InMode (INMD) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $77.9 million, down 3% year-over-year, reflecting ongoing macroeconomic headwinds and soft consumer demand, especially in the U.S. market, while international sales, particularly in Europe, reached record levels.

• Minimally invasive platforms comprised 87% of total revenues, with a broad RF-based portfolio and strong brand recognition, and international sales accounted for 49% of total.

• GAAP net income was $18.2 million ($0.26/diluted share), non-GAAP net income was $21.4 million ($0.31/diluted share), and non-GAAP gross margin was 79%.

• Management remains committed to maintaining workforce, investing in product development, and launching a new wellness platform later in 2025.

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

Financial highlights

• Q1 2025 revenue reached $77.9 million; GAAP gross margin was 78% (down from 80%), non-GAAP gross margin was 79%.

• GAAP operating expenses were $45.3 million (down 1% year-over-year); non-GAAP operating expenses were $43.1 million (up 2%).

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

• Cash, equivalents, and short-term investments totaled $512.9 million as of March 31, 2025; $14 million generated from operating activities in Q1.

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

Outlook and guidance

• 2025 revenue guidance reiterated at $395–$405 million, with non-GAAP gross margin expected at 78–80% (down from prior 80–82%).

• Non-GAAP operating income forecasted at $101–$106 million (prior $130–$135 million); non-GAAP EPS at $1.64–$1.68 (prior $1.95–$1.99).

• Guidance assumes Q2 will show seasonal strength; if not, guidance may be revised downward.

• Tariffs expected to impact gross margin by 2–3% if current 10% rate holds; further increases could require updated guidance.

• Management expects U.S. market headwinds and tariff impacts to persist through year-end.