How Softer Q3 Results and Leadership Changes at InMode (INMD) Have Changed Its Investment Story

• InMode Ltd. recently reported third quarter 2025 results showing sales of US$93.17 million and net income of US$21.86 million, both lower than the prior year period.
• Alongside these results, InMode appointed Michael Dennison, an executive with extensive industry and company experience, as President of North America, signaling continued investment in leadership despite softer financial performance.
• With quarterly revenue and net income both declining, we'll evaluate how these financial results affect InMode's investment narrative and future outlook.

The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.

InMode Investment Narrative Recap

To be a shareholder in InMode, you need to believe in the company’s ability to reignite demand for minimally invasive aesthetic devices despite current macroeconomic challenges. The recent third quarter results marked a decline in both sales and net income, but this does not appear to materially shift the immediate focus: winning back procedure growth and accelerating international expansion remain the central catalyst, while the biggest risk continues to be prolonged softness in U.S. discretionary healthcare spending. Short-term profitability is likely to be closely watched amid these headwinds.

The appointment of Michael Dennison as President of North America stands out from recent announcements given the region’s significance to overall revenues. Dennison’s deep experience at InMode and industry-wide track record could support efforts to reenergize U.S. sales, directly tying into the catalyst of returning to growth and stabilizing margins during a period of earnings pressure. This change in leadership is particularly relevant as the company looks to navigate evolving market dynamics and reshape execution priorities in a softer market.

However, even with new leadership, investors should be aware that ongoing weakness in consumer discretionary spending could...

Read the full narrative on InMode (it's free!)

InMode's narrative projects $409.0 million revenue and $94.2 million earnings by 2028. This requires a 0.6% yearly revenue decline and a $84.5 million decrease in earnings from $178.7 million today.

Uncover how InMode's forecasts yield a $16.25 fair value, a 13% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have set fair value estimates for InMode ranging from US$12.96 to US$23.14, reflecting a broad spectrum across just 4 viewpoints. Against this backdrop, recent revenue and earnings declines highlight that macroeconomic and consumer demand trends remain critical for future performance, so consider multiple perspectives before making decisions.

Explore 4 other fair value estimates on InMode - why the stock might be worth as much as 60% more than the current price!

Build Your Own InMode Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your InMode research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free InMode research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate InMode's overall financial health at a glance.

Seeking Other Investments?

Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay:

• These 12 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.
• Uncover the next big thing with financially sound penny stocks that balance risk and reward.
• AI is about to change healthcare. These 32 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.