Brett [on for Mike Kratky]'s questions to Inspire Medical Systems Inc (INSP) leadership • Q1 2025
Question
An analyst from Leerink Partners noted the significant increase in inventory days and asked about the expected progression of gross margin as the mix shifts towards the new Inspire V system. He also asked a follow-up question about any foreign exchange impact on the OUS business.
Answer
CFO Richard Buchholz reiterated the full-year gross margin guidance of 84% to 86% and confirmed that Inspire V is accretive to margins, excluding any price changes. He noted they will continue producing Inspire IV for international markets pending approvals. Regarding the follow-up, he stated there was no material FX impact in Q1 but they are seeing some headwinds in Q2.