InMode’s third‑quarter 2025 revenue fell 4.3 % to $93.2 million, a decline from $130.2 million in the same period a year earlier. The drop is largely attributable to a 10 % year‑over‑year decline in U.S. sales, offset by a 10 % increase in international revenue that reached $40 million. Consumables and service revenue also grew 26 % to $19.9 million, providing a counterbalance to the headwinds in the core minimally invasive platform segment, which still accounted for 75 % of total sales.
Gross margin contracted to 78 % from 82 % in Q3 2024, a compression driven by higher component costs and tariff‑related price adjustments. The company’s CFO noted that proactive planning around tariff impacts helped keep the margin in line with expectations, but the shift in product mix toward lower‑margin consumables contributed to the decline. Operating margin fell to 22 % from 37 % a year earlier, and non‑GAAP operating margin slipped to 25 % from 40 % in Q3 2024, reflecting the combined effect of cost inflation and a less favorable mix of high‑margin platform sales.
Net income for the quarter was $21.9 million, or $0.34 per diluted share, a 57 % drop from $51.0 million ($0.65 per share) in Q3 2024. Despite the decline, the company beat consensus EPS estimates of $0.32 by $0.02, a 6 % surprise. The beat was largely due to disciplined cost management and a higher contribution from the consumables and services segment, which has a lower cost base than the platform business. The company’s GAAP net income also exceeded analyst expectations, underscoring effective operating leverage even as revenue contracted.
Comparing to the immediately preceding quarter, Q2 2025 revenue was $95.6 million and EPS was $0.47. The Q3 decline of 2.3 % QoQ highlights a gradual slowdown in the U.S. market, while the international segment’s growth helped mitigate the overall revenue decline. The earnings beat, however, indicates that the company’s cost‑control initiatives are working, even as the mix shifts toward higher‑margin consumables and services.
Management reiterated its full‑year 2025 outlook, maintaining revenue guidance of $365 million to $375 million and non‑GAAP gross margin expectations of 78 % to 80 %. CEO Moshe Mizrahy said the company remains focused on disciplined execution and strategic investments, noting that “consumer sentiment remains cautious, and global uncertainties persist.” CFO Yair Malca added that gross margins were in line with expectations and that the company would remain somewhat conservative going forward due to ongoing uncertainties. The guidance reflects confidence in the company’s ability to navigate macro‑economic headwinds while leveraging its strong cash position of $532.3 million.
Investors reacted positively to the earnings beat and the 10 % growth in international sales, with the stock rising 1.71 % in pre‑market trading. The market’s enthusiasm was driven by the surprise in EPS and revenue, which exceeded analyst consensus, while concerns about margin compression and the U.S. slowdown tempered the reaction. The company’s ability to maintain guidance amid these challenges signals resilience and a focus on long‑term growth.
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