Company: INSP
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001609550-25-000053
Chunk: 55

Company: Inspire Medical Systems, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 1
Chunk 55
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 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

Three Months EndedNine Months EndedSeptember 30,September 30,20252024$ Change% Change20252024$ Change% Change(in thousands, except percentages)Revenue$224,501 $203,191 $21,310 10.5 %$642,904 $563,086 $79,818 14.2 %Cost of goods sold31,773 32,398 (625)(1.9)%97,154 86,998 10,156 11.7 %Gross profit192,728 170,793 21,935 12.8 %545,750 476,088 69,662 14.6 %Gross margin85.8%84.1%84.9%84.5%Operating expenses:Research and development24,211 26,083 (1,872)(7.2)%78,223 83,792 (5,569)(6.6)%Selling, general and administrative158,873 130,392 28,481 21.8 %462,684 388,097 74,587 19.2 %Total operating expenses183,084 156,475 26,609 17.0 %540,907 471,889 69,018 14.6 %Operating income9,644 14,318 (4,674)(32.6)%4,843 4,199 644 15.3 %Other income, net(3,907)(6,008)2,101 (35.0)%(10,535)(17,618)7,083 (40.2)%Income before income taxes13,551 20,326 (6,775)(33.3)%15,378 21,817 (6,439)(29.5)%Income