Company: INSP
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0001609550-25-000032
Chunk: 132

Company: Inspire Medical Systems, Inc.
Filing Date: 2025-08-04
Form: 10-Q
Item: Part I, Item 2
Chunk 132
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, the $2.1 million charge associated with excess components related to Inspire IV.

Gross margin decreased to 84.4% for the six months ended June 30, 2025 from 84.8% for the six months ended June 30, 2024. Gross margin for the six months ended June 30, 2025 was lower primarily due to the excess inventory component charges discussed above, somewhat offset by increased sales volume.

Research and Development Expenses

Research and development expenses decreased $3.7 million, or 6.4%, to $54.0 million for the six months ended June 30, 2025 compared to $57.7 million for the six months ended June 30, 2024. This change was primarily due to a decrease of $11.3 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 $7.0 million in compensation and employee-related expenses, mainly as a result of increased headcount and stock-based compensation expense, and an increase of $0.6 million in regulatory submissions and clinical studies expenses and quality compliance fees.

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Selling, General and Administrative Expenses

SG&A expenses increased $46.1 million, or 17.9%, to $303.8 million for the six months ended June 30, 2025 compared to $257.7 million for the six months ended June 30, 2024. The primary driver of this change was an increase of $35.6 million in compensation, including salaries, commissions, stock-based compensation, and other employee-related expenses, mainly as a result of increased headcount. In addition, general corporate costs increased $5.3 million primarily due to legal fees, depreciation expense, computer equipment and software expense, and consulting fees. Also contributing to the increase were travel expenses, which increased by $3.6 million, and marketing costs, which increased by $1.6 million.

Other Income, Net

Other income, net decreased by $5.0 million, to $6.6 million for the six months ended June 30, 2025 compared to $11.6 million for the six months ended June 30, 2024. The change was primarily due to an impairment charge of $4.0 million on one of our strategic investments which occurred in the quarter ended June 30, 2025