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Bank of New York Mellon Corp acquired a new stake in Inspire Medical Systems, Inc. (NYSE:INSP – Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 148,627 shares of the company’s stock, valued at approximately $6,630,000. Bank of New York Mellon Corp owned approximately 0.52% of Inspire Medical Systems as of its most recent SEC filing.

Other hedge funds also recently made changes to their positions in the company. GSA Capital Partners LLP purchased a new stake in shares of Inspire Medical Systems during the second quarter worth about $820,000. Handelsbanken Fonder AB boosted its holdings in Inspire Medical Systems by 44.9% in the second quarter. Handelsbanken Fonder AB now owns 14,200 shares of the company’s stock valued at $633,000 after purchasing an additional 4,400 shares during the last quarter. Tactive Advisors LLC acquired a new stake in Inspire Medical Systems during the 2nd quarter valued at approximately $287,000. Assenagon Asset Management S.A. increased its holdings in Inspire Medical Systems by 66.2% during the 2nd quarter. Assenagon Asset Management S.A. now owns 864,395 shares of the company’s stock worth $38,561,000 after purchasing an additional 344,221 shares during the last quarter. Finally, GAMMA Investing LLC increased its holdings in Inspire Medical Systems by 85.0% during the 2nd quarter. GAMMA Investing LLC now owns 1,221 shares of the company’s stock worth $54,000 after purchasing an additional 561 shares during the last quarter. Hedge funds and other institutional investors own 94.91% of the company’s stock.

Inspire Medical Systems Trading Down 1.8% INSP stock opened at $61.93 on Friday. The firm has a market cap of $1.79 billion, a P/E ratio of 13.40, a P/E/G ratio of 4.79 and a beta of 0.70. Inspire Medical Systems, Inc. has a 12-month low of $38.91 and a 12-month high of $147.03. The stock’s 50 day simple moving average is $54.70 and its 200 day simple moving average is $52.36.

Inspire Medical Systems (NYSE:INSP – Get Free Report) last released its quarterly earnings data on Monday, August 3rd. The company reported $0.14 EPS for the quarter, topping analysts’ consensus estimates of ($0.24) by $0.38. Inspire Medical Systems had a net margin of 15.03% and a return on equity of 8.64%. The firm had revenue of $200.58 million during the quarter, compared to the consensus estimate of $194.72 million. During the same quarter in the previous year, the company posted $0.45 earnings per share. The firm’s revenue was down 7.6% on a year-over-year basis. Inspire Medical Systems has set its FY 2026 guidance at 1.050-1.450 EPS. On average, research analysts forecast that Inspire Medical Systems, Inc. will post 1.24 EPS for the current fiscal year. Insider Activity at Inspire Medical Systems In related news, insider Jason Kelly sold 963 shares of the business’s stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $59.55, for a total transaction of $57,346.65. Following the completion of the sale, the insider owned 18,985 shares of the company’s stock, valued at $1,130,556.75. This represents a 4.83% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 2.20% of the company’s stock.

Wall Street Analysts Forecast Growth A number of brokerages have issued reports on INSP. Weiss Ratings raised Inspire Medical Systems from a “sell (d)” rating to a “sell (d+)” rating in a research report on Wednesday, August 19th. Bank of America lowered shares of Inspire Medical Systems from a “neutral” rating to an “underperform” rating and set a $39.00 price target for the company. in a research note on Friday, May 22nd. Evercore set a $54.00 price target on shares of Inspire Medical Systems in a report on Tuesday, August 4th. UBS Group assumed coverage on shares of Inspire Medical Systems in a report on Tuesday, July 28th. They set a “sell” rating and a $39.00 price objective for the company. Finally, Truist Financial reissued a “hold” rating and issued a $62.00 target price (up from $54.00) on shares of Inspire Medical Systems in a research report on Tuesday, August 4th. Two equities research analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating, eleven have given a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat.com, Inspire Medical Systems presently has an average rating of “Hold” and an average target price of $66.19.

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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.

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Bank of America Corp DE cut its holdings in shares of Inspire Medical Systems, Inc. (NYSE: INSP) by 11.4% during the undefined quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 186,069 shares of the company's stock after selling 24,057 shares during the quarter. Bank

 | Source: Inspire Medical Systems

MINNEAPOLIS, Aug. 26, 2026 (GLOBE NEWSWIRE) -- Inspire Medical Systems, Inc. (NYSE: INSP) (Inspire), a medical technology company focused on the development and commercialization of innovative, minimally invasive solutions for patients with obstructive sleep apnea, announced today that its management team will present at the Wells Fargo 21st Annual Healthcare Conference on Wednesday, September 9, 2026.

Inspire is scheduled to present at 1:30 p.m. Eastern Time. The presentation will be accessible via a live webcast here.

A webcast replay of the presentation will be available for two weeks following the presentation in the Event Archive section of Inspire’s Investor website at https://investors.inspiresleep.com.

About Inspire Medical Systems
Inspire is a medical technology company focused on the development and commercialization of innovative, minimally invasive solutions for patients with obstructive sleep apnea. Inspire’s proprietary Inspire therapy is the first FDA, EU MDR, and PDMA-approved neurostimulation technology that provides a safe and effective treatment for moderate to severe obstructive sleep apnea.

For additional information about Inspire, please visit www.inspiresleep.com.

Investor and Media Contact
Louisa Smith
Principal, Gilmartin Group
[email protected]

Key Takeaways Inspire Medical shares gained 39.7% in three months as reimbursement headwinds began to ease.Project Horizon aims to create about $30M in annualized investment capacity for growth initiatives.Inspire V drove a richer product mix and accounted for the majority of implants in the second quarter. Inspire Medical Systems (INSP - Free Report) stock has gained 39.7% in the past three months, underperforming the Medical Information Systems industry's 48.2% gain while outperforming the S&P 500's 2.2% rise during the period. The rally reflects improving investor confidence as reimbursement headwinds begin to ease and management doubles down on long-term growth initiatives.

Inspire Medical reinforced this optimism with a stronger-than-expected second quarter. Although revenues declined 7.6% year over year to $200.6 million due to temporary coding disruptions, adjusted earnings per share (EPS) beat expectations, operating cash flow improved sharply, and the company raised its 2026 revenue, operating margin and adjusted EPS outlook. The launch of Project Horizon and growing adoption of Inspire V further strengthen its long-term growth outlook.

What Is Fueling INSP’s Growth?Project Horizon Is Creating a Stronger Growth Engine: Inspire Medical launched Project Horizon to accelerate long-term revenue growth by improving patient flow and expanding access to therapy. The initiative is expected to create roughly $30 million in annualized investment capacity through organizational optimization and supply-chain efficiencies. Management plans to reinvest these savings into patient education, engagement and prior-authorization support, which should help drive growth beyond 2026.

Inspire V Adoption Continues to Strengthen: Inspire V remains a major growth catalyst for the company. The new system helped expand gross margin through a richer product mix, while management said it accounted for the majority of implants during the second quarter. The company also highlighted strong clinical data demonstrating the system's safety, efficacy and potential cardiovascular benefits, reinforcing its competitive positioning.

Reimbursement Clarity Is Supporting Recovery: The reimbursement environment is gradually becoming more favorable. Inspire Medical said C-codes are now in place, reimbursement rates remain intact and prior-authorization trends are improving as providers become more comfortable with updated billing processes. The company expects reimbursement-related headwinds to ease sequentially through the second half of 2026, providing a clearer path toward revenue recovery. 

A Large Untapped Market Supports Long-Term Expansion: Inspire Medical continues to target a significant untreated obstructive sleep apnea population. Management believes growing clinical evidence, expanding physician education and broader international adoption can support future growth. The company is also working to expand surgeon capacity and simplify patient screening through the PREDICTOR study, which could reduce diagnostic hurdles and improve access to therapy.

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INSP’s EstimatesThe Zacks Consensus Estimate for INSP’s 2026 and 2027 EPS implies a year-over-year decline of 48.8% and growth of 22.7%, respectively, to $1.24 and $1.52. In the past 60 days, the consensus mark for the company's 2026 EPS has improved by 31 cents.

Revenues for 2026 are projected to decline 6.7% to $851.2 million and improve 4.4% to $888.4 million in 2027.

Risks and ChallengesInspire Medical’s recovery still depends heavily on execution. Coding and reimbursement disruptions continue to weigh on U.S. procedure volumes, and management expects these issues to remain a headwind through the second half of 2026. While prior-authorization trends are improving, the pace of recovery remains uncertain.

The company is also investing aggressively through Project Horizon, and the benefits may take time to materialize. In addition, future reimbursement decisions, including the proposed CPT code process and Medicare payment updates, remain important variables for the long-term growth outlook.

ConclusionINSP’s recent rally reflects growing confidence that its temporary reimbursement challenges are becoming more manageable. Stronger-than-expected profitability, improving cash generation, growing Inspire V adoption and Project Horizon's growth investments provide a solid foundation for future expansion. The company's raised 2026 outlook and improving reimbursement trends further strengthen the long-term investment case.

While coding-related disruptions and reimbursement decisions remain important watch points, Inspire Medical’s expanding clinical evidence, operational discipline and large untapped sleep apnea market position it well for sustained long-term growth. Backed by a Zacks Rank #1 (Strong Buy), the stock appears well-positioned for investors seeking exposure to an innovative medical technology leader.

Other Stocks to ConsiderSome other top-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , West Pharmaceutical (WST - Free Report) and The Cooper Companies (COO - Free Report) .

Globus Medical, currently sporting a Zacks Rank #1, reported a second-quarter 2026 adjusted EPS of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.

West Pharmaceutical, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2026 adjusted EPS of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.

WST has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.4%.

The Cooper Companies, carrying a Zacks Rank #2 at present, reported a second-quarter fiscal 2026 adjusted EPS of $1.21, which beat the Zacks Consensus Estimate by 10%. Revenues of $1.08 billion beat the Zacks Consensus Estimate by 2.6%.

COO has an estimated long-term earnings growth rate of 8.3%. COO’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.8%.

Medacta Group (OTCMKTS:MEDGF – Get Free Report) and Inspire Medical Systems (NYSE:INSP – Get Free Report) are both healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.

Earnings & Valuation This table compares Medacta Group and Inspire Medical Systems”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Medacta Group N/A N/A N/A N/A N/A Inspire Medical Systems $911.98 million 1.82 $145.42 million $4.62 12.43 Inspire Medical Systems has higher revenue and earnings than Medacta Group. Profitability This table compares Medacta Group and Inspire Medical Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Medacta Group N/A N/A N/A Inspire Medical Systems 15.03% 8.64% 7.45% Insider and Institutional Ownership 94.9% of Inspire Medical Systems shares are owned by institutional investors. 2.2% of Inspire Medical Systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations This is a summary of current ratings and recommmendations for Medacta Group and Inspire Medical Systems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Medacta Group 0 0 1 0 3.00 Inspire Medical Systems 3 12 3 1 2.11 Inspire Medical Systems has a consensus target price of $66.19, indicating a potential upside of 15.26%. Given Inspire Medical Systems’ higher possible upside, analysts clearly believe Inspire Medical Systems is more favorable than Medacta Group.

Summary Inspire Medical Systems beats Medacta Group on 9 of the 10 factors compared between the two stocks.

About Medacta Group (Get Free Report)

Medacta Group SA develops, manufactures, and distributes orthopedic and neurosurgical medical devices Europe, North America, the Asia-Pacific, and internationally. It offers personalized 3D planning tools for use in hip, knee, shoulder, joint replacement, sports medicine, and spine procedures. Medacta Group SA was founded in 1958 and is headquartered in Castel San Pietro, Switzerland.

(Get Free Report)

Inspire Medical Systems, Inc., a medical technology company, focuses on the development and commercialization of minimally invasive solutions for patients with obstructive sleep apnea (OSA) in the United States and internationally. The company offers Inspire system, a neurostimulation technology that provides a safe and effective treatment for moderate to severe OSA. It also develops a novel, closed-loop solution that continuously monitors a patient's breathing and delivers mild hypoglossal nerve stimulation to maintain an open airway. The company was incorporated in 2007 and is headquartered in Golden Valley, Minnesota.

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Key Takeaways Inspire Medical shares gained 28.1% in a month after an earnings beat and higher 2026 guidance.Inspire V lifted second-quarter gross margin 150 basis points to 85.5% despite lower revenues.Coding and prior authorization issues cut quarterly revenues by about $40 million and remain a key risk. Inspire Medical Systems, Inc. (INSP - Free Report) shares have gained 28.1% in the past month, shifting attention to whether improving earnings expectations can support additional upside.

The rally follows a quarterly earnings beat, higher 2026 guidance and favorable estimate revisions. Reimbursement disruption, however, continues to limit procedure volumes and near-term revenue growth.

Inspire’s Earnings Beat Reset ExpectationsSecond-quarter adjusted earnings per share of 14 cents surpassed the Zacks Consensus Estimate for a loss of 22 cents. Revenues of $200.6 million also exceeded expectations despite declining 7.6% year over year.

Disciplined spending helped offset the sales decline. Adjusted operating income reached $3.2 million, while operating cash flow improved to $23.2 million, showing that Inspire protected profitability and cash generation during a difficult operating period.

INSP’s Guidance Supports the Improved SentimentManagement raised its 2026 revenue outlook to $835-$875 million and increased adjusted earnings guidance to $1.05-$1.45 per share. The company also expects an adjusted operating margin of 4%-6%.

The Zacks Consensus Estimate for 2026 earnings increased 34.7% over the past four weeks. That revision helps explain the improved sentiment, although the current consensus estimate of 93 cents remains below management’s adjusted guidance range.

Image Source: Zacks Investment Research

Inspire V Is Strengthening Gross MarginA higher sales mix of Inspire V systems lifted second-quarter gross margin 150 basis points to 85.5%. The improvement came even as quarterly revenues declined, underscoring the next-generation platform’s favorable product economics.

Inspire V represented the large majority of implants during the quarter. Continued adoption could support margins as reimbursement conditions stabilize and procedure activity recovers.

INSP Still Faces Reimbursement FrictionCoding challenges and the WISeR prior authorization program reduced second-quarter revenues by approximately $40 million. Management expects a $120-$130 million full-year impact and forecasts an 8%-10% revenue decline in the third quarter.

The pressure also shapes the competitive backdrop. ResMed Inc. (RMD - Free Report) remains a major provider of continuous positive airway pressure systems for obstructive sleep apnea, while Eli Lilly and Company (LLY - Free Report) markets Zepbound for adults with moderate-to-severe obstructive sleep apnea and obesity. These alternatives can influence treatment sequencing and patient conversion.

Inspire’s Valuation Tests the RallyINSP trades at about 2.1X forward 12-month sales, below its five-year median of 7.1X and the medical information systems industry’s 5.1X multiple. The discount leaves room for recovery if operating trends improve.

Further gains likely require clearer evidence that U.S. procedure volumes and revenues are normalizing. A low multiple alone may not offset uncertainty around coding, prior authorization delays and the pace of reimbursement improvement.

INSP’s Mixed Scores Temper the RallyThe rally has improved the setup, but the risk-reward picture remains balanced. Earnings revisions, guidance and Inspire V margins support the recovery case, while reimbursement friction argues against assuming that the rebound is complete.

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In the year-to-date period, shares of Inspire Medical dropped 34% compared with the industry’s 5.9% decline. It currently carries a Zacks Rank #3 (Hold). Its Growth Score of B and VGM Score of B point to favorable growth characteristics, but its Value Score of C and Momentum Score of C are less supportive. The combination favors a measured stance after the sharp past-month advance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Inspire's long-term case rests on a $10B-plus U.S. market with penetration still below 5%.Coding, authorization delays and uneven Medicare payments cut second-quarter revenue by about $40M.Inspire V lifted gross margin to 85.5%, while $320.7M in cash and no debt add financial flexibility. Inspire Medical Systems, Inc. (INSP - Free Report) offers investors a difficult trade-off. Its underpenetrated obstructive sleep apnea market, improving margins and financial flexibility support the long-term case.

Near-term execution remains less certain. Coding changes, prior-authorization delays and inconsistent Medicare reimbursement continue to restrain procedure volumes, making patience more appropriate than an aggressive entry.

Inspire’s Market Opportunity Remains LargeManagement estimates the U.S. opportunity at more than $10 billion, with market penetration below 5%. More than 140,000 patients have received Inspire therapy, while over 1,500 physicians perform implants.

That adoption base leaves substantial room for expansion if access improves. ResMed Inc. (RMD - Free Report) , a major provider of continuous positive airway pressure therapy, also serves the large sleep apnea market, underscoring both the demand opportunity and established competition.

INSP’s Balance Sheet Supports PatienceInspire ended the second quarter with $320.7 million in cash, cash equivalents and short-term investments. The company had no debt, limiting near-term balance-sheet pressure during the reimbursement disruption.

Operating cash flow reached $36.1 million in the first half of 2026, compared with cash use of $4 million a year earlier. This liquidity gives Inspire room to fund patient-access programs, commercial execution and research.

Inspire V Improves the Economic ModelInspire V represented the large majority of second-quarter implants and helped lift gross margin to 85.5%, up 150 basis points year over year. Its integrated respiratory sensor simplifies the implant procedure.

CMS has proposed raising 2027 Medicare facility reimbursement by about 12% for hospital outpatient procedures and 15% for ambulatory surgery centers. Those increases could improve procedure economics, but final rates are expected in November 2026.

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INSP’s Growth Case Still Has FrictionCoding and reimbursement disruption, including the WISeR prior-authorization program in six Medicare pilot states, reduced second-quarter revenues by about $40 million. Management expects a $120-$130 million full-year revenue impact.

Two Medicare Administrative Contractors still require a reduced-services modifier, creating uneven surgeon payments. Eli Lilly and Company (LLY - Free Report) adds another variable because Zepbound is approved for moderate-to-severe obstructive sleep apnea in adults with obesity, potentially affecting treatment sequencing.

Inspire’s Valuation Balances Risk and OpportunityINSP trades at roughly 2.1X forward sales, below the sub-industry multiple of 5.1X and its five-year median of 7.1X. The discount recognizes the company’s weaker near-term growth visibility.

A durable re-rating likely requires improving U.S. procedure trends, more consistent reimbursement and evidence that patient-flow investments are converting demand into implants. Until then, the lower multiple alone does not remove execution risk.

INSP’s Scores Point to a HoldThe bottom line is that margin improvement, liquidity and a large addressable market support holding INSP, while reimbursement uncertainty limits the case for buying aggressively now.

The stock currently carries a Zacks Rank #3 (Hold). Its Growth Score of B and VGM Score of B recognize favorable growth characteristics, while its Value Score of C and Momentum Score of C indicate a more balanced setup. The scores support waiting for clearer operating momentum before taking a stronger view. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Inspire Medical's Q2 revenues fell 7.6% to $200.6 million, while adjusted EPS dropped to 14 cents.U.S. sales fell 9.6% on coding and reimbursement issues, partly offset by 33.6% international growth.Inspire Medical raised 2026 revenue guidance to $835M-$875M and adjusted EPS to $1.05-$1.45. Inspire Medical Systems, Inc. (INSP - Free Report) reported second-quarter 2026 adjusted earnings per share (EPS) of 14 cents, down 58.8% year over year. The figure beat the Zacks Consensus Estimate of a loss of 22 cents by 163.6%.

GAAP EPS in the quarter was 1 cent compared to GAAP loss per share of 12 cents in the year-ago quarter.

INSP’s Q2 Revenues in DetailInspire Medical registered revenues of $200.6 million in the second quarter, down 7.6% year over year. The figure beat the Zacks Consensus Estimate by 2.9%.

Shares of INSP were up 10.3% during after-market trading following the second-quarter results. The stock has declined 43.4% in the year-to-date period compared with the industry’s 8.3% fall. However, the S&P 500 Index has gained 11.4% in the same period.

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The decline in sales was primarily caused by a decrease in U.S. revenues due to coding and reimbursement challenges. This was partly offset by an increase in international revenues.

As of June 30, 2026, INSP operated 280 U.S. sales territories and employed 301 field clinical representatives compared with 295 territories and 275 representatives at the end of 2025.

INSP’s Q2 Revenue Mix Reflects U.S. PressureIn the quarter under review, U.S. revenues totaled $187.3 million, down 9.6% year over year. Management attributed the weakness primarily to the evolving coding and reimbursement environment, which slowed prior-authorization activity and procedure volumes.

International revenues totaled $13.3 million, up 33.6% year over year. The overseas gain partly offset the domestic decline, but the United States remained the dominant contributor to quarterly sales.

INSP’s Margin AnalysisIn the second quarter, Inspire Medical’s gross profit decreased 6% year over year to $171.5 million. The gross margin expanded 150 basis points (bps) to 85.5%, primarily driven by a higher sales mix of the Inspire V system.

Selling, general and administrative expenses decreased 7.7% year over year to $147.3 million. Research and development expenses declined 5.8% to $24.7 million. Operating expenses of $171.9 million decreased 7.4% year over year.

Adjusted operating profit decreased 66.8% year over year to $3.2 million. The adjusted operating margin contracted 280 bps to 1.6%.

Inspire Medical’s Financial PositionInspire Medical exited the second quarter of 2026 with cash and cash equivalents and short-term investments of $320.7 million compared with $399.7 million at the end of first-quarter 2026.

Cumulative net cash provided by operating activities at the end of second-quarter 2026 was $36.1 million, compared with the cumulative net cash used in operating activities of $4 million a year ago.

Inspire Medical Raises 2026 OutlookInspire Medical has updated its revenue and EPS outlook for 2026.

The company raised its revenue guidance to $835 million-$875 million from the previously projected $825 million-$875 million. The Zacks Consensus Estimate is pegged at $844.2 million.

INSP now expects adjusted EPS for 2026 in the range of $1.05-$1.45, up from the prior guidance of $0.75-$1.25. The company projects an adjusted operating margin of 4-6%. The Zacks Consensus Estimate is pegged at 93 cents.

Wrapping UpInspire Medical exited the second quarter of 2026 with better-than-expected results. Although revenues declined year over year, disciplined spending, an improved product mix and gross margin expansion supported profitability.

The higher sales mix of Inspire V remained a key positive, helping gross margin expand despite lower revenues. However, coding and reimbursement disruption continued to weigh on U.S. procedure volumes. Management stated that these challenges, including the WISeR program, reduced second-quarter revenues by approximately $40 million.

The previously announced C-codes are now in place and have been incorporated into WISeR across the six applicable states. Management expects the adverse impact from reimbursement-related issues to ease sequentially during the third and fourth quarters.

The launch of Project Horizon is a notable development in this quarter. The initiative is expected to create approximately $30 million of annualized investment capacity through organizational streamlining and supply-chain optimization. Inspire Medical plans to redeploy these funds toward patient access, education and engagement programs aimed at supporting revenue growth.

Looking ahead, the company remains focused on restoring procedure momentum and accelerating growth beyond 2026. Inspire Medical also submitted a revised application for a new Category I CPT code, which is scheduled for review in September. If approved, the code could take effect on Jan. 1, 2028. These efforts should help improve procedure momentum and support a return to stronger growth beyond 2026.

INSP’s Zacks Rank & Key PicksInspire Medical currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are West Pharmaceutical (WST - Free Report) , McKesson (MCK - Free Report) and Cardinal Health (CAH - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

West Pharmaceutical reported second-quarter 2026 adjusted earnings per share (EPS) of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.

West Pharmaceutical has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.4%.

McKesson reported a fourth-quarter fiscal 2026 adjusted EPS of $11.69, which beat the Zacks Consensus Estimate by 1.1%. Revenues of $96.3 billion missed the Zacks Consensus Estimate by 5.5%.

McKesson has an estimated long-term earnings growth rate of 13.7%. MCK’s earnings surpassed estimates in the trailing four quarters, the average surprise being 3.1%.

Cardinal Health reported a third-quarter fiscal 2026 adjusted EPS of $3.17, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $60.94 billion missed the Zacks Consensus Estimate by 2.3%.

Cardinal Health has an estimated long-term earnings growth rate of 17%. CAH’s earnings surpassed estimates in the trailing four quarters, the average surprise being 10.3%.

Inspire Medical Systems, Inc. (INSP) Q2 2026 Earnings Call August 3, 2026 5:00 PM EDT

Company Participants

Ezgi Yagci - Vice President of Investor Relations
Timothy Herbert - Founder, Chairman, CEO & President
Matthew Osberg - Executive VP & CFO

Conference Call Participants

Jonathan Block - Stifel, Nicolaus & Company, Incorporated, Research Division
Adam Maeder - Piper Sandler & Co., Research Division
Robert Marcus - JPMorgan Chase & Co, Research Division
Anthony Petrone - Mizuho Securities USA LLC, Research Division
Larry Biegelsen - Wells Fargo Securities, LLC, Research Division
Travis Steed - BofA Securities, Research Division
Richard Newitter - Truist Securities, Inc., Research Division
Michael Polark - Wolfe Research, LLC
David Rescott - Robert W. Baird & Co. Incorporated, Research Division
Michael Sarcone - Jefferies LLC, Research Division
Brett Fishbin - KeyBanc Capital Markets Inc., Research Division
Daniel Markowitz - Evercore ISI Institutional Equities, Research Division
Keith Hinton
Michael Kratky - Leerink Partners LLC, Research Division

Presentation

Operator

Good afternoon. My name is Dilem, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Inspire Medical Systems Second Quarter 2026 Conference Call. [Operator Instructions] I'll now hand the call over to your first speaker, Ezgi Yagci, the Vice President of Investor Relations at Inspire. You may begin the conference.

Ezgi Yagci
Vice President of Investor Relations

Thank you, Dilem, and thank you all for participating in today's call. Joining me are Tim Herbert, Chairman and Chief Executive Officer; and Matt Osberg, Chief Financial Officer.

Earlier today, we released financial results for the 3 months ended June 30, 2026. A copy of the press release is available on our website. On this call, management will make forward-looking statements within the meaning of the federal securities laws. All forward-looking statements, including, without limitation, those relating to our operations, financial results and financial condition, investments in our business, full year 2026 financial and operational outlook and changes in market access and

Inspire Medical Systems (INSP - Free Report) reported $200.58 million in revenue for the quarter ended June 2026, representing a year-over-year decline of 7.6%. EPS of $0.14 for the same period compares to $0.45 a year ago.

The reported revenue represents a surprise of +2.95% over the Zacks Consensus Estimate of $194.83 million. With the consensus EPS estimate being -$0.22, the EPS surprise was +163.64%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Inspire performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Total U.S. sales territories: 280 versus 291 estimated by two analysts on average.Geographic Revenue- All other countries: $13.28 million versus $11.15 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +33.6% change.Geographic Revenue- United States: $187.3 million versus $184.23 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -9.6% change.View all Key Company Metrics for Inspire here>>>

Shares of Inspire have returned +6.9% over the past month versus the Zacks S&P 500 composite's +0.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Generated second quarter revenue of $200.6 millionSecond quarter diluted EPS of $0.01; adjusted diluted EPS of $0.14Second quarter operating cash flow of $23.2 millionAnnounced strategic growth plan designed to unlock and redeploy $30 million for growth initiatives MINNEAPOLIS, Aug. 03, 2026 (GLOBE NEWSWIRE) -- Inspire Medical Systems, Inc. (NYSE: INSP) (Inspire, or the Company), a medical technology company focused on the development and commercialization of innovative, minimally invasive solutions for patients with obstructive sleep apnea, today reported financial results for the quarter ended June 30, 2026.

“Our second quarter results reflect the increased discipline and focus we are bringing to the business as we continue to support customers through the evolving coding and reimbursement environment and invest in the long-term adoption of Inspire therapy,” said Tim Herbert, Chairman and CEO of Inspire Medical Systems. “We are also announcing a strategic growth plan designed to generate approximately $30 million of annualized growth investment capacity, which we intend to redeploy into targeted growth initiatives. We believe these actions will strengthen our operating foundation, sharpen our focus on the highest-return opportunities, and position Inspire for sustainable growth and long-term value creation.”

Second Quarter 2026 Financial Results (Second Quarter 2026 compared to Second Quarter 2025)

Revenue decreased 7.6% to $200.6 million, primarily driven by a decline in U.S. revenue, partially offset by growth in International revenue. The U.S. decline was driven primarily by the impacts of evolving coding and reimbursement environment.Gross margin increased 150 bps to 85.5%, primarily due to increased sales mix of the Inspire V system, which has a higher gross margin than the Inspire IV system.Operating expenses decreased $13.8 million, or 7.4%, to $172.0 million, primarily driven by lower stock-based compensation costs due to accelerated stock-based compensation expenses recognized in the prior year period as well as lower marketing expenses.Operating earnings increased $2.8 million to an operating loss of $0.5 million, and operating margin of (0.3)%. Adjusted operating income was $3.2 million, and adjusted operating margin was 1.6%. Interest and dividend income, net decreased by $0.7 million, primarily due to lower average interest rates and lower average cash, cash equivalents, and investment balances.Other expense, net decreased by $3.4 million, primarily due to a $4.0 million impairment charge recognized in the prior year period, partially offset by a decrease in interest and dividend income in the current period due to lower average interest rates and lower average cash, cash equivalents, and investment balances in the current period.The effective tax rate was 89.9% compared to (54.0)%. The increase in the effective tax rate was primarily driven by tax shortfall related to stock-based compensation. For the three months ended June 30, 2025, the Company maintained a full valuation allowance against federal and state deferred tax assets, which was subsequently released at December 31, 2025.Net earnings was $0.3 million and adjusted net earnings was $4.0 million. Diluted EPS was $0.01 and adjusted diluted EPS was $0.14. Financial Condition

Net cash provided by operating activities for the three months ended June 30, 2026 was $23.2 million, compared to $2.7 million in the prior year period. The change was primarily driven by improved working capital, primarily in receivables and inventories.As of June 30, 2026, cash, cash equivalents, and investments increased $10.6 million to $415.2 million as compared to December 31, 2025. Full Year 2026 Guidance

The Company is raising its previously announced revenue outlook to be in the range of $835 million to $875 million. Additionally, the Company now expects annual adjusted operating margin to be in the range of 4% to 6%, diluted EPS to be in the range of $(0.42) to $0.17 and adjusted diluted EPS to be in the range of $1.05 to $1.45.

The Company’s outlook assumes an effective tax rate of approximately 95% to 100% and an adjusted effective tax rate of 30% to 35%, estimated weighted average diluted shares outstanding of approximately 29.4 million, and capital expenditures between $35 million to $40 million.

Strategic Growth Plan

On August 3, 2026, the Company announced a strategic growth plan, named Project Horizon, intended to create additional investment capacity to accelerate revenue growth through:

Aligning resources to revenue growth initiatives;Streamlining the organization; andOptimizing the Company’s supply chain by consolidating production to support quality, scale, and efficiency. The Company expects to incur a total of $20 million to $25 million of pre-tax restructuring charges in connection with the first phase of Project Horizon, including approximately $4 million to $5 million of employee-related costs, and $16 million to $20 million of other expenses, which will be non-cash in nature. These actions are expected to generate approximately $30 million of annualized growth investment capacity which is expected to be invested in revenue growth initiatives. The Company expects the majority of actions related to the restructuring to be completed in the third quarter and all actions to be substantially complete by the end of 2026.

Webcast and Conference Call

The Company's management will host a conference call after market close today, Monday, August 3, 2026, at 5:00 p.m. Eastern Time to discuss these results and answer questions.

To access the conference call, please preregister on https://register-conf.media-server.com/register/BI05401f2d26b24d47a1416936675b79be. Registrants will receive confirmation with dial-in details.

A live webcast of the event can be accessed on https://edge.media-server.com/mmc/p/qu4ekmuy/. A replay of the webcast will be available on https://investors.inspiresleep.com starting approximately two hours after the event and archived on the site for two weeks.

About Inspire Medical Systems

Inspire Medical Systems is a medical technology company focused on the development and commercialization of innovative, minimally invasive solutions for patients with obstructive sleep apnea. Inspire’s proprietary Inspire therapy is the first FDA, EU MDR, and PDMA-approved neurostimulation technology that provides a safe and effective treatment for moderate to severe obstructive sleep apnea.

For additional information about Inspire, please visit www.inspiresleep.com.

Use of Non-GAAP Financial Measures

This press release includes non-GAAP financial measures, including without limitation, adjusted operating income, adjusted operating margin, adjusted earnings before income taxes, adjusted income tax expense, adjusted effective tax rate, adjusted net earnings, adjusted net earnings per diluted share ("EPS"), adjusted EBITDA, and adjusted EBITDA margin, which differ from financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”).

We define adjusted operating income as operating income or loss adjusted for items that are not indicative of our ongoing operations. Operating income is the most directly comparable GAAP financial measure to adjusted operating income. We define adjusted operating margin in this release as adjusted operating income divided by revenue. Operating margin is the most directly comparable GAAP financial measure to adjusted operating margin. Adjusted earnings before income taxes is defined as earnings before income taxes, adjusted for items that are not indicative of our ongoing operations. Earnings before income taxes is the most directly comparable GAAP financial measure. Adjusted income tax expense is defined as income tax expense, adjusted for items that are not indicative of our ongoing operations. Adjusted effective tax rate is adjusted income tax expense divided by adjusted earnings before income taxes. Income tax expense is the most directly comparable GAAP financial measure. Adjusted net earnings is defined as net earnings or loss, adjusted for items that are not indicative of our ongoing operations. Net earnings or loss is the most directly comparable GAAP financial measure to adjusted net earnings. Adjusted net earnings per diluted share is calculated as adjusted net earnings divided by the diluted weighted average shares outstanding. Net earnings or loss per diluted share is the most directly comparable GAAP financial measure to adjusted net earnings per diluted share. We define adjusted EBITDA as net earnings or loss, less interest and dividend income, net, plus income tax expense, plus depreciation and amortization, plus stock-based compensation expense, adjusted for items that are not indicative of our ongoing operations. Net earnings or loss is the most directly comparable GAAP financial measure to adjusted EBITDA. We define adjusted EBITDA margin in this release as adjusted EBITDA divided by revenue. Net earnings or loss margin is the most directly comparable GAAP measure to adjusted EBITDA margin. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures are included in this press release.

These non-GAAP financial measures are presented because we believe they are useful indicators of our operating performance and facilitate a more meaningful trend analysis without the distortion of various adjustment items. Management uses these measures principally as measures of our underlying operating performance, trends, and for planning purposes, including the preparation of our annual operating plan and financial projections. We believe these measures are useful to investors as supplemental information and because they are frequently used by analysts, investors, and other interested parties to evaluate companies in our industry. We also believe these non-GAAP financial measures are useful to our management and investors as a measure of comparative operating performance from period to period.

These non-GAAP financial measures should not be considered as an alternative to, or superior to, the most directly comparable GAAP financial measures, as measures of financial performance or cash flows from operations, as a measure of liquidity, or any other performance measure derived in accordance with GAAP, and they should not be construed to imply that our future results will be unaffected by unusual or non-recurring items. In addition, Adjusted EBITDA is not intended to be a measure of cash flow for management’s discretionary use, as it does not reflect certain cash requirements such as tax payments, capital expenditures, and certain other cash costs that may recur in the future. Adjusted EBITDA contains certain other limitations, including the failure to reflect our cash expenditures, cash requirements for working capital needs, and cash costs to replace assets being depreciated and amortized. In evaluating our non-GAAP financial measures, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of non-GAAP financial measures should not be construed to imply that our future results will be unaffected by any such adjustments. Management compensates for these limitations by primarily relying on our GAAP results in addition to using non-GAAP financial measures on a supplemental basis. These measures and their definitions are discussed in more detail below and our definition of these non-GAAP financial measures is not necessarily comparable to other similarly titled captions of other companies due to different methods of calculation.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts are forward-looking statements, including, without limitation, statements regarding estimated financial and non-financial impacts from our strategic growth plan (including without limitation the expectations for pre-tax charges in connection with the growth plan, annual growth investment capacity, the extent and manner of the use of investments in revenue growth initiatives as well as the time to complete the strategic growth plan) and potential impacts to our business (including potential actions and solutions as well as timing of these impacts) associated with coding and reimbursement, and our expectations regarding our full year 2026 financial outlook (including without limitation expectations for the impacts of coding and reimbursement, revenue, expected growth, adjusted operating margin, net earnings or loss per diluted share, adjusted net earnings per diluted share, effective tax rate, adjusted effective tax rate, weighted average diluted shares outstanding and capital expenditures). In some cases, you can identify forward-looking statements by terms such as ‘‘may,’’ ‘‘will,’’ ‘‘should,’’ ‘‘expect,’’ ‘‘plan,’’ ‘‘anticipate,’’ ‘‘could,’’ “future,” “outlook,” “guidance,” ‘‘intend,’’ ‘‘target,’’ ‘‘project,’’ ‘‘contemplate,’’ ‘‘believe,’’ ‘‘estimate,’’ ‘‘predict,’’ ‘‘potential,’’ ‘‘continue,’’ or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words.

These forward-looking statements are based on management’s current expectations and involve known and unknown risks and uncertainties that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others: our dependency on our Inspire system for revenues; fluctuations in our financial results and the market price of our common stock; our ability to sustain or increase our profitability and our history of operating losses; commercial success and market acceptance of our Inspire therapy; our ability to achieve and maintain adequate and clear levels of coverage or reimbursement for our Inspire system or any future products we may seek to commercialize; competitive companies, technologies, and pharmaceuticals in our industry; our ability to expand our indications and develop and commercialize additional products and enhancements to our Inspire system; our ability to forecast demand and manage our inventory; our dependence on third-parties; risks related to consolidation in the healthcare industry; our ability to expand, manage, and maintain our direct sales and marketing organization, and to market and sell our Inspire system in markets outside of the United States; our ability to manage our growth; risks related to product liability claims and warranty claims; our ability to address quality issues that may arise with our Inspire system; any failure of key information technology systems, processes, or sites or damage to or inability to access our physical facilities; any violations of anti-bribery, anti-corruption, and anti-money laundering laws; future needs for additional financing; risks related to our tax assets and changes in tax laws; our ability to timely commercialize or obtain regulatory approvals or certifications for our Inspire therapy and system; U.S. Food and Drug Administration (FDA) or other United States or foreign regulatory actions affecting us or the healthcare industry generally; our ability to establish and maintain intellectual property protection for our Inspire therapy and system or avoid claims of infringement; and our strategic growth plan may not achieve our intended outcome.

Other important factors that could cause actual results, performance or achievements to differ materially from those contemplated in this press release can be found under the captions “Risk Factors” and "Management's Discussion and Analysis of Financial Condition and Results of Operations“ in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and as such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov and the Investors page of our website at www.inspiresleep.com. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, unless required by applicable law, we disclaim any obligation to do so, even if subsequent events cause our views to change. Thus, one should not assume that our silence over time means that actual events are bearing out as expressed or implied in such forward-looking statements. These forward-looking statements should not be relied upon as representing our views as of any date after the date of this press release.

Investor & Media Contact
Ezgi Yagci
Vice President, Investor Relations
[email protected]
617-549-2443

 Inspire Medical Systems, Inc.
Consolidated Statements of Operations (unaudited)
(in thousands, except share and per share amounts)
       Three Months Ended Six Months Ended  June 30, June 30,  2026
 2025
 2026
 2025
Revenue $200,581  $217,086  $405,164  $418,403 Cost of goods sold  29,122   34,672   56,793   65,381 Gross profit  171,459   182,414   348,371   353,022 Operating expenses:        Research and development  24,698   26,209   50,524   54,012 Selling, general and administrative  147,275   159,521   299,479   303,811 Total operating expenses  171,973   185,730   350,003   357,823 Operating (loss)  (514)  (3,316)  (1,632)  (4,801)Interest and dividend (income), net  (3,739)  (4,482)  (7,480)  (9,548)Other expense, net  110   3,498   336   2920 Earnings (loss) before income taxes  3,115   (2,332)  5,512   1,827 Income tax expense  2,801   1,260   16,492   2,427 Net earnings (loss) $314  $(3,592) $(10,980) $(600)Basic earnings (loss) per share $0.01  $(0.12) $(0.38) $(0.02)Diluted earnings (loss) per share $0.01  $(0.12) $(0.38) $(0.02)Weighted average shares outstanding:        Basic  28,835,058   29,506,807   28,768,163   29,604,043 Diluted  28,940,846   29,506,807   28,768,163   29,604,043                    Inspire Medical Systems, Inc.
Consolidated Balance Sheets (unaudited)
(in thousands, except share and per share amounts)
       June 30,
2026 December 31, 2025Assets    Current assets:    Cash and cash equivalents $127,761  $104,813 Investments, short-term  192,923   203,455 Accounts receivable, net of allowance for credit losses of $997 and $1,080, respectively  103,340   119,692 Inventories, net  170,451   145,293 Prepaid expenses and other current assets  14,199   10,399 Total current assets  608,674   583,652 Investments, long-term  94,480   96,330 Property and equipment, net  104,330   97,872 Operating lease right-of-use assets  22,599   23,532 Deferred tax assets  77,582   88,667 Other non-current assets  18,328   17,264 Total assets $925,993  $907,317 Liabilities and stockholders' equity    Current liabilities:    Accounts payable $27,102  $36,565 Accrued expenses  44,080   59,490 Total current liabilities  71,182   96,055 Operating lease liabilities, non-current portion  29,093   29,998 Other non-current liabilities  136   104 Total liabilities  100,411   126,157 Stockholders' equity:    Preferred Stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding  —   — Common Stock, $0.001 par value; 200,000,000 shares authorized; 28,907,221 and 28,579,015 issued and outstanding at June 30, 2026 and December 31, 2025, respectively  29   29 Additional paid-in capital  983,670   927,159 Accumulated other comprehensive (loss) income  (645)  464 Accumulated deficit  (157,472)  (146,492)Total stockholders' equity  825,582   781,160 Total liabilities and stockholders' equity $925,993  $907,317            Inspire Medical Systems, Inc.
GAAP to Non-GAAP Reconciliations (unaudited)
(in thousands, except per share amounts)
     Three Months Ended June 30, 2026
  Gross Profit
 Operating Expenses Operating (Loss) Income Operating Margin Other (Income) Earnings Before Income Taxes
 Income Tax Expense Effective Tax Rate Net Earnings
 Diluted EPS
Reported $171,459  $171,973  $(514) (0.3)% $(3,629) $3,115  $2,801  89.9% $314  $0.01 Non-GAAP adjustments:                        Legal fees1  —   (3,697)  3,697  1.9%  —   3,697   1,296     2,401   0.09 Tax impact of stock-based compensation2  —   —   —  —%  —   —   (1,288)    1,288   0.04 Adjusted $171,459  $168,276  $3,183  1.6% $(3,629) $6,812  $2,809  41.2% $4,003  $0.14    Three Months Ended June 30, 2025  Gross Profit
 Operating Expenses Operating (Loss) Income Operating Margin Other (Income) (Loss) Earnings Before Income Taxes Income Tax Expense
 Effective Tax Rate Net (Loss) Earnings Diluted EPSReported $182,414  $185,730  $(3,316) (1.5)% $(984) $(2,332) $1,260  (54.0)% $(3,592) $(0.12)Non-GAAP adjustments:                      Stock-based compensation expense3  —   (11,155)  11,155  5.1%  —   11,155   2,770     8,385   0.28 Legal fees1  —   (1,736)  1,736  0.8%  —   1,736   431     1,305   0.04 Asset impairment charge4  —   —   —  —%  (4,046)  4,046   —     4,046   0.14 Adjusted $182,414  $172,839  $9,575  4.4% $(5,030) $14,605  $4,461  30.5% $10,144  $0.34                                         1 These costs represent legal-related expenses related to (a) a civil investigative demand from the Department of Justice, (b) a patent infringement suit that we filed against Nyxoah S.A. and its wholly-owned subsidiary, Nyxoah, Inc. ("Nyxoah"), and (c) a patent infringement suit brought against us by Nyxoah.
2 The accounting standards codification guidance governing employee stock-based compensation requires that any excess or deficient tax deduction for stock-based compensation be immediately recorded within income tax expense. Employee stock-based compensation activity, including the exercise of stock options, can be unpredictable and can significantly impact our net earnings, net earnings per diluted share, and effective tax rate. These amounts represent the discrete tax expense recorded as excess tax expense for stock-based compensation.
3 Represents accelerated stock-based compensation expense for certain employees who were retirement eligible in accordance with the implementation of changes to the treatment of equity awards under the Inspire Medical Systems, Inc. 2018 Incentive Award Plan upon the holder's death, disability, or retirement.
4 Represents a non-cash impairment of a strategic investment.

 Inspire Medical Systems, Inc.
GAAP to Non-GAAP Reconciliations (unaudited)
(in thousands, except per share amounts)
     Six Months Ended June 30, 2026  Gross Profit
 Operating Expenses Operating (Loss) Income Operating Margin Other (Income) Earnings Before Income Taxes
 Income Tax Expense Effective Tax Rate Net (Loss) Earnings Diluted EPSReported $348,371  $350,003  $(1,632) (0.4)% $(7,144) $5,512  $16,492  299.2% $(10,980) $(0.38)Non-GAAP adjustments:                      Legal fees1  —   (5,133)  5,133  1.3%  —   5,133   1,676     3,457   0.12 Tax impact of stock-based compensation2  —   —   —  —%  —   —   (14,375)    14,375   0.50 Adjusted $348,371  $344,870  $3,501  0.9% $(7,144) $10,645  $3,793  35.6% $6,852  $0.24    Six Months Ended June 30, 2025  Gross Profit
 Operating Expenses Operating (Loss) Income Operating Margin Other (Income) Earnings Before Income Taxes
 Income Tax Expense
 Effective Tax Rate Net (Loss) Earnings Diluted EPSReported $353,022  $357,823  $(4,801) (1.1)% $(6,628) $1,827  $2,427  132.8% $(600) $(0.02)Non-GAAP adjustments:                       Stock-based compensation expense3  —   (11,155)  11,155  2.6%  —   11,155   2,770     8,385   0.28 Legal fees1  —   (1,736)  1,736  0.4%  —   1,736   431     1,305   0.04 Asset impairment charge4  —   —   —  —%  (4,046)  4,046   —     4,046   0.14 Adjusted $353,022  $344,932  $8,090  1.9% $(10,674) $18,764  $5,628  30.0% $13,136  $0.44                          1 These costs represent legal-related expenses related to (a) a civil investigative demand from the Department of Justice, (b) a patent infringement suit that we filed against Nyxoah S.A. and its wholly-owned subsidiary, Nyxoah, Inc. ("Nyxoah"), and (c) a patent infringement suit brought against us by Nyxoah.
2 The accounting standards codification guidance governing employee stock-based compensation requires that any excess or deficient tax deduction for stock-based compensation be immediately recorded within income tax expense. Employee stock-based compensation activity, including the exercise of stock options, can be unpredictable and can significantly impact our net earnings, net earnings per diluted share, and effective tax rate. These amounts represent the discrete tax expense recorded as excess tax expense for stock-based compensation.
3 Represents accelerated stock-based compensation expense for certain employees who were retirement eligible in accordance with the implementation of changes to the treatment of equity awards under the Inspire Medical Systems, Inc. 2018 Incentive Award Plan upon the holder's death, disability, or retirement.
4 Represents a non-cash impairment of a strategic investment.

 Reconciliation of GAAP Net Earnings (Loss) to Non-GAAP Adjusted EBITDA
       Three Months Ended Six Months Ended  June 30, June 30,  2026
 2025
 2026
 2025
Net earnings (loss) $314  $(3,592) $(10,980) $(600)Interest and dividend income, net  (3,739)  (4,482)  (7,480)  (9,548)Income tax expense  2,801   1,260   16,492   2,427 Depreciation and amortization  4,597   3,414   9,707   6,458 EBITDA  3,973   (3,400)  7,739   (1,263)Stock-based compensation expense1  31,226   41,724   61,915   72,780 Legal fees2  3,697   1,736   5,133   1,736 Asset impairment charge3  —   4,046   —   4,046 Adjusted EBITDA $38,896  $44,106  $74,787  $77,299                   1 Total stock-based compensation expense.
2 These costs represent legal-related expenses related to (a) a civil investigative demand from the Department of Justice, (b) a patent infringement suit that we filed against Nyxoah S.A. and its wholly-owned subsidiary, Nyxoah, Inc. ("Nyxoah"), and (c) a patent infringement suit brought against us by Nyxoah.
3 Represents a non-cash impairment of a strategic investment.

 Reconciliation of GAAP Net Earnings (Loss) Margin and Non-GAAP Adjusted EBITDA Margin
       Three Months Ended Six Months Ended  June 30, June 30,  2026
 2025
 2026
 2025
Net earnings (loss) margin1 0.2% (1.7)% (2.7)% (0.1)%Interest and dividend income, net (1.9)% (2.1)% (1.8)% (2.3)%Income tax expense 1.4% 0.6% 4.1% 0.6%Depreciation and amortization 2.3% 1.6% 2.4% 1.5%Stock-based compensation expense2 15.6% 19.2% 15.2% 17.4%Legal fees3 1.8% 0.8% 1.3% 0.4%Asset impairment charge4 —% 1.9% —% 1.0%Adjusted EBITDA margin 19.4% 20.3% 18.5% 18.5%              1 Net earnings (loss) margin is calculated as net earnings (loss) divided by total revenue.
2 Total stock-based compensation expense.
3 These costs represent legal-related expenses related to (a) a civil investigative demand from the Department of Justice, (b) a patent infringement suit that we filed against Nyxoah S.A. and its wholly-owned subsidiary, Nyxoah, Inc. ("Nyxoah"), and (c) a patent infringement suit brought against us by Nyxoah.
4 Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by total revenue.

 Full Year 2026 OutlookReconciliation of Full Year 2026 Outlook of Estimated Net Earnings per Diluted Share
to Adjusted Net Earnings per Diluted Share

        Outlook Full Year 2026
 Tax Rate Outlook Full Year 2026  Low Range High Range
 Low Range High RangeNet earnings per diluted share $(0.42) $0.17  95.0% 100.0%Legal fees1  0.25   0.23     Restructuring charges2  0.64   0.51     Tax impact of stock-based compensation3  0.58   0.54     Adjusted net earnings per diluted share $1.05  $1.45  30.0% 35.0%                1 These costs represent legal-related expenses related to (a) a civil investigative demand from the Department of Justice, (b) a patent infringement suit that we filed against Nyxoah S.A. and its wholly-owned subsidiary, Nyxoah, Inc. ("Nyxoah"), and (c) a patent infringement suit brought against us by Nyxoah.
2 Restructuring costs related to Project Horizon.
3 Represents the estimated tax impact of permanent differences that arise between the expense recognized for financial reporting of stock-based compensation awards and the tax deduction the Company receives (tax windfall or shortfall). Accounting standards codification guidance requires that any excess or deficient tax deduction for stock-based compensation be immediately recorded within income tax expense. These amounts represent the estimated discrete tax impact for stock-based compensation during the period presented.

MINNEAPOLIS, July 27, 2026 (GLOBE NEWSWIRE) -- Inspire Medical Systems, Inc. (NYSE: INSP), a medical technology company focused on innovative, minimally invasive solutions for patients with obstructive sleep apnea (OSA), today announced the appointment of seasoned medical device executive Michael H. Carrel to its Board of Directors effective July 20.

July 22, 2026 08:00 ET  | Source: Inspire Medical Systems

MINNEAPOLIS, July 22, 2026 (GLOBE NEWSWIRE) -- Inspire Medical Systems, Inc. (NYSE: INSP), a medical technology company focused on innovative, minimally invasive solutions for patients with obstructive sleep apnea (OSA), today announced the retirement of Casey M. Tansey from the Inspire Board after more than eighteen years of service, effective July 30.

“We are thankful for the many contributions Mr. Tansey has made to our Board of Directors over the past eighteen years,” said Tim Herbert, Chairman and Chief Executive Officer of Inspire Medical Systems. “As one of the first venture investors to recognize the potential impact of Inspire therapy for patients with OSA, Mr. Tansey has provided valuable mentorship, leadership, and perspective throughout the Company’s founding, initial public offering and subsequent growth. We are grateful for his long-standing commitment and wish Mr. Tansey the very best in the future.”

Mr. Tansey represented U.S. Venture Partners, led Inspire’s Series A financing in November 2007 and has served on the Inspire Board of Directors since that time. The Company expects to announce the appointment of a new Director to replace Mr. Tansey in the near future.

About Inspire Medical Systems
Inspire is a medical technology company focused on the development and commercialization of innovative, minimally invasive solutions for patients with obstructive sleep apnea. Inspire’s proprietary Inspire therapy is the first FDA-, EU MDR- and PDMA-approved neurostimulation technology that provides a safe and effective treatment for moderate to severe obstructive sleep apnea.

For additional information about Inspire, please visit www.inspiresleep.com.

Investor and Media Contact
Ezgi Yagci
Vice President, Investor Relations
[email protected]
617-549-2443

Inspire Medical Investigation Continued: Kahn Swick and Foti, LLC Continues to Investigate the Officers and Directors of Inspire Medical Systems,

July 06, 2026 09:48 ET  | Source: Inspire Medical Systems

MINNEAPOLIS, July 06, 2026 (GLOBE NEWSWIRE) -- This press release corrects the earnings release date included in the earlier version issued on July 6, 2026. No other information has changed.

Inspire Medical Systems, Inc. (NYSE: INSP) (Inspire) will release financial results for the second quarter 2026 after the close of trading on Monday, August 3. Inspire’s management team will host a corresponding conference call beginning at 5:00 p.m. Eastern Time to discuss the financial results and recent business developments.

A webcast of the call will be accessible via the Investor Relations page of the Inspire website or through this link: Inspire's Q2 2026 earnings call webcast. For those not planning to ask a question of management, the Company recommends listening via the webcast.

If you plan to ask a question, please use the following link: Inspire's Q2 2026 earnings call. After registering, an email will be sent, including dial-in details and a unique conference call access code required to join the live call. To ensure you are connected prior to the beginning of the call, the Company suggests registering a minimum of 10 minutes before the start of the call. 

Following the call, a replay will be available on the Company's Investor Relations website approximately two hours after the event and archived on the site for two weeks.

About Inspire Medical Systems
Inspire is a medical technology company focused on the development and commercialization of innovative, minimally invasive solutions for patients with obstructive sleep apnea. Inspire’s proprietary Inspire therapy is the first FDA, EU MDR, and PDMA-approved neurostimulation technology that provides a safe and effective treatment for moderate to severe obstructive sleep apnea.

For additional information about Inspire, please visit www.inspiresleep.com.

Investor and Media Contact
Ezgi Yagci
Vice President, Investor Relations
[email protected]
617-549-2443

NEW YORK & NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF continues its investigation into Inspire Medical Systems, Inc. (NYSE: INSP). In August of 2025, contrary to the Company's repeated assurances that it had met all regulatory, technical, and commercial prerequisites for the launch of its Inspire V device, the Company disclosed that the launch faced an "elonga.

Key Takeaways Inspire Medical presented new SLEEP 2026 data supporting its therapy in obstructive sleep apnea.Inspire V cut implant time of 20.4%, reduced mean AHI to 8.4 and showed 5.9 hours of nightly use.ADHERE registry data showed a 62% median AHI reduction and strong long-term adherence. Inspire Medical Systems (INSP - Free Report) recently showcased new clinical data, technology advancements and cardiovascular outcomes research at SLEEP 2026, the annual meeting of the Associated Professional Sleep Societies. A major focus of the company’s presence was the growing body of evidence supporting Inspire therapy in obstructive sleep apnea (OSA).

INSP showcased its next-generation Inspire V system, advances in closed-loop hypoglossal nerve stimulation (HNS) therapy, the Inspire SleepSync remote patient management platform and resources designed to establish and expand Inspire programs.

Per management, the company’s participation at SLEEP 2026 highlights the continued evolution of the Inspire platform, including the Inspire V system and new clinical data demonstrating real-world effectiveness. INSP’s long-standing association with the conference reflects its commitment to advancing physician education and improving outcomes for patients with OSA worldwide.

Likely Trend of INSP Stock Following the NewsShares of INSP have gained 2.9% since the announcement on Tuesday. In the year-to-date period, shares of the company have declined 53.8% compared with the industry’s 17.3% fall. However, the S&P 500 has risen 9.7% in the same timeframe.

The latest data presentation and publication of the PREDICTOR study are likely to strengthen Inspire Medical’s position in the growing sleep apnea treatment market. Positive clinical outcomes, high patient adherence and studies showing lower rates of several cardiovascular events may support physician confidence and patient adoption of Inspire therapy. The PREDICTOR study could further expand patient access and reduce diagnostic barriers, supporting future adoption and market growth.

INSP currently has a market capitalization of $1.23 billion.

Image Source: Zacks Investment Research

More on the Latest Clinical FindingsResearch highlighted at the event included a secondary analysis of the STAR trial, which demonstrated significant reductions in hypoxic burden, a physiologic measure of oxygen desaturation linked to OSA risk. The analysis showed improvements in daytime sleepiness that correlated with reductions in hypoxic burden, even among 50% apnea-hypopnea index (AHI) non-responders.

The company highlighted another study comparing HNS and CPAP therapy in matched groups of 3,525 patients each using the TriNetX database. The study demonstrated significantly lower rates of several cardiovascular and respiratory complications. Lower odds were observed for stroke, myocardial infarction, atrial fibrillation/flutter, hypertensive crisis, pulmonary embolism, ventricular tachycardia, COPD exacerbation, acute kidney injury, hospitalization, acute heart failure and others, compared with CPAP therapy.

The company also announced the publication of the PREDICTOR study, which identified body mass index and neck circumference as predictors of complete concentric collapse. These findings suggest that some patients may be screened for Inspire eligibility without requiring drug-induced sleep endoscopy.

Clinical data presented at SLEEP 2026 further demonstrated the effectiveness of Inspire therapy. Final results from a study of the Inspire V system showed a 20.4% reduction in implant time, improved respiratory sensing performance, a reduction in mean AHI from 34.4 to 8.4 events per hour and average nightly usage of 5.9 hours.

Data from the ADHERE registry, which followed 5,000 patients across the United States and Europe, showed a 62% median reduction in AHI, improvements in daytime sleepiness and strong long-term adherence. Additional real-world studies reported higher adherence rates and greater disease alleviation with Inspire therapy compared with CPAP, while late-breaking research suggested Inspire therapy may reduce major adverse cardiovascular event risk relative to both CPAP and untreated OSA.

Industry Prospects Favoring the MarketGoing by the data provided by Fortune Business Insights, the sleep apnea implants market is valued at $724.2 million in 2026 and is estimated to grow at a CAGR of 12.7% from 2026 to 2034.

Factors like the increasing prevalence of obstructive sleep apnea and central sleep apnea are boosting the market growth.

Other NewsIn May, Inspire Medical announced its first-quarter 2026 results. The company delivered modest top-line growth, margin expansion and improved operating cash flow, highlighting disciplined cost management and a favorable product mix shift toward Inspire V. However, reimbursement-related disruptions and the WISeR program continue to pressure procedure volumes, prompting a reduction in full-year guidance. Management expects these headwinds to ease over time, supporting sequential improvement through 2026 and positioning the company for renewed growth in 2027.

INSP’s Zacks Rank & Key PicksCurrently, INSP has a Zacks Rank #4 (Sell).

Some better-ranked stocks from the broader medical space are West Pharmaceutical (WST - Free Report) , Globus Medical (GMED - Free Report) and Biodesix (BDSX - Free Report) .

West Pharmaceutical, sporting a Zacks Rank #1 (Strong Buy) at present, reported first-quarter 2026 earnings per share (EPS) of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.

West Pharmaceutical has an estimated long-term earnings growth rate of 13.9%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 19.4%.

Globus Medical, currently carrying a Zacks Rank #2 (Buy), reported first-quarter 2026 adjusted EPS of $1.12, which surpassed the Zacks Consensus Estimate by 22.1%. Revenues of $759.9 million beat the Zacks Consensus Estimate by 4.0%.

Globus Medical has an estimated long-term earnings growth rate of 10.2%. GMED’s earnings beat estimates in the trailing four quarters, the average surprise being 26.3%.

Biodesix, currently carrying a Zacks Rank of 2, reported a first-quarter 2026 adjusted loss per share of 81 cents, which was 35.71% narrower than the Zacks Consensus Estimate. Revenues of $26 million beat the Zacks Consensus Estimate by 12.3%.

BDSX has an estimated earnings growth rate of 37.3% for 2026. The company beat earnings estimates in three of the trailing four quarters and missed once, the average surprise being 25.6%.

Investors might want to bet on Inspire Medical Systems (INSP - Free Report) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.

Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.

Therefore, the Zacks rating upgrade for Inspire basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.

For Inspire, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for InspireFor the fiscal year ending December 2026, this maker of devices for treating obstructive sleep apnea is expected to earn $1.91 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Inspire. Over the past three months, the Zacks Consensus Estimate for the company has increased 11.7%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Inspire to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

April 06, 2026 08:00 ET  | Source: Inspire Medical Systems

MINNEAPOLIS, April 06, 2026 (GLOBE NEWSWIRE) -- Inspire Medical Systems, Inc. (NYSE: INSP) (Inspire) will release financial results for the first quarter 2026 after the close of trading on Monday, May 4. Inspire’s management team will host a corresponding conference call beginning at 5:00 p.m. Eastern Time to discuss the financial results and recent business developments.

A webcast of the call will be accessible via the Investor Relations page of the Inspire website or through this link: Inspire's Q1 2026 earnings call webcast. For those not planning to ask a question of management, the Company recommends listening via the webcast.

If you plan to ask a question, please use the following link: Inspire's Q1 2026 earnings call. After registering, an email will be sent, including dial-in details and a unique conference call access code required to join the live call. To ensure you are connected prior to the beginning of the call, the Company suggests registering a minimum of 10 minutes before the start of the call. 

Following the call, a replay will be available on the Company's Investor Relations website approximately two hours after the event and archived on the site for two weeks.

About Inspire Medical Systems
Inspire is a medical technology company focused on the development and commercialization of innovative, minimally invasive solutions for patients with obstructive sleep apnea. Inspire’s proprietary Inspire therapy is the first FDA, EU MDR, and PDMA-approved neurostimulation technology that provides a safe and effective treatment for moderate to severe obstructive sleep apnea.

For additional information about Inspire, please visit www.inspiresleep.com.

Investor and Media Contact
Ezgi Yagci
Vice President, Investor Relations
[email protected]
617-549-2443

Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.

We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.

Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.

The Zacks Earnings ESP, ExplainedThe Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.

The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.

When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.

Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.

Should You Consider Inspire Medical Systems?The final step today is to look at a stock that meets our ESP qualifications. Inspire Medical Systems (INSP - Free Report) earns a #3 (Hold) 20 days from its next quarterly earnings release on May 4, 2026, and its Most Accurate Estimate comes in at -$0.19 a share.

By taking the percentage difference between the -$0.19 Most Accurate Estimate and the -$0.36 Zacks Consensus Estimate, Inspire Medical Systems has an Earnings ESP of +47.51%. Investors should also know that INSP is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

INSP is one of just a large database of Medical stocks with positive ESPs. Another solid-looking stock is Gilead Sciences (GILD - Free Report) .

Gilead Sciences is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on May 7, 2026. GILD's Most Accurate Estimate sits at $1.94 a share 23 days from its next earnings release.

Gilead Sciences' Earnings ESP figure currently stands at +3.47% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.87.

INSP and GILD's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.

Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>

Wall Street expects a year-over-year increase in earnings on higher revenues when Tempus AI (TEM - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 5. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis health care technology company is expected to post quarterly loss of $0.21 per share in its upcoming report, which represents a year-over-year change of +12.5%.

Revenues are expected to be $345.51 million, up 35.1% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 7.45% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Tempus?For Tempus, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +19.05%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Tempus will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Tempus would post a loss of$0.02 per share when it actually produced a loss of -$0.04, delivering a surprise of -100.00%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Tempus appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerInspire Medical Systems (INSP - Free Report) , another stock in the Zacks Medical Info Systems industry, is expected to report loss per share of $0.36 for the quarter ended March 2026. This estimate points to a year-over-year change of -460%. Revenues for the quarter are expected to be $198.74 million, down 1.3% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Inspire has been revised 18.4% down to the current level. Nevertheless, the company now has an Earnings ESP of +47.51%, reflecting a higher Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Inspire will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

MINNEAPOLIS, May 04, 2026 (GLOBE NEWSWIRE) -- Inspire Medical Systems, Inc. (NYSE: INSP) (Inspire, or the Company), a medical technology company focused on the development and commercialization of innovative, minimally invasive solutions for patients with obstructive sleep apnea, today reported financial results for the quarter ended March 31, 2026.

Inspire Medical Systems (INSP - Free Report) reported $204.58 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 1.6%. EPS of $0.10 for the same period compares to $0.10 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $198.74 million, representing a surprise of +2.94%. The company delivered an EPS surprise of +127.62%, with the consensus EPS estimate being -$0.36.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Inspire performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Total U.S. sales territories: 284 compared to the 301 average estimate based on two analysts.Geographic Revenue- All other countries: $8.98 million compared to the $9.65 million average estimate based on three analysts. The reported number represents a change of +16.5% year over year.Geographic Revenue- United States: $195.6 million compared to the $191.73 million average estimate based on three analysts. The reported number represents a change of +1% year over year.View all Key Company Metrics for Inspire here>>>

Shares of Inspire have returned +3.1% over the past month versus the Zacks S&P 500 composite's +10% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

Key Takeaways INSP posted Q1 EPS of 10 cents, beating estimates, with revenues up 1.6% y/y to $204.6M.Reimbursement issues and WISeR cut about $20M in revenues, delaying procedures and authorizations.INSP lowered 2026 revenue and EPS guidance, citing ongoing reimbursement disruptions. Inspire Medical Systems, Inc. (INSP - Free Report) delivered first-quarter 2026 adjusted earnings per share (EPS) of 10 cents, flat year over year. The figure beat the Zacks Consensus Estimate of a loss of 36 cents by 127.8%.

INSP’s Q1 Revenues in DetailInspire Medical registered revenues of $204.6 million in the first quarter, up 1.6% year over year. The figure beat the Zacks Consensus Estimate by 2.9%.

Per management, the revenue growth was primarily driven by increased market penetration, offset by the adverse effects of reimbursement disruption and the Wasteful and Inappropriate Service Reduction (WISeR) program.

As of March 31, 2026, INSP operated 284 U.S. sales territories and employed 288 field clinical representatives compared with 295 territories and 275 representatives at the end of 2025.

INSP’s Margin AnalysisIn the first quarter, Inspire Medical’s gross profit increased 3.7% year over year to $176.9 million. The gross margin expanded 180 basis points (bps) to 86.5%.

Selling, general and administrative expenses increased 5.5% year over year to $152.2 million. Research and development expenses decreased 7.1% year over year to $25.8 million. Operating expenses of $178 million increased 3.4% year over year.

Adjusted operating profit totaled $0.3 million, up from an adjusted operating loss of $1.5 million in the prior-year quarter.

Inspire Medical’s Financial PositionInspire Medical exited first-quarter 2026 with cash and cash equivalents and short-term investments of $399.7 million compared with $404.6 million at 2025-end.

Cumulative net cash provided by operating activities at the end of first-quarter 2026 was $12.8 million, against net cash used in operating activities of $6.7 million a year ago.

INSP Lowers 2026 OutlookInspire Medical has updated its revenue and EPS outlook for 2026.

The company has lowered its revenue guidance to $825 million-$875 million (representing a decline of 4-10% from 2025 levels) from the previously projected $950 million-$1 billion. The Zacks Consensus Estimate is pegged at $960.9 million.

INSP expects its adjusted EPS for 2026 to be in the band of $0.75-$1.25, down from prior guidance of $1.85-$2.35. The Zacks Consensus Estimate is pegged at $1.82.

Our Take on Inspire Medical’s Q1 ResultsInspire Medical exited the first quarter of 2026 with better-than-expected results. The company delivered modest top-line growth, margin expansion and improved operating cash flow, highlighting disciplined cost management and a favorable product mix shift toward Inspire V. Meanwhile, continued pressure from reimbursement-related disruptions is weighing on near-term visibility.

Insipre Medical’s shares fell 16.4% during after-hours trading yesterday, likely due to a lowered sales outlook for 2026. The company’s shares have lost 40.5% in the year-to-date period compared with the industry’s 19.1% decline. However, the S&P 500 Index has gained 6.5% in the same period.

Image Source: Zacks Investment Research

The adoption of Inspire V remains strong despite ongoing coding and reimbursement uncertainty. Progress was made during the quarter, particularly on the Medicare side, where the introduction of a C-code has improved clarity for facilities. However, the broader reimbursement landscape remains fragmented, especially across commercial payers, creating friction in procedure volumes.

These challenges, along with the rollout of the WISeR program, weighed on performance. Management stated that coding uncertainty and WISeR reduced first-quarter revenues by approximately $20 million, primarily by slowing prior authorization submissions and delaying procedures. This dynamic is expected to intensify in the second quarter due to a lag effect before improving in the back half of the year as providers gain confidence in billing practices.

As a result, Inspire Medical lowered its full-year 2026 revenue guidance, reflecting headwinds from reimbursement-related factors. While GLP-1 therapies may be contributing modestly to near-term pressure, management emphasized that the primary driver of the guidance revision is reimbursement disruption.

Looking ahead, the company expects sequential improvement through 2026, with the fourth quarter projected to be the strongest. Inspire Medical remains focused on establishing a new CPT code by 2028 and continues to invest in product innovation and clinical evidence, positioning the business for a return to growth in 2027.

INSP’s Zacks Rank & Key PicksInspire Medical currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader medical space that have announced quarterly results are West Pharmaceutical Services, Inc. (WST - Free Report) , Intuitive Surgical (ISRG - Free Report) and Cardinal Health, Inc. (CAH - Free Report) .

West Pharmaceutical reported first-quarter 2026 EPS of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

West Pharmaceutical has a long-term estimated growth rate of 13.9%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.37%.

Intuitive Surgical reported first-quarter 2026 adjusted EPS of $2.50, beating the Zacks Consensus Estimate by 20.19%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%. It currently carries a Zacks Rank of 2 (Buy).

Intuitive Surgical has a long-term estimated growth rate of 14.9%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.82%.

Cardinal Health, carrying a Zacks Rank of 2 at present, reported third-quarter fiscal 2026 adjusted EPS of $3.17, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $60.94 billion missed the Zacks Consensus Estimate by 2.3%.

Cardinal Health has a long-term estimated growth rate of 15.6%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.27%.

Inspire Medical Systems, Inc. (INSP) Presents at Bank of America Global Healthcare Conference 2026 Transcript