InMode (INMD) Barclays 28th Annual Global Healthcare Conference summary

Market outlook and business cycle

• After two years of declining business, expectations are for a flat top line in 2026, with hopes for improvement beyond that.

• Some areas may still see decline, but growth is anticipated in other regions, especially as demand for aesthetic procedures is expected to return.

• Softening patient demand is a more significant headwind than high interest rates, though both impact capital equipment sales.

• Recovery in North America is a focus, with organizational restructuring to prepare for renewed demand.

• Growth in consumables may precede a rebound in system and console sales, which would drive leverage and margin improvement.

Strategic initiatives and organizational changes

• A new president and two new VPs were appointed in North America to strengthen leadership and execution.

• The sales team was restructured, with a dedicated group for non-aesthetic (wellness) devices.

• Expansion into new verticals includes women's health, ophthalmology, and plans for ENT in the coming year.

• Indication for treating dry eye is currently in Canada, with U.S. approval targeted for late this year or next.

• Distribution agreements and M&A are being considered for further market expansion and portfolio growth.

Product development and portfolio expansion

• Recent launches include the Pico laser in Q1, with Erbium laser and a new Morpheus8 version planned for later in the year.

• Combination treatments using both RF and laser technologies are being promoted to meet provider demand.

• Most revenue still comes from RF-based devices, but lasers are being added to become a one-stop shop for customers.

• Bundling RF and laser devices in sales transactions is a key strategy for profitability.

• New product cadence is typically two platforms per year, with no major RF console additions expected this year beyond the planned launches.