InMode Weighs Future After Steel Partners' Majority Stake Proposal

YOKNEAM, Israel – February 02, 2026 – InMode Ltd. (NASDAQ: INMD), a global leader in radio-frequency medical devices, has officially broken its silence on swirling market rumors, confirming it is evaluating potential strategic alternatives in the face of a significant takeover proposal. The announcement follows speculation surrounding a non-binding offer from the diversified holding company Steel Partners Holdings L.P. to acquire a controlling 51% stake in the company.

In a statement issued today, the Israeli-based firm acknowledged the recent market chatter and confirmed its board is actively engaged in a comprehensive review process. This move signals a critical juncture for the medical technology innovator, potentially paving the way for a major shift in ownership and strategy.

A Formal Review Amidst Unsolicited Interest

In response to the proposal and other market speculation, InMode has established a committee of independent directors to spearhead the evaluation of its strategic options. According to the company, this committee has retained its own independent legal and financial advisors to ensure a thorough and impartial review. The committee's mandate is to assess any proposals, whether from third parties or internal management, in accordance with its fiduciary duties and the best interests of all shareholders.

While InMode did not disclose the terms of the proposal, reports from sources familiar with the matter indicate that Steel Partners offered to purchase 51% of InMode's outstanding shares for $18 a share. This price represents a notable premium over the stock's recent trading levels and aligns with some analyst estimates of the company's intrinsic value. The offer, however, remains non-binding, meaning it is not a definitive agreement and could be modified or withdrawn.

InMode's stock (INMD) reacted positively to the news, rising over 7% in after-hours trading when the bid was first reported, bringing its market capitalization to approximately $1.1 billion. The company has cautioned that its review process may not result in a transaction. "There can be no assurance as to whether this review will result in a transaction or any other strategic outcome for the Company, or as to the timing or terms of any such transaction or outcome," the official statement read. InMode has stated it does not intend to comment further unless required by law.

Decoding the Acquirer: The Steel Partners Playbook

The potential acquirer, Steel Partners Holdings L.P. (NYSE: SPLP), is a global holding company with a formidable history rooted in activist investing. Founded by Warren G. Lichtenstein, Steel Partners has evolved a distinct strategy focused on acquiring controlling interests in what it deems undervalued public companies and then actively working to unlock long-term value.

Their approach is far from passive. Steel Partners is known for implementing its proprietary "Operational Excellence Programs," which leverage methodologies like lean manufacturing and Six Sigma to streamline operations, reduce waste, and enhance profitability. The firm often targets companies with strong underlying business models that may be facing temporary headwinds or inefficiencies. Post-acquisition, it is common for Steel Partners to consolidate corporate services and remove redundant management layers to achieve immediate cost savings.

With a diverse portfolio spanning industrial products, energy, and logistics, Steel Partners possesses significant financial firepower. The company reported revenues exceeding $2.03 billion for the full year 2024 and maintained a strong cash position of over $460 million as of late 2025. This financial flexibility allows it to pursue strategic acquisitions like the one proposed for InMode. The interest in a medical technology firm like InMode suggests a strategic move to enter a high-growth sector with a company whose recent stock performance may not reflect its long-term potential.

InMode at a Crossroads: Innovation Meets Valuation

InMode's current situation makes it a classic target for a value-oriented investor. The company is a recognized pioneer in the medical aesthetics market, celebrated for its innovative devices that use radio-frequency energy for minimally invasive procedures in dermatology, plastic surgery, and other specialties. However, this innovative edge has recently been tested by macroeconomic challenges.

The company experienced a 20% decline in revenue for the full year 2024 and has lowered its revenue guidance for 2025, citing cautious consumer spending and a challenging market. This performance dip has weighed heavily on its stock price.

Despite the revenue pressures, InMode's financial fundamentals remain robust. It consistently reports high gross margins, typically between 78% and 81%, and boasts a fortress-like balance sheet with over $532 million in cash and marketable securities and virtually no debt as of its latest reporting. This combination of a depressed valuation, strong underlying profitability, and a cash-rich balance sheet creates a compelling opportunity for an investor like Steel Partners, which sees the potential to improve performance and realize value where the market currently does not.

Navigating a Booming Market and an Uncertain Path

The backdrop for this potential corporate drama is the rapidly expanding medical aesthetics industry. The market for radiofrequency-based devices alone is projected to more than double by 2034, reaching over $4 billion, while the broader medical aesthetic device market is forecasted to grow at over 11% annually. This high-growth environment intensifies the stakes for InMode and its competitors, including firms like Candela, Venus Concept, and Cynosure.

The central question for InMode's board, employees, and shareholders is how a potential acquisition by a holding company known for its focus on operational efficiency would impact the company's innovation-driven culture. A partnership could provide the capital and strategic discipline to accelerate growth, or it could risk stifling the research and development that has been the engine of InMode's success.

As the independent committee proceeds with its review, several outcomes are possible. InMode could accept the offer from Steel Partners, a rival bidder could emerge with a more attractive proposal, or the committee could conclude that the best path forward is to remain independent, using the company's own substantial resources to navigate the market's challenges and capitalize on its long-term growth prospects. For now, the future of the medical technology innovator hangs in the balance, with the entire industry watching closely.