InMode Profit Falls as Higher Expenses Offset Stable Revenue

InMode (INMD ) reported third-quarter 2026 revenue of $92.1 million on November 11, 2026, broadly unchanged from $93.2 million a year earlier, while GAAP net income fell to $18.9 million from $21.9 million. Diluted earnings declined to $0.32 per share from $0.34, according to the company’s third-quarter results announcement.

Operating expenses rose to $54.3 million from $51.4 million, reducing GAAP operating margin to 19% from 22%. InMode attributed the decline primarily to its North American sales-team restructuring toward the end of 2025, increased sales and marketing investment to retain talent and maintain market share, and higher professional-services costs. General and administrative expense increased to $4.5 million from $2.9 million, and the company expects these factors to continue affecting expenses for the foreseeable future.

Equipment Revenue Remains Stable

Capital equipment generated $72.8 million, or 79% of quarterly revenue. U.S. equipment revenue declined to $42.7 million from $45.2 million, while international equipment revenue rose to $30.1 million from $28.1 million, offsetting most of the U.S. decrease. Consumables and service revenue fell 3% to $19.3 million.

InMode said revenue in Asia reached another quarterly record, reflecting sustained demand across key regional markets. Chief Financial Officer Moshik Itzkovich said: “Both U.S. and international capital equipment revenue remained relatively stable compared to the second quarter of 2026. These results are consistent with the stabilization we expect to continue through the remainder of the year.”

Tariff Refund Supports Gross Margin

GAAP gross margin remained 78%, matching the prior-year quarter, but benefited from a non-recurring U.S. tariff refund that added approximately one percentage point. The unchanged headline margin therefore included temporary support while higher operating expenses reduced profitability.

Outlook Reaffirmed as Cash Generation Slows

Management reaffirmed its full-year 2026 outlook, projecting revenue of $365 million to $375 million and, on InMode’s adjusted, non-GAAP basis, gross margin of 74% to 76%, operating income of $68 million to $73 million and diluted earnings of $1.29 to $1.34 per share.

Net cash provided by operating activities fell to $11.4 million from $24.5 million in the prior-year quarter. Cash, cash equivalents, marketable securities and short-term bank deposits totaled $512.7 million at September 30, 2026.

InMode described the initial launch of Morpheus8 Max as successful and said it anticipates continued growth.

Separately, the Special Committee that had been evaluating unsolicited proposals completed its work and ceased activities. InMode said it will resume participation in investor conferences and engagement with research analysts and investors.

The reaffirmed outlook leaves a clear test for subsequent results: whether stable equipment demand and growth in Asia can produce stronger profit while InMode continues its higher sales investment. The one-time tariff refund and weaker operating cash flow mean that margin and cash-generation trends remain central to understanding the revenue stabilization.