Operating margins have contracted sharply to 12.3% in 2026Q1, reflecting a failure to scale fixed costs as revenue growth decelerated to 5.3%.
| Sales/Revenue | 374.64M | 370.5M | 394.82M | 492.05M | 454.27M | 357.56M | 206.11M | 156.36M | 100.16M | 53.46M | 23.08M |
| Revenue Growth % | -4.53% | -6.16% | -19.76% | 8.32% | 27.05% | 73.49% | 31.81% | 56.11% | 87.37% | 131.59% | - |
| Cost of Goods Sold | 83.03M | 79.53M | 77.75M | 80.71M | 73.48M | 53.59M | 30.85M | 20.24M | 15.06M | 9.05M | 5.65M |
| COGS % of Revenue | - | 21.46% | 19.69% | 16.4% | 16.18% | 14.99% | 14.97% | 12.94% | 15.03% | 16.94% | 24.49% |
| Gross Profit | 291.61M | 290.97M | 317.07M | 411.34M | 380.79M | 303.97M | 175.26M | 136.12M | 85.11M | 44.4M | 17.43M |
| Gross Margin % | 77.84% | 78.54% | 80.31% | 83.6% | 83.82% | 85.01% | 85.03% | 87.06% | 84.97% | 83.06% | 75.51% |
| Gross Profit Growth % | - | -8.23% | -22.92% | 8.02% | 25.27% | 73.44% | 28.75% | 59.95% | 91.66% | 154.76% | - |
| Operating Expenses | 211.79M | 205.58M | 204.53M | 215.68M | 182.93M | 136.5M | 102.42M | 76.5M | 53.62M | 35.45M | 16.75M |
| OpEx % of Revenue | - | 55.49% | 51.8% | 43.83% | 40.27% | 38.17% | 49.69% | 48.93% | 53.53% | 66.32% | 72.59% |
| Selling, General & Admin | 197.82M | 192.26M | 191.4M | 202.27M | 170.51M | 127.76M | 92.95M | 70.81M | 49.44M | 32.88M | 14.3M |
| SG&A % of Revenue | - | 51.89% | 48.48% | 41.11% | 37.53% | 35.73% | 45.1% | 45.28% | 49.36% | 61.5% | 61.97% |
| Research & Development | 13.97M | 13.32M | 13.14M | 13.41M | 12.43M | 9.53M | 9.47M | 5.7M | 4.18M | 2.58M | 2.46M |
| R&D % of Revenue | - | 3.59% | 3.33% | 2.73% | 2.74% | 2.67% | 4.59% | 3.64% | 4.17% | 4.82% | 10.64% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | -800K | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 79.83M | 85.39M | 112.53M | 195.66M | 197.85M | 167.48M | 72.84M | 59.62M | 23.49M | 8.95M | 669K |
| Operating Margin % | 21.31% | 23.05% | 28.5% | 39.76% | 43.55% | 46.84% | 35.34% | 38.13% | 23.45% | 16.74% | 2.9% |
| Operating Income Growth % | - | -24.12% | -42.49% | -1.11% | 18.14% | 129.92% | 22.18% | 153.81% | 162.45% | 1237.82% | - |
| EBITDA | 80.52M | 86.08M | 113.26M | 196.28M | 198.53M | 167.99M | 73.26M | 59.92M | 23.67M | 9.15M | 820K |
| EBITDA Margin % | 21.49% | 23.23% | 28.69% | 39.89% | 43.7% | 46.98% | 35.54% | 38.32% | 23.63% | 17.12% | 3.55% |
| EBITDA Growth % | -27.32% | -24% | -42.3% | -1.13% | 18.18% | 129.32% | 22.26% | 153.12% | 158.61% | 1016.34% | - |
| D&A (Non-Cash Add-back) | 696K | 695K | 728K | 623K | 680K | 517K | 416K | 302K | 184K | 204K | 151K |
| EBIT | 97.91M | 110.33M | 112.53M | 195.66M | 197.85M | 167.48M | 72.84M | 59.62M | 31.49M | 8.95M | 669K |
| Net Interest Income | 22.38M | 24.94M | 30.94M | 21.61M | 3.61M | 525K | 3.29M | 2.42M | 136K | 849K | 0 |
| Interest Income | 22.38M | 24.94M | 30.94M | 21.61M | 3.61M | 525K | 3.29M | 2.42M | 136K | 849K | 1K |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 22.38M | 24.94M | 30.94M | 21.61M | 3.61M | 525K | 3.29M | 2.42M | -7.86M | 849K | 4K |
| Pretax Income | 102.2M | 110.33M | 143.47M | 217.27M | 201.47M | 168M | 76.13M | 62.04M | 23.63M | 9.8M | 673K |
| Pretax Margin % | 27.28% | 29.78% | 36.34% | 44.16% | 44.35% | 46.98% | 36.94% | 39.68% | 23.59% | 18.33% | 2.92% |
| Income Tax | 15.01M | 16.5M | -37.81M | 19.35M | 39.95M | 2.93M | 1.11M | 883K | 1.26M | 980K | 337K |
| Effective Tax Rate % | 14.69% | 14.95% | -26.35% | 8.91% | 19.83% | 1.74% | 1.45% | 1.42% | 5.33% | 10% | 50.07% |
| Net Income | 87.19M | 93.83M | 181.28M | 197.92M | 161.52M | 164.97M | 75.03M | 61.15M | 22.37M | 8.82M | 336K |
| Net Margin % | 23.27% | 25.33% | 45.91% | 40.22% | 35.56% | 46.14% | 36.4% | 39.11% | 22.33% | 16.5% | 1.46% |
| Net Income Growth % | -50.4% | -48.24% | -8.41% | 22.54% | -2.09% | 119.87% | 22.71% | 173.32% | 153.67% | 2524.7% | - |
| Net Income (Continuing) | 87.19M | 93.83M | 181.28M | 197.92M | 161.52M | 165.07M | 75.03M | 61.16M | 22.36M | 8.82M | 336K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 1.51M | 3.74M | 1.41M | 3.07M | 183K |
| EPS (Diluted) | 1.36 | 1.43 | 2.25 | 2.30 | 1.89 | 1.92 | 0.89 | 0.80 | 0.35 | 0.14 | 0.01 |
| EPS Growth % | -41.63% | -36.44% | -2.17% | 21.69% | -1.56% | 115.73% | 11.25% | 128.57% | 150% | - | - |
| EPS (Basic) | - | 1.45 | 2.29 | 2.37 | 1.96 | 2.03 | 1.04 | 1.05 | 0.35 | 0.14 | 0.01 |
| Diluted Shares Outstanding | 63.94M | 65.44M | 80.6M | 85.95M | 85.4M | 86.02M | 84.18M | 76.12M | 63.95M | 63.95M | 53.24M |
| Basic Shares Outstanding | 63.4M | 64.63M | 79.31M | 83.53M | 82.48M | 81.44M | 72.11M | 58.46M | 63.95M | 63.95M | 60M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Geopolitical and cyclical exposure
As indicated by the most recent quarterly data, InMode's revenue growth has turned negative, with the company reporting $82.0M in 2026Q1, reflecting a broader trend of decelerating demand for capital-intensive aesthetic platforms compared to the peak levels observed in previous fiscal periods.
The contraction in top-line performance suggests that the company is struggling to maintain its historical growth trajectory amidst a tightening credit environment for aesthetic clinics. Investors should monitor whether this decline represents a temporary cyclical trough or a more permanent saturation of the core North American market.
According to the provided financial statements, InMode's gross margin has experienced notable fluctuations, dipping to 75.0% in 2026Q1 from historical highs exceeding 80%, which may signal emerging pricing pressures or shifts in the product mix toward lower-margin offerings.
While the company maintains a high-margin profile relative to its peers, the recent erosion suggests that the pricing power previously enjoyed by its proprietary RFAL technology may be facing competitive challenges. This trend warrants further investigation into whether the company is forced to offer deeper discounts to sustain platform adoption.
Based on reported figures, operating margins have contracted sharply to 12.3% in 2026Q1, demonstrating that the company's fixed cost structure is failing to scale efficiently as revenue declines, thereby amplifying the impact of top-line weakness on the bottom line.
The inability to rapidly adjust SG&A expenses in response to revenue contraction indicates a lack of operational flexibility. This suggests that the company's current cost base may be misaligned with the realities of a slower growth environment, potentially leading to further margin degradation if demand does not recover.
Data from the last ten quarters reveals that net income has become increasingly volatile, with the 2026Q1 net margin of 14.1% representing a significant departure from the 43.5% margin achieved in 2023Q4, raising questions about the long-term sustainability of current earnings.
Short-sellers would likely focus on the rapid deterioration of operating margins as evidence that the company's business model is more sensitive to economic cycles than previously assumed. The reliance on high-margin capital equipment sales makes the company particularly vulnerable to any sustained reduction in discretionary spending by medical practitioners.
Quick answers to the most common questions about buying INMD stock.
For fiscal year 2025, InMode Ltd. (INMD) reported total revenue of $370.5M. This represents a 1505.1% increase compared to $23.1M in 2016.
InMode Ltd. (INMD) is profitable, generating $93.8M in net income for the fiscal year ending 2025 with a net profit margin of 25.3%.
InMode Ltd. (INMD) reported an operating income of $85.4M, resulting in an operating profit margin of 23.0%. This margin reflects the operational efficiency of the business before interest and taxes.
InMode Ltd. (INMD) generated $291.0M in gross profit for the year, representing a gross profit margin of 78.5%. This demonstrates the company's core pricing power and production efficiency.