Revenue growth has stalled, with 2026Q2 flat at $95.6M and a 6.2% decline in 2025, while gross margin remains resilient at 74.8% but operating margin has compressed to 12.8% from 28.5% in 2024Q4 due to sticky SG&A.
InMode Ltd. (INMD) annual income statement — 10-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Sales/Revenue | 374.63M | 370.5M | 394.82M | 492.05M | 454.27M | 357.56M | 206.11M | 156.36M | 100.16M | 53.46M | 23.08M |
| Revenue Growth % | -6.71% | -6.16% | -19.76% | 8.32% | 27.05% | 73.49% | 31.81% | 56.11% | 87.37% | 131.59% | - |
| Cost of Goods Sold | 87.95M | 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 | 286.68M | 290.97M | 317.07M | 411.34M | 380.79M | 303.97M | 175.26M | 136.12M | 85.11M | 44.4M | 17.43M |
| Gross Margin % | 76.52% | 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 | 217.48M | 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 | 203.23M | 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 | 14.25M | 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 | 69.2M | 85.39M | 112.53M | 195.66M | 197.85M | 167.48M | 72.84M | 59.62M | 23.49M | 8.95M | 669K |
| Operating Margin % | 18.47% | 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 | 69.89M | 86.08M | 113.26M | 196.28M | 198.53M | 167.99M | 73.26M | 59.92M | 23.67M | 9.15M | 820K |
| EBITDA Margin % | 18.65% | 23.23% | 28.69% | 39.89% | 43.7% | 46.98% | 35.54% | 38.32% | 23.63% | 17.12% | 3.55% |
| EBITDA Growth % | -39.43% | -24% | -42.3% | -1.13% | 18.18% | 129.32% | 22.26% | 153.12% | 158.61% | 1016.34% | - |
| D&A (Non-Cash Add-back) | 684K | 695K | 728K | 623K | 680K | 517K | 416K | 302K | 184K | 204K | 151K |
| EBIT | 83.52M | 110.33M | 143.47M | 217.27M | 201.47M | 168M | 72.84M | 59.62M | 31.49M | 8.95M | 669K |
| Net Interest Income | 21.75M | 24.94M | 30.94M | 21.61M | 3.61M | 525K | 3.29M | 2.42M | 136K | 849K | 0 |
| Interest Income | 21.75M | 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 | 21.75M | 24.94M | 30.94M | 21.61M | 3.61M | 525K | 3.29M | 2.42M | -7.86M | 849K | 4K |
| Pretax Income | 90.95M | 110.33M | 143.47M | 217.27M | 201.47M | 168M | 76.13M | 62.04M | 23.63M | 9.8M | 673K |
| Pretax Margin % | 24.28% | 29.78% | 36.34% | 44.16% | 44.35% | 46.98% | 36.94% | 39.68% | 23.59% | 18.33% | 2.92% |
| Income Tax | 13.44M | 16.5M | -37.81M | 19.35M | 39.95M | 2.93M | 1.11M | 883K | 1.26M | 980K | 337K |
| Effective Tax Rate % | 14.77% | 14.95% | -26.35% | 8.91% | 19.83% | 1.74% | 1.45% | 1.42% | 5.33% | 10% | 50.07% |
| Net Income | 77.51M | 93.83M | 181.28M | 197.92M | 161.52M | 164.97M | 75.03M | 61.15M | 22.37M | 8.82M | 336K |
| Net Margin % | 20.69% | 25.33% | 45.91% | 40.22% | 35.56% | 46.14% | 36.4% | 39.11% | 22.33% | 16.5% | 1.46% |
| Net Income Growth % | -56.62% | -48.24% | -8.41% | 22.54% | -2.09% | 119.87% | 22.71% | 173.32% | 153.67% | 2524.7% | - |
| Net Income (Continuing) | 77.51M | 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) | 1.31 | 1.43 | 2.25 | 2.30 | 1.89 | 1.92 | 0.89 | 0.80 | 0.35 | 0.14 | 0.01 |
| EPS Growth % | -50.2% | -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 | 59.38M | 65.44M | 80.6M | 85.95M | 85.4M | 86.02M | 84.18M | 76.12M | 63.95M | 63.95M | 53.24M |
| Basic Shares Outstanding | 58.9M | 64.63M | 79.31M | 83.53M | 82.48M | 81.44M | 72.11M | 58.46M | 63.95M | 63.95M | 53.24M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
Revenue decline and GLP-1 shift
Revenue Momentum Fades Amidst Macro Headwinds
InMode's revenue contracted 6.2% year-over-year in 2025, with 2026Q2 flat at $95.6M, suggesting a deceleration from prior growth, as reported in recent financial statements.
The 10-quarter trend shows a clear peak in 2024Q3 at $130.2M, followed by a sharp decline and subsequent stabilization around $95M. The 2025Q3 drop of 28.5% YoY was particularly severe, and while 2026Q1 showed a modest 5.3% rebound, 2026Q2 returned to flat growth. This pattern suggests a maturing US market and potential credit tightening for aesthetic clinics, as the company's heavy US concentration (over 60% of revenue) makes it sensitive to domestic economic shifts. The lack of acceleration in recent quarters indicates that the growth engine may be stalling, warranting close monitoring of whether the stabilization holds or further contraction ensues.
Gross Margin Resilience Despite Volume Decline
Gross margin remained robust at 74.8% in 2026Q2, down from 80.0% a year earlier, reflecting pricing power but also signaling potential pressure from competitive dynamics, per company filings.
Despite revenue contraction, gross margins have stayed above 74%, underscoring the structural advantage of InMode's high-margin consumables and platform sales. The slight erosion from 80.0% in 2025Q2 to 74.8% in 2026Q2 may indicate increased discounting or a shift in product mix toward lower-margin items. However, the absolute level remains exceptional compared to peers like STAAR (76.2%) and NVCR (74.5%), suggesting InMode retains pricing power. Investors should monitor whether margin compression accelerates if competitors introduce lower-cost alternatives, as the company's high ASPs relative to production costs are a key support.
Operating Leverage Reverses as SG&A Holds Steady
Operating margin fell from 28.5% in 2024Q4 to 12.8% in 2026Q2, as SG&A remained sticky near $55M despite revenue declines, indicating negative operating leverage, based on reported figures.
InMode's operating income has not scaled down proportionally with revenue. While gross profit declined from $106.2M in 2024Q3 to $71.5M in 2026Q2, SG&A only dropped from $54.7M to $55.6M, actually increasing slightly. This suggests that the direct sales force and marketing infrastructure are fixed in the near term, causing operating margins to compress sharply. The company's ability to adjust its cost base in response to slowing demand will be critical; if revenue stabilizes, the current SG&A level may support margin recovery, but if revenue continues to fall, margins could deteriorate further.
Earnings Quality Clouded by Tax and One-Time Items
Net margin spiked to 84.6% in 2024Q4 due to a one-time tax benefit, while 2026Q2 net income of $17.1M appears more normalized, per income statement data.
The 2024Q4 net income of $82.8M on $97.9M revenue is clearly anomalous, likely driven by a discrete tax item, inflating EPS to $1.14. Excluding that quarter, net margins have ranged from 14.1% to 28.0%, with 2026Q2 at 17.9%. Stock-based compensation has been volatile, with zero in some quarters and up to $5.2M in others, which can distort EPS comparisons. Investors should adjust for these items to assess underlying profitability, which appears stable but not growing. The high cash balance and lack of debt provide a cushion, but the quality of earnings is moderate given the non-operating noise.
SG&A Dominates Cost Structure, R&D Underfunded
SG&A consumed 58.2% of revenue in 2026Q2, while R&D was only 3.9%, highlighting a sales-heavy model that may underinvest in innovation, as per financial disclosures.
InMode's cost structure is heavily weighted toward sales and marketing, which is typical for a direct-sales medical device company but leaves little room for R&D. R&D expenses have remained flat around $3.5M per quarter, representing a declining percentage of revenue as sales fell. This could limit the company's ability to expand into new verticals like urology or ophthalmology, which are critical for long-term growth. The high SG&A also creates operating leverage risk; if revenue does not recover, the fixed sales force will continue to pressure margins. Management's expense discipline will be tested in this environment.
The Bear Case: Peak Aesthetics and Competitive Threats
Short-sellers may argue that InMode's 6.2% revenue decline signals market saturation, with GLP-1 drugs diverting aesthetic budgets and competitors eroding pricing power, based on recent trends.
The most compelling bear argument is that InMode's core US market is saturated, and the shift toward GLP-1 weight-loss medications could permanently reduce demand for body-contouring devices. The revenue decline in 2025, despite a strong product portfolio, suggests that capital expenditure budgets at clinics are tightening, possibly due to higher interest rates. Additionally, the company's reliance on a direct sales force makes it vulnerable to productivity declines if reps cannot penetrate new specialties. While InMode's balance sheet is fortress-like, with over $300M in cash and no debt, the market may be pricing in a prolonged downturn. If the consumable-to-platform ratio is declining, it would indicate idle hardware, further supporting the bear case. Investors should monitor these metrics closely.