Inspire Medical Systems, Inc. (INSP) AI Stock Analysis

Inspire Medical Systems, Inc. is a medical technology company based in Golden Valley, Minnesota, focused on developing minimally invasive treatments for obstructive sleep apnea. Founded in 2007, the company provides the Inspire system, a closed-loop neurostimulation technology designed for individuals with moderate to severe obstructive sleep apnea. The system continuously monitors breathing patterns and delivers mild stimulation to the hypoglossal nerve to maintain an open airway during sleep. Inspire operates globally within sleep medicine and neurostimulation therapies.

Annual revenue grew from $233.4M in FY2021 to $912.0M in FY2025, recording a 5-year revenue compound annual growth rate of 51.2% from FY2020 through FY2025. Gross margin remained steady, registering 85.7% in FY2021 and 85.4% in FY2025. Operating margin turned positive in FY2024 at 4.5% and rose to 5.6% in FY2025, while net income shifted from -$42.0M in FY2021 to $145.4M in FY2025. However, in the quarter ended June 30, 2026, quarterly revenue fell 7.6% year-over-year, even as quarterly earnings growth reached 308.4% and trailing twelve month revenue totaled $898.7M.

As of June 30, 2026, Inspire held $320.7M in cash and short-term investments against total debt of $29.1M, yielding a net cash balance of $291.6M. The balance sheet reflects a current ratio of 8.55 and a debt-to-equity ratio of 0.04 across $825.6M in shareholders' equity. In FY2025, the company generated $78.5M in free cash flow, funded $38.5M in capital expenditures, and spent $175.0M on share buybacks.

At a share price of $68.79, Inspire carries a market capitalization of $1.99B and an enterprise value of $1.70B. Its trailing price-to-earnings ratio of 15.2x sits below the 24.6x median of its US-listed Healthcare peers, while its forward price-to-earnings ratio of 59.2x is higher than the peer median of 17.3x. The stock trades at a price-to-sales multiple of 2.2x, lower than the peer median of 4.1x. Over the past year, the shares dropped 11.1%, compared to a 16.8% return for the S&P 500.

Wall Street coverage includes 4 Strong Buy, 0 Buy, 11 Hold, 2 Sell, and 1 Strong Sell recommendations. The mean price target of $68.00 indicates a 1.1% decline relative to the last close of $68.79. For the fiscal year ending December 31, 2026, consensus estimates anticipate revenue of $853.9M and an earnings per share decline of 48.4% to $1.25. Inspire exceeded earnings per share expectations in all of its last 4 quarters, and its next earnings release is scheduled for November 2, 2026.

This page is an AI-written research summary of Inspire Medical Systems, Inc. (INSP). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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