InMode: From Downturn to Stabilization – A Turning Point in the Making

Revenue growth returns for the first time in six quarters as new lasers and a restructured sales force take root; CFO departure adds a transitional note.

INMD · Earnings Call · 2026-05-06

A Return to Growth, However Modest

InMode's Q1 2026 results, reported on May 6, 2026, were not spectacular—revenue of $82 million, up 5% year-over-year—but they carried an outsized symbolism. After a prolonged downturn that began in mid-2023, the company finally posted positive growth, and management was quick to flag an inflection. As CEO Moshe Mizrahy put it in his prepared remarks: “We executed in line with our expectations in Q1 2026. In addition, we are seeing early sign of stabilization, particularly in the U.S.” — Moshe Mizrahy, CEO · 2026-05-06 This language marks a shift from the cautious, almost defensive tone of prior quarters. On the February 2026 call, Moshe had hinted at “very, very soft signs” of improvement, but the company was careful not to call a turn. Now, with actual growth in hand, the narrative has moved from survival to stabilization. The keyword sign of stabilization captures exactly this transition, and it's backed by concrete operational changes.

Strategic Bets: Lasers, Structure, and International Expansion

The stabilization is being engineered, not just hoped for. InMode has been aggressively broadening its portfolio beyond its core RF-based platforms. The Pico laser launched in February and the CO2 laser (Solaria) are already contributing meaningfully. These are not just fill-ins; they are strategic responses to competitive pressure. As Moshe explained in the Q&A, “The energy-based device companies are competing on the same marginal dollar that people has for aesthetic... GLP-1 took a lot of money from this industry, a lot of money.” — Moshe Mizrahy, CEO · 2026-05-06

The energy-based device companies are competing on the same marginal dollar that people has for aesthetic... GLP-1 took a lot of money from this industry, a lot of money.
Moshe Mizrahy, CEO · 2026-05-06

The company is also addressing the structural inefficiencies that compounded the downturn. The North American sales force has been unified under a single leadership team, replacing the East/West split, and the Envision (ophthalmology) team now operates independently. Internationally, InMode has established a subsidiary in Argentina and is reviving its dormant Guangzhou entity to attack the Chinese spa and aesthetics market. The laser push is deliberate, even at the cost of gross margins, which slipped to 75% from 78% a year ago. Moshe noted the strategic rationale: “The Erbium laser is still under development. And we hope to finalize the development of the Erbium, which is developed in Israel and get into the FDA clearance sometime in the next month or 2.” — Moshe Mizrahy, CEO · 2026-05-06 This continued investment in CO2 laser and other platforms should be seen as building a moat against competitors who are snapping up injectables and other adjunct technologies.

Management Transition and Capital Flexibility

A significant overhang is the departure of CFO Yair Malca, who is stepping down after nine years. He will stay on as a consultant for six months, but the transition introduces leadership uncertainty at a delicate moment. On the other hand, the company remains financially strong, with over $537 million in cash and securities. It has been aggressively repurchasing shares—$52.7 million year-to-date—and has returned $600 million to shareholders over the past six years. Yet Moshe candidly admitted that buybacks have not supported the stock, and the board is now considering a broader toolkit: “We are allowed to do 10% of the outstanding shares every year without paying dividend tax, and we're doing it year-over-year.” — Moshe Mizrahy, CEO · 2026-05-06 He went further in the Q&A, suggesting that M&A and dividends are on the table, though private-company valuations have been a hurdle. The prior calls gave ample warning that the downturn was not over. In February 2026, Moshe had said, “We see, first of all, the interest rates started to come down. That is a good sign for us.” — Moshe Mizrahy, Chief Executive Officer · 2026-02-10 But even then, he cautioned against calling a turn. The fact that Q1 2026 delivered growth suggests that the interest-rate tailwind is finally starting to flow through. In November 2025, he had been more pessimistic: “We don't see the end -- the light at the end of the tunnel as regard to financing capital equipment, especially medical equipment to clinics.” — Moshe Mizrahy, Chief Executive Officer · 2025-11-05 The contrast between those statements and today's tone is stark. The company's focus on energy based device market share, while watching injectables and GLP-1 siphon discretionary spending, is a key theme. InMode is betting that by offering a comprehensive suite of lasers and RF devices, it can become the one-stop shop that physicians increasingly demand. The early results are promising, but the sustainability of this stabilization remains the crux. Management's guidance for 2026—$365–375 million in revenue and $1.33–1.38 non-GAAP EPS—assumes the trajectory holds. With the CFO transition underway and the macro environment still fragile, investors will be watching the next few quarters closely to see if the “early sign” becomes a durable trend.