Inspire Medical beat Q2 estimates with $244.5M in revenue, raised its 2026 forecast to $970M–$985M, and added 62 new U.S. implanting centers during the quarter.
Alpha Score of 40 reflects weak overall profile with moderate momentum, poor value, moderate quality, moderate sentiment.
Inspire Medical Systems Inc. beat second-quarter revenue and earnings estimates and raised its full-year 2026 revenue forecast, driven by a higher number of U.S. patient implants and a growing base of active centers.
The company posted adjusted earnings of 56 cents a share for the three months ended June 30, ahead of the 47 cents analysts had expected. Revenue rose 16% from a year earlier to $244.5 million, topping the consensus estimate of $238.6 million.
Inspire now expects 2026 revenue in a range of $970 million to $985 million, up from its prior forecast of $960 million to $980 million. The midpoint of the new range, $977.5 million, sits above the $971.4 million analysts had been projecting.
U.S. revenue was $233.3 million, up 16% year over year. International revenue rose 3% to $11.2 million. The company reported a gross margin of 82.9%, up from 82.3% in the same period last year.
Tim Herbert, the company's CEO, said on the call that the quarter's performance was driven by "strong execution across our commercial organization" and continued adoption of the Inspire therapy at new and existing centers.
Inspire added 62 new U.S. implanting centers in the quarter, bringing its total to 1,035. The number of active accounts – centers that have implanted at least one patient in the prior 12 months – rose to 1,021. The company said 61 sales representatives were hired during the quarter, putting its total field sales force at 420.
The company's therapy, a surgically implanted device that treats obstructive sleep apnea by stimulating the airway during sleep, competes with CPAP machines made by ResMed Inc. and Philips Respironics. Inspire's total addressable market includes roughly 8 million U.S. patients who have either failed or cannot tolerate CPAP therapy, the company has said.
Operating expenses rose 11% to $194.5 million, driven by higher selling, general and administrative costs. The company reported operating income of $8.1 million, a swing from an operating loss of $6.7 million a year earlier.
Inspire ended the quarter with $625.3 million in cash, cash equivalents and investments. The company generated $7.6 million in cash from operations during the period.
The company's stock market analysis page shows the stock rose 0.24% on the day to $352.64, with an Alpha Score of 66 out of 100, a Moderate rating. That places it in the middle tier of the scoring system, which weighs momentum, valuation and earnings quality.
Inspire's guidance assumes continued U.S. implant growth and stable pricing. The company did not provide a formal earnings-per-share outlook for the full year. The next quarterly report is due in early November.
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