Inspire Medical Systems Inc logo

Inspire Medical Systems Inc(INSP)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL RECENCY
1-STAR RATING
Consider higher Upturn Star rating
BUY for 58 days
PROFIT SINCE LAST BUY
+40.77% ▲
LAST CLOSE
$70.5
09/25/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Advisory & Investor View for INSP

09/25/2026: INSP (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Inspire Medical Systems is a high-growth medical technology company that provides a unique implantable neurostimulation therapy for patients suffering from obstructive sleep apnea. The company has a leading position in the emerging segment of surgical sleep treatments, driven by strong clinical data and a growing network of trained physicians. Its main growth story centers on replacing non-adherent CPAP usage with a permanent device solution. However, the company faces risks related to high product costs, reimbursement uncertainty, and competition from entrenched CPAP providers. The stock is best suited for growth-oriented investors who are comfortable with the inherent volatility of medical device market adoption.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorStrong fitThe company is in an early-to-mid stage growth phase with high top-line expansion potential.
Momentum investorStrong fit while signal remains positiveThe stock often reacts strongly to growth milestones and expansion news, making it a potential target for momentum strategies.
Value investorWeak fitThe stock typically trades at premium valuation multiples consistent with high-growth companies.
Dividend investorWeak fitThe company does not pay dividends and focuses entirely on reinvesting for growth.
Low-risk investorWeak fitThe stock exhibits significant volatility associated with its growth-stage and regulatory-sensitive business model.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityHighHigh-growth medtech stocks often experience sharp price swings based on earnings reports and market sentiment.
Valuation riskMedium / highInvestors pay high multiples, leaving little room for error if growth slows down.
Competition risk (CPAP/Technology)MediumEstablished players like ResMed maintain a dominant share of the OSA market through lower-cost CPAP solutions.
Business qualityMedium / highWhile the product is unique, the business model relies heavily on physician training and healthcare reimbursement infrastructure.
Dividend incomeLow / noneThere is no income component to the total return profile.
Execution riskMediumScaling the number of active centers and maintaining patient throughput requires significant operational execution.

Price Behavior

Steep Decline
PRICE PATH

Steep Decline

The stock price has dropped sharply with strong downward pressure.

Choppy
PRICE STABILITY

Choppy

The stock has experienced frequent reversals and pronounced short-term price swings.

Analysis of Past Performance

Type Stock
Historic Profit 2.31%
Avg. Invested days 36
Today’s Advisory Consider higher Upturn Star rating
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 4.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/25/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
INSP receives a 3-star rating, supported by solid company fundamentals, and solid analyst coverage. The rating is constrained by weak price momentum, and limited analyst upside.

Company Fundamentals

★★★★★
INSP has solid overall fundamentals (4 stars), with solid financial health, solid growth momentum, and solid ownership. In FY2025 versus FY2024, strong earnings growth (+171.8%) and solid cash generation (FCF margin 8.6%) are partially offset by modest insider ownership of 1.18%.

Financial Health Rating

★★★★★
INSP's financial health is supported by solid liquidity, including working-capital and asset support (WC/assets 53.7%). Profitability is moderate (3 stars), which helps explain the 4-star overall score.

Growth Momentum Score

★★★★★
Earnings growth is INSP's strongest growth driver at +171.8% FY2025 versus FY2024 (strong, 5 stars). By comparison, revenue growth (+13.6%, solid) is also solid, while free-cash-flow growth (-13.9%, negative) holds the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 130.3% and approximately 80.5% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 1.18% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

BlackRock Inc 12.28%
Deerfield Management Co 9.35%
Wellington Management Company LLP 8.24%
Soleus Capital Management, L.P. 6.68%
Vanguard Portfolio Management, LLC 5.66%

Unit Economics (Per $1K Revenue)

★★★★★
INSP generates approximately $854 of gross profit, $56 of operating income, and $86 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

★★★★★
Effective Tax Rate: -121.35% (Tax Credit)

Quantitative Style Profile

★★★★★
INSP has a liquid, relatively low-volatility profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

Low VolatilitySmall / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 2.04B USD
Price to earnings Ratio 15.56
1Y Target Price 62.8
Price to earnings Ratio 15.56
1Y Target Price 62.8
Volume (30-day avg) 712.4K shares
Beta 0.7
52 Weeks Range 38.91 - 147.03
Updated Date 09/25/2026
52 Weeks Range 38.91 - 147.03
Updated Date 09/25/2026
Dividends yield (FY) -
Basic EPS (TTM) 4.53

How Company Makes Money

Business areaWhat it includesRetail investor read
Inspire Therapy SystemImplantable neurostimulation device kits and related accessories.Revenue comes primarily from selling the hardware components for the Inspire procedure.
GeographyPrimary operations in the United States with growing footprints in international markets.The vast majority of revenue is generated in the US, with international expansion serving as a secondary lever.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE 15.56
Forward PE 59.17
Enterprise Value 1.70B
Price to Sales(TTM) 2.27
Enterprise Value 1.70B
Price to Sales(TTM) 2.27
Enterprise Value to Revenue 1.9
Enterprise Value to EBITDA 19.78
Shares Outstanding 28.91M
Shares Floating 23.28M
Shares Outstanding 28.91M
Shares Floating 23.28M
Percent Insiders 1.18
Percent Institutions 130.3

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Inspire Medical Systems Inc

Exchange NYSE
Headquarters Golden Valley, MN, United States
IPO Launch date 2018-05-03
Founder, Chairman, CEO & President Mr. Timothy P. Herbert
Sector Healthcare
Industry Medical Devices
Full time employees 1333
Full time employees 1333

Inspire Medical Systems, Inc., a medical technology company, focuses on the development and commercialization of minimally invasive solutions for patients with obstructive sleep apnea (OSA) in the United States and internationally. The company offers Inspire system, a neurostimulation technology that provides a safe and effective treatment for patients with moderate to severe OSA. It also develops a novel, closed-loop solution that continuously monitors a patient's breathing and delivers mild hypoglossal nerve stimulation to maintain an open airway. The company was incorporated in 2007 and is headquartered in Golden Valley, Minnesota.