Inspire Medical Systems (NYSE:INSP) Announces Earnings Results

Inspire Medical Systems (NYSE:INSP) released its quarterly earnings results on Wednesday. The company reported $1.65 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.69 by $0.96, Zacks reports. Inspire Medical Systems had a net margin of 5.05% and a return on equity of 9.41%. The company had revenue of $269.08 million during the quarter, compared to the consensus estimate of $264.02 million. During the same period in the prior year, the firm earned $1.15 earnings per share. Inspire Medical Systems’s revenue was up 12.2% on a year-over-year basis.

Here are the key takeaways from Inspire Medical Systems’ conference call:

• The company expects the Inspire 5 procedure to transition to CPT code 64582 with a -52 modifier, which management estimates could reduce the physician professional fee by roughly 10%–50%, creating uncertainty that may reduce physicians’ willingness to perform cases until claims data and payer decisions clarify the impact.
• Because of the coding uncertainty and potential physician fee cuts, Inspire widened its 2026 revenue guidance to $950M–$1.0B (4%–10% growth)
• Fourth-quarter revenue was $269M (up 12%) and full-year 2025 revenue was $912M (up 14%), with improved operating margins, strong cash/investments of $405M and $175M of share repurchases for the year, supporting financial flexibility.
• Inspire highlights strong clinical and commercial momentum for Inspire 5 — superior trial data (79.5% responder rate in Singapore vs 66% in STAR), reduced surgical time, low explant/revision rates, completed physician training and >90% of centers implanting Inspire 5 — and expects stable product inventory through 2026.
• The WISeR Medicare prior authorization pilot in six states has caused denials and disrupted some Q1 Medicare procedures; the company is supporting centers and developing a SleepSync prior-authorization feature to ease submissions but near-term headwinds remain.

Inspire Medical Systems Stock Up 0.5%

Shares of INSP stock opened at $68.50 on Thursday. The firm has a market cap of $1.99 billion, a price-to-earnings ratio of 46.60, a PEG ratio of 6.87 and a beta of 0.74. Inspire Medical Systems has a 12 month low of $64.46 and a 12 month high of $197.75. The stock has a 50-day moving average price of $96.03 and a 200 day moving average price of $91.70.

Trending Headlines about Inspire Medical Systems

Here are the key news stories impacting Inspire Medical Systems this week:

• Positive Sentiment: Q4 beat: EPS of $1.65 vs. Street ~$0.70 and revenue of $269.1M (+12% y/y), showing better-than-expected top- and bottom-line execution. Article Title
• Positive Sentiment: Strong full-year metrics and liquidity: 2025 revenue $912M (+14%), operating cash flow $117M, and $175M in share repurchases — supports cash generation and shareholder return capacity. Article Title
• Neutral Sentiment: Management commentary and detail available — full earnings-call transcript and slide deck provide color on Inspire V adoption, payer engagement and margin assumptions for 2026. Useful for modeling scenarios and hearing management’s mitigation plans. Article Title
• Negative Sentiment: Coding & reimbursement risk: Company said recent coding clarification points clinicians to CPT 64582 with a -52 modifier for Inspire V, which may lower physician reimbursement and slow procedure adoption; as a result management narrowed/revised 2026 revenue guidance to $950M–$1.0B (growth ~4%–10%), reflecting meaningful uncertainty. Article Title
• Negative Sentiment: Market reaction and positioning: Shares reportedly slid after the coding/guidance update (coverage noted a roughly 8% drop) and short interest rose materially in January to ~13.6% of float (up ~31%), increasing downside pressure and potential volatility. Article Title

Insider Activity at Inspire Medical Systems

In other news, Director Shawn Mccormick sold 2,000 shares of the company’s stock in a transaction dated Friday, November 28th. The shares were sold at an average price of $127.48, for a total transaction of $254,960.00. Following the transaction, the director owned 26,046 shares in the company, valued at approximately $3,320,344.08. This represents a 7.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 4.10% of the company’s stock.

Institutional Trading of Inspire Medical Systems

Several institutional investors have recently modified their holdings of INSP. Royal Bank of Canada grew its holdings in shares of Inspire Medical Systems by 16.0% during the 1st quarter. Royal Bank of Canada now owns 32,769 shares of the company’s stock worth $5,220,000 after purchasing an additional 4,528 shares during the period. Integrated Wealth Concepts LLC purchased a new stake in shares of Inspire Medical Systems during the 1st quarter worth $524,000. Goldman Sachs Group Inc. raised its position in shares of Inspire Medical Systems by 57.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 51,422 shares of the company’s stock worth $8,190,000 after purchasing an additional 18,857 shares during the last quarter. Marshall Wace LLP grew its position in shares of Inspire Medical Systems by 3.8% in the second quarter. Marshall Wace LLP now owns 15,905 shares of the company’s stock valued at $2,064,000 after purchasing an additional 577 shares during the period. Finally, Jump Financial LLC acquired a new position in shares of Inspire Medical Systems in the 2nd quarter valued at about $931,000. Institutional investors and hedge funds own 94.91% of the company’s stock.

Analysts Set New Price Targets

A number of brokerages have commented on INSP. KeyCorp reiterated a “sector weight” rating on shares of Inspire Medical Systems in a report on Tuesday, November 4th. Zacks Research upgraded shares of Inspire Medical Systems from a “strong sell” rating to a “hold” rating in a report on Monday, October 27th. Morgan Stanley reiterated an “equal weight” rating and issued a $130.00 price target (up previously from $105.00) on shares of Inspire Medical Systems in a research note on Tuesday, December 2nd. Robert W. Baird set a $74.00 target price on shares of Inspire Medical Systems in a research report on Thursday. Finally, Oppenheimer lowered Inspire Medical Systems from an “outperform” rating to a “market perform” rating in a research note on Thursday, January 22nd. Eight research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $122.82.

Inspire Medical Systems Company Profile

Inspire Medical Systems, Inc is a medical technology company specializing in implantable neurostimulation devices for the treatment of obstructive sleep apnea (OSA). The company’s flagship offering, the Inspire® system, delivers targeted stimulation of the hypoglossal nerve to maintain airway patency during sleep, providing an alternative therapy for patients who are intolerant of or inadequately managed by continuous positive airway pressure (CPAP) devices.

The Inspire system comprises an implantable pulse generator, a sensing lead that monitors breathing patterns, and a stimulation lead that activates the hypoglossal nerve.

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