INMD

YOKNEAM, Israel, Aug. 5, 2026 /PRNewswire/ -- InMode Ltd. (Nasdaq: INMD) ("InMode"), a leading global provider of innovative medical technologies, today announced its consolidated financial results for the second quarter of 2026. Second Quarter 2026 Highlights: Quarterly GAAP revenues of $95.6 million, consistent with the second quarter of 2025. Quarterly revenues from consumables and service of $22.3 million, an increase of 13% compared to the second quarter of 2025. GAAP operating income of $12.3 million and *non-GAAP operating income of $16.0 million. Total cash position of $501.1 million as of June 30, 2026, including cash and cash equivalents, marketable securities and short-term bank deposits. Completed the repurchase of 6.38 million ordinary shares for an aggregate purchase price of $87.8 million through the previously announced share repurchase program. Management Comments "Overall revenue was consistent with the prior-year period, and we saw continued stability in our U.S. capital equipment business, reflecting steady customer demand. This performance is consistent with the stabilization we anticipate will continue through the remainder of the year. We remain focused on investing in opportunities that support long-term growth," said Moshik Itzkovich, Chief Financial Officer of InMode. Second Quarter 2026 Financial Results Total GAAP revenues for the second quarter of 2026 were $95.6 million, consistent with the second quarter of 2025. Revenue from Asia reached a quarterly record, reflecting continued strength across key markets in the region. Quarterly revenues from consumables and service grew 13% compared to the second quarter of 2025, to $22.3 million, derived primarily from international sales. GAAP gross margin for the second quarter of 2026 was 75%, compared to 80% for the second quarter of 2025. *Non-GAAP gross margin for the second quarter of 2026 was 75%, compared to 80% for the second quarter of 2025. GAAP operating margin for the second quarter of 2026 was 13%, compared to 24% for the second quarter of 2025. *Non-GAAP operating margin for the second quarter of 2026 was 17%, compared to 28% for the second quarter of 2025. These decreases were primarily attributable to higher cost of goods sold, product mix, the restructuring of the North America sales team implemented toward the end of 2025, additional marketing and sales investments to retain talent and maintain market share, and higher general and administrative expenses driven by increased professional services costs. We expect these trends to continue for the foreseeable future. InMode reported GAAP net income of $17.1 million, or $0.29 per diluted share, in the second quarter of 2026, compared to $26.7 million, or $0.42 per diluted share, in the second quarter of 2025. On a *non-GAAP basis, InMode reported net income of $20.8 million, or $0.35 per diluted share, in the second quarter of 2026, compared to $30.1 million, or $0.47 per diluted share, in the second quarter of 2025. As of June 30, 2026, InMode had cash and cash equivalents, marketable securities and short-term bank deposits of $501.1 million. Appointed New Chief Financial Officer and New Board Director On May 20, 2026, the Company announced the appointment of Dr. Shlomo Nass as its new Chairman of the Company's Board of Directors, effective May 19, 2026. The Company also announced the appointment of Moshe (Moshik) Itzkovich as the Company's new Chief Financial Officer, effective May 19, 2026, while former Chief Financial Officer Yair Malca continues to be engaged with the Company as a consultant. 2026 Financial Outlook Management provided an outlook for the full fiscal year ending December 31, 2026. Based on current estimates, management expects: Revenues between $365 million and $375 million *Non-GAAP gross margin between 74% and 76% *Non-GAAP income from operations to be between $68 million and $73 million *Non-GAAP earnings per diluted share between $1.29 and $1.34 However, these expectations are based on management's current estimates, which may be updated. This outlook is not a guarantee of future performance, and shareholders should not rely on such forward-looking statements. See "Forward-Looking Statements" for additional information. *Please refer to "Use of non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A reconciliation between U.S. GAAP and non-GAAP Statement of Income is provided following the financial statements that are included in this release. Non-GAAP results exclude share-based compensation, expenses related to independent transaction committee review (representing non-recurring cost) and related income tax adjustments where applicable. Conference Call and Webcast Update As previously announced, while the Company's Special Committee continues its evaluation of unsolicited proposals, the Company will not host an investor conference call or webcast in connection with this earnings release and will not be conducting investor meetings at this time. The Current Situation in Israel The scope and severity of ongoing conflicts in Gaza, Northern Israel, Lebanon, Iran, and the broader region are unpredictable and could escalate at any time. To date, our operations have not been materially affected. We continue to monitor political and military developments closely and examine the consequences for our operations and assets. Use of Non-GAAP Financial Measures In addition to InMode's operating results presented in accordance with GAAP, this release contains certain non-GAAP financial measures including non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating margin, non-GAAP gross margin and non-GAAP income from operations. Because these measures are used in InMode's internal analysis of financial and operating performance, management believes they provide investors with greater transparency into its view of InMode's economic performance. Management also believes the presentation of these measures, when analyzed in conjunction with InMode's GAAP operating results, allows investors to more effectively evaluate and compare InMode's performance to that of its peers, although InMode's presentation of its non-GAAP measures may not be strictly comparable to the similarly titled measures of other companies. Schedules reconciling each of these non-GAAP financial measures are provided as a supplement to this release. Reconciliations of non-GAAP gross margin, non-GAAP income from operations, and non-GAAP earnings per diluted share for management's projections of such non-GAAP financials for the 2026 fiscal year are not available without unreasonable effort due to the variability, complexity and limited visibility of certain reconciling items. These reconciling items could have a significant and unpredictable impact on our future GAAP results. About InMode InMode is a leading global provider of innovative medical technologies. InMode develops, manufactures, and markets devices harnessing novel radio frequency ("RF") technology. InMode strives to enable emerging surgical procedures as well as improve existing treatments. InMode has leveraged its medically accepted minimally invasive RF technologies to offer a comprehensive line of products across several categories for plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology. For more information about InMode, please visit www.inmodemd.com. Forward-Looking Statements The information in this press release includes forward-looking statements within the meaning of the federal securities laws. These statements generally relate to future events or InMode's future financial or operating performance, including the actual amount of share repurchases made by the Company, if any. Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. In some cases, you can identify these statements because they contain words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will," "would" and similar expressions that concern our expectations, strategic plans or intentions. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Consequently, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in InMode's Annual Report on Form 20-F filed with the Securities and Exchange Commission on February 10, 2026, and our subsequent public filings. InMode undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which pertain only as of the date of this press release. Company Contact:Moshik ItzkovichChief Financial OfficerEmail: [email protected] Investor Relations Contact:Miri SegalMS-IR LLCEmail: [email protected] Logo - https://mma.prnewswire.com/media/1064477/InMode_Logo.jpg View original content:https://www.prnewswire.com/news-releases/inmode-reports-second-quarter-2026-financial-results-quarterly-gaap-revenues-of-95-6-million-consistent-with-the-second-quarter-of-2025--302842958.html

YOKNEAM, Israel, July 13, 2026 /PRNewswire/ -- InMode Ltd. (NASDAQ: INMD), a leading global provider of innovative medical technologies, announced today that it expects to release its financial results for the second quarter of 2026 before the Nasdaq market opens on Wednesday, August 5, 2026. InMode is currently finalizing its financial results for the second quarter of 2026. While complete financial information and operating data are not yet available, set forth below are certain preliminary results such period, subject to final adjustments and other developments that may arise between now and the time such financial results are finalized. Based on preliminary results, management expects: Revenue for the second quarter of 2026 to be in the range of $95.2 million to $95.4 million Full year 2026 revenue to be in the range of $365 million to $375 million As the Company's Special Committee continues its evaluation of strategic proposals, the Company will not host an investor conference call or webcast in connection with this earnings release and will not be conducting investor meetings at this time. About InMode InMode is a leading global provider of innovative medical technologies. InMode develops, manufactures, and markets devices harnessing novel radio frequency ("RF") technology. InMode strives to enable emerging surgical procedures as well as improve existing treatments. InMode has leveraged its medically accepted minimally invasive RF technologies to offer a comprehensive line of products across several categories for plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology. For more information about InMode, please visit www.inmodemd.com. Forward-Looking Statements The information in this press release includes forward-looking statements within the meaning of the federal securities laws. These statements generally relate to future events or InMode's future financial or operating performance. Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. In some cases, you can identify these statements because they contain words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will," "would" and similar expressions that concern our expectations, strategic plans or intentions. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Consequently, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in InMode's Annual Report on Form 20-F filed with the Securities and Exchange Commission on February 10, 2026, and our subsequent public filings. InMode undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which pertain only as of the date of this press release. View original content to download multimedia:https://www.prnewswire.com/news-releases/inmode-to-report-second-quarter-2026-financial-results-on-august-5--2026--expects-q2-revenue-between-95-2m-95-4m-reiterates-fy-2026-revenue-guidance-between-365m-375m-302823516.html

InMode reported Q1 revenue of $82 million (up 5% year-over-year) but saw compressed margins and lower EPS (GAAP EPS $0.18 vs $0.26 a year ago; non-GAAP EPS $0.25 vs $0.31), and reiterated full-year 2026 guidance of $365–$375 million in revenue with non-GAAP EPS of $1.33–$1.38. Management said it is seeing “early signs of stabilization, particularly in the U.S.,” after reorganizing North America into a unified model and separating the Envision ophthalmology sales force into a dedicated team, with March showing especially strong progress. New laser products (PicoFy and a CO2 platform) contributed to Q1 results and an Erbium laser is targeted for FDA clearance by year-end, while the company ended the quarter with $537.2 million of cash and has been active in share buybacks ($127.4M repurchased in 2025; $52.7M YTD), and CFO Yair Malca will step down but remain as a consultant. Interested in InMode Ltd.? Here are five stocks we like better. InMode (NASDAQ:INMD) reported first-quarter 2026 results that management said came in “in line with our expectation,” alongside early signs of stabilization in demand—particularly in the U.S.—following a restructuring of its North America commercial organization. CEO Moshe Mizrahy said the company is seeing “early sign of stabilization, particularly in the U.S.,” adding that the quarter “reinforce our confidence that 2026 is moving in the right direction.” → 3 Emerging Markets ETFs to Maximize Exposure to High-Potential Countries Mizrahy highlighted organizational changes made after new North American leadership was brought in at the end of the third quarter of 2025. The company moved from an East-West structure to a unified North America model covering both U.S. coasts and Canada, which he said is improving coordination and accountability. In addition, effective Jan. 1, 2026, InMode separated its Envision ophthalmology and optometry sales force to operate independently as a more focused model. Mizrahy said March showed “particularly strong progress,” though he cautioned the company is looking for sustained consistency before declaring a long-term trend. → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches CFO Yair Malca said InMode generated total revenue of $82 million in the first quarter of 2026, up 5% from $77.9 million in the prior-year quarter, driven by strong performance in the U.S. market. International revenue totaled $38.7 million, representing 48% of total sales and an increase of 2.65% compared to the first quarter of 2025, Malca said. Mizrahy noted the company operates in more than 100 countries through a mix of direct local offices and distributor partnerships, calling Europe “a strong region” with room for continued growth, while describing Asia as “more mixed,” consistent with last year. He added that InMode is making progress in key Asian markets including China, where it sees significant long-term potential. → Tyson Foods' Total Returns: Tasty Treats for Income Investors? Margins declined from the prior year. Malca reported GAAP gross margin of 75% compared to 78% in the first quarter of 2025. Non-GAAP gross margin was also 75%, down from 79% a year earlier. GAAP operating margin was 12%, while non-GAAP operating margin was 17% compared with 23% in the prior-year quarter. Operating expenses increased year over year. GAAP operating expenses were $51.5 million, up 13.7%, and GAAP sales and marketing expense rose to $42.9 million from $39.7 million. Malca attributed the increase primarily to higher sales expenses linked to the North America sales restructuring, headcount expansion from 2025 subsidiary build-outs, and higher commissions tied to stronger sales performance. Share-based compensation rose to $2.7 million. Earnings also declined versus the prior year. GAAP diluted earnings per share were $0.18, down from $0.26, while non-GAAP diluted EPS was $0.25 compared with $0.31 in the first quarter of 2025. Mizrahy said recently introduced laser offerings contributed meaningfully to first-quarter performance, citing the PicoFy and a CO2 laser as strategically important platforms that expand the range of procedures physicians can offer and enable combination treatments. He added that while lasers “may put pressure on our gross margin,” they support a “one-stop shop” approach that can deepen customer relationships. During the Q&A, Mizrahy clarified product timing and development work: PicoFy: Introduced early 2026, “sometime in February,” Mizrahy said. Erbium laser: Still under development in Israel. Mizrahy said the company hopes to complete development and pursue FDA clearance “sometime in the next months or two,” with the goal of having it FDA-cleared by the end of 2026 and introduced to the market. CO2 (Solaria): Currently sold in the U.S. only. Mizrahy said it is sourced from a U.S. manufacturer with modifications and InMode software. He noted InMode does not sell it in Canada because it lacks Health Canada clearance. He also said the company is developing its own CO2 laser intended to expand sales to additional geographies, though regulatory processes—especially in Europe under MDR—could take time. On the Envision platform for ophthalmology and optometry, Mizrahy said roughly 95% of customers are optometrists who use the technology to help relieve dry eye. He said the company is working on an FDA study to obtain clearance to market it for dry eye; in the meantime, it markets the system based on its current clearance around increasing blood circulation and building collagen. Mizrahy said the dedicated Envision team consists of 30 salespeople and a director-level manager reporting to the North America president. The team covers the entire U.S. and also supports sales in Canada, and the first quarter was the first period in which InMode used a dedicated team for a single product. “It’s very early to judge,” he said, adding that initial signs suggest the concept is working and could be applied to other products if successful. On international expansion efforts, Mizrahy provided an update on newer direct subsidiaries. He said the Argentina subsidiary was established in late 2025 and has spent time securing regulatory clearances under the subsidiary’s name. With an office, initial sales hires, a clinical trainer, and a manager now in place, he said the company hopes to see sales results beginning in the second quarter of 2026. In China, Mizrahy said InMode continues to work through distributors in the medical field. He also said the company has an entity in Guangzhou that was established during COVID and remained dormant, but management has decided to use it as the “spa and aesthetic arm” in China. He said a manager has been hired and InMode is developing a special product line to differentiate from medical products to penetrate that segment, though he noted it is “not in full operation yet.” Malca said InMode ended the quarter with $537.2 million in cash and cash equivalents, marketable securities, and deposits, and generated $15.4 million in cash from operating activities during the period. On shareholder returns, Malca said the company repurchased $127.4 million of shares during 2025 and $52.7 million year to date under its 2026 repurchase program, representing 3.86 million shares. In the Q&A, management said it plans to continue executing the repurchase plan, while also keeping “all the options on the table” for capital allocation. Mizrahy noted the company has historically used buybacks to return capital and said it may also consider other approaches such as M&A and dividends. He also said InMode has explored acquisitions but has not progressed on any current opportunities, citing high private company valuations. He referenced two prior attempts to acquire an injectable company and a toxin company that did not proceed. Malca reiterated full-year 2026 guidance: Revenue: $365 million to $375 million Non-GAAP gross margin: 74% to 76% Non-GAAP income from operations: $73 million to $78 million Non-GAAP EPS (diluted): $1.33 to $1.38 Asked about gross margin phasing, Mizrahy said the company expects it to remain around 74% to 75% across quarters. Malca also announced he will step down as CFO and remain with the company as a consultant for the next six months to support a transition. InMode Ltd. (NASDAQ:INMD) is a medical technology company headquartered in Israel that develops, manufactures and markets devices for aesthetic and medical treatments. The company specializes in energy-based technologies, primarily radiofrequency platforms, designed to deliver minimally-invasive and non-invasive procedures. InMode's product portfolio encompasses a range of modular systems targeting body contouring, facial rejuvenation, skin tightening and other cosmetic applications. Key offerings include devices built on proprietary radiofrequency and radiofrequency-assisted lipolysis, enabling physicians to perform treatments such as tissue coagulation, skin resurfacing and subdermal volumizing with reduced downtime. The company distributes its technologies through direct sales operations and distribution partners, serving medical professionals across multiple geographies including North America, Europe, Asia Pacific and Latin America. The article "InMode Q1 Earnings Call Highlights" was originally published by MarketBeat.

Image source: The Motley Fool. Wednesday, May 6, 2026 at 8:30 a.m. ET Chief Executive Officer — Moshe Mizrahy Chief Financial Officer — Yair Malca Co-Founder and Chief Technology Officer — Dr. Michael Kreindel Senior Vice President of Finance — Moshe Itskovitz Need a quote from a Motley Fool analyst? Email [email protected] Moshe Mizrahy: Thank you, Miri, and to everyone for joining us. With me today are Dr. Michael Kreindel, our Co-Founder and Chief Technology Officer; Yair Malca, our Chief Financial Officer; and Mr. Moshe Itskovitz, our Senior VP of Finance. Following our prepared remarks, we will be available to answer your questions. We executed in line with our expectations in Q1 2026. In addition, we are seeing early sign of stabilization, particularly in the U.S. and believe that this quarter reinforce our confidence that 2026 is moving in the right direction. I would like to start by reviewing InMode's progress in North America. As you know, we brought in new leadership at the end of Q3 2025, including new North American President and Vice President. While it's still early, the energy and cultural shift are already having a positive impact. We have transitioned from our long-standing East-West structure to unified North American model, bringing Canada and Gulf Coast under the same organization. This is driving better coordination and clearer accountability. We also implemented a key structure change in January 1, 2026. The Envision team, our ophthalmology and optometry sales force now operate independently. This creates more focused model that we believe will support stronger execution over time. March delivered particularly strong progress, reinforcing our confidence that this change are beginning to bear fruit. That said, we are looking for sustained consistency before calling it a long-term trend. On the international market, we continued to operate in over 100 countries with most of our businesses driven by our direct sales to local offices and supported by distributor partnerships. Europe remains a strong region for us with solid performance and meaningful room for continued growth. In Asia, performance is more mixed, consistent with what we saw last year, though we are making progress in key markets, including China, where we see significant long-term potential. Onto laser, the Pico and the CO2 laser performed well, recently introduced were meaningful contribution to our Q1 revenue performance and are strategically important for our long-term growth. They extended the range of procedures our physicians can offer and to enable combination of treatment, which are increasingly in demand. Physicians are looking for comprehensive solutions from a single partner, and these platforms support a one-stop shop office. They may put pressure on our gross margin, but they play a critical role in strengthening our competitive position and deepening our customers' relationship. on the broader market environment, we are seeing sign of stabilization. Demand for aesthetic procedures was again pressured in the first quarter of 2026 by macroeconomic headwinds. But as we have said many times before, we believe that the demand for aesthetic procedure will not go away. It may be deferred, but it will return. Now let me turn the call over to Yair, the Chief Financial Officer, who will talk you -- walk you through financial numbers. Yair? Yair Malca: Thanks, Moshe, and hello, everyone. Thank you for joining us. As announced earlier this morning, I will step down as CFO and remain with the company as a consultant for the next 6 months to support a smooth transition. After 9 years with the company, I am proud to have been part of its journey from driving growth and supporting our expansion to helping lead our transition to the public markets. It's been a privilege to work closely with our dedicated employees and build a foundation of financial discipline and transparency. Even during recent macroeconomic headwinds, the company's strong financial position and resilience have enabled us to navigate challenges, including the global pandemic, while consistently prioritizing stability and our people. As I look ahead to new endeavors, I am confident that this discipline and long-term approach will continue to guide the company's success. With that said, let's get to the Q1 results. Starting with total revenue, InMode generated $82 million in the first quarter of 2026, up 5% from $77.9 million in the same quarter last year. Growth in Q1 was led by strong performance in the U.S. market. Moving to our international operations. Sales outside the U.S. totaled $38.7 million in Q1, representing 48% of total sales and an increase of 2.65% compared to Q1 of last year. Gross margin in the first quarter of 2026 was 75% on a GAAP basis compared to 78% in the first quarter of 2025. Non-GAAP gross margins were 75% in the first quarter of 2026 compared to 79% in the first quarter of 2025. In Q1 2026, our minimally invasive technology platform accounted for 77% of total revenues. To support our operations and growth, we currently have a sales team of more than 298 direct reps and 73 distributors worldwide. GAAP operating expenses in the first quarter were $51.5 million, a 13.7% increase year-over-year. GAAP sales and marketing expenses increased to $42.9 million in the first quarter compared to $39.7 million in the same period last year. The year-over-year increase was primarily driven by increased sales expenses tied to the restructuring of the North America sales organization and headcount expansion from 2025 subsidiary build-outs, along with higher commission expense in line with a stronger sales performance. Next, we look at share-based compensation, which increased to $2.7 million in the first quarter of 2026. On a non-GAAP basis, operating expenses were $47.8 million in the first quarter compared to a total of $43.1 million in the same quarter of 2025, representing an 11.1% increase. GAAP operating margin for Q1 was 12%. Non-GAAP operating margin for the first quarter of 2026 was 17% compared to 23% for the same -- for the first quarter of 2025. This decrease was primarily attributable to the increase in cost of goods and, as mentioned before, the new structure of the North America sales team implemented towards the end of 2025 and subsidiary establishments in the later part of 2025. GAAP diluted earnings per share for the first quarter were $0.18 compared to $0.26 per diluted share in Q1 of 2025. Non-GAAP diluted earnings per share for this quarter were $0.25 compared to $0.31 per diluted share in the first quarter of 2025. As of March 31, 2026, the company had cash and cash equivalents, marketable securities and deposits of $537.2 million. We also returned meaningful capital to shareholders, repurchasing shares in the amount of $127.4 million during 2025 and $52.7 million year-to-date under our new 2026 repurchase program, representing 3.86 million shares this year. With this flexibility, we remain well positioned to pursue a full range of capital allocation opportunities. This quarter, InMode generated $15.4 million from operating activities. Before I turn the call back to Moshe, I'd like to reiterate our guidance for 2026. Revenues between $365 million to $375 million; non-GAAP gross margin between 74% and 76%; non-GAAP income from operations between $73 million and $78 million; non-GAAP earnings per diluted share between $1.33 to $1.38. I will now turn over the call back to Moshe. Moshe Mizrahy: Thank you, Yair. Thank you very much. Operator, we're ready for Q&A. Operator: [Operator Instructions] The first question comes from Mike Matson with Needham. Joseph Conway: This is Joseph on for Mike. And Yair, I wish you the best in your next ventures. Maybe just a question on the next laser launch, I believe the Erbium laser. Can you remind us of the time line of that? Was that end of the year? And just comparing to the Pico and the CO2 laser, is this product more just filling a gap that can do a different procedure versus the Pico or CO2? Or is it -- maybe it's much more differentiated? Just wondering how we should think about that. And then, under the assumption that this launches at the end of the year, should we expect further impact to gross margin in 2027 from this increased mix of laser platforms? Moshe Mizrahy: Okay. You asked 3 questions about 3 different lasers. First, the laser that we introduced to the market in the beginning of this year, sometime in February was not Erbium, it was Pico laser. The Erbium laser is still under development. And we hope to finalize the development of the Erbium, which is developed in Israel and get into the FDA clearance sometime in the next month or 2. So basically, we hope that by the end of this year, we will have it cleared by the FDA, and we can introduce it to the market. Now the third laser that you mentioned, the CO2, the one that we're having today and selling today, which called the Solaria, it's a CO2 laser that we buy from U.S. manufacturer with several modifications that we made it to be -- looks like and with the software of InMode. And we sell it quite nicely throughout U.S., not in Canada because they don't have Health Canada clearance to sell it [ in the U.S. ]. So this product is being sold only in the U.S. At the same time, we are developing our own CO2, which will enable us to expand the market and the territories to almost everywhere, but that will take time because regulation today, it's a long process, mainly in Europe when you have to clear it through the MDR and not the MDD process that recently changed. Anything else about those lasers? Joseph Conway: No, I think that's all good and clear. Appreciate that. Maybe just one more follow-up question. Just wondering how your newer direct subsidiaries, I think Thailand and Argentina were established in 2025. How have those been growing? And then could you also remind us on the time line for China? I believe that was maybe one of the next targets for this year. So maybe just what products you're targeting to get into China and then the time line of when that could happen? Moshe Mizrahy: Okay, let's start with Argentina. Argentina was established late 2025. It took us some time, 2 months to get all the clearances from the regulatory body in Argentina under our name in our subsidiary. Now everything is almost ready. We have an office. We have 1 or 2 salespeople. We have a clinical trainer. We have a manager. And hopefully, Q2 in 2026, we will see some results. Until now, it was more like a setup organizing all the regulatory clearances. Hopefully, Q2 in this year, they will start delivering sales as well. Argentina is not very big country compared to Brazil and others, but we believe that there is a market there. There are major changes in the macroeconomics in Argentina recently. And we felt that this is the best time to establish a subsidiary there and go direct. Regarding China. In China, we continue to work on the medical field with our distributors. But we have decided -- I don't know if everybody knows, but during the COVID, we have established a company in Guangzhou, which was a sleeping company for all the time until today. And we decided right now to use this company, which is fully owned by us to become the spa and aesthetic arm of InMode in China. We hired a manager and -- who is well acquainted with the spa and the aesthetic -- not aesthetic, I would say the cosmetic more or less in China, and we're developing right now special products to distinguish the product line from the medical in order to penetrate this segment of the market in China. But it's not in full operation yet. Operator: [Operator Instructions] Our next question comes from Matt Miksic with Barclays. Matthew Miksic: So, on ophthalmology, I was wondering if you could -- and I've been hopping around a few call, so apologies if it's already been covered, but maybe an update on how the U.S. sales reorg and management structure is driving that growth, what your plans are there? Maybe what some of the early results you've seen there and some of the upcoming milestones? And I have one quick follow-up. Moshe Mizrahy: Yes. Well, I'm sure everybody knows that we have a platform, which is called the Envision for the ophthalmology and optometry. By the way, 95% of the customers are not ophthalmologists, they are more optometrists, which are doing treatment to relieve dry eye. We're working on the study for the FDA to get clearance. And therefore, right now, we don't market it under dry eye treatment, but rather on what we have the clearance. And this is increased blood circulation and build some collagen, which we know that also help for dry eye. The team is 30 salespeople and a manager. The manager is a director level. He reports to the President of North America. It's part of the North American team. It's not totally separate company. It's not even a division. And they cover the entire U.S. They are not territory based. They cover the entire U.S. and also supporting sales of Envision in Canada. This is the first time that we separate the product and the first quarter that we have a special team selling one product from our portfolio. We hope that this model will be successful because if -- yes, we might do it on other products as well in the future. But I believe it's very early to judge. It's only 3 months. So far, it seems like there are -- it seems like that the concept is working. And although to be responsible for the entire U.S. and Canada with 30 people, it's a little bit big territory, but we did it. And we'll see. Let's see the results throughout the year, and then we'll decide if that's successful or not. Matthew Miksic: That's great. And just a question on -- and again, I'll make the same apology if you'd covered this. The plans to repurchase shares, use of cash. You've done a good job of putting that cash back to work, giving back to shareholders as volumes were slowing and the market was kind of troughing here. How does that strategy play out this year? How are you thinking about capital allocation at this point? Yair Malca: So this is Yair. We started -- as you know, we announced a buyback plan earlier this year, and we started executing on that. So far, we purchased over $3.8 million under that plan. Moshe Mizrahy: 8 million shares. Yair Malca: And 8 million shares, sorry -- 3.8 million shares under the plan, and we continue to -- we plan to continue to execute on the plan. Other than that, Moshe, do you want to elaborate about capital allocations? I think all the options are on the table. Moshe Mizrahy: Well, we always say the same thing, all the options on the table. We will -- we are allowed to do 10% of the outstanding shares every year without paying dividend tax, and we're doing it year-over-year. So far, I would say once we completed this 6.5 million shares, I believe it's another 2.5 million that we have to buy. We already did that 6 years, 6x, and we returned $600 million to the shareholders. If you ask me if that helped the share price, so far not. And therefore, it's always a question mark, whether to continue or not to return capital to the shareholders with this type of operation only by buyback. Hopefully, now when the company continue to be a public company, I'm sure everybody knows that the last year, 2025 was a very tough year for InMode because of the failed project that tried to sell the company without success. And we remain public. I believe it's important also to the team and to the people who felt unsecured during a very long time. And now maybe we will consider other ways to allocate capital to the shareholders; M&A, dividends and others. Everything is on the table and everything is open. Operator: The next question comes from Sam Eiber with BTIG. Sam Eiber: Yair, I just want to say thank you for all the access over the years. It was really nice getting to work together. Hopping between a few calls this morning, so apologies if this question already got asked. But maybe just following back up on capital allocation and maybe diving a bit deeper in terms of appetite for M&A. I know it's something that you guys have always been considering, but haven't seen any kind of deals over the last several years. I guess is that something that considering where markets are at this moment, willing to reevaluate? Or is it really more focused on still buybacks here? Moshe Mizrahy: Well, I cannot say more than what I did. Yes, M&A opportunities are being explored. We have nothing that are in any stage, but we're always checking because we believe that we did a lot of buyback. And if we have a candidate or a company to acquire in order to synergize either on the product level or the technology level or the customer level, we will explore. The only problem is right now, private company prices are very high and unfortunately, we were unable to acquire. We did 2 attempts, as you know, to buy an injectable company and to buy a toxin company, but we gave price which was probably not the best for this company's shareholders. Therefore, it was not accepted, but we will continue to try. Operator: The next question comes from Michael Toomey with Jefferies. Michael Toomey: This is Michael Toomey jumping on for Matt at Jefferies. I just had a question on what you're seeing on the broader aesthetics market, not just the energy-based side, but you mentioned the interest in injectables, but how is the broader aesthetic market growing today? And any difference there between broad aesthetics injectables and kind of energy-based devices? Moshe Mizrahy: Well, I believe that there are a few injectable companies which are public companies. And if you look at them, you will realize that in the last -- in 2025, they didn't do that good, but they see some sign of momentum in 2026. One thing I want to say, I mean, the energy-based device companies are competing on the same marginal dollar that people has for aesthetic. And on the other side, other than energy-based devices, GLP-1 took a lot of money from this industry, a lot of money. And all the new product, boosters, biosimulator, exosomes are also competing very toughly with energy-based devices, and some of them are doing very well. Now that means that in the future, and that's what we thought when we gave an offer to injectable companies, energy-based devices will need either strategically cooperation or M&A or mergers with other type of aesthetic solution in order to be a one-stop shop. As of now, we know that several companies like Alma signed a distribution agreement with fillers. I know that there was another Spanish company, Sinclair that actually closed all the EBD operation and stayed only with the injectables. But I didn't see yet a major company that actually offer both energy-based device treatment and all the other, I would say, injectables, exosome, biosimulator and other stuff that also compete on the same dollar on -- which are the same -- what I call aesthetic dollar. And the reason for that, the main reason for that is that it's 2 different operations. You don't have an engineer that knows how to develop EBD or a pharma product, and you don't have a salesman who knows how to sell energy-based device for $100,000 and at the same time, to sell fillers or toxin for $100. Should need to be 2 separate operations. And in the future, I do believe that it will come. Michael Toomey: Okay. That's great. And just a follow-up as well. With the gross margin new guides, anything you can comment on the phasing through the year? Moshe Mizrahy: On the what, phasing? Phasing throughout the quarter. Michael Toomey: For the gross margin? Moshe Mizrahy: We believe it will stay the same, like 74%, 75%. Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Moshe Mizrahy, InMode's CEO, for any closing remarks. Moshe Mizrahy: Okay. Thank you, everybody. Thank you for being with us today. Before I close the call, I want to thank to our Chairman, Dr. Michael Anghel, who worked with us for, I would say, 8 years as a Director and as a Chairman. We enjoyed him very much. He is leaving, and I want to wish him success in the future. He was very helpful and very -- he contributed a lot to InMode. And the second guy that I want to thank personally and on behalf of the company is Yair Malca, our Chief Financial Officer for 9 years now, even before the IPO, correct, isn't it? Even before the IPO, we hired him. He did a great job taking this company into an IPO and then maintaining everything that we need to do as a public company with all the reporting, talking with investors, talking with analysts. So thank you, Yair, for everything you did for us and all the contributions that you brought to this company. And I wish you success in your new career. Yair Malca: Thank you very much. Moshe Mizrahy: Hopefully, the war in Israel will end and everybody will go back to a normal life, including us, and we will continue to do our best. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in InMode, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and InMode wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $473,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,204,650!* Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 203% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 6, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends InMode. The Motley Fool has a disclosure policy. InMode (INMD) Q1 2026 Earnings Call Transcript was originally published by The Motley Fool

Management attributes Q1 2026 performance to early signs of stabilization in the U.S. market following a period marked by macroeconomic headwinds and organizational restructuring. The company transitioned from a legacy East-West structure to a unified North American model to drive better coordination and clearer accountability across the U.S. and Canada. A focused sales model was implemented for the Envision platform, with a dedicated 30-person team operating independently of the broader portfolio to improve execution in ophthalmology and optometry. Strategic expansion into the laser market via Pico and CO2 platforms is intended to create a 'one-stop shop' for physicians, despite these products exerting downward pressure on gross margins. Management observes that while aesthetic procedure demand remains pressured by macro factors and competition from GLP-1 medications, they believe demand is deferred rather than lost. International performance remains mixed, with Europe showing solid growth while Asia requires more targeted progress, particularly through a new direct spa and aesthetic arm in China. Full-year 2026 revenue guidance of $365 million to $375 million assumes continued stabilization and consistent execution from the restructured North American sales force. The company expects to maintain non-GAAP gross margins between 74% and 76%, reflecting the increased mix of lower-margin laser platforms in the portfolio. Management anticipates FDA clearance for a new Erbium laser by the end of 2026, which will further expand the range of combination treatments available to physicians. The company is developing an in-house CO2 laser to bypass current regulatory limitations in international markets like Canada and Europe under new MDR processes. Strategic focus in China will shift toward a fully-owned subsidiary in Guangzhou to penetrate the spa and cosmetic segments with specialized product lines. CFO Yair Malca announced his departure after 9 years, transitioning to a consultant role for 6 months to ensure financial continuity. Operating expenses increased 13.7% year-over-year, driven by the North American sales restructuring and headcount expansion from 2025 subsidiary build-outs. Management acknowledged that the failed 2025 project to sell the company created internal uncertainty, which they are now addressing by reaffirming their status as a public entity. The ongoing conflict in Israel was noted as a background factor, though management expressed hope for a return to normal operations. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management clarified that the Pico laser launched in February, while the Erbium laser is currently under development with FDA clearance expected late this year. The current CO2 laser (Solaria) is sourced from a U.S. manufacturer, but an in-house version is being developed to enable global expansion into territories with stricter regulatory requirements. Gross margins are expected to remain stable at 74-75% despite the shift toward laser platforms. InMode has returned $600 million to shareholders via buybacks over six years but noted these actions have not significantly boosted the share price. Management is now considering M&A and dividends as alternative ways to allocate capital, though high private company valuations have hindered recent acquisition attempts. The company remains interested in 'one-stop shop' synergies, specifically targeting injectable or toxin companies to complement their energy-based devices. Management explicitly noted that GLP-1 weight-loss drugs have diverted significant consumer spending away from the aesthetic industry. Newer treatments like exosomes and biostimulators are also competing for the same 'aesthetic dollar,' reinforcing the need for energy-based device companies to diversify into injectables. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

YOKNEAM, Israel, May 6, 2026 /PRNewswire/ -- InMode Ltd. (Nasdaq: INMD) ("InMode"), a leading global provider of innovative medical technologies, today announced its consolidated financial results for the first quarter of 2026. First Quarter 2026 Highlights: Management Comments "While the macroeconomic environment remains challenging, our total revenue this quarter reached our expectations, however our profitability was lower than expected," said Moshe Mizrahy, Chief Executive Officer of InMode. "We are continuing to re-shape our organization in North America and in Europe by enhancing our sales and management teams. While the demand in the aesthetics market may be deferred, it will not be diminished, and we believe we are well positioned for its return." First Quarter 2026 Financial Results Total GAAP revenues for the first quarter of 2026 were $82.0 million, an increase of 5% compared to $77.9 million in the first quarter of 2025. Yair Malca, Chief Financial Officer of InMode added, "We are encouraged to report that Q1 revenue increased 5% year over year, with the U.S. contributing meaningfully to this growth. These results reflect our ability to execute consistently, even in a softer market environment and expand outside of the U.S." GAAP gross margin for the first quarter of 2026 was 75%, compared to 78% for the first quarter of 2025. *Non-GAAP gross margin for the first quarter of 2026 was 75%, compared to 79% for the first quarter of 2025. GAAP operating margin for the first quarter of 2026 was 12%, compared to 20% in the first quarter of 2025. *Non-GAAP operating margin for the first quarter of 2026 was 17%, compared to 23% for the first quarter of 2025. These decreases were primarily attributable to the increase in cost of goods, the new structure of the North America sales team implemented towards end of 2025 and subsidiary establishments in the latter part of 2025. InMode reported GAAP net income of $11.6 million, or $0.18 per diluted share, in the first quarter of 2026, compared to $18.2 million, or $0.26 per diluted share, in the first quarter of 2025. On a *non-GAAP basis, InMode reported net income of $15.9 million, or $0.25 per diluted share, in the first quarter of 2026, compared to $21.4 million, or $0.31 per diluted share, in the first quarter of 2025. As of March 31, 2026, InMode had cash and cash equivalents, marketable securities and short-term bank deposits of $537.2 million. "In a quarter marked by ongoing macroeconomic uncertainty, we remained focused on what we can control: driving profitability, generating cash, and operating the business as usual. We also returned meaningful capital to shareholders, repurchasing $127.4 million of shares during 2025 and $52.7 million year to date under our new 2026 repurchase program, representing 3.86 million shares. With our strong financial position and continued flexibility, we remain well positioned to pursue a full range of capital allocation opportunities," concluded Malca. Departure of Chairman; Resignation of Chief Financial Officer The Company announced today that Dr. Michael Anghel has resigned from the Company's Board of Directors, effective May 5, 2026. His decision was not related to any disagreements with the Company's management, Board, or operations. The Company thanks Dr. Anghel for his service and wishes him continued success. Dr. Hadar Ron has been appointed Interim Chair of the Board, effective immediately. Separately, Yair Malca has stepped down from his role as Chief Financial Officer, effective May 5, 2026. The Company appreciates his contributions and thanks him for his service. To support a smooth transition, Mr. Malca will remain engaged with the Company in a consulting capacity for at least six months. 2026 Financial Outlook Management provided an outlook for the full fiscal year ending December 31, 2026. Based on current estimates, management expects: Revenues between $365 million and $375 million *Non-GAAP gross margin between 74% and 76% *Non-GAAP income from operations to be between $73 million and $78 million *Non-GAAP earnings per diluted share between $1.33 and $1.38 This outlook is not a guarantee of future performance, and stockholders should not rely on such forward-looking statements. See "Forward-Looking Statements" for additional information. *Please refer to "Use of non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A reconciliation between U.S. GAAP and non-GAAP Statement of Income is provided following the financial statements that are included in this release. Non-GAAP results exclude share-based compensation, expenses related to independent transaction committee review (representing non-recurring cost) and related income tax adjustments where applicable. However, these estimates are based on management's current estimates, which may be updated. The Current Situation in Israel Regarding the current situation in Israel, on October 9, 2025, a new cease-fire agreement between Hamas and Israel began, and the hostilities have formally paused after two years of conflicts. Moreover, On February 28, 2026, the United States and Israel launched coordinated joint military strikes against Iran, targeting military, governmental, and nuclear-related sites. Iran subsequently responded with missile and drone attacks against targets in the region and sought to restrict commercial shipping traffic through the Strait of Hormuz. On April 7, 2026, a two-week ceasefire established and was extended on April 21, 2026, by the U.S government, amid ongoing negotiations, while a U.S. naval blockade of Iran continued. The scope and severity of ongoing conflicts in Gaza, Northern Israel, Lebanon, Iran, and the broader region are unpredictable and could escalate any time. To date, our operations have not been materially affected. We continue to monitor political and military developments closely and examine the consequences for our operations and assets. Use of Non-GAAP Financial Measures In addition to InMode's operating results presented in accordance with GAAP, this release contains certain non-GAAP financial measures including non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating margin, non-GAAP gross margin and non-GAAP income from operations. Because these measures are used in InMode's internal analysis of financial and operating performance, management believes they provide investors with greater transparency of its view of InMode's economic performance. Management also believes the presentation of these measures, when analyzed in conjunction with InMode's GAAP operating results, allows investors to more effectively evaluate and compare InMode's performance to that of its peers, although InMode's presentation of its non-GAAP measures may not be strictly comparable to the similarly titled measures of other companies. Schedules reconciling each of these non-GAAP financial measures are provided as a supplement to this release. Reconciliations of non-GAAP gross margin, non-GAAP income, and non-GAAP earnings for management's projections of such non-GAAP financials for the 2026 fiscal year are not available without unreasonable effort due to the variability, complexity and limited visibility of certain reconciling items. These reconciling items could have a significant and unpredictable impact on our future GAAP results. Conference Call Information Mr. Moshe Mizrahy, Chief Executive Officer, Dr. Michael Kreindel, Co-Founder and Chief Technology Officer and Mr. Yair Malca, Chief Financial Officer, will host a conference call today, May 6, 2026, at 8:30 a.m. Eastern Time to discuss the first quarter 2026 financial results. The Company encourages participants to pre-register for the conference call using the following link: https://dpregister.com/sreg/10207930/103b6ad5664. Callers will receive a unique dial-in number upon registration, which enables immediate access to the call. Participants may pre-register at any time, including up to and after the call start time. For callers who opt out of pre-registration, please dial one of the following teleconferencing numbers. Please begin by placing your call 10 minutes before the conference call commences. If you are unable to connect using the toll-free number, please try the international dial-in number. U.S./Canada Toll-Free Dial-in Number: 1-833-316-0562 Israel Toll-Free Dial-in Number: 1-80-921-2373 International Dial-in Number: 1-412-317-5736 Webcast URL: https://event.choruscall.com/mediaframe/webcast.html?webcastid=7s0HUsXw At: 8:30 a.m. Eastern Time 5:30 a.m. Pacific Time The conference call will also be webcast live from a link on InMode's website at https://inmodemd.com/investors/events-presentations/. A replay of the conference call will be available from May 6, 2026, at 12 p.m. Eastern Time to May 20, 2026, at 11:59 p.m. Eastern Time. To access the replay, please dial one of the following numbers: Replay Dial-in U.S. /Canada TOLL-FREE: 1-855-669-9658 Replay Dial-in TOLL/INTERNATIONAL: 1-412-317-0088 Replay Pin Number: 8622780 To access the replay using an international dial-in number, please select the link below: https://services.choruscall.com/ccforms/replay.html A replay of the conference call will also be available for 90 days on InMode's website at https://inmodemd.com/investors/. About InMode InMode is a leading global provider of innovative medical technologies. InMode develops, manufactures, and markets devices harnessing novel radio frequency ("RF") technology. InMode strives to enable new emerging surgical procedures as well as improve existing treatments. InMode has leveraged its medically accepted minimally invasive RF technologies to offer a comprehensive line of products across several categories for plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology. For more information about InMode, please visit www.inmodemd.com. Forward-Looking Statements The information in this press release includes forward-looking statements within the meaning of the federal securities laws. These statements generally relate to future events or InMode's future financial or operating performance, including the actual amount of share repurchases made by the Company, if any. Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. In some cases, you can identify these statements because they contain words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will," "would" and similar expressions that concern our expectations, strategic plans or intentions. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Consequently, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in InMode's Annual Report on Form 20-F filed with the Securities and Exchange Commission on February 10, 2026, and our subsequent public filings. InMode undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which pertain only as of the date of this press release. Logo - https://mma.prnewswire.com/media/1064477/5954733/InMode_Logo.jpg View original content to download multimedia:https://www.prnewswire.com/news-releases/inmode-reports-first-quarter-2026-financial-results-quarterly-gaap-revenue-of-82-million-represents-5-year-over-year-increase-302763182.html

Conference call to be held on Wednesday, May 6, 2026, at 8:30 a.m. Eastern Time YOKNEAM, Israel, April 13, 2026 /PRNewswire/ -- InMode Ltd. (Nasdaq: INMD), a leading global provider of innovative medical technologies, announced today that it expects to release its financial results for the first quarter of 2026 before the Nasdaq market opens on Wednesday, May 6, 2026. InMode is currently finalizing its financial results for the first quarter of 2026. While complete financial information and operating data are not yet available, set forth below are certain preliminary results of InMode's financial results for such period, subject to final adjustments and other developments that may arise between now and the time such financial results are finalized. Based on preliminary results, management expects: Revenue for the first quarter of 2026 to be in the range of $81.5 million to $81.7 million Non-GAAP1 gross margin to be in the range of 75% to 76% Full year 2026 revenue to be in the range of $365 million to $375 million 1Please refer to "Use of Non-GAAP Financial Measure" below for important information about non-GAAP financial measures. Non-GAAP gross margin excludes share-based compensation. InMode will host a conference call to discuss the first quarter 2026 financial results on Wednesday, May 6 at 8:30 a.m. Eastern Time. Speakers on the call will include Moshe Mizrahy, Chief Executive Officer, Yair Malca, Chief Financial Officer and Dr. Michael Kreindel, Chief Technology Officer. The Company encourages participants to pre-register for the conference call using the following link: https://dpregister.com/sreg/10207930/103b6ad5664. Callers will receive a unique dial-in upon registration, which enables immediate access on the day of the call. Participants may pre-register at any time, including up to and after the call start time. For callers that opt out of pre-registration, please dial one of the following teleconferencing numbers. Please begin by placing your call 10 minutes before the conference call commences. If you are unable to connect using the toll-free number, please try the international dial-in number. U.S. Toll-Free: 1-833-316-0562 Israel Toll-Free: 1-80-921-2373 International: 1-412-317-5736 Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=7s0HUsXw At: 8:30 a.m. Eastern Time 5:30 a.m. Pacific Time The conference call will also be webcast live from a link on InMode's website at https://inmodemd.com/investors/events-presentations/. A replay of the conference call will be available from May 6, 2026, at 12:00 p.m. Eastern Time to May 20, 2026, at 11:59 p.m. Eastern Time. To access the replay, please dial one of the following numbers: Replay U.S. TOLL-FREE: 1-855-669-9658 Replay TOLL/INTERNATIONAL: 1-412-317-0088 Replay Pin Number: 8622780 A replay will also be available for 90 days on InMode's website at: https://inmodemd.com/investors/events-presentations/. About InMode InMode is a leading global provider of innovative medical technologies. InMode develops, manufactures, and markets devices harnessing novel radio frequency ("RF") technology. InMode strives to enable new emerging surgical procedures as well as improve existing treatments. InMode has leveraged its medically accepted minimally invasive RF technologies to offer a comprehensive line of products across several categories for plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology. For more information about InMode, please visit www.inmodemd.com. Forward-Looking Statements The information in this press release includes forward-looking statements within the meaning of the federal securities laws. These statements generally relate to future events or InMode's future financial or operating performance, including the actual amount of share repurchases made by the Company, if any. Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. In some cases, you can identify these statements because they contain words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will," "would" and similar expressions that concern our expectations, strategic plans or intentions. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Consequently, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in InMode's Annual Report on Form 20-F filed with the Securities and Exchange Commission on February 10, 2026, and our subsequent public filings. InMode undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which pertain only as of the date of this press release. Use of Non-GAAP Financial Measures In addition to InMode's operating results presented in accordance with GAAP, this release includes non-GAAP gross margin. Because this measure is used in InMode's internal analysis of financial and operating performance, management believes that it provides greater transparency to investors of management's view of InMode's economic performance. Management also believes the presentation of this measure, when analyzed in conjunction with InMode's GAAP operating results, allows investors to evaluate and compare the performance of InMode to that of its peers, although InMode's presentation of its non-GAAP measure may not be comparable to other similarly titled measures of other companies more effectively. Logo - https://mma.prnewswire.com/media/1064477/5910753/InMode_Logo.jpg View original content to download multimedia:https://www.prnewswire.com/news-releases/inmode-to-report-first-quarter-2026-financial-results-and-hold-conference-call-on-may-6--2026--expects-q1-revenue-between-81-5m-81-7m-reiterates-fy-2026-revenue-guidance-between-365m-375m-302739483.html

This article first appeared on GuruFocus. Total Revenue (Q4 2025): $103.9 million, up from $97.9 million in Q4 2024. Total Revenue (Full Year 2025): $370.5 million, a 6% decrease compared to 2024. International Sales (Q4 2025): $48.5 million, representing 47% of total sales, a 38% increase compared to Q4 2024. International Sales (Full Year 2025): $171.8 million, 46% of total sales, a 15% increase compared to 2024. Gross Margin (Q4 2025): 78% GAAP, 79% non-GAAP. Gross Margin (Full Year 2025): 79% non-GAAP. Minimally Invasive Technology Revenue (Q4 2025): 76% of total revenues. Minimally Invasive Technology Revenue (Full Year 2025): 78% of total revenues. Consumer Goods and Service Revenue (Full Year 2025): 22% of total revenue, up from 20% in 2024. GAAP Operating Expenses (Q4 2025): $55.3 million, an 11% increase year over year. GAAP Operating Expenses (Full Year 2025): $205.6 million, a 0.5% increase year over year. GAAP Operating Margin (Q4 2025): 25%. GAAP Operating Margin (Full Year 2025): 23%. Non-GAAP Operating Margin (Q4 2025): 27%, down from 32% in Q4 2024. Non-GAAP Operating Margin (Full Year 2025): 26%, down from 33% in 2024. GAAP Diluted EPS (Q4 2025): $0.42, compared to $1.14 in Q4 2024. GAAP Diluted EPS (Full Year 2025): $1.43, compared to $2.25 in 2024. Non-GAAP Diluted EPS (Q4 2025): $0.46, compared to $0.42 in Q4 2024. Non-GAAP Diluted EPS (Full Year 2025): $1.60, compared to $1.76 in 2024. Cash and Cash Equivalents (End of 2025): $555.3 million. Share Repurchase Program (2025): $127.4 million returned to shareholders. Cash from Operating Activities (Q4 2025): $22.7 million. Warning! GuruFocus has detected 9 Warning Signs with INMD. Is INMD fairly valued? Test your thesis with our free DCF calculator. Release Date: February 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. InMode Ltd (NASDAQ:INMD) reported a slightly better-than-expected fourth quarter despite challenges in the aesthetic space. Revenue from consumables and services increased slightly, indicating early signs of stabilization in patient activity. The company launched new CO2 laser platforms in 2025, expanding its product portfolio. InMode Ltd (NASDAQ:INMD) plans to introduce two new platforms in 2026, including a Korean-made Pico laser device. International sales, particularly in Europe, showed strong growth, with a 38% increase in Q4 compared to the previous year. Total revenue declined approximately 6% year over year, reflecting ongoing industry challenges. The North American market remains below historical demand levels, impacting overall performance. Gross margins decreased slightly, with GAAP gross margins at 78% compared to 79% in the previous year. Operating expenses increased, with a 13.5% rise in non-GAAP operating expenses in Q4 2025 compared to Q4 2024. The company anticipates a stabilization year in 2026, with revenue expected to be broadly in line with 2025, indicating limited growth prospects. Q: What signs are you seeing that suggest improving trends in the market? A: Moshe Mizrahy, CEO, noted that interest rates are starting to decline, which is beneficial for leasing packages used by doctors to purchase equipment. Additionally, there has been a slight increase in procedures and sales of consumables, indicating early signs of stabilization, particularly in Europe. Q: Can you provide any updates on strategic alternatives and the process involving Bank of America? A: Moshe Mizrahy explained that the Board of Directors is exploring strategic alternatives to enhance company value, with assistance from Bank of America. The management is not fully involved in this process. He also addressed a press release from Steel Partners about a potential acquisition, clarifying that there has been no direct contact with them. Q: What factors are contributing to the lower gross margin guidance for 2026? A: Yair Malca, CFO, mentioned that the introduction of new laser products, which typically have lower margins, is expected to impact gross margins. Additionally, tariffs on imports from Israel are affecting costs. Moshe Mizrahy added that while lasers are essential for the product portfolio, they generally have lower margins compared to InMode's other offerings. Q: How do you expect the new laser product launches to impact your market position and total addressable market (TAM)? A: Moshe Mizrahy stated that lasers are a fundamental part of the medical aesthetic market. The new laser products are expected to complement InMode's existing RF technology, creating a competitive advantage. However, the laser market is saturated, and prices are relatively low, which affects margins. Q: Can you provide insights into the international expansion and its impact on revenue? A: Moshe Mizrahy highlighted that new subsidiaries in Argentina and Thailand, along with expanded operations in Europe, are expected to increase international sales. However, the focus remains on growing both international and North American markets, with 80% of sales currently coming from direct subsidiaries. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Feb. 10, 2026, 8:30 a.m. ET Chief Executive Officer — Moshe Mizrahy Chief Financial Officer — Yair Malca Co-Founder and Chief Technology Officer — Dr. Michael Crindel Vice President, Finance — Rafael Liqueman Moshe Mizrahy: Thank you, Miri, and to everyone for joining us. With me today are Dr. Michael Crindel, our Co-Founder and Chief Technology Officer, Yair Malca, our Chief Financial Officer, and Rafael Liqueman, our VP Finance. Following our prepared remarks, we will be available to answer your question. The fourth quarter was slightly better than expected, even as our industry continued to face ongoing challenges driven by higher interest rates and softer customer demand in the aesthetic space. Despite this headwind, InMode Ltd. continued to benefit from its strong position and from the proven, long-lasting clinical outcomes and patient experience when using our technology and platforms. These strengths continue to position us as the leader in the market of minimally invasive aesthetic treatment, reflected in both superior patient outcomes and financial performance that remain among the best in the industry. While total revenue declined approximately 6% year over year, revenue from consumables and services increased slightly compared to last year. We believe this may represent early signs of stabilization in patient activity and usage levels across our installed base. We view 2026 as a stabilization year for the business following a prolonged period of industry softness. In 2025, we took the steps in our North American business. We appointed Michael Dennison as President of North America in October and unified our operation into a single organization spanning from Eastern U.S., Western U.S., and Canada. Given the timing of this leadership change, the impact on fourth quarter results was limited. However, we expect the new structure, leadership, and commercial initiatives to begin delivering tangible results in 2026. During 2025, we also laid the foundation for a more differentiated and focused commercial organization. Our sales force is now segmented across aesthetic and wellness with a dedicated team aligned to specific platforms. For Envision, we have established a specialized sales team with deep experience in the category, which we believe will drive increased penetration and improved sales productivity. Product innovation remains a key pillar in our strategy. In 2025, we launched our CO2 laser platforms, which are performing well and expand our portfolio. By enabling combined treatment, it further reinforces our position as a one-stop solution across core procedures. Looking ahead to 2026, we plan to keep innovating and introduce two new platforms: a Korean-made Pico laser device and a device that combines a new Morpheus technology with Erbium YAG laser. These upcoming launches are an important component of our long-term strategy. We are committed to innovation and, as part of our strategy, we launch two new platforms of all technologies per year. We see meaningful interest across our existing customer base and the new ones, and we believe these products will improve our overall value proposition. From a product mix perspective, most of our offering includes Morpheus8 or minimally invasive components. This reflects the depth of our portfolio and the comprehensive nature of the solutions we provide. From a financial standpoint, we currently expect total revenue in 2026 to be broadly in line with 2025, and we anticipate continued evolution in our product mix. More broadly, the industry has not yet fully recovered from the global economic slowdown. Demand in North America remains below historical levels. At the same time, we are encouraged by early signs of stabilization in the U.S. and gradual improvement in Europe, which we believe could provide incremental support to our performance going forward. Overall, we are focused on disciplined execution of our product roadmap, continued refinement of our sales team, and maintaining our leadership in innovative position in the aesthetic industry. Now I would like to turn the call over to Yair, our Chief Financial Officer. Yair? Yair Malca: Thanks, Moshe, and hello, everyone. Thank you for joining us. Before I begin to review our financial results, it is important to note that when comparing our year-over-year performance, 2024 included a one-time tax benefit. Therefore, we believe non-GAAP net income offers the most meaningful basis for comparing year-over-year results. Starting with total revenues, InMode Ltd. generated $103.9 million in the fourth quarter of 2025, up from $97.9 million in the same quarter last year. For full year 2025, revenue totaled $370.5 million, a 6% decrease compared to 2024. Moving to our international operations, the fourth quarter was a record revenue quarter for Europe, reflecting continued momentum across the region. Sales outside the U.S. totaled $48.5 million in Q4, representing 47% of total sales and an increase of 38% compared to Q4 of last year, driven primarily by Europe. For the full year 2025, sales outside the U.S. accounted for $171.8 million, or 46% of total sales, representing a 15% increase compared to 2024. Gross margins in 2025 were 78% on a GAAP basis compared to 79% in 2024. Non-GAAP gross margins were 79% for both the fourth quarter and the full year of 2025. In Q4 and in full year 2025, our minimally invasive technology platforms accounted for 76% and 78%, respectively, of total revenues. For the full year 2025, consumables and service accounted for 22% of revenue, an increase from 20% in 2024. To support our operations and growth, we currently have a sales team of more than 285 direct reps and 73 distributors worldwide. GAAP operating expenses in the fourth quarter were $55.3 million and $205.6 million for the full year, an 110.5% increase year over year, respectively. Sales and marketing expenses increased slightly to $48.4 million in the fourth quarter compared to $44.7 million in the same period last year. Sales and marketing expenses for the full year 2025 were $180.6 million compared to $181.4 million for 2024. The year-over-year decrease was primarily driven by lower sales commissions resulting from reduced sales as well as lower share-based compensation, partially offset by higher salaries and employee-related expenses. Next, we look at share-based compensation, which decreased to $2.5 million in the fourth quarter of 2025 and $11.0 million for the full year 2025. On a non-GAAP basis, operating expenses were $53.2 million in the fourth quarter, compared to $46.8 million in the same quarter of 2024, representing a 13.5% increase. For 2025, non-GAAP operating expenses were $195.8 million compared to $189.8 million in 2024. GAAP operating margin for Q4 and for full year 2025 was 25% and 23%, respectively. Non-GAAP operating margin for the fourth quarter of 2025 was 27% compared to 32% for the fourth quarter of 2024. Non-GAAP operating margin for full year 2025 was 26% compared to 33% in full year 2024. This decrease was primarily attributable to higher sales and marketing expenses. GAAP diluted earnings per share for the fourth quarter were $0.42 compared to $1.14 per diluted share in 2024, and $1.43 in 2025 compared to $2.25 in 2024. Non-GAAP diluted earnings per share for this quarter were $0.46 compared to $0.42 per diluted share in 2024, and $1.60 for 2025 compared to $1.76 for 2024. As of 12/31/2025, the company had cash and cash equivalents, marketable securities, and deposits of $555.3 million, and we returned $127.4 million back to the shareholders through a disciplined share repurchase program. This quarter, InMode Ltd. generated $22.7 million from operating activities. Before I turn the call back to Moshe, I would like to reiterate our guidance for 2026: revenues between $365 million and $375 million; non-GAAP gross margin between 75% and 77%; non-GAAP income from operations between $87 million and $92 million; non-GAAP earnings per diluted share between $1.43 and $1.48. I will now turn the call back to Moshe. Thank you, Yair. Operator, we are ready for the Q&A session. Operator: We will now begin the question-and-answer session. On your telephone keypad, please press star, then one to ask a question. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, press star, then two. The first question comes from Matt Miksic with Barclays. Please go ahead. Matt Miksic: Hey, thanks so much for taking the questions, and I appreciate all the color. So one on one of the comments that you made just now, and then I have one follow-up, if I may. You talked a little bit about encouraging signs of improving trends. I do not want to make too much of that. This is something we have talked about, and it has been some time now. So what, if anything, are you seeing that would suggest things are starting to perk up a little bit? And then, as I mentioned, I have one quick follow-up. Moshe Mizrahy: Well, thank you. Thank you. We see, first of all, the interest rates started to come down. That is a good sign for us, and that means that the interest rate for leasing packages for five years, which is the main vehicle for the doctors to purchase capital equipment, will probably come down as well, and we see some decline in the interest rate on lease packages as well. Second, I believe I said that in 2025, we see a slight increase in the procedures number. We see more sales in consumables, which represent the numbers of minimally invasive treatments. So between these two and the slightly increasing revenue in Europe, we believe that these are very early signs. I am not saying that we see the light at the end of the tunnel yet, but we see very, very, very, I would say, soft signs that encourage us that maybe the momentum or maybe the change is coming soon. Matt Miksic: Okay. That is super helpful. And then follow-up, I am not sure how much you are going to be willing to talk about it. So you probably already know the question is, but just comments that were in the press about strategic alternatives. You know, we view the stock as very attractively valued and has been for some time. Cash flows and margins are stable and being able to buy back shares and maneuver in a way that many companies your size cannot, just because of your margin structure, cash flows, and tax benefits, and so on. What can you tell us about the process and maybe the timing as to when we might hear something as a result coming out of it? Moshe Mizrahy: Well, you know that in the last two and a half years, we actually implemented a buyback program, and we bought back stock for almost $580 million. Following that, the Board of Directors decided to look for some other strategic alternatives to improve the value of the company, which we believe, and the Board of Directors believes, is still very low. So they are considering several types of strategic alternatives. They hired a bank in order to help them. I can say the name, Bank of America. And the process is done between the Board of Directors and the bank. The management is not fully involved in this process. I want to comment on one thing about the news that Steel Partners released to the market in the press release that they are willing to buy 51% of the company for $18 per share. So I wonder why they sent this letter to me as the CEO and to the Board of Directors. We do not have 51% of the company to sell. So the only way to buy 51% of InMode Ltd. is to do a tender offer, hire a bank, put some money in an escrow account, and offer it to the public, not to the CEO. I do not have 51% to sell and give them. But they did not do it. They just sent a letter to me and to the Board of Directors and later, one day after, they published it as a press release. Other than that, we have no contact with them whatsoever. Not myself, not the Board. We did not talk to them. We did not discuss it with them. We do not know why they put the press release out, but everything is possible in the U.S. Matt Miksic: I suppose so. Thanks so much. The next question comes from Danielle Joy Antalffy with UBS. Please go ahead. Danielle Joy Antalffy: Hey, good morning, everyone. Thanks so much for taking the question. Yair, this is just a question on the gross margin and the EBIT margin guide. It did come in a little bit lower. I appreciate revenues also coming in a little bit lower. What are the different levers you can pull there to drive a little bit more leverage? I guess, also, what I am getting at is how conservative is this guidance because you still have pretty good leverage even with revenue a little bit softer than what the Street was looking for? And then I have one follow-up. Moshe Mizrahy: Yair, do you want me to answer that? Yair Malca: No, I will take it, Moshe. First of all, learning from the past couple of years, we try to be as conservative as we can with our guidance. But to answer your specific question about the margin, Moshe mentioned in his script that one of the new products that we plan to launch is a Pico laser next year as well as the Erbium laser. Moshe Mizrahy: And lasers tend to have a lower gross margin. Yair Malca: As everyone in the industry knows very well. And we expect those two new lasers that we launch in 2026 to weigh in on our gross margins a little bit. Moshe Mizrahy: Let me add to what Yair said. The two reasons why the gross margin is going down: one, exactly what Yair said, we are getting into the laser development of new laser systems—Erbium YAG, CO2, Q-switched, maybe in the future Pico—but in the meantime, we have decided that in order to have those products in our portfolio, we need to find a reliable source to buy it from and bring it under InMode Ltd. brand name to the market. So the first product that we are buying and selling is a CO2 product. We will develop another CO2 in the future, but it is a CO2 product that we buy from an American company under their FDA clearance. We made it with some changes to comply with InMode Ltd. requirements as far as software and other elements, and we brought it to the market in 2025. In 2026, we intend to bring to the market two new products which we are going to buy from a Korean company. This is the Pico and a Q-switched lasers. Both platforms are very well known in medical aesthetics. But once we buy them and we bring them to the U.S., the cost to us is much higher than our internal manufacturing cost, and we need to take it as COGS. So the effect on the gross margin, plus the effect of the U.S. tariff—15% from all imports from Israel—will affect the gross margin to go in the neighborhood of 75%. Danielle Joy Antalffy: Okay. That is helpful. And then my next question was actually related to the laser launches. How much do you think this opens up the market to you incrementally in 2026 and 2027? I appreciate you have had products here before, but just how big is the laser portion of this market? And how much does your TAM increase by launching these products? Moshe Mizrahy: Well, you know, historically, the laser platforms are the bread and butter of medical aesthetics. We came to the market ten years ago with a new innovation using RF energy and not just laser. And we did very well because laser cannot penetrate deep, and RF penetrates as deep as you want if you are treating in a minimally invasive method and procedure. So it was a very new technology that we introduced to the market. Right now, we believe that in order to grow into the next level of product, we have to have the bread and butter as well, and this is the laser products: CO2, diode, Erbium, Pico, Q-switched—there are many of them. These are not new technologies because all of these technologies are well known in the medical aesthetic industry, I would say for at least 25 years. But we are bringing the new generation of lasers, and we come to the market, and we believe that the synergetic effect between our technology and the laser technology will create another competitive advantage. But unfortunately, the laser market is very saturated, and therefore prices of laser equipment are relatively low compared to InMode Ltd. products—compared to Ignite, compared to Optimus Max, compared to Morpheus. And therefore, the margins on them are relatively low compared to us. They are not relatively low, period. In addition to that, some of these products we are buying, we are acquiring from a Korean company or from an American company, and therefore, we have to share the margin with them. And that also will affect the margin. But basically, lasers for medical aesthetic companies long term, it is a must. It is not nice to have. Danielle Joy Antalffy: Got you. Thank you so much. Operator: The next question comes from Matt Taylor with Jefferies. Please go ahead. Michael Anthony Sarcone: Hey, good morning. This is Mike Sarcone on for Matt today. Thanks for taking the questions. I guess maybe just to start, Yair, can you help us on the quarterly phasing when we think about top line and margins through the year? Yair Malca: I think it is going to be very similar to 2025. As you see, the guidance is pretty much spot-on with our actuals for 2025, and I expect the quarterly distribution to be the same. Michael Anthony Sarcone: Okay, great. Thank you. And then just on the two new launches for this year, can you talk about what you have baked into the guide from a financial contribution standpoint? Moshe Mizrahy: Well— So I think—go ahead, Mike. I mean, the two products that we launched this year in North America are the Solaria, which is the CO2, and the APX RF, which is for increased blood circulation, and some doctors are using it for erectile dysfunction. These two products' contribution in 2025 was 35 times 60. It is about, I would say, $15 million. Michael Anthony Sarcone: Okay. And that is $15 million? Moshe Mizrahy: $15 million, yes. Michael Anthony Sarcone: Got it. Thank you. And any color on kind of new product contributions for 2026? Or are you not providing that? Moshe Mizrahy: Well, the two new products that we will bring in 2026—one of them is made by us, which is a combination platform of new technology of Morpheus. We do not want to elaborate what kind of a new technology. But for us, Morpheus is a technology, it is not a product, and we have some new ideas how to make the next generation of Morpheus, combined with Erbium YAG. Erbium YAG is a superficial treatment on the skin—200 micron, 150 micron—something for texture, and the Morpheus goes deeper. So basically, if you combine these two modalities in one platform, you give the dermatologists or the aesthetic surgeons or the aesthetic doctors the ability to combine these two treatments to get much better results. That is one product. The second product is a Pico laser we buy from a Korean company, a young and small Korean company that we identified, and we signed some kind of agreement with them, so we are exclusively selling their product in the United States. Pico is a very short pulse of laser. So Pico is used for all kinds of pigmented lesions, for tattoos, for melasma, and other skin indications that you are treating. These two products we believe will be well accepted, although we are not the first one with Pico. But with the other platform, it is unique, and we are the only one. So I do not know—I cannot give you any estimations how much we will sell from each one of them, but these are two products that we are launching, and we are launching with intensive marketing, I would say, activity. Michael Anthony Sarcone: Great. Thank you, Moshe and Yair. Operator: The next question comes from Joseph Conway with Needham. Please go ahead. Joseph Conway: Moshe, Yair, thank you very much for taking our questions. I guess maybe just a quick one. Obviously, we saw minimally invasive decline a little bit in 2025, while noninvasive more than doubled, so very strong growth there. I am just wondering if you can add some color as to whether this is mostly driven by the new product launches, the new lasers, or is there any industry shift that went on in 2025 that preferred the noninvasive treatments over the minimally invasive? Is this med spas growing faster than derm or surgeon clinics? Or, like I said earlier, is it mostly just new product launch related? Moshe Mizrahy: Well, I believe we said that before, but I will say it again. Typically, minimally invasive procedures cost much more than noninvasive. So if you want to do one Quantum treatment, it can cost you $4,000 to $7,000 per one treatment. When you want to do laser hair removal, you can buy a package of six treatments for $3,000. So it is $500 per treatment. So the basic procedures like hair removal, skin rejuvenation—these are relatively, I do not want to say cheap, relatively low-price treatments. And the costly treatments like Morpheus, like Quantum, like BodyTite are more expensive. And therefore, when you have only $2,000 for aesthetic a year, you first go to do hair removal and skin rejuvenation, and then you go to do skin or face reshaping. The procedures in 2025, although the numbers of procedures in 2025 were slightly above 2024, but taking into consideration that we added another 4,500 systems in 2025 to the market, the numbers did not grow. So we still do not see a major change in the number of procedures—the numbers of disposables, which means the numbers of procedures—that we are selling to the doctors. Joseph Conway: Okay. And another thing I once read— Moshe Mizrahy: This is something that I believe affects all the market, and that is the GLP-1. The GLP-1—35 million Americans are using GLP-1. So if they want to lose fat, instead of doing liposuction or BodyTite, they can lose fat with GLP-1. Long term, we believe it will help us because once you lose fat, you have loose skin, and you need to tighten the skin, and then minimally invasive is the best way because laser hardly tightens the skin. Joseph Conway: Yes. Okay. That makes perfect sense. And then just one more. It looks like, based off of your slides, that the number of countries that InMode Ltd. is operating in jumped by a considerable amount, I think at least 10 by my math. Just wondering there what countries did you enter in this quarter—distributors—or like 4Q? What was the split there? Are these more direct subsidiaries? I know last call you called out Argentina and Thailand as new direct subsidiaries. And then maybe if you could just expand on that a little bit more. Are you still continuing to emphasize the direct sales over the distributor sales? Is that going to be a mission in 2026, possibly to help the gross margin line? Any color on all that would be great. Much appreciated. Moshe Mizrahy: Well, you know, there is always the rule of 20/80. Twenty percent of your customers are making 80% of your revenue. So if we are adding more customers, these are relatively small because the big countries and the big markets we are covering anyway. But for example, I will give you an example. A small country like Austria—we have a subsidiary in Germany, so we opened a base in Austria as well. So this is another market. Although we do not have a distributor, it is direct from Germany. The same with Ireland and Scotland from the U.K., the same Belgium for France. The two new subsidiaries that we established in 2025—Argentina and Thailand—used to be distributors, but we were not very happy with these distributors, and this is the reason we thought it might be better if we open our own subsidiary because there is a potential in those countries. But when we add other countries in Africa that buy two, three systems, yes, there was a distributor who sold some product, but that is not adding much to our top line. Our top line will be to increase productivity and to increase market share in the big markets. And do not forget, 80% of our sales today are direct. That means that 13 subsidiaries are controlling 80% of our revenue and all other distributors only 20% of our revenue. Okay. Did I answer your question? Joseph Conway: Yes. Yes. Perfectly. Much appreciated, and that is helpful. Operator: The next question comes from Caitlin Cronin with Canaccord Genuity. Please go ahead. Caitlin Cronin: Hi, thanks so much for taking the questions. Just to start off, what are you specifically seeing in Europe that has been so encouraging? And do you continue to expect international to be a higher mix of revenues in 2026 than it has been historically? Moshe Mizrahy: Well, I do not know if I can say that. Although, adding two subsidiaries to the international and making bases in some countries with our existing subsidiaries—as I said before, Austria, Belgium, Scotland, Ireland—will increase our direct sales in those territories, and it might increase the total revenue from the international. But we also invested a lot of money and a lot of effort to—I do not want to say reorganize—but to streamline the operation in North America. We are combining the East, West, and Canada into one company. Instead of having three companies, we have now one company that is using the same product line and the same marketing under the same language, and we believe that will help the North American market as well. So to tell you whether or not the international will be higher than North America, we are not in a position. We would like both of them to grow. Caitlin Cronin: Understood. And how should we be thinking about R&D and sales and marketing spend this year? Moshe Mizrahy: What is the question? What do we think about R&D? Caitlin Cronin: R&D and sales and marketing spend this year—what levels in 2026 versus 2025? Moshe Mizrahy: Okay. On the R&D, although I do not think it needs to be measured as a percentage of revenue, and I said that several times before, we have an R&D team in Israel, which includes electronics, software, mechanical, clinical, and regulation—it is one team. The fact is that in 2026, we will increase the spending—not the spending, the investing—on R&D because we are initiating two big clinical studies for women's health, which are not just simple lasers, and that will cost money. Each one of them probably will be in the neighborhood of between $2 million to $4 million in 2026, and maybe a little bit in 2027. So that will increase the total expenditure on R&D. As far as marketing, when it is a little bit difficult to sell because of the softness of the market, and you want to keep your market share, you have to spend more on marketing—B2B, B2C, social media, conferences—which we are now planning to be in many of them all over the world. And the fact that we are bringing new products to the market also requires some more expenses—or more investing, I want to call it this way—on marketing. So, I mean, the percentages will be similar to 2025. We will not spend more, but we are more focused on specific spending and not general. Caitlin Cronin: Understood. Thanks so much. Operator: The next question comes from Sam Shimon Eiber with BTIG. Please go ahead. Sam Shimon Eiber: Hi, good morning. Thanks for taking the questions. Maybe I will ask them both upfront here. First, on capital allocation, would love an update on your priorities here in 2026, and if maybe any decisions are going to be held off until the end of this review process. Then the second question, just any update on the clinical work for the dry eye indication and FDA approval timelines? Thanks. Moshe Mizrahy: We are trying to get indication for the eye using bipolar RF, not IPL, because we believe that the IPL technology can do something, but the best results, as far as we know and we did some studies, is from RF, bipolar RF. So we initiated the process with the FDA. We met with the FDA, and the FDA has requested to do several safety tests on animals, and we did that to show the safety. We believe that sooner we will get from the FDA approval for the study that we are suggesting. We will do the study in the United States. This is not an easy study because there is no predicate, and therefore it is not a regular 510(k), it is 510(k) de novo. It takes more time. I would say that the study will last all over 2026 and maybe 2027. So sometime in 2027, I believe we will have the final clearance from the FDA. Sam Shimon Eiber: And on capital allocation? Yair Malca: Regarding capital allocation, the Board is evaluating all the capital allocation alternatives together with the strategic alternatives that we mentioned earlier on the call. As soon as we have some updates, obviously we will share. Sam Shimon Eiber: Great. Thank you. Operator: The next question comes from Dane Reinhardt with Baird. Please go ahead. Dane Reinhardt: Hey, thanks, guys, for the questions here. I think based on the slide deck that was posted, you had a really nice quarter here in system placements in the U.S. I think by our math, probably the first time that those actually grew year over year in over two years. But offsetting that, your systems revenue in the U.S. was still down double digits. So just trying to maybe parse out between the year-over-year growth in system placements and declines that we are still seeing in revenue. How much of that maybe is if some of those are just new ones that you are selling—some of those lower-priced lasers versus the RF devices—or how much of that even might be discounting just in the current environment where demand is a bit more subdued? Thanks. Moshe Mizrahy: The number of systems that we sold this year in North America—I am continuing to say North America because I want to include Canada—the number of platforms that we sold in 2025 was about 2,100 systems. It is about 100 systems below 2024. But the market is tough, the competition is strong, and therefore, the average selling price of a platform in 2025 was down 9% compared to 2024. Between these two, this is the decrease in the revenue in the U.S. And we did our best. I believe that in 2026, with what I said before—the encouraging signs, the lower interest rates, and maybe some kind of better consumer feeling—maybe we will keep it. And therefore, we said that 2026 for us is not going to be a growth year. It is going to be a stabilization year. We said that twice in the press release and also in my speech. We will be very happy if we will continue to sell $370 million with about $100 million EBITDA altogether worldwide. And therefore, it takes time to transition a company like InMode Ltd. We are not a small company. We have 660 people worldwide working, plus the manufacturing, which is another 200 people. And we have really made a lot of strategic thinking going forward to 2026, and I believe we are ready. Dane Reinhardt: And then the other question I had on the men's wellness Apex platform, I think you guys just introduced that in August at a user sales meeting. One, how is feedback from that platform going so far? And two, can you remind me, do you have a specialized sales force for that platform, or is that something that you are planning on doing in the future? Moshe Mizrahy: Which platform? Can you repeat your question? Which platform are you talking about? Dane Reinhardt: The Apex Men's Wellness. Moshe Mizrahy: Ah, the Apex. No. We do not have a special team to sell APAX. We have a special team in 2026, starting January 1, to sell the Envision. For us, it is a pilot. We did not want to go and cut the organization into pieces. So we decided that we will take one piece at a time, and Envision is important, and we are going to invest in the clinical study, and therefore Envision is the first product that we actually built a special team for, only in the United States now and also partially in Canada, that will sell Envision. The APAX is being sold with the other products with the same team under the same organization. Now, we are not pushing the APAX very much because we do not have yet the indication from the FDA. We are working on it, and we do not want to cross the line. So that is the most I can tell you now. Dane Reinhardt: Got it. And if I can squeeze one last one in there. Do you have the number of consumable units that you sold in the quarter? Moshe Mizrahy: I believe we do. Overall, 128,000. Dane Reinhardt: Got it. Thank you very much. Appreciate the questions today. Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Moshe Mizrahy, InMode Ltd.'s CEO, for any closing remarks. Moshe Mizrahy: Well, thank you, everybody. Thanks to all the analysts that are covering us. I want to thank all shareholders and a special thanks to InMode Ltd. employees worldwide. It was a tough year—2025 was not an easy year—for all of us, with major changes and major adjustments. And we hope to see you again in the first quarter. Thank you very much. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in InMode, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and InMode wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends InMode. The Motley Fool has a disclosure policy. InMode (INMD) Q4 2025 Earnings Call Transcript was originally published by The Motley Fool