INSP Stock Forecast & Price Target

Inspire Medical Systems Inc. has demonstrated strong financial performance with a notable 56% increase in spending for the third quarter of 2025, a trend expected to continue into 2026, which historically correlates with increased awareness and procedure volumes. The company reaffirmed its revenue guidance for FY2025, projecting a 12-13% year-over-year growth to $900-910 million, alongside an increase in GAAP EPS guidance to $0.90-1.00, up from a prior range of $0.40-0.50. Additionally, the firm reported a third-quarter revenue of approximately $224.5 million, marking a 10% increase, which surpassed internal expectations driven by strong sales in both the U.S. and international markets.

Inspire Medical Systems, Inc. has faced a slowdown in advertising expenditure, resulting in a projected $95 million for 2024, reflecting a 5% year-over-year decline, which raises concerns about marketing effectiveness and demand generation. The launch of the Inspire 5 product has encountered more challenges than anticipated, leading management to revise revenue and earnings per share outlook downward, indicating a hindered adoption trajectory that could negatively impact future growth. Additionally, the reduction in operating expenses, particularly in research and development, suggests a potential decrease in innovation and could signal long-term challenges in maintaining competitive advantage and market share.