InMode (INMD) 25th Annual Needham Virtual Healthcare Conference summary

Financial performance and outlook

• Achieved approximately 5% year-over-year growth in Q1, driven mainly by the launch of the Picofy picolaser in the US market.

• Guidance for 2026 remains similar to 2025, with no expectation of significant growth unless Q2 performance exceeds expectations.

• Gross margin declined from 85% to 75%, impacted by increased costs, competitive pricing, and a higher mix of third-party laser products.

• Operating profit and net profit are under pressure due to higher costs and industry competition, but the company remains cash positive.

• Share buybacks continue, with 10% of shares repurchased annually to optimize capital allocation and avoid dividend tax.

Product portfolio and innovation

• Introduced Picofy picolaser in the US, with plans to expand to Europe and Asia in Q2; gross margin on this product is lower due to third-party sourcing.

• Solaria CO2 laser and ApexRF Urology system launched in 2025, with steady but limited sales expected due to market saturation and regulatory constraints.

• Morpheus8 with Erbium laser capability is pending FDA submission, targeted for market launch in Q4.

• Ongoing studies for new indications, including overactive bladder and erectile dysfunction, with potential market entry for these applications after 2027.

Market dynamics and geographic expansion

• No significant momentum observed in the aesthetic market; disposable sales remain flat despite an expanding installed base.

• Market is not considered saturated, with an estimated 150,000 potential clinics in the US and significant opportunities in international markets.

• Direct sales focus in 20 countries generates 80% of revenue; new subsidiaries are established selectively, with recent expansion in Thailand, Argentina, and plans for China.