InMode's Flat 2026 Forecast Tempers Q4 2025 Revenue Growth

YOKNEAM, Israel – January 08, 2026 – InMode Ltd. (Nasdaq: INMD), a prominent manufacturer of radio-frequency medical devices, today released preliminary financial results that paint a mixed picture of its performance, signaling a potential stabilization after a period of declining revenue but setting a cautious tone for the year ahead.

The company announced it expects fourth-quarter 2025 revenue to land between $103.6 million and $103.8 million. While this figure falls short of prior analyst consensus estimates, which hovered around $108.5 million, it notably represents a year-over-year increase from the $97.9 million reported in the fourth quarter of 2024. However, the full-year 2025 preliminary revenue of $370.2 million to $370.4 million continues a downward trend from the $394.8 million generated in 2024.

Looking forward, InMode provided initial full-year 2026 revenue guidance in the range of $365 million to $375 million. This forecast suggests a largely flat trajectory compared to the 2025 results, tempering expectations for a swift return to the robust growth the company has previously enjoyed. The full details are slated for discussion during a conference call scheduled for February 10, 2026, where executives will face questions from the investment community.

A Deeper Dive into the Numbers

InMode's preliminary announcement provides an early, if incomplete, look into its financial health. The fourth-quarter revenue growth is a bright spot, suggesting a potential bottoming out of the sales slump that has characterized recent fiscal periods. The nearly 6% year-over-year increase for the quarter marks a reversal from the 23% year-over-year decline seen in Q4 2024, indicating improved performance in the final months of 2025.

Despite this quarterly improvement, the full-year picture is less rosy. The projected 2025 revenue of approximately $370.3 million at the midpoint represents a roughly 6% decline from 2024's full-year revenue and a more substantial drop from the company's peak revenue of nearly $490 million in 2023. This performance also misses the pre-announcement analyst consensus for full-year 2025 sales of about $378.3 million, a gap that will likely trigger adjustments in financial models across Wall Street.

Profitability, a long-standing strength for InMode, remains high, though it shows signs of pressure. Management anticipates a non-GAAP gross margin for the full year of 2025 to be between 78% and 79%. While exceptionally strong for the industry, this is a slight contraction from the 81% non-GAAP gross margin reported for the full year of 2024. In previous quarters, the company has attributed margin pressure to factors such as tariffs, a headwind that may be continuing to impact profitability.

Navigating a Challenging Market

InMode's financial results do not exist in a vacuum. They reflect a broader industry landscape that has been navigating significant macroeconomic crosscurrents. Throughout 2024 and 2025, the medical aesthetics sector has grappled with cautious consumer sentiment, particularly in the United States, which is InMode's most profitable market. Higher interest rates and economic uncertainty have led some consumers to postpone or forgo elective procedures, impacting capital equipment sales for device manufacturers.

At the same time, the fundamental demand for the types of procedures InMode enables remains strong. The market continues to show a powerful preference for minimally invasive and non-invasive treatments that offer visible results with reduced downtime and risk compared to traditional surgery. InMode's core competency lies in its proprietary radio-frequency (RF) technology, which powers a suite of devices for skin tightening, body contouring, and other aesthetic and therapeutic applications. This technological focus keeps the company well-aligned with long-term consumer and practitioner trends.

The challenge for InMode and its competitors has been converting that underlying demand into sales in a difficult economic climate. The company's ability to show year-over-year growth in the fourth quarter may suggest that its strategies for navigating this environment are beginning to bear fruit, or that market conditions saw a modest improvement toward the end of the year.

Strategic Outlook and Future Growth Drivers

The 2026 revenue guidance of $365 million to $375 million is perhaps the most telling element of the announcement. By projecting a year of stabilization rather than a significant rebound, management appears to be setting realistic expectations for investors. This cautious stance likely reflects ongoing uncertainty in the global economy and the competitive nature of the medical technology market.

To drive performance and meet its targets, InMode is leaning on a multi-pronged strategy. Product innovation remains central to its identity. The company has recently launched new platforms such as Ignite and OptimasMAX, which are expected to contribute more meaningfully to revenue in 2026. Further expansion into new treatment areas, including men's wellness, is also on the horizon, opening up new potential revenue streams.

Beyond product development, the company has made key strategic shifts in its operations. The recent appointment of a new President of North America was a move designed to unify and strengthen management across its most critical geographic market. The success of this leadership and the market adoption of its newest technologies will be crucial for steering the company back toward a growth trajectory.

The company's business model, which includes a recurring revenue stream from consumables and services, provides a resilient foundation. As the installed base of InMode devices grows, so too does the predictable revenue from the items required to perform procedures, offering a buffer against the volatility of capital equipment sales.

Investor and Analyst Perspectives

The immediate market reaction to the January 8th announcement was relatively subdued, with INMD shares closing the day with a slight gain. This muted response suggests that investors may be weighing the positive surprise of fourth-quarter year-over-year growth against the disappointment of the missed full-year estimates and the uninspiring 2026 guidance.

All eyes will now turn to the conference call scheduled for February 10, 2026. Investors and analysts will be listening intently for commentary from CEO Moshe Mizrahy, CFO Yair Malca, and CTO Dr. Michael Kreindel. Key topics will undoubtedly include the specific drivers of the fourth-quarter performance, the assumptions underpinning the 2026 forecast, and the company's strategic plan to defend its market share and gross margins. The executive team's commentary on regional performance, particularly in the U.S. and China, and the sales momentum of its newer platforms will be critical for assessing the company's path forward. Following this call, analysts will recalibrate their expectations, leading to revised ratings and price targets that will shape the narrative for InMode stock in the coming months.