InMode Reports Third Quarter 2025 Financial Results: Quarterly Revenue of $93.2 Million, 78% Gross Margins

Rhea-AI Summary

InMode (NASDAQ: INMD) reported Q3 2025 GAAP revenue of $93.2M, down from $130.2M in Q3 2024 (which included $31.9M of pre-order sales). GAAP and non-GAAP gross margin was 78%. GAAP net income was $21.9M ($0.34 diluted EPS) and non-GAAP net income was $24.5M ($0.38 diluted EPS). Cash and marketable securities totaled $532.3M as of September 30, 2025. Management reaffirmed full‑year 2025 guidance: revenues of $365M–$375M, non‑GAAP gross margin 78%–80%, non‑GAAP operating income $93M–$98M, and non‑GAAP EPS $1.55–$1.59. Company noted cautious consumer demand and named Michael Dennison president of North America.

Positive

• Consumables & service revenue +26% YoY to $19.9M
• Cash and equivalents of $532.3M at Sept 30, 2025
• 2025 guidance reaffirmed: $365M–$375M revenue range

Negative

• Quarterly revenue down ~28% YoY to $93.2M
• GAAP net income fell from $51.0M to $21.9M
• Operating margin declined from 37% to 22% YoY
• Diluted EPS declined from $0.65 to $0.34

Insights

Financial Results Analyst

Q3 revenue fell versus last year, margins compressed but cash remains strong; guidance held steady.

Business mechanism: InMode reported $93.2 million in Q3 2025 revenue versus $130.2 million in Q3 2024, a decline driven in part by the absence of pre-order sales that contributed $31.9 million in the prior-year quarter. Gross margin narrowed to 78% from 82%, and GAAP net income declined to $21.9 million (EPS $0.34) from $51.0 million (EPS $0.65), while cash and equivalents remain substantial at $532.3 million.

Dependencies and risks: the company attributes margin and operating-margin contraction largely to lower sales in its most profitable U.S. region and to tariff planning; those are the primary near-term drivers for profitability. Management kept full-year 2025 guidance unchanged (revenues $365–$375 million, non‑GAAP gross margin 78–80%, non‑GAAP operating income $93–$98 million, non‑GAAP EPS $1.55–$1.59), so performance through the remainder of the year versus that guidance is the key risk to monitor.

What to watch and timing: monitor sequential revenue trends and U.S. sales recovery in upcoming quarters, non‑GAAP operating income relative to the provided full year 2025 guidance, and gross‑margin sensitivity to tariffs and regional mix; the conference call on November 5, 2025 and subsequent quarterly reports will provide the next concrete datapoints.

YOKNEAM, Israel, Nov. 5, 2025 /PRNewswire/ -- InMode Ltd. (NASDAQ: INMD) ("InMode"), a leading global provider of innovative medical technologies, today announced its consolidated financial results for the third quarter ended September 30, 2025.

Third Quarter 2025 Highlights:

• Quarterly GAAP revenues of $93.2 million, compared to $130.2 million in the third quarter of 2024, which included $31.9 million of pre-order sales.
• Quarterly revenues from consumables and service of $19.9 million, an increase of 26% compared to the third quarter of 2024.
• GAAP operating income of $20.9 million. *Non-GAAP operating income was $23.6 million.
• Total cash position of $532.3 million as of September 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)
	Q3 2025	Q3 2024
Revenues	$93,165	$130,232 (including $31.9M of pre-order sales)
Gross Margins	78 %	82 %
Net Income	$21,863	$50,990
Earnings per Diluted Share	$0.34	$0.65
*Non-GAAP Results (U.S. dollars in thousands, except for per share data)
	Q3 2025	Q3 2024
Gross Margins	78 %	82 %
Net Income	$24,532	$54,971
Earnings per Diluted Share	$0.38	$0.70
*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 third quarter progressed in line with our expectations, even as broader economic conditions continued to present challenges," said Moshe Mizrahy, Chief Executive Officer of InMode. "Consumer sentiment remains cautious, and global uncertainties persist. Nonetheless, our team remains focused, executing with discipline and investing in the strategic areas that will fuel our long-term trajectory.

"On the corporate front, we are excited to welcome Michael Dennison as our new President of North America.  Michael has been with InMode since 2018 and his proven leadership and industry expertise will be instrumental in advancing our regional strategy, deepening customer engagement, and supporting InMode's sustainable growth," Mizrahy concluded.

Yair Malca, Chief Financial Officer of InMode, added, "Gross margins in the third quarter were in line with expectations and reflected our proactive planning around tariff impacts."

Third Quarter 2025 Financial Results

Total revenues for the third quarter of 2025 were $93.2 million.  In the third quarter of 2024, revenues were $130.2 million (including $31.9 million in revenue from first half of 2024 pre-orders). 

GAAP and a *non-GAAP gross margin for the third quarter was 78%, compared to a gross margin of 82% for the third quarter of 2024.

GAAP operating margin for the third quarter of 2025 was 22%, compared to 37% in the third quarter of 2024. *Non-GAAP operating margin for the third quarter of 2025 was 25%, compared to 40% for the third quarter of 2024.

GAAP operating margin for the nine months ended September 30, 2025, was 22% compared to 29% for the same period in 2024. *Non-GAAP operating margin for the nine months ended September 30, 2025, was 26% compared to 33% for the same period in 2024. The decline in operating margins across both the quarterly and year-to-date periods primarily reflects lower sales in the U.S., which is the company's most profitable region.

InMode reported GAAP net income of $21.9 million, or $0.34 per diluted share, in the third quarter of 2025, compared to $51.0 million, or $0.65 per diluted share, in the third quarter of 2024. On a *non-GAAP basis, InMode reported net income of $24.5 million, or $0.38 per diluted share, in the third quarter of 2025, compared to $55.0 million, or $0.70 per diluted share, in the third quarter of 2024.

As of September 30, 2025, InMode had cash and cash equivalents, marketable securities and short-term bank deposits of $532.3 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 remain the same as in previous guidance between $365 million to $375 million
• *Non-GAAP gross margin remains the same as in previous guidance between 78% and 80%
• *Non-GAAP income from operations remains the same as in previous guidance to be between $93 million and $98 million
• *Non-GAAP earnings per diluted share remain the same as in previous guidance between $1.55 to $1.59

^{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, on October 10, 2025, a new cease-fire agreement between Hamas and Israel began, and the hostilities have formally paused after two years of conflicts. The scope and severity of ongoing conflicts in Gaza, Northern Israel, Lebanon, Iran, and the broader region are unpredictable and could escalate any time. 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, November 5, 2025, at 8:30 a.m. Eastern Time to discuss the third quarter 2025 financial results.

The Company encourages participants to pre-register for the conference call using the following link: 

https://dpregister.com/sreg/10202681/ffd9babcf8. 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=JfIdKlTZ
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://inmodeinvestors.com/events-presentations/. A replay of the conference call will be available from November 5, 2025, at 12 p.m. Eastern Time to November 19, 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: 1-877-344-7529
Replay Dial-in Canada TOLL-FREE: 1-855-669-9658
Replay Dial-in TOLL/INTERNATIONAL: 1-412-317-0088
Replay Pin Number: 2676014

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://inmodeinvestors.com/events-presentations/.

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:
Yair Malca
Chief Financial Officer
Phone: (949) 305-0108
Email: Yair.Malca@inmodemd.com 

Investor Relations Contact:
Miri Segal
MS-IR LLC
Email: ir@inmodemd.com 

 

INMODE LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (U.S. dollars in thousands, except for per share data) (Unaudited)
	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
REVENUES	93,165		130,232		266,641		296,965
COST OF REVENUES	20,856		24,055		56,971		57,536
GROSS PROFIT	72,309		106,177		209,670		239,429
OPERATING EXPENSES:
Research and development	3,543		3,254		9,810		10,470
Sales and marketing	44,970		51,863		132,171		136,713
General and administrative	2,899		2,799		8,293		7,579
TOTAL OPERATING EXPENSES	51,412		57,916		150,274		154,762
OPERATIONS INCOME	20,897		48,261		59,396		84,667
Finance income, net	4,721		9,918		19,642		26,592
INCOME BEFORE INCOME TAXES	25,618		58,179		79,038		111,259
INCOME TAXES	3,755		7,189		12,232		12,755
NET INCOME	21,863		50,990		66,806		98,504
EARNINGS PER SHARE:
Basic	0.35		0.66		1.03		1.20
Diluted	0.34		0.65		1.02		1.19
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF EARNINGS PER SHARE (in thousands)
Basic	63,291		77,022		65,072		81,795
Diluted	63,868		77,908		65,727		83,016

 

INMODE LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands, except for per share data) (Unaudited)
	September 30, 2025		December 31, 2024
Assets
CURRENT ASSETS:
Cash and cash equivalents	252,437		155,329
Marketable securities	121,518		267,688
Short-term bank deposits	158,353		173,455
Accounts receivable, net of allowance for credit losses	38,095		36,335
Prepaid expense and other receivables	24,485		22,097
Inventories	71,403		59,548
TOTAL CURRENT ASSETS	666,291		714,452
NON-CURRENT ASSETS:
Accounts receivable, net of allowance for credit losses	2,350		3,176
Deferred income tax asset	54,104		56,285
Operating lease right-of-use assets	8,922		8,732
Property and equipment, net	2,238		2,322
Other investments	700		700
TOTAL NON-CURRENT ASSETS	68,314		71,215
TOTAL ASSETS	734,605		785,667
Liabilities and shareholders' equity
CURRENT LIABILITIES:
Accounts payable	16,723		13,782
Contract liabilities	15,099		16,755
Other liabilities	36,508		39,314
TOTAL CURRENT LIABILITIES	68,330		69,851
NON-CURRENT LIABILITIES:
Contract liabilities	3,126		3,336
Other liabilities	4,171		3,356
Operating lease liabilities	5,593		5,311
TOTAL NON-CURRENT LIABILITIES	12,890		12,003
TOTAL LIABILITIES	81,220		81,854
TOTAL SHAREHOLDERS' EQUITY	653,385		703,813
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	734,605		785,667

 

INMODE LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands, except for per share data) (Unaudited)
		Three months ended September 30,				Nine months ended September 30,
		2025		2024		2025		2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		21,863		50,990		66,806		98,504
Adjustments required to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		156		138		521		480
Share-based compensation expenses		2,696		3,981		8,632		13,122
Change in allowance for credit losses of trade receivable		106		130		159		414
Loss on marketable securities, net		11		29		14		170
Finance expenses (income), net		3,147		3,863		1,260		(5,934)
Deferred income taxes		602		35		2,064		(58)
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable		(2,353)		(2,570)		(1,094)		1,924
Increase in other receivables		(147)		(860)		(2,403)		(7,577)
Increase in inventories		(3,293)		(5,657)		(11,855)		(13,189)
Increase (decrease) in accounts payable		(759)		(1,235)		2,941		347
Increase (decrease) in other liabilities		564		11,722		(2,596)		6,160
Increase (decrease) in contract liabilities (current and non-current)		1,874		(26,517)		(1,866)		5,859
Net cash provided by operating activities		24,467		34,049		62,583		100,222
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in short-term deposits		(153,904)		(78,390)		(178,904)		(164,687)
Proceeds from short-term deposits		103,390		138,140		189,687		151,640
Purchase of fixed assets		(134)		(77)		(438)		(435)
Purchase of marketable securities		-		(90,820)		(20,877)		(276,513)
Proceeds from sale of marketable securities		14,211		22,233		17,214		69,608
Proceeds from maturity of marketable securities		48,105		122,969		152,127		304,777
Net cash provided by investing activities		11,668		114,055		158,809		84,390
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchase of ordinary shares		-		(76,556)		(127,444)		(165,536)
Exercise of options		249		565		1,248		1,194
Net cash provided by (used in) financing activities		249		(75,991)		(126,196)		(164,342)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		(184)		728		1,912		157
NET INCREASE IN CASH AND CASH EQUIVALENTS		36,200		72,841		97,108		20,427
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		216,237		91,997		155,329		144,411
CASH AND CASH EQUIVALENTS AT END OF PERIOD		252,437		164,838		252,437		164,838

 

INMODE LTD.
CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS (U.S. dollars in thousands, except for per share data) (Unaudited)
	Three months ended September 30,									Nine months ended September 30,
	2025				2024					2025					2024
Revenues by Category:
Capital Equipment revenues - United States	45,203		49 %		85,734			66 %		1,15,398			44 %		1,51,392			51 %
Capital Equipment revenues - International	28,063		30 %		28,662			22 %		91,329			34 %		86,191			29 %
Total Capital Equipment revenues	73,266		79 %		1,14,396			88 %		2,06,727			78 %		2,37,583			80 %
Consumables and service revenues	19,899		21 %		15,836			12 %		59,914			22 %		59,382			20 %
Total Revenue	93,165		100 %		1,30,232			100 %		2,66,641			100 %		2,96,965			100 %

 

	Three months ended September 30,												Nine months ended September 30,
	2025						2024						2025						2024
	%						%						%						%
	United States		International		Total		United States		International		Total		United States		International		Total		United States		International		Total
Revenues by Technology:
Minimal-Invasive	75		76		75		95		77		90		79		79		80		90		82		88
Hands-Free	2		1		2		4		3		4		3		2		2		7		3		5
Non-Invasive	23		23		23		1		20		6		18		19		18		3		15		7
	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 September 30, 2025						Three months ended September 30, 2024
	GAAP		Share Based Compensation		Non-GAAP		GAAP		Share Based Compensation		Non-GAAP
REVENUES	93,165		-		93,165		130,232		-		130,232
COST OF REVENUES	20,856		(343)		20,513		24,055		(481)		23,574
GROSS PROFIT	72,309		343		72,652		106,177		481		106,658
OPERATING EXPENSES:
Research and development	3,543		(274)		3,269		3,254		(890)		2,364
Sales and marketing	44,970		(1,804)		43,166		51,863		(2,300)		49,563
General and administrative	2,899		(275)		2,624		2,799		(310)		2,489
TOTAL OPERATING EXPENSES	51,412		(2,353)		49,059		57,916		(3,500)		54,416
OPERATIONS INCOME	20,897		2,696		23,593		48,261		3,981		52,242
Finance income, net	4,721		-		4,721		9,918		-		9,918
INCOME BEFORE INCOME TAXES	25,618		2,696		28,314		58,179		3,981		62,160
INCOME TAXES	3,755		27		3,782		7,189		-		7,189
NET INCOME	21,863		2,669		24,532		50,990		3,981		54,971
EARNINGS PER SHARE:
Basic	0.35				0.39		0.66				0.71
Diluted	0.34				0.38		0.65				0.70
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF EARNINGS PER SHARE (in thousands)
Basic	63,291				63,291		77,022				77,022
Diluted	63,868				64,531		77,908				78,548

 

	Nine months ended September 30, 2025						Nine months ended September 30, 2024
	GAAP		Share Based Compensation		Non-GAAP		GAAP		Share Based Compensation		Non-GAAP
REVENUES	266,641		-		266,641		296,965		-		296,965
COST OF REVENUES	56,971		(987)		55,984		57,536		(1,361)		56,175
GROSS PROFIT	209,670		987		210,657		239,429		1,361		240,790
OPERATING EXPENSES:
Research and development	9,810		(783)		9,027		10,470		(1,877)		8,593
Sales and marketing	132,171		(6,096)		126,075		136,713		(9,007)		127,706
General and administrative	8,293		(766)		7,527		7,579		(877)		6,702
TOTAL OPERATING EXPENSES	150,274		(7,645)		142,629		154,762		(11,761)		143,001
OPERATIONS INCOME	59,396		8,632		68,028		84,667		13,122		97,789
Finance income, net	19,642		-		19,642		26,592		-		26,592
INCOME BEFORE INCOME TAXES	79,038		8,632		87,670		111,259		13,122		124,381
INCOME TAXES	12,232		(628)		11,604		12,755		-		12,755
NET INCOME	66,806		9,260		76,066		98,504		13,122		111,626
EARNINGS PER SHARE:
Basic	1.03				1.17		1.20				1.36
Diluted	1.02				1.15		1.19				1.34
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF EARNINGS PER SHARE (in thousands)
Basic	65,072				65,072		81,795				81,795
Diluted	65,727				66,199		83,016				83,536

 

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SOURCE InMode Ltd.

FAQ

What were InMode (INMD) Q3 2025 revenues and how do they compare to Q3 2024?

Q3 2025 revenue was $93.2M, down from $130.2M in Q3 2024 (which included $31.9M of pre-order sales).

What gross margin did InMode report for Q3 2025 and how does it affect profitability?

InMode reported a 78% GAAP and non‑GAAP gross margin in Q3 2025, down from 82% a year earlier.

How much cash did InMode (INMD) hold at quarter end September 30, 2025?

InMode had $532.3M in cash, cash equivalents, marketable securities and short‑term deposits.

Did InMode change its full‑year 2025 financial guidance on November 5, 2025?

No, management reaffirmed prior guidance: $365M–$375M revenue and non‑GAAP EPS $1.55–$1.59.

What drove the year‑over‑year margin and income decline in Q3 2025 for INMD?

Management attributed margin and income declines primarily to lower U.S. sales, the company's most profitable region.

Did InMode announce any management changes in the Q3 2025 release?

Yes, the company named Michael Dennison as president of North America.