InMode Reports Second Quarter 2025 Financial Results: Quarterly Revenue of $95.6 Million, 80% Gross Margins
YOKNEAM, Israel, July 30, 2025 /PRNewswire/ -- InMode Ltd. (Nasdaq: INMD) ("InMode"), a leading global provider of innovative medical technologies, today announced its consolidated financial results for the second quarter ended June 30, 2025.
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Second Quarter 202 5 Highlights:
-- Quarterly GAAP revenues of $95.6 million, compared to $86.4 million in the second quarter of 2024. -- Quarterly revenues from consumables and service of $19.8 million, a decrease of 6% compared to the second quarter of 2024. -- GAAP operating income of $22.9 million, *non-GAAP operating income of $26.3 million. -- Total cash position of $510.7 million as of June 30, 2025, including cash and cash equivalents, marketable securities and short-term bank deposits.
U.S. GAAP Results
(U.S. dollars in thousands, except for per share data)
Q2 2025 Q2 2024
Revenues $95,602 $86,449
Gross Margins 80 % 80 %
Net Income $26,742 $23,818
Earnings per Diluted Share $0.42 $0.28
*Non-GAAP Results
(U.S. dollars in thousands, except for per share data)
Q2 2025 Q2 2024
Gross Margins 80 % 81 %
Net Income $30,139 $28,976
Earnings per Diluted Share $0.47 $0.34
*Please refer to "Use of Non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A reconciliation between U.S. GAAP and non-GAAP Statement of Income is provided following the financial statements that are included in this release. Non-GAAP results exclude share-based compensation and related tax adjustments.
Management Comments
"The second quarter reflects the broader trends we've seen in recent months, with persistent external headwinds, including ongoing macroeconomic uncertainty and a more cautious consumer behavior," said Moshe Mizrahy, Chief Executive Officer of InMode. "While these factors have impacted our results, we remain disciplined in our execution and committed to investing in the capabilities and growth drivers that will enable us to emerge stronger and deliver sustainable long-term value.
"Although broader economic challenges in the U.S. impacted our overall performance this quarter, our international business provided a certain offset. Once again, sales generated from Europe reached a record high in the second quarter," Mizrahy concluded.
Yair Malca, Chief Financial Officer of InMode, added, "Our strong balance sheet is a key asset in these uncertain times, giving us the flexibility to retain top talent, expand globally, and continue leading the industry with cutting-edge technologies. Finally, assuming U.S. tariffs remain at their current level of 10%, we expect gross margins to be impacted by approximately 2% to 3%. We continue to evaluate options to mitigate the effects of these tariffs," Malca concluded.
Second Quarter 2025 Financial Results
Total revenues for the second quarter of 2025 were $95.6 million. In the second quarter of 2024, revenues were $86.4 million, excluding $16.2 million in pre-orders for new platforms which had not yet been delivered by quarter-end.
GAAP gross margin for the second quarter remained steady at 80%, consistent with the second quarter of 2024. *On a non-GAAP basis, gross margin was 80%, compared to 81% last year.
GAAP operating margin for the second quarter of 2025 was 24%, compared to 21% in the second quarter of 2024. *Non-GAAP operating margin for the second quarter of 2025 was 28% compared to 27% for the second quarter of 2024.
InMode reported GAAP net income of $26.7 million, or $0.42 per diluted share, in the second quarter of 2025, compared to $23.8 million, or $0.28 per diluted share, in the second quarter of 2024. On a *non-GAAP basis, InMode reported net income of $30.1 million, or $0.47 per diluted share, in the second quarter of 2025, compared to $29.0 million, or $0.34 per diluted share, in the second quarter of 2024.
As of June 30, 2025, InMode had cash and cash equivalents, marketable securities and short-term bank deposits of $510.7 million.
2025 Financial Outlook
Management provided an outlook for the full year of 2025 ending December 31, 2025. Based on our current estimates, management expects:
-- Revenues between $365 to $375 million, compared to prior guidance of $395 million to $405 million -- *Non-GAAP gross margin remains the same as in previous guidance between 78% and 80% -- *Non-GAAP income from operations to be between $93 million and $98 million, compared to previous guidance of $101 million to $106 million -- *Non-GAAP earnings per diluted share between $1.55 to $1.59, compared to previous guidance of $1.64 to $1.68
This outlook is not a guarantee of future performance, and stockholders should not rely on such forward-looking statements. See "Forward-Looking Statements" for additional information.
*Please refer to "Use of Non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A reconciliation between U.S. GAAP and non-GAAP Statement of Income is provided following the financial statements that are included in this release. Non-GAAP results exclude share-based compensation and related tax adjustments.
The Current Situation in Israel
Regarding the current situation in Israel, the conflict in the region remains volatile. A ceasefire between Israel and Hamas began in January 2025 but collapsed in March. On June 13, Israel launched a pre-emptive strike on Iran, prompting retaliatory missile and drone attacks. A ceasefire between Israel and Iran was reached on June 23, though its durability remains uncertain. The scope and severity of ongoing conflicts in Gaza, Northern Israel, Lebanon, Iran, and the broader region are unpredictable and could escalate further. To date, our operations have not been materially affected. We continue to monitor political and military developments closely and examine the consequences for our operations and assets.
Use of Non-GAAP Financial Measures
In addition to InMode's operating results presented in accordance with GAAP, this release contains certain non-GAAP financial measures including non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating margin. Because these measures are used in InMode's internal analysis of financial and operating performance, management believes they provide investors with greater transparency of its view of InMode's economic performance. Management also believes the presentation of these measures, when analyzed in conjunction with InMode's GAAP operating results, allows investors to more effectively evaluate and compare InMode's performance to that of its peers, although InMode's presentation of its non-GAAP measures may not be strictly comparable to the similarly titled measures of other companies. Schedules reconciling each of these non-GAAP financial measures are provided as a supplement to this release.
Conference Call Information
Mr. Moshe Mizrahy, Chief Executive Officer, Dr. Michael Kreindel, Co-Founder and Chief Technology Officer, Mr. Yair Malca, Chief Financial Officer will host a conference call today, July 30, 2025, at 8:30 a.m. Eastern Time to discuss the second quarter 2025 financial results.
The Company encourages participants to pre-register for the conference call using the following link:
https://dpregister.com/sreg/10201337/ff895a1432.
Callers will receive a unique dial-in number upon registration, which enables immediate access to the call. Participants may pre-register at any time, including up to and after the call start time.
For callers who opt out of pre-registration, please dial one of the following teleconferencing numbers. Please begin by placing your call 10 minutes before the conference call commences. If you are unable to connect using the toll-free number, please try the international dial-in number.
U.S. Toll-Free Dial-in Number: 1-833-316-0562
Israel Toll- Free Dial-in Number: 1-80-921-2373
International Dial-in Number: 1-412-317-5736
Webcast URL: https://event.choruscall.com/mediaframe/webcast.html?webcastid=LXTC7h0
At:
8:30 a.m. Eastern Time
5:30 a.m. Pacific Time
The conference call will also be webcast live from a link on InMode's website at https://inmodemd.com/investors/events-presentations/. A replay of the conference call will be available from July 30, 2025, at 12 p.m. Eastern Time to August 13, 2025, at 11:59 p.m. Eastern Time. To access the replay, please dial one of the following numbers:
Replay Dial-in U.S TOLL-FREE: 1-877-344-752
Replay Dial-in Canada TOLL-FREE: 1-855-669-9658
Replay Dial-in TOLL/INTERNATIONAL: 1-412-317-0088
Replay Pin Number: 4085483
To access the replay using an international dial-in number, please select the link below:
https://services.choruscall.com/ccforms/replay.html
A replay of the conference call will also be available for 90 days on InMode's website at https://inmodemd.com/investors/.
About InMode
InMode is a leading global provider of innovative medical technologies. InMode develops, manufactures, and markets devices harnessing novel radio frequency ("RF") technology. InMode strives to enable new emerging surgical procedures as well as improve existing treatments. InMode has leveraged its medically accepted minimally invasive RF technologies to offer a comprehensive line of products across several categories for plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology. For more information about InMode, please visit www.inmodemd.com.
Forward-Looking Statements
The information in this press release includes forward-looking statements within the meaning of the federal securities laws. These statements generally relate to future events or InMode's future financial or operating performance, including the 2025 revenue projection described above. Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. In some cases, you can identify these statements because they contain words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will," "would" and similar expressions that concern our expectations, strategic plans or intentions. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Consequently, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in InMode's Annual Report on Form 20-F filed with the Securities and Exchange Commission on February 4, 2025, and our future public filings. InMode undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which pertain only as of the date of this press release.
Company Contact: Investor Relations
Contact:
Yair Malca
Miri Segal
Chief Financial Officer
MS-IR LLC
Phone: (949) 305-0108 Email: ir@inmodemd.com
Email: Yair.Malca@inmodemd.com
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INMODE LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(U.S. dollars in thousands, except for per share data)
(Unaudited)
Three months ended Six months ended
June 30, June 30,
2025 2024 2025 2024
REVENUES 95,602 86,449 173,476 166,733
COST OF REVENUES 19,152 17,116 36,115 33,481
GROSS PROFIT 76,450 69,333 137,361 133,252
OPERATING EXPENSES:
Research and development 3,372 3,698 6,267 7,216
Sales and marketing 47,474 45,055 87,201 84,850
General and administrative 2,723 2,266 5,394 4,780
TOTAL OPERATING EXPENSES 53,569 51,019 98,862 96,846
OPERATIONS INCOME 22,881 18,314 38,499 36,406
Finance income, net 8,062 8,690 14,921 16,674
INCOME BEFORE INCOME TAXES 30,943 27,004 53,420 53,080
INCOME TAXES 4,201 3,186 8,477 5,566
NET INCOME 26,742 23,818 44,943 47,514
EARNINGS PER SHARE:
Basic 0.42 0.28 0.68 0.56
Diluted 0.42 0.28 0.68 0.55
WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING USED IN COMPUTATION OF
EARNINGS PER SHARE (in thousands)
Basic 63,252 83,878 65,982 84,205
Diluted 63,637 85,890 66,540 86,520
INMODE LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands, except for per share data)
(Unaudited)
J
une
30, December 31,
2025 2024
Assets
CURRENT ASSETS:
Cash and cash equivalents 216,237 155,329
Marketable securities 183,388 267,688
Short-term bank deposits 111,058 173,455
Accounts receivable, net of allowance for credit losses 35,654 36,335
Prepaid expense and other receivables 24,334 22,097
Inventories 68,110 59,548
TOTAL CURRENT ASSETS 638,781 714,452
NON-CURRENT ASSETS:
Accounts receivable, net of allowance for credit losses 2,545 3,176
Deferred income tax asset 54,763 56,285
Operating lease right-of-use assets 9,299 8,732
Property and equipment, net 2,260 2,322
Other investments 700 700
TOTAL NON-CURRENT ASSETS 69,567 71,215
TOTAL ASSETS 708,348 785,667
Liabilities and shareholders' equity
CURRENT LIABILITIES:
Accounts payable 17,482 13,782
Contract liabilities 12,996 16,755
Other liabilities 36,056 39,314
TOTAL CURRENT LIABILITIES 66,534 69,851
NON-CURRENT LIABILITIES:
Contract liabilities 3,355 3,336
Other liabilities 3,919 3,356
Operating lease liabilities 6,103 5,311
TOTAL NON-CURRENT LIABILITIES 13,377 12,003
TOTAL LIABILITIES 79,911 81,854
TOTAL SHAREHOLDERS' EQUITY 628,437 703,813
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 708,348 785,667
INMODE LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands, except for per share data)
(Unaudited)
Three months ended Six months ended
June 30, June 30,
2025 2024 2025 2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income 26,742 23,818 44,943 47,514
Adjustments required to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 191 177 365 342
Share-based compensation expenses 3,418 5,158 5,936 9,141
Change in allowance for credit losses of trade receivable 147 97 53 284
Loss on marketable securities, net 5 112 3 141
Finance income, net (313) (5,040) (1,887) (9,797)
Deferred income taxes 566 (56) 1,462 (93)
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable (3,285) (4,814) 1,259 4,494
Decrease (increase) in other receivables 1,276 (4,048) (2,256) (6,717)
Increase in inventories (4,329) (1,025) (8,562) (7,532)
Increase in accounts payable 2,430 2,325 3,700 1,582
Increase (decrease) in other liabilities 127 2,241 (3,160) (5,562)
Increase (decrease) in contract liabilities (current and non-current) (2,903) 23,114 (3,740) 32,376
Net cash provided by operating activities 24,072 42,059 38,116 66,173
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in short-term deposits (25,000) (55,000) (25,000) (86,297)
Proceeds from short-term deposits 55,000 13,500 86,297 13,500
Purchase of fixed assets (219) (246) (304) (358)
Purchase of marketable securities - (64,129) (20,877) (185,693)
Proceeds from sale of marketable securities - 33,910 3,003 47,375
Proceeds from maturity of marketable securities 41,875 89,690 104,022 181,808
Net cash provided by (used in) investing activities 71,656 17,725 147,141 (29,665)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchase of ordinary shares (27,484) (88,980) (127,444) (88,980)
Exercise of options 505 395 999 629
Net cash used in financing activities (26,979) (88,585) (126,445) (88,351)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 1,540 (132) 2,096 (571)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 70,289 (28,933) 60,908 (52,414)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 145,948 120,930 155,329 144,411
CASH AND CASH EQUIVALENTS AT END OF PERIOD 216,237 91,997 216,237 91,997
INMODE LTD.
CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS
(U.S. dollars in thousands, except for per share data)
(Unaudited)
Three months ended June 30, Six months ended June 30,
2025 2024 2025 2024
Revenues by Category:
Capital Equipment revenues - United States 40,653 42 % 34,799 41 % 70,195 40 % 65,658 39 %
Capital Equipment revenues - International 35,133 37 % 30,606 35 % 63,266 37 % 57,529 35 %
Total Capital Equipment revenues 75,786 79 % 65,405 76 % 133,461 77 % 123,187 74 %
Consumables and service revenues 19,816 21 % 21,044 24 % 40,015 23 % 43,546 26 %
Total Revenue 95,602 100 % 86,449 100 % 173,476 100 % 166,733 100 %
Three months ended June 30,
Six months ended June 30,
2025 2024 2025 2024
%
%
%
%
United International Total United International Total United International Total United
States States States States International Total
Revenues by
Technology:
Minimal-Invasive 73 82 78 85 86 87 82 81 81 87 84 86
Hands-Free 4 2 3 11 4 7 3 2 3 9 3 6
Non-Invasive 23 16 19 4 10 6 15 17 16 4 13 8
100 100 100 100 100 100 100 100 100 100 100 100
INMODE LTD.
RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF
INCOME TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(U.S. dollars in thousands, except for per share data)
(Unaudited)
Three months ended June 30, 2025 Three months ended June 30,
2024
GAAP Share Based Non-GAAP GAAP Share Based Non-GAAP
Compensation Compensation
REVENUES 95,602 95,602 86,449 86,449
COST OF REVENUES 19,152 (334) 18,818 17,116 (471) 16,645
GROSS PROFIT 76,450 334 76,784 69,333 471 69,804
OPERATING EXPENSES:
Research and development 3,372 (287) 3,085 3,698 (559) 3,139
Sales and marketing 47,474 (2,529) 44,945 45,055 (3,824) 41,231
General and administrative 2,723 (268) 2,455 2,266 (304) 1,962
TOTAL OPERATING 53,569 (3,084) 50,485 51,019 (4,687) 46,332
EXPENSES
OPERATIONS INCOME 22,881 3,418 26,299 18,314 5,158 23,472
Finance income, net 8,062 8,062 8,690 8,690
INCOME BEFORE INCOME TAXES 30,943 3,418 34,361 27,004 5,158 32,162
INCOME TAXES 4,201 21 4,222 3,186 3,186
NET INCOME 26,742 3,397 30,139 23,818 5,158 28,976
EARNINGS PER SHARE:
Basic 0.42 0.48 0.28 0.35
Diluted 0.42 0.47 0.28 0.34
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING USED IN
COMPUTATION OF EARNINGS PER
SHARE (in thousands)
Basic 63,252 63,252 83,878 83,878
Diluted 63,637 64,537 85,890 85,900
Six months ended June 30, 2025 Six months ended June 30, 2024
GAAP Share Based Non-GAAP GAAP Share Based Non-GAAP
Compensation Compensation
REVENUES 173,476 173,476 166,733 166,733
COST OF REVENUES 36,115 (644) 35,471 33,481 (880) 32,601
GROSS PROFIT 137,361 644 138,005 133,252 880 134,132
OPERATING EXPENSES:
Research and development 6,267 (509) 5,758 7,216 (987) 6,229
Sales and marketing 87,201 (4,292) 82,909 84,850 (6,707) 78,143
General and administrative 5,394 (491) 4,903 4,780 (567) 4,213
TOTAL OPERATING 98,862 (5,292) 93,570 96,846 (8,261) 88,585
EXPENSES
OPERATIONS INCOME 38,499 5,936 44,435 36,406 9,141 45,547
Finance income, net 14,921 14,921 16,674 16,674
INCOME BEFORE INCOME TAXES 53,420 5,936 59,356 53,080 9,141 62,221
INCOME TAXES 8,477 (655) 7,822 5,566 5,566
NET INCOME 44,943 6,591 51,534 47,514 9,141 56,655
EARNINGS PER
SHARE:
Basic 0.68 0.78 0.56 0.67
Diluted 0.68 0.77 0.55 0.65
WEIGHTED AVERAGE
NUMBER OF SHARES
OUTSTANDING USED IN
COMPUTATION OF
EARNINGS PER SHARE (in
thousands)
Basic 65,982 65,982 84,205 84,205
Diluted 66,540 67,052 86,520 86,531
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SOURCE InMode Ltd.
