InMode (NASDAQ:INMD) Announces Quarterly Earnings Results, Misses Expectations By $0.05 EPS

Key Points

• InMode reported Q1 EPS of $0.25, missing consensus by $0.05, while revenue beat at $82.02M (up ~5.3% YoY) and the company reiterated 2026 revenue guidance of $365M–$375M with non‑GAAP EPS of $1.33–$1.38.
• Profitability weakened as GAAP and non‑GAAP gross margins fell to 75% (from ~78–79% prior year) and non‑GAAP operating margin dropped to 17%, with management noting product mix and new platform adoption as margin pressures.
• InMode has a strong cash position (~$537.2M) and continued buybacks (~$127.4M in 2025 and $52.7M YTD 2026), but the stock fell ~6.3% to $13.49 on the print and the consensus analyst rating is a Hold (target ~$17.25).

InMode (NASDAQ:INMD - Get Free Report) announced its quarterly earnings results on Wednesday. The healthcare company reported $0.25 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.30 by ($0.05), FiscalAI reports. The firm had revenue of $82.02 million for the quarter, compared to the consensus estimate of $79.84 million. InMode had a net margin of 25.33% and a return on equity of 14.52%. The company's revenue for the quarter was up 5.3% on a year-over-year basis. During the same period in the prior year, the business earned $0.31 earnings per share.

Here are the key takeaways from InMode's conference call:

• 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.
• 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.
• 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.
• 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.
• 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.

InMode Stock Down 6.3%

INMD stock traded down $0.91 during midday trading on Wednesday, reaching $13.49. The company's stock had a trading volume of 1,449,943 shares, compared to its average volume of 992,125. InMode has a 52 week low of $12.72 and a 52 week high of $16.74. The stock has a market cap of $854.73 million, a PE ratio of 9.36 and a beta of 1.97. The business's 50-day simple moving average is $13.83 and its 200-day simple moving average is $14.36.

Hedge Funds Weigh In On InMode

A number of hedge funds and other institutional investors have recently bought and sold shares of INMD. Cooper Creek Partners Management LLC bought a new position in InMode in the third quarter valued at approximately $14,980,000. Millennium Management LLC raised its holdings in InMode by 111.4% in the fourth quarter. Millennium Management LLC now owns 1,778,681 shares of the healthcare company's stock worth $26,129,000 after purchasing an additional 937,376 shares during the period. Goldman Sachs Group Inc. raised its holdings in InMode by 234.9% in the first quarter. Goldman Sachs Group Inc. now owns 1,123,756 shares of the healthcare company's stock worth $19,935,000 after purchasing an additional 788,157 shares during the period. Steel Partners Holdings L.P. acquired a new stake in InMode in the fourth quarter worth $10,352,000. Finally, Bank of America Corp DE raised its holdings in InMode by 142.1% in the second quarter. Bank of America Corp DE now owns 862,209 shares of the healthcare company's stock worth $12,450,000 after purchasing an additional 506,134 shares during the period. 68.04% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

INMD has been the topic of a number of research analyst reports. Robert W. Baird set a $17.00 price target on InMode in a research report on Wednesday, February 11th. BTIG Research restated a "neutral" rating on shares of InMode in a research note on Monday, January 26th. Finally, Weiss Ratings reiterated a "sell (d+)" rating on shares of InMode in a research report on Thursday, January 22nd. One investment analyst has rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, InMode has a consensus rating of "Hold" and a consensus price target of $17.25.

InMode Company Profile

InMode Ltd. 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.

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