Inogen Q2 Earnings Call Highlights

Key Points

• Second-quarter revenue rose 3% to $95.1 million, with international sales up 15% and new products helping offset a 2% decline in U.S. sales, particularly weakness in direct-to-consumer and rental channels.
• Inogen lowered its 2026 revenue guidance to $355 million–$361 million due to U.S. channel shifts and international distributor inventory timing, but raised adjusted EBITDA guidance to approximately $4 million on improved margins and cost management.
• Newer products gained traction, with Voxi and Aurora contributing to growth, while Inogen continued advancing Simeox clinical and regulatory programs; the company ended the quarter with $106.8 million in cash and no debt.

Inogen NASDAQ: INGN reported second-quarter 2026 revenue of $95.1 million, up 3% from a year earlier, as international growth, portable oxygen concentrator demand and contributions from newer products offset continued pressure in its U.S. direct-to-consumer business.

The company lowered its full-year revenue outlook, citing a faster-than-anticipated shift in U.S. sales channels and the timing of inventory purchases by certain international distributors. At the same time, Inogen raised its adjusted EBITDA outlook, reflecting progress on cost management and gross-margin expansion.

International growth offsets U.S. channel pressure

International sales rose 15% year over year to $41.3 million, marking the company’s 10th consecutive quarter of double-digit international growth, according to CFO Jason Richardson. Foreign exchange contributed a positive 240 basis points to total revenue growth during the quarter.

President and CEO Kevin Smith said Inogen continued to expand in existing markets and pursue opportunities in Eastern Europe and Latin America. The company launched its Rove 6 portable oxygen concentrator in Canada during the quarter, following its launch in Brazil in the first quarter.

Smith said Inogen expects some international distributors to manage inventory more closely in the second half, with factors including delayed tenders and distributor consolidation affecting purchase timing. He characterized those factors as transitory.

U.S. sales fell 2% year over year to $42.3 million. While the company’s business-to-business channel posted mid-single-digit growth and U.S. unit volume increased by high single digits, gains were not enough to offset declines in the direct-to-consumer channel. U.S. rental revenue declined 12% to $11.6 million.

Management attributed the direct-channel pressure to a market shift in which home medical equipment providers prescribe portable oxygen concentrators from the beginning of a patient’s therapy rather than transitioning patients from oxygen tanks later. Smith said the shift benefits Inogen’s B2B business but narrows the traditional funnel for rentals and puts pressure on direct sales.

“We do see opportunities” for the direct-to-consumer business to stabilize and grow, Smith said during the question-and-answer session. He added that Inogen has been selling its Voxi stationary oxygen concentrator through that channel and sees potential to sell other products there.

New products gain traction

Inogen said its Voxi stationary oxygen concentrator and Aurora CPAP mask together contributed more than 100 basis points of revenue growth in the second quarter. The company has shipped more than 5,000 Voxi units to date, Smith said.

The company estimates the U.S. stationary oxygen concentrator market at $300 million. Smith said the product enables Inogen to serve more of a patient’s oxygen-therapy needs, since portable oxygen concentrator users typically also have a stationary concentrator at home.

Aurora’s customer count more than doubled sequentially, according to Smith. He said the company expects Aurora’s contribution to increase gradually through the remainder of 2026 as its U.S. B2B representatives expand provider discussions. Inogen estimates the U.S. CPAP mask market at approximately $2.2 billion.

Inogen is also advancing Simeox, an airway-clearance therapy. The company said enrollment in its IMPACTS-200 study is progressing on schedule, with the goal of generating clinical and economic evidence to support potential CMS reimbursement. Management said it expects to require two studies before approaching CMS. In China, Inogen completed enrollment and the last patient visit in the SCOPE study and expects statistical analysis results later this year. Smith said the company expects Simeox regulatory clearance in China before the end of 2026.

Margins and cash flow improve

Gross margin was 45.5%, compared with 44.8% in the prior-year period. Adjusted gross margin increased 65 basis points to 45.6%, which Richardson attributed to cost improvements and lower warranty expenses.

• GAAP net loss narrowed to $3.9 million from $4.2 million a year earlier.
• Adjusted net loss improved to less than $0.1 million from $0.7 million.
• Adjusted EBITDA rose to $2.4 million from $2.1 million.
• Operating cash flow totaled $2.9 million, while free cash flow was $1 million.
• Inogen ended the quarter with $106.8 million in cash, cash equivalents, marketable securities and restricted cash, with no debt outstanding.

Adjusted operating expenses increased 1.2% to $44.6 million. Research and development expense rose 13.3% to $4.9 million as the company invested in clinical evidence and product development, while adjusted selling, general and administrative expense was roughly flat at $39.8 million.

In the first half, Inogen repurchased more than 1.1 million shares for $7.5 million. Richardson said the company believes its shares are undervalued relative to its fundamentals and strategic opportunity.

Outlook reduced for revenue, raised for adjusted EBITDA

Inogen revised its 2026 revenue guidance to $355 million to $361 million, representing approximately 3% growth at the midpoint. The prior outlook was $366 million to $373 million.

The company expects third-quarter reported revenue to be in line with the $92.4 million reported in the third quarter of 2025. Management said the outlook reflects continued U.S. channel-mix pressure and the timing of international distributor inventory purchases.

Despite the lower revenue outlook, Inogen raised its full-year adjusted EBITDA guidance to approximately $4 million, which would represent 48% growth from $2.7 million in 2025.

Smith said the company is conducting a review of its profit-and-loss structure and capital allocation priorities while continuing investments in sales-force expansion, B2B channel development, international market entry and product innovation. Inogen also appointed Andy Reding as chief operating officer in July, a newly created role.

About Inogen (NASDAQ:INGN)

Inogen, Inc NASDAQ: INGN is a medical device company specializing in the development, manufacture and marketing of innovative oxygen therapy solutions. The company's core focus is on portable oxygen concentrators (POCs) designed to support patients with chronic respiratory conditions such as chronic obstructive pulmonary disease (COPD). Inogen's offerings aim to provide users with mobility and independence by reducing reliance on traditional compressed-gas cylinders and enabling oxygen therapy on the go.

Inogen's flagship product line, including the Inogen One family of portable oxygen concentrators, leverages proprietary flow technology to deliver continuous and pulse-dose oxygen.

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