The company’s gross margin tightened to 75% from 80% a year prior, while operating margins fell to 13% from 24%. According to management, these declines stem from a combination of increased product costs, the restructuring of the North American sales team, and higher administrative expenses tied to professional services. To retain market share and talent, InMode has ramped up marketing and sales investments, a trend expected to persist through the remainder of the year.
InMode Faces Margin Pressure Despite Revenue Stability in Q2 2026
InMode reported $95.6 million in second-quarter revenue for 2026, matching its performance from the same period last year. Despite this stability, the medical technology firm saw its GAAP operating income drop to $12.3 million as higher operational costs and a shifting product mix weighed on overall profitability.
While the company’s capital equipment business in the U.S. remains stable, growth was driven by a 13% increase in revenue from consumables and service, which reached $22.3 million. Regional performance was buoyed by record revenue in Asia. Looking ahead, InMode projects full-year 2026 revenues between $365 million and $375 million. The company currently maintains a cash position of $501.1 million, having repurchased 6.38 million shares for $87.8 million during the quarter. Amid an ongoing evaluation of unsolicited proposals, InMode has suspended its investor conference calls.
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