InMode Reports Adjusted EPS of $0.37, Reaffirms 2026 Revenue Outlook
Key Facts
InMode reported adjusted net income of $21.9 million, or $0.37 per diluted share, in the third quarter of 2026 and reaffirmed its fiscal-year revenue range of $365 million to $375 million. The company said in a statement that quarterly revenue was $92.1 million under generally accepted accounting principles, compared with $93.2 million in the same period of 2025. It also reported net income of $18.9 million, or $0.32 per diluted share, on the same basis, versus $21.9 million and $0.34 per share a year earlier. On a non-GAAP basis, net income was $21.9 million and earnings per share were $0.37, compared with $24.5 million and $0.38 in the third quarter of 2025. The results show year-over-year declines in revenue and earnings, while management held to its annual outlook.
Quarterly revenue was close to the preliminary range of $91.8 million to $92.0 million that the company announced on October 13, when it also maintained its 2026 revenue range of $365 million to $375 million. The final figure was $92.1 million, compared with third-quarter 2025 revenue of $93.2 million. InMode said revenue in Asia continued to grow strongly and reached a new quarterly record, reflecting sustained demand in key markets across the region. By contrast, consumables and services revenue fell 3% to $19.3 million compared with the third quarter of last year. The company said capital equipment revenue in the U.S. and international markets remained relatively stable compared with the second quarter of 2026, a pace it expects to continue through the rest of the year.
Operating margin under generally accepted accounting principles fell to 19% in the third quarter of 2026 from 22% in the year-earlier period. On a non-GAAP basis, operating margin was 22%, compared with 25% a year earlier. The company attributed the decline in non-GAAP margin mainly to restructuring its North American sales team, along with increased investment in sales and marketing and higher general and administrative expenses. InMode said these factors are expected to continue affecting expenses for the foreseeable future. On costs, a one-time recovery of U.S. tariffs added about one percentage point to gross margin during the quarter, providing partial support for the margin amid operating expense pressures.
The company’s guidance for the fiscal year ending December 31, 2026, includes a revenue range of $365 million to $375 million and non-GAAP diluted earnings per share of $1.29 to $1.34. Management also set a non-GAAP gross margin range of 74% to 76% and non-GAAP operating income of $68 million to $73 million. The revenue range remains unchanged after being reaffirmed in the preliminary announcement issued in October, while the company said it expects capital equipment revenue in U.S. and international markets to remain stable through year-end. It also said the initial launch of the Morpheus8 Max platform was successful and that it expects related growth to continue. The statement did not provide a figure for that growth or an additional timeline.
Cash, cash equivalents, marketable securities and short-term bank deposits totaled $512.7 million as of September 30, 2026, according to the company’s statement. InMode said the special committee had completed its work and ceased its activities, and that the company would resume investor relations activities, including participation in investor conferences and outreach to analysts and investors. In trading, the company’s shares closed at $13.27 on November 10, 2026. InMode plans to hold a conference call when it reports fourth-quarter and fiscal 2026 results early next year. That will be the date for presenting annual results and details of the final quarter, according to the company’s announced schedule.