Company: INSP
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0001609550-25-000032
Chunk: 54

Company: Inspire Medical Systems, Inc.
Filing Date: 2025-08-04
Form: 10-Q
Item: Part I, Item 1
Chunk 54
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, and an impairment charge related to a strategic investment. 

Seasonality

Historically, we have experienced seasonality in our first and fourth fiscal quarters, and we expect this trend to continue. In the U.S., we have experienced, and may in the future experience, higher sales in the fourth quarter as a result of patients having paid their annual insurance deductibles in full, thereby reducing their out-of-pocket costs. Conversely, in the first quarter, many U.S. patients' insurance deductibles reset, requiring more out-of-pocket costs, which negatively impacts our sales during this period. We have also begun to experience some seasonality during summer months in the U.S. and Europe, which we believe is attributable to the postponement of elective surgeries due to summer vacation plans of physicians and patients.

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Results of Operations

Three Months EndedSix Months EndedJune 30,June 30,20252024$ Change% Change20252024$ Change% Change(in thousands, except percentages)Revenue$217,086 $195,885 $21,201 10.8 %$418,403 $359,895 $58,508 16.3 %Cost of goods sold34,672 29,843 4,829 16.2 %65,381 54,600 10,781 19.7 %Gross profit182,414 166,042 16,372 9.9 %353,022 305,295 47,727 15.6 %Gross margin84.0%84.8%84.4%84.8%Operating expenses:Research and development26,209 28,859 (2,650)(9.2)%54,012 57,709 (3,697)(6.4)%Selling, general and administrative159,521 132,084 27,437 20.8 %303,811 257,705 46,106 17.9 %Total operating expenses185,730 160,943 24,787 15.4 %357,823 315,414 42,409 13.4 %Operating (loss) income(3,316)5,099 (8,415)(165.0)%(4,801)(10,119)5,318 (52.6)%Other income, net(984)(5,747)4,763 (82.9