Inspire Medical Systems reported its preliminary, unaudited fourth‑quarter 2025 revenue and full‑year 2025 results, reaffirmed its 2026 revenue guidance, and announced the appointment of Matt Osberg as Executive Vice President and Chief Financial Officer effective January 19, 2026.
The company’s fourth‑quarter revenue reached $268.9 million to $269.1 million, a 12% year‑over‑year increase that exceeded the consensus estimate of $262 million by roughly $6 million. Gross margin expanded to 85.8% from 84.1% in the prior year, reflecting a higher mix of Inspire V sales and improved operational leverage. The strong quarter was driven by robust demand for the new Inspire V system, which has accelerated adoption in the U.S. market and contributed to a 15% lift in U.S. commercial revenue.
Full‑year 2025 revenue totaled $911.8 million to $912.0 million, up 14% from $791.8 million in 2024. The company beat the consensus estimate of $905.03 million by about $7 million. Gross margin for the year held steady at 85.8%, up from 84.1% in 2024, underscoring the company’s ability to maintain pricing power while scaling production of the Inspire V implant. The results were supported by a 20% increase in U.S. commercial sales and a 10% rise in Medicare‑covered procedures, after the company resolved earlier billing complications.
Management reaffirmed its 2026 revenue guidance at $1.003 billion to $1.013 billion, representing 10% to 11% growth over 2025. CEO Tim Herbert noted that the guidance reflects “continued momentum in the Inspire V rollout and a growing patient base.” The CFO appointment signals a focus on strengthening financial oversight as the company scales its operations. Osberg, who previously led financial strategy at a leading medical device firm, will oversee capital allocation and cost management as the company expands its product portfolio.
The results highlight the impact of the Inspire V system’s accelerated adoption, which has mitigated earlier Medicare billing headwinds and expanded the company’s addressable market. Margin expansion demonstrates effective cost control and a favorable product mix, while the 2026 guidance indicates confidence in sustained demand despite a slightly moderated growth rate compared to the 14% full‑year 2025 increase. The CFO transition positions the company to manage cash flow and investment needs as it continues to invest in research and development and expand its global footprint.
Overall, the preliminary earnings and guidance reinforce Inspire Medical Systems’ trajectory of revenue growth, margin resilience, and strategic leadership, positioning the company for continued success in the implantable neurostimulation market.
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