InMode Q1 2026 Earnings Report

InMode EPS Results

• Actual EPS: $0.25
• Consensus EPS: $0.30
• Beat/Miss: Missed by -$0.05
• One Year Ago EPS: $0.31

InMode Revenue Results

• Actual Revenue: $82.02 million
• Expected Revenue: $79.84 million
• Beat/Miss: Beat by +$2.18 million
• YoY Revenue Growth: +5.30%

InMode Announcement Details

• Quarter: Q1 2026
• Date: 5/6/2026
• Time: Before Market Opens
• Conference Call Date: Wednesday, May 6, 2026
• Conference Call Time: 8:30AM ET

InMode (NASDAQ:INMD) (NASDAQ:INMD) is a medical technology company headquartered in Israel that develops, manufactures and markets devices for aesthetic and medical treatments. The company specializes in energy-based technologies, primarily radiofrequency platforms, designed to deliver minimally-invasive and non-invasive procedures.

InMode’s product portfolio encompasses a range of modular systems targeting body contouring, facial rejuvenation, skin tightening and other cosmetic applications. Key offerings include devices built on proprietary radiofrequency and radiofrequency-assisted lipolysis, enabling physicians to perform treatments such as tissue coagulation, skin resurfacing and subdermal volumizing with reduced downtime.

The company distributes its technologies through direct sales operations and distribution partners, serving medical professionals across multiple geographies including North America, Europe, Asia Pacific and Latin America. In addition to product deployment, InMode provides training, clinical support and marketing services to practitioners to facilitate the adoption of its platforms.

Founded in the late 2000s, InMode completed its initial public offering in 2019. Managed by an experienced leadership team with backgrounds in medical device development, its ongoing research and development efforts focus on expanding its aesthetic treatment portfolio and exploring new clinical applications of its energy-based platforms.

InMode Q1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Q1 results and guidance: InMode reported Q1 revenue of $82.0M (up 5% YoY) and reiterated 2026 guidance of $365M–$375M in revenue with non‑GAAP gross margin target of 74%–76% and non‑GAAP EPS of $1.33–$1.38.
• Negative Sentiment: Margin and profitability pressure: GAAP gross margin fell to 75% (from 78% prior year) and non‑GAAP gross margin to 75% (from 79%), driving non‑GAAP operating margin down to 17% (vs. 23%) and lower non‑GAAP EPS of $0.25.
• Positive Sentiment: North America sales reorg showing early improvement: New leadership and a unified North America model—including a dedicated Envision ophthalmology/optometry sales team—coincided with stronger U.S. performance and encouraging March trends, though management is seeking sustained consistency.
• Neutral Sentiment: Product pipeline and mix impact: Recently introduced platforms (Picofy and a CO2 offering) contributed meaningfully and an Erbium laser aims for FDA clearance by year‑end; these broaden procedure capability and customer stickiness but could exert pressure on gross margins.
• Positive Sentiment: Capital allocation flexibility: The company holds about $537.2M in cash/marketable securities, has repurchased meaningful stock (about $127.4M in 2025 and $52.7M YTD 2026, ~3.86M shares), plans to continue buybacks and says M&A/dividend options remain under consideration.

Presentation

[Operator]

Good day. Welcome to InMode's first quarter 2026 earnings results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Miri Segal, CEO of MS-IR. Please go ahead.

[Miri Segal, CEO at MS-IR]

Thank you, operator, and everyone for joining us today. Welcome to InMode's conference call. Before we begin, I would like to remind our listeners that certain information provided on this call may contain forward-looking statements, and the safe harbor statements outlined in today's earnings release also pertains to this call. If you have not received a copy of the release, please go to the investor relations section of the company's website. Changes in business competitive, technological, regulatory, and other factors could cause actual results to differ materially from those expressed by the forward-looking statements made today. Our historical results are not necessarily indicative of future performance. As such, we can give no assurance as to the accuracy of our forward-looking statements and assume no obligation to update them except as required by law. With that, I'd like to pass the call over to Moshe Mizrahy, CEO. Moshe, please go ahead.

[Moshe Mizrahy, CEO at InMode]

Thank you, Miri, and to everyone for joining us. With me today are Dr. Michael Kreindel, our Co-Founder and Chief Technology Officer, Yair Malca, our Chief Financial Officer, and Mr. Mushik Itskovitz, our Senior VP of Finance. Following our prepared remark, we will be available to answer your question. We executed in line with our expectation in Q1 2026. In addition, we're seeing early sign of stabilization, particularly in the U.S., and believe that this quarter reinforce our confidence that 2026 is moving in the right direction. I would like to start by reviewing InMode progress in North America. As you know, we brought in new leadership at the end of Q3 2025, including new North American president and vice president. While it's still early, the energy and culture shift are already having positive impact.

[Moshe Mizrahy, CEO at InMode]

We have transitioned from our long-standing East-West structure to unify North American model, bringing Canada and both coasts under the same organization. This is driving better coordination and clearer accountability. We also implemented a key structure changes in January 1, 2026. The Envision team, our ophthalmology and optometry sales force now operate independently. This create more focused model that we believe will support stronger execution over time. March deliver particularly strong progress, reinforcing our confidence that this change are beginning to bear fruit. That said, we are looking for sustained consistency before calling it a long-term trend. On the international market, we continued to operate in over 100 countries, with most of our businesses driven by our direct sales to local offices and supported by distributor partnership. Europe remain a strong region for us with solid performance and meaningful room for continued growth.

[Moshe Mizrahy, CEO at InMode]

In Asia, performance is more mixed, consistent with what we saw last year. Though we are making progress in key markets, including China, where we see significant long-term potential. On the laser, the PicoFy and the CO2 laser perform well recently introduced were meaningful contribution to our Q1 revenue performance and are strategically important for our long-term growth. They expanded the range of procedures our physician can offer and to enable combination of treatment, which are increasingly in demand. Physicians are looking for comprehensive solution from a single partner, and these platforms support a one-stop shop office. They may put pressure on our gross margin, but they play a critical role in strengthening our competitive position and deepening our customers' relationship. On the broader market environment, we are seeing sign of stabilization.

[Moshe Mizrahy, CEO at InMode]

Demand for aesthetic procedures was again pressured in the first quarter of 2026 by macroeconomic headwind. As we have said many times before, we believe that the demand for aesthetic procedure will not go away. It may be deferred, but it will return.

[Moshe Mizrahy, CEO at InMode]

Let me turn the call over to Yair, the Chief Financial Officer, who will walk you through financial numbers. Yair.

[Yair Malca, CFO at InMode]

Thanks, Moshe, and hello everyone. Thank you for joining us. As announced earlier this morning, I will step down as CFO and remain with the company as a consultant for the next six months to support a smooth transition. After nine years with the company, I am proud to have been part of its journey, from driving growth and supporting our expansion to helping lead our transition to the public market. It's been a privilege to work closely with our dedicated employees and build a foundation of financial discipline and transparency. Even during recent macroeconomic headwinds, the company's strong financial position and resilience have enabled us to navigate challenges, including the global pandemic, while consistently prioritizing stability and our people. As I look ahead to new endeavors, I am confident that this discipline and long-term approach will continue to guide the company's success.

[Yair Malca, CFO at InMode]

With that said, let's get to the Q1 results. Starting with total revenue, InMode generated $82 million in the first quarter of 2026, up 5% from $77.9 million in the same quarter last year. Growth in Q1 was led by strong performance in the U.S. market. Moving to our international operations, sales outside the U.S. totaled $38.7 million in Q1, representing 48% of total sales and an increase of 2.65% compared to Q1 of last year. Gross margin in the first quarter of 2026 was 75% on a GAAP basis compared to 78% in the first quarter of 2025. Non-GAAP gross margins were 75% in the first quarter of 2026 compared to 79% in the first quarter of 2025.

[Yair Malca, CFO at InMode]

In Q1 2026, our minimally invasive technology platforms accounted for 77% of total revenues. To support our operations and growth, we currently have a sales team of more than 298 direct reps and 73 distributors worldwide. GAAP operating expenses in the first quarter were $51.5 million, a 13.7% increase year-over-year. GAAP sales and marketing expenses increased to $42.9 million in the first quarter compared to $39.7 million in the same period last year. The year-over-year increase was primarily driven by increased sales expenses tied to the restructuring of the North America sales organization and headcount expansion from 2025 subsidiary build-outs, along with higher commission expense in line with a stronger sales performance.

[Yair Malca, CFO at InMode]

Next, we look at share-based compensation, which increased to $2.7 million in the first quarter of 2026. On a non-GAAP basis, operating expenses were $47.8 million in the first quarter compared to a total of $43.1 million in the same quarter of 2025, representing an 11.1% increase. GAAP operating margin for Q1 was 12%. Non-GAAP operating margin for the first quarter of 2026 was 17% compared to 23% for the same for the first quarter of 2025. This decrease was primarily attributable to the increase in cost of goods and, as mentioned before, the new structure of the North America sales team implemented towards the end of 2025 and subsidiary establishments in the later part of 2025.

[Yair Malca, CFO at InMode]

GAAP diluted earnings per share for the first quarter were $0.18 compared to $0.26 per diluted share in Q1 of 2025. Non-GAAP diluted earnings per share for this quarter were $0.25 compared to $0.31 per diluted share in the first quarter of 2025. As of March 31, 2026, the company had cash and cash equivalents, marketable securities, and deposits of $537.2 million. We also returned meaningful capital to shareholders, repurchasing shares in the amount of $127.4 million during 2025 and $52.7 million year to date, to date under our new 2026 repurchase program, representing 3.86 million shares this year. With this flexibility, we remain well-positioned to pursue a full range of capital allocation opportunities.

[Yair Malca, CFO at InMode]

This quarter, InMode generated $15.4 million from operating activities. Before I turn the call back to Moshe, I'd like to reiterate our guidance for 2026. Revenues between $365 million-$375 million. Non-GAAP gross margin between 74% and 76%. Non-GAAP income from operations between $73 million and $78 million. Non-GAAP earnings per diluted share between $1.33-$1.38. I will now turn over the call back to Moshe.

[Moshe Mizrahy, CEO at InMode]

Thank you, Yair. Thank you very much. Operator, we're ready for Q&A.

[Operator]

We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we'll pause momentarily to assemble our roster. The first question comes from Mike Matson with Needham. Please go ahead.

[Joseph Stringer, Analyst at Needham]

Yair, Moshe, thank you very much for taking our questions. This is Joseph on from Mike. Yair, wish you the best in your next ventures. Maybe just a question on the next laser launch, I believe the Erbium laser. Can you remind us of the timeline of that? Was that end of the year? Just comparing to, you know, the PicoFy and the CO2 laser, you know, is this product more just, you know, filling a gap that can do a different procedure versus the PicoFy or CO2? Is it maybe much more differentiated? Just wondering how we should think about that.

[Joseph Stringer, Analyst at Needham]

You know, under the assumption that this launches at the end of the year, should we expect further impact to gross margin in 2027 from this, you know, increased mix of laser platforms?

[Moshe Mizrahy, CEO at InMode]

Okay. You asked three question about three different lasers. First, the laser that we introduced to the market in the beginning of this year, sometime in February, was not Erbium, was PicoFy laser. The Erbium laser is still under development, and we hope to finalize the development of the Erbium, which is developed in Israel, and get into the FDA clearance sometime in the next months of two. Basically, we hope that by the end of this year, we will have it cleared by the FDA, and we can introduce it to the market. Now, the third laser that you mentioned, the CO2, the one that we're having today and selling today, which called the Solaria.

[Moshe Mizrahy, CEO at InMode]

It's a CO2 laser that we buy from U.S. manufacturer with several modifications that we made it to be, looks like and with the software of InMode. We sell it quite nicely throughout U.S. Not in Canada, because they don't have Health Canada clearance to sell it in the U.S. This product is being sold only in the U.S. At the same time, we are developing our own CO2, which will enable us to expand the market and the territories to almost everywhere. That will take time because, you know, regulation today, it's a long process. Mainly in Europe, when you have to clear it through the MDR and not the MDD, a process that recently changed. Anything else about those lasers?

[Joseph Stringer, Analyst at Needham]

No, I think that's, that's all good and clear. Appreciate that. Maybe just one more follow-up question. Just wondering how your newer direct subsidiaries, I think Thailand and Argentina were established in 2025. How have those been growing? Could you also remind us on the timeline for China? I believe that was maybe one of the next targets for this year. Maybe just what products you're targeting to get into China and then, you know, the timeline of when that could happen. Thank you.

[Moshe Mizrahy, CEO at InMode]

Okay. Let's start with Argentina. Argentina was established late 2025. It took us some time, two months, to get all the clearances from the regulatory body in Argentina under our name, in our subsidiary. Now, everything is almost ready. We have an office, we have one or two salespeople, we have a clinical trainer, we have a manager. Hopefully, Q2 in 2026, we will see some results. Until now, it was more like a setup, organizing all the regulatory clearances. Hopefully, Q2 in this year, they will start delivering sales as well. Argentina is not very big country compared to Brazil and others, but we believe that there is a market there.

[Moshe Mizrahy, CEO at InMode]

There was major changes in the macroeconomics in Argentina recently. We felt that this is the best time to establish a subsidiary there and go direct. Regarding China. In China, we continue to work on the medical field with our distributors. We have decided, I don't know if everybody knows, but during the COVID, we have established a company in Guangzhou, which was a sleeping company for all the time until today. We decided right now to use this company, which is fully owned by us, to become the spa and aesthetic arm of InMode in China. We hired a manager who's well-acquainted with the spa and the aesthetic, not aesthetic.

[Moshe Mizrahy, CEO at InMode]

I would say the cosmetic more or less in China, and we're developing right now special product to distinguish the product line from the medical in order to penetrate this segment of the market in China. It's not in full operation yet.

[Joseph Stringer, Analyst at Needham]

Okay. Yeah, thank you very much for taking our questions.

[Operator]

Again, if you have a question, please press star then one. Our next question comes from Matt Miksic with Barclays. Please go ahead.

[Matt Miksic, Analyst at Barclays]

Good morning. Thanks so much for taking our questions. On ophthalmology, I was wondering if you could, and I've been hopping around between calls, so apologies if it's already been covered, but maybe an update on, you know, how the U.S. sales reorg and management structure is driving that growth. What your plans are there, maybe what some of the early results you've seen there and some of the upcoming milestones. I have one quick follow-up.

[Moshe Mizrahy, CEO at InMode]

Yeah. I'm sure everybody knows that we have a platforms which called the Envision for the ophthalmology and optometry. By the way, 95% of the customers are not ophthalmologists, they are more optometrists, which are doing treatment to relieve dry eye. We're working on the study for the FDA to get clearance. Therefore, right now we don't market it under a dry eye treatment, but rather on what we have the clearance, and this is increased blood circulation and build some collagen, which we know that also help for dry eye. The team is 30 salespeople and a manager. The manager is a director level. He reports to the president of North America.

[Moshe Mizrahy, CEO at InMode]

It's part of the North American team. It's not totally separate the company. It's not even a division. They cover the entire U.S. They are not territory-based. They cover the entire U.S. and also supporting sales of Envision in Canada. This is the first time that we separate the product and the first quarter that we have a special team selling one product from our portfolio. We hope that this model will be successful because if yes, we might do it on other products as well in the future. I believe it's very early to judge. It's only three months.

[Moshe Mizrahy, CEO at InMode]

So far, it seems like that the concept is working and although, you know, to be responsible for the entire U.S. and Canada with 30 people, it's a little bit, you know, big territory, but we did it. We'll see. Let's see the results throughout the year, and then we'll decide if that's successful or not.

[Matt Miksic, Analyst at Barclays]

Oh, that's great. Thanks. Just a question on. Again, I'll make the same apology if you'd cover this. The plans to repurchase shares, use of cash. You've done a good job of putting that cash back to work, giving back to shareholders as volumes were slowing and the market was kind of troughing here. How does that, you know, strategy play out this year? How are you thinking about capital allocation at this point? Thanks.

[Yair Malca, CFO at InMode]

This is Yair. We started As you know, we announced a buyback plan earlier this year, and we started executing on that. So far, we purchased over $3.8 million under that plan.

[Moshe Mizrahy, CEO at InMode]

8 million shares.

[Yair Malca, CFO at InMode]

The 8 million shares. Sorry. Thank you. 3.8 million shares under the plan. We plan to continue to execute on the plan. Other than that, Moshe, do you want to elaborate about capital allocations? I think all the options are on the table.

[Moshe Mizrahy, CEO at InMode]

We always say the same thing, all the options on the table. We are allowed to do 10% of the outstanding shares every year without paying dividend tax, and we're doing it year-over-year. So far, I would say if once we completed this 6.5 million shares, I believe it's another 2.5 million that we have to buy. We already did that six years, 6x, and we return $600 million to the shareholders. If you ask me if that helped the share price, so far, no.

[Moshe Mizrahy, CEO at InMode]

Therefore, you know, it's always a question whether to continue or not to return capital to the shareholders with this type of operation only by buyback. Hopefully now, when the company continue to be a public company, I'm sure everybody knows that the last year, 2025 was a very tough year for InMode because of the failed project that tried to sell the company without success. We remain public. I believe it's important also to the team and to the people who felt insecure during very long time. Now maybe we will consider other way to allocate capital to the shareholders, M&A, dividend, and others. Everything is on the table and everything is open.

[Matt Miksic, Analyst at Barclays]

Great. Thank you.

[Operator]

The next question comes from Sam Eiber with BTIG. Please go ahead.

[Sam Eiber, Analyst at BTIG]

Hi. Good morning. Thanks for taking the questions. And Yair, just wanted to say thank you for all the access over the years. It was really nice getting to work together. Hopping between a few calls this morning, so apologies if this question already got asked, but maybe just following back up on capital allocation and maybe diving a bit deeper in terms of appetite for M&A. I know it's something that, you know, you guys have always been considering but, you know, haven't seen, you know, any kind of deals over the last several years. I guess, is that something that, you know, considering where markets are at this moment, willing to reevaluate, or is it really more focused on sell buybacks here?

[Moshe Mizrahy, CEO at InMode]

Well, you know, I cannot say more than what I did. Yes, M&A opportunities are being explored. We have nothing that, in any stage, but we're always checking, because we believe that we did a lot of buyback, and if we have a candidate or company to acquire in order to synergize either on the product level or the technology level or the customer level, we will explore. The only problem is right now, private company prices are very high and unfortunately, we're unable to acquire. We did two attempt, as you know, to buy an injectable company and to buy a toxin company, but we gave price, which was probably not the best for this company shareholders.

[Moshe Mizrahy, CEO at InMode]

Therefore, it was not accepted. We will continue to try.

[Operator]

The next question comes from Michael Toomey with Jefferies. Please go ahead.

[Michael Toomey, Analyst at Jefferies]

Hi, guys, it's Michael Toomey. Just jumping on for Matt at Jefferies. I just had a question, what you're seeing on the broader aesthetics market, not just the energy-based side, but you mentioned in the interest in injectables, but how's the broader aesthetic market growing today and any difference there between broad aesthetics, injectables and kinda energy-based devices?

[Moshe Mizrahy, CEO at InMode]

Well, I believe that the few injectable companies which are public company. If you look at them, you will realize that in 2025, they didn't do that good, but they see some sign of momentum in 2026. One thing I want to say, I mean, the energy-based device companies are competing on the same marginal dollar that people have for aesthetic. On the other side, other than energy-based devices, GLP-1 took a lot of money from this industry. A lot of money. All the new product, boosters, biostimulator, exosomes, are also competing very toughly with energy-based devices, and some of them are doing very well.

[Moshe Mizrahy, CEO at InMode]

That means that in the future, and that's what we thought when we gave an offer to injectable companies, energy-based devices will need either strategically cooperation or M&A or mergers with other type of aesthetic solution in order to be a one-stop shop. As of now, we know that several companies like Alma sign a distribution agreement with fillers. I know that there was another Spanish company, Sinclair, that actually closed all the EBD operation and stayed only with the injectables.

[Moshe Mizrahy, CEO at InMode]

I didn't see yet a major company that actually offer both energy-based device treatment and all the other injectables, exosome, biostimulator, and other stuff that also compete on the same dollar, which the same what I call aesthetic dollar. The reason for that, the main reason for that is that it's two different operations. You don't have an engineer that know how to develop EBD or a pharma product, and you don't have a salesman who knows how to sell energy-based device for $100,000 and at the same time to sell fillers or toxin for $100. Should need to be two separate operations. In the future, I do believe that it will come.

[Michael Toomey, Analyst at Jefferies]

Okay. That's great. Thank you. Just to follow up as well, with the gross margin new guides, anything you can comment on the phasing through the year?

[Moshe Mizrahy, CEO at InMode]

On the what? Phasing?

[Michael Toomey, Analyst at Jefferies]

Yes.

[Michael Toomey, Analyst at Jefferies]

Phasing, to the.

[Michael Toomey, Analyst at Jefferies]

For other quarters.

[Michael Toomey, Analyst at Jefferies]

For the gross margin.

[Moshe Mizrahy, CEO at InMode]

It's I mean, we believe it will stay the same, like 74%, 75%.

[Michael Toomey, Analyst at Jefferies]

Okay. Thank you.

[Operator]

This concludes our question and answer session. I would like to turn the conference back over to Moshe Mizrahy, InMode CEO, for any closing remarks.

[Moshe Mizrahy, CEO at InMode]

Okay. Thank you, everybody. Thank you for being with us today. Before I close the call, I want to thank to our Chairman, Dr. Michael Anghel, who worked with us for, I would say, eight years as a director and as a chairman. We enjoyed him very much. He's leaving, and I want to wish him, you know, success in the future. He was very helpful and very contributor. He contributed a lot to InMode. The second guy that I want to thank personally and on behalf of the company is Yair Malca, our Chief Financial Officer for nine years now, even before the IPO. Correct, isn't it?

[Moshe Mizrahy, CEO at InMode]

Even before the IPO, we hired him. He did a great job, you know, taking this company into an IPO and then maintaining everything that we need to do as a public company with all the reporting, talking with the investors, talking with analysts. Thank you. Thank you, Yair, for everything you did for us and all the contributions that you brought to this company. I wish you know, success in your new career.

[Yair Malca, CFO at InMode]

Thank you very much.

[Moshe Mizrahy, CEO at InMode]

Hopefully, the war in Israel will end, and everybody will go back to a normal life, including us. We will continue to do our best.

[Operator]

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Participants

Executives

• Moshe Mizrahy, CEO
• Yair Malca, CFO

Analysts

• Joseph Stringer, Analyst at Needham
• Matt Miksic, Analyst at Barclays
• Michael Toomey, Analyst at Jefferies
• Miri Segal, CEO at MS-IR
• Sam Eiber, Analyst at BTIG