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YOKNEAM, Israel - InMode Ltd. (NASDAQ:INMD), a provider of medical technology currently valued at $919 million, responded to DOMA Perpetual Capital Management’s CEO Pedro Escudero regarding his concerns outlined in a May 9, 2025 letter. InMode’s CEO, Moshe Mizrahy, addressed points on share buybacks, production capacity, North American sales organization, and his leadership style.
Mizrahy highlighted InMode’s recent share buybacks, totaling $412 million in the past year and $508 million over 2.5 years, emphasizing the company’s effort to return capital to shareholders efficiently. According to InvestingPro data, the company maintains a strong financial position with more cash than debt on its balance sheet and a healthy current ratio of 8.73. He defended the decision to maintain production capacity in Israel, citing the company’s successful management of supply chains and delivery commitments during ongoing regional conflicts.
In response to the critique of the North American sales organization, Mizrahy attributed the slowdown in business to macro-economic factors and financing challenges for medical equipment, rather than to sales management. Recent financial data shows a revenue decline of 15.84% over the last twelve months, though the company maintains an impressive gross profit margin of 80.03%.
Regarding his performance as CEO, Mizrahy, also a co-founder of InMode, refuted claims of poor leadership, describing his management approach as "lean and mean" and leaving any judgment of his performance to the Board of Directors.
InMode, known for its radio frequency (RF) technology-based medical devices, operates across various medical specialties, including plastic surgery, gynecology, and dermatology. Trading near its 52-week low at a P/E ratio of 6.23, InvestingPro analysis suggests the stock is currently undervalued. The company’s statement also contained forward-looking projections, cautioning that actual results may differ from expectations due to various risks and uncertainties. For deeper insights into InMode’s valuation and growth potential, access the comprehensive Pro Research Report available on InvestingPro, covering over 1,400 US stocks with expert analysis and actionable intelligence.
This news is based on a press release statement from InMode Ltd.
In other recent news, InMode Ltd. reported preliminary financial results for the first quarter of 2025, revealing revenues between $77.2 million and $77.5 million, which fell short of Canaccord Genuity’s and consensus estimates. Despite this, the company maintained its full-year 2025 revenue guidance of $395 million to $405 million, projecting modest annual growth. Canaccord Genuity, reflecting on these figures and the economic challenges, maintained a Hold rating on InMode with a $17 price target. Meanwhile, BTIG downgraded InMode from Buy to Neutral, citing a contraction in the medical aesthetics market and concerns over the company’s ability to meet its revenue guidance amid potential recession impacts.
In related developments, InMode secured a favorable ruling from the US District Court for the Central District of California against counterfeit sellers, resulting in a permanent injunction and damages for trademark infringement. This legal victory underscores the company’s commitment to protecting its proprietary technology and consumer safety. Additionally, DOMA Perpetual Capital Management has called for InMode to resume its share repurchase program and replace CEO Moshe Mizrahy, criticizing his management style and public statements on capital allocation. DOMA highlighted InMode’s strong financial position and argued for a renewed focus on shareholder value through buybacks. These developments reflect ongoing strategic and operational challenges for InMode in a shifting market landscape.
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