Company: INSP
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0001609550-25-000032
Chunk: 56

Company: Inspire Medical Systems, Inc.
Filing Date: 2025-08-04
Form: 10-Q
Item: Part I, Item 1
Chunk 56
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, we believe, increased physician and patient awareness of our Inspire 

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system, partially offset by ENT surgeon capacity constraints and some patients and physicians delaying Inspire therapy until Inspire V is available at their location or while they trial GLP-1 medications.

Revenue generated outside of the U.S. was $9.9 million in the three months ended June 30, 2025, an increase of $1.9 million, or 23.0%, compared to the three months ended June 30, 2024. Revenue growth outside the U.S. was primarily due to increased market penetration, and, we believe, increased physician and patient awareness of our Inspire system.

Cost of Goods Sold and Gross Margin

Cost of goods sold increased $4.8 million, or 16.2%, to $34.7 million for the three months ended June 30, 2025 compared to $29.8 million for the three months ended June 30, 2024. The increase was primarily due to product costs associated with the higher sales volume of our Inspire system experienced during the second quarter of 2025, and, to a lesser extent, the $2.1 million charge associated with excess components related to Inspire IV.

Gross margin was 84.0% for the three months ended June 30, 2025 compared to 84.8% for the three months ended June 30, 2024. Gross margin for the three months ended June 30, 2025 was lower primarily due to excess inventory component charges discussed above, partially offset by increased sales volume.

Research and Development Expenses

Research and development expenses decreased $2.7 million, or 9.2%, to $26.2 million for the three months ended June 30, 2025 compared to $28.9 million for the three months ended June 30, 2024. This change was primarily due to a decrease of $5.9 million in ongoing research and development costs, primarily with respect to our next generation versions of the Inspire neurostimulator, our physician programmer, and our SleepSync™ platform, partially offset by an increase of $3.1 million in compensation and employee-related expenses, mainly as a result of increased headcount and stock-based compensation expense, and an increase of $0.1 million in regulatory submissions and clinical studies expenses.

Selling, General and Administrative Expenses

SG&A expenses increased $27.4 million, or 20.8%, to