insp-20260331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________________

FORM 10-Q

________________________________


(Mark One)
☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026 or

☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to

Commission File Number: 001-38468

______________________________

Inspire Medical Systems, Inc.

(Exact name of registrant as specified in its charter)

______________________________


Delaware			26-1377674
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
5500 Wayzata Blvd., Suite 1600 Golden Valley, MN			55416
(Address of principal executive offices)			(Zip Code)

(844) 672-4357

(Registrant's telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.001 par value per share

INSP

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒

Accelerated filer ☐

Non-accelerated filer ☐

Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 28, 2026, the registrant had 28,813,153 shares of common stock, $0.001 par value per share, outstanding.


		Page
Forward-Looking Statements		3

PART I.	FINANCIAL INFORMATION	5
Item 1.	Financial Statements	5
	Balance Sheets	5
	Statements of Operations	6
	Statements of Comprehensive Income (Loss)	7
	Statements of Stockholders' Equity	8
	Statements of Cash Flows	9
	Notes to Financial Statements	10
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	24
Item 4.	Controls and Procedures	24

PART II.	OTHER INFORMATION	25
Item 1.	Legal Proceedings	25
Item 1A.	Risk Factors	25
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	25


Item 5.	Other Information	25
Item 6.	Exhibits	26

Signatures		27


	March 31, 2026		December 31, 2025
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	98,932	$	104,813
Investments, short-term	184,902		203,455
Accounts receivable, net of allowance for credit losses of $1,266 and $1,080, respectively	105,088		119,692
Inventories, net	166,235		145,293
Prepaid expenses and other current assets	11,662		10,399
Total current assets	566,819		583,652
Investments, long-term	115,882		96,330
Property and equipment, net	100,692		97,872
Operating lease right-of-use assets	23,068		23,532
Deferred tax assets	87,665		88,667
Other non-current assets	17,250		17,264
Total assets	$	911,376	$	907,317
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	41,849	$	36,565
Accrued expenses	47,569		59,490

Total current liabilities	89,418		96,055

Operating lease liabilities, non-current portion	29,552		29,998

Other non-current liabilities	66		104
Total liabilities	119,036		126,157
Commitments and contingencies (Note 9)
Stockholders' equity:
Preferred Stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding	—		—
Common Stock, $0.001 par value; 200,000,000 shares authorized; 28,802,039 and 28,579,015 issued and outstanding at March 31, 2026 and December 31, 2025, respectively	29		29
Additional paid-in capital	950,449		927,159
Accumulated other comprehensive (loss) income	(352)		464
Accumulated deficit	(157,786)		(146,492)
Total stockholders' equity	792,340		781,160
Total liabilities and stockholders' equity	$	911,376	$	907,317


	Three Months Ended March 31,
	2026		2025
Revenue	$	204,583	$	201,317
Cost of goods sold	27,671		30,709
Gross profit	176,912		170,608
Operating expenses:
Research and development	25,826		27,803
Selling, general and administrative	152,204		144,290
Total operating expenses	178,030		172,093
Operating (loss)	(1,118)		(1,485)

Interest and dividend (income), net	(3,741)		(5,066)

Other expense (income), net	226		(578)

Earnings before income taxes	2,397		4,159
Income tax expense	13,691		1,167
Net (loss) earnings	$	(11,294)	$	2,992




Basic (loss) earnings per share	$	(0.39)	$	0.10
Diluted (loss) earnings per share	$	(0.39)	$	0.10
Weighted average shares outstanding:
Basic	28,700,525		29,702,358
Diluted	28,700,525		30,311,476


	Three Months Ended March 31, 2026
	Common Stock
	Shares	Par Value		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders' Equity
Balance at December 31, 2025	28,579,015	$	29	$	927,159	$	464	$	(146,492)	$	781,160
Stock options exercised, net	2,343	—		109		—		—		109
Vesting of restricted stock units and performance stock units, net	219,816	—		(7,591)		—		—		(7,591)
Issuance of common stock	865	—		83		—		—		83
Stock-based compensation expense	—	—		30,689		—		—		30,689


Other comprehensive loss, net of tax	—	—		—		(816)		—		(816)
Net loss	—	—		—		—		(11,294)		(11,294)
Balance at March 31, 2026	28,802,039	$	29	$	950,449	$	(352)	$	(157,786)	$	792,340


	Three Months Ended March 31, 2025
	Common Stock
	Shares	Par Value		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders' Equity
Balance at December 31, 2024	29,740,176	$	30	$	981,043	$	536	$	(291,914)	$	689,695
Stock options exercised, net	73,491	—		6,441		—		—		6,441
Vesting of restricted stock units and performance stock units, net	199,778	—		(19,192)		—		—		(19,192)

Issuance of common stock	390	—		69		—		—		69
Stock-based compensation expense	—	—		31,056		—		—		31,056
Accelerated share repurchase of common stock	(103,886)	—		—		—		—		—
Share repurchase of common stock	(442,649)	(1)		(75,008)		—		—		(75,009)
Other comprehensive loss, net of tax	—	—		—		(309)		—		(309)
Net earnings	—	—		—		—		2,992		2,992
Balance at March 31, 2025	29,467,300	$	29	$	924,409	$	227	$	(288,922)	$	635,743


	March 31, 2026
	Amortized		Unrealized Gross				Aggregate
	Cost		Gains		Losses		Fair Value
Short-Term:
Commercial paper	$	22,322	$	5	$	(16)	$	22,311
Corporate debt securities	67,324		77		(26)		67,375


U.S. treasury debt securities	95,158		77		(19)		95,216
Short-term investments	$	184,804	$	159	$	(61)	$	184,902
Long-Term:
Corporate debt securities	$	46,411	$	—	$	(125)	$	46,286

Asset-backed securities	1,198		1		—		1,199
U.S. treasury debt securities	68,496		55		(154)		68,397
Long-term investments	$	116,105	$	56	$	(279)	$	115,882


	March 31, 2026		December 31, 2025
Due in one year or less	$	184,902	$	203,455
Due after one year through five years	115,882		96,330


	March 31, 2026
	Less than 12 Months				12 Months or Greater				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Commercial paper	$	12,211	$	(16)	$	—	$	—	$	12,211	$	(16)
Corporate debt securities	67,058		(155)		—		—		67,058		(155)


U.S. treasury debt securities	64,660		(174)		—		—		64,660		(174)
Total	$	143,929	$	(345)	$	—	$	—	$	143,929	$	(345)


	Fair Value Measurements as of
	March 31, 2026
	Estimated Fair Value		Level 1		Level 2		Level 3
Cash equivalents:
Money market funds	$	67,287	$	67,287	$	—	$	—


Total cash equivalents	67,287		67,287		—		—
Investments:
Commercial paper	22,311		—		22,311		—
Corporate debt securities	113,661		—		113,661		—

Asset-backed securities	1,199		—		1,199		—
U.S. government securities	163,613		163,613		—		—
Total investments	300,784		163,613		137,171		—
Total cash equivalents and investments	$	368,071	$	230,900	$	137,171	$	—


	March 31, 2026		December 31, 2025
Raw materials	$	20,970	$	19,097
Work in process	20,008		13,837
Finished goods	125,257		112,359
Total inventories, net of reserves	$	166,235	$	145,293


Awards	Number of Shares	Weighted Average Grant Date Fair Value
Restricted stock units1	1,283,740	$60.05
Performance stock units2	490,300	$59.62


	Three Months Ended
	March 31,
	2026		2025
Number of shares purchased	—		442,649
Average price paid per share	$	—	$	169.43
Total value of shares repurchased	$	—	$	75,000

SEC Form 10-Q filed by Inspire Medical Systems Inc.