Original source text
, /PRNewswire/ -- InMode Ltd. (Nasdaq: INMD) ("InMode"), a leading global provider of innovative medical technologies, today announced its consolidated financial results for the second quarter of 2026.
Second Quarter 2026 Highlights:
Quarterly GAAP revenues of $95.6 million, consistent with the second quarter of 2025. Quarterly revenues from consumables and service of $22.3 million, an increase of 13% compared to the second quarter of 2025. GAAP operating income of $12.3 million and *non-GAAP operating income of $16.0 million. Total cash position of $501.1 million as of June 30, 2026, including cash and cash equivalents, marketable securities and short-term bank deposits. Completed the repurchase of 6.38 million ordinary shares for an aggregate purchase price of $87.8 million through the previously announced share repurchase program. U.S. GAAP Results
(U.S. dollars in thousands, except for per share data)
Q2 2026
Q2 2025
$95,589
$95,602
75 %
80 %
13 %
24 %
$17,064
$26,742
$0.29
$0.42
*Non-GAAP Results
(U.S. dollars in thousands, except for per share data)
Q2 2026
Q2 2025
75 %
80 %
17 %
28 %
$20,812
$30,139
$0.35
$0.47
*Please refer to "Use of non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A reconciliation between U.S. GAAP and non-GAAP Statement of Income is provided following the financial statements included in this release. Non-GAAP results exclude share-based compensation, expenses related to independent transaction committee review (representing non-recurring cost) and related income tax adjustments where applicable.
Management Comments
"Overall revenue was consistent with the prior-year period, and we saw continued stability in our U.S. capital equipment business, reflecting steady customer demand. This performance is consistent with the stabilization we anticipate will continue through the remainder of the year. We remain focused on investing in opportunities that support long-term growth," said Moshik Itzkovich, Chief Financial Officer of InMode.
Second Quarter 2026 Financial Results
Total GAAP revenues for the second quarter of 2026 were $95.6 million, consistent with the second quarter of 2025. Revenue from Asia reached a quarterly record, reflecting continued strength across key markets in the region. Quarterly revenues from consumables and service grew 13% compared to the second quarter of 2025, to $22.3 million, derived primarily from international sales.
GAAP gross margin for the second quarter of 2026 was 75%, compared to 80% for the second quarter of 2025.
*Non-GAAP gross margin for the second quarter of 2026 was 75%, compared to 80% for the second quarter of 2025.
GAAP operating margin for the second quarter of 2026 was 13%, compared to 24% for the second quarter of 2025. *Non-GAAP operating margin for the second quarter of 2026 was 17%, compared to 28% for the second quarter of 2025. These decreases were primarily attributable to higher cost of goods sold, product mix, the restructuring of the North America sales team implemented toward the end of 2025, additional marketing and sales investments to retain talent and maintain market share, and higher general and administrative expenses driven by increased professional services costs. We expect these trends to continue for the foreseeable future.
InMode reported GAAP net income of $17.1 million, or $0.29 per diluted share, in the second quarter of 2026, compared to $26.7 million, or $0.42 per diluted share, in the second quarter of 2025. On a *non-GAAP basis, InMode reported net income of $20.8 million, or $0.35 per diluted share, in the second quarter of 2026, compared to $30.1 million, or $0.47 per diluted share, in the second quarter of 2025.
As of June 30, 2026, InMode had cash and cash equivalents, marketable securities and short-term bank deposits of $501.1 million.
Appointed New Chief Financial Officer and New Board Director
On May 20, 2026, the Company announced the appointment of Dr. Shlomo Nass as its new Chairman of the Company's Board of Directors, effective May 19, 2026. The Company also announced the appointment of Moshe (Moshik) Itzkovich as the Company's new Chief Financial Officer, effective May 19, 2026, while former Chief Financial Officer Yair Malca continues to be engaged with the Company as a consultant.
2026 Financial Outlook
Management provided an outlook for the full fiscal year ending December 31, 2026. Based on current estimates, management expects:
Revenues between $365 million and $375 million *Non-GAAP gross margin between 74% and 76% *Non-GAAP income from operations to be between $68 million and $73 million *Non-GAAP earnings per diluted share between $1.29 and $1.34 However, these expectations are based on management's current estimates, which may be updated.
This outlook is not a guarantee of future performance, and shareholders should not rely on such forward-looking statements. See "Forward-Looking Statements" for additional information.
*Please refer to "Use of non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A reconciliation between U.S. GAAP and non-GAAP Statement of Income is provided following the financial statements that are included in this release. Non-GAAP results exclude share-based compensation, expenses related to independent transaction committee review (representing non-recurring cost) and related income tax adjustments where applicable.
Conference Call and Webcast Update
As previously announced, while the Company's Special Committee continues its evaluation of unsolicited proposals, the Company will not host an investor conference call or webcast in connection with this earnings release and will not be conducting investor meetings at this time.
The Current Situation in Israel
The scope and severity of ongoing conflicts in Gaza, Northern Israel, Lebanon, Iran, and the broader region are unpredictable and could escalate at any time. To date, our operations have not been materially affected. We continue to monitor political and military developments closely and examine the consequences for our operations and assets.
Use of Non-GAAP Financial Measures
In addition to InMode's operating results presented in accordance with GAAP, this release contains certain non-GAAP financial measures including non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating margin, non-GAAP gross margin and non-GAAP income from operations. Because these measures are used in InMode's internal analysis of financial and operating performance, management believes they provide investors with greater transparency into its view of InMode's economic performance. Management also believes the presentation of these measures, when analyzed in conjunction with InMode's GAAP operating results, allows investors to more effectively evaluate and compare InMode's performance to that of its peers, although InMode's presentation of its non-GAAP measures may not be strictly comparable to the similarly titled measures of other companies. Schedules reconciling each of these non-GAAP financial measures are provided as a supplement to this release. Reconciliations of non-GAAP gross margin, non-GAAP income from operations, and non-GAAP earnings per diluted share for management's projections of such non-GAAP financials for the 2026 fiscal year are not available without unreasonable effort due to the variability, complexity and limited visibility of certain reconciling items. These reconciling items could have a significant and unpredictable impact on our future GAAP results.
About InMode
InMode is a leading global provider of innovative medical technologies. InMode develops, manufactures, and markets devices harnessing novel radio frequency ("RF") technology. InMode strives to enable emerging surgical procedures as well as improve existing treatments. InMode has leveraged its medically accepted minimally invasive RF technologies to offer a comprehensive line of products across several categories for plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology. For more information about InMode, please visit www.inmodemd.com.
Forward-Looking Statements
The information in this press release includes forward-looking statements within the meaning of the federal securities laws. These statements generally relate to future events or InMode's future financial or operating performance, including the actual amount of share repurchases made by the Company, if any. Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. In some cases, you can identify these statements because they contain words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will," "would" and similar expressions that concern our expectations, strategic plans or intentions. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Consequently, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in InMode's Annual Report on Form 20-F filed with the Securities and Exchange Commission on February 10, 2026, and our subsequent public filings. InMode undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which pertain only as of the date of this press release.
Company Contact:
Moshik Itzkovich
Chief Financial Officer
Email: [email protected]
Investor Relations Contact:
Miri Segal
MS-IR LLC
Email: [email protected]
INMODE LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(U.S. dollars in thousands, except for per share data)
(Unaudited)
Three months ended
Six months ended
June 30,
June 30,
2026
2025
2026
2025
REVENUES
95,589
95,602
177,606
173,476
COST OF REVENUES
24,073
19,152
44,538
36,115
GROSS PROFIT
71,516
76,450
133,068
137,361
OPERATING EXPENSES:
Research and development
3,656
3,372
7,198
6,267
Sales and marketing
50,818
47,474
93,750
87,201
General and administrative
4,785
2,723
9,807
5,394
TOTAL OPERATING EXPENSES
59,259
53,569
110,755
98,862
OPERATING INCOME
12,257
22,881
22,313
38,499
Finance income, net
7,432
8,062
11,728
14,921
INCOME BEFORE INCOME TAXES
19,689
30,943
34,041
53,420
INCOME TAXES
2,625
4,201
5,415
8,477
NET INCOME
17,064
26,742
28,626
44,943
EARNINGS PER SHARE:
Basic
0.29
0.42
0.47
0.68
Diluted
0.29
0.42
0.46
0.68
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING USED
IN COMPUTATION OF EARNINGS
PER SHARE (in thousands)
Basic
58,903
63,252
61,140
65,982
Diluted
59,378
63,637
61,717
66,540
INMODE LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands, except for per share data)
(Unaudited)
June 30,
2026
December 31,
2025
Assets
CURRENT ASSETS:
Cash and cash equivalents
396,173
302,543
Marketable securities
18,995
83,632
Short-term bank deposits
85,947
169,159
Accounts receivable, net of allowance for credit losses
44,555
43,504
Prepaid expenses and other receivables
32,664
25,733
Inventories
71,661
74,050
TOTAL CURRENT ASSETS
649,995
698,621
NON-CURRENT ASSETS:
Accounts receivable, net of allowance for credit losses
5,686
3,005
Deferred income tax assets
52,629
53,230
Operating lease right-of-use assets
8,693
8,274
Property and equipment, net
2,628
2,599
Other investments
700
700
TOTAL NON-CURRENT ASSETS
70,336
67,808
TOTAL ASSETS
720,331
766,429
Liabilities and shareholders' equity
CURRENT LIABILITIES:
Accounts payables
18,792
17,912
Contract liabilities
15,452
12,093
Other liabilities
45,193
40,739
TOTAL CURRENT LIABILITIES
79,437
70,744
NON-CURRENT LIABILITIES:
Contract liabilities
2,484
3,043
Other liabilities
4,825
4,436
Operating lease liabilities
4,451
5,008
TOTAL NON-CURRENT LIABILITIES
11,760
12,487
TOTAL LIABILITIES
91,197
83,231
TOTAL SHAREHOLDERS' EQUITY
629,134
683,198
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
720,331
766,429
INMODE LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands, except for per share data)
(Unaudited)
Three months ended
June 30,
Six months ended
June 30,
2026
2025
2026
2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
17,064
26,742
28,626
44,943
Adjustments required to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
179
191
354
365
Share-based compensation expenses
3,708
3,418
6,407
5,936
Change in allowance for credit losses of trade receivable
719
147
1,244
53
Loss on marketable securities, net
–
5
–
3
Finance expenses (income), net
388
(313)
1,107
(1,887)
Deferred income taxes
295
566
622
1,462
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable (current and non-current)
(5,046)
(3,285)
(4,974)
1,259
Decrease (increase) in other receivables
(1,164)
1,276
(7,030)
(2,256)
Decrease (increase) in inventories
(253)
(4,329)
2,389
(8,562)
Increase in accounts payable
1,939
2,430
880
3,700
Increase (decrease) in other liabilities (current and non-current)
4,400
127
4,012
(3,160)
Increase (decrease) in contract liabilities (current and non-current)
(1,178)
(2,903)
2,800
(3,740)
Net cash provided by operating activities
21,051
24,072
36,437
38,116
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in short-term deposits
(85,000)
(25,000)
(169,912)
(25,000)
Proceeds from short-term deposits
84,912
55,000
252,570
86,297
Purchase of fixed assets
(211)
(219)
(383)
(304)
Purchase of marketable securities
–
-
(9,727)
(20,877)
Proceeds from sale of marketable securities
–
-
–
3,003
Proceeds from maturity of marketable securities
37,983
41,875
74,239
104,022
Net cash provided by investing activities
37,684
71,656
146,787
147,141
CASH FLOWS FROM FINANCING ACTIVITIES:
Tax withholding related to vesting of restricted share units
-
-
(1,802)
-
Repurchase of ordinary shares
(56,511)
(27,484)
(87,752)
(127,444)
Exercise of options
19
505
636
999
Net cash used in financing activities
(56,492)
(26,979)
(88,918)
(126,445)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH
EQUIVALENTS
(365)
1,540
(676)
2,096
NET INCREASE IN CASH AND CASH EQUIVALENTS
1,878
70,289
93,630
60,908
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
394,295
145,948
302,543
155,329
CASH AND CASH EQUIVALENTS AT END OF PERIOD
396,173
216,237
396,173
216,237
INMODE LTD.
CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS
(U.S. dollars in thousands, except for per share data)
(Unaudited)
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Revenues by Category:
Capital Equipment revenues - United States
43,084
45 %
40,653
42 %
76,753
43 %
70,195
40 %
Capital Equipment revenues - International
30,194
32 %
35,133
37 %
57,179
32 %
63,266
37 %
Total Capital Equipment revenues
73,278
77 %
75,786
79 %
133,932
75 %
133,461
77 %
Consumables and service revenues
22,311
23 %
19,816
21 %
43,674
25 %
40,015
23 %
Total Revenue
95,589
100 %
95,602
100 %
177,606
100 %
173,476
100 %
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
%
%
%
%
United States
International
Total
United States
International
Total
United States
International
Total
United States
International
Total
Revenues by Technology:
Minimal-Invasive
71
73
73
73
82
78
73
77
75
82
81
81
Hands-Free
1
2
1
4
2
3
1
1
1
3
2
3
Non-Invasive
28
25
26
23
16
19
26
22
24
15
17
16
100
100
100
100
100
100
100
100
100
100
100
100
INMODE LTD.
RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF
INCOME TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(U.S. dollars in thousands, except for per share data)
(Unaudited)
Three months ended June 30, 2026
Three months ended June 30, 2025
GAAP
Stock Based
Compensation
Non-GAAP
GAAP
Stock Based
Compensation
Non-GAAP
REVENUES
95,589
–
95,589
95,602
–
95,602
COST OF REVENUES
24,073
(302)
23,771
19,152
(334)
18,818
GROSS PROFIT
71,516
302
71,818
76,450
334
76,784
OPERATING EXPENSES:
Research and development
3,656
(282)
3,374
3,372
(287)
3,085
Sales and marketing
50,818
(2,525)
48,293
47,474
(2,529)
44,945
General and administrative
4,785
(599)
4,186
2,723
(268)
2,455
TOTAL OPERATING EXPENSES
59,259
(3,406)
55,853
53,569
(3,084)
50,485
OPERATING INCOME
12,257
3,708
15,965
22,881
3,418
26,299
Finance income, net
7,432
–
7,432
8,062
-
8,062
INCOME BEFORE INCOME TAXES
19,689
3,708
23,397
30,943
3,418
34,361
INCOME TAXES
2,625
(40)
2,585
4,201
21
4,222
NET INCOME
17,064
3,748
20,812
26,742
3,397
30,139
EARNINGS PER SHARE
Basic
0.29
0.35
0.42
0.48
Diluted
0.29
0.35
0.42
0.47
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN
COMPUTATION OF NET INCOME PER SHARE (in Thousands)
Basic
58,903
58,903
63,252
63,252
Diluted
59,378
60,174
63,637
64,537
Six months ended June 30, 2026
Six months ended June 30, 2025
GAAP
Stock Based Compensation
Expenses
Related to
Independent
Transaction
Committee
Review
Non-GAAP
GAAP
Stock Based Compensation
Non-GAAP
REVENUES
177,606
–
–
177,606
173,476
-
173,476
COST OF REVENUES
44,538
(616)
–
43,922
36,115
(644)
35,471
GROSS PROFIT
133,068
616
–
133,684
137,361
644
138,005
OPERATING EXPENSES:
Research and development
7,198
(550)
–
6,648
6,267
(509)
5,758
Sales and marketing
93,750
(4,386)
–
89,364
87,201
(4,292)
82,909
General and administrative
9,807
(855)
(1,262)
7,690
5,394
(491)
4,903
TOTAL OPERATING EXPENSES
110,755
(5,791)
(1,262)
103,702
98,862
(5,292)
93,570
OPERATING INCOME
22,313
6,407
1,262
29,982
38,499
5,936
44,435
Finance income, net
11,728
–
–
11,728
14,921
-
14,921
INCOME BEFORE INCOME TAXES
34,041
6,407
1,262
41,710
53,420
5,936
59,356
INCOME TAXES
5,415
(389)
–
5,026
8,477
(655)
7,822
NET INCOME
28,626
6,796
1,262
36,684
44,943
6,591
51,534
EARNINGS PER SHARE
Basic
0.47
0.60
0.68
0.78
Diluted
0.46
0.59
0.68
0.77
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in Thousands)
Basic
61,140
61,140
65,982
65,982
Diluted
61,717
62,324
66,540
67,052
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SOURCE InMode Ltd.
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