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InMode Reports Third Quarter 2025 Financial Results: Quarterly Revenue of $93.2 Million, 78% Gross Margins

1. INMD's Q3 2025 revenue dropped to $93.2M from $130.2M in 2024. 2. Consumables and service revenue rose 26%, showing strong growth despite challenges. 3. GAAP net income decreased significantly to $21.9M, affecting earnings per share. 4. Cash position remains solid at $532.3M, indicating financial stability. 5. Management anticipates steady revenue guidance for 2025 between $365M to $375M.

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Why Bearish?

The sharp decline in revenue and profit margins may negatively influence investor sentiment and stock price. Historical precedents indicate similar revenue declines typically lead to bearish reactions in the stock market.

How important is it?

The financial results include key indicators like revenue and profitability affecting investor confidence, which directly influences stock price. Furthermore, the continuity in guidance and management responses will be closely watched by analysts and investors.

Why Short Term?

Immediate financial results tend to affect stock price quickly, impacting sentiment before potential recovery. Similar cases in the past have shown market reactions to quarterly earnings reports are typically swift.

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, /PRNewswire/ -- InMode Ltd. (NASDAQ: INMD) ("InMode"), a leading global provider of innovative medical technologies, today announced its consolidated financial results for the third quarter ended September 30, 2025. Third Quarter 2025 Highlights: Quarterly GAAP revenues of $93.2 million, compared to $130.2 million in the third quarter of 2024, which included $31.9 million of pre-order sales. Quarterly revenues from consumables and service of $19.9 million, an increase of 26% compared to the third quarter of 2024. GAAP operating income of $20.9 million. *Non-GAAP operating income was $23.6 million. Total cash position of $532.3 million as of September 30, 2025, including cash and cash equivalents, marketable securities and short-term bank deposits. U.S. GAAP Results (U.S. dollars in thousands, except for per share data)  Q3 2025  Q3 2024 Revenues $93,165 $130,232 (including $31.9M of pre-order sales) Gross Margins 78 % 82 % Net Income $21,863 $50,990 Earnings per Diluted Share $0.34 $0.65 *Non-GAAP Results (U.S. dollars in thousands, except for per share data) Q3 2025 Q3 2024 Gross Margins 78 % 82 % Net Income $24,532 $54,971 Earnings per Diluted Share $0.38 $0.70 *Please refer to "Use of Non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A reconciliation between U.S. GAAP and non-GAAP Statement of Income  is provided following the financial statements that are included in this release. Non-GAAP results exclude share-based compensation and related tax adjustments. Management Comments "The third quarter progressed in line with our expectations, even as broader economic conditions continued to present challenges," said Moshe Mizrahy, Chief Executive Officer of InMode. "Consumer sentiment remains cautious, and global uncertainties persist. Nonetheless, our team remains focused, executing with discipline and investing in the strategic areas that will fuel our long-term trajectory. "On the corporate front, we are excited to welcome Michael Dennison as our new President of North America.  Michael has been with InMode since 2018 and his proven leadership and industry expertise will be instrumental in advancing our regional strategy, deepening customer engagement, and supporting InMode's sustainable growth," Mizrahy concluded. Yair Malca, Chief Financial Officer of InMode, added, "Gross margins in the third quarter were in line with expectations and reflected our proactive planning around tariff impacts." Third Quarter 2025 Financial Results Total revenues for the third quarter of 2025 were $93.2 million.  In the third quarter of 2024, revenues were $130.2 million (including $31.9 million in revenue from first half of 2024 pre-orders).  GAAP and a *non-GAAP gross margin for the third quarter was 78%, compared to a gross margin of 82% for the third quarter of 2024. GAAP operating margin for the third quarter of 2025 was 22%, compared to 37% in the third quarter of 2024. *Non-GAAP operating margin for the third quarter of 2025 was 25%, compared to 40% for the third quarter of 2024. GAAP operating margin for the nine months ended September 30, 2025, was 22% compared to 29% for the same period in 2024. *Non-GAAP operating margin for the nine months ended September 30, 2025, was 26% compared to 33% for the same period in 2024. The decline in operating margins across both the quarterly and year-to-date periods primarily reflects lower sales in the U.S., which is the company's most profitable region. InMode reported GAAP net income of $21.9 million, or $0.34 per diluted share, in the third quarter of 2025, compared to $51.0 million, or $0.65 per diluted share, in the third quarter of 2024. On a *non-GAAP basis, InMode reported net income of $24.5 million, or $0.38 per diluted share, in the third quarter of 2025, compared to $55.0 million, or $0.70 per diluted share, in the third quarter of 2024. As of September 30, 2025, InMode had cash and cash equivalents, marketable securities and short-term bank deposits of $532.3 million. 2025 Financial Outlook Management provided an outlook for the full year of 2025 ending December 31, 2025. Based on our current estimates, management expects: Revenues remain the same as in previous guidance between $365 million to $375 million *Non-GAAP gross margin remains the same as in previous guidance between 78% and 80% *Non-GAAP income from operations remains the same as in previous guidance to be between $93 million and $98 million *Non-GAAP earnings per diluted share remain the same as in previous guidance between $1.55 to $1.59 This outlook is not a guarantee of future performance, and stockholders should not rely on such forward-looking statements. See "Forward-Looking Statements" for additional information. *Please refer to "Use of Non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A reconciliation between U.S. GAAP and non-GAAP Statement of Income is provided following the financial statements that are included in this release. Non-GAAP results exclude share-based compensation and related tax adjustments. The Current Situation in Israel Regarding the current situation in Israel, on October 10, 2025, a new cease-fire agreement between Hamas and Israel began, and the hostilities have formally paused after two years of conflicts. The scope and severity of ongoing conflicts in Gaza, Northern Israel, Lebanon, Iran, and the broader region are unpredictable and could escalate any time. To date, our operations have not been materially affected. We continue to monitor political and military developments closely and examine the consequences for our operations and assets.  Use of Non-GAAP Financial Measures In addition to InMode's operating results presented in accordance with GAAP, this release contains certain non-GAAP financial measures including non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating margin. Because these measures are used in InMode's internal analysis of financial and operating performance, management believes they provide investors with greater transparency of its view of InMode's economic performance. Management also believes the presentation of these measures, when analyzed in conjunction with InMode's GAAP operating results, allows investors to more effectively evaluate and compare InMode's performance to that of its peers, although InMode's presentation of its non-GAAP measures may not be strictly comparable to the similarly titled measures of other companies. Schedules reconciling each of these non-GAAP financial measures are provided as a supplement to this release. Conference Call Information Mr. Moshe Mizrahy, Chief Executive Officer, Dr. Michael Kreindel, Co-Founder and Chief Technology Officer, Mr. Yair Malca, Chief Financial Officer will host a conference call today, November 5, 2025, at 8:30 a.m. Eastern Time to discuss the third quarter 2025 financial results. The Company encourages participants to pre-register for the conference call using the following link:  https://dpregister.com/sreg/10202681/ffd9babcf8. Callers will receive a unique dial-in number upon registration, which enables immediate access to the call. Participants may pre-register at any time, including up to and after the call start time. For callers who opt out of pre-registration, please dial one of the following teleconferencing numbers. Please begin by placing your call 10 minutes before the conference call commences. If you are unable to connect using the toll-free number, please try the international dial-in number. U.S. Toll-Free Dial-in Number: 1-833-316-0562Israel Toll- Free Dial-in Number: 1-80-921-2373International Dial-in Number: 1-412-317-5736Webcast URL:https://event.choruscall.com/mediaframe/webcast.html?webcastid=JfIdKlTZAt:8:30 a.m. Eastern Time5:30 a.m. Pacific Time The conference call will also be webcast live from a link on InMode's website at https://inmodeinvestors.com/events-presentations/. A replay of the conference call will be available from November 5, 2025, at 12 p.m. Eastern Time to November 19, 2025, at 11:59 p.m. Eastern Time. To access the replay, please dial one of the following numbers:  Replay Dial-in U.S TOLL-FREE: 1-877-344-7529Replay Dial-in Canada TOLL-FREE: 1-855-669-9658Replay Dial-in TOLL/INTERNATIONAL: 1-412-317-0088Replay Pin Number: 2676014 To access the replay using an international dial-in number, please select the link below: https://services.choruscall.com/ccforms/replay.html A replay of the conference call will also be available for 90 days on InMode's website at https://inmodeinvestors.com/events-presentations/. About InMode InMode is a leading global provider of innovative medical technologies. InMode develops, manufactures, and markets devices harnessing novel radio frequency ("RF") technology. InMode strives to enable new emerging surgical procedures as well as improve existing treatments. InMode has leveraged its medically accepted minimally invasive RF technologies to offer a comprehensive line of products across several categories for plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology. For more information about InMode, please visit www.inmodemd.com. Forward-Looking Statements The information in this press release includes forward-looking statements within the meaning of the federal securities laws. These statements generally relate to future events or InMode's future financial or operating performance, including the 2025 revenue projection described above. Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. In some cases, you can identify these statements because they contain words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will," "would" and similar expressions that concern our expectations, strategic plans or intentions. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Consequently, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in InMode's Annual Report on Form 20-F filed with the Securities and Exchange Commission on February 4, 2025, and our future public filings. InMode undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which pertain only as of the date of this press release. Company Contact:Yair MalcaChief Financial OfficerPhone: (949) 305-0108Email: [email protected]  Investor Relations Contact: Miri SegalMS-IR LLCEmail: [email protected]  INMODE LTD. CONDENSED CONSOLIDATED STATEMENTS OF INCOME(U.S. dollars in thousands, except for per share data)(Unaudited) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 REVENUES 93,165 130,232 266,641 296,965 COST OF REVENUES 20,856 24,055 56,971 57,536 GROSS PROFIT 72,309 106,177 209,670 239,429 OPERATING EXPENSES: Research and development 3,543 3,254 9,810 10,470 Sales and marketing 44,970 51,863 132,171 136,713 General and administrative 2,899 2,799 8,293 7,579 TOTAL OPERATING EXPENSES 51,412 57,916 150,274 154,762 OPERATIONS INCOME 20,897 48,261 59,396 84,667 Finance income, net 4,721 9,918 19,642 26,592 INCOME BEFORE INCOME TAXES 25,618 58,179 79,038 111,259 INCOME TAXES 3,755 7,189 12,232 12,755 NET INCOME 21,863 50,990 66,806 98,504 EARNINGS PER SHARE: Basic 0.35 0.66 1.03 1.20 Diluted 0.34 0.65 1.02 1.19 WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF EARNINGS PER SHARE (in thousands) Basic 63,291 77,022 65,072 81,795 Diluted 63,868 77,908 65,727 83,016 INMODE LTD. CONDENSED CONSOLIDATED BALANCE SHEETS(U.S. dollars in thousands, except for per share data)(Unaudited) September 30, 2025 December 31, 2024 Assets CURRENT ASSETS: Cash and cash equivalents 252,437 155,329 Marketable securities 121,518 267,688 Short-term bank deposits 158,353 173,455 Accounts receivable, net of allowance for credit losses 38,095 36,335 Prepaid expense and other receivables 24,485 22,097 Inventories 71,403 59,548      TOTAL CURRENT ASSETS 666,291 714,452     NON-CURRENT ASSETS: Accounts receivable, net of allowance for credit losses 2,350 3,176 Deferred income tax asset 54,104 56,285 Operating lease right-of-use assets 8,922 8,732 Property and equipment, net 2,238 2,322 Other investments 700 700 TOTAL NON-CURRENT ASSETS 68,314 71,215 TOTAL ASSETS 734,605 785,667 Liabilities and shareholders' equity CURRENT LIABILITIES: Accounts payable 16,723 13,782 Contract liabilities 15,099 16,755 Other liabilities 36,508 39,314 TOTAL CURRENT LIABILITIES 68,330 69,851     NON-CURRENT LIABILITIES: Contract liabilities 3,126 3,336 Other liabilities 4,171 3,356 Operating lease liabilities 5,593 5,311 TOTAL NON-CURRENT LIABILITIES 12,890 12,003 TOTAL LIABILITIES 81,220 81,854 TOTAL SHAREHOLDERS' EQUITY 653,385 703,813 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 734,605 785,667 INMODE LTD. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(U.S. dollars in thousands, except for per share data)(Unaudited) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income 21,863 50,990 66,806 98,504 Adjustments required to reconcile net income to net cash provided by operating activities: Depreciation and amortization 156 138 521 480 Share-based compensation expenses 2,696 3,981 8,632 13,122 Change in allowance for credit losses of trade receivable 106 130 159 414 Loss on marketable securities, net 11 29 14 170 Finance expenses (income), net 3,147 3,863 1,260 (5,934) Deferred income taxes 602 35 2,064 (58) Changes in operating assets and liabilities: Decrease (increase) in accounts receivable (2,353) (2,570) (1,094) 1,924 Increase in other receivables (147) (860) (2,403) (7,577) Increase in inventories (3,293) (5,657) (11,855) (13,189) Increase (decrease) in accounts payable (759) (1,235) 2,941 347 Increase (decrease) in other liabilities 564 11,722 (2,596) 6,160 Increase (decrease) in contract liabilities (current and non-current) 1,874 (26,517) (1,866) 5,859 Net cash provided by operating activities 24,467 34,049 62,583 100,222 CASH FLOWS FROM INVESTING ACTIVITIES: Investment in short-term deposits (153,904) (78,390) (178,904) (164,687) Proceeds from short-term deposits 103,390 138,140 189,687 151,640 Purchase of fixed assets (134) (77) (438) (435) Purchase of marketable securities - (90,820) (20,877) (276,513) Proceeds from sale of marketable securities 14,211 22,233 17,214 69,608 Proceeds from maturity of marketable securities 48,105 122,969 152,127 304,777 Net cash provided by investing activities 11,668 114,055 158,809 84,390 CASH FLOWS FROM FINANCING ACTIVITIES:  Repurchase of ordinary shares - (76,556) (127,444) (165,536)     Exercise of options 249 565 1,248 1,194 Net cash provided by (used in) financing activities 249 (75,991) (126,196) (164,342) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (184) 728 1,912 157 NET INCREASE IN CASH AND CASH EQUIVALENTS 36,200 72,841 97,108 20,427 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 216,237 91,997 155,329 144,411 CASH AND CASH EQUIVALENTS AT END OF PERIOD 252,437 164,838 252,437 164,838 INMODE LTD. CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS(U.S. dollars in thousands, except for per share data)(Unaudited)  Three months ended September 30,  Nine months ended September 30, 2025  2024 2025  2024  Revenues by Category:  Capital Equipment revenues - United States 45,203 49 % 85,734 66 % 1,15,398 44 % 1,51,392 51 % Capital Equipment revenues - International 28,063 30 % 28,662 22 % 91,329 34 % 86,191 29 %  Total Capital Equipment revenues   73,266  79 %  1,14,396  88 %  2,06,727  78 %  2,37,583  80 % Consumables and service revenues 19,899 21 % 15,836 12 % 59,914 22 % 59,382 20 %  Total Revenue   93,165  100 %  1,30,232  100 %  2,66,641  100 %  2,96,965  100 % Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 % % % % United States International Total UnitedStates International Total United States International Total United States International Total Revenues by Technology: Minimal-Invasive 75 76 75 95 77 90 79 79 80 90 82 88 Hands-Free 2 1 2 4 3 4 3 2 2 7 3 5 Non-Invasive 23 23 23 1 20 6 18 19 18 3 15 7 100 100 100 100 100 100 100 100 100 100 100 100 INMODE LTD. RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OFINCOME TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF INCOME (U.S. dollars in thousands, except for per share data) (Unaudited) Three months ended September 30, 2025 Three months ended September 30, 2024 GAAP Share Based Compensation Non-GAAP GAAP Share Based Compensation Non-GAAP REVENUES 93,165 - 93,165 130,232 - 130,232 COST OF REVENUES 20,856 (343) 20,513 24,055 (481) 23,574 GROSS PROFIT 72,309 343 72,652 106,177 481 106,658 OPERATING EXPENSES: Research and development 3,543 (274) 3,269 3,254 (890) 2,364 Sales and marketing 44,970 (1,804) 43,166 51,863 (2,300) 49,563 General and administrative 2,899 (275) 2,624 2,799 (310) 2,489 TOTAL OPERATING EXPENSES 51,412 (2,353) 49,059 57,916 (3,500) 54,416 OPERATIONS INCOME 20,897 2,696 23,593 48,261 3,981 52,242 Finance income, net 4,721 - 4,721 9,918 - 9,918 INCOME BEFORE INCOME TAXES 25,618 2,696 28,314 58,179 3,981 62,160 INCOME TAXES 3,755 27 3,782 7,189 - 7,189 NET INCOME 21,863 2,669 24,532 50,990 3,981 54,971 EARNINGS PER SHARE: Basic 0.35 0.39 0.66 0.71 Diluted 0.34 0.38 0.65 0.70 WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF EARNINGS PER SHARE (in thousands) Basic 63,291 63,291 77,022 77,022 Diluted 63,868 64,531 77,908 78,548 Nine months ended September 30, 2025 Nine months ended September 30, 2024 GAAP Share Based Compensation Non-GAAP GAAP Share Based Compensation Non-GAAP REVENUES 266,641 - 266,641 296,965 - 296,965 COST OF REVENUES 56,971 (987) 55,984 57,536 (1,361) 56,175 GROSS PROFIT 209,670 987 210,657 239,429 1,361 240,790 OPERATING EXPENSES: Research and development 9,810 (783) 9,027 10,470 (1,877) 8,593 Sales and marketing 132,171 (6,096) 126,075 136,713 (9,007) 127,706 General and administrative 8,293 (766) 7,527 7,579 (877) 6,702 TOTAL OPERATING EXPENSES 150,274 (7,645) 142,629 154,762 (11,761) 143,001 OPERATIONS INCOME 59,396 8,632 68,028 84,667 13,122 97,789 Finance income, net 19,642 - 19,642 26,592 - 26,592 INCOME BEFORE INCOME TAXES 79,038 8,632 87,670 111,259 13,122 124,381 INCOME TAXES 12,232 (628) 11,604 12,755 - 12,755 NET INCOME 66,806 9,260 76,066 98,504 13,122 111,626 EARNINGS PER SHARE: Basic 1.03 1.17 1.20 1.36 Diluted 1.02 1.15 1.19 1.34 WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF EARNINGS PER SHARE (in thousands) Basic 65,072 65,072 81,795 81,795 Diluted 65,727 66,199 83,016 83,536 Logo: https://mma.prnewswire.com/media/1064477/InMode_Logo.jpg SOURCE InMode Ltd.

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