InMode Ltd. Q4 FY2025 earnings call

• The fourth quarter was slightly better than expected despite industry challenges from higher interest rates and softer customer demand in the aesthetic space.
• In North America, Michael Dennison was appointed President in October, and operations were unified into a single organization. The new structure is expected to deliver results in 2026.
• The sales force is segmented across aesthetic and wellness with dedicated teams for specific platforms, including a specialized team for Envision.
• In 2025, CO2 laser platforms were launched, and two new platforms are planned for 2026: a Korean-made Pico laser device and a device combining Morpheus technology with Erbium YAG laser.
• Focus on product innovation as a key pillar, with a commitment to launching two new platforms per year.

Total revenue for InMode Ltd. declined approximately 6% year over year in the fourth quarter and full year 2025. Revenue from consumables and services increased slightly compared to the prior year. Minimally invasive technology platforms accounted for 76% of Q4 2025 revenue and 78% of full-year 2025 revenue. Consumables and services made up 22% of full-year 2025 revenue, up from 20% in 2024. In the fourth quarter of 2025, sales outside the U.S. totaled $48.5 million, representing 47% of total sales and a 38% increase compared to Q4 2024. For the full year 2025, sales outside the U.S. accounted for $171.8 million, or 46% of total sales, a 15% increase compared to 2024.

• 2026 revenue is expected to be broadly in line with 2025, between $365 million and $375 million.
• Non-GAAP gross margin is expected to be between 75% and 77%.
• Non-GAAP income from operations is expected to be between $87 million and $92 million.
• Non-GAAP earnings per diluted share is expected to be between $1.43 and $1.48.

• Industry softness and global economic slowdown continue to impact demand.
• The introduction of new products, including lasers, may affect gross margins due to factors like sourcing and tariffs.
• The strategic alternatives process being conducted by the Board of Directors, including considering offers like Steel Partners' unsolicited proposal, introduces uncertainty.

Q: Matt Miksic asked about signs of improving trends and strategic alternatives.

A: Moshe Mizrahy noted lower interest rates as a positive sign, and mentioned the Board is considering strategic alternatives with Bank of America, and addressed Steel Partners' unsolicited proposal.

Q: Danielle Joy Antalffy asked about gross margin and EBIT margin guide, and new product launches.

A: Yair Malca and Moshe Mizrahy discussed the impact of new laser products on margins and the planned launches of Pico laser and Morpheus-Erbium YAG combination platform.

Q: Michael Anthony Sarcone asked about quarterly phasing and new product contributions.

A: Yair Malca said quarterly distribution is similar to 2025, and Moshe Mizrahy discussed the contribution of 2025 launches and plans for 2026 products.

Q: Joseph Conway asked about minimally invasive vs noninvasive trends and new countries.

A: Moshe Mizrahy talked about procedure cost differences and GLP-1 impact, and discussed new countries where InMode is operating with distributors and subsidiaries.

Q: Caitlin Cronin asked about R&D and sales and marketing spend.

A: Moshe Mizrahy discussed increased R&D spending for clinical studies and planned marketing efforts for new products.

Q: Sam Shimon Eiber asked about capital allocation and dry eye clinical work.

A: Moshe Mizrahy discussed ongoing clinical work for dry eye and the capital allocation process, and Yair Malca mentioned the Board evaluating capital allocation with strategic alternatives.

Q: Dane Reinhardt asked about system placements, revenue, and Apex platform.

A: Moshe Mizrahy discussed system placement and revenue trends, and the feedback and sales approach for the Apex Men's Wellness platform.