Inspire Medical Systems, Inc. Board Authorizes Share Repurchase Program

Rhea-AI Summary

Inspire Medical Systems (NYSE:INSP), a medical technology company specializing in obstructive sleep apnea solutions, has announced a $200 million share repurchase program authorized by its Board of Directors. The program will run through August 7, 2027.

The announcement comes following the full U.S. launch of Inspire V, the company's next-generation neurostimulation system, representing their largest product launch to date. CEO Tim Herbert emphasized the company's strong financial position, which enables both capital return to shareholders and continued growth investments.

The company maintains flexibility in executing the buyback through various means, including open market purchases and private transactions, with no obligation for a specific number of shares.

Positive

• Authorization of substantial $200 million share repurchase program
• Successful launch of next-generation Inspire V neurostimulation system
• Strong financial position allowing both shareholder returns and growth investments
• Large untapped market opportunity with low current penetration

Negative

• Significant capital allocation to buyback could limit funds for other growth initiatives
• No guarantee on the number of shares to be repurchased

Insights

Financial Analyst

$200M share buyback signals management confidence despite Inspire V launch investments, suggesting stock undervaluation at current prices.

Inspire Medical Systems has announced a substantial $200 million share repurchase program, authorizing the company to buy back its common stock through August 2027. This strategic financial move comes simultaneously with the company's largest product launch ever - the Inspire V neurostimulation system for obstructive sleep apnea patients.

The dual approach of capital return while maintaining growth investments signals strong confidence from management. CEO Tim Herbert explicitly stated they believe the stock is undervalued relative to their growth prospects, making share repurchases an "attractive investment opportunity."

The repurchase authorization represents a balanced capital allocation strategy. While exact share count isn't provided, this program likely represents a meaningful percentage of Inspire's market capitalization. The company maintains flexibility in execution - they can adjust timing, method, and purchase amounts based on market conditions, with no obligation to complete the full program.

What's particularly noteworthy is Inspire's ability to return capital while still investing aggressively in their Inspire V launch and footprint expansion. This suggests robust cash generation capabilities and a strong balance sheet. The company also emphasizes their minimal penetration into their addressable sleep apnea market, highlighting substantial runway for future growth.

This announcement effectively communicates management's vote of confidence in their business prospects while providing a potential floor for the stock price through systematic repurchases. For investors, this represents both potential share price support and an efficient return of capital without the tax implications of dividends.

MINNEAPOLIS, Aug. 11, 2025 (GLOBE NEWSWIRE) -- Inspire Medical Systems, Inc. (NYSE: INSP) (Inspire, or the company), a medical technology company focused on the development and commercialization of innovative, minimally invasive solutions for patients with obstructive sleep apnea (OSA), today announced that its Board of Directors has authorized the repurchase of up to $200 million of the company’s outstanding shares of common stock.

“I am pleased to announce our intention to purchase up to $200 million of Inspire common stock,” said Tim Herbert, Chairman and Chief Executive Officer. “During the second quarter, we initiated the full U.S. launch of Inspire V, our next-generation neurostimulation system. This is the largest product launch in the history of our company, and we are investing in marketing and footprint expansion to support the launch. At the same time, the continued financial strength of the company allows us to return capital to stockholders while we continue to invest for future growth. Furthermore, we remain confident that our growth prospects are substantial, as we are very lightly penetrated into our addressable market, and that our stock is undervalued. As a result, we believe that the repurchase of our common stock represents an attractive investment opportunity.”

In determining the amount of capital to allocate to share repurchases, the company considers, among other things, its historical and expected business performance and cash and liquidity position, as well as global economic and market conditions and the market price of the company’s common stock. The timing, manner, price, and amount of any repurchases under the share repurchase program are determined by the company in its discretion. Purchases may be effected through open market transactions, privately negotiated transactions, transactions structured through investment banking institutions, or other means. The company is not obligated to repurchase any specific number of shares and the program may be modified, suspended, or discontinued at any time. The share repurchase program will expire on August 7, 2027, subject to the earlier termination or extension by the Board, in its sole discretion and without prior notice, or until such time that the funds designated for the stock repurchase program are depleted.

About Inspire Medical Systems

Inspire is a medical technology company focused on the development and commercialization of innovative, minimally invasive solutions for patients with obstructive sleep apnea. Inspire’s proprietary Inspire therapy is the first and only FDA, EU MDR, and PDMA-approved neurostimulation technology of its kind that provides a safe and effective treatment for moderate to severe obstructive sleep apnea.

For additional information about Inspire, please visit www.inspiresleep.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts are forward-looking statements, including, without limitation, statements regarding our growth prospects, and our expectations regarding the launch of our Inspire V neurostimulation system. In some cases, you can identify forward-looking statements by terms such as ‘‘may,’’ ‘‘will,’’ ‘‘should,’’ ‘‘expect,’’ ‘‘plan,’’ ‘‘anticipate,’’ ‘‘could,’’ “future,” “outlook,” “guidance,” ‘‘intend,’’ ‘‘target,’’ ‘‘project,’’ ‘‘contemplate,’’ ‘‘believe,’’ ‘‘estimate,’’ ‘‘predict,’’ ‘‘potential,’’ ‘‘continue,’’ or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words.

These forward-looking statements are based on management’s current expectations and involve known and unknown risks and uncertainties that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, our history of operating losses and dependency on our Inspire therapy for revenues; commercial success and market acceptance of our Inspire therapy; our ability to achieve and maintain adequate levels of coverage or reimbursement for our Inspire therapy or any future products we may seek to commercialize; competitive companies, technologies and pharmaceuticals in our industry; our involvement in current or future legal disputes or regulatory proceedings; our ability to expand our indications and develop and commercialize additional products and enhancements to our Inspire therapy; future results of operations, financial position, research and development costs, capital requirements and our needs for additional financing; our ability to accurately forecast customer demand for our Inspire therapy and manage our inventory; our dependence on third-party suppliers, contract manufacturers and shipping carriers; consolidation in the healthcare industry; our ability to expand, manage and maintain our direct sales and marketing organization, and to market and sell our Inspire therapy in markets outside of the U.S.; risks associated with international operations; our ability to manage our growth; our ability to hire and retain our senior management and other highly qualified personnel; risk of product liability claims; our ability to address quality issues that may arise with our Inspire therapy; our ability to successfully integrate any acquired business, products, or technologies; changes in global macroeconomic trends; challenges experienced by patients in obtaining prior authorization, our ability to achieve and maintain adequate levels of coverage or reimbursement for our Inspire therapy; our business model and strategic plans for our products, technologies and business, including our implementation thereof; the impact of glucagon-like peptide 1 class of drugs on demand for our Inspire therapy; risks related to information technology and cybersecurity; our ability to commercialize or obtain regulatory approvals for our Inspire therapy, or the effect of delays in commercializing or obtaining regulatory approvals; and FDA or other U.S. or foreign regulatory actions affecting us or the healthcare industry generally. Other important factors that could cause actual results, performance or achievements to differ materially from those contemplated in this press release can be found under the captions “Risk Factors” and "Management's Discussion and Analysis of Financial Condition and Results of Operations“ in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as updated in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 to be filed with the SEC, and as such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov and the Investors page of our website at www.inspiresleep.com. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, unless required by applicable law, we disclaim any obligation to do so, even if subsequent events cause our views to change. Thus, one should not assume that our silence over time means that actual events are bearing out as expressed or implied in such forward-looking statements. These forward-looking statements should not be relied upon as representing our views as of any date after the date of this press release.

Investor and Media Contact
Ezgi Yagci
Vice President, Investor Relations
ezgiyagci@inspiresleep.com
617-549-2443

FAQ

How much is Inspire Medical Systems' (INSP) share repurchase program worth?

Inspire Medical Systems has authorized a $200 million share repurchase program of its outstanding common stock.

When does Inspire Medical Systems' (INSP) buyback program expire?

The share repurchase program will expire on August 7, 2027, unless terminated or extended by the Board of Directors.

What is Inspire V and how does it relate to the buyback announcement?

Inspire V is the company's next-generation neurostimulation system that was fully launched in the U.S. during the second quarter. The company announced the buyback while highlighting this launch as their largest product launch in history.

How will Inspire Medical Systems (INSP) execute its share repurchase program?

The company can execute the buyback through open market transactions, privately negotiated transactions, or transactions structured through investment banking institutions. The timing, manner, price, and amount are at the company's discretion.

Why did Inspire Medical Systems (INSP) announce a share repurchase program?

The company believes its stock is undervalued and sees the repurchase as an attractive investment opportunity, citing strong growth prospects and minimal penetration in their addressable market.