Inspire Medical forecasts major tax-driven boost to 2025 EPS

Rhea-AI Filing Summary

Inspire Medical Systems, Inc. expects to release a significant portion of the valuation allowance on its U.S. deferred tax assets in the fourth quarter of fiscal 2025. The company estimates this action will create an income tax benefit of $90 million to $100 million for the year. This tax benefit is expected to increase diluted earnings per share by approximately $3.00 to $3.30 for the same period. These figures are based on current assumptions and are described as forward-looking, with actual results potentially differing due to various risks and uncertainties discussed in the company’s other regulatory filings.

Positive

• Expected tax benefit of $90–$100 million from releasing a valuation allowance on U.S. deferred tax assets, materially lifting reported 2025 net income.
• Projected diluted EPS increase of roughly $3.00–$3.30 for fiscal 2025 due to the tax benefit, significantly boosting reported earnings per share.

Negative

• None.

Insights

Equity valuation and accounting expert

Large one-time tax benefit boosts reported EPS via allowance release.

Inspire Medical Systems plans to release a significant portion of the valuation allowance on its U.S. deferred tax assets in Q4 2025. This accounting change is expected to generate an income tax benefit of $90,000,000 to $100,000,000 for fiscal 2025, which is substantial relative to many mid-cap earnings profiles.

The company estimates this will increase diluted earnings per share by about $3.00 to $3.30 for the year. Because this stems from releasing a valuation allowance rather than from core operations, the impact is primarily on reported net income and EPS presentation, not on cash generated from the business.

Management characterizes these expectations as forward-looking and notes that risks and uncertainties could cause actual results to differ materially. Investors comparing future periods will need to distinguish this one-time tax benefit from underlying operating performance when reviewing fiscal 2025 results and subsequent filings.

8-K Event Classification

Item 8.01 — Other Events

1 item

Item 8.01 Other Events Other

Voluntary disclosure of events the company deems important to shareholders but not covered by other items.

Understanding 8-K Material Events →

0001609550False00016095502025-11-172025-11-17

SECURITIES AND EXCHANGE

Washington, D.C. 20549

_________________________

FORM 8-K

_________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): November 17, 2025

_________________________

INSPIRE MEDICAL SYSTEMS, INC.

(Exact name of registrant as specified in its charter)

_________________________

Delaware

001-38468

26-1377674

(State or other jurisdiction of incorporation)

(Commission File Number)

(I.R.S. Employer Identification No.)

5500 Wayzata Blvd., Suite 1600

Golden Valley, Minnesota 55416

(Address of principal executive offices) (Zip Code)

(844) 672-4357

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.001 par value per share

INSP

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company     ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition

period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 8.01. Other Events.

On November 6, 2025, Inspire Medical Systems, Inc. (“Inspire” or the “Company”) disclosed its expectation to release a significant portion of the valuation allowance on its U.S. deferred tax assets during the fourth quarter of fiscal 2025. The Company estimates that this release will result in an income tax benefit in the range of $90 million to $100 million for the year, which is expected to increase diluted earnings per share by approximately $3.00 to $3.30 for the same period.

Forward-Looking Statements

This Current Report on Form 8-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company’s expectation to release a valuation allowance on its U.S. deferred tax assets and the anticipated impact on income tax expense and earnings per share. These forward-looking statements are based on current assumptions and involve risks and uncertainties that could cause actual results to differ materially. Factors that could affect these results are discussed in the Company’s filings with the Securities and Exchange Commission. The Company undertakes no obligation to update these statements except as required by law.

2

SIGNATURES

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 hereunto duly authorized.

						INSPIRE MEDICAL SYSTEMS, INC.
Date:			November 17, 2025			By:			/s/ Bryan K. Phillips
									Bryan K. Phillips
									Sr. Vice President, General Counsel and Secretary

3

FAQ

What did Inspire Medical Systems (INSP) announce in this Form 8-K?

Inspire Medical Systems announced that it expects to release a significant portion of the valuation allowance on its U.S. deferred tax assets in the fourth quarter of fiscal 2025, resulting in a sizeable income tax benefit and higher diluted earnings per share for the year.

How large is the expected tax benefit for Inspire Medical Systems (INSP)?

The company estimates that releasing the valuation allowance will generate an income tax benefit in the range of $90 million to $100 million for fiscal 2025.

How will this accounting change affect INSP’s diluted earnings per share?

Inspire Medical Systems expects the income tax benefit to increase diluted earnings per share by approximately $3.00 to $3.30 for fiscal 2025.

When does Inspire Medical Systems plan to release the valuation allowance?

The company disclosed that it expects to release a significant portion of the valuation allowance on its U.S. deferred tax assets during the fourth quarter of fiscal 2025.

Is the expected tax benefit for INSP guaranteed to occur as described?

No. The company states that these are forward-looking statements based on current assumptions and that risks and uncertainties could cause actual results to differ materially from the estimated income tax benefit and EPS impact.

Does this announcement relate to Inspire Medical Systems’ core operating performance?

The announcement specifically concerns the expected release of a valuation allowance on U.S. deferred tax assets, which affects income tax expense and reported earnings per share rather than describing changes in core operating results.