InMode Response Letter to DOMA by Moshe Mizrahy, CEO, Dated May 28, 2025
InMode (NASDAQ: INMD) CEO Moshe Mizrahy has responded to concerns raised by DOMA Perpetual Capital Management LLC in a public letter. The response addresses several key issues:
Regarding share buybacks, InMode has repurchased $412M in shares over the past 12 months and $508M in the last 2.5 years, aiming to return capital to shareholders tax-efficiently. On manufacturing, Mizrahy defended keeping production in Israel, citing the company's expertise and need for proximity to R&D teams. He noted successful on-time deliveries to 90 countries despite ongoing regional conflicts.
Addressing North American sales concerns, Mizrahy attributed the business slowdown to macroeconomic factors and financing difficulties for medical equipment rather than organizational issues. He also defended his leadership style against DOMA's criticism, noting his role as co-founder and long-term manager of the company.
Il CEO di InMode (NASDAQ: INMD), Moshe Mizrahy, ha risposto alle preoccupazioni sollevate da DOMA Perpetual Capital Management LLC in una lettera pubblica. La risposta affronta diversi punti chiave:
Per quanto riguarda i riacquisti di azioni, InMode ha riacquistato azioni per un valore di 412 milioni di dollari negli ultimi 12 mesi e 508 milioni negli ultimi 2,5 anni, con l'obiettivo di restituire capitale agli azionisti in modo fiscalmente efficiente. Sul fronte della produzione, Mizrahy ha difeso la decisione di mantenere la produzione in Israele, sottolineando l'esperienza dell'azienda e la necessità di essere vicini ai team di ricerca e sviluppo. Ha inoltre evidenziato le consegne puntuali in 90 paesi nonostante i conflitti regionali in corso.
Riguardo alle preoccupazioni sulle vendite in Nord America, Mizrahy ha attribuito il rallentamento del business a fattori macroeconomici e difficoltà di finanziamento per le attrezzature mediche, piuttosto che a problemi organizzativi. Ha anche difeso il suo stile di leadership contro le critiche di DOMA, ricordando il suo ruolo di cofondatore e manager di lungo corso dell'azienda.
El CEO de InMode (NASDAQ: INMD), Moshe Mizrahy, ha respondido a las preocupaciones planteadas por DOMA Perpetual Capital Management LLC en una carta pública. La respuesta aborda varios temas clave:
En cuanto a las recompras de acciones, InMode ha recomprado acciones por valor de 412 millones de dólares en los últimos 12 meses y 508 millones en los últimos 2,5 años, con el objetivo de devolver capital a los accionistas de manera fiscalmente eficiente. Sobre la fabricación, Mizrahy defendió mantener la producción en Israel, citando la experiencia de la empresa y la necesidad de proximidad con los equipos de I+D. Destacó las entregas puntuales en 90 países a pesar de los conflictos regionales en curso.
En relación con las preocupaciones sobre las ventas en Norteamérica, Mizrahy atribuyó la desaceleración del negocio a factores macroeconómicos y dificultades de financiación para equipos médicos, en lugar de problemas organizativos. También defendió su estilo de liderazgo frente a las críticas de DOMA, señalando su papel como cofundador y gestor a largo plazo de la empresa.
InMode(NASDAQ: INMD)의 CEO 모셰 미즈라히는 DOMA Perpetual Capital Management LLC가 제기한 우려에 대해 공개 서한으로 답변했습니다. 답변은 몇 가지 주요 사안을 다루고 있습니다:
자사주 매입과 관련해 InMode는 지난 12개월 동안 4억 1,200만 달러, 지난 2년 반 동안 5억 800만 달러어치 주식을 매입했으며, 주주들에게 세금 효율적으로 자본을 환원하는 것을 목표로 하고 있습니다. 제조에 대해서는 미즈라히가 이스라엘 내 생산을 유지하는 이유로 회사의 전문성과 연구개발팀과의 근접성을 들며 방어했습니다. 그는 지역 분쟁에도 불구하고 90개국에 제때 배송을 성공적으로 수행했다고 언급했습니다.
북미 판매 우려에 대해서는 미즈라히가 사업 둔화를 거시경제적 요인과 의료 장비 자금 조달 어려움 때문으로 돌렸으며, 조직 문제 때문이 아니라고 밝혔습니다. 또한 DOMA의 비판에 대해 자신의 리더십 스타일을 방어하며, 자신이 공동 창립자이자 회사의 장기 경영자임을 강조했습니다.
Le PDG d'InMode (NASDAQ : INMD), Moshe Mizrahy, a répondu aux préoccupations soulevées par DOMA Perpetual Capital Management LLC dans une lettre publique. La réponse aborde plusieurs points clés :
Concernant les rachats d'actions, InMode a racheté pour 412 millions de dollars d'actions au cours des 12 derniers mois et 508 millions au cours des 2,5 dernières années, visant à restituer du capital aux actionnaires de manière fiscalement avantageuse. Sur la fabrication, Mizrahy a défendu le maintien de la production en Israël, citant l'expertise de l'entreprise et la nécessité de proximité avec les équipes de R&D. Il a souligné des livraisons réussies et ponctuelles dans 90 pays malgré les conflits régionaux en cours.
Concernant les inquiétudes sur les ventes en Amérique du Nord, Mizrahy a attribué le ralentissement de l'activité à des facteurs macroéconomiques et à des difficultés de financement des équipements médicaux, plutôt qu'à des problèmes organisationnels. Il a également défendu son style de leadership face aux critiques de DOMA, rappelant son rôle de cofondateur et de dirigeant de longue date de l'entreprise.
Der CEO von InMode (NASDAQ: INMD), Moshe Mizrahy, hat auf Bedenken reagiert, die von DOMA Perpetual Capital Management LLC in einem öffentlichen Schreiben geäußert wurden. Die Antwort behandelt mehrere zentrale Punkte:
Bezüglich der Aktienrückkäufe hat InMode in den letzten 12 Monaten Aktien im Wert von 412 Millionen US-Dollar und in den letzten 2,5 Jahren im Wert von 508 Millionen US-Dollar zurückgekauft, mit dem Ziel, Kapital steuerlich effizient an die Aktionäre zurückzugeben. Zur Fertigung verteidigte Mizrahy die Beibehaltung der Produktion in Israel und verwies auf die Expertise des Unternehmens sowie die Nähe zu den F&E-Teams. Er hob erfolgreiche pünktliche Lieferungen in 90 Länder trotz anhaltender regionaler Konflikte hervor.
Zu den Verkaufsbedenken in Nordamerika führte Mizrahy die Geschäftsschwäche auf makroökonomische Faktoren und Finanzierungsschwierigkeiten für medizinische Geräte zurück, nicht auf organisatorische Probleme. Er verteidigte auch seinen Führungsstil gegen die Kritik von DOMA und betonte seine Rolle als Mitgründer und langjähriger Geschäftsführer des Unternehmens.
- Substantial share buyback program with $412M in last 12 months and $508M in 2.5 years
- Maintained consistent product delivery to 90 countries despite regional conflicts
- All sales management positions are fully staffed
- Experiencing business slowdown in North America
- Facing challenges with medical equipment financing
- Management facing criticism from major investor regarding leadership style
Insights
InMode's CEO defends $412M share buybacks, Israeli manufacturing, and leadership against activist investor criticism amid business slowdown.
This response letter from InMode's CEO Moshe Mizrahy to DOMA Capital reveals significant tension between management and at least one activist investor. The CEO defends several strategic decisions that are being questioned, primarily: $412 million in share buybacks over 12 months (totaling $508M over 2.5 years), maintaining production in Israel despite geopolitical risks, and the current sales organization structure in North America.
The defensive tone suggests this is more than routine shareholder communication—it indicates an activist investor challenge to current management practices. Mizrahy appears to be responding to direct criticism of his leadership style, characterized in DOMA's original letter as "reckless and antagonistic" with "dismal leadership and poor performance."
Most revealing is the CEO's acknowledgment of a business slowdown in North America, which he attributes to macroeconomic factors and medical capital equipment financing challenges rather than sales organization issues. This admission of performance challenges provides important context for DOMA's activist approach.
The letter indicates ongoing governance tension, with Mizrahy noting the investor voted to re-elect him to the board despite criticisms. The CEO also mentions that the Board Chairman is expected to issue a separate response, suggesting this matter involves high-level corporate governance considerations and potential challenges to management control or strategy. The fact that these communications have become public signals escalating investor pressure on InMode's leadership team.
YOKNEAM,
The letter can be viewed here
The full text of the letter follows:
May 28, 2025
Mr. Pedro Escudero
CEO and CIO
DOMA, Perpetual Capital Management LLC
Dear Mr. Escudero,
This letter is in response to your letter dated May 9, 2025.
First, I would like to thank you for voting for me to be re-elected to the Board of Directors. I really appreciate your vote of confidence and trust. I understand from this that you believe that my contribution to InMode's Board of Directors is important.
I am answering your letter as the CEO of InMode and presume that Dr. Michael Anghel -the Chairman of InMode – will answer your letter as well.
With regards to the claims you specified in your letter:
Buyback – As you know Pedro, in the last 12 months – we bought-back
Moving production capacity out of
Sales Organization in
My performance as CEO – I believe that writing that my management style is "reckless and antagonistic", with "dismal leadership and poor performance as CEO" is unbased and unethical. I am the co-founder of this company and have been managing it since day one along with my co-founder – Dr. Michael Kreindel – in a very "lean and mean" manner. I will leave the decision regarding myself to my Board of Directors.
Regards,
Moshe Mizrahy
CEO, InMode Ltd.
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 04, 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
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SOURCE InMode Ltd.
FAQ
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