InMode NASDAQ: INMD reported first-quarter 2026 results that management said came in “in line with our expectation,” alongside early signs of stabilization in demand—particularly in the U.S.—following a restructuring of its North America commercial organization.
Management points to early stabilization and North America reorganization
CEO Moshe Mizrahy said the company is seeing “early sign of stabilization, particularly in the U.S.,” adding that the quarter “reinforce our confidence that 2026 is moving in the right direction.”
Mizrahy highlighted organizational changes made after new North American leadership was brought in at the end of the third quarter of 2025. The company moved from an East-West structure to a unified North America model covering both U.S. coasts and Canada, which he said is improving coordination and accountability.
In addition, effective Jan. 1, 2026, InMode separated its Envision ophthalmology and optometry sales force to operate independently as a more focused model. Mizrahy said March showed “particularly strong progress,” though he cautioned the company is looking for sustained consistency before declaring a long-term trend.
Q1 revenue rises to $82 million; margins contract year over year
CFO Yair Malca said InMode generated total revenue of $82 million in the first quarter of 2026, up 5% from $77.9 million in the prior-year quarter, driven by strong performance in the U.S. market.
International revenue totaled $38.7 million, representing 48% of total sales and an increase of 2.65% compared to the first quarter of 2025, Malca said. Mizrahy noted the company operates in more than 100 countries through a mix of direct local offices and distributor partnerships, calling Europe “a strong region” with room for continued growth, while describing Asia as “more mixed,” consistent with last year. He added that InMode is making progress in key Asian markets including China, where it sees significant long-term potential.
Margins declined from the prior year. Malca reported GAAP gross margin of 75% compared to 78% in the first quarter of 2025. Non-GAAP gross margin was also 75%, down from 79% a year earlier. GAAP operating margin was 12%, while non-GAAP operating margin was 17% compared with 23% in the prior-year quarter.
Operating expenses increased year over year. GAAP operating expenses were $51.5 million, up 13.7%, and GAAP sales and marketing expense rose to $42.9 million from $39.7 million. Malca attributed the increase primarily to higher sales expenses linked to the North America sales restructuring, headcount expansion from 2025 subsidiary build-outs, and higher commissions tied to stronger sales performance. Share-based compensation rose to $2.7 million.
Earnings also declined versus the prior year. GAAP diluted earnings per share were $0.18, down from $0.26, while non-GAAP diluted EPS was $0.25 compared with $0.31 in the first quarter of 2025.
Laser portfolio contributions and pipeline updates
Mizrahy said recently introduced laser offerings contributed meaningfully to first-quarter performance, citing the PicoFy and a CO2 laser as strategically important platforms that expand the range of procedures physicians can offer and enable combination treatments. He added that while lasers “may put pressure on our gross margin,” they support a “one-stop shop” approach that can deepen customer relationships.
During the Q&A, Mizrahy clarified product timing and development work:
- PicoFy: Introduced early 2026, “sometime in February,” Mizrahy said.
- Erbium laser: Still under development in Israel. Mizrahy said the company hopes to complete development and pursue FDA clearance “sometime in the next months or two,” with the goal of having it FDA-cleared by the end of 2026 and introduced to the market.
- CO2 (Solaria): Currently sold in the U.S. only. Mizrahy said it is sourced from a U.S. manufacturer with modifications and InMode software. He noted InMode does not sell it in Canada because it lacks Health Canada clearance. He also said the company is developing its own CO2 laser intended to expand sales to additional geographies, though regulatory processes—especially in Europe under MDR—could take time.
Envision sales approach and China and Argentina subsidiary updates
On the Envision platform for ophthalmology and optometry, Mizrahy said roughly 95% of customers are optometrists who use the technology to help relieve dry eye. He said the company is working on an FDA study to obtain clearance to market it for dry eye; in the meantime, it markets the system based on its current clearance around increasing blood circulation and building collagen.
Mizrahy said the dedicated Envision team consists of 30 salespeople and a director-level manager reporting to the North America president. The team covers the entire U.S. and also supports sales in Canada, and the first quarter was the first period in which InMode used a dedicated team for a single product. “It’s very early to judge,” he said, adding that initial signs suggest the concept is working and could be applied to other products if successful.
On international expansion efforts, Mizrahy provided an update on newer direct subsidiaries. He said the Argentina subsidiary was established in late 2025 and has spent time securing regulatory clearances under the subsidiary’s name. With an office, initial sales hires, a clinical trainer, and a manager now in place, he said the company hopes to see sales results beginning in the second quarter of 2026.
In China, Mizrahy said InMode continues to work through distributors in the medical field. He also said the company has an entity in Guangzhou that was established during COVID and remained dormant, but management has decided to use it as the “spa and aesthetic arm” in China. He said a manager has been hired and InMode is developing a special product line to differentiate from medical products to penetrate that segment, though he noted it is “not in full operation yet.”
Cash position, buybacks, and 2026 guidance reiterated
Malca said InMode ended the quarter with $537.2 million in cash and cash equivalents, marketable securities, and deposits, and generated $15.4 million in cash from operating activities during the period.
On shareholder returns, Malca said the company repurchased $127.4 million of shares during 2025 and $52.7 million year to date under its 2026 repurchase program, representing 3.86 million shares. In the Q&A, management said it plans to continue executing the repurchase plan, while also keeping “all the options on the table” for capital allocation.
Mizrahy noted the company has historically used buybacks to return capital and said it may also consider other approaches such as M&A and dividends. He also said InMode has explored acquisitions but has not progressed on any current opportunities, citing high private company valuations. He referenced two prior attempts to acquire an injectable company and a toxin company that did not proceed.
Malca reiterated full-year 2026 guidance:
- Revenue: $365 million to $375 million
- Non-GAAP gross margin: 74% to 76%
- Non-GAAP income from operations: $73 million to $78 million
- Non-GAAP EPS (diluted): $1.33 to $1.38
Asked about gross margin phasing, Mizrahy said the company expects it to remain around 74% to 75% across quarters.
Malca also announced he will step down as CFO and remain with the company as a consultant for the next six months to support a transition.
About InMode NASDAQ: INMD
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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