InMode Q4 2025 InMode Ltd Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 InMode Ltd Earnings Call
Speaker #2: InMode's fourth quarter and full year 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing 0.
Speaker #2: After today's presentation, there will be an opportunity to ask questions. You may press star then one on your phone. To withdraw your question, on a touch-tone phone please press star then two.
Speaker #2: Please note this event is being recorded. I would now like to turn the conference over to Miri Segal. CEO of MSIR, please go ahead.
Miri Segal: Thank you, operator, and everyone for joining us today. Welcome to InMode's conference call. Before we begin, I would like to remind our listeners that certain information provided on this call may contain forward-looking statements.
Speaker #2: Thank you, operator, and everyone, for joining us today. Welcome to InMode's conference call. We remind our listeners that certain calls may contain forward-looking information provided on this statement.
Speaker #2: And the safe harbor. Before we begin, I would like to remind you that today's earnings release also pertains to this call. If you have not received a copy of the release, please visit the investor relations section of the company's website.
Miri Segal: The Safe Harbor statement outlined in today's earnings release also pertains to this call. If you have not received a copy of the release, please visit the investor relations section of the company's website. Changes in business, competitive, technological, regulatory, and other factors could cause actual results to differ materially from those expressed by the forward-looking statements made today. Our historical results are not necessarily indicative of future performance. As such, we can give no assurance as to the accuracy of our forward-looking statements and assume no obligation to update them except as required by law. With that, I'd like to turn the call over to Moshe Mizrahy, InMode CEO. Moshe, please go ahead. Thank you, Miri, and to everyone for joining us. With me today are Dr. Michael Kreindel, our co-founder and Chief Technology Officer; Yair Malca, our Chief Financial Officer; and Rafael Lickerman, our VP Finance.
Miri Segal: The Safe Harbor statement outlined in today's earnings release also pertains to this call. If you have not received a copy of the release, please visit the investor relations section of the company's website. Changes in business, competitive, technological, regulatory, and other factors could cause actual results to differ materially from those expressed by the forward-looking statements made today. Our historical results are not necessarily indicative of future performance. As such, we can give no assurance as to the accuracy of our forward-looking statements and assume no obligation to update them except as required by law. With that, I'd like to turn the call over to Moshe Mizrahy, InMode CEO. Moshe, please go ahead.
Speaker #2: Changes in business competitive technological regulatory and other factors could cause materially from those expressed by the forward-looking statements made actual results to differ results are not necessarily indicative of future statement outlined in assurance as to the accuracy performance.
Speaker #2: assume no obligation to update of our forward-looking statements and them except as required by law. With that, I'd Mizrahy, InMode today. like to turn the call over to Moshe CEO.
Speaker #2: Moshe, please go Our historical ahead.
Moshe Mizrahy: Thank you, Miri, and to everyone for joining us. With me today are Dr. Michael Kreindel, our co-founder and Chief Technology Officer; Yair Malca, our Chief Financial Officer; and Rafael Lickerman, our VP Finance.
Speaker #3: Thank you, joining us. With me
Speaker #3: Kreindl, our co-founder and chief technology chief financial officer, and officer, Yair Malca, our our VP finance. Following our prepared remark, we will be able Rafael Likerman, As such, we can give no to we will be available to answer quarter was slightly better than expected.
Miri Segal: Following our prepared remarks, we will be available to answer your questions. The Q4 was slightly better than expected, even as our industry continued to face ongoing challenges driven by higher interest rates and softer customer demand in the aesthetic space. Despite this headwind, InMode continued to benefit from its strong position and from the proven long-lasting clinical outcomes, patient experience when using our technology and platforms. These strengths continue to position us as the leader in the market of minimally invasive aesthetic treatments, reflected in both superior patient outcomes and financial performance that remain among the best in the industry. While total revenue declined approximately 6% year-over-year, revenue from consumables and services increased slightly compared to last year. We believe this may represent early signs of stabilization in patient activity and usage levels across our installed base.
Moshe Mizrahy: Following our prepared remarks, we will be available to answer your questions. The Q4 was slightly better than expected, even as our industry continued to face ongoing challenges driven by higher interest rates and softer customer demand in the aesthetic space. Despite this headwind, InMode continued to benefit from its strong position and from the proven long-lasting clinical outcomes, patient experience when using our technology and platforms. These strengths continue to position us as the leader in the market of minimally invasive aesthetic treatments, reflected in both superior patient outcomes and financial performance that remain among the best in the industry. While total revenue declined approximately 6% year-over-year, revenue from consumables and services increased slightly compared to last year. We believe this may represent early signs of stabilization in patient activity and usage levels across our installed base.
Speaker #3: Even as our industry continued to face ongoing challenges driven by higher demand, in the aesthetic space, despite interest rate and software customer this hand headwind, your question.
Speaker #3: InMode continued to benefit and from the proven long-lasting clinical outcome patient experience when from its strong position using our technology and platforms. This strength continued to position us as the leader in the market of minimal invasive aesthetic treatment, reflected The fourth in both superior patient outcome and financial performance that remain among the best in the industry.
Speaker #3: While local, while total revenue declined approximately 6% year over year, revenue from consumables slightly compared to last, represent early sign year. We believe this may patient activity and services increased of stabilization in our install base.
Speaker #3: We view 2026 as a stabilization year for the business following a prolonged period of softness. In 2025, we took steps in our North American business. We appointed Michael Denningson, of industry, as president of North America in October and unified our operation into a decisive usage level across a single organization spanning from Eastern Canada.
Miri Segal: We view 2026 as a stabilization year for the business following a prolonged period of industry softness. In 2025, we took decisive steps in our North American business. We appointed Michael Dennison as president of North America in October and unified our operation into a single organization spanning from Eastern US, Western US, and Canada. Given the timing of this leadership change, the impact on Q4 results was limited. However, we expect the new structure, leadership, and commercial initiative to begin delivering tangible results in 2026. During 2025, we also laid the foundation for more differentiated and focused commercial organization. Our sales force is now segmented across aesthetic and wellness, with a dedicated team aligned to specific platforms. For Envision, we have established a specialized sales team with deep experience in the category, which we believe will drive increased penetration and improve sales productivity.
Moshe Mizrahy: We view 2026 as a stabilization year for the business following a prolonged period of industry softness. In 2025, we took decisive steps in our North American business. We appointed Michael Dennison as president of North America in October and unified our operation into a single organization spanning from Eastern US, Western US, and Canada. Given the timing of this leadership change, the impact on Q4 results was limited. However, we expect the new structure, leadership, and commercial initiative to begin delivering tangible results in 2026. During 2025, we also laid the foundation for more differentiated and focused commercial organization. Our sales force is now segmented across aesthetic and wellness, with a dedicated team aligned to specific platforms. For Envision, we have established a specialized sales team with deep experience in the category, which we believe will drive increased penetration and improve sales productivity.
Speaker #3: Giving the timing of this leadership change the impact on fourth quarter result was limited. However, we expect the new structure leadership and commercial initiative to begin delivering 2026.
Speaker #3: During 2025, we grew in the US, Western US, and also laid the foundation for more differentiated and focused commercial tangible results in the organization. Our sales force is now segmented across aesthetic and wellness.
Speaker #3: With specific platforms, foreign vision, we have established a specialized sales-dedicated team aligned to team with a deep, which we believe will drive increased penetration and improve sales productivity.
Speaker #3: Product innovation remain a key pillar in our strategy. In 2025, we launch our CO2 laser platforms which is performing well experience in the category and expand our portfolio.
Miri Segal: Product innovation remains a key pillar in our strategy. In 2025, we launched our CO2 laser platforms, which is performing well, and expand our portfolio. By enabling combined treatment, it further reinforces our position as a one-stop solution across core procedures. Looking ahead into 2026, we plan to keep innovating and introduce two new platforms: a Korean-made Pico laser device and a device that combines new Morpheus technology with Erbium YAG laser. These upcoming launches are an important component of our long-term strategy. We are committed to innovation, and as part of our strategy, we launch two new platforms of all technologies per year. We see meaningful interest across our existing customer base and in new ones, and we believe this product will improve our overall value proposition. From a product mix perspective, most of our offerings include Morpheus8 or minimally invasive components.
Moshe Mizrahy: Product innovation remains a key pillar in our strategy. In 2025, we launched our CO2 laser platforms, which is performing well, and expand our portfolio. By enabling combined treatment, it further reinforces our position as a one-stop solution across core procedures. Looking ahead into 2026, we plan to keep innovating and introduce two new platforms: a Korean-made Pico laser device and a device that combines new Morpheus technology with Erbium YAG laser. These upcoming launches are an important component of our long-term strategy. We are committed to innovation, and as part of our strategy, we launch two new platforms of all technologies per year. We see meaningful interest across our existing customer base and in new ones, and we believe this product will improve our overall value proposition. From a product mix perspective, most of our offerings include Morpheus8 or minimally invasive components.
Speaker #3: By enabling combined treatment, it further reinforce our position as a one-stop solution across core procedures. Looking ahead into 2026, we plan to keep platforms.
Speaker #3: A Korean-made PICO laser device and a device innovating and introduce two new that combine new Morpheus technology with erbium YAG laser. This upcoming launches are an important component of our long-term committed to innovation and as part of our strategy, we year.
Speaker #3: We see meaningful interest across our existing ones, and we believe this customer base and a new product will, of all technologies, help improve our overall value proposition.
Speaker #3: From a strategy. We are of our offering include Morpheus 8 or minimal invasive component. launch two new platforms This reflects the depth of our portfolio and the comprehensive nature of provide.
Miri Segal: This reflects the depth of our portfolio and the comprehensive nature of the solution we provide. From a financial standpoint, we currently expect total revenue in 2026 to be broadly in line with 2025, and we anticipate continuing evolution in our product mix. More broadly, the industry has not yet fully recovered from the global economic slowdown. Demand in North America remains below historical levels. At the same time, we are encouraged by early signs of stabilization in the US and gradual improvement in Europe, which we believe could improve incremental support to our incremental support to our performance going forward. Overall, we are focused on disciplined execution of our product roadmap, continued refinement of our sales team, and maintaining our leadership innovative position in the aesthetic industry. Now, I would like to turn the call over to Yair, our chief financial officer. Yair? Thanks, Moshe, and hello everyone.
Moshe Mizrahy: This reflects the depth of our portfolio and the comprehensive nature of the solution we provide. From a financial standpoint, we currently expect total revenue in 2026 to be broadly in line with 2025, and we anticipate continuing evolution in our product mix. More broadly, the industry has not yet fully recovered from the global economic slowdown. Demand in North America remains below historical levels. At the same time, we are encouraged by early signs of stabilization in the US and gradual improvement in Europe, which we believe could improve incremental support to our incremental support to our performance going forward. Overall, we are focused on disciplined execution of our product roadmap, continued refinement of our sales team, and maintaining our leadership innovative position in the aesthetic industry. Now, I would like to turn the call over to Yair, our chief financial officer. Yair? Thanks, Moshe, and hello everyone.
Speaker #3: From a financial standpoint and from a current product mix perspective, most of 2026 will be broadly in line with 2025. And we anticipate continuing evolution in our product mix.
Speaker #3: More expect total revenue in not yet fully recovered from the global economic slowdown. broadly, the industry has Demand in North America remain below historical levels.
Speaker #3: At the same time, we are encouraged by US and gradual early sign of stabilization in the improvement in Europe. Which we believe could forward.
Speaker #3: Overall, to our performance going on disciplined execution of our product we are focused roadmap, continue refinement of our sales team, and maintaining our incremental support our leadership innovative position in the aesthetic industry.
Speaker #3: Now, I would like to turn the call over Yair. to Yair, our chief financial
Speaker #4: Thanks, Moshe. And hello, everyone.
Miri Segal: Thank you for joining us. Before I begin to review our financial results, it is important to note that when comparing our year-over-year performance, the fourth quarter of 2024 included a one-time tax benefit. Therefore, we believe non-GAAP net income offers the most meaningful basis for comparing year-over-year results. Starting with total revenues, InMode generated $103.9 million in the fourth quarter of 2025, up from $97.9 million in the same quarter last year. For full year 2025, revenue totaled $370.5 million, a 6% decrease compared to 2024. Moving to our international operations, the fourth quarter was a record revenue quarter for Europe, reflecting continued momentum across the region. Sales outside the US totaled $48.5 million in Q4, representing 47% of total sales and an increase of 38% compared to Q4 of last year, driven primarily by Europe.
Yair Malca: Thank you for joining us. Before I begin to review our financial results, it is important to note that when comparing our year-over-year performance, the fourth quarter of 2024 included a one-time tax benefit. Therefore, we believe non-GAAP net income offers the most meaningful basis for comparing year-over-year results. Starting with total revenues, InMode generated $103.9 million in the fourth quarter of 2025, up from $97.9 million in the same quarter last year. For full year 2025, revenue totaled $370.5 million, a 6% decrease compared to 2024. Moving to our international operations, the fourth quarter was a record revenue quarter for Europe, reflecting continued momentum across the region. Sales outside the US totaled $48.5 million in Q4, representing 47% of total sales and an increase of 38% compared to Q4 of last year, driven primarily by Europe.
Speaker #4: note that when comparing our Before I begin to review our year-over-year performance, the included a one-time tax benefit. Therefore, we Thank you for joining for comparing year-over-year results.
Speaker #4: Starting with total revenues, InMode generated $103.9 officer. million in the fourth quarter of believe NANGAP net income 2025, up from the same quarter last year.
Speaker #4: For full year 2025, revenue totaled $97.9 million in $370.5 million, a 6% decrease compared to 2024. Moving to our international revenue quarter for Europe, reflecting continued momentum across the region.
Speaker #4: Sales outside the US totaled $48.5 operations, the fourth quarter was a record million in Q4, representing 47% of of 38% compared to Q4 of last year.
Speaker #4: Driven primarily by total sales and an increase 2025, sales outside the US Europe. accounted for For the full year $171.8 million, or 46% of total sales, representing a 15% increase compared to 2024.
Miri Segal: For the full year 2025, sales outside the US accounted for $171.8 million, or 46% of total sales, representing a 15% increase compared to 2024. Gross margins in the fourth quarter of 2025 were 78% on a non-GAAP basis compared to 79% in the fourth quarter of 2024. Non-GAAP gross margins were 79% for both the fourth quarter and the full year of 2025. In Q4 and in full year of 2025, our minimally invasive technology platforms accounted for 76% and 78%, respectively, of total revenues. For the full year of 2025, consumables and service accounted for 22% of revenue, an increase from 20% in 2024. To support our operations and growth, we currently have a sales team of more than 285 direct reps and 73 distributors worldwide.
Yair Malca: For the full year 2025, sales outside the US accounted for $171.8 million, or 46% of total sales, representing a 15% increase compared to 2024. Gross margins in the fourth quarter of 2025 were 78% on a non-GAAP basis compared to 79% in the fourth quarter of 2024. Non-GAAP gross margins were 79% for both the fourth quarter and the full year of 2025. In Q4 and in full year of 2025, our minimally invasive technology platforms accounted for 76% and 78%, respectively, of total revenues. For the full year of 2025, consumables and service accounted for 22% of revenue, an increase from 20% in 2024. To support our operations and growth, we currently have a sales team of more than 285 direct reps and 73 distributors worldwide.
Speaker #4: margins in the fourth quarter of 78% on a gap basis, compared Gross 2025 were to 79% in the fourth quarter of 2024. NANGAP gross margins were 79% for both the fourth quarter and the 2025.
Speaker #4: In Q4 and in the full year of 2025, minimally invasive technology accounted for 78% of revenues. For the full year of 2025, consumables and service accounted for 22% of revenue, an increase from 20% in 2024. Platforms accounted for 76% of total revenue, respectively.
Speaker #4: To support our operations and growth, we currently have a sales team of more than 285 direct reps and 73 distributors worldwide. GAAP operating expenses in the fourth quarter were $55.3 million.
Miri Segal: GAAP operating expenses in the fourth quarter were $55.3 million and $205.6 million for the full year, an 11% and 0.5% increase year-over-year, respectively. Sales and marketing expenses increased slightly to $48.4 million in the fourth quarter compared to $44.7 million in the same period last year. Sales and marketing expenses for the full year of 2025 were $180.6 million compared to $181.4 million for 2024. The year-over-year decrease was primarily driven by lower sales commissions resulting from reduced sales, as well as lower share-based compensation, partially offset by higher salaries and employee-related expenses. Next, we look at share-based compensation, which decreased to $2.5 million in the fourth quarter of 2025 and $11.1 million for the full year of 2025.
Yair Malca: GAAP operating expenses in the fourth quarter were $55.3 million and $205.6 million for the full year, an 11% and 0.5% increase year-over-year, respectively. Sales and marketing expenses increased slightly to $48.4 million in the fourth quarter compared to $44.7 million in the same period last year. Sales and marketing expenses for the full year of 2025 were $180.6 million compared to $181.4 million for 2024. The year-over-year decrease was primarily driven by lower sales commissions resulting from reduced sales, as well as lower share-based compensation, partially offset by higher salaries and employee-related expenses. Next, we look at share-based compensation, which decreased to $2.5 million in the fourth quarter of 2025 and $11.1 million for the full year of 2025.
Speaker #4: And full year and $205.6 million for the increase year-over-year, respectively. Sales and marketing expenses increased slightly to $48.4 year. Sales and marketing expenses for the full year of 2025 were $180.6 million.
Speaker #4: Compared to $181.4 million, for 2024. The year-over-year decrease was primarily driven by lower sales commissions, resulting from reduced sales, as well as million, in the fourth quarter, compared in the same period last partially offset by higher salaries and employee-related expenses.
Speaker #4: Next, we look at share-based compensation. Which to $44.7 million decreased to 2.5 lower share-based compensation, million in the fourth quarter of 2025 and 11.1 million for the full year of 2025.
Speaker #4: On a NANGAP basis, operating expenses were $53.2 million, in the fourth quarter, compared to a total of $46.8 million in the same quarter of 2024, representing a increase.
Miri Segal: On a non-GAAP basis, operating expenses were $53.2 million in the fourth quarter compared to a total of $46.8 million in the same quarter of 2024, representing a 13.5% increase. For 2025, non-GAAP operating expenses were $195.8 million compared to $189.8 million in 2024. GAAP operating margin for Q4 and for 2025 was 25% and 23%, respectively. Non-GAAP operating margin for the fourth quarter of 2025 was 27% compared to 32% for the fourth quarter of 2024. Non-GAAP operating margin for 2025 was 26% compared to 33% in the full year of 2024. This decrease was primarily attributable to higher sales and marketing expenses. GAAP diluted earnings per share for the fourth quarter were $0.42 compared to $1.14 per diluted share in Q4 of 2024, and $1.43 in 2025 compared to $2.25 in 2024.
Yair Malca: On a non-GAAP basis, operating expenses were $53.2 million in the fourth quarter compared to a total of $46.8 million in the same quarter of 2024, representing a 13.5% increase. For 2025, non-GAAP operating expenses were $195.8 million compared to $189.8 million in 2024. GAAP operating margin for Q4 and for 2025 was 25% and 23%, respectively. Non-GAAP operating margin for the fourth quarter of 2025 was 27% compared to 32% for the fourth quarter of 2024. Non-GAAP operating margin for 2025 was 26% compared to 33% in the full year of 2024. This decrease was primarily attributable to higher sales and marketing expenses. GAAP diluted earnings per share for the fourth quarter were $0.42 compared to $1.14 per diluted share in Q4 of 2024, and $1.43 in 2025 compared to $2.25 in 2024.
Speaker #4: For 2025, NANGAP operating expenses were $195.8 million, compared to $189.8 million in 2024. GAP operating margin for Q4 and for 2025 was 25% and 23%, respectively.
Speaker #4: NANGAP operating margin for 2025 was 27%, quarter of 2024. the fourth quarter of NANGAP operating margin for compared to 32% for the fourth 2024.
Speaker #4: This decrease was 33% in the full year of primarily attributable to higher sales and marketing 26%, compared to quarter were 42 cents, compared to $1.14 per diluted share in diluted earnings per share for the fourth expenses.
Speaker #4: And $1.43 Q4 of 2024. in 2025, compared to NANGAP diluted earnings per $2.25 share for this quarter were cents per diluted share in the fourth quarter of 2024, and in 2024.
Miri Segal: Non-GAAP diluted earnings per share for this quarter were $0.46 compared to $0.42 per diluted share in the fourth quarter of 2024, and $1.60 for 2025 compared to $1.76 for 2024. As of 31 December 2025, the company had cash and cash equivalents, marketable securities, and deposits of $555.3 million, and we returned $127.4 million back to the shareholders through a disciplined share repurchase program. This quarter, InMode generated $22.7 million from operating activities. Before I turn the call back to Moshe, I'd like to reiterate our guidance for 2026: revenues between $365 million to $375 million, non-GAAP gross margin between 75% and 77%, non-GAAP income from operations between $87 million and $92 million, non-GAAP earnings per diluted share between $1.43 to $1.48. I will now turn over the call back to Moshe. Thank you, Yair. Operator, we're ready for Q&A session.
Yair Malca: Non-GAAP diluted earnings per share for this quarter were $0.46 compared to $0.42 per diluted share in the fourth quarter of 2024, and $1.60 for 2025 compared to $1.76 for 2024. As of 31 December 2025, the company had cash and cash equivalents, marketable securities, and deposits of $555.3 million, and we returned $127.4 million back to the shareholders through a disciplined share repurchase program. This quarter, InMode generated $22.7 million from operating activities. Before I turn the call back to Moshe, I'd like to reiterate our guidance for 2026: revenues between $365 million to $375 million, non-GAAP gross margin between 75% and 77%, non-GAAP income from operations between $87 million and $92 million, non-GAAP earnings per diluted share between $1.43 to $1.48. I will now turn over the call back to Moshe.
Speaker #4: 2025, compared to 46 cents, compared to 42 GAP $1.76 for 2024. As of December 31st, equivalents, marketable securities, and deposits of $555.3 million. And we returned 2025, the company had cash and cash back to the shareholders through a disciplined share repurchase program.
Speaker #4: This quarter, InMode generated $22.7 million from operating activities on $127.4 million in revenue. Before I turn the call back to Moshe, I'd like to reiterate our guidance for 2026.
Speaker #4: Revenues between $365 million to $375 million, non-GAAP gross margin between 75% and 77%, non-GAAP income from $88 million to $92 million, non-GAAP earnings per diluted share between $1.43 to $1.48.
Miri Segal: We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question comes from Matt Miksic with Barclays. Please go ahead. Hey, thanks so much for taking the questions, and I appreciate all the color. So one on one of the comments that you made just now, and then I have one follow-up, if I may. You talked a little bit about encouraging signs of improving trends. I don't want to make too much of that. This is something we've talked about and anticipated for some time now.
Operator: We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question comes from Matt Miksic with Barclays. Please go ahead.
Speaker #6: press star then 1 on your telephone keypad. If you're using a speakerphone, please pick up your handset session. before pressing the keys. If at any time your question has been addressed and you would like to withdraw your
Speaker #6: then 2. At this time, we will pause momentarily to assemble our roster. The first question comes you, Yair.
Speaker #6: from Matt Mixik Operator, with Barclays. Please go
Speaker #6: ahead.
Matt Miksic: Hey, thanks so much for taking the questions, and I appreciate all the color. So one on one of the comments that you made just now, and then I have one follow-up, if I may. You talked a little bit about encouraging signs of improving trends. I don't want to make too much of that. This is something we've talked about and anticipated for some time now.
Speaker #7: Hey, thanks so much for taking the And I appreciate all the So one on one of the now and I have one follow-up, if I comments that you made just may.
Speaker #7: Hey, thanks so much for taking the And I appreciate all the So one on one of the now and I have one follow-up, if I color.
Speaker #7: about encouraging signs You talked a little bit of improving trends. I don't want to make too much of that. This is something we've talked about and anticipated for some time anything, are you seeing that would suggest things are starting now.
Miri Segal: So what, if anything, are you seeing that would suggest things are starting to perk up a little bit? And then, as I mentioned, I have 1 quick follow-up. Well, thank you. Thank you. First of all, the interest rates started to come down. That's a good sign for us. And that's meant that the interest rate for leasing packages for 5 years, which is the main vehicle for the doctor to purchase capital equipment, will probably come down as well. And we see some decline in the interest rate on lease packages as well. Second, I believe I said that in Q4 2025, we see a slightly increase in the procedures number. We see more sales in consumable, which represent, I mean, the numbers of the numbers of minimally invasive treatment.
Matt Miksic: So what, if anything, are you seeing that would suggest things are starting to perk up a little bit? And then, as I mentioned, I have 1 quick follow-up.
Speaker #7: to perk up a little bit? And then, as
Moshe Mizrahy: Well, thank you. Thank you. First of all, the interest rates started to come down. That's a good sign for us. And that's meant that the interest rate for leasing packages for 5 years, which is the main vehicle for the doctor to purchase capital equipment, will probably come down as well. And we see some decline in the interest rate on lease packages as well. Second, I believe I said that in Q4 2025, we see a slightly increase in the procedures number. We see more sales in consumable, which represent, I mean, the numbers of the numbers of minimally invasive treatment.
Speaker #5: you. Thank you all. We see, first of all, the interest rates started to come
Speaker #5: down. That's a good sign for
Speaker #5: rate for leasing packages for
Speaker #5: vehicle for the
Speaker #5: down as well. And we see follow-up. equipment, will probably come some So what, if decline in the interest rate I mentioned, I have one quick well.
Speaker #5: Second, I Well, thank believe I said that on lease packages as 2025, we see slightly increase in the procedures number. We see more sales in consumable, which represent, I mean, the numbers treatment.
Speaker #5: So, between these two and a slight increase in revenue in Europe, we believe that these are very early signs. I'm not saying that we see the, we see very, very, very—I would say it encourages us that maybe the momentum, or maybe the...
Miri Segal: So between these two and a slight increase in revenue in Europe, we believe that these are very early signs. I'm not saying that we see the light at the end of the tunnel yet, but we see very, very, very, I would say, soft, some signs that will encourage us that maybe the momentum or maybe the change is coming soon. Okay. That's super helpful. And then, follow-up, not sure how much you're going to be willing to talk about it, so you probably already know what the question is, but just comments that were in the press about strategic alternatives.
Moshe Mizrahy: So between these two and a slight increase in revenue in Europe, we believe that these are very early signs. I'm not saying that we see the light at the end of the tunnel yet, but we see very, very, very, I would say, soft, some signs that will encourage us that maybe the momentum or maybe the change is coming soon. Okay.
Speaker #5: soon. Okay.
Speaker #5: soon. Okay. change is coming That's super
Matt Miksic: That's super helpful. And then, follow-up, not sure how much you're going to be willing to talk about it, so you probably already know what the question is, but just comments that were in the press about strategic alternatives.
Speaker #7: helpful. And then follow-up,
Speaker #7: you're going to be willing to talk about it, so you probably already know what the question is, but just comments that were in the press about strategic alternatives.
Speaker #7: We view the stock as soft some signs that will valued. It has been for very attractively margins Cash flows and stable being able to buy back shares and maneuver in a way that many companies your your margin structure, cash flows, and tax benefits, and so on.
Miri Segal: We view the stock as very attractively valued and has been for some time, cash flows and margins stable, being able to buy back shares and maneuver in a way that many companies your size can't just because of your margin structure, cash flows, and tax benefits, and so on. What can you tell us about the process and maybe the timing as to when we might hear something as a result coming out of it? Well, you know that in the last two and a half years, we actually implemented a buyback program, and we bought back stock for almost $508 million. Following that, the board of directors decided to look for some other strategic alternative to improve the value of the company, which we believe, and the board of directors believe, that it's still very low. So they are considering several types of strategic alternatives.
Matt Miksic: We view the stock as very attractively valued and has been for some time, cash flows and margins stable, being able to buy back shares and maneuver in a way that many companies your size can't just because of your margin structure, cash flows, and tax benefits, and so on. What can you tell us about the process and maybe the timing as to when we might hear something as a result coming out of it?
Speaker #7: What can you tell us about the process, and maybe the timing, as to when we can size—can't just because we might hear something as a result coming out of it?
Moshe Mizrahy: Well, you know that in the last two and a half years, we actually implemented a buyback program, and we bought back stock for almost $508 million. Following that, the board of directors decided to look for some other strategic alternative to improve the value of the company, which we believe, and the board of directors believe, that it's still very low. So they are considering several types of strategic alternatives.
Speaker #5: Well, you know that in the last two and a half years, we actually program, which and we implemented a buyback almost 508 million bought back stock for dollars.
Speaker #5: Following that, the board of directors decided to look for some other strategic options for the company. Which alternative to improve the value is low. Of strategic, we believe in the board of directors’ alternatives.
Speaker #5: They hire a bank in order to help America. And the process is done between the board of directors and the believe that it's still very bank.
Miri Segal: They hire a bank in order to help them. I can say the name, Bank of America. The process is done between the board of directors and the bank. The management is not fully involved in this process. I want to comment one thing about the news that Steel Partners released to the market in the press release that they are willing to buy 51% of the company for $18 per share. So I wonder why they send this letter to me as the CEO and to the board of directors. We do not have 51% of the company to sell. The only way to buy 51% of InMode is to do a tender offer, hire a bank, put some money in an escrow account, and offer it to the public, not to the CEO. I don't have 51% to sell and give them.
Moshe Mizrahy: They hire a bank in order to help them. I can say the name, Bank of America. The process is done between the board of directors and the bank. The management is not fully involved in this process. I want to comment one thing about the news that Steel Partners released to the market in the press release that they are willing to buy 51% of the company for $18 per share. So I wonder why they send this letter to me as the CEO and to the board of directors. We do not have 51% of the company to sell. The only way to buy 51% of InMode is to do a tender offer, hire a bank, put some money in an escrow account, and offer it to the public, not to the CEO. I don't have 51% to sell and give them.
Speaker #5: The management is process. I want to comment—not fully involved in this one thing—about the news that was still released to the markets in the press release that they are willing to buy 51% of the partner's company for $18 per share.
Speaker #5: So I wonder why they send this letter to me as the CEO and to the board of directors. We do not have 51% of the company to sell.
Speaker #5: So the only way So they are considering several types to buy 51% of money in an SO account, and offer it to offer, hire a bank, put some the public, not to the CEO.
Speaker #5: I don't have 51% to InMode is to do a tender sell and give them. sent a But they didn't do it. letter to me and to the board of directors and later one day They just Whatsoever.
Miri Segal: But they didn't do it. They just sent a letter to me and to the board of directors, and later, one day after, they published it as a press release. Other than that, we have no contact with them whatsoever, not myself, not the board. We did not talk to them. We did not discuss it with them. We don't know why they put the press release out, but everything is possible in the US. I suppose so. Thanks so much. The next question comes from Danielle Antalffy with UBS. Please go ahead. Hey. Good morning, everyone. Thanks so much for taking the question. Yair, this is just a question on the gross margin and the EBIT margin guide. It did come in a little bit lower. Appreciate revenues also coming in a little bit lower.
Moshe Mizrahy: But they didn't do it. They just sent a letter to me and to the board of directors, and later, one day after, they published it as a press release. Other than that, we have no contact with them whatsoever, not myself, not the board. We did not talk to them. We did not discuss it with them. We don't know why they put the press release out, but everything is possible in the US.
Speaker #5: Not have no contact with them. myself, not the board. We did not talk to them. We did not discuss it with them. We don't know out, but
Speaker #5: everything is possible in the much.
Matt Miksic: I suppose so. Thanks so much.
Speaker #7: I suppose so. Thanks so
Operator: The next question comes from Danielle Antalffy with UBS. Please go ahead.
Speaker #6: The next question
Speaker #6: Taufy with UBS. Please go
Speaker #6: ahead. comes from Daniel and
Danielle Antalffy: Hey. Good morning, everyone. Thanks so much for taking the question. Yair, this is just a question on the gross margin and the EBIT margin guide. It did come in a little bit lower. Appreciate revenues also coming in a little bit lower.
Speaker #8: Hey, good
Speaker #8: taking the question. and the EBIT margin morning, everyone.
Speaker #8: Yair, this is just a question on the gross margin
Speaker #8: a little bit lower. I mean, what are the different levers you can pull there to drive a little bit after they publish it as a press more leverage?
Miri Segal: I mean, what are the different levers you can pull there to drive a little bit more leverage? I guess also what I'm getting at is how conservative is this guidance because you still have pretty good leverage even with revenue a little bit softer than what the street was looking for. And then I have one follow-up. Yair, you want me to answer that? Yeah. No, I'll take it, Moshe. Go ahead. First of all, yes, learning from the past couple of years, we try to be as conservative as we can with our guidance. But to answer your specific question about the margins, Moshe mentioned in his script that one of the new products that we plan to launch is a Pico laser next year, as well as AirBeam laser. And lasers tend to have lower gross margins, as everyone in the industry knows very, very well.
Danielle Antalffy: I mean, what are the different levers you can pull there to drive a little bit more leverage? I guess also what I'm getting at is how conservative is this guidance because you still have pretty good leverage even with revenue a little bit softer than what the street was looking for. And then I have one follow-up.
Speaker #8: I guess also what I'm getting
Speaker #8: guidance? Because you still have pretty good release. leverage even with revenue a little bit softer
Speaker #8: than what the street was looking for. And then I have US. why they put the press release
Moshe Mizrahy: Yair, you want me to answer that?
Yair Malca: Yeah. No, I'll take it, Moshe.
Speaker #7: Yeah.
Speaker #9: No.
Moshe Mizrahy: Go ahead.
Speaker #7: Go ahead.
Speaker #7: Go ahead.
Yair Malca: First of all, yes, learning from the past couple of years, we try to be as conservative as we can with our guidance. But to answer your specific question about the margins, Moshe mentioned in his script that one of the new products that we plan to launch is a Pico laser next year, as well as AirBeam laser. And lasers tend to have lower gross margins, as everyone in the industry knows very, very well.
Speaker #9: First of all, Okay.
Speaker #9: past couple of years, we try to be as conservative as we can. With our guidance, but to answer your specific question about the margins, Moshe one follow-up.
Speaker #9: The new products that we plan to launch are a picolaser next year, as well as an erbium laser. And lasers tend to have a lower gross margin.
Speaker #9: As everyone in the industry knows very, very mentioned in his script that one of well. And we expect we launch in our gross margins a little bit.
Miri Segal: We expect those 2 new lasers that we launch in 2026 to weigh in on our gross margins a little bit. Let me add to what Yair said. There are 2 reasons why the gross margin is going down. One, exactly what Yair said, we are getting into the development of new laser systems, AirBeam YAG, CO2, QSwitch, maybe in the future, Pico. But in the meantime, we have decided that in order to have those products in our portfolio, we need to find a reliable source to buy it from and bring it under InMode brand name to the market. So the first product that we are buying and selling is a CO2 product. We will develop another CO2 in the future, but it's a CO2 product that we buy from an American company under their FDA clearance.
Yair Malca: We expect those 2 new lasers that we launch in 2026 to weigh in on our gross margins a little bit.
Moshe Mizrahy: Let me add to what Yair said. There are 2 reasons why the gross margin is going down. One, exactly what Yair said, we are getting into the development of new laser systems, AirBeam YAG, CO2, QSwitch, maybe in the future, Pico. But in the meantime, we have decided that in order to have those products in our portfolio, we need to find a reliable source to buy it from and bring it under InMode brand name to the market. So the first product that we are buying and selling is a CO2 product. We will develop another CO2 in the future, but it's a CO2 product that we buy from an American company under their FDA clearance.
Speaker #9: Let me 2026, to weigh in on add to what Yair said. There are two reasons why the gross margin is going down. One, exactly what Yair said, we are getting into the laser development of new laser systems, erbium yag, CO2, Q switch, maybe in the future picco.
Speaker #9: meantime, we have But in the decided that in order to have those products in our portfolio, we need to find a reliable source to buy it from and bring it under InMode brand name to the market.
Speaker #9: So the first product that we are buying and selling is CO2 products. We will develop another CO2 in the future, we buy from American company under but it's a CO2 product that their FDA clearance.
Speaker #9: We made it with some changes to comply with InMode requirement as far as software and other elements. And we brought it to the market in 2025.
Miri Segal: We made it with some changes to comply with InMode requirements as far as software and other elements, and we brought it to the market in 2025. In 2026, we intend to bring to the market two new products, which we are going to buy from a Korean company. This is the Pico and the QSwitch lasers. Both platforms are very well known in the medical aesthetic, but once we buy them and we bring them to the US, the cost to us is much higher than our internal manufacturing cost. And we need to take it as a COGS. So the effect on the gross margin plus the effect of the US tariff, 15% from all imports from Israel, will affect the gross margin to go in the neighborhood of 75%. Okay. That's helpful. And then my next question was actually related to the laser launches.
Moshe Mizrahy: We made it with some changes to comply with InMode requirements as far as software and other elements, and we brought it to the market in 2025. In 2026, we intend to bring to the market two new products, which we are going to buy from a Korean company. This is the Pico and the QSwitch lasers. Both platforms are very well known in the medical aesthetic, but once we buy them and we bring them to the US, the cost to us is much higher than our internal manufacturing cost. And we need to take it as a COGS. So the effect on the gross margin plus the effect of the US tariff, 15% from all imports from Israel, will affect the gross margin to go in the neighborhood of 75%.
Speaker #9: In 2026, we intend to bring to the market two new products, which we are going to buy from a Korean and a Q-switch laser.
Speaker #9: Both platforms are very well known in the medical aesthetic. But once we buy them and we bring them to the US, the cost to us is much higher than our internal manufacturing cost.
Speaker #9: as a And we need to take it COGS. So the effect on the gross company. margin plus the effect of the This is the picco US tariff, 15% from all import from Israel, will affect the gross margin to go in the neighborhood of 75%.
Danielle Antalffy: Okay. That's helpful. And then my next question was actually related to the laser launches.
Speaker #8: Okay. That's helpful. And then my next question was actually related to the laser launches. I mean, how much do you think this opens up the market to you incrementally in 2026 and 2027?
Miri Segal: I mean, how much do you think this opens up the market to you incrementally in 2026 and 2027? I appreciate you've had products here before, but just sort of how big is the laser portion of this market, and how much does your TAM increase by launching these products? Well, historically, the laser platforms are the bread and butter of medical aesthetic. Okay? We came to the market 10 years ago with a new innovation using RF energy and not just laser. And we did very well because laser cannot penetrate deep, and RF penetrates as deep as you want, especially if you are treating in a minimally invasive method and procedures. So it was a very new technology that we introduced to the market.
Danielle Antalffy: I mean, how much do you think this opens up the market to you incrementally in 2026 and 2027? I appreciate you've had products here before, but just sort of how big is the laser portion of this market, and how much does your TAM increase by launching these products?
Speaker #8: I appreciate you've had products here before, but just sort of how big is the laser portion of this market? And how much does your TAM increase by launching these
Speaker #8: products?
Moshe Mizrahy: Well, historically, the laser platforms are the bread and butter of medical aesthetic. Okay? We came to the market 10 years ago with a new innovation using RF energy and not just laser. And we did very well because laser cannot penetrate deep, and RF penetrates as deep as you want, especially if you are treating in a minimally invasive method and procedures. So it was a very new technology that we introduced to the market.
Speaker #9: Well,
Speaker #9: historically, the laser platforms is the bread and butter of medical aesthetic. Okay? We came to the market 10 years ago with the new innovation using RF energy and not just laser.
Speaker #9: And we did very well because laser cannot penetrate deep. And RF penetrates as deep as you want, especially if you are treating in a minimal invasive method and procedures.
Speaker #9: So it was a very new technology that we introduced to the market. Right now, we believe that in order to level of products, grow into the next we have to have the bread and butter as well.
Miri Segal: Right now, we believe that in order to grow into the next level of product, we have to have the bread and butter as well. And this is the laser product: CO2, diode, AirBeam, Pico, QSwitch. There are many of them. These are not new technologies because all of these technologies are well known in the medical aesthetic industry, I would say, for at least 25 years. But we are bringing the new generation of lasers, and we come to the market, and we believe that the synergetic effect between our technology and the laser technology will create another competitive advantage. But unfortunately, the laser market is very saturated, and therefore, prices of laser equipment are relatively low compared to InMode products, compared to IgniteRF, compared to OptimasMAX, compared to Morpheus8. And therefore, the margin on them is relatively low compared to us. They are not relatively low, period.
Moshe Mizrahy: Right now, we believe that in order to grow into the next level of product, we have to have the bread and butter as well. And this is the laser product: CO2, diode, AirBeam, Pico, QSwitch. There are many of them. These are not new technologies because all of these technologies are well known in the medical aesthetic industry, I would say, for at least 25 years. But we are bringing the new generation of lasers, and we come to the market, and we believe that the synergetic effect between our technology and the laser technology will create another competitive advantage. But unfortunately, the laser market is very saturated, and therefore, prices of laser equipment are relatively low compared to InMode products, compared to IgniteRF, compared to OptimasMAX, compared to Morpheus8. And therefore, the margin on them is relatively low compared to us. They are not relatively low, period.
Speaker #9: And this is the laser product. CO2, diode, erbium, them. These are not new technologies because all of these technologies are well known in the medical aesthetic industry I would say for at least 25 years.
Speaker #9: But we are bringing the new generation of lasers. And we come to the market. And we believe that the synergetic effect between our technology and the laser technology will create another competitive advantage.
Speaker #9: But unfortunately, the laser market is very pico—Q-switch. There are many of them, and it's saturated. And therefore, prices of laser equipment are relatively low compared to InMode products.
Speaker #9: Compared to Ignite, compared to Optimus Max, compared to Morpheus. And therefore, the margin on them is relatively low compared to us. They are not relatively low.
Speaker #9: In addition to that, some of these products we are buying, we're acquiring from a Korean company or from an American company. And therefore, we have to share the margin with them.
Miri Segal: In addition to that, some of these products we are buying, we are acquiring from a Korean company or from an American company, and therefore, we have to share the margin with them, and that also will affect the margin. But basically, margin, it's a laser for a medical aesthetic company. Long term, it's a must. It's not nice to have. Got you. Thank you so much. The next question comes from Matt Taylor with Jefferies. Please go ahead. Hey. Good morning. This is Michael Sarcone for Matt today. Thanks for taking the questions. I guess maybe just to start, Yair, maybe can you help us on the quarterly phasing when we think about top line and margins through the year? I think it's going to be very similar to 2025.
Moshe Mizrahy: In addition to that, some of these products we are buying, we are acquiring from a Korean company or from an American company, and therefore, we have to share the margin with them, and that also will affect the margin. But basically, margin, it's a laser for a medical aesthetic company. Long term, it's a must. It's not nice to have.
Speaker #9: And that's also will affect the margin. But basically, margin laser for medical aesthetic company long term, it's a must. It's not nice to have.
Danielle Antalffy: Got you. Thank you so much.
Speaker #8: Got you. Thank you so much.
Operator: The next question comes from Matt Taylor with Jefferies. Please go ahead.
Speaker #10: The next question comes from Matt Taylor with Jefferies. Please go ahead.
Speaker #10: ahead. Hey, good morning.
Michael Sarcone: Hey. Good morning. This is Michael Sarcone for Matt today. Thanks for taking the questions. I guess maybe just to start, Yair, maybe can you help us on the quarterly phasing when we think about top line and margins through the year?
Speaker #11: This is Mike Sarcona for Matt today. Thanks for taking the questions. I guess, maybe just to start, Yair, can you help us on the quarterly phasing when we think about top line and margins through the year?
Yair Malca: I think it's going to be very similar to 2025.
Speaker #9: I think it's going to be very similar to 2025. As you see, the guidance is pretty much spot on with our actual for 2025.
Miri Segal: As you see, the guidance is pretty much spot on with our actuals for 2025, and I expect the quarterly distribution to be the same. Okay. Great. Thank you. And then just on the two new launches for this year, can you talk about what you have baked into guide from a financial contribution standpoint? Well, go ahead, Moshe. I mean, the two products that we launched this year in North America are the Solaria, which is the CO2, and the Apex RF, which is for increased blood circulation, and some doctors using it for erectile dysfunction. These two products' contribution in 2025 was 35 times 60. It's about, I would say, $15 million. Okay. And that's 15? 15? 15, yes. Got it. Thank you. And any color on kind of new product contributions for 2026, or are you not providing that?
Yair Malca: As you see, the guidance is pretty much spot on with our actuals for 2025, and I expect the quarterly distribution to be the same.
Speaker #9: And I expect the quarterly distribution to be the same.
Michael Sarcone: Okay. Great. Thank you. And then just on the two new launches for this year, can you talk about what you have baked into guide from a financial contribution standpoint?
Speaker #11: Okay. Great. Thank you. And then just on the two new launches, for this year, can you talk about what you have baked into guide from a financial contribution standpoint?
Yair Malca: Well, go ahead, Moshe.
Speaker #9: Well, I think go ahead, Michel.
Speaker #11: I mean, the two products that we launched this year in North America are the Solaria, which is the CO2, and the Apex RF, which is for blood increased blood circulation.
Moshe Mizrahy: I mean, the two products that we launched this year in North America are the Solaria, which is the CO2, and the Apex RF, which is for increased blood circulation, and some doctors using it for erectile dysfunction. These two products' contribution in 2025 was 35 times 60. It's about, I would say, $15 million. Okay. And that's 15? 15? 15, yes.
Speaker #11: And some doctors are using it for erectile dysfunction. These two products contribution in 2025 was 2025 times 60. It's about, I would say, 15 million dollars.
Speaker #11: Okay. And that's
Speaker #11: 1,515? Got 1, 5, yes. It. Thank you. And any color on kind of new product contributions for 2026, or are you not providing that?
Michael Sarcone: Got it. Thank you. And any color on kind of new product contributions for 2026, or are you not providing that?
Speaker #9: Well, the two new products that we're bringing in 2026, one of them is made by us, which is a combination platforms of new technology of Morpheus.
Miri Segal: Well, the two new products that we'll bring in 2026, one of them is made by us, which is a combination platforms of new technology of Morpheus. We don't want to elaborate what kind of a new technology. But for us, Morpheus, it's technology. It's not a product. And we have some new ideas how to make it next generation of Morpheus combined with AirBeam YAG. AirBeam YAG is a superficial treatment on the skin, 200 micron, 150 micron, something for texture. And the Morpheus go deeper. So basically, if you combine between these two modalities in one platforms, you give the dermatologist or the aesthetic surgeon or the aesthetic doctor the ability to combine between these two treatments to get much better results. That's one product. The second product is the product that it's a Pico laser.
Moshe Mizrahy: Well, the two new products that we'll bring in 2026, one of them is made by us, which is a combination platforms of new technology of Morpheus. We don't want to elaborate what kind of a new technology. But for us, Morpheus, it's technology. It's not a product. And we have some new ideas how to make it next generation of Morpheus combined with AirBeam YAG. AirBeam YAG is a superficial treatment on the skin, 200 micron, 150 micron, something for texture. And the Morpheus go deeper. So basically, if you combine between these two modalities in one platforms, you give the dermatologist or the aesthetic surgeon or the aesthetic doctor the ability to combine between these two treatments to get much better results. That's one product. The second product is the product that it's a Pico laser.
Speaker #9: We don't want to elaborate what kind of a new technology. But for us, Morpheus, it's technology. It's not a product. And we have some new ideas how to make it next generation of Morpheus, combined with erbium yag.
Speaker #9: is a superficial Erbium yag treatment on the skin. 200 micron, 150 micron, something for texture. And the Morpheus go deeper. So basically, if you combine between these two modalities, in one platforms, you give the dermatologist or the aesthetic surgeon or the aesthetic doctor the ability to combine between these two treatments to get much better results.
Speaker #9: That's one product. The second product is the product that it's a picco laser. We buy it from a Korean company. Young and small Korean company that we identified.
Miri Segal: We buy it from a Korean company, a young and small Korean company that we identified, and we signed some kind of agreement with them. So we are exclusively selling their product in the United States. Pico, it's a very short pulse of laser. So Pico is used for all kinds of pigmented lesions, for tattoos, for melasma, and other skin indications that you're treating. These two products, we believe, will be well accepted, although we are not the first one with Pico. But with other platforms, it's unique, and we're the only one. So I don't know. I cannot give you any estimations how much we'll sell from each one of them, but these are two products that we are launching, and we are launching with intensive marketing, I would say. Activity. Great. Thank you, Moshe and Yair. The next question comes from Joseph Conway with Needham.
Moshe Mizrahy: We buy it from a Korean company, a young and small Korean company that we identified, and we signed some kind of agreement with them. So we are exclusively selling their product in the United States. Pico, it's a very short pulse of laser. So Pico is used for all kinds of pigmented lesions, for tattoos, for melasma, and other skin indications that you're treating. These two products, we believe, will be well accepted, although we are not the first one with Pico. But with other platforms, it's unique, and we're the only one. So I don't know. I cannot give you any estimations how much we'll sell from each one of them, but these are two products that we are launching, and we are launching with intensive marketing, I would say. Activity.
Speaker #9: of agreement with them. And we signed some kind selling their product in the United So we are exclusively States. Picco, it's a very short pulse of laser.
Speaker #9: So picco is used for all kinds of pigmented lesions, for tattoos, for melasma, and other skin indications that you're treating. These two products we believe will be well accepted, although we're not the first one with picco.
Speaker #9: But with the other platforms, it's unique. And we're the only one. So I don't know. I cannot give you any estimations how much we'll sell from each one of them.
Speaker #9: But these are two products that we're launching. And we're launching with intensive marketing, I would say. Activity.
Michael Sarcone: Great. Thank you, Moshe and Yair.
Speaker #11: Moshe and Great. Thank you, Yair.
Operator: The next question comes from Joseph Conway with Needham.
Speaker #10: question comes from Joseph Conway The next with Needham. Please go ahead.
Miri Segal: Please go ahead. Moshe, Yair, thank you very much for taking our questions. I guess maybe just a quick one. Obviously, we saw minimally invasive decline a little bit in 2025 while non-invasive more than doubled. So very strong growth there. I'm just wondering if you can basically add some color as whether this is mostly driven by the new product launches, the new lasers, or is there any industry shift that went on in 2025 that preferred the non-invasive treatments over the minimally invasive? Is this med spas growing faster than derm or surgeon clinics? Or like I said earlier, is it mostly just new product launch-related? Well, I believe we said that before, but I will say it again. Typically, minimally invasive procedures cost much more than non-invasive. So if you want to do one Quantum treatment, it can cost you $4,000 to 7,000 per one treatment.
Joseph Conway: Please go ahead. Moshe, Yair, thank you very much for taking our questions. I guess maybe just a quick one. Obviously, we saw minimally invasive decline a little bit in 2025 while non-invasive more than doubled. So very strong growth there. I'm just wondering if you can basically add some color as whether this is mostly driven by the new product launches, the new lasers, or is there any industry shift that went on in 2025 that preferred the non-invasive treatments over the minimally invasive? Is this med spas growing faster than derm or surgeon clinics? Or like I said earlier, is it mostly just new product launch-related?
Speaker #11: for taking our questions. I guess maybe just a quick one. Obviously, we saw minimally invasive decline a little bit in 2025 while non-invasive more than doubled.
Speaker #11: So very strong growth there. I'm just wondering, if you can basically add some color as whether this is mostly driven by the new product launches, the new lasers, industry shift that went on in or is there any 2025 that preferred the non-invasive treatments over the minimally invasive?
Speaker #11: growing faster than Is this med spas derm or surgeon clinics? Or like I said earlier, is it mostly just new product launch related?
Yair Malca: Well, I believe we said that before, but I will say it again. Typically, minimally invasive procedures cost much more than non-invasive. So if you want to do one Quantum treatment, it can cost you $4,000 to 7,000 per one treatment.
Speaker #9: Well, I believe we said that before. But I will say it again. Typically, minimally invasive procedure costs much more than non-invasive. So if you want to do one quantum treatment, it can cost you four to $7,000 per one treatment.
Speaker #9: When you want to do laser hair removal, you can buy a package of six treatments for $3,000. So it's $500 per treatment. So the basic procedures, like hair removal or skin rejuvenation, these are relatively—I don't want to say cheap.
Miri Segal: When you want to do laser hair removal, you can buy a package of 6 treatments for $3,000. So it's $500 per treatment. So the basic procedures like hair removal, skin rejuvenation, these are relatively, I don't want to say cheap, relatively low-priced treatments. And the high-cost treatments like Morpheus, like Quantum, like BodyTight are more expensive. And therefore, when you have only $2,000 for aesthetics a year, you first go to do hair removal and skin rejuvenation, and then you go to do skin or face reshaping. The procedures in 2025, although it was the numbers of procedures in 2025, although it was slightly above 2024, but taking into consideration that we added another 4,500 systems in 2025 to the market, the numbers did not grow.
Yair Malca: When you want to do laser hair removal, you can buy a package of 6 treatments for $3,000. So it's $500 per treatment. So the basic procedures like hair removal, skin rejuvenation, these are relatively, I don't want to say cheap, relatively low-priced treatments. And the high-cost treatments like Morpheus, like Quantum, like BodyTight are more expensive. And therefore, when you have only $2,000 for aesthetics a year, you first go to do hair removal and skin rejuvenation, and then you go to do skin or face reshaping. The procedures in 2025, although it was the numbers of procedures in 2025, although it was slightly above 2024, but taking into consideration that we added another 4,500 systems in 2025 to the market, the numbers did not grow.
Speaker #9: Relatively low-priced treatment. And the high cost, the high-cost treatment, like Morpheus, like Quantum, like BodyTite, are more expensive. And therefore, when you have only $2,000 for aesthetic a year, you first go to do hair removal and skin rejuvenation.
Speaker #9: And then you go to do skin or face reshaping. The procedures in 2025, although it was the numbers of procedures in 2025, although it was slightly above 2024, but taking into consideration that we added another 4,000, 4,500 system in 2025 to the market, the numbers did not grow.
Speaker #9: So we still don't see a major change in the number of procedures that we're selling, that we are yeah, the numbers of disposable, which means the numbers of procedures that we are selling to the doctors.
Miri Segal: So we still don't see a major change in the number of procedures that we are selling, the number of disposables, which means the number of procedures that we are selling to the doctors. Okay. So another thing I wanted to add, and this is something that I believe affects all the market, and that's the GLP-1. The GLP-1, 35 million Americans are using GLP-1. So if they want to lose fat, instead of doing liposuction or BodyTight, they can lose fat with GLP-1. Long term, we believe it will help us because once you lose fat, you have loose skin, and you need to tighten the skin. And then minimally invasive is the best way because laser hardly tightens the skin. Yes. Okay. That makes perfect sense. And then just one more.
Yair Malca: So we still don't see a major change in the number of procedures that we are selling, the number of disposables, which means the number of procedures that we are selling to the doctors. Okay. So another thing I wanted to add, and this is something that I believe affects all the market, and that's the GLP-1. The GLP-1, 35 million Americans are using GLP-1. So if they want to lose fat, instead of doing liposuction or BodyTight, they can lose fat with GLP-1. Long term, we believe it will help us because once you lose fat, you have loose skin, and you need to tighten the skin. And then minimally invasive is the best way because laser hardly tightens the skin.
Speaker #11: Okay.
Speaker #9: And another thing I wanted to add, and this is something that I believe affects all the market. And that's the GLP-1. The GLP-1, 35 million Americans are using GLP-1.
Speaker #9: So if they want to lose fat, instead of doing liposuction or BodyTite, they can lose fat with GLP-1. Long-term, we believe it will help us.
Speaker #9: Because once you lose fat, you have loose skin. And you need to tighten the skin. And then minimally invasive is the best way, because laser hardly tightens the skin.
Joseph Conway: Yes. Okay. That makes perfect sense. And then just one more.
Speaker #11: Yes. Okay. That makes perfect sense. And then just one more. It looks like, based off of your slides, that the number of countries that InMode is operating in jumped by considerable amount.
Miri Segal: It looks like based off of your slides that the number of countries that InMode is operating in jumped by a considerable amount, I think at least 10 by my math. Just wondering there, what countries did you guys enter in this quarter, or is it Q4. What was the split there? Are these more direct subsidiaries versus distributors? I know last call, you called out Argentina and Thailand as new direct subsidiaries. And then maybe if you could just expand on that a little bit more, talk about, are you guys still continuing to emphasize the direct sales over the distributor sales? Is that going to be a mission in 2026, possibly to help the gross margin line? Yeah. Any color on all that would be great. Much appreciated. Well, there's always the rule of 20/80. 20% of your customers making 80% of your revenue.
Joseph Conway: It looks like based off of your slides that the number of countries that InMode is operating in jumped by a considerable amount, I think at least 10 by my math. Just wondering there, what countries did you guys enter in this quarter, or is it Q4. What was the split there? Are these more direct subsidiaries versus distributors? I know last call, you called out Argentina and Thailand as new direct subsidiaries. And then maybe if you could just expand on that a little bit more, talk about, are you guys still continuing to emphasize the direct sales over the distributor sales? Is that going to be a mission in 2026, possibly to help the gross margin line?Yeah. Any color on all that would be great. Much appreciated.
Speaker #11: I think at least 10 by my math. Just wondering there, what countries did you guys enter in this quarter or 4Q? What was the split there?
Speaker #11: Are these more direct subsidiaries versus distributors? I know last call you called out Argentina and Thailand as new direct if you could just expand on that a little bit subsidiaries.
Speaker #11: more. Talk And then maybe about are you guys still continuing? Do you emphasize the direct sales over the distributor sales? Is that going to be a mission in 2026, possibly to help the gross margin line?
Speaker #11: great. Yeah. Any color on all that would be appreciated.
Moshe Mizrahy: Well, there's always the rule of 20/80. 20% of your customers making 80% of your revenue.
Speaker #9: Well, there's always the rule of 20/80. 20% of your customers buying 80% of your making 80% of your revenue. So if we're adding more customers, these are relatively small.
Miri Segal: So if we're adding more customers, these are relatively small because the big countries and the big markets we're covering anyway. But for example, I'll give you an example. For example, a small country like Austria. We have a subsidiary in Germany. So we open a base in Austria as well. So this is another market. Although we don't have a distributor, it's direct from Germany. The same Ireland and Scotland from the UK. The same Belgium for France. The two new subsidiaries that we established in 2025, Argentina and Thailand, used to be distributors, but we were not very happy with these distributors. And this is the reason we thought it might be better if we open our own subsidiary because there is a potential in those countries.
Moshe Mizrahy: So if we're adding more customers, these are relatively small because the big countries and the big markets we're covering anyway. But for example, I'll give you an example. For example, a small country like Austria. We have a subsidiary in Germany. So we open a base in Austria as well. So this is another market. Although we don't have a distributor, it's direct from Germany. The same Ireland and Scotland from the UK. The same Belgium for France. The two new subsidiaries that we established in 2025, Argentina and Thailand, used to be distributors, but we were not very happy with these distributors. And this is the reason we thought it might be better if we open our own subsidiary because there is a potential in those countries.
Speaker #9: Because the big countries and the big market were covering anyway. But for example, I'll give you an example. For example, a small country like Austria.
Speaker #9: We have a subsidiary in Germany, so we opened a base in Austria as well. So this is another market. Although we don't have a distributor, it's direct from Germany.
Speaker #9: The same Ireland and Scotland from the UK. The same Belgium for France. The two new subsidiaries that we established in 2025, Argentina and Thailand, used to be distributors.
Speaker #9: But we were not very happy with these distributors. And this is the reason we thought it might be better if we open our own subsidiary because there is a potential in those countries.
Speaker #9: But when we add another country in Africa that buys two or three systems, yes, there is a distributor who sells some product. But that's not adding much to our top line.
Miri Segal: But when we add another country in Africa that buys 2 or 3 systems, yes, there is a distributor who sells some product, but that's not adding much to our top line. Our top line will be to increase productivity and to increase market share in the big market. And don't forget, 80% of our sales today are direct. That means that 13 subsidiaries are controlling 80% of our revenue, and all other distributors, only 20% of our revenue. Okay. Thank you so much. Did I answer your question? Yeah. Yeah. Perfectly. Much appreciated. That's helpful. The next question comes from Caitlin Cronin with Canaccord Genuity. Please go ahead. Hi. Thanks so much for taking the questions. Just to start off, what are you specifically seeing in Europe that's been so encouraging?
Moshe Mizrahy: But when we add another country in Africa that buys 2 or 3 systems, yes, there is a distributor who sells some product, but that's not adding much to our top line. Our top line will be to increase productivity and to increase market share in the big market. And don't forget, 80% of our sales today are direct. That means that 13 subsidiaries are controlling 80% of our revenue, and all other distributors, only 20% of our revenue.
Speaker #9: Our top line will be to increase productivity and to increase market share in the big market. And don't forget, 80% of our sales today are direct.
Speaker #9: That means that 13 subsidiaries are controlling 80% of our revenue. And all other distributors only 20% of our revenue. Did I answer your
Joseph Conway: Okay. Thank you so much.
Speaker #11: Okay. Yeah. Yeah.
Moshe Mizrahy: Did I answer your question?
Speaker #9: question?
Joseph Conway: Yeah. Yeah. Perfectly. Much appreciated. That's helpful.
Speaker #11: Perfectly. Much appreciated. That's
Speaker #11: helpful. The next question comes from
Operator: The next question comes from Caitlin Cronin with Canaccord Genuity. Please go ahead.
Speaker #12: Caitlin Roberts with Canacor Genuity. Please go ahead.
Caitlin Cronin: Hi. Thanks so much for taking the questions. Just to start off, what are you specifically seeing in Europe that's been so encouraging? Do you continue to expect international to be a higher mix of revenues in 2026 than it's been historically?
Speaker #13: Hi. Thanks so much for taking the questions. Just to start off, what do you specifically see in Europe that's been so encouraging? And do you continue to expect international to be a higher mix of revenues in 2026 than it's been historically?
Miri Segal: Do you continue to expect international to be a higher mix of revenues in 2026 than it's been historically? Well, I don't know if I can say that. Although adding two subsidiaries to the international and making bases in some countries with our existing subsidiaries, as I said before, Austria, Belgium, Scotland, Ireland, will increase our direct sales in those territories, and it might increase the total revenue from the international. But we also invested a lot of money and a lot of effort to, I don't want to say reorganize, but to streamline the operation in North America. We are combining the East, West, and Canada into one company. Instead of having three companies, we have now one company that's using the same product line and the same marketing under the same language. We believe that that will help the North American market as well.
Moshe Mizrahy: Well, I don't know if I can say that. Although adding two subsidiaries to the international and making bases in some countries with our existing subsidiaries, as I said before, Austria, Belgium, Scotland, Ireland, will increase our direct sales in those territories, and it might increase the total revenue from the international. But we also invested a lot of money and a lot of effort to, I don't want to say reorganize, but to streamline the operation in North America. We are combining the East, West, and Canada into one company. Instead of having three companies, we have now one company that's using the same product line and the same marketing under the same language. We believe that that will help the North American market as well.
Speaker #9: Well, I don't know if I can say that. Although adding two subsidiaries to the international, and making bases in some countries with our existing subsidiaries—as I said before: Austria, Belgium, Scotland, Ireland—will increase our direct sales.
Speaker #9: In those territories, and it might increase the total revenue from the international. But we also invested a lot of money and a lot of effort to I don't want to say reorganize but to streamline the operation in North America.
Speaker #9: We are combining the East, West, and Canada into one company. Instead of having three companies, we now have one company that's using the same product line and the same marketing, under the same language.
Speaker #9: And we believe that that will help the North American market as well. So to tell you whether or not the international will be higher than North America, we're not in a position.
Miri Segal: So, to tell you whether or not the international will be higher than North America, we are not in a position. We would like both of them to grow. Understood. And how should we be thinking about R&D and sales and marketing spend this year? What is the question? What do we think about R&D? R&D and sales and marketing spend this year, what levels in 2026 versus 2025? Okay. On the R&D, although I don't think it needs to be measured as percentage of revenue, and I said that several times before, we have an R&D team in Israel, which includes electronics, software, mechanical, clinical regulation. It's one team. The fact is that in 2026, we will increase the spending on not the spending, the investing on R&D because we are initiating two big clinical studies for women's health, which are not just a simple laser.
Moshe Mizrahy: So, to tell you whether or not the international will be higher than North America, we are not in a position. We would like both of them to grow.
Speaker #9: We would like both of them to grow.
Speaker #13: Understood. And how should we be thinking about R&D and sales and marketing spend this year?
Caitlin Cronin: Understood. And how should we be thinking about R&D and sales and marketing spend this year? What is the question? What do we think about R&D? R&D and sales and marketing spend this year, what levels in 2026 versus 2025?
Speaker #9: What is the question? What do we think about R&D?
Speaker #13: At R&D and sales and marketing spend this year, what levels in 2026 versus 2025?
Moshe Mizrahy: Okay. On the R&D, although I don't think it needs to be measured as percentage of revenue, and I said that several times before, we have an R&D team in Israel, which includes electronics, software, mechanical, clinical regulation. It's one team. The fact is that in 2026, we will increase the spending on not the spending, the investing on R&D because we are initiating two big clinical studies for women's health, which are not just a simple laser.
Speaker #9: Okay. On the R&D, although I don't think it needs to be measured as a percentage of revenue—when I said that several times before—we have an R&D team in Israel.
Speaker #9: Which includes electronics, software, mechanical, clinical, regulation. It's one team. The fact is that in 2026, we will increase the spending on not the spending, the investing on R&D.
Speaker #9: Because we are initiating two big clinical studies for women's health. Which are not just a simple laser. And that will cost money. Each one of them probably will be in the neighborhood of between 2 to 4 million dollars in 2024.
Miri Segal: And that will cost money. Each one of them probably will be in the neighborhood of between $2 to 4 million in 2024 and maybe a little bit in 2026 and maybe a little bit in 2027. So that will increase the total expenditure on R&D. As far as marketing, when it's a little bit difficult to sell because of the softness of the market and you want to keep your market share, you have to spend more on marketing: B2B, B2C, social media, conferences, which we are now planning to be in many of them all over the world. And the fact that we're bringing new product to the market also requires some more expenses or more investing, I want to call it this way, on marketing. So I mean, the percentage will be similar to 2025.
Moshe Mizrahy: And that will cost money. Each one of them probably will be in the neighborhood of between $2 to 4 million in 2024 and maybe a little bit in 2026 and maybe a little bit in 2027. So that will increase the total expenditure on R&D. As far as marketing, when it's a little bit difficult to sell because of the softness of the market and you want to keep your market share, you have to spend more on marketing: B2B, B2C, social media, conferences, which we are now planning to be in many of them all over the world. And the fact that we're bringing new product to the market also requires some more expenses or more investing, I want to call it this way, on marketing. So I mean, the percentage will be similar to 2025.
Speaker #9: And maybe a little bit in 2026. And maybe a little bit in 2027. So that will increase the total expenditure on R&D. As far as marketing, when it's a little bit difficult to sell, because of the softness of the market, and you want to keep your market share, you have to spend more on marketing.
Speaker #9: B2B, B2C, social media, conferences, which we are now planning to be in many of them all over the world. And the fact that we're bringing new markets, new products to the market, also requires some more expenses or more investing, I want to call it this way.
Speaker #9: On marketing. So I mean, the percentage will be similar to 2025. We will not spend more. But we are more focused on specific spending and not
Miri Segal: We will not spend more, but we are more focused on specific spending and not general. Understood. Thanks so much. The next question comes from Sam Eiber with BTIG. Please go ahead. Hi. Good morning. Thanks for taking the questions. Maybe I'll have to just and I'll ask them both upfront here. First, on capital allocation, we'd love an update on your priorities here in 2026 and if maybe any decisions are going to be held off until the end of this review process. And then the second question, just any update on the clinical work for the dry eye indication and FDA approval timelines. Thanks. We are trying to get indication for the dry eye using bipolar RF, not IPL, because we believe that the IPL technology can do something, but the best results, as far as we know, and we did some studies, is from RF, bipolar RF.
Moshe Mizrahy: We will not spend more, but we are more focused on specific spending and not general.
Speaker #9: general. Understood.
Caitlin Cronin: Understood. Thanks so much.
Speaker #13: Thanks so
Speaker #13: much. The next question comes from
Operator: The next question comes from Sam Eiber with BTIG. Please go ahead.
Speaker #12: Sam Iber with BTIG. Please go ahead.
Sam Eiber: Hi. Good morning. Thanks for taking the questions. Maybe I'll have to just and I'll ask them both upfront here. First, on capital allocation, we'd love an update on your priorities here in 2026 and if maybe any decisions are going to be held off until the end of this review process. And then the second question, just any update on the clinical work for the dry eye indication and FDA approval timelines. Thanks.
Speaker #11: questions. Maybe I'll have to Hi. Good morning. Thanks for taking the just analyze them both up front here. First, on capital allocation, we'd love an update on your priorities here in 2026.
Speaker #11: And if maybe any decisions are going to be held off until the end of this review process. And then the second question, just any update on the clinical work for the dry eye indication.
Speaker #11: And FDA approval timelines. Thanks.
Moshe Mizrahy: We are trying to get indication for the dry eye using bipolar RF, not IPL, because we believe that the IPL technology can do something, but the best results, as far as we know, and we did some studies, is from RF, bipolar RF.
Speaker #9: The indication for dry eye we are trying to get is using bipolar RF, not IPL. Because we believe that the IPL technology can do something, but the best results, as far as we know—and we did some studies—are from RF, bipolar RF.
Speaker #9: So we initiated the process with the FDA. We met with the FDA. And the FDA have requested to do several safety tests on animals.
Miri Segal: So we initiated the process with the FDA. We met with the FDA, and the FDA has requested to do several safety tests on animals, and we did that to show the safety. We believe that sooner we will get from the FDA approval for the protocol that we're suggesting, and we will do the study in the United States. This is not an easy study because there is no predicate, and therefore, it's not a regular 510(k). It's 510(k) de novo, and it's taking more time. I would say that the study will last all over 2026 and maybe Q1 2027. So sometime in Q2 2027, I believe, we'll have the final clearance from the FDA. And on capital allocation?
Moshe Mizrahy: So we initiated the process with the FDA. We met with the FDA, and the FDA has requested to do several safety tests on animals, and we did that to show the safety. We believe that sooner we will get from the FDA approval for the protocol that we're suggesting, and we will do the study in the United States. This is not an easy study because there is no predicate, and therefore, it's not a regular 510(k). It's 510(k) de novo, and it's taking more time. I would say that the study will last all over 2026 and maybe Q1 2027. So sometime in Q2 2027, I believe, we'll have the final clearance from the FDA.
Speaker #9: That to show the—and we did—safety. We believe that, sooner, we will get FDA approval for the protocol that was suggested, and we will do the study in the United States.
Speaker #9: This is not an easy study, because there was no predicate. And therefore, it's not a regular 510(k); it's 510(k) De Novo. And it took more time.
Speaker #9: I would say that the study will last all over '26 and maybe the first quarter of '27. So, sometime in the second quarter of 2027, I believe we'll have the final clearance from the FDA.
Sam Eiber: And on capital allocation?
Speaker #12: And on capital
Speaker #12: allocation? Regarding capital
Miri Segal: Regarding capital allocation, the board is evaluating all the capital allocation alternatives together with the strategic alternatives that were mentioned earlier on the call. As soon as we have some updates, obviously, we share. Great. Thank you. The next question comes from Dane Reinhardt with Baird. Please go ahead. Hey. Thanks, guys, for the questions here. I think based on the slide deck that was posted, you had a really nice quarter here in system placements in the US. I think by our math, probably the first time that those actually grew year-over-year in over two years. But offsetting that, I mean, your systems revenue in the US was still down double digits.
Moshe Mizrahy: Regarding capital allocation, the board is evaluating all the capital allocation alternatives together with the strategic alternatives that were mentioned earlier on the call. As soon as we have some updates, obviously, we share.
Speaker #9: Allocation, the Board is evaluating all the capital allocation alternatives together with the strategic alternatives that were mentioned earlier on the call. As soon as we have some updates, obviously, we'll share.
Sam Eiber: Great. Thank you.
Speaker #12: Great, thank you. The next question comes from Dane Reinhardt with Baird. Please go ahead.
Operator: The next question comes from Dane Reinhardt with Baird. Please go ahead.
Speaker #12: ahead. Hey.
Dane Reinhardt: Hey. Thanks, guys, for the questions here. I think based on the slide deck that was posted, you had a really nice quarter here in system placements in the US. I think by our math, probably the first time that those actually grew year-over-year in over two years. But offsetting that, I mean, your systems revenue in the US was still down double digits.
Speaker #11: Thanks, guys. For the questions here, I think based on the slide deck that was posted, you had a really nice quarter here in system placements in the US.
Speaker #11: I think by our math, probably the first time that those actually grew year over year in over two years. But offsetting that, I mean, your systems revenue in the US was still down double digits.
Speaker #11: So just trying to maybe parse out between the year-over-year growth in system placements, between the declines that we're still seeing in revenue. I mean, how much of that maybe is some of those are just new wands that you're selling?
Miri Segal: So, just trying to maybe parse out between the year-over-year growth in system placements, between the declines that we're still seeing in revenue, I mean, how much of that maybe is some of those are just new wands that you're selling, some of those lower-priced lasers versus the RF devices, or how much of that even might be discounting just in the current environment where demand is a bit more subdued? Thanks. The number of systems that we sold this year in North America. I'm continuing to say North America because I want to include Canada in it. The number of platforms that we sold in 2025 was about 2,100, around 2,100 systems. It's about 200 systems below 2024. It's about 200 systems below 2024. But the market is tough. The competition is strong.
Dane Reinhardt: So, just trying to maybe parse out between the year-over-year growth in system placements, between the declines that we're still seeing in revenue, I mean, how much of that maybe is some of those are just new wands that you're selling, some of those lower-priced lasers versus the RF devices, or how much of that even might be discounting just in the current environment where demand is a bit more subdued? Thanks.
Speaker #11: Some of those lower-priced lasers versus the RF devices? Or how much of that even might be discounting just in the current environment where demand is a bit more subdued?
Speaker #11: Thanks.
Moshe Mizrahy: The number of systems that we sold this year in North America. I'm continuing to say North America because I want to include Canada in it. The number of platforms that we sold in 2025 was about 2,100, around 2,100 systems. It's about 200 systems below 2024. It's about 200 systems below 2024. But the market is tough. The competition is strong.
Speaker #9: The number of systems that we sold this year in the North America, I'm continuing to say North America because I want to include Canada.
Speaker #9: The number of platforms that we sold in 2025 was about 2,100. Around 2,100 systems. It's about 200 systems below 2024. It's about 200 systems below 2024.
Speaker #9: But the market is tough. The competition is strong. And therefore, the average selling price of a platform in 2025 was down 9% compared to 2024.
Miri Segal: And therefore, the average selling price of a platform in 2025 was down 9% compared to 2024. Between these two, this is the decrease in the numbers in the revenue in the US. And we did our best. I believe that in 2026, with what I said before, the encouraging sign, the lower interest rate, and maybe some kind of better consumer feeling, maybe we will keep it. And therefore, we said that 2026, for us, it's not going to be a growth year. It's going to be a stabilization year. We said that twice in the press release and also in my speech. We will be very happy if we will continue to sell $370 million, which with about $100 million EBITDA altogether worldwide. And therefore, it takes time to transition a company like InMode. We are not a small company.
Moshe Mizrahy: And therefore, the average selling price of a platform in 2025 was down 9% compared to 2024. Between these two, this is the decrease in the numbers in the revenue in the US. And we did our best. I believe that in 2026, with what I said before, the encouraging sign, the lower interest rate, and maybe some kind of better consumer feeling, maybe we will keep it. And therefore, we said that 2026, for us, it's not going to be a growth year. It's going to be a stabilization year. We said that twice in the press release and also in my speech. We will be very happy if we will continue to sell $370 million, which with about $100 million EBITDA altogether worldwide. And therefore, it takes time to transition a company like InMode. We are not a small company.
Speaker #9: Between these two, this is the decrease in the numbers in the revenue in the US. That's and we did our best. I believe that in 2026, with what I said before, the encouraging sign, the lower interest rate, and maybe some kind of better consumer feeling, maybe we will keep it.
Speaker #9: And therefore, we said that 2026 for us, it's not going to be a growth year. It's going to be a stabilization year. We said that twice in the press release and also in my be very happy if we speech.
Speaker #9: We will will continue to sell 370 million dollars. Which with about 100 million dollars EBITDA. All together worldwide. And therefore, it's tech time to transition a company like InMode.
Speaker #9: We are not a small company. We have 660 people worldwide. Working plus the manufacturing, which is another 200 people. And we are really made a lot of strategic thinking going forward to 2026.
Miri Segal: We have 660 people worldwide working, plus the manufacturing, which is another 200 people. We have really made a lot of strategic thinking going forward to 2026, and I believe we're ready. Thanks, Moshe. Then the other question I had on the men's wellness APEX platform, I think you guys just introduced that in August at a user sales meeting. One, how is feedback from that platform going so far? And two, can you remind me, do you guys have a specialized sales force for that platform, or is it something that you guys are planning on doing in the future? Can you repeat your question? Which platform you're talking about? The APEX men's wellness. The APEX. No, we do not have a special team to sell APEX. We have a special team in 2026, starting January 1st, to sell the Envision. For us, it's a pilot.
Miri Segal: We have 660 people worldwide working, plus the manufacturing, which is another 200 people. We have really made a lot of strategic thinking going forward to 2026, and I believe we're ready.
Speaker #9: And I believe we're ready.
Dane Reinhardt: Thanks, Moshe. Then the other question I had on the men's wellness APEX platform, I think you guys just introduced that in August at a user sales meeting. One, how is feedback from that platform going so far? And two, can you remind me, do you guys have a specialized sales force for that platform, or is it something that you guys are planning on doing in the future?
Speaker #12: Thanks, Moshe. And then the other question I had on the men's wellness apex platform, I think you guys just introduced that in August at a user sales meeting.
Speaker #12: One, how is feedback from that platform going so far? And two, can you remind me, do you guys have a specialized sales force for that platform?
Speaker #12: Or is it something that you guys are planning on doing in the future?
Speaker #9: Which platform? Can you repeat your question? Which platform you're talking about?
Moshe Mizrahy: Can you repeat your question? Which platform you're talking about?
Dane Reinhardt: The APEX men's wellness.
Speaker #12: The apex men's wellness.
Speaker #9: the apex. No. We do not have a special team to sell apex. We have a special team in 2026, starting January 1st, to sell the envision.
Moshe Mizrahy: The APEX. No, we do not have a special team to sell APEX. We have a special team in 2026, starting January 1st, to sell the Envision. For us, it's a pilot.
Speaker #9: For us, it's a pilot. We didn't want to go and cut the organization into pieces. So we decided that we will take one piece at a time.
Miri Segal: We didn't want to go and cut the organization into pieces. So we decided that we will take one piece at a time. Envision, it's important, and we're going to invest in a clinical study. And therefore, Envision is the first product that we actually build a special team only in the United States now, and also partially in Canada that will sell Envision. The APEX is being sold with the other product with the same team, under the same organization. Now, we're not pushing the APEX very much because we do not have yet the indication from the FDA. We're working on it, and we don't want to cross the line. So that's the most I can tell you now. Got it. Thank you. And if I can squeeze one last one in there, do you have the number of consumable units that you guys sold in the quarter?
Moshe Mizrahy: We didn't want to go and cut the organization into pieces. So we decided that we will take one piece at a time. Envision, it's important, and we're going to invest in a clinical study. And therefore, Envision is the first product that we actually build a special team only in the United States now, and also partially in Canada that will sell Envision. The APEX is being sold with the other product with the same team, under the same organization. Now, we're not pushing the APEX very much because we do not have yet the indication from the FDA. We're working on it, and we don't want to cross the line. So that's the most I can tell you now.
Speaker #9: Envision, it's important. And we're going to invest in a clinical study. And therefore, envision is the first product that we actually build, a special team only in the United States now.
Speaker #9: And also partially in Canada. That will send Envision. The Apex is being sold with the other product, with the same team, under the same organization.
Speaker #9: Now, we're not pushing the apex very much. Because we do not have yet the indication from the FDA we're working on it. And we don't want to cross the line.
Speaker #9: So that's the most I can tell you now.
Dane Reinhardt: Got it. Thank you. And if I can squeeze one last one in there, do you have the number of consumable units that you guys sold in the quarter?
Speaker #11: Got it, thank you. And if I can squeeze one last one in there—do you have the number of consumable units that you guys sold in the quarter?
Speaker #9: I believe we do. How much we we'll see. Yeah.
Miri Segal: I believe we do. How much we did? We'll see. Overall, 228. Yeah. Overall, 228. 228,000. Got it. Thank you very much. Appreciate the questions today. This concludes our question-and-answer session. I would like to turn the conference back over to Moshe Mizrahy, InMode CEO, for any closing remarks. Well, thank you, everybody. Thanks to all the analysts that are covering us. I want to thank all shareholders, and a special thanks to InMode employees worldwide. It was not a tough year. 2025 was not an easy year for all of us with major changes and major adjustments. We hope to see you again in the first quarter. Thank you very much. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.
Moshe Mizrahy: I believe we do. How much we did? We'll see. Overall, 228. Yeah. Overall, 228. 228,000.
Speaker #9: Overall, Overall, 200.
Speaker #9: 200 and? 228,000.
Speaker #10: 28.
Speaker #11: Got it. Thank you very much. Appreciate the questions today.
Dane Reinhardt: Got it. Thank you very much. Appreciate the questions today.
Speaker #12: This concludes our question and answer session. I would like to turn the conference back over to Moshe Mizrahy, InMode CEO, for any closing remarks.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Moshe Mizrahy, InMode CEO, for any closing remarks.
Speaker #12: remarks. Well, thank
Moshe Mizrahy: Well, thank you, everybody. Thanks to all the analysts that are covering us. I want to thank all shareholders, and a special thanks to InMode employees worldwide. It was not a tough year. 2025 was not an easy year for all of us with major changes and major adjustments. We hope to see you again in the first quarter. Thank you very much.
Speaker #9: Thanks to all the analysts that are covering you, everybody. us. I want to thank all shareholders. And a special thanks to InMode employees. Worldwide, it was not a tough year 2025.
Speaker #9: It was not an easy year. For all of us, with major changes and major adjustments. And we hope to see you again in the first quarter.
Speaker #9: Thank you very
Speaker #9: much. The
Moshe Mizrahy: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.
