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InMode’s Q3 2025 Financial Update

InMode Ltd., a prominent name in the realm of medical technology, recently unveiled its financial performance for the third quarter of 2025. This report holds significant interest for both investors and industry stakeholders as it highlights key financial metrics and strategic insights within a challenging economic landscape.

Key Financial Metrics

In the third quarter of 2025, InMode recorded GAAP revenues of $93.2 million. This figure marks a notable decrease from $130.2 million reported in the same quarter of the previous year, which included $31.9 million from pre-order sales. Notably, revenues generated from consumables and services amounted to $19.9 million, reflecting a robust 26% increase compared to Q3 2024.

The company’s gross margin achieved was 78%, a slight dip from 82% in Q3 2024. Despite this decline, the gross margins remain a strong aspect of InMode’s financial health, positioning them well within the competitive landscape.

Operating Income and Net Income

InMode reported a GAAP operating income of $20.9 million, with a non-GAAP operating income of $23.6 million. Furthermore, net income for the third quarter was $21.9 million, or $0.34 per diluted share, down from $51 million, or $0.65 per diluted share, in Q3 2024. When considered on a non-GAAP basis, net income amounted to $24.5 million, translating to $0.38 per diluted share.

The total cash position as of September 30, 2025, stood at a sturdy $532.3 million, encompassing cash and cash equivalents, marketable securities, and short-term bank deposits. This healthy liquidity reinforces the company’s capacity for future investments and operational stability.

Management Insights

During the earnings call, CEO Moshe Mizrahy expressed satisfaction with the quarter's performance despite broader economic challenges. He acknowledged the cautious consumer sentiment prevailing in the market and global uncertainties but emphasized InMode's focus on strategic growth areas. Furthermore, he introduced Michael Dennison as the new President of North America, emphasizing the leadership team's capabilities to drive future success.

CFO Yair Malca also noted the gross margins' alignment with expectations, especially considering the proactive measures taken to mitigate tariff impacts. The emphasis on operational discipline and investment in strategic initiatives suggests a well-structured approach to navigating current market dynamics.

Looking Forward: 2025 Outlook

Management provided guidance for the complete fiscal year, maintaining revenue projections between $365 million and $375 million. They expect a non-GAAP gross margin to fall between 78% and 80%, with non-GAAP operating income projected to range from $93 million to $98 million. The anticipated non-GAAP earnings per diluted share are expected to be between $1.55 and $1.59. This steadiness in outlook, even amid economic fluctuations, reflects a commitment to long-term sustainability and investor confidence.

Current Global Context

InMode’s operations have remained stable amid ongoing political turmoil in Israel. Following a recent cease-fire agreement, the company remains vigilant, monitoring geopolitical developments while ensuring business continuity. As per management's updates, there have been no significant impacts on operations thus far, which illustrates effective crisis management protocols.

Conclusion

In summary, InMode’s Q3 2025 report presents a nuanced view of its financial health, prompting a cautious yet optimistic outlook for the future. While revenue figures showcase challenges, the underlying metrics and strategic leadership transitions reinforce the company’s commitment to innovation and growth in the medical technology sector. Investors will likely remain focused on how InMode navigates the complexities of the evolving market landscape in the coming quarters.