Inspire Medical Systems, Inc. INSP delivered an earnings per share (EPS) of 10 cents in first-quarter 2025 against the year-ago period’s loss of 34 cents per share and the Zacks Consensus Estimate of a loss of 23 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

INSP’s Revenues in Detail

Inspire Medical registered revenues of $201.3 million in the first quarter, up 22.7% year over year. The figure beat the Zacks Consensus Estimate by 3.2%.

Per management, the overall revenue growth was primarily driven by increased market penetration in existing centers, expansion into new territories and centers and increased physician and patient awareness of the Inspire system. However, this was partially offset by ENT surgeon capacity constraints.

Shares of this company gained nearly 0.8% in yesterday’s after-hours trading.

Inspire Medical’s Segment Details

Inspire Medical’s operations consist of two geographic regions — the United States and All other countries.

In the quarter under review, U.S. revenues of $193.6 million reflected an increase of 24.3% from the year-ago quarter on a reported basis.

As of March 31, 2025, Inspire Medical had 343 U.S. sales territories and 245 field clinical representatives compared with 335 U.S. sales territories and 230 field clinical representatives as of Dec. 31, 2024.

Revenues from All other countries totaled $7.7 million, down 6.4% year over year on a reported basis.

Inspire Medical Systems, Inc. Price, Consensus and EPS SurpriseInspire Medical Systems, Inc. Price, Consensus and EPS Surprise

Inspire Medical Systems, Inc. price-consensus-eps-surprise-chart | Inspire Medical Systems, Inc. Quote

INSP’s Margin Analysis

In the first quarter, Inspire Medical’s gross profit increased 22.5% to $170.6 million. However, the gross margin contracted 16 basis points to 84.7%.

Selling, general and administrative expenses jumped 14.9% year over year to $144.3 million. Research and development expenses decreased 3.6% year over year to $27.8 million. Operating expenses of $172.1 million increased 11.4% year over year.

Operating loss totaled $1.5 million compared with the prior-year quarter’s operating loss of $15.2 million.

Inspire Medical’s Financial Position

Inspire Medical exited first-quarter 2025 with cash and cash equivalents and short-term investments of $369.2 million compared with $445.5 million at 2024-end.

Net cash used in operating activities at the end of first-quarter 2025 was $6.7 million against net cash provided by operating activities of $8.9 million a year ago.

INSP’s Outlook

Inspire Medical has reiterated its revenue outlook and upped the EPS guidance for 2025.

Story Continues

The company continues to project revenues in the range of $940 million-$955 million (representing growth of 17-19% from 2024 levels). The Zacks Consensus Estimate is pegged at $949.6 million.

The company now expects its EPS for 2025 to be between $2.20 and $2.30, up from the prior outlook of $2.10-$2.20. The Zacks Consensus Estimate is pegged at $2.16.

Our Take

Inspire Medical exited the first quarter of 2025 with better-than-expected results. The robust improvement of the top and bottom lines was impressive. Strength in year-over-year U.S. revenues was promising. The increased market penetration in existing centers, expansion into new territories and centers and increased physician and patient awareness of the Inspire system during the reported quarter were encouraging.

On the earnings call, Inspire Medical’s management stated that it continued to expand the limited market release of the Inspire V system in the United States. Management is currently on track to begin the full launch of the Inspire V system in the United States this month. Management has been witnessing patients waiting for the new device during the late first quarter, which continued into the second quarter. Combining this with centers working through the launch process, management expects the second quarter to be a transition quarter and expects revenues to grow mid to high single-digits sequentially. This looks promising for the stock.

However, lower revenues from All other countries were disappointing. The gross margin contracted due to rising product costs. This does not bode well for the stock.

Inspire Medical’s Zacks Rank and Key Picks

INSP currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space that have announced quarterly results are CVS Health Corporation CVS, Integer Holdings Corporation ITGR and Boston Scientific Corporation BSX.

CVS Health, carrying a Zacks Rank of 2 (Buy), reported first-quarter 2025 adjusted EPS of $2.25, beating the Zacks Consensus Estimate by 31.6%. Revenues of $94.59 billion outpaced the consensus mark by 1.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CVS Health has a long-term estimated growth rate of 11.4%. CVS’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.1%.

Integer Holdings reported first-quarter 2025 adjusted EPS of $1.31, beating the Zacks Consensus Estimate by 3.2%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%. It currently sports a Zacks Rank #1.

Integer Holdings has a long-term estimated growth rate of 18.4%. ITGR’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 2.8%.

Boston Scientific reported first-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 11.9%. Revenues of $4.66 billion surpassed the Zacks Consensus Estimate by 2.3%. It currently carries a Zacks Rank #2.

Boston Scientific has a long-term estimated growth rate of 13.3%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.8%.

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This article originally published on Zacks Investment Research (zacks.com).

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