INMD

• In North America, new leadership was brought in at the end of Q3 2025, transitioning to a unified model and having the Envision team (ophthalmology and optometry sales force) operate independently. - Internationally, Europe remains a strong region with solid performance, Asia has mixed performance but shows progress in key markets like China. - The PCOR and CO2 lasers are strategically important for long-term growth as they expand the range of procedures physicians can offer. - There are signs of stabilization in the broader market environment, with demand for static procedures pressured but expected to return.

Revenues for 2026 are expected to be between $365 million to $375 million. Non-GAAP gross margin is between 74% and 76%. Non-GAAP income from operations is between $73 million and $78 million. Non-GAAP diluted earnings per share are between $1.33 to $1.38.

Total revenue in Q1 2026 was $82 million, up 5% from $77.9 million in the same quarter last year. Growth in Q1 was led by strong performance in the US market. Moving to international operations, sales outside the US totaled $38.7 million in Q1, representing 48% of total sales. Our minimally invasive technology platform accounted for 77% of total revenues. The PCOR and the CO2 laser performed well recently, making a meaningful contribution to our Q1 revenue performance.

Q: Mike Mattson asked about the timeline of the Erbium laser launch, growth of new direct subsidiaries in Argentina and China, and product targeting in China.

A: The erbium laser is expected to get FDA clearance by the end of 2026; Argentina subsidiary was established late 2025, nearly ready with expected Q2 2026 results; in China, using the existing Guangzhou company for the spa and aesthetic arm with special products in development.

Q: Matt Mixick inquired about U.S. Sales Reorg's impact on ophthalmology growth and capital allocation plans.

A: The ophthalmology sales team of 30 covers the US and Canada, early signs of the concept working; capital allocation options include buyback, M&A, dividend considered.

Q: Sam Iver asked about M&A appetite.

A: M&A opportunities are being explored, but private company prices are high; attempted to acquire injectable and toxin companies but offers were not accepted.

Q: Michael Toomey asked about broader aesthetics market and gross margin phasing.

A: Broader aesthetics market faces competition from GLP-1, injectables, etc.; energy-based devices need strategic cooperation; gross margin expected to stay between 74% - 76% through the year