#USA #Miami #DOMA Perpetual #InMode #Stock Buybacks

DOMA Perpetual's Call to Action for InMode Board

DOMA Perpetual Capital Management LLC, a prominent investor in InMode Ltd. (NYSE: INMD), has taken a bold step by sending a letter to the company's Board of Directors urging them to implement a capital return strategy for the benefit of shareholders. The letter, which outlines significant concerns regarding management's current practices and the company's valuation, suggests that InMode should initiate a 10% stock buyback in Q4 2025, followed by another 10% in Q1 2026.

In the letter dated September 9, 2025, DOMA expresses apprehension over the deterioration of InMode's market valuation, attributing this decline to what they describe as chaotic management decisions. The firm points to the recent dismissal of the U.S. head of sales, a crucial market for the company, as a significant misstep that indicates a lack of coherent leadership and strategy to bolster sales in this key region.

Moreover, the letter highlights concerns about damaging public comments from CEO Moshe Mizrahy regarding capital allocation and stock buybacks. DOMA argues that these statements have negatively impacted both the company's reputation and valuation, especially as they seem to undermine shareholder interests. To illustrate their point, they referenced Mizrahy's recent remarks which downplayed the effectiveness of share buybacks as a financial strategy, suggesting that these comments have contributed to waning investor confidence.

Despite these challenges, DOMA emphasizes that their intent is not merely to criticize but to remind the Board of its legal and fiduciary obligations to the shareholders. The firm argues that the current state of InMode’s finances—holding 53% of its market capitalization in cash with no debt—does not warrant such high cash reserves, especially given the company's profitability and cash generation capabilities.

In the letter, DOMA underscores that the company has the potential to significantly enhance shareholder value through strategic capital allocation, specifically by executing stock buybacks. They argue that with the current depressed stock price and the company's ability to generate cash flow, a share repurchase program would not only benefit shareholders but also help align the company's valuation with its financial fundamentals.

Capital Management and Shareholder Value

The case for immediate buybacks is strongly presented, with DOMA arguing that the Board's delay in addressing these issues could result in potential legal repercussions if found to be neglecting their fiduciary duties. They illustrate the pressing need for the Board to act decisively, especially as interest rates may affect market conditions favorably in the coming months.

DOMA also tackled misconceptions around stock buybacks, particularly regarding the associated tax implications and the notion that previous repurchases should limit future actions. The firm articulates that, when executed strategically based on market conditions and valuations, buybacks can serve as a powerful tool for value creation, potentially yielding long-term benefits for shareholders.

The urgency of the situation is emphasized by DOMA's warning that the window for capital return will likely close if market conditions shift favorably, highlighting that the market is closely observing InMode's Board actions.

In conclusion, DOMA Perpetual calls for immediate action from the Board of Directors of InMode Ltd. The firm insists that a plan for share repurchases not only aligns with shareholders’ interests but also adheres to the Board's fiduciary responsibilities. By acting now, InMode can strengthen its position in the market, reassure investors, and capitalize on its robust financial standing, all while enhancing shareholder value in a meaningful way.

DOMA Perpetual remains committed to clear communication with the Board and hopes that this letter catalyzes necessary changes that will benefit the true owners of InMode—its shareholders.