InMode stock revenue beats expectations, Needham maintains Hold

Published 10/10/2025, 10:40
InMode stock revenue beats expectations, Needham maintains Hold

Investing.com - InMode Ltd. (NASDAQ:INMD), currently trading below InvestingPro’s Fair Value estimate and maintaining a "GREAT" financial health score, announced preliminary third-quarter revenue above analyst expectations, though sales still showed a significant year-over-year decline, according to Needham.

The medical technology company guided for third-quarter revenue of $92.5-93.0 million, representing approximately a 29% year-over-year decline but exceeding the consensus estimate of $88.1 million.

InMode expects its gross margin for the quarter to range between 77-79%, compared to the consensus estimate of 68.3% and down from 81.9% in the same period last year.

The company maintained its full-year revenue guidance of $365-375 million, which represents a 5-8% year-over-year decline. InMode did not provide specific guidance for its third-quarter non-GAAP earnings per share.

Needham maintained its Hold rating on InMode stock, citing concerns about the substantial year-over-year sales decline, uncertain economic outlook, and limited visibility into the company’s growth prospects despite the revenue beat. InMode is scheduled to release its complete third-quarter results on November 5, 2025.

In other recent news, InMode Ltd . reported preliminary third-quarter revenue figures that surpassed analyst expectations, with revenue estimated between $92.5 million and $93.0 million, compared to the consensus estimate of $87.9 million. This marks a notable performance, exceeding Wall Street expectations by approximately 5%. Despite this positive development, DOMA Perpetual Capital Management LLC, a significant shareholder, has urged InMode to initiate a 20% share buyback over the next two quarters. The proposed plan includes a 10% repurchase in the fourth quarter of 2025 and another 10% in the first quarter of 2026. Meanwhile, BTIG has maintained its Neutral rating on InMode after the company reported preliminary second-quarter revenue below expectations and adjusted its full-year guidance. The second-quarter revenue is projected to be between $95.4 million and $95.5 million, which falls short of the consensus estimate of $99.2 million. This revenue figure reflects a 10.5% year-over-year growth, although it would represent a negative 7.0% growth if adjusted for unrecognized revenue from the previous year.

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