Inogen Posts $77.2 Million in Revenue, Widens Loss as It Sells U.S. Rental Business
Key Facts
Inogen reported revenue of $77.2 million in the third quarter of 2026, down 2.4% from the year-earlier period, while its GAAP loss from continuing operations widened to $14.8 million from $3.6 million. The results came as the company completed the sale of its U.S. oxygen rental business and appointed Andy Reading president and chief executive, succeeding Kevin Smith. The company said U.S. sales grew 3.8%, driven by demand for portable oxygen concentrators, but that growth was partly offset by weaker capital spending in international markets. In its earnings announcement on November 5, Inogen also expanded its cost-cutting program and increased its share repurchase authorization. These decisions frame the quarter’s results and the company’s outlook for next year as part of an effort to focus its operations and simplify its business model.
Revenue was $79.1 million in the third quarter of 2025, according to the company’s statement, and the decline on a constant-currency basis was 3.2%. Inogen said U.S. revenue growth of 3.8% resulted from demand for portable oxygen concentrators and new products. By contrast, weaker capital spending in international markets limited the impact of U.S. performance. The regional comparison shows that higher U.S. sales were not enough to offset external pressures on overall revenue. U.S. market growth therefore coincided with a year-over-year decline in the company’s total sales.
Alongside the revenue decline, the GAAP loss from continuing operations rose to $14.8 million, compared with $3.6 million in the same period a year earlier. On an adjusted basis, the company posted a loss of $0.4 million, after adjusted earnings of $1.2 million a year earlier. The GAAP gross margin fell to 44.1% from 45.7%. The adjusted gross margin also declined to 44.2% from 45.9%, which the company attributed to a change in sales mix as international sales fell. It said the impact of that change outweighed continued improvements in cost of revenue.
Inogen completed the sale of its U.S. oxygen rental business on November 2 for estimated total cash consideration of up to $24.8 million, along with a long-term supply agreement. On September 30, it had announced an agreement to sell certain assets of the business to Rotech for estimated cash consideration of up to $25 million, with a separate long-term supply agreement. The company described the divestiture as an effort to focus its commercial activity and simplify its model. The sale comes as the company seeks to maintain its focus on its business after exiting U.S. rentals. The announced information did not specify the value of the long-term supply agreement within the stated cash consideration for the transaction.
On the operating front, the company began a cost-cutting program in the fourth quarter of 2026 and expects it to generate annual savings of approximately $20 million by the end of 2027. Inogen increased its existing share repurchase program authorization by $15 million, bringing the total authorization to $45 million. These steps form part of the decisions the company announced alongside its quarterly results and completion of the rental business sale. They also reflect its plans to adjust its cost base and capital allocation as it recorded a larger loss from continuing operations. The statement did not give a specific timing or volume for share repurchases.
On leadership, the board appointed Andy Reading president and chief executive and a member of the board, succeeding Kevin Smith. Reading joined Inogen as chief operating officer in July 2026, and previously served as chief commercial officer at Viant Medical. Elizabeth Mora, chair of the board, said the board believed that "the time was right for this transition." She added that Reading brings experience "building high-performing teams and scaling complex medical technology companies like ours." The new chief executive takes office as the company faces declining revenue and a widening loss, and begins a cost-cutting program after selling its U.S. rental business.
For its outlook, Inogen expects revenue from continuing operations of between $65 million and $68 million in the fourth quarter of 2026. For fiscal 2026, it set a revenue range of between $298 million and $301 million, with an adjusted loss from continuing operations of between $7 million and $8 million. The company’s guidance for the coming period is thus based on continuing operations. It also announced plans to submit proposals at its 2027 annual shareholders’ meeting to declassify the board so that all directors are elected annually and to eliminate supermajority voting requirements. In the November 5 session, Inogen shares closed at $6.77, down 6.23%, then traded at $5.66 after the close, down 16.40%.