INSP Stock Forecast & Price Target

Inspire Medical Systems Inc. has reaffirmed its fiscal year 2025 revenue guidance of $900-910 million, reflecting a year-over-year growth of 12-13%, alongside an increased GAAP EPS forecast of $0.90-1.00. The company's strategy includes enhancing therapy penetration through the addition of new implanting centers, increased utilization at existing centers, and improved diagnosis rates, indicating a strong potential for revenue growth. Furthermore, Inspire is expected to achieve robust profitability with a gross margin guidance of 84-86% and a revenue compound annual growth rate (CAGR) of over 10% for the next three to five years.

Inspire Medical Systems Inc. has recently faced challenges surrounding the launch of its new Inspire 5 product, resulting in management's downward revision of revenue and earnings per share (EPS) outlook, reflecting an anticipated slower adoption rate. The company's operating expenses were reduced, primarily through cuts in R&D and SG&A expenditures, but the ongoing issues with product adoption and potential market competition contribute to a negative sentiment surrounding future profitability. Additionally, a downside scenario indicates concerns regarding slower penetration of implant centers, utilization rates, and overall market expansion, which collectively suggest a more cautious growth outlook for 2026 and beyond.