Inspire Medical CFO to step down at end of 2025

MINNEAPOLIS - Inspire Medical Systems, Inc. (NYSE:INSP), a medical device company currently valued at $2.7 billion and showing strong financial health according to InvestingPro metrics, announced Tuesday that Chief Financial Officer Rick Buchholz will step down from his position effective December 31, 2025, to pursue other professional opportunities.

Buchholz, who joined the sleep apnea device maker in 2014, will remain with the company in a financial advisory role through February 28, 2026, to ensure a smooth transition while the company conducts a search for his successor.

"Since joining Inspire in 2014, Rick has provided steady leadership and invaluable guidance," said Tim Herbert, Chairman and Chief Executive Officer of Inspire Medical Systems, in a press release statement.

During Buchholz’s tenure, Inspire grew from $4 million in revenue to over $800 million in 2024, navigated its initial public offering, and became profitable despite challenges including the COVID-19 pandemic.

Buchholz said, "It has been a great honor to be a part of the Inspire journey. As I move on to my next endeavors, I am committed to ensuring a smooth transition."

The company reaffirmed its previously issued guidance for full-year 2025, projecting revenue between $900 million and $910 million, gross margin of 84% to 86%, and diluted net income per share of $0.40 to $0.50.

Inspire Medical Systems develops and commercializes minimally invasive solutions for patients with obstructive sleep apnea. Its proprietary neurostimulation technology is approved by the FDA, EU MDR, and PDMA for treating moderate to severe obstructive sleep apnea. The company maintains a robust 84.47% gross profit margin and has achieved a 58% compound annual revenue growth over the past five years.

In other recent news, Inspire Medical Systems reported second-quarter revenue of $217.1 million, surpassing Wall Street’s forecast of $214.3 million. Despite this revenue beat, the company experienced a GAAP earnings per share loss of $0.12, with an adjusted EPS of $0.45, which was better than the expected $0.20 loss. Additionally, Inspire Medical announced a share repurchase program, authorizing up to $200 million in stock buybacks through August 2027. Analyst firms have adjusted their price targets for Inspire Medical, reflecting concerns about slower growth and product launch challenges. Jefferies lowered its price target to $160 from $205, maintaining a Buy rating, while Piper Sandler reduced its target to $150 from $233, citing issues with the Gen 5 launch. RBC Capital also revised its target to $180 from $215, noting slower growth and a significant guidance reduction for 2025. Stifel decreased its target to $140 from $175, mentioning lagging facility activations as a contributing factor. These developments highlight recent challenges and strategic decisions impacting Inspire Medical Systems.

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