InMode (NASDAQ:INMD) executives said the company’s fourth quarter results came in “slightly better than expected” as the broader aesthetic market continued to face pressure from higher interest rates and softer customer demand. Management pointed to early signs of stabilization in procedures and consumables usage, while emphasizing that 2026 is expected to be a “stabilization year” rather than a return to growth.
Management cites early stabilization signals amid industry softness
CEO Moshe Mizrahy said total revenue declined about 6% year-over-year for 2025, but noted that revenue from consumables and services increased slightly compared to the prior year. He said the consumables performance could represent early signs of stabilization in patient activity and usage across the installed base.
North America reorganization and segmented sales approach
Mizrahy said InMode made “decisive steps” in North America during 2025, including the appointment of Michael Dennison as President of North America in October and a reorganization that unified Eastern U.S., Western U.S., and Canada into a single organization. He said the timing limited the impact on fourth quarter results but management expects the new structure, leadership, and commercial initiatives to produce “tangible results” in 2026.
The company also redesigned its commercial organization, segmenting the sales force across aesthetic and wellness with dedicated teams aligned to specific platforms. Management highlighted the creation of a specialized sales team for Envision, citing deep category experience as a lever to increase penetration and improve sales productivity. By contrast, Mizrahy said ApexRF is being sold through the existing organization and that the company is not pushing it aggressively because it does not yet have the FDA indication and does not want to “cross the line.”
Product roadmap expands laser offerings; margin pressure expected
Management reiterated that product innovation is central to strategy. Mizrahy said InMode launched CO2 laser platforms in 2025 that are “performing well” and help expand the portfolio, including by enabling combined treatments. Looking to 2026, the company plans to introduce two new platforms: a Korean-made Pico laser device and a platform combining new Morpheus technology with an Erbium YAG laser.
In discussing the 2026 margin outlook, CFO Yair Malca said lasers generally carry lower gross margins and that the upcoming Pico and Erbium YAG-related launches are expected to weigh on margins. Mizrahy added that some laser products are sourced externally—citing the CO2 platform brought to market in 2025 under another company’s FDA clearance, with modifications to meet InMode requirements—and that sourcing from third parties raises costs versus InMode’s internal manufacturing.
Mizrahy also said U.S. tariffs—he referenced a 15% tariff on imports from Israel—would be another factor affecting gross margin, which management expects to move to “the neighborhood of 75%.” He characterized lasers as the “bread and butter” of medical aesthetics and said that while the laser market is saturated and pricing is relatively low compared to InMode’s RF-based platforms, having a laser portfolio is “a must” for a medical aesthetic company over the long term.
Fourth quarter and full-year financial results
Malca said comparisons were affected by a one-time tax benefit in the fourth quarter of 2024 and suggested that non-GAAP net income provides a more meaningful year-over-year basis.
- Revenue: $103.9 million in Q4 2025 versus $97.9 million in Q4 2024; full-year 2025 revenue was $370.5 million, down 6% from 2024.
- International mix: Q4 sales outside the U.S. were $48.5 million (47% of total), up 38% year-over-year, driven primarily by Europe; full-year 2025 sales outside the U.S. were $171.8 million (46% of total), up 15% from 2024. Management said Europe delivered a record revenue quarter in Q4.
- Margins: GAAP gross margin was 78% in Q4 2025 versus 79% a year earlier; non-GAAP gross margin was 79% in Q4 and for the full year 2025.
- Mix: Minimally invasive platforms accounted for 76% of Q4 revenue and 78% of full-year revenue; consumables and services were 22% of full-year 2025 revenue, up from 20% in 2024.
- Operating expenses: GAAP operating expenses were $55.3 million in Q4 and $205.6 million for the year; non-GAAP operating expenses were $53.2 million in Q4 versus $46.8 million a year earlier and $195.8 million for 2025 versus $189.8 million in 2024.
- Operating margin: GAAP operating margin was 25% in Q4 and 23% for 2025; non-GAAP operating margin was 27% in Q4 (down from 32% in Q4 2024) and 26% for 2025 (down from 33% in 2024), which Malca attributed primarily to higher sales and marketing expenses.
- Earnings: GAAP diluted EPS was $0.42 in Q4 (versus $1.14 a year ago) and $1.43 for 2025 (versus $2.25 in 2024). Non-GAAP diluted EPS was $0.46 in Q4 (versus $0.42) and $1.60 for 2025 (versus $1.76).
Malca said that as of December 31, 2025, InMode had $555.3 million in cash and cash equivalents, marketable securities, and deposits. He also said the company returned $127.4 million to shareholders through share repurchases and generated $22.7 million in operating cash flow during the quarter.
Guidance and strategic alternatives review
For 2026, Malca reiterated guidance calling for revenue of $365 million to $375 million, non-GAAP gross margin of 75% to 77%, non-GAAP income from operations of $87 million to $92 million, and non-GAAP diluted EPS of $1.43 to $1.48. When asked about quarterly phasing, he said he expects the distribution to look similar to 2025.
On strategic alternatives, Mizrahy said the board decided to explore options after executing a multi-year buyback program, stating the company repurchased nearly $508 million of stock over the last roughly two and a half years. He said the board hired Bank of America to assist and that the process is primarily between the board and the bank, with management “not fully involved.” He also said the company has had no contact with Steel Partners regarding its publicized letter about buying 51% of the company for $18 per share, adding that such a purchase would require a tender offer to shareholders.
Separately, Mizrahy provided an update on clinical work for a dry eye indication using bipolar RF. He said InMode has initiated the process with the FDA, completed requested animal safety tests, and expects to conduct a U.S. study under a 510(k) de novo pathway. He indicated the study could run through 2026 and into early 2027, with potential FDA clearance in the second quarter of 2027.
About InMode (NASDAQ:INMD)
InMode Ltd. (NASDAQ:INMD) is a medical technology company headquartered in Israel that develops, manufactures and markets devices for aesthetic and medical treatments. The company specializes in energy-based technologies, primarily radiofrequency platforms, designed to deliver minimally-invasive and non-invasive procedures.
InMode’s product portfolio encompasses a range of modular systems targeting body contouring, facial rejuvenation, skin tightening and other cosmetic applications. Key offerings include devices built on proprietary radiofrequency and radiofrequency-assisted lipolysis, enabling physicians to perform treatments such as tissue coagulation, skin resurfacing and subdermal volumizing with reduced downtime.
The company distributes its technologies through direct sales operations and distribution partners, serving medical professionals across multiple geographies including North America, Europe, Asia Pacific and Latin America.
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