Inogen’s third‑quarter 2025 revenue reached $92.4 million, a 4.0% increase from $89.2 million a year earlier and a modest 0.1% rise from $92.3 million in Q2 2025. The growth was driven by a 18.8% jump in international business‑to‑business sales to $38.4 million and a 6.6% rise in domestic B2B revenue to $24.9 million, offset by a 17.9% decline in direct‑to‑consumer sales and a 4.4% drop in rental revenue.
Gross margin contracted to 44.7% from 46.5% a year earlier, reflecting the shift toward lower‑margin B2B channels. The mix change increased the proportion of revenue earned at lower gross‑margin rates, while operating costs remained largely unchanged, leading to the compression.
On a GAAP basis, Inogen posted a net loss of $5.3 million, but adjusted EBITDA rose to $2.3 million from $0.5 million a year earlier, marking the third consecutive quarter of positive adjusted EBITDA. The adjusted net loss narrowed to $0.5 million, and the company’s earnings per share of –$0.20 beat consensus estimates of –$0.22, a $0.02 improvement driven by disciplined cost control and the absence of the $1.8 million one‑time legal settlement that weighed on the prior year’s results.
Operating expenses fell 1.4% to $48.4 million, and the company’s cash, cash equivalents and marketable securities totaled $124.5 million, maintaining a debt‑free balance sheet.
Management reiterated its full‑year 2025 revenue outlook of $354–$357 million and raised its adjusted EBITDA guidance to roughly $2 million, reflecting confidence in continued cost discipline and the momentum of its B2B strategy. For Q4, the company projects revenue of $87–$90 million, a 10% year‑over‑year increase that aligns with the expected growth of its international B2B segment.
Inogen’s leadership highlighted a focus on financial discipline and operational excellence, noting that the company’s shift to more predictable B2B revenue streams is a deliberate trade‑off for lower gross margins but stronger cash flow stability. The guidance raise signals management’s belief that the company is on track to achieve adjusted EBITDA breakeven for the year.
Pre‑market trading reflected the market’s positive reaction to the earnings beat and the raised EBITDA outlook, with analysts noting that the EPS beat and the guidance increase outweigh the slight revenue miss. The market’s response underscores the importance of profitability metrics in evaluating Inogen’s turnaround progress.
The company’s trajectory illustrates a strategic pivot from high‑margin direct‑to‑consumer sales to a more stable B2B model, a move that has already begun to pay off in terms of positive adjusted EBITDA and a solid cash position. While gross margins have compressed, the company’s focus on cost control and the expansion of its international B2B channel position it well for sustained profitability in the coming quarters.
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