Company: INSP
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001609550-25-000020
Chunk: 115

Company: Inspire Medical Systems, Inc.
Filing Date: 2025-05-05
Form: 10-Q
Item: Part I, Item 2
Chunk 115
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 period. Overall revenue growth was primarily due to increased market penetration in existing centers, expansion into new territories and centers, and, we believe, increased physician and patient awareness of our Inspire system, partially offset by ENT surgeon capacity constraints.

Revenue information by region is summarized as follows:Three Months Ended March 31,20252024ChangeAmount% of RevenueAmount% of Revenue$%(in thousands, except percentages)United States$193,606 96.2 %$155,771 95.0 %$37,835 24.3 %All other countries7,711 3.8 %8,239 5.0 %(528)(6.4)%Total revenue$201,317 100.0 %$164,010 100.0 %$37,307 22.7 %

Revenue generated in the U.S. was $193.6 million for the three months ended March 31, 2025, an increase of $37.8 million, or 24.3%, compared to the three months ended March 31, 2024. Revenue growth in the U.S. was primarily due to increased market penetration in existing centers, the expansion into new territories and centers, and, we believe, increased physician and patient awareness of our Inspire system.

Revenue generated outside of the U.S. was $7.7 million in the three months ended March 31, 2025, a decrease of $0.5 million, or 6.4%, compared to the three months ended March 31, 2024. During the fourth quarter of 2023, not having received EU MDR certification of our silicone-based stimulation lead and the resulting shortage of polyurethane-based stimulation leads had an estimated adverse impact on European revenue during that period of 

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approximately $4.0 million. The higher revenue experienced during the first quarter of 2024 was partially due to the recovery of most of the estimated $4.0 million of revenue opportunity from the fourth quarter of 2023.

Cost of Goods Sold and Gross Margin

Cost of goods sold increased $6.0 million, or 24.0%, to $30.7 million for the three months ended March 31, 2025 compared to $24.8 million for the three months ended March 31, 2024. The increase was primarily due to product costs associated with the higher sales volume of our Inspire system experienced during the first quarter of 202