Results Reflect Strong Fourth Quarter 2024 Revenue Growth of 5.5%; Full-Year Revenue Growth of 6.4%
Company Provides 2025 Growth Outlook
Recently Announced Strategic Collaboration with Yuwell to Expand Product Portfolio, Global Reach

Inogen, Inc. (Nasdaq: INGN), a medical technology company offering innovative respiratory products for use in the homecare setting, today announced financial results for the quarter and the full year ended December 31, 2024.

"2024 was a stellar year for Inogen. With our new leadership team in place, we returned the Company to growth, achieved significant milestones, and made meaningful steps towards profitability," said Kevin Smith, President and Chief Executive Officer. "With our leading portfolio of innovative respiratory care products, the pending introduction of Simeox in the U.S. and our recently announced collaboration with Yuwell, we believe we are well positioned to drive future growth, profitability and sustained success."

Fourth Quarter 2024 Financial Results

Total revenue in the fourth quarter of 2024 increased 5.5% to $80.1 million from $75.9 million in the fourth quarter of 2023, primarily driven by higher demand and new customers in international and domestic business-to-business sales. This performance was partially offset by lower direct-to-consumer sales and lower rental revenue as a result of the Company's initiatives to enhance overall profitability.

Total gross margin of 45.3% in the fourth quarter of 2024 improved from 37.1% in the comparable period in 2023, driven primarily by lower raw material costs and operational efficiencies.

Total operating loss of $11.4 million improved from a loss of $29.0 million in the fourth quarter of 2023. The year-over-year improvement was primarily due to material cost reductions and operational efficiencies, and a favorable comparison to the prior-year period which included certain acquisition-related and other one-time costs.

GAAP net loss for the fourth quarter of 2024 was $9.8 million compared to $26.6 million in the fourth quarter of 2023. Adjusted net loss for the fourth quarter of 2024 was $5.8 million, an improvement from adjusted net loss of $19.4 million in the fourth quarter of 2023.

Adjusted EBITDA was negative $3.6 million in the fourth quarter of 2024 compared to negative $17.3 million in the fourth quarter of 2023.

Cash, cash equivalents, and restricted cash were $117.4 million as of December 31, 2024, with no debt outstanding.

Full Year 2024 Financial Results

Total revenue in the full year 2024 increased 6.4% to $335.7 million from $315.7 million in 2023, primarily driven by higher demand and new customers in international and domestic business-to-business sales, partially offset by lower direct-to-consumer sales and rental revenue.

Total gross margin of 46.1% in the full year 2024 improved from 40.1% in the comparable period in 2023, driven primarily by lower raw material costs and operational efficiencies compared to the prior year period.

Total operating loss of $42.5 million in the full year 2024 improved from a loss of $109.4 million in the full year of 2023. The year-over-year improvement was primarily due to lower goodwill impairment, material cost reductions, and an increase in sales revenue.

GAAP net loss for the full year 2024 was $35.9 million compared to GAAP net loss of $102.4 million for the full year 2023. Adjusted net loss for the full year 2024 was $20.4 million, an improvement from adjusted net loss of $48.3 million in the full year 2023.

Adjusted EBITDA was negative $9.5 million for the full year 2024 compared to negative $37.8 million for the full year 2023.

Reconciliations of adjusted EBITDA and adjusted net loss for the three and twelve months ended December 31, 2024 and 2023 are provided in the financial schedules that are a part of this press release. An explanation of these non-GAAP financial measures is also included below under the heading "Reconciliation of U.S. GAAP to Non-GAAP Financial Measures."

First Quarter and Full Year 2025 Financial Outlook

For the first quarter 2025, Inogen expects revenue in the range of $79 million to $81 million, reflecting 1% to 4% reported growth relative to the Company's first quarter 2024 revenue.

For the full year 2025, Inogen expects revenue in the range of $352 million to $355 million, reflecting 5% to 6% growth relative to the Company's 2024 revenue.

For the full year 2025, Inogen expects gross margin in the range of 43% to 45% of total revenue, reflecting channel mix shift and costs associated with the introduction of Simeox and Yuwell.

Yuwell Collaboration and Closing of Related Equity Investment

As previously announced, in January 2025, the Company entered into a strategic collaboration with Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. ("Yuwell"). In connection with the strategic collaboration, the Company entered into a Securities Purchase Agreement with Yuwell (Hong Kong) Holdings Limited, a wholly-owned subsidiary of Yuwell, pursuant to which the subsidiary agreed to purchase 2,626,425 shares of the Company's common stock, par value $0.001 per share, for an aggregate purchase price of approximately $27.2 million. The equity investment closed on February 21, 2025. Following the closing of the equity investment, Yuwell holds approximately 9.9% of the Company's outstanding common stock.

Quarterly Conference Call Information

On Tuesday, February 25, 2025, the Company will host a conference call at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time.

Individuals interested in listening to the conference call may do so by dialing:

US domestic callers (877) 841-3961

Non-US callers (201) 689-8589

Please reference Inogen to join the call. A live audio webcast and archived recording of the conference call will be available to all interested parties through the News / Events page on the Inogen Investor Relations website. This webcast will also be archived on the website for 6 months.

A replay of the call will be available approximately three hours after the live webcast ends and will be accessible through March 4, 2025. To access the replay, dial (877) 660-6853 or (201) 612-7415 and reference Conference ID: 13750589.

Inogen has used, and intends to continue to use, its Investor Relations website, http://investor.inogen.com/, as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

About Inogen

Inogen, Inc. (NASDAQ:INGN) is a leading global medical technology company offering innovative respiratory products for use in the homecare setting. Inogen supports patient respiratory care by developing, manufacturing, and marketing innovative best-in-class respiratory therapy devices used to deliver care to patients suffering from chronic respiratory conditions. Inogen partners with patients, prescribers, home medical equipment providers, and distributors to make its respiratory therapy products widely available, allowing patients the chance to manage the impact of their disease.

For more information, please visit www.inogen.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this communication that are not historical facts, including, but not limited to, statements regarding Inogen's future business plans, market opportunities, financial outlook, growth strategies, and anticipated operational results, are forward-looking statements. Words such as "aims," "believes," "anticipates," "plans," "expects," "will," "intends," "potential," "possible," and similar expressions are intended to identify forward-looking statements. Forward-looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from currently anticipated results, including but not limited to, risks and uncertainties relating to the potential benefits of Inogen's collaboration with Yuwell; market acceptance of its products; competition; its sales, marketing and distribution capabilities; its planned sales, marketing, and research and development activities; and risks associated with international operations. For a detailed discussion of these and other risks that could impact Inogen's operations and financial performance, please refer to the "Risk Factors" section of its Annual Report on Form 10-K for the period ended December 31, 2023, its Quarterly Reports on Form 10-Q for the calendar quarters ended March 31, 2024, June 30, 2024, and September 30, 2024 and in its other filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. Inogen disclaims any obligation to update these forward-looking statements except as may be required by law.

Non-GAAP Financial Measures

Inogen has presented certain financial information in accordance with U.S. GAAP and also on a non-GAAP basis for the three and twelve months ended December 31, 2024, and December 31, 2023. Management believes that non-GAAP financial measures, taken in conjunction with U.S. GAAP financial measures, provide useful information for both management and investors by excluding certain non-cash and other expenses that are not indicative of Inogen's core operating results. Management uses non-GAAP measures to compare Inogen's performance relative to forecasts and strategic plans, to benchmark Inogen's performance externally against competitors, and for certain compensation decisions. Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used to supplement an understanding of Inogen's operating results as reported under U.S. GAAP. Inogen encourages investors to carefully consider its results under U.S. GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. Reconciliations between U.S. GAAP and non-GAAP results are presented in the accompanying tables of this release.


Consolidated Statements of Comprehensive Loss (unaudited) *(amounts in thousands, except share and per share amounts)*

	Three months ended						Twelve months ended
	December 31,						December 31,
	2024			2023			2024			2023
Revenue
Sales revenue	$	66,307		$	59,404		$	278,756		$	251,607
Rental revenue		13,774			16,492			56,949			64,053
Total revenue		80,081			75,896			335,705			315,660
Cost of revenue
Cost of sales revenue		35,499			39,936			148,655			158,636
Cost of rental revenue, including depreciation of $3,038 and $3,213 for the three months ended and $12,592 and $12,893 for the twelve months ended, respectively		8,293			7,802			32,309			30,325
Total cost of revenue		43,792			47,738			180,964			188,961
Gross profit		36,289			28,158			154,741			126,699
Operating expense
Research and development		5,898			6,714			21,610			20,840
Sales and marketing		24,155			25,653			103,069			107,091
General and administrative		17,622			24,773			72,578			75,260
Impairment charges		—			—			—			32,894
Total operating expense		47,675			57,140			197,257			236,085
Loss from operations		(11,386	)		(28,982	)		(42,516	)		(109,386	)
Other income (expense)
Interest income, net		1,413			1,602			5,190			6,574
Other income (expense)		(114	)		292			850			468
Total other income, net		1,299			1,894			6,040			7,042
Loss before provision (benefit) for income taxes		(10,087	)		(27,088	)		(36,476	)		(102,344	)
Provision (benefit) for income taxes		(330	)		(533	)		(588	)		105
Net loss		(9,757	)		(26,555	)		(35,888	)		(102,449	)
Other comprehensive income (loss), net of tax
Change in foreign currency translation adjustment		(2,923	)		1,933			(2,590	)		1,358
Change in net unrealized losses on foreign currency hedging		(324	)		(78	)		(324	)		—
Less: reclassification adjustment for net gains included in net loss		324			25			324			—
Total net change in unrealized losses on foreign currency hedging		—			(53	)		—			—
Change in net unrealized gains (losses) on marketable securities		(297	)		(72	)		(136	)		110
Total other comprehensive income (loss), net of tax		(3,220	)		1,808			(2,726	)		1,468
Comprehensive loss	$	(12,977	)	$	(24,747	)	$	(38,614	)	$	(100,981	)

Basic net loss per share attributable to common stockholders⁽¹⁾	$	(0.41	)	$	(1.14	)	$	(1.52	)	$	(4.42	)
Diluted net loss per share attributable to common stockholders^{(1) (2)}	$	(0.41	)	$	(1.14	)	$	(1.52	)	$	(4.42	)
Weighted-average number of shares used in calculating net loss per share attributable to common stockholders:
Basic shares of common stock		23,846,666			23,313,495			23,654,395			23,176,098
Diluted shares of common stock		23,846,666			23,313,495			23,654,395			23,176,098

(1)		Reconciliations of net loss attributable to common stockholders basic and diluted can be found in Inogen's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 to be filed with the Securities and Exchange Commission.
(2)		Due to a net loss for the three and twelve months ended December 31, 2024 and December 31, 2023, diluted loss per share is the same as basic.

Consolidated Balance Sheets (unaudited) *(amounts in thousands, except share and per share amounts)*

	December 31,			December 31,
	2024			2023
Assets
Current assets
Cash and cash equivalents	$	113,795		$	125,492
Marketable securities		—			2,979
Restricted cash		3,620			—
Accounts receivable, net		29,563			42,241
Inventories, net		24,812			21,840
Income tax receivable		538			669
Prepaid expenses and other current assets		13,123			13,846
Total current assets		185,451			207,067
Property and equipment, net		44,400			50,316
Goodwill		9,465			10,057
Intangible assets, net		30,493			34,591
Operating lease right-of-use asset		18,295			20,338
Other assets		8,081			3,825
Total assets	$	296,185		$	326,194
Liabilities and stockholders' equity
Current liabilities
Accounts payable and accrued expenses	$	27,153		$	30,142
Accrued payroll		17,189			11,066
Warranty reserve - current		9,736			9,628
Operating lease liability - current		2,812			3,653
Earnout liability		13,000			10,000
Deferred revenue - current		6,654			7,980
Income tax payable		142			27
Total current liabilities		76,686			72,496
Long-term liabilities
Warranty reserve - noncurrent		16,350			13,850
Operating lease liability - noncurrent		16,594			18,270
Deferred revenue - noncurrent		5,747			8,227
Deferred tax liability		6,948			8,539
Total liabilities		122,325			121,382
Stockholders' equity
Common stock		24			23
Additional paid-in capital		328,174			320,513
Accumulated deficit		(152,837	)		(116,949	)
Accumulated other comprehensive income (loss)		(1,501	)		1,225
Total stockholders' equity		173,860			204,812
Total liabilities and stockholders' equity	$	296,185		$	326,194

Condensed Consolidated Cash Flow (unaudited) *(amounts in thousands)*

	Years Ended December 31,
	2024			2023
Cash flows from operating activities
Net loss	$	(35,888	)	$	(102,449	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		21,004			18,152
Loss on rental units and other assets		4,535			4,508
Gain on sale of former rental assets		(165	)		(84	)
Provision for sales revenue returns and doubtful accounts		10,890			10,730
Provision for inventory losses		233			2,691
Loss on purchase commitments		448			2,057
Stock-based compensation expense		7,397			7,427
Deferred income taxes		(1,150	)		(251	)
Change in fair value of earnout liability		3,000			6,822
Impairment charges		—			32,894
Changes in operating assets and liabilities		(4,390	)		14,269
Net cash provided by (used in) operating activities		5,914			(3,234	)
Cash flows from investing activities
Purchases of available-for-sale securities		(32,657	)		(26,869	)
Maturities of available-for-sale securities		35,500			24,000
Investment in intangible assets		(2,090	)		(494	)
Investment in property and equipment		(3,360	)		(5,218	)
Production and purchase of rental equipment		(11,643	)		(21,299	)
Proceeds from sale of former assets		275			198
Acquisition of business, net of cash acquired		—			(29,633	)
Net cash used in investing activities		(13,975	)		(59,315	)
Cash flows from financing activities
Proceeds from stock options exercised		—			384
Proceeds from employee stock purchases		811			1,094
Payment of employment taxes related to release of restricted stock		(546	)		(518	)
Net cash provided by financing activities		265			960
Effect of exchange rates on cash		(281	)		67
Net decrease in cash, cash equivalents and restricted cash	$	(8,077	)	$	(61,522	)

Supplemental Financial Information (unaudited) *(in thousands, except units and patients)*

	Three months ended December 31,				Change 2024 vs. 2023						Constant Currency Change
Revenue by region and category	2024		2023		$			%			%
Business-to-business domestic sales	$	22,397	$	18,051	$	4,346			24.1	%		24.1	%
Business-to-business international sales		28,313		21,524		6,789			31.5	%		28.2	%
Direct-to-consumer domestic sales		15,597		19,829		(4,232	)		-21.3	%		-21.3	%
Direct-to-consumer domestic rentals		13,774		16,492		(2,718	)		-16.5	%		-16.5	%
Total revenue	$	80,081		75,896		4,185			5.5	%		4.6	%
Additional financial measures
Units Sold		38,400		34,100
Net rental patients as of period-end		51,000		51,900


	Twelve months ended December 31,				Change 2024 vs. 2023						Constant Currency Change
Revenue by region and category	2024		2023		$			%			%
Business-to-business domestic sales	$	83,555	$	66,196	$	17,359			26.2	%		26.2	%
Business-to-business international sales		117,207		89,401		27,806			31.1	%		30.2	%
Direct-to-consumer domestic sales		77,994		96,010		(18,016	)		-18.8	%		-18.8	%
Direct-to-consumer domestic rentals		56,949		64,053		(7,104	)		-11.1	%		-11.1	%
Total revenue	$	335,705		315,660		20,045			6.4	%		6.1	%
Additional financial measures
Units Sold		157,500		130,500
Net rental patients as of period-end		51,000		51,900

Reconciliation of U.S. GAAP to Non-GAAP Financial Measures (unaudited) *(in thousands)*

	Three months ended						Twelve months ended
	December 31,						December 31,
Non-GAAP EBITDA and Adjusted EBITDA	2024			2023			2024			2023
Net loss (GAAP)	$	(9,757	)	$	(26,555	)	$	(35,888	)	$	(102,449	)
Non-GAAP adjustments:
Interest income, net		(1,413	)		(1,602	)		(5,190	)		(6,574	)
Provision (benefit) for income taxes		(330	)		(533	)		(588	)		105
Depreciation and amortization		5,080			5,144			21,004			18,152
EBITDA (non-GAAP)		(6,420	)		(23,546	)		(20,662	)		(90,766	)
Stock-based compensation		1,693			(1,057	)		7,397			7,427
Acquisition-related expenses		—			432			784			2,413
Restructuring-related and other charges		—			—			—			3,426
Impairment charges		—			—			—			32,894
Change in fair value of earnout liability		1,170			6,822			3,000			6,822
Adjusted EBITDA (non-GAAP)	$	(3,557	)	$	(17,349	)	$	(9,481	)	$	(37,784	)

	Three months ended December 31,
	Net Loss						Diluted EPS
Non-GAAP Adjusted Net Loss and Diluted EPS	2024			2023			2024			2023
Financial Results (GAAP)	$	(9,757	)	$	(26,555	)	$	(0.41	)	$	(1.14	)
Non-GAAP adjustments:
Amortization of intangibles		1,103			918
Stock-based compensation		1,693			(1,057	)
Acquisition-related expenses		—			432
Change in fair value of earnout liability		1,170			6,822
Adjusted	$	(5,791	)	$	(19,440	)	$	(0.24	)	$	(0.83	)



	Twelve months ended December 31,
	Net Loss						Diluted EPS
Non-GAAP Adjusted Net Loss and Diluted EPS	2024			2023			2024			2023
Financial Results (GAAP)	$	(35,888	)	$	(102,449	)	$	(1.52	)	$	(4.42	)
Non-GAAP adjustments:
Amortization of intangibles		4,330			1,202
Stock-based compensation		7,397			7,427
Acquisition-related expenses		784			2,413
Restructuring-related and other charges ⁽¹⁾		—			3,426
Impairment charges		—			32,894
Change in fair value of earnout liability		3,000			6,822
Adjusted	$	(20,377	)	$	(48,265	)	$	(0.86	)	$	(2.08	)

(1)

Charges represent the costs associated with workforce reductions and other restructuring-related activities.

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ir@inogen.net

Inogen Announces Fourth Quarter and Full Year 2024 Financial Results