Earnings Releases·Nov 2, 2026, 4:29 PM ET

Inspire Medical Systems — Third Quarter 2026 Earnings Summary

Q3 revenue declined 7.9% year-over-year to $206.7 million due to U.S. coding and reimbursement challenges, while gross margin expanded 20 basis points to 86.0% driven by a higher mix of the Inspire V system.
The company reported an operating loss of $28.7 million and diluted EPS of $(0.84), significantly impacted by $24.1 million in restructuring charges and $7.0 million in legal settlement expenses.
Full-year 2026 revenue guidance was narrowed to $850 million–$860 million (previously $835 million–$875 million), with adjusted diluted EPS guidance set at $1.20 to $1.40.
Management expects a return to growth in 2027 following the implementation of new coding and reimbursement clarity, including new Category I CPT codes effective January 1, 2028.
Strategic "Project Horizon" restructuring and capital reallocation are underway to support high-impact revenue growth initiatives, with cash, equivalents, and investments increasing to $453.1 million.