InMode Reports Second Quarter 2026 Financial Results: Quarterly GAAP Revenues of $95.6 Million, Consistent with the Second Quarter of 2025
Rhea-AI Summary
InMode (Nasdaq: INMD) reported second quarter 2026 GAAP revenues of $95.6 million, essentially flat versus Q2 2025. Consumables and service revenues rose 13% to $22.3 million, driven mainly by international markets. Asia delivered a quarterly revenue record.
GAAP gross margin declined to 75% from 80%, while GAAP operating margin fell to 13% from 24%. GAAP net income decreased to $17.1 million (diluted EPS $0.29) from $26.7 million ($0.42). Non-GAAP net income was $20.8 million (EPS $0.35) versus $30.1 million ($0.47). The margin pressure is attributed to higher cost of goods sold, product mix, North America sales restructuring, increased marketing and sales spending, and higher G&A, which management expects to persist.
As of June 30, 2026, InMode held $501.1 million in cash, equivalents, marketable securities and deposits and had completed repurchases of 6.38 million shares for $87.8 million. The company guided 2026 revenues to $365–$375 million and non-GAAP EPS to $1.29–$1.34.
Positive
- Q2 2026 revenue stable at $95.6M vs. $95.6M in Q2 2025
- Consumables and service revenue up 13% YoY to $22.3M in Q2 2026
- Strong liquidity with $501.1M in cash, marketable securities and deposits at June 30, 2026
- Share repurchase of 6.38M ordinary shares for $87.8M completed under existing program
- 2026 outlook guiding revenue to $365M–$375M and non-GAAP EPS to $1.29–$1.34
Negative
- GAAP gross margin down to 75% from 80% in Q2 2025
- GAAP operating margin declined to 13% from 24% year over year
- GAAP net income fell to $17.1M from $26.7M; EPS $0.29 vs. $0.42
- Non-GAAP net income decreased to $20.8M from $30.1M; EPS $0.35 vs. $0.47
- Higher costs from cost of goods, sales restructuring, marketing and G&A expected to continue
- Total shareholders’ equity decreased to $629.1M from $683.2M since December 31, 2025
News Explained
No ownership or cash terms are committed while InMode’s special committee evaluates unsolicited proposals.
InMode’s second-quarter release keeps its unsolicited-proposal process at the evaluation stage; because no transaction is reported as completed, ownership or cash consequences for existing holders are not committed here.
Separately, the company says Moshik Itzkovich became chief financial officer and Dr. Shlomo Nass became board chairman, both effective May 19, 2026, while former CFO Yair Malca remains a consultant.
The next material milestone is the special committee’s conclusion on the unsolicited proposals, which would clarify whether the process advances beyond evaluation.
AI-generated analysis. How Rhea-AI works. Not financial advice.
YOKNEAM,
Second Quarter 2026 Highlights:
- Quarterly GAAP revenues of
$95.6 million - Quarterly revenues from consumables and service of
$22.3 million 13% compared to the second quarter of 2025. - GAAP operating income of
$12.3 million $16.0 million - Total cash position of
$501.1 million - Completed the repurchase of 6.38 million ordinary shares for an aggregate purchase price of
$87.8 million
( | |
Q2 2026 | Q2 2025 |
75 % | 80 % |
13 % | 24 % |
*Non-GAAP Results | |
( | |
Q2 2026 | Q2 2025 |
75 % | 80 % |
17 % | 28 % |
*Please refer to "Use of non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A reconciliation between | |
Management Comments
"Overall revenue was consistent with the prior-year period, and we saw continued stability in our
Second Quarter 2026 Financial Results
Total GAAP revenues for the second quarter of 2026 were
GAAP gross margin for the second quarter of 2026 was
*Non-GAAP gross margin for the second quarter of 2026 was
GAAP operating margin for the second quarter of 2026 was
InMode reported GAAP net income of
As of June 30, 2026, InMode had cash and cash equivalents, marketable securities and short-term bank deposits of
Appointed New Chief Financial Officer and New Board Director
On May 20, 2026, the Company announced the appointment of Dr. Shlomo Nass as its new Chairman of the Company's Board of Directors, effective May 19, 2026. The Company also announced the appointment of Moshe (Moshik) Itzkovich as the Company's new Chief Financial Officer, effective May 19, 2026, while former Chief Financial Officer Yair Malca continues to be engaged with the Company as a consultant.
2026 Financial Outlook
Management provided an outlook for the full fiscal year ending December 31, 2026. Based on current estimates, management expects:
- Revenues between
$365 million $375 million - *Non-GAAP gross margin between
74% and76% - *Non-GAAP income from operations to be between
$68 million $73 million - *Non-GAAP earnings per diluted share between
$1.29 $1.34
However, these expectations are based on management's current estimates, which may be updated.
This outlook is not a guarantee of future performance, and shareholders 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
Conference Call and Webcast Update
As previously announced, while the Company's Special Committee continues its evaluation of unsolicited proposals, the Company will not host an investor conference call or webcast in connection with this earnings release and will not be conducting investor meetings at this time.
The Current Situation in
The scope and severity of ongoing conflicts in
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, non-GAAP gross margin and non-GAAP income from operations. Because these measures are used in InMode's internal analysis of financial and operating performance, management believes they provide investors with greater transparency into 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. Reconciliations of non-GAAP gross margin, non-GAAP income from operations, and non-GAAP earnings per diluted share for management's projections of such non-GAAP financials for the 2026 fiscal year are not available without unreasonable effort due to the variability, complexity and limited visibility of certain reconciling items. These reconciling items could have a significant and unpredictable impact on our future GAAP results.
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 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 actual amount of share repurchases made by the Company, if any. 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 10, 2026, and our subsequent 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:
Moshik Itzkovich
Chief Financial Officer
Email: Moshik.Itzkovich@inmodemd.com
Investor Relations Contact:
Miri Segal
MS-IR LLC
Email: ir@inmodemd.com
INMODE LTD. | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||
( | ||||||
(Unaudited) | ||||||
Three months ended | Six months ended | |||||
June 30, | June 30, | |||||
2026 | 2025 | 2026 | 2025 | |||
REVENUES | 95,589 | 95,602 | 177,606 | 173,476 | ||
COST OF REVENUES | 24,073 | 19,152 | 44,538 | 36,115 | ||
GROSS PROFIT | 71,516 | 76,450 | 133,068 | 137,361 | ||
OPERATING EXPENSES: | ||||||
Research and development | 3,656 | 3,372 | 7,198 | 6,267 | ||
Sales and marketing | 50,818 | 47,474 | 93,750 | 87,201 | ||
General and administrative | 4,785 | 2,723 | 9,807 | 5,394 | ||
TOTAL OPERATING EXPENSES | 59,259 | 53,569 | 110,755 | 98,862 | ||
OPERATING INCOME | 12,257 | 22,881 | 22,313 | 38,499 | ||
Finance income, net | 7,432 | 8,062 | 11,728 | 14,921 | ||
INCOME BEFORE INCOME TAXES | 19,689 | 30,943 | 34,041 | 53,420 | ||
INCOME TAXES | 2,625 | 4,201 | 5,415 | 8,477 | ||
NET INCOME | 17,064 | 26,742 | 28,626 | 44,943 | ||
EARNINGS PER SHARE: | ||||||
Basic | 0.29 | 0.42 | 0.47 | 0.68 | ||
Diluted | 0.29 | 0.42 | 0.46 | 0.68 | ||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF EARNINGS PER SHARE (in thousands) | ||||||
Basic | 58,903 | 63,252 | 61,140 | 65,982 | ||
Diluted | 59,378 | 63,637 | 61,717 | 66,540 | ||
INMODE LTD. | ||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
( | ||
(Unaudited) | ||
June 30, 2026 | December 31, 2025 | |
Assets | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | 396,173 | 302,543 |
Marketable securities | 18,995 | 83,632 |
Short-term bank deposits | 85,947 | 169,159 |
Accounts receivable, net of allowance for credit losses | 44,555 | 43,504 |
Prepaid expenses and other receivables | 32,664 | 25,733 |
Inventories | 71,661 | 74,050 |
TOTAL CURRENT ASSETS | 649,995 | 698,621 |
NON-CURRENT ASSETS: | ||
Accounts receivable, net of allowance for credit losses | 5,686 | 3,005 |
Deferred income tax assets | 52,629 | 53,230 |
Operating lease right-of-use assets | 8,693 | 8,274 |
Property and equipment, net | 2,628 | 2,599 |
Other investments | 700 | 700 |
TOTAL NON-CURRENT ASSETS | 70,336 | 67,808 |
TOTAL ASSETS | 720,331 | 766,429 |
Liabilities and shareholders' equity | ||
CURRENT LIABILITIES: | ||
Accounts payables | 18,792 | 17,912 |
Contract liabilities | 15,452 | 12,093 |
Other liabilities | 45,193 | 40,739 |
TOTAL CURRENT LIABILITIES | 79,437 | 70,744 |
NON-CURRENT LIABILITIES: | ||
Contract liabilities | 2,484 | 3,043 |
Other liabilities | 4,825 | 4,436 |
Operating lease liabilities | 4,451 | 5,008 |
TOTAL NON-CURRENT LIABILITIES | 11,760 | 12,487 |
TOTAL LIABILITIES | 91,197 | 83,231 |
TOTAL SHAREHOLDERS' EQUITY | 629,134 | 683,198 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 720,331 | 766,429 |
INMODE LTD. | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
( | ||||||
(Unaudited)
| ||||||
Three months ended | Six months ended | |||||
2026 | 2025 | 2026 | 2025 | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net income | 17,064 | 26,742 | 28,626 | 44,943 | ||
Adjustments required to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation and amortization | 179 | 191 | 354 | 365 | ||
Share-based compensation expenses | 3,708 | 3,418 | 6,407 | 5,936 | ||
Change in allowance for credit losses of trade receivable | 719 | 147 | 1,244 | 53 | ||
Loss on marketable securities, net | – | 5 | – | 3 | ||
Finance expenses (income), net | 388 | (313) | 1,107 | (1,887) | ||
Deferred income taxes | 295 | 566 | 622 | 1,462 | ||
Changes in operating assets and liabilities: | ||||||
Decrease (increase) in accounts receivable (current and non-current) | (5,046) | (3,285) | (4,974) | 1,259 | ||
Decrease (increase) in other receivables | (1,164) | 1,276 | (7,030) | (2,256) | ||
Decrease (increase) in inventories | (253) | (4,329) | 2,389 | (8,562) | ||
Increase in accounts payable | 1,939 | 2,430 | 880 | 3,700 | ||
Increase (decrease) in other liabilities (current and non-current) | 4,400 | 127 | 4,012 | (3,160) | ||
Increase (decrease) in contract liabilities (current and non-current) | (1,178) | (2,903) | 2,800 | (3,740) | ||
Net cash provided by operating activities | 21,051 | 24,072 | 36,437 | 38,116 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Investment in short-term deposits | (85,000) | (25,000) | (169,912) | (25,000) | ||
Proceeds from short-term deposits | 84,912 | 55,000 | 252,570 | 86,297 | ||
Purchase of fixed assets | (211) | (219) | (383) | (304) | ||
Purchase of marketable securities | – | - | (9,727) | (20,877) | ||
Proceeds from sale of marketable securities | – | - | – | 3,003 | ||
Proceeds from maturity of marketable securities | 37,983 | 41,875 | 74,239 | 104,022 | ||
Net cash provided by investing activities | 37,684 | 71,656 | 146,787 | 147,141 | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Tax withholding related to vesting of restricted share units | - | - | (1,802) | - | ||
Repurchase of ordinary shares | (56,511) | (27,484) | (87,752) | (127,444) | ||
Exercise of options | 19 | 505 | 636 | 999 | ||
Net cash used in financing activities | (56,492) | (26,979) | (88,918) | (126,445) | ||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (365) | 1,540 | (676) | 2,096 | ||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 1,878 | 70,289 | 93,630 | 60,908 | ||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 394,295 | 145,948 | 302,543 | 155,329 | ||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 396,173 | 216,237 | 396,173 | 216,237 | ||
INMODE LTD. | ||||||||||||
CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS | ||||||||||||
( | ||||||||||||
(Unaudited) | ||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||
Revenues by Category: | ||||||||||||
Capital Equipment revenues - | 43,084 | 45 % | 40,653 | 42 % | 76,753 | 43 % | 70,195 | 40 % | ||||
Capital Equipment revenues - International | 30,194 | 32 % | 35,133 | 37 % | 57,179 | 32 % | 63,266 | 37 % | ||||
Total Capital Equipment revenues | 73,278 | 77 % | 75,786 | 79 % | 133,932 | 75 % | 133,461 | 77 % | ||||
Consumables and service revenues | 22,311 | 23 % | 19,816 | 21 % | 43,674 | 25 % | 40,015 | 23 % | ||||
Total Revenue | 95,589 | 100 % | 95,602 | 100 % | 177,606 | 100 % | 173,476 | 100 % | ||||
Three months ended June 30, | Six months ended June 30, | |||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||
% | % | % | % | |||||||||
International | Total | International | Total | International | Total | International | Total | |||||
Revenues by Technology: | ||||||||||||
Minimal-Invasive | 71 | 73 | 73 | 73 | 82 | 78 | 73 | 77 | 75 | 82 | 81 | 81 |
Hands-Free | 1 | 2 | 1 | 4 | 2 | 3 | 1 | 1 | 1 | 3 | 2 | 3 |
Non-Invasive | 28 | 25 | 26 | 23 | 16 | 19 | 26 | 22 | 24 | 15 | 17 | 16 |
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 | ||||||||||||||||
( | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three months ended June 30, 2026 | Three months ended June 30, 2025 | |||||||||||||||
GAAP | Stock Based Compensation | Non-GAAP | GAAP | Stock Based Compensation | Non-GAAP | |||||||||||
REVENUES | 95,589 | – | 95,589 | 95,602 | – | 95,602 | ||||||||||
COST OF REVENUES | 24,073 | (302) | 23,771 | 19,152 | (334) | 18,818 | ||||||||||
GROSS PROFIT | 71,516 | 302 | 71,818 | 76,450 | 334 | 76,784 | ||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Research and development | 3,656 | (282) | 3,374 | 3,372 | (287) | 3,085 | ||||||||||
Sales and marketing | 50,818 | (2,525) | 48,293 | 47,474 | (2,529) | 44,945 | ||||||||||
General and administrative | 4,785 | (599) | 4,186 | 2,723 | (268) | 2,455 | ||||||||||
TOTAL OPERATING EXPENSES | 59,259 | (3,406) | 55,853 | 53,569 | (3,084) | 50,485 | ||||||||||
OPERATING INCOME | 12,257 | 3,708 | 15,965 | 22,881 | 3,418 | 26,299 | ||||||||||
Finance income, net | 7,432 | – | 7,432 | 8,062 | - | 8,062 | ||||||||||
INCOME BEFORE INCOME TAXES | 19,689 | 3,708 | 23,397 | 30,943 | 3,418 | 34,361 | ||||||||||
INCOME TAXES | 2,625 | (40) | 2,585 | 4,201 | 21 | 4,222 | ||||||||||
NET INCOME | 17,064 | 3,748 | 20,812 | 26,742 | 3,397 | 30,139 | ||||||||||
EARNINGS PER SHARE | ||||||||||||||||
Basic | 0.29 | 0.35 | 0.42 | 0.48 | ||||||||||||
Diluted | 0.29 | 0.35 | 0.42 | 0.47 | ||||||||||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN | ||||||||||||||||
Basic | 58,903 | 58,903 | 63,252 | 63,252 | ||||||||||||
Diluted | 59,378 | 60,174 | 63,637 | 64,537 | ||||||||||||
Six months ended June 30, 2026 | Six months ended June 30, 2025 | ||||||||||||||
GAAP | Stock Based Compensation | Expenses | Non-GAAP | GAAP | Stock Based Compensation | Non-GAAP | |||||||||
REVENUES | 177,606 | – | – | 177,606 | 173,476 | - | 173,476 | ||||||||
COST OF REVENUES | 44,538 | (616) | – | 43,922 | 36,115 | (644) | 35,471 | ||||||||
GROSS PROFIT | 133,068 | 616 | – | 133,684 | 137,361 | 644 | 138,005 | ||||||||
OPERATING EXPENSES: | |||||||||||||||
Research and development | 7,198 | (550) | – | 6,648 | 6,267 | (509) | 5,758 | ||||||||
Sales and marketing | 93,750 | (4,386) | – | 89,364 | 87,201 | (4,292) | 82,909 | ||||||||
General and administrative | 9,807 | (855) | (1,262) | 7,690 | 5,394 | (491) | 4,903 | ||||||||
TOTAL OPERATING EXPENSES | 110,755 | (5,791) | (1,262) | 103,702 | 98,862 | (5,292) | 93,570 | ||||||||
OPERATING INCOME | 22,313 | 6,407 | 1,262 | 29,982 | 38,499 | 5,936 | 44,435 | ||||||||
Finance income, net | 11,728 | – | – | 11,728 | 14,921 | - | 14,921 | ||||||||
INCOME BEFORE INCOME TAXES | 34,041 | 6,407 | 1,262 | 41,710 | 53,420 | 5,936 | 59,356 | ||||||||
INCOME TAXES | 5,415 | (389) | – | 5,026 | 8,477 | (655) | 7,822 | ||||||||
NET INCOME | 28,626 | 6,796 | 1,262 | 36,684 | 44,943 | 6,591 | 51,534 | ||||||||
EARNINGS PER SHARE | |||||||||||||||
Basic | 0.47 | 0.60 | 0.68 | 0.78 | |||||||||||
Diluted | 0.46 | 0.59 | 0.68 | 0.77 | |||||||||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in Thousands) | |||||||||||||||
Basic | 61,140 | 61,140 | 65,982 | 65,982 | |||||||||||
Diluted | 61,717 | 62,324 | 66,540 | 67,052 | |||||||||||
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SOURCE InMode Ltd.