InMode (NASDAQ:INMD) Issues Quarterly Earnings Results, Misses Estimates By $0.04 EPS

InMode (NASDAQ:INMD) posted its quarterly earnings results on Wednesday. The healthcare company reported $0.25 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.29 by ($0.04), FiscalAI reports. InMode had a return on equity of 14.52% and a net margin of 25.33%.The business had revenue of $82.02 million during the quarter, compared to analyst estimates of $80.33 million. During the same period last year, the company earned $0.31 EPS. The business’s revenue for the quarter was up 5.3% on a year-over-year basis.

Here are the key takeaways from InMode’s conference call:

• Q1 results and guidance: InMode reported Q1 revenue of $82.0M (up 5% YoY) and reiterated 2026 guidance of $365M–$375M in revenue with non‑GAAP gross margin target of 74%–76% and non‑GAAP EPS of $1.33–$1.38.
• Margin and profitability pressure: GAAP gross margin fell to 75% (from 78% prior year) and non‑GAAP gross margin to 75% (from 79%), driving non‑GAAP operating margin down to 17% (vs. 23%) and lower non‑GAAP EPS of $0.25.
• North America sales reorg showing early improvement: New leadership and a unified North America model—including a dedicated Envision ophthalmology/optometry sales team—coincided with stronger U.S. performance and encouraging March trends, though management is seeking sustained consistency.
• Product pipeline and mix impact: Recently introduced platforms (Picofy and a CO2 offering) contributed meaningfully and an Erbium laser aims for FDA clearance by year‑end; these broaden procedure capability and customer stickiness but could exert pressure on gross margins.
• Capital allocation flexibility: The company holds about $537.2M in cash/marketable securities, has repurchased meaningful stock (about $127.4M in 2025 and $52.7M YTD 2026, ~3.86M shares), plans to continue buybacks and says M&A/dividend options remain under consideration.

InMode Trading Down 5.6%

NASDAQ INMD opened at $13.59 on Thursday. The firm has a market cap of $861.05 million, a price-to-earnings ratio of 9.44 and a beta of 1.97. The company has a 50 day moving average of $13.81 and a 200-day moving average of $14.35. InMode has a 1-year low of $12.72 and a 1-year high of $16.74.

Institutional Trading of InMode

Hedge funds have recently modified their holdings of the company. Quadrant Capital Group LLC increased its holdings in shares of InMode by 127.8% during the fourth quarter. Quadrant Capital Group LLC now owns 1,945 shares of the healthcare company’s stock worth $29,000 after buying an additional 1,091 shares in the last quarter. Advisory Services Network LLC acquired a new stake in shares of InMode during the third quarter worth approximately $37,000. Deutsche Bank AG increased its holdings in shares of InMode by 35.9% in the fourth quarter. Deutsche Bank AG now owns 3,927 shares of the healthcare company’s stock valued at $58,000 after purchasing an additional 1,037 shares in the last quarter. Parallel Advisors LLC increased its holdings in shares of InMode by 113.3% in the fourth quarter. Parallel Advisors LLC now owns 4,318 shares of the healthcare company’s stock valued at $63,000 after purchasing an additional 2,294 shares in the last quarter. Finally, Brooklyn Investment Group acquired a new stake in shares of InMode in the fourth quarter valued at approximately $154,000. Institutional investors and hedge funds own 68.04% of the company’s stock.

Key Stories Impacting InMode

Here are the key news stories impacting InMode this week:

• Positive Sentiment: Revenue beat and modest growth: Q1 GAAP revenue was $82.0M, above the consensus ~$80.3M, and up ~5% year‑over‑year — evidence of underlying demand resilience. Press Release
• Positive Sentiment: Profitability metrics remain solid: reported net margin ~25.3% and ROE ~14.5%, which help cushion the stock despite the EPS miss. Slide Deck / Release
• Neutral Sentiment: Full transparency — earnings call transcripts and conference materials are available for investors to review management’s commentary on demand trends and margin drivers. Yahoo Transcript Seeking Alpha Transcript
• Negative Sentiment: EPS missed estimates: reported $0.25 vs. consensus $0.29 (and vs. $0.31 a year ago), highlighting some pressure on near‑term profitability and growth momentum. MarketBeat Earnings Summary
• Negative Sentiment: Analyst action: Robert W. Baird cut its price target from $17 to $14 and set a “neutral” rating — a direct downward catalyst that reduces perceived upside (Baird’s new PT implies only ~3% upside from the recent price). Benzinga

Analyst Ratings Changes

Several research analysts recently issued reports on INMD shares. Robert W. Baird dropped their price target on shares of InMode from $17.00 to $14.00 and set a “neutral” rating for the company in a research report on Thursday. Weiss Ratings reissued a “sell (d+)” rating on shares of InMode in a research report on Thursday, January 22nd. Barclays set a $19.00 price target on shares of InMode in a research report on Thursday. Finally, BTIG Research reissued a “neutral” rating on shares of InMode in a research report on Monday, January 26th. One investment analyst has rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, InMode has a consensus rating of “Hold” and an average price target of $16.00.

About InMode

InMode Ltd. (NASDAQ:INMD) is a medical technology company headquartered in Israel that develops, manufactures and markets devices for aesthetic and medical treatments. The company specializes in energy-based technologies, primarily radiofrequency platforms, designed to deliver minimally-invasive and non-invasive procedures.

InMode’s product portfolio encompasses a range of modular systems targeting body contouring, facial rejuvenation, skin tightening and other cosmetic applications. Key offerings include devices built on proprietary radiofrequency and radiofrequency-assisted lipolysis, enabling physicians to perform treatments such as tissue coagulation, skin resurfacing and subdermal volumizing with reduced downtime.

The company distributes its technologies through direct sales operations and distribution partners, serving medical professionals across multiple geographies including North America, Europe, Asia Pacific and Latin America.