INSP Inspire Medical Systems, Inc.

Overview and Growth

Inspire Medical Systems, Inc. generated $911.98M of revenue in fiscal 2025, with net income of $145.42M and an operating cash inflow of $116.98M. Revenue of $911.98M sets the scale for evaluating how effectively sales translated into profit and cash during the year. Compared with $802.80M in fiscal 2024, revenue recorded a 13.6% year-over-year increase. On a per-share basis, diluted EPS was $4.89, which connects the reported earnings outcome with the company’s diluted share count. The per-share result recorded a 179.4% increase from fiscal 2024 diluted EPS of $1.75. Revenue equaled 1.01x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

The first profit layer was $778.76M of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross profit represented 85.4% of revenue, showing how much of the top line remained after direct costs. Operating income was $50.95M, the earnings remaining from reported operations after the company’s recognized operating cost structure. Relative to revenue, operating income represented 5.6%, showing how efficiently sales converted into operating profit. The bottom-line result was net income of $145.42M, after the operating, financing, tax, and other items recognized for the period. The final earnings result represented 15.9% of revenue, connecting the absolute net income figure with the company’s top-line scale. The earnings statement records $65.70M of pretax income, the profit base against which the reported tax provision can be assessed. Measured against revenue, pretax income equaled 7.2%, adding a pre-tax profitability layer between revenue and net income. An income-tax benefit of $79.72M improved the final result relative to pretax income or loss. The effective tax-benefit relationship was 121.4% of positive pretax income. Return on period-end equity was 18.6%, relating annual net income to the equity capital on the balance sheet. Net income represented 16.0% of period-end assets, placing the company’s bottom-line result against the total resource base employed.

Liquidity and Capital Structure

At period end, the $907.32M asset base was financed through $126.16M of liabilities and $781.16M of equity. At period end, current assets of $583.65M compared with current liabilities of $96.06M, defining the company’s short-term resource position. The current ratio was 6.08x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. The company held $104.81M in cash and equivalents, a narrower liquidity measure than total current assets. Cash and equivalents represented 109.1% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Liabilities represented 13.9% of total assets, quantifying the liability-funded share of the company’s resource base. The cash-to-assets relationship was 11.6%, comparing reported cash and equivalents with the full positive asset balance. Compared with $808.38M in fiscal 2024, the current asset base moved 12.2% and finished higher.

Cash Flow and Earnings Quality

The company reported $116.98M of operating cash flow, a cash inflow that shows the cash generated by operations. The operating-cash-flow-to-net-income relationship was 0.8x, comparing cash generated by operations with the bottom-line earnings result. Capital expenditures used $38.50M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital spending absorbed 32.9% of operating cash flow, quantifying the share of cash from operations directed to investment. After capital spending, free cash flow was $78.48M, leaving cash available for debt reduction, shareholder returns, or further investment. The free-cash-flow margin was 8.6%, measuring cash remaining after capital spending against revenue. Free cash flow equaled 8.6% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Sep 24, 2026.