INSP Stock Forecast & Price Target

Inspire Medical Systems has demonstrated a significant increase in advertising spending, with a notable 34% year-over-year increase to $100 million, which the company expects will enhance brand awareness and drive procedural growth. The company's guidance for 2025 revenue and GAAP EPS was reaffirmed, reflecting a positive trend with a 3Q EPS beat contributing to an upward adjustment of $0.50 per share for the full-year estimate. Furthermore, management is anticipating improvements in average selling prices (ASP) starting in calendar year 2026 due to favorable reimbursement developments, which, in conjunction with increasing direct-to-consumer expenditures and disciplined cost management, is expected to bolster volumes and overall financial performance.

Inspire Medical Systems Inc has encountered a negative trend in advertising expenditures, with a projected decrease in 2024 ad expenses by 5% year-over-year, indicating a potential decline in market activity and visibility. Furthermore, the launch of the Inspire 5 product has been more challenging than expected, prompting management to lower revenue and earnings per share (EPS) outlooks for the upcoming periods due to a slower adoption trajectory. Additionally, operational expenses have been cut, resulting in reduced spending on research and development, which may hinder long-term innovation, while ongoing challenges in procedure volume pose further risks to revenue growth projections.