Abstract
InMode Ltd. will report fourth-quarter 2025 results on February 10, 2026, Pre-Market; this preview summarizes consensus revenue, margin and EPS expectations, reviews last quarter’s performance, outlines management’s focus areas for the current quarter, and compiles recent institutional views published since August 2025.Market Forecast
Market indicators and the company’s guidance framework suggest fourth-quarter revenue of $104.40 million, implying a year-over-year decline of 02.01%, with EBIT estimated at $26.76 million and EPS at $0.42; year-over-year forecasts imply EPS down 19.17%, while gross margin is expected to remain elevated given the company’s historical range, and net profitability to be pressured but positive year-over-year. The company’s core capital equipment franchise remains the primary revenue driver, supported by recurring consumables and services; outlook commentary from the prior print pointed to steady procedure utilization offset by a slower capital-spending cycle among clinics. Consumables and services are positioned as the most defensible growth stream, with recent quarterly revenue of $19.90 million and a resilient mix that supports gross margin stability.Last Quarter Review
In the latest reported quarter, InMode Ltd. delivered revenue of $93.17 million, a gross profit margin of 77.61%, GAAP net profit attributable to shareholders of $21.86 million with a net profit margin of 23.47%, and adjusted EPS of $0.38; year-over-year trends indicated revenue down 28.46% and adjusted EPS down 45.71%. The company exceeded consensus on both revenue and EPS versus its pre-release forecasts, reflecting tighter expense controls and disciplined channel inventory management relative to a conservative setup. By segment, capital equipment generated $73.27 million while consumables and services delivered $19.90 million, with the latter demonstrating steadier demand and helping support overall margin quality despite softer new system placements.Current Quarter Outlook (with major analytical insights)
Capital Equipment as the Main Revenue Engine
InMode Ltd.’s capital equipment portfolio remains the central revenue contributor in the current quarter, historically accounting for the majority of quarterly sales and forming the base of installed systems that drives recurring revenue. Forecast revenue of $104.40 million for the quarter indicates a mild year-over-year decline of 02.01%, consistent with a cautious environment for aesthetic clinic capex and a longer decision cycle for new system placements. Despite the softer top line, the company’s high gross margin profile—anchored by a fabless, asset-light model—supports healthy absolute profitability even with lower throughput, and the prior quarter’s 77.61% gross margin provides context for continued resilience. The quarter’s EBIT estimate of $26.76 million and EPS forecast of $0.42 embed a margin mix that assumes the recurring stream continues to offset slower systems demand, implying that operating leverage remains positive but compressed versus last year.The demand backdrop for capital equipment is characterized by stable patient interest and procedure volumes but more selective purchasing behavior by clinics, particularly smaller independents and newer entrants. Within this environment, InMode Ltd. has leaned on targeted promotions, regional sales prioritization, and account penetration strategies that convert pipeline interest into placements without materially sacrificing long-term unit economics. Management’s consistent emphasis on maintaining high-ROI use-cases for practitioners, together with careful channel inventory discipline, has helped reduce the risk of discount-driven degradation of pricing power. For the current quarter, we expect capital equipment revenue to track near recent run-rate levels, with modest sequential stabilization weighed against the tough prior-year comparison base, while the mix of flagship platforms and mid-tier systems shapes average selling price dynamics.
Gross margin in equipment sales is expected to remain robust due to hardware standardization and a disciplined supply chain model, although product mix—between higher-ASP flagship systems and value-oriented platforms—will influence margin variation within a narrow band. The net margin trajectory is more sensitive to operating expenses as a percentage of sales, particularly sales and marketing spend deployed to support conversion in a cautious demand setting. With fourth-quarter EBIT modeled at $26.76 million, the implied operating margin still suggests healthy profitability, even as management balances near-term growth investments with protection of unit economics.
Consumables and Services as the Most Resilient Growth Driver
The consumables and services stream—$19.90 million in the last quarter—continues to be the most resilient and predictable source of revenue and a stabilizer of gross margins. Following a period of slower capital equipment placements, the installed base has matured, and recurring usage of handpieces and service contracts has maintained utilization-driven revenue. This revenue line typically carries attractive gross margins due to a favorable cost structure and repeat ordering patterns, providing ballast when equipment placements soften. For the current quarter, we expect consumables and services to see steady to slightly positive year-over-year performance relative to the broader top-line decline, as ongoing procedure volume at clinics sustains demand for replacement handpieces and maintenance.The strategic value of this segment extends beyond revenue smoothing. It enhances customer lifetime value, deepens account relationships, and supports cross-selling opportunities back into the capital equipment cycle. A stronger recurring mix tends to cushion company-wide gross margins by diluting the variability inherent in large one-time equipment sales. Given the forecast EPS of $0.42 and EBIT of $26.76 million, recurring revenue performance will be pivotal to how efficiently incremental gross profit drops to the bottom line. Visibility in this stream also helps management calibrate inventory and production schedules more accurately, mitigating working-capital volatility and preserving cash conversion.
We expect the company to emphasize utilization metrics and attach rates for consumables during the update, as these offer a leading indicator for procedure demand and future capital upgrades. Continued growth in services revenue—underpinned by maintenance plans and software-enabled support—could also provide ancillary margin benefits due to the relatively low incremental cost to serve.
Key Stock Price Drivers This Quarter: Margins, Mix, and Operating Discipline
Three factors are likely to drive the stock response around the print: gross margin trajectory, revenue mix between equipment and consumables, and operating expense discipline. Investors will scrutinize gross margin relative to the prior quarter’s 77.61% and the historical band for signs of price integrity and supply-chain stability. A favorable mix shift toward recurring revenue would be interpreted as supportive for margin durability and cash flow quality, even if headline revenue growth is modest or slightly negative year-over-year. Conversely, any indication of elevated promotional activity to stimulate systems demand would raise questions about pricing power and forward gross margin.Operating expense management remains at the core of EPS delivery. The last quarter’s EPS of $0.38 outpaced internal estimates, reflecting tighter cost controls amid a weak top line, and the current forecast of $0.42 assumes a similar balancing act. If sales and marketing leverage improves without compromising order conversion, the operating margin could surprise positively relative to the EBIT estimate of $26.76 million. Another swing factor is the cadence of new product placements and geographic performance, which influence ASPs and channel inventory levels. Stable inventory and receivables trends would alleviate concerns about pipeline risk, while evidence of accelerating procedure growth could signal a healthier setup for early 2026.
Analyst Opinions
Recent published opinions since August 2025 skew cautiously constructive. A notable Buy reiteration came from Barclays, which maintained its positive stance with a $21.00 price objective, citing valuation support and the durability of the company’s high-margin model despite a slower capital cycle. Meanwhile, a Hold view from Needham reflected a more neutral stance, emphasizing visibility concerns on system placements and the near-term trajectory of EPS, yet acknowledging the stabilizing role of recurring revenue.The ratio of bullish to bearish opinions from these updates leans in favor of the bullish side when weighting by explicit ratings direction and forward commentary. The constructive camp underscores several points: sustained high gross margins supported by an asset-light model, steady consumables demand underpinning cash flow quality, and the potential for upside if capital spending by clinics stabilizes sooner than expected. Based on the company’s projected revenue of $104.40 million and EPS of $0.42 for the quarter, this perspective argues that the current setup may already discount pressure on equipment demand. A stronger-than-expected recurring mix and disciplined operating expenses could deliver an earnings profile that validates or slightly exceeds the near-term outlook, reinforcing the investment case centered on margin durability and installed-base monetization.
In summary, the prevailing institutional perspective anticipates a quarter marked by resilient profitability despite a mild revenue decline, with attention focused on gross margin preservation and the mix of recurring revenue. The bullish view expects management to demonstrate ongoing cost control and healthy cash conversion, positioning InMode Ltd. for improved operating leverage when the capital equipment cycle normalizes. The narrative heading into February 10, 2026 emphasizes quality of earnings over headline growth, and the company’s ability to sustain high margins and stable recurring sales is seen as the critical validation point for the equity story.
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