- InMode (INMD, Financial) reported a 3% decline in Q1 2025 revenue to $77.9 million.
- The company completed a $127 million share repurchase in April 2025.
- InMode revised its 2025 earnings guidance down to $1.64-1.68 per share.
InMode Ltd. (INMD), a leading provider of medical technology, announced its financial results for Q1 2025, revealing a 3% decrease in revenue year-over-year, with figures dropping to $77.9 million from $80.3 million in Q1 2024. The fall in revenue was driven by adverse macroeconomic conditions and decreased consumer demand, notably impacting the U.S. market.
The company's consumables and service revenue experienced a significant 10% year-over-year decline. Compounding these challenges was the decrease in gross margins to 78%, down from 80% in the same quarter last year. GAAP operating income stood at $15.6 million, while GAAP net income was reported at $18.2 million, or $0.26 per share, compared to $23.7 million, or $0.28 per share, in the prior year.
Despite these financial pressures, InMode maintains a robust cash position of $512.9 million as of March 31, 2025. In April, the company concluded a share repurchase program, buying back 6.95 million shares at a value of $127 million, underscoring its commitment to returning capital to shareholders.
Looking ahead, InMode adjusted its 2025 guidance, forecasting revenues between $395 million and $405 million and non-GAAP earnings per share between $1.64 and $1.68, down from the previous estimate of $1.95 to $1.99. The revision reflects ongoing market challenges, including the impact of U.S. tariffs, expected to reduce gross margins by 2-3%.
InMode's management remains optimistic about its international performance, particularly in Europe, and is committed to driving innovation with recent launches like the OptimasMAX and Ignite platforms. However, continued U.S. market difficulties are anticipated to adversely affect operational margins by 4-5% throughout the year.
