Company: INSP
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001609550-25-000020
Chunk: 114

Company: Inspire Medical Systems, Inc.
Filing Date: 2025-05-05
Form: 10-Q
Item: Part I, Item 2
Chunk 114
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 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

Comparison of the Three Months Ended March 31, 2025 and 2024

Three Months EndedMarch 31,20252024$ Change% Change(in thousands, except percentages)Revenue$201,317 $164,010 $37,307 22.7 %Cost of goods sold30,709 24,757 5,952 24.0 %Gross profit170,608 139,253 31,355 22.5 %Gross margin84.7%84.9%Operating expenses:Research and development27,803 28,850 (1,047)(3.6)%Selling, general and administrative144,290 125,621 18,669 14.9 %Total operating expenses172,093 154,471 17,622 11.4 %Operating loss(1,485)(15,218)13,733 (90.2)%Other income, net(5,644)(5,863)219 (3.7)%Income (loss) before income taxes4,159 (9,355)13,514 (144.5)%Income taxes1,167 650 517 79.5 %Net income (loss)$2,992 $(10,005)$12,997 (129.9)%

Revenue

Revenue increased $37.3 million, or 22.7%, to $201.3 million for the three months ended March 31, 2025 compared to $164.0 million for the three months ended March 31, 2024. These results reflect an increase in sales of our Inspire system of $37.8 million in the U.S. offset by a decrease of $0.5 million outside of the U.S. compared to the same prior year