InMode Ltd. Q1 2026 Earnings Recap

Shares dropped 3.3% following earnings as investors reacted to margin compression and cautious outlook reflected in weaker profitability metrics despite modest revenue growth.

Key Takeaways

• Revenue rose 5% year-over-year to $82 million, driven primarily by the U.S. market; international sales grew 2.65% to $38.7 million.
• Gross margin declined significantly, with GAAP gross margin falling to 75% from 78% a year ago and non-GAAP gross margin down to 75% from 79%.
• Operating expenses increased sharply, with GAAP operating expenses up 13.7%, largely due to restructuring of North American sales and expansion efforts.
• Operating margins compressed notably, as GAAP operating margin dropped to 12% from prior levels, and non-GAAP operating margin declined to 17% from 23%.
• Earnings per share declined: GAAP EPS fell to $0.18 from $0.26, and non-GAAP EPS decreased to $0.25 from $0.31, underscoring margin pressure and cautious execution.