implanted neurostimulation system that monitors breathing and stimulates the tongue to keep airways open for people with obstructive sleep apnea, to hospitals and ambulatory surgery centers.

How Do They Make Money?

Hospitals, surgery centers and distributors pay for Inspire systems when the systems ship or are received, depending on shipping terms.

FY2025 revenue

Who Are Their Customers?

Hospitals and ambulatory surgery centers purchase the system. Inspire sells directly in the U.S. and select countries in Europe and Japan, and through distributors in Singapore, Hong Kong and Thailand.

Do Revenues Turn Into Profits?

Yes. It kept 16 cents of every revenue dollar as net income in FY2025 and turned 9 cents into free cash flow.

Operating income, FY2025

6% of revenue

▲ +41% vs FY2024 ($36.1M, 4%)

Net income, FY2025

16% of revenue

▲ +172% vs FY2024 ($53.5M, 7%)

Free cash flow, FY2025

9% of revenue

▼ −14% vs FY2024 ($91.1M, 11%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▼ −8%; vs $217.1M in Q2 FY2025
Net income: ▲ Now profitable; vs −$3.6M in Q2 FY2025

Aug 3, 2026 Raised revenue outlook and announced a strategic growth plan Project Horizon is expected to direct approximately $30 million of annualized investment capacity to growth initiatives.
May 4, 2026 Revised financial outlook amid coding and reimbursement disruption The company projected revenue down 4% to 10% from 2025 and expected reimbursement-related challenges through the balance of 2026.

Growing. Revenue grew 3.9x in 4 years, from $233.4M in FY2021 to $912M in FY2025, about 41% a year.

Next-generation system The older report said a next-generation neurostimulator was in development; the latest says that system has FDA approval and is marketed in the U.S.

Broader patient eligibility The older report described proposed eligibility expansions; the latest says the company received approval to treat certain pediatric patients with Down syndrome and broadened patient labeling.

International sales channels The older report described distributor sales in Japan and Singapore; the latest describes direct sales coverage in Japan and distributor channels in Singapore, Hong Kong and Thailand.

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