Company: INSP
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001609550-25-000020
Chunk: 116

Company: Inspire Medical Systems, Inc.
Filing Date: 2025-05-05
Form: 10-Q
Item: Part I, Item 2
Chunk 116
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5.

Gross margin was 84.7% for the three months ended March 31, 2025 compared to 84.9% for the three months ended March 31, 2024.

Research and Development Expenses

Research and development expenses decreased $1.0 million, or 3.6%, to $27.8 million for the three months ended March 31, 2025 compared to $28.9 million for the three months ended March 31, 2024. This change was primarily due to a decrease of $5.4 million in ongoing research and development costs, primarily with respect to our next generation versions of the Inspire neurostimulator and our SleepSync™ platform, partially offset by an increase of $3.9 million in compensation and employee-related expenses, mainly as a result of increased headcount and stock-based compensation expense, and an increase of $0.5 million in regulatory and clinical studies expenses and quality compliance fees.

Selling, General and Administrative Expenses

SG&A expenses increased $18.7 million, or 14.9%, to $144.3 million for the three months ended March 31, 2025 compared to $125.6 million for the three months ended March 31, 2024. The primary driver of this change was an increase of $17.4 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 $2.7 million primarily due to computer equipment and software expense, bank fees, and depreciation expense, as well as an increase in travel expenses of $1.8 million, partially offset by a decrease of $3.2 million of marketing expenses primarily consisting of direct-to-consumer initiatives.

Other Income, Net

Other income, net decreased by $0.2 million, or 3.7%, to $5.6 million for the three months ended March 31, 2025 compared to $5.9 million for the three months ended March 31, 2024. The change was primarily due to a decrease of $0.9 million in interest and dividend income due to lower cash, cash equivalents, and investment balances, and an increase of $0.6 million in foreign currency translation and remeasurement gains.

Income Taxes

We recorded a provision for incomes taxes of approximately $1.2 million and $0.7 million for the three months ended March 31,