Inspire Medical Seeks Redemption at J.P. Morgan Conference

MINNEAPOLIS, MN – December 29, 2025 – Inspire Medical Systems will step into the investor spotlight at the 44th Annual J.P. Morgan Healthcare Conference on January 12, 2026, facing a critical audience eager for a clear vision of its future. The presentation offers a high-stakes platform for the medical technology firm to solidify its recovery narrative after a year of extreme highs and lows that rattled investor confidence.

While the company’s press release simply announces its participation, the context is far more dramatic. Inspire, the market leader in neurostimulation for obstructive sleep apnea (OSA), is working to move past a calamitous product launch that erased over a billion dollars from its market value and triggered multiple class-action lawsuits. Now, with operational issues seemingly resolved and a major financial tailwind on the horizon, the J.P. Morgan stage is set for a pivotal moment.

A Year of Highs and Lows: The Inspire V Saga

Inspire’s 2025 was defined by its next-generation device, the Inspire V system. Approved by the FDA in August 2024, the device was hailed as a significant leap forward. By integrating respiratory sensing directly into the neurostimulator, it eliminated the need for a separate pressure-sensing lead, promising to simplify the surgical procedure and reduce implant times by up to 20%.

Following a strong 2024 that marked its first full year of profitability, the company entered 2025 with ambitious revenue guidance of $940 million to $955 million. However, the full commercial launch of Inspire V quickly unraveled. In August 2025, the company shocked Wall Street by slashing its revenue forecast to between $900 million and $910 million and cutting its net income guidance by more than 75%. The market reaction was brutal: Inspire’s stock plummeted 32.4% in a single day, wiping out $1.2 billion in market capitalization.

The company attributed the stumble to a cascade of operational failures. Key among them were delays in updating Medicare billing software for the new procedure code, which prevented centers from getting paid for implants. Furthermore, many treatment centers were sitting on a surplus of the older Inspire IV devices, creating a channel glut that suppressed demand for the new system. Inadequate training and onboarding at surgical centers further compounded the rollout issues.

The fallout was not just financial. A series of securities fraud lawsuits emerged, alleging that the company had misled investors by concealing these operational deficiencies and painting an overly optimistic picture of the Inspire V launch. The legal battles are ongoing, with a lead plaintiff deadline set for early January 2026.

Despite the disastrous second quarter, the company has since shown signs of a robust recovery. By the third quarter of 2025, Inspire reported that billing software issues were resolved and that over 75% of centers had successfully transitioned to Inspire V. Revenue began to rebound, and the company raised its full-year earnings-per-share guidance, signaling that the worst of the operational storm may have passed. Clinical data for Inspire V has also been strong, showing excellent safety, efficacy, and high patient adherence.

Beyond CPAP: The Battle for the Sleep Apnea Market

Inspire’s corporate drama is playing out against the backdrop of a massive and evolving market for obstructive sleep apnea treatments. Affecting an estimated one billion people globally and 39 million in the U.S., OSA remains a largely undiagnosed condition, representing a vast, untapped patient population. The global market for sleep apnea devices, valued at over $6 billion in 2024, is projected to grow steadily.

For decades, the gold standard treatment has been Continuous Positive Airway Pressure (CPAP), a therapy notorious for its low patient adherence. With compliance rates hovering around 50%, millions of patients are left seeking effective alternatives. This is the gap Inspire’s therapy was designed to fill. As the first and only FDA-approved neurostimulation technology for moderate to severe OSA, the company’s implantable device offers a mask-free solution for those who cannot tolerate or fail CPAP.

However, the competitive landscape is dynamic. Beyond CPAP giants like ResMed and Philips, Inspire faces competition from oral appliances and, more recently, a new class of pharmaceuticals. The rise of GLP-1 drugs such as Zepbound and Wegovy, which are approved for weight management and have shown efficacy in reducing OSA severity, has become a key topic of investor debate. While some view these drugs as a long-term competitive threat, others in the industry suggest they may actually expand the market by increasing patient engagement with sleep specialists, ultimately creating a larger pool of diagnosed individuals who may become candidates for Inspire therapy down the line.

Investor Scrutiny and a Look Ahead to 2026

As Inspire’s management prepares for its J.P. Morgan presentation, investors and analysts will be looking for proof of “flawless execution” moving forward. The analyst consensus remains a “Moderate Buy,” with average price targets suggesting significant upside from current levels, but the recent volatility has instilled a sense of caution.

Beyond addressing the 2025 launch stumbles, the key focus will be on the company’s outlook for 2026 and beyond. A major catalyst is set to supercharge Inspire’s growth: a dramatic increase in reimbursement rates. The Centers for Medicare & Medicaid Services (CMS) has approved a roughly 50% jump in payment for the Inspire V implant procedure, effective in 2026. Reimbursement for hospital outpatient procedures will rise from approximately $30,500 to $40,500, while Ambulatory Surgical Center (ASC) rates will climb from $26,800 to $42,400. This substantial financial incentive is expected to significantly boost adoption and improve profitability for both Inspire and the medical centers performing the procedure.

The company has already signaled confidence, authorizing a $200 million share buyback plan in August and providing an early revenue growth outlook of 10-11% for 2026. The J.P. Morgan conference will be management's opportunity to flesh out this guidance and articulate how it plans to leverage the higher reimbursement rates to accelerate market penetration. With the difficult Inspire V transition nearly complete, the company is poised to tell a compelling story of renewed momentum. The presentation will be crucial for convincing the investment community that the stumbles of 2025 were a temporary setback, not a sign of systemic weakness, and that the company is ready to fully capitalize on the favorable market conditions ahead.