InMode delivered $82 million in Q1 2026 revenue — up 5% year over year and ahead of analyst estimates — with management citing early signs of U.S. market stabilization after a brutal 2025. But the headline numbers mask a deeper strategic story: gross margins are compressing as new laser products dilute the mix, GLP-1 drugs are reshaping the aesthetics market, and the CEO disclosed — for the first time publicly — that InMode attempted and failed to sell the company in 2025.
Section 01
Revenue and margins: from peak to stabilization
InMode’s revenue trajectory tells a clear story of boom, bust, and tentative recovery. After reaching $492 million in full-year 2023 — its all-time peak — revenue fell sharply in 2024 and 2025 as U.S. demand weakened amid macroeconomic pressure on elective spending and the failed company sale process (detailed in Section 3). The Q1 2026 print of $82 million, up 5% from the year-ago quarter’s $77.9 million, is the first sequential year-over-year growth in several quarters and represents the earliest evidence that the bottom may be in.
Source: SEC 6-K press releases. Q2 2021, Q2 2022, Q2 2023 derived from annual totals minus directly-reported quarters. Annual totals confirmed from SEC 6-K annual press releases.
The FY2026 guidance of $365–375 million implies average quarterly revenue of approximately $91–94 million. After Q1’s $82 million, management needs roughly $283–293 million across Q2–Q4 — averaging $94–98 million per quarter. That is achievable but requires consistent acceleration through the year, which management says it expects as the North American sales reorganization delivers results.
Gross margins have declined from 83–85% in 2021–2023 to 75% in Q1 2026. The guidance of 74–76% for FY2026 suggests management does not expect a near-term recovery to historical levels.
The primary driver is the introduction of two new laser platforms — Picofy (picosecond laser) and a CO2 laser — which have materially lower margins than InMode’s core radiofrequency (RF) platforms. CEO Moshe Mizrahy explicitly acknowledged this tradeoff on the earnings call.
Source: SEC 6-K press releases. FY2026 guidance band = non-GAAP gross margin 74–76%.
“Physicians are looking for comprehensive solutions from a single partner, and these platforms support a one-stop shop office. They may put pressure on our gross margin, but they play a critical role in strengthening our competitive position and deepening our customers’ relationships.”
— Moshe Mizrahy, CEO, InMode — Q1 2026 Earnings Call
This is a deliberate strategic choice: accept lower margins on laser products in exchange for becoming a broader platform provider — the “one-stop shop” model that reduces the risk of physicians sourcing devices from multiple competitors. The logic is sound, but investors should expect gross margins in the 74–76% range to be the new normal, not a temporary headwind.
Section 02
Platform mix: minimally invasive at 77% — and why it matters
InMode’s core differentiation has always been its proprietary minimally invasive radiofrequency technology — platforms like BodyTite, Morpheus8, and EvolveX that perform procedures with smaller incisions, faster recovery, and higher clinical efficacy than traditional surgery or non-invasive RF. These platforms command premium pricing and the highest margins in the portfolio.
Source: SEC 6-K press releases. Data shown only for quarters where percentage was directly stated in the filing.
The trend from 69% in Q1 2021 to a peak above 87% in 2024, and now 77% in Q1 2026, reflects the addition of lower-margin laser and non-invasive products to the mix. This is intentional — the strategic rationale is to capture more of the physician’s total device budget — but it explains a significant portion of the gross margin compression seen since 2024.
InMode’s core platforms use radiofrequency energy delivered through small needles inserted just below the skin surface. This approach — called radiofrequency-assisted lipolysis (RFAL) or subdermal RF — liquefies fat while simultaneously tightening skin, in a single procedure, under local anesthesia. The result is more precise body contouring than liposuction alone, with significantly less downtime than surgical approaches. This is the technology that built InMode’s brand and commands its premium pricing — and it’s the segment most at risk from GLP-1 competition for the weight-loss-motivated patient segment.
Section 03
The failed company sale of 2025: what happened?
CEO Mizrahy made a striking disclosure on the Q1 2026 earnings call — acknowledging that 2025 was a “very tough year” partly because of a failed attempt to sell the company. This is a significant admission that deserves unpacking.
“Hopefully, now when the company continue to be a public company, I’m sure everybody knows that the last year, 2025 was a very tough year for InMode because of the failed project that tried to sell the company without success. And we remain public.”
— Moshe Mizrahy, CEO, InMode — Q1 2026 Earnings Call (Motley Fool transcript, May 6, 2026)
This is the full extent of what CEO Mizrahy disclosed. He did not elaborate on the process, name potential buyers, or explicitly state that the failed sale caused the business difficulties. The context — 2025 was described as “a very tough year” and the failed sale was mentioned in the same breath — suggests a connection, but InMode has not made any direct causal statement. What is confirmed: a sale process was attempted, it failed, and the company remains public.
InMode separately acknowledged significant North American sales force restructuring in 2025 — replacing the East-West structure with a unified North American model, with new leadership brought in at the end of Q3 2025. Whether this restructuring was connected to the sale process is not disclosed.
Separately, Mizrahy disclosed that InMode made two acquisition attempts of its own — targeting an “injectable company” and a “toxin company” (likely in the Botox/neurotoxin or filler space) — but both deals fell through because target company valuations were too high relative to what InMode was willing to pay. This is relevant because it reveals InMode’s strategic intention to expand into injectables, even as it acknowledged the operational complexity of running both energy-based devices (EBD) and pharma/injectable businesses simultaneously.
Section 04
GLP-1 drugs and the changing aesthetics market: threat or opportunity?
The most strategically important discussion on the Q1 2026 earnings call was Mizrahy’s candid assessment of how GLP-1 obesity drugs — Ozempic, Wegovy, Zepbound — are reshaping the medical aesthetics market. This is the clearest articulation InMode has given of its long-term strategic challenge.
“On the other side, other than energy-based devices, GLP-1 took a lot of money from this industry. A lot of money. All the new products — boosters, biostimulators, exosomes — are also competing very toughly with energy-based devices, and some of them are doing very well. That means that in the future, energy-based devices will need either strategic cooperation or M&A or mergers with other types of aesthetic solutions in order to be a one-stop shop.”
— Moshe Mizrahy, CEO, InMode — Q1 2026 Earnings Call
GLP-1 global market ($B)
InMode annual revenue ($M)
GLP-1 market: MarketsandMarkets confirmed $53.74B in 2024, $64.42B in 2025. J.P. Morgan forecast ~$150B by 2030. InMode: SEC 6-K annual press releases. 2026–2030 GLP-1 figures are published third-party forecasts, not InMode guidance.
The GLP-1 market grew from approximately $10 billion in 2021 to $64 billion in 2025 — and is projected to reach $150 billion by 2030. Global prescriptions of GLP-1 agonist therapies grew at roughly 38% annually between 2022 and 2024. An estimated 10 million Americans were on GLP-1 treatment in 2025, projected to reach 25 million by 2030.
The impact on InMode’s addressable market is dual:
| Dynamic | Impact on InMode | Direction |
|---|---|---|
| Patients using GLP-1 for weight loss | Reduced demand for body contouring procedures (BodyTite, EvolveX) — these patients are using pills instead of devices | Negative ↓ |
| “Ozempic face” — skin laxity after rapid weight loss | Increased demand for skin tightening (Morpheus8, FaceC) — GLP-1 patients need RF after weight loss | Positive ↑ |
| GLP-1 spending displaces aesthetics budget | Patients spending $8,000–14,000/year on GLP-1 drugs have less discretionary budget for device treatments | Negative ↓ |
| New patient cohort entering aesthetics | GLP-1 therapies contribute to momentum by expanding the patient pool and increasing engagement among fence-sitters | Positive ↑ |
Sources: Aesthetic medical devices market — Research and Markets ($13.5B 2021), Straits Research ($26.15B 2024, $29.15B 2025, 11.5% CAGR). GLP-1 — MarketsandMarkets, Towards Healthcare, J.P. Morgan 2030 forecast. InMode — SEC 6-K annual press releases. 2026 figures = published forecasts or guidance midpoints.
Mizrahy’s most interesting observation was that no major company currently offers both energy-based devices and injectables (fillers, toxins, biostimulators) under one roof — and that this will change. He identified the core operational challenge: EBD salespeople sell a $100,000 capital device; injectable salespeople sell $100 syringes. These are completely different sales motions, different relationships, different clinical training. Yet the same patient dollar — what he called the “aesthetic dollar” — is increasingly choosing between a Morpheus8 session and a biostimulator injection.
The strategic implication for InMode: either find a partner with an injectable portfolio, or acquire one (which it attempted twice and failed). The company that solves this integration challenge could build a dominant position in the combined aesthetics market.
Section 05
Capital allocation: $537M in cash and aggressive buybacks
Despite revenue and margin pressures, InMode’s balance sheet remains exceptional. The company held $537.2 million in cash, marketable securities, and deposits as of March 31, 2026 — with zero debt. This gives it significant strategic optionality.
Source: SEC 6-K press releases. Cash figures for Q3 2024 and Q4 2024 not available in source data.
InMode repurchased $127.4 million of shares in 2025 and $52.7 million year-to-date in 2026 (3.86 million shares). At the current market price, this represents aggressive capital return to shareholders — effectively the company is betting on itself. With a market cap well below the $537 million cash position at recent prices, management is signaling that it views the stock as deeply undervalued.
As of early May 2026, InMode’s market cap is approximately $907M against $537M in cash — giving an Enterprise Value (market cap minus cash) of roughly $370M. That means the market values the entire operating business — generating $370M in annual revenue and positive operating cash flow — at just $370M, or roughly 1x revenue. Management’s aggressive buybacks ($285M in 2024, $127M in 2025) suggest they view this valuation as too conservative.
Section 06
Management guidance and outlook for 2026
| Metric | FY2026 guidance | Q1 2026 actual | Status |
|---|---|---|---|
| Revenue | $365–375 million | $82.0M (19.5% of midpoint) | On track — Q1 typically lightest |
| Non-GAAP gross margin | 74–76% | 75% GAAP | Within range ✓ |
| Non-GAAP op. income | $73–78 million | $14.0M (17.5% of midpoint) | On pace for low end |
| Non-GAAP EPS | $1.33–1.38 | $0.25 (18.5% of midpoint) | On pace for low end |
| U.S. stabilization | Expected to improve | “Early signs” — March strong | On track ✓ |
| New laser platforms | Picofy + CO2 contribution | Meaningful Q1 revenue contribution | Delivering ✓ |
“We executed in line with our expectation in Q1 2026. In addition, we’re seeing early signs of stabilization, particularly in the U.S., and believe that this quarter reinforces our confidence that 2026 is moving in the right direction. March delivered particularly strong progress, reinforcing our confidence that these changes are beginning to bear fruit.”
— Moshe Mizrahy, CEO, InMode — Q1 2026 Earnings Call
“It’s I mean, we believe it will stay the same, like 74%, 75%.”
— Yair Malca, CFO, InMode — Q1 2026 Earnings Call
CFO Yair Malca stepped down effective May 5, 2026 — one day before the Q1 earnings call. An interim arrangement has been put in place and Malca will consult for at least six months to support the transition. CFO departures at sensitive moments in a company’s recovery trajectory are worth monitoring, though the announced transition plan suggests this was planned rather than abrupt.
Europe remains a bright spot — described as “a strong region with meaningful room for continued growth” — while Asia is “more mixed, consistent with what we saw last year,” with China representing long-term potential but near-term headwinds. The Argentina direct subsidiary, established in late 2025, is expected to begin generating sales from Q2 2026.