Inspire Medical Systems Inc. Common Stock (INSP)

FairStock Score: 77/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Inspire Medical Systems is a medical device company selling a neurostimulation therapy for obstructive sleep apnea. The filed numbers show a genuine turnaround: FY2023 revenue was $624.8M with a net loss of $21.2M and EPS -$0.72; FY2024 revenue rose to $802.8M with net income $53.5M and EPS $1.75; FY2025 revenue reached $912.0M with net income $145.4M and EPS $4.89. That is real profit progress. But the latest trend is uneven. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $200.6M, net income only $314,000, and diluted EPS $0.01. A year earlier, fiscal Q2 2025, revenue was $217.1M and net income was -$3.6M, so profit improved but sales declined. Fiscal Q1 2026 also showed a net loss of $11.3M on revenue of $204.6M. The balance sheet looks strong: debt-to-equity is 0.04, Altman Z-Score is 12.57, and trailing free cash flow is $117.1M, a 5.9% FCF yield. FairStock's calculations at the 2026-10-13 close give P/E 15.20, P/B 2.41, ROE 17.97%, ROCE 3.91%, PEG 0.14, and EV/EBITDA 23.78. The P/E and PEG look undemanding, but the Graham Number is $53.95, putting the $68.86 price 27.64% above a conservative value anchor. FairStock classifies it as a TURNAROUND, returned to profit after a loss within three years. The business description suggests a specialized implanted therapy, but the recent revenue decline and razor-thin Q2 margin mean execution is not yet proven. I'd want durable revenue and margin evidence before calling this a bargain.

In plain English: Inspire Medical Systems sells an implanted nerve-stimulation device to treat moderate to severe obstructive sleep apnea. The business has returned to profit, but sales slipped in the latest reported quarter and profit was barely positive. At the recent price, the stock looks more expensive than a conservative asset-and-earnings measure suggests, so it is not an obvious bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer