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Introduction & Market Context
Inogen Inc (NASDAQ:INGN) released its Q2 2025 financial results on August 7, 2025, revealing continued revenue growth despite mixed performance across business segments. The company’s stock closed at $5.87, down 6.83% on the day, reflecting investor concerns despite some positive financial metrics.
The respiratory care specialist continues its transition toward business-to-business channels, which showed strong growth, while direct-to-consumer sales and rental revenue segments faced ongoing challenges. This quarter’s results build upon the momentum seen in Q1 2025, when the company reported a 5.5% year-over-year revenue increase and significant improvement in adjusted EBITDA.
Quarterly Performance Highlights
Inogen reported total revenue of $92.3 million for Q2 2025, representing a 4.0% increase compared to the same period last year. This result exceeded the company’s previously provided guidance of $89-91 million for the quarter. The growth was primarily driven by strong performance in business-to-business channels, both domestically and internationally.
As shown in the following revenue breakdown by region and category:
Business-to-business domestic sales reached $25.4 million, increasing 19.3% year-over-year and accounting for 27.5% of total revenue. International B2B sales showed similar strength at $35.9 million, up 17.7% and representing the largest revenue segment at 38.9% of total revenue.
However, these gains were partially offset by weakness in other segments. Direct-to-consumer domestic sales declined 21.1% to $17.8 million, while rental revenue fell 8.6% to $13.1 million. These declining segments now represent smaller portions of Inogen’s overall business at 19.3% and 14.2% of total revenue, respectively.
This performance pattern continues trends observed in Q1 2025, when the company also reported strong B2B growth alongside challenges in direct-to-consumer channels.
Detailed Financial Analysis
Inogen made notable progress in improving its financial position during Q2 2025. The company reduced its operating expenses across all categories, with total operating expenses decreasing to $47.47 million from $49.80 million in the prior year period. The following table details these improvements:
The company’s net loss narrowed to $4.15 million in Q2 2025, compared to $5.59 million in Q2 2024. For the six-month period, the improvement was even more significant, with net loss decreasing to $10.33 million from $20.17 million in the prior year.
On a non-GAAP basis, Inogen’s adjusted EBITDA showed positive momentum, reaching $2.08 million for the quarter, up from $1.26 million in Q2 2024. The six-month adjusted EBITDA figure of $2.12 million represents a substantial improvement from the negative $6.38 million reported for the same period last year.
The company’s adjusted net loss also improved significantly, as shown in the following reconciliation:
Inogen’s adjusted net loss for Q2 2025 was $650,000 or $(0.02) per diluted share, compared to $1.56 million or $(0.07) per diluted share in Q2 2024. This improvement reflects both higher revenue and lower operating expenses.
Stock-based compensation remained a significant non-cash expense, totaling $2.29 million for the quarter, primarily allocated to general and administrative functions. The breakdown of stock-based compensation by function provides insight into the company’s expense allocation:
Strategic Direction and Outlook
Inogen’s Q2 2025 results indicate a continued strategic shift toward business-to-business channels, which now collectively represent 66.4% of total revenue. This pivot appears to be yielding positive results as the company improves its financial metrics despite challenges in direct-to-consumer sales.
The company’s mission of "Improving lives through respiratory care" remains central to its operations, as reflected in its corporate materials:
Based on Q1 2025 guidance and the current results, Inogen appears to be executing on its strategy to approach adjusted EBITDA breakeven for the full year 2025. The positive adjusted EBITDA of $2.08 million in Q2 represents progress toward this goal.
The company’s financial improvements come amid a challenging market environment, with the stock trading near its 52-week low of $5.70, well below its 52-week high of $13.33. This suggests investors remain cautious despite the operational improvements demonstrated in the financial results.
Looking ahead, Inogen’s ability to sustain B2B growth while stabilizing or reversing declines in direct-to-consumer and rental segments will be crucial for achieving full-year targets and restoring investor confidence. The company’s continued focus on expense management and operational efficiency appears to be yielding positive results in terms of narrowing losses and improving adjusted profitability metrics.
Full presentation:
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