InMode Ltd. (INMD): Financial results for Q3 2026
InMode Ltd. (INMD) furnished an SEC Form 6-K — earnings release. Exhibit 99.1 InMode Reports Third Quarter 2026 Financial Results: Quarterly GAAP Revenues of $92.1 Million; Reaffirms Full-Year 2026 Financial Outlook YOKNEAM, Israel, November 11, 2026 - InMode Ltd. (Nasdaq: INMD) (“InMode”) , a leading global provider of innovative medical tech
How this was made
The 30-second read
Why it matters
The earnings release provides the first public disclosure of Q3 numbers and reaffirmed guidance, offering a baseline for valuation.
Market read
Primary earnings disclosure with modest scale; limited trading impetus beyond confirming expectations.
What to watch
The non‑recurring tariff refund boosted gross margin; future margin may revert without it.
InMode Q3 2026 GAAP revenues of $92.1 million, broadly in line with the prior year; GAAP operating margin 19% versus 22%; FY2026 outlook reaffirmed
Revenue was broadly flat year over year at $92,138 thousand versus $93,165 thousand, and consumables and service fell 3%. GAAP operating income fell to $17,508 thousand from $20,897 thousand as sales and marketing, and general and administrative expense rose. Gross margin held at 78%, helped by a one-time U.S. tariff refund that the company says added about one percentage point. Cash of $512.7 million remains large, and the full-year outlook was reaffirmed, but profitability declined.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, Q3 2026GAAP | $92.14M | – | – |
| Consumables and service revenues, Q3 2026GAAP | $19.33M | – | -3% |
| Capital equipment revenues, United States, Q3 2026GAAP | $42.68M | – | – |
| Capital equipment revenues, International, Q3 2026GAAP | $30.13M | – | – |
| Total capital equipment revenues, Q3 2026GAAP | $72.81M | – | – |
| Gross margin, Q3 2026GAAP | 78% | – | – |
| Gross margin, Q3 2026non-GAAP | 78% | – | – |
| Gross profit, Q3 2026GAAP | $71.79M | – | – |
| Cost of revenues, Q3 2026GAAP | $20.34M | – | – |
| Research and development, Q3 2026GAAP | $3.86M | – | – |
| Sales and marketing, Q3 2026GAAP | $45.95M | – | – |
| General and administrative, Q3 2026GAAP | $4.47M | – | – |
| Total operating expenses, Q3 2026GAAP | $54.29M | – | – |
| Operating income, Q3 2026GAAP | $17.51M | – | – |
| Operating margin, Q3 2026GAAP | 19% | – | – |
| Operating income, Q3 2026non-GAAP | $20.55M | – | – |
| Operating margin, Q3 2026non-GAAP | 22% | – | – |
| Finance income, net, Q3 2026GAAP | $4.71M | – | – |
| Income taxes, Q3 2026GAAP | $3.35M | – | – |
| Net income, Q3 2026GAAP | $18.86M | – | – |
| Diluted earnings per share, Q3 2026GAAP | $0.32 | – | – |
| Basic earnings per share, Q3 2026GAAP | $0.33 | – | – |
| Net income, Q3 2026non-GAAP | $21.90M | – | – |
| Diluted earnings per share, Q3 2026non-GAAP | $0.37 | – | – |
| Net cash provided by operating activities, Q3 2026GAAP | $11.38M | – | – |
| Total revenues, nine months 2026GAAP | $269.7M | – | – |
| Capital equipment revenues, United States, nine months 2026GAAP | $119.4M | – | – |
| Capital equipment revenues, International, nine months 2026GAAP | $87.31M | – | – |
| Total capital equipment revenues, nine months 2026GAAP | $206.7M | – | – |
| Consumables and service revenues, nine months 2026GAAP | $63M | – | – |
| Cost of revenues, nine months 2026GAAP | $64.88M | – | – |
| Gross profit, nine months 2026GAAP | $204.9M | – | – |
| Research and development, nine months 2026GAAP | $11.06M | – | – |
| Sales and marketing, nine months 2026GAAP | $139.7M | – | – |
| General and administrative, nine months 2026GAAP | $14.28M | – | – |
| Total operating expenses, nine months 2026GAAP | $165.0M | – | – |
| Operating income, nine months 2026GAAP | $39.82M | – | – |
| Operating income, nine months 2026non-GAAP | $50.53M | – | – |
| Finance income, net, nine months 2026GAAP | $16.44M | – | – |
| Income taxes, nine months 2026GAAP | $8.77M | – | – |
| Net income, nine months 2026GAAP | $47.49M | – | – |
| Diluted earnings per share, nine months 2026GAAP | $0.78 | – | – |
| Net income, nine months 2026non-GAAP | $58.59M | – | – |
| Diluted earnings per share, nine months 2026non-GAAP | $0.96 | – | – |
| Net cash provided by operating activities, nine months 2026GAAP | $47.82M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Capital equipment revenues, United StatesPrinted prior-year value $45,203 thousand (49% of Q3 2025 revenues). The release says U.S. and international capital equipment revenue remained relatively stable compared with the second quarter of 2026, but prints no Q2 figure. No cause for the change is given. | $42,682 thousand, 46% of Q3 2026 total revenues | – | – |
| Capital equipment revenues, InternationalPrinted prior-year value $28,063 thousand (30% of Q3 2025 revenues). The release says revenues in Asia continued to grow strongly and reached another quarterly record, reflecting sustained demand across key markets in the region. No Asia-specific figure is printed. | $30,130 thousand, 33% of Q3 2026 total revenues | – | – |
| Total capital equipment revenuesPrinted prior-year value $73,266 thousand (79% of Q3 2025 revenues). Nearly flat year over year. | $72,812 thousand, 79% of Q3 2026 total revenues | – | – |
| Consumables and service revenuesPrinted prior-year value $19,899 thousand (21% of Q3 2025 revenues). The release states a decrease of 3% to $19.3 million. The release gives no cause. | $19,326 thousand, 21% of Q3 2026 total revenues | – | -3% |
| Minimal-invasive technology revenuesShare of revenue as printed. Q3 2025 total share was 75% (United States 75%, International 76%). The release gives no cause for the shift. | 78% of Q3 2026 total revenues (United States 80%, International 77%) | – | – |
| Hands-free technology revenuesShare of revenue as printed. Q3 2025 total share was 2%. The release gives no cause. | 1% of Q3 2026 total revenues (United States none, International 2%) | – | – |
| Non-invasive technology revenuesShare of revenue as printed. Q3 2025 total share was 23%. The release gives no cause. | 21% of Q3 2026 total revenues (United States 20%, International 21%) | – | – |
FY2026, fiscal year ending December 31, 2026 (reaffirmed) outlook
- RevenueRevenues between $365 million and $375 million
- Gross marginNon-GAAP gross margin between 74% and 76%
- NoteNon-GAAP income from operations between $68 million and $73 million
- NoteNon-GAAP earnings per diluted share between $1.29 and $1.34
- NoteManagement reaffirmed its previously issued financial outlook for the full fiscal year. The release says these expectations are based on current estimates and are subject to change.
Capital returns
- Repurchase of ordinary shares, nine months 2026: $(87,752) thousand, versus $(127,444) thousand in nine months 2025 (cash flow statement, GAAP).
- Repurchase of ordinary shares, Q3 2026: none printed ('-') and none printed for Q3 2025.
- Tax withholding related to vesting of restricted share units, nine months 2026: $(1,802) thousand; none printed for nine months 2025.
- No dividend is printed in the release.
What drove it
- Company explanation for the decline in operating margin (GAAP 19% versus 22%; non-GAAP 22% versus 25%): primarily attributable to the restructuring of the North American sales team implemented toward the end of 2025, increased sales and marketing investments to retain talent and maintain market share, and higher general and administrative expenses driven by increased professional services costs. The company says these factors are expected to continue to affect expenses for the foreseeable future.
- Company statement on gross margin: Q3 2026 benefited from a non-recurring U.S. tariff refund that increased gross margin by approximately one percentage point. Gross margin was 78% in both periods.
- Revenues in Asia continued to grow strongly and reached another quarterly record, according to the company.
- Company reports the initial launch of Morpheus8 Max as successful and expects continued growth.
- General and administrative expense rose to $4,474 thousand from $2,899 thousand. The non-GAAP reconciliation shows $4,133 thousand versus $2,624 thousand. Nine-month G&A includes $1,262 thousand of expenses related to the Special Committee review, which the company excludes from non-GAAP results.
- Share-based compensation is excluded from non-GAAP results, and the company states this as its definition.
Concerns
- GAAP operating income fell 16% from the comparable quarter in dollar terms: $17,508 thousand versus $20,897 thousand. GAAP operating margin fell to 19% from 22%.
- Total operating expenses rose to $54,286 thousand from $51,412 thousand while revenue was broadly flat. Sales and marketing rose to $45,950 thousand from $44,970 thousand, and general and administrative more than rose to $4,474 thousand from $2,899 thousand.
- Consumables and service revenues declined 3% to $19.3 million, which the release does not explain.
- Gross margin of 78% included a non-recurring U.S. tariff refund that the company says added about one percentage point. Excluding that benefit is not a figure the release prints.
- Nine-month GAAP net income fell to $47,489 thousand from $66,806 thousand, and nine-month operating cash flow fell to $47,821 thousand from $62,583 thousand.
- The release states that operations have not been materially affected by the Israel-related conflicts to date, but describes the situation as unpredictable and capable of escalating at any time.
What to watch
- Whether the company's expectation of continued stabilization holds in the fourth quarter, as stated by the CFO.
- The Q4 and full-year 2026 results and the earnings conference call the company plans to host early next year.
- Whether sales and marketing and general and administrative expense trends continue, as the company says these factors are expected to persist.
- Consumables and service revenue, which declined 3% in Q3 2026.
- Growth in Morpheus8 Max, which the company says is expected to continue.
- The resumption of investor relations activities now that the Special Committee has completed its work and ceased its activities.
- Delivery against the reaffirmed FY2026 non-GAAP outlook for income from operations ($68 million to $73 million) and non-GAAP EPS ($1.29 to $1.34), given that nine-month non-GAAP operating income is $50,529 thousand.
Balance sheet and cash flow
- Total cash position of $512.7 million as of September 30, 2026, including cash and cash equivalents, marketable securities and short-term bank deposits (company's stated total).
- Cash and cash equivalents: $397,111 thousand at September 30, 2026, versus $302,543 thousand at December 31, 2025.
- Marketable securities: $4,700 thousand at September 30, 2026, versus $83,632 thousand at December 31, 2025.
- Short-term bank deposits: $110,916 thousand at September 30, 2026, versus $169,159 thousand at December 31, 2025.
- Total assets: $740,475 thousand at September 30, 2026, versus $766,429 thousand at December 31, 2025.
- Total liabilities: $89,257 thousand at September 30, 2026, versus $83,231 thousand at December 31, 2025.
- Total shareholders' equity: $651,218 thousand at September 30, 2026, versus $683,198 thousand at December 31, 2025.
- The balance sheet prints no borrowings or debt line.
- Net cash provided by operating activities: $11,384 thousand in Q3 2026 versus $24,467 thousand in Q3 2025, and $47,821 thousand in nine months 2026 versus $62,583 thousand in nine months 2025.
- Investment in short-term deposits, nine months 2026: $(279,670) thousand; proceeds from short-term deposits: $337,570 thousand.
Analysis
InMode reported Q3 2026 GAAP revenues of $92,138 thousand, against $93,165 thousand a year earlier, which the company describes as broadly in line. The mix was steady: capital equipment revenues were $72,812 thousand against $73,266 thousand, with U.S. capital equipment lower at $42,682 thousand (from $45,203 thousand) and international higher at $30,130 thousand (from $28,063 thousand). The company says Asia grew strongly to another quarterly record, though no Asia figure is printed. Consumables and service revenues fell 3% to $19,326 thousand, and the release gives no reason. For the nine months, total revenue rose to $269,744 thousand from $266,641 thousand, driven by consumables and service ($63,000 thousand versus $59,914 thousand), while international capital equipment fell to $87,309 thousand from $91,329 thousand.
Profitability weakened. Gross margin was 78% in both periods, but the company says Q3 2026 included a non-recurring U.S. tariff refund worth about one percentage point. Operating expenses rose to $54,286 thousand from $51,412 thousand, led by general and administrative expense at $4,474 thousand (from $2,899 thousand) and sales and marketing at $45,950 thousand (from $44,970 thousand). GAAP operating income was $17,508 thousand against $20,897 thousand, and GAAP operating margin fell to 19% from 22%. Non-GAAP operating income was $20,547 thousand against $23,593 thousand, a 22% margin against 25%. The company attributes the margin decline to the restructuring of its North American sales team, higher sales and marketing spend to retain talent and share, and higher professional services costs, and says these will keep affecting expenses. GAAP diluted EPS was $0.32 against $0.34, and non-GAAP diluted EPS was $0.37 against $0.38.
For the nine months, GAAP operating income was $39,821 thousand against $59,396 thousand and GAAP net income was $47,489 thousand against $66,806 thousand. Operating cash flow was $11,384 thousand in Q3 2026 against $24,467 thousand, and $47,821 thousand for nine months against $62,583 thousand. The company spent $87,752 thousand on share repurchases in the nine months, against $127,444 thousand a year earlier, and none in Q3 2026. Cash and cash equivalents rose to $397,111 thousand from $302,543 thousand at year-end 2025, while marketable securities fell to $4,700 thousand from $83,632 thousand and short-term deposits to $110,916 thousand from $169,159 thousand. The company reports total cash of $512.7 million. Total equity fell to $651,218 thousand from $683,198 thousand, and the balance sheet shows no debt line.
The company reaffirmed its FY2026 outlook: revenues of $365 million to $375 million, non-GAAP gross margin of 74% to 76%, non-GAAP income from operations of $68 million to $73 million, and non-GAAP diluted EPS of $1.29 to $1.34. The release does not print a prior outlook for this review, so no guidance comparison is made. Nine-month non-GAAP operating income was $50,529 thousand, and the release does not print the full-year split. The Special Committee has completed its work and ceased its activities, and the company says investor relations will resume. The company also says its operations have not been materially affected by regional conflicts to date.
Management, verbatim
Total revenue in the third quarter was largely consistent with the prior-year period
Moshik Itzkovich, Chief Financial Officer, InMode
These results are consistent with the stabilization we expect to continue through the remainder of the year.
Moshik Itzkovich, Chief Financial Officer, InMode
Not in the filing
stated, not guessed- Prior-year and prior-quarter percentage changes for total revenues, capital equipment and operating lines are not printed, so yoy_change is null for them.
- Q2 2026 (prior-quarter) figures are not printed; the CFO refers only qualitatively to stability versus Q2 2026.
- The previous period's outlook was not provided, so vs_prior_guidance is empty.
- Operating expense, tax rate and nine-month non-GAAP gross margin guidance are not printed.
- Non-GAAP gross margin for the nine months is not printed.
- Basic and diluted weighted share counts are not included as key metrics by design.
- The release gives no cause for the 3% decline in consumables and service revenues.
- The release gives no quantified Asia revenue figure.
- No debt, dividend or Q3 2025 versus Q3 2026 percentage change for net income is printed.
- Share price reaction and analyst consensus are not in the documents.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
InMode Ltd. (NASDAQ: INMD) filed a Form 6‑K reporting its third‑quarter 2026 financial results.
Ticker impact
InMode disclosed Q3 2026 GAAP revenue of $92.1M and reaffirmed its full-year 2026 outlook.
likely modest pressure as results are in line with prior year and guidance unchanged
The numbers are new and directly from the filing; no surprise upside or downside, so price may stay flat or dip slightly.
Market effects
Medical device sector sees no major shift; peers may track InMode's stable performance.
No immediate regional impact; Israeli‑based firm reports stable results.
Limited global effect; earnings are modest and reaffirmed guidance.
Counterpoint
If investors expect a turnaround, the reaffirmed outlook could be seen as a missed upside opportunity.
Key entities
- companyInMode Ltd.
Medical technology provider reporting Q3 2026 results.
