InMode (INMD) Oppenheimer 36th Annual Healthcare MedTech & Services Conference summary

Operational environment and manufacturing

• Operations in northern Israel face ongoing threats, limiting manufacturing to 60% capacity and causing frequent disruptions due to security concerns and school closures.

• Shipping and logistics are challenged by limited air freight, leading to reliance on costly sea transport and inventory redistribution among subsidiaries.

• Inventory levels were intentionally built up over the past two years to mitigate supply chain risks, but current stock may not last beyond six months if disruptions persist.

Capital allocation and M&A strategy

• Over $600 million has been returned to shareholders via share buybacks in the past 3.5 years, with a new $85–90 million buyback approved.

• Plans to retain $450 million in cash post-buyback to enable potential acquisitions in the $500 million–$1 billion range, focusing on complementary technologies or geographic expansion, especially in Asia.

• Previous acquisition attempts targeted companies in injectables and fillers, with a strategic interest in expanding presence in China and Korea.

Market trends and business outlook

• Patient activity and disposable usage have stabilized but are not growing; platform sales guidance remains conservative due to high leasing rates and macro uncertainty.

• Growth is expected to resume in 2027 if stabilization occurs in 2026, supported by new R&D pipeline products.

• The installed base is stable at 25,000–28,000 systems, with upgrades and replacements balancing new installations.