|INSP Overview
INSP

Inspire Medical Systems, Inc.

Healthcare • CIK: 0001609550

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Market Cap
$2.20B
P/E (TTM)
49.1x
Rev Growth (TTM)
+16.8%
Net Margin (TTM)
5.0%
FCF Yield (TTM)
4.5%
FCF Margin (TTM)
11.2%

LATEST EARNINGS

Q4 FY2025
22 days ago
View source
Revenue
$269.08M
+12.2%
Net Income
$136.09M
+286.4%
EPS
$4.66
+305.2%
Gross
86.6% +2.0%
Operating
17.1% +3.8%
Net
50.6% +35.9%
  • Fourth quarter revenue increased 12% to $269.1 million, driven by growth at existing centers and new center additions.
  • Full year revenue increased 14% to $912.0 million, primarily driven by growth at existing centers and new center additions.
  • Gross margin increased 160 bps to 86.6% in Q4 and 70 bps to 85.4% for the full year, primarily due to increased sales volume and a higher sales mix of the Inspire V system.
  • Operating cash flow was $52.5 million in the fourth quarter and $117.0 million for the full year.

Cash Flow Health

Free Cash Flow4/8 positive
TTM$99M
Q3 '25
$58M+1020%
Q2 '25
$-6M+58%
FCF Margin
TTM11.2%
Q3 '2525.9%+990%
Sector: 0.0%Top 25%
OCF Margin15.1%
OCF/NI3.00x
CapEx Coverage3.8x
FCF Yield4.5%
FCF Growth (2Y)
Cash Conversion Cycle
322 days
DSO: 44+DIO: 278DPO: 0

Capital Allocation & Returns

Shareholder Friendly
Total Shareholder YieldTTM
TTM9.1%
Div Yield0.0%
+
Buyback (TTM)9.1%

Strong capital returns to shareholders

Dividend & Payout Metrics
Dividend Yield (TTM)0.0%
Free Cash Flow (TTM)$98.8M
Stock Repurchases (TTM)$200.0M
Capital Return / FCF202.4%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
4.7%
Moderate
+1.4% YoY+2.0%
P25MedianP75
75th pctl (med: 0.0%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
3.6%
8Q: 2.8%
Asset Turnover
1.12x
8Q: 1.11x
Leverage (1+D/E)
1.00x
D/E: 0.00x
DuPont: 4.0%4.7% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
11.25x
8Q:13.17x
-862.1%
Invested Cap Turn
1.45x
8Q:1.34x
+23.8%
CapEx Intensity
5.7%
8Q:5.8%
CapEx/Depreciation
2.76x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024Q4 2023
Revenue
$882.6M
$224.5M3.4%
$217.1M7.8%
$201.3M16.0%
$239.7M18.0%
$203.2M3.7%
$195.9M19.4%
$164.0M14.8%
$192.5M
Operating Income
$36.7M
$9.6M390.8%
$-3.3M123.3%
$-1.5M104.7%
$31.9M122.7%
$14.3M180.8%
$5.1M133.5%
$-15.2M263.7%
$9.3M
Net Income
$44.6M
$9.9M376.5%
$-3.6M220.1%
$3.0M91.5%
$35.2M90.4%
$18.5M88.9%
$9.8M197.9%
$-10.0M167.8%
$14.8M
Operating Cash Flow
$133.7M
$68.5M2453.1%
$2.7M140.0%
$-6.7M109.7%
$69.2M32.3%
$52.3M67129.5%
$-78.0K100.9%
$8.9M48.7%
$17.3M
Free Cash Flow
$98.8M
$58.1M1020.1%
$-6.3M58.2%
$-15.1M124.3%
$62.2M40.4%
$44.3M455.0%
$-12.5M339.7%
$-2.8M130.7%
$9.2M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
49.1x
Volatile
8Q: 279.3x-1132%
Valuation Lenses
Earnings
49.1x
vs sector
Cash Flow
42.5x
EV/FCF vs
Growth-Adj
1.4xPEG
Fair for growth
Quality-Adj
10.5P/E per %ROIC
ROIC: 4.7%
Shareholder Returns
Dividend
Buyback
9.1%
Total Yield
9.1%
Market Cap$2.20B
EV
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
59/100
Average

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Above Avg
6.6%
8Q:
Return on Invested Capital (ROIC)Top 25%
4.7%
8Q:
+2.0%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 3.6%
Asset Turnover: 1.12x

Earnings Quality

Cash Conversion

3.00x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin84.9%

Capital Efficiency

Invested Capital Turnover1.45x

Working Capital

Cash Conversion Cycle322 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
67/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
16.8%
OpInc Growth YoY
-32.6%
EPS Growth YoY
34.9%
FCF 3Y CAGR
N/A

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
84.9%
Operating
4.2%
Below Avg in sector
Net
5.0%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+6.1 pts
FCF: 11.2% | Net: 5.0%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $322.59M
Interest Coverage
+Net cash position: $322.59M
Leverage Metrics
Debt-to-Equity
0.00x
Balance sheet risk & solvency analysis