Inspire Medical Systems (NYSE:INSP) Releases Quarterly Earnings Results, Beats Estimates By $0.38 EPS

Inspire Medical Systems (NYSE:INSP) issued its quarterly earnings data on Monday. The company reported $0.10 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.28) by $0.38, FiscalAI reports. Inspire Medical Systems had a return on equity of 10.66% and a net margin of 14.33%.The firm had revenue of $204.58 million during the quarter, compared to the consensus estimate of $200.04 million. During the same period in the previous year, the firm posted $0.10 EPS. The company’s quarterly revenue was up 1.6% compared to the same quarter last year. Inspire Medical Systems updated its FY 2026 guidance to 0.750-1.250 EPS.

Here are the key takeaways from Inspire Medical Systems’ conference call:

• The company cut full‑year revenue guidance to $825M–$875M, estimating $120M–$150M of adverse impact from coding/reimbursement issues and the WISeR program, and expects a 9%–11% revenue decline in Q2 with an adjusted operating loss of $10M–$15M.
• Despite disruptions, Q1 revenue grew 1.6% to $204.6M, adjusted EBITDA margin improved to 17.5%, operating cash flow rose to $12.8M, and the company exited the quarter with $400M of cash and no debt.
• There was tangible progress on coding: CMS created a facility C‑code for Inspire V that MACs are beginning to adopt, and Inspire is expanding field reimbursement support and education to drive consistent short‑term coding solutions for centers.
• The WISeR pilot (AI‑reviewed Medicare prior authorization in six states) introduced new prior‑authorization delays that materially reduced procedures in Q1 and are expected to exacerbate Q2 headwinds until sites gain more experience with the systems.
• Clinical and real‑world evidence momentum continues: full Inspire V trial results, the 5,000‑patient ADHERE cohort, and the PREDICTOR manuscript are being published/presented, with studies suggesting cardiovascular and respiratory benefits versus CPAP that support long‑term demand.

Inspire Medical Systems Stock Performance

Shares of INSP opened at $48.24 on Wednesday. The stock has a fifty day moving average of $56.51 and a two-hundred day moving average of $79.43. The company has a market capitalization of $1.39 billion, a PE ratio of 10.74, a price-to-earnings-growth ratio of 2.83 and a beta of 0.83. Inspire Medical Systems has a fifty-two week low of $44.41 and a fifty-two week high of $163.35.

Institutional Trading of Inspire Medical Systems

Institutional investors and hedge funds have recently made changes to their positions in the company. Virtu Financial LLC increased its holdings in shares of Inspire Medical Systems by 40.2% during the 4th quarter. Virtu Financial LLC now owns 5,712 shares of the company’s stock worth $527,000 after buying an additional 1,639 shares during the last quarter. Invesco Ltd. increased its holdings in shares of Inspire Medical Systems by 181.7% during the 4th quarter. Invesco Ltd. now owns 261,374 shares of the company’s stock worth $24,107,000 after buying an additional 168,587 shares during the last quarter. Corient Private Wealth LLC acquired a new stake in shares of Inspire Medical Systems during the 4th quarter worth $337,000. Regal Partners Ltd increased its holdings in shares of Inspire Medical Systems by 107.7% during the 4th quarter. Regal Partners Ltd now owns 211,304 shares of the company’s stock worth $19,489,000 after buying an additional 109,590 shares during the last quarter. Finally, Fuller & Thaler Asset Management Inc. acquired a new stake in shares of Inspire Medical Systems during the 4th quarter worth $61,619,000. 94.91% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Inspire Medical Systems

Here are the key news stories impacting Inspire Medical Systems this week:

• Positive Sentiment: Q1 results beat estimates — Inspire reported $0.10 EPS and $204.6M revenue, both ahead of expectations, showing underlying profitability and modest year-over-year revenue growth. Press Release
• Positive Sentiment: Stifel lowered its price target modestly but maintained a “buy” rating (PT cut to $65), signaling at least one major shop still sees upside longer-term. Article
• Neutral Sentiment: Earnings call materials and transcript are available for deeper color on assumptions behind the guidance and operational commentary. Use these to assess management’s timeline to resolve coding/reimbursement issues. Earnings Call Transcript
• Negative Sentiment: Company slashed FY2026 guidance: EPS now $0.75–$1.25 (vs. street ~1.99) and revenue $825–875M (vs. street ~961M); management cited reimbursement coding disruption and WISeR program impacts — the primary catalyst for the sell-off. Guidance Article
• Negative Sentiment: Analysts cut price targets and adjusted ratings across the board (examples: Robert W. Baird to $50, Mizuho to $55, JPMorgan to $54 neutral, Truist to $50 hold, Wells Fargo to $56 equal weight), reflecting reduced growth visibility. Baird PT Cut Mizuho PT Cut
• Negative Sentiment: Coverage turned more cautious: independent commentary and a Seeking Alpha piece continue to rate the stock a “sell” post-earnings, emphasizing execution and reimbursement risk. Sell Article
• Negative Sentiment: Market write-ups highlight that, despite the beat, the revised 2026 view and procedural headwinds materially reduce near-term growth visibility. Zacks Coverage

Analysts Set New Price Targets

Several brokerages have weighed in on INSP. Zacks Research downgraded Inspire Medical Systems from a “strong-buy” rating to a “hold” rating in a report on Tuesday, April 14th. Bank of America reiterated a “neutral” rating and issued a $53.00 price target on shares of Inspire Medical Systems in a report on Tuesday. Mizuho cut their price target on Inspire Medical Systems from $70.00 to $55.00 and set an “outperform” rating for the company in a report on Tuesday. UBS Group set a $67.00 price target on Inspire Medical Systems in a report on Friday, February 13th. Finally, Truist Financial cut their price target on Inspire Medical Systems from $64.00 to $50.00 and set a “hold” rating for the company in a report on Tuesday. Four analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Inspire Medical Systems currently has a consensus rating of “Hold” and a consensus target price of $85.00.

Inspire Medical Systems Company Profile

Inspire Medical Systems, Inc is a medical technology company specializing in implantable neurostimulation devices for the treatment of obstructive sleep apnea (OSA). The company’s flagship offering, the Inspire® system, delivers targeted stimulation of the hypoglossal nerve to maintain airway patency during sleep, providing an alternative therapy for patients who are intolerant of or inadequately managed by continuous positive airway pressure (CPAP) devices.

The Inspire system comprises an implantable pulse generator, a sensing lead that monitors breathing patterns, and a stimulation lead that activates the hypoglossal nerve.