#Israel #financial results #medical technology #Yokneam #InMode Ltd

InMode Ltd. Announces First Quarter 2025 Financial Results

InMode Ltd., a leading provider of innovative medical technologies, has unveiled its financial results for the first quarter of 2025, showing a revenue of $77.9 million. This marks a 3% decline compared to the same period last year, when revenues hit $80.3 million. The decline is largely attributed to a challenging economic landscape and a decrease in consumer demand, which has affected many businesses in various sectors.

Key Financial Highlights

The results reveal that revenue from consumables and services dropped by 10% to $20.2 million, contributing to the overall decrease. The gross margins for the quarter stood at 78%, a slight dip compared to 80% last year. Despite the drop in revenue, InMode managed to maintain a significant cash position, holding $512.9 million in cash and marketable securities as of March 31, 2025.

CEO Moshe Mizrahy expressed the company's commitment to executing its strategy despite the adverse market conditions. He stated, "While these external factors impacted results, we remain focused on executing our strategy. This includes driving operational excellence, investing in innovation, and pursuing disciplined capital allocation." This focus on innovation is being underscored by recent product launches, such as the OptimasMAX and Ignite platforms, which aim to elevate the company's standing in the aesthetics sector.

Shareholder Returns

In a show of confidence, InMode also completed a recent share repurchase program, returning $127 million to shareholders in 2025 alone. This program involved repurchasing 6.95 million shares, showcasing InMode's commitment to creating value for its investors. Over the past year, the company has returned a staggering $412 million to shareholders through repurchases, amounting to around 27% of its share capital.

Looking Ahead

Management has provided a cautious outlook for the remainder of 2025, forecasting total revenues between $395 million and $405 million. They anticipate non-GAAP gross margins to range between 78% and 80%, slightly lower than previously projected. The expected non-GAAP earnings per diluted share is $1.64 to $1.68, down from the earlier guidance of $1.95 to $1.99. These updates highlight the company’s strategic recalibration in light of ongoing market challenges.

International Performance

Amid these challenges, InMode reported particularly strong performance in international markets, particularly in Europe, where despite facing headwinds, the company achieved record revenue. This international success reflects InMode's adaptability and commitment to innovation, even when domestic markets are lagging.

Summary

Despite facing a downward trend in revenue and profits, InMode Ltd. is taking strategic measures to navigate a difficult economic environment. With a robust cash position, a focus on innovation, and significant commitment to shareholder returns, the company remains optimistic about its long-term prospects. As they continue to leverage their expertise in medical technology, including minimally invasive RF procedures, the focus will be on not just surviving, but thriving in the competitive landscape. Investors and stakeholders will be closely watching how InMode adapts its strategies and responds to evolving market conditions in the coming months.

Overall, InMode’s resilience in tough times is commendable, and their strategic directions might well lead to sustained growth in the long term. As the health technology sector continues to evolve, InMode is positioning itself as a key player ready to meet future challenges head-on.