InMode (INMD) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $77.9 million, down 3% year-over-year, with gross margin at 78% GAAP and 79% non-GAAP, both slightly lower than last year.

• U.S. market share declined to 50% of revenue, with international sales rising to 49%, led by record performance in Europe despite macroeconomic headwinds.

• GAAP net income was $18.2M ($0.26/diluted share), non-GAAP net income was $21.4M ($0.31/diluted share), both down from Q1 2024.

• The company maintained its workforce and continued investing in R&D and sales, expecting to benefit when demand rebounds.

• Completed a 6.95M share repurchase in April 2025, returning $127M to shareholders; $412M returned over 12 months, about 27% of share capital.

Financial highlights

• Q1 2025 revenue was $77.9M, with non-GAAP net income of $21.4M and non-GAAP diluted EPS of $0.31.

• GAAP gross margin was 78% (down from 80%); non-GAAP gross margin was 79%.

• GAAP operating margin was 20% (down from 23%); non-GAAP operating margin was 23% (down from 27%).

• Cash, equivalents, and short-term investments totaled $512.9M as of March 31, 2025.

• Installed base: 12,054 units in the US, 27,884 units worldwide.

Outlook and guidance

• 2025 revenue guidance is $395–$405 million, with non-GAAP gross margin of 78–80% (previously 80–82%).

• Non-GAAP operating income guidance is $101–$106 million (previously $130–$135 million).

• Non-GAAP EPS guidance is $1.64–$1.68 (previously $1.95–$1.99).

• Guidance assumes Q2 will be seasonally stronger; if not, guidance may be revised downward.

• Management expects U.S. market headwinds and 2–3% gross margin impact from tariffs to persist through year-end.