Profit falls as InMode (Nasdaq: INMD) posts 2025 revenue of $370.5M

Rhea-AI Filing Summary

InMode Ltd. reported mixed fourth quarter and full year 2025 results. Q4 2025 revenue was $103.9 million, up 6% from Q4 2024, with GAAP diluted EPS of $0.42 and non-GAAP diluted EPS of $0.46, slightly above last year’s non-GAAP level.

For full year 2025, revenue was $370.5 million, down 6% from 2024, while GAAP net income declined to $93.8 million from $181.3 million, reflecting lower operating margins and the absence of a one-time $55.1 million tax benefit recorded in 2024. Non-GAAP diluted EPS fell to $1.60 from $1.76.

GAAP gross margin eased to 79% in 2025 from 80%, and non-GAAP operating margin slipped to 26% from 33%, mainly due to higher sales and marketing expenses. The company ended 2025 with $555.3 million in cash, marketable securities and short-term deposits and returned $127.4 million through share repurchases, while noting record European revenue and that operations have not been materially affected to date by the situation in Israel.

Positive

• None.

Negative

• Profitability declined sharply in 2025, with revenue down 6% to $370.5 million, GAAP net income nearly halving to $93.8 million and non-GAAP operating margin falling to 26% from 33%, reflecting margin pressure and higher sales and marketing expenses.

Insights

Equity analyst – medical technology

Revenue declined 6% and profitability compressed in 2025 despite solid Q4 and a very strong balance sheet.

InMode delivered Q4 2025 revenue of $103.9M, up 6% year over year, with non-GAAP diluted EPS rising to $0.46 from $0.42. Full-year revenue fell 6% to $370.5M, showing that Q4 strength did not offset earlier softness.

GAAP net income dropped to $93.8M in 2025 from $181.3M in 2024, and non-GAAP net income declined to $105.5M from $142.7M. Non-GAAP operating margin contracted to 26% from 33%, primarily due to higher sales and marketing expenses, indicating the company is spending more to drive demand in a challenging environment.

Management highlighted record European revenue and plans to launch two new laser-based platforms in 2026. The balance sheet remains robust, with $555.3M in cash, marketable securities and deposits and $127.4M returned via share repurchases in 2025, giving ample financial flexibility even as industry conditions remain uncertain.

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

For the month of February 2026

INMODE LTD.

(Exact name of registrant as specified in its charter)

Tavor Building, Sha’ar Yokneam

P.O. Box 533

Yokneam 2069206 Israel

(Address of Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ☒ Form 40-F ☐ 

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes ☐ No ☒ 

Results of Operations and Financial Condition

On February 10, 2026, InMode Ltd. announced its fourth quarter and full year 2025 financial results. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Exhibit No.		Description of Exhibit
99.1		Press Release dated February 10, 2026

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	InMode Ltd.
	By: /s/ Moshe Mizrahy
	Moshe Mizrahy
February 10, 2026	Chief Executive Officer

Exhibit 99.1

InMode Reports Fourth Quarter and Full Year 2025 Financial Results: Quarterly GAAP Revenue

of $103.9 Million and Full Year Revenue of $370.5 Million

YOKNEAM, Israel, February 10, 2026 - InMode Ltd. (Nasdaq: INMD) (“InMode”), a leading global provider of innovative medical technologies, today announced its consolidated financial results for the fourth quarter and full year of 2025.

Fourth Quarter 2025 Highlights:

● Quarterly GAAP revenues of $103.9 million, compared to $97.9 million in the fourth quarter of 2024.

● Quarterly revenues from consumables and service of $21.5 million, an increase of 8% compared to the fourth quarter of 2024.

● GAAP operation income of $26 million, *non-GAAP operation income of $28.5 million.

● Total cash position of $555.3 million as of December 31, 2025, including cash and cash equivalents, marketable securities and short-term bank deposits.

Full Year 2025 Highlights:

● Full year revenues of $370.5 million, a year-over-year decrease of 6%.

● Full year revenues from consumables and service of $81.4 million, an increase of 3% compared to 2024.

● GAAP operation income of $85.4 million, compared to $112.5 million in 2024; *non-GAAP operation income of $96.5 million, compared to $129.1 million in 2024.

● Returned $127.4 million of capital to shareholders through repurchase of ordinary shares during 2025.

U.S. GAAP Results (U.S. dollars in thousands, except for per share data)
	Q4 2025	Q4 2024	FY 2025	FY 2024
Revenues	$103,854	$97,853	$370,495	$394,818
Gross Margins	78%	79%	79%	80%
Net Income	$27,025	$82,771	$93,831	$181,275
Earnings per Diluted Share	$0.42	$1.14	$1.43	$2.25
*Non-GAAP Results (U.S. dollars in thousands, except for per share data)
	Q4 2025	Q4 2024	FY 2025	FY 2024
Gross Margins	79%	80%	79%	81%
Net Income	$29,429	$31,081	$105,495	$142,707
Earnings per Diluted Share	$0.46	$0.42	$1.60	$1.76

*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 included in this release. Non-GAAP results exclude share-based compensation and tax benefit adjustments.

Management Comments

“While conditions across our industry remain challenging, we are seeing early signs of stabilization,” said Moshe Mizrahy, Chief Executive Officer of InMode. “While the global uncertainties, particularly in North America, continues to weigh on overall demand, and the industry has yet to fully rebound, we are encouraged by the initial growth in Europe.”

“Looking ahead, in 2026 we plan on launching two new laser-based platforms. We see solid potential for these offerings across both our existing customer base and new customers and believe they will further strengthen our long-term market position,” concluded Mizrahy.

“Over the past year, we have unified our North American operations into a single organization encompassing the Eastern U.S., Western U.S., and Canada,” said Michael Dennison, President of North America. “At the same time, we have refreshed our sales and post-sales leadership teams, strengthening our ability to serve customers across the region. With this foundation in place, we are entering 2026 with focus, alignment, and clear direction.”

Fourth Quarter and Full Year 2025 Financial Results

Total GAAP revenues for the fourth quarter of 2025 were $103.9 million, an increase of 6% compared to $97.9 million in the fourth quarter of 2024. Total revenues for 2025 were $370.5 million, a decrease of 6% compared to 2024.

Yair Malca, Chief Financial Officer of InMode added, “Our European operations achieved record revenue in the fourth quarter, reflecting continued momentum across the region and strong execution by our teams.”

GAAP gross margin for the fourth quarter of 2025 was 78%, compared to 79% for the fourth quarter of 2024. *Non-GAAP gross margin for the fourth quarter of 2025 was 79%, compared to 80% for the fourth quarter of 2024. GAAP gross margin for 2025 was 79%, compared to 80% for 2024. *Non-GAAP gross margin for 2024 was 79%, compared to 81% for 2024.

GAAP operating margin for the fourth quarter of 2025 was 25%, compared to 28% in the fourth quarter of 2024. *Non-GAAP operating margin for the fourth quarter of 2025 was 27%, compared to 32% for the fourth quarter of 2024. GAAP operating margin for 2025 was 23%, compared to 29% in 2024. *Non-GAAP operating margin for 2025 was 26%, compared to 33% in the full year of 2024. This decrease was primarily attributable to higher sales and marketing expenses.

InMode reported GAAP net income of $27.0 million, or $0.42 per diluted share, in the fourth quarter of 2025, compared to $82.8 million, or $1.14 per diluted share, in the fourth quarter of 2024. On a *non-GAAP basis, InMode reported net income of $29.5 million, or $0.46 per diluted share, in the fourth quarter of 2025, compared to $31.1 million, or $0.42 per diluted share, in the fourth quarter of 2024. GAAP net income was $93.9 million, or $1.43 per diluted share, in 2025, compared to GAAP net income of $181.3 million, or $2.25 per diluted share, in 2024. On a *non-GAAP basis, InMode reported net income of $105.5 million, or $1.60 per diluted share, in the full year of 2025, compared to net income of $142.7 million, or $1.76 per diluted share, for the full year in 2024. As a reminder, during Q4 of 2024, the Company released a valuation allowance related to its U.S. net deferred tax assets, and as a result recorded a one-time deferred tax asset of $55.1 million. Therefore, non-GAAP net income represents the most efficient basis for the comparison of year-over-year operating results.

As of December 31, 2025, InMode had cash and cash equivalents, marketable securities and short-term bank deposits of $555.3 million.

“We ended the year with a strong balance sheet and returned $127.4 million of capital to shareholders through the repurchase of ordinary shares during 2025, underscoring our disciplined capital allocation and commitment to shareholder value,” concluded Malca.

2026 Financial Outlook

Management provided an outlook for the full year of 2026 ending December 31, 2026. Based on current estimates, management expects:

● Revenues between $365 million to $375 million

● *Non-GAAP gross margin between 75% and 77%

● *Non-GAAP income from operations to be between $87 million and $92 million

● *Non-GAAP earnings per diluted share between $1.43 to $1.48

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 tax benefit adjustments.

However, these estimates are based on management’s current estimates, which may be updated.

The Current Situation in Israel

Regarding the current situation in Israel, on October 9, 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 and Mr. Yair Malca, Chief Financial Officer, will host a conference call today, February 10, 2026, at 8:30 a.m. Eastern Time to discuss the fourth quarter and full year 2025 financial results.

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

https://dpregister.com/sreg/10205326/10099498542.

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=Q835bTWk

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 reply of the conference call will be available from February 10, 2026, at 12 p.m. Eastern Time to February 24, 2026, at 11:59 p.m. Eastern Time. To access the replay, please dial one of the following numbers: 

Replay Dial-in U.S./ Canada TOLL-FREE: 1-855-669-9658

Replay Dial-in TOLL/INTERNATIONAL: 1-412-317-0088

Replay Pin Number: 9741895

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 2026 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 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: 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 December 31,								Year Ended December 31,
		2025				2024				2025				2024
REVENUES			103,854				97,853				370,495				394,818
COST OF REVENUES			22,554				20,216				79,525				77,752
GROSS PROFIT			81,300				77,637				290,970				317,066
OPERATING EXPENSES:
Research and development			3,509				2,667				13,319				13,137
Sales and marketing			48,407				44,653				180,578				181,366
General and administrative			3,393				2,453				11,686				10,032
TOTAL OPERATING EXPENSES			55,309				49,773				205,583				204,535
OPERATIONS INCOME			25,991				27,864				85,387				112,531
Finance income, net			5,301				4,346				24,943				30,938
INCOME BEFORE INCOME TAXES			31,292				32,210				110,330				143,469
INCOME TAXES BENEFIT (EXPENSES)			(4,267	)			50,561				(16,499	)			37,806
NET INCOME			27,025				82,771				93,831				181,275
EARNINGS PER SHARE:
Basic			0.43				1.15				1.45				2.29
Diluted			0.42				1.14				1.43				2.25
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF EARNINGS PER SHARE (in thousands)
Basic			63,335				71,874				64,633				79,306
Diluted			64,082				72,787				65,445				80,597

INMODE LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands, except for per share data)

(Unaudited)

		December 31, 2025				December 31, 2024
Assets
CURRENT ASSETS:
Cash and cash equivalents			302,543				155,329
Marketable securities (amortized cost of $83,542 and $268,129, as of December 31, 2025 and 2024, respectively)			83,632				267,688
Short-term bank deposits			169,159				173,455
Accounts receivable, net of allowance for credit losses of $2,371 and $1,825, as of December 31, 2025 and 2024, respectively			43,504				36,335
Prepaid expenses and other receivables			25,733				22,097
Inventories			74,050				59,548
TOTAL CURRENT ASSETS			698,621				714,452
NON-CURRENT ASSETS:
Accounts receivable, net of allowance for credit losses of $856 and $924 as of December 31, 2025 and 2024, respectively			3,005				3,176
Deferred income tax asset			53,230				56,285
Operating lease right-of-use assets			8,274				8,732
Property and equipment, net			2,599				2,322
Other investments			700				700
TOTAL NON-CURRENT ASSETS			67,808				71,215
TOTAL ASSETS			766,429				785,667
Liabilities and shareholders’ equity
CURRENT LIABILITIES:
Accounts payables			17,912				13,782
Contract liabilities			12,093				16,755
Other liabilities			40,739				39,314
TOTAL CURRENT LIABILITIES			70,744				69,851
NON-CURRENT LIABILITIES:
Contract liabilities			3,043				3,336
Other liabilities			4,436				3,356
Operating lease liabilities			5,008				5,311
TOTAL NON-CURRENT LIABILITIES			12,487				12,003
TOTAL LIABILITIES			83,231				81,854
TOTAL SHAREHOLDERS’ EQUITY			683,198				703,813
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			766,429				785,667

INMODE LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands, except for per share data)

(Unaudited)

		Three months ended December 31,								Year Ended December 31,
		2025				2024				2025				2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income			27,025				82,771				93,831				181,275
Adjustments required to reconcile net income to net cash provided by operating activities:
Depreciation			174				248				695				728
Share-based compensation expenses			2,499				3,447				11,131				16,569
Change in allowance for credit losses of trade receivable			295				158				454				572
Loss (Gain) on marketable securities, net			1				(3	)			15				167
Finance expenses (income), net			(762	)			1,533				498				(4,401	)
Deferred income tax assets, net			864				(55,121	)			2,928				(55,179	)
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable (current and non-current)			(6,358	)			4,025				(7,452	)			5,949
Decrease (increase) in other receivables			(1,275	)			1,879				(3,678	)			(5,698	)
Increase in inventories			(2,647	)			(1,264	)			(14,502	)			(14,453	)
Increase (decrease) in accounts payable			1,188				(531	)			4,129				(184	)
Increase (decrease) in other liabilities (current and non-current)			4,759				(4,243	)			2,163				1,917
Increase (decrease) in contract liabilities (current and non-current)			(3,089	)			(457	)			(4,955	)			5,402
Net cash provided by operating activities			22,674				32,442				85,257				132,664
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in short-term deposits			(113,733	)			(3,500	)			(292,637	)			(168,187	)
Proceeds from short-term deposits			103,389				67,100				293,076				218,740
Purchase of fixed assets			(534	)			(234	)			(972	)			(669	)
Purchase of marketable securities		‐					(59,708	)			(20,877	)			(336,221	)
Proceeds from sale of marketable securities		‐					21,146				17,214				90,754
Proceeds from maturity of marketable securities			38,101				53,012				190,228				357,789
Net cash provided by investing activities			27,223				77,816				186,032				162,206
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchase of ordinary shares			-				(119,849	)			(127,444	)			(285,385	)
Exercise of options			137				1,420				1,385				2,614
Net cash provided by (used in) financing activities			137				(118,429	)			(126,059	)			(282,771	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS			72				(1,338	)			1,984				(1,181	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			50,106				(9,509	)			147,214				10,918
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR			252,437				164,838				155,329				144,411
CASH AND CASH EQUIVALENTS AT END OF YEAR			302,543				155,329				302,543				155,329

INMODE LTD.

CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS

(U.S. dollars in thousands, except for per share data)

(Unaudited)

		Three months ended December 31,																Year ended December 31,
		2025								2024								2025								2024
Revenues by Category:
Capital Equipment revenues - United States			46,760				45	%			53,128				55	%			162,158				44	%			204,520				52	%
Capital Equipment revenues - International			35,631				34	%			24,836				25	%			126,960				34	%			111,027				28	%
Total Capital Equipment revenues			82,391				79	%			77,964				80	%			289,118				78	%			315,547				80	%
Consumables and service revenues			21,463				21	%			19,889				20	%			81,377				22	%			79,271				20	%
Total Revenue			103,854				100	%			97,853				100	%			370,495				100	%			394,818				100	%

		Three months ended December 31,																								Year ended December 31,
		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			76				75				76				93				76				86				78				78				78				92				80				87
Hands-Free			1				2				1				5				3				5				3				2				2				6				3				5
Non-Invasive			23				23				23				2				21				9				19				20				20				2				17				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 December 31, 2025												Three months ended December 31, 2024
		GAAP				Share Based Compensation				Non-GAAP				GAAP				Share Based Compensation				Tax benefit (1)				Non-GAAP
REVENUES			103,854				-				103,854				97,853				-				-				97,853
COST OF REVENUES			22,554				(346	)			22,208				20,216				(472	)			-				19,744
GROSS PROFIT			81,300				346				81,646				77,637				472				-				78,109
OPERATING EXPENSES:
Research and development			3,509				(256	)			3,253				2,667				(300	)			-				2,367
Sales and marketing			48,407				(1,589	)			46,818				44,653				(2,360	)			-				42,293
General and administrative			3,393				(308	)			3,085				2,453				(315	)			-				2,138
TOTAL OPERATING EXPENSES			55,309				(2,153	)			53,156				49,773				(2,975	)			-				46,798
OPERATIONS INCOME			25,991				2,499				28,490				27,864				3,447				-				31,311
Finance income, net			5,301				-				5,301				4,346				-				-				4,346
INCOME BEFORE INCOME TAXES			31,292				2,499				33,791				32,210				3,447				-				35,657
INCOME TAXES BENEFIT (EXPENSES)			(4,267	)			(95	)			(4,362	)			50,561				-				(55,137	)			(4,576	)
NET INCOME			27,025				2,404				29,429				82,771				3,447				(55,137	)			31,081
EARNINGS PER SHARE:
Basic			0.43								0.46				1.15												0.43
Diluted			0.42								0.46				1.14												0.42
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF EARNINGS PER SHARE (in thousands)
Basic			63,335								63,335				71,874												71,874
Diluted			64,082								64,443				72,787												73,139

(1) Tax benefit recorded during the year ended December 31, 2024, as a result of a release of valuation allowance on our deferred tax assets in the United States as it is more likely than not that our net deferred tax assets will be realized given our expectation of profitability in future periods.

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)

		Year Ended December 31, 2025												Year Ended December 31, 2024
		GAAP				Share Based Compensation				Non-GAAP				GAAP				Share Based Compensation				Tax benefit (1)				Non-GAAP
REVENUES			370,495								370,495				394,818				-				-				394,818
COST OF REVENUES			79,525				(1,333	)			78,192				77,752				(1,833	)			-				75,919
GROSS PROFIT			290,970				1,333				292,303				317,066				1,833				-				318,899
OPERATING EXPENSES:
Research and development			13,319				(1,039	)			12,280				13,137				(2,177	)			-				10,960
Sales and marketing			180,578				(7,685	)			172,893				181,366				(11,367	)							169,999
General and administrative			11,686				(1,074	)			10,612				10,032				(1,192	)			-				8,840
TOTAL OPERATING EXPENSES			205,583				(9,798	)			195,785				204,535				(14,736	)			-				189,799
OPERATIONS INCOME			85,387				11,131				96,518				112,531				16,569				-				129,100
Finance income, net			24,943				-				24,943				30,938				-				-				30,938
INCOME BEFORE INCOME TAXES			110,330				11,131				121,461				143,469				16,569				-				160,038
INCOME TAXES BENEFIT (EXPENSES)			(16,499	)			533				(15,966	)			37,806				-				(55,137	)			(17,331	)
NET INCOME			93,831				11,664				105,495				181,275				16,569				(55,137	)			142,707
EARNINGS PER SHARE:
Basic			1.45								1.63				2.29												1.80
Diluted			1.43								1.60				2.25												1.76
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF EARNINGS PER SHARE (in thousands)
Basic			64,633								64,633				79,306												79,306
Diluted			65,445								65,756				80,597												80,943

(1) Tax benefit recorded during the year ended December 31, 2024, as a result of a release of valuation allowance on our deferred tax assets in the United States as it is more likely than not that our net deferred tax assets will be realized given our expectation of profitability in future periods.

FAQ

How did InMode (INMD) perform financially in the fourth quarter of 2025?

InMode’s Q4 2025 revenue was $103.9 million, up 6% year over year. GAAP diluted EPS was $0.42, while non-GAAP diluted EPS reached $0.46, slightly above the prior-year non-GAAP figure of $0.42, supported by strong European performance and high gross margins.

What were InMode’s full year 2025 revenue and net income compared to 2024?

In 2025, InMode generated $370.5 million in revenue and $93.8 million in GAAP net income. This compares with $394.8 million in revenue and $181.3 million in net income in 2024, reflecting a 6% revenue decline and significantly lower profitability versus the prior year.

How did InMode’s margins change in 2025 versus 2024?

InMode’s GAAP gross margin slipped to 79% in 2025 from 80% in 2024. Non-GAAP operating margin fell more notably, to 26% in 2025 from 33% in 2024, with management attributing the decline primarily to higher sales and marketing expenses needed to support demand.

What is InMode’s cash position and capital return activity as of December 31, 2025?

As of December 31, 2025, InMode held $555.3 million in cash, marketable securities and short-term bank deposits. During 2025, the company repurchased ordinary shares totaling $127.4 million, highlighting management’s focus on capital returns alongside maintaining a strong balance sheet.

How are regional trends affecting InMode’s 2025 results?

Management noted challenging demand, particularly in North America, but record revenue in Europe. The company unified its North American operations and refreshed sales leadership, while highlighting continued momentum in European markets, which contributed meaningfully to Q4 2025 performance.

Has the situation in Israel materially affected InMode’s operations so far?

InMode stated that its operations have not been materially affected to date by the situation in Israel. A cease-fire that began on October 9, 2025, formally paused hostilities, although the company cautioned that regional conflicts remain unpredictable and continues to monitor potential impacts.

Why does InMode emphasize non-GAAP results for 2025 comparisons?

InMode highlights non-GAAP metrics because 2024 included a one-time $55.1 million deferred tax benefit. Excluding share-based compensation and tax benefit adjustments, non-GAAP net income fell to $105.5 million in 2025 from $142.7 million, which management views as a clearer basis for year-over-year performance comparison.

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