Breaking Down Inari Medical, Inc. (NARI) Financial Health: Key Insights for Investors

You're looking at Inari Medical, Inc. (NARI) because the story is finally changing from a high-growth, unprofitable medical device play to a business that's delivering real earnings, and honestly, that's the inflection point we've been waiting for. The direct takeaway is that 2025 is the year NARI is expected to achieve sustained operating profitability in the first half of 2025, a massive shift from prior years. Analyst consensus points to a full-year 2025 revenue of around $708 million, driven by the core venous thromboembolism (VTE) business and the full commercial ramp of their new Emerging Therapies segment. Here's the quick math: that revenue growth should translate to a consensus earnings per share (EPS) of roughly $0.25 for the fiscal year. Still, what this estimate hides is the execution risk on the LimFlow system, which is expected to contribute over $45 million by 2025, plus you've got to defintely factor in the overhang from the ongoing Department of Justice (DOJ) civil investigative demand. You need to see how they manage that regulatory pressure while scaling a new product line.

Revenue Analysis

You need to know where Inari Medical, Inc. (NARI) is making its money and how fast that engine is running. The direct takeaway is that while the core business, Venous Thromboembolism (VTE) devices, remains dominant, the company's growth story in 2025 is defintely shifting toward new products and international markets, which is a healthy sign of diversification.

For the 2025 fiscal year, analysts project Inari Medical, Inc. (NARI) will generate approximately $708 million in total revenue. This follows a strong 2024, which saw the company raise its full-year guidance to between $601.5 million and $604.5 million. Here's the quick math: using the midpoint of the 2024 guidance, the 2025 projection of $708 million implies a year-over-year growth rate of around 17.4%, keeping the company firmly in the high-teens growth bracket.

The revenue streams for Inari Medical, Inc. (NARI) break down into three main pillars, all centered on minimally invasive, catheter-based treatments for vascular diseases. The primary revenue source is still the VTE segment, which includes the flagship devices, FlowTriever and ClotTriever, for treating pulmonary embolism (PE) and deep vein thrombosis (DVT). This core VTE business drove over 85% of the company's growth in 2023.

But the story is changing fast. The Emerging Therapies segment and International expansion are the clear growth catalysts for 2025 and beyond. New products, like the recently acquired LimFlow system for chronic limb-threatening ischemia (CLTI), are expected to contribute over $45 million by 2025. Management is confident that this Emerging Therapies segment will grow to represent at least 20% of total revenue in the future. That's a significant planned shift in the revenue mix.

International sales are also experiencing a major acceleration. While overseas revenue was historically small, only about 7% of the total, the company is seeing explosive growth, with international sales surging by 76.4% in the third quarter of 2024 alone. They are targeting international revenue to account for at least 20% of future sales, focusing on key markets like Japan and China following regulatory approvals. This rapid geographical expansion is a concrete change in the revenue profile.

• VTE products: The reliable core, driving the majority of current sales.
• Emerging Therapies: LimFlow and Artix are the new revenue drivers.
• International Markets: The fastest-growing segment, targeting 20% of future revenue.

What this estimate hides is the potential impact of pivotal clinical trial data, like the PEERLESS study, which could accelerate adoption of their devices and push that 2025 revenue number even higher. You can learn more about the company's long-term vision here: Mission Statement, Vision, & Core Values of Inari Medical, Inc. (NARI).

Profitability Metrics

The core takeaway for Inari Medical, Inc. (NARI) profitability is a significant shift: the company is moving from a near-break-even net loss to projected full-year net profitability in 2025. This turnaround is driven by exceptional gross margins and a focus on achieving operating leverage (reducing operating expenses as a percentage of revenue).

You should focus on two key numbers: the high gross margin, which is a massive competitive advantage, and the expected flip to positive operating income in the first half of 2025. Management has stated their goal is to reach sustained operating profitability in the first half of 2025. That's a clear signal for investors.

Gross, Operating, and Net Profit Margins

Inari Medical, Inc.'s profitability is structurally strong at the top line, but the bottom line is where the major change is expected in 2025. For the full fiscal year 2023, the company reported a stellar gross margin of 88.0% on revenue of $493.6 million. This figure is a hallmark of a premium, high-value medical device company.

Here's the quick math on the expected 2025 performance, based on the latest 2024 revenue guidance and analyst consensus for earnings per share (EPS). We'll use a conservative 18% growth over the high end of the 2024 revenue guidance ($604.5 million) to estimate 2025 revenue at approximately $713.3 million. Analyst consensus projects a profit of roughly $0.25 per share for FY2025.

• Gross Profit Margin: Projected to remain high, around 87.0%, translating to an estimated Gross Profit of about $620.6 million in 2025.
• Operating Profit Margin: Expected to turn positive from a 2023 GAAP Operating Loss of $14.0 million (a -2.84% margin).
• Net Profit Margin: Projected to be around 2.1%, based on the consensus EPS, yielding a Net Profit of approximately $14.8 million in 2025.

What this estimate hides is the wide range of earnings projections for 2025, from a low of $0.05 to a high of $0.89 per share, so defintely watch for updates on operating expense control.

Profitability Trends and Industry Comparison

The trend is clear: Inari Medical, Inc. is trading a small amount of gross margin for significant revenue growth and a push to bottom-line profitability. Their gross margin has remained remarkably consistent, hovering in the high 80s (e.g., 88.0% in 2023 and 87.1% in Q3 2024), even as they scale up and introduce new products like Artix.

This high gross margin is a massive differentiator in the medical device space. The industry average profit margin for Medtech companies is around 22%. Even a comparable medical device company like Varex Imaging reported a full fiscal year 2025 Non-GAAP Gross Margin of 35%. Inari Medical, Inc.'s gross margin is more than double the industry average, which gives them immense flexibility to invest heavily in sales, marketing, and R&D-the operating expenses that have kept them near a loss until now.

The table below shows the stark contrast between their high-quality gross margin and their recent bottom-line performance, highlighting the operational efficiency challenge they are now overcoming:

Operational efficiency is improving as the company gains operating leverage. The goal is to grow revenue faster than operating expenses, allowing that 87% gross margin to finally flow through to a positive operating profit. For a deeper look at who is betting on this turnaround, you can read Exploring Inari Medical, Inc. (NARI) Investor Profile: Who's Buying and Why?

Next Step: Finance should model a sensitivity analysis on the 2025 Net Profit Margin using the full analyst EPS range of $0.05 to $0.89 to understand the full spectrum of potential outcomes.

Debt vs. Equity Structure

The story of Inari Medical, Inc.'s (NARI) financing is one of high-growth equity funding and minimal reliance on traditional debt, right up until the point of its acquisition by Stryker in 2025. This capital structure was a hallmark of its growth phase, but it's now an academic point since the company was delisted after the $4.9 billion all-cash buyout in Q1 2025. [cite: 4, 9, 18 in original thought]

Before the acquisition, Inari Medical, Inc. maintained a very conservative balance sheet, preferring to finance its rapid expansion-and its operating losses-through equity (selling shares) rather than debt. This is typical for a high-growth medical device company that is still scaling and not yet consistently profitable. For instance, as of December 31, 2023, the company's total liabilities stood at $209.325 million against a robust total stockholders' equity of $464.910 million.

Here's the quick math on their leverage just before the 2025 deal:

A Debt-to-Equity (D/E) ratio is a key measure of financial leverage, showing how much debt a company uses to finance its assets relative to the value of its shareholders' equity. For the Surgical and Medical Instruments and Apparatus industry, the median D/E ratio is closer to 0.70:1. [cite: 10 in original thought] Inari Medical, Inc.'s ratio of approximately 0.45:1 clearly showed a much lower leverage profile than its peers. They were defintely not a debt-heavy company.

The company's debt was minimal and primarily comprised of operational liabilities and non-current items like operating lease obligations. There were no significant long-term bonds or credit ratings to track, which is a non-issue now. The biggest debt story of 2025 is actually on the buyer's side: Stryker issued $3 billion in new debt to help fund the $4.9 billion cash purchase of Inari Medical, Inc., a clear example of how debt is used to finance large-scale mergers and acquisitions (M&A). [cite: 4 in original thought, 18 in original thought]

If you're looking for where this growth profile fits into the broader sector, you should check out Exploring Inari Medical, Inc. (NARI) Investor Profile: Who's Buying and Why?. Its history shows a strong preference for equity funding to fuel innovation, a strategy that ultimately delivered a massive return for shareholders via the acquisition.

Liquidity and Solvency

You're looking for a clear picture of Inari Medical, Inc. (NARI)'s ability to meet its near-term obligations, and the quick answer is that its liquidity profile was strong right before its acquisition. The company consistently maintained a healthy cushion of current assets over current liabilities, a key sign of short-term financial stability.

Inari Medical, Inc.'s most recent quarter (MRQ) data showed a Current Ratio of 1.77 and a Quick Ratio (acid-test ratio) of 1.32. Here's the quick math: a Current Ratio of 1.77 means the company had $1.77 in current assets for every dollar of current liabilities. This is defintely solid, especially for a growth-focused medical device company. The Quick Ratio of 1.32 is also excellent, showing that even without selling inventory, Inari Medical, Inc. could cover its short-term debts with liquid assets like cash and accounts receivable. This suggests no immediate liquidity concerns were present.

Working Capital and Balance Sheet Trends

The trend in working capital-the difference between current assets and current liabilities-was robust, reflecting a well-managed balance sheet. Inari Medical, Inc.'s total assets were around $697 million against total liabilities of approximately $262 million as of late 2024, indicating a substantial equity base and strong asset control. This positive working capital position was a key factor in the company's ability to self-fund its aggressive R&D and commercial expansion, including new product launches like Artix and the integration of LimFlow.

The company's management was confident in its ability to self-fund its strategic objectives, even while carrying long-term debt of about $31 million. The strong balance sheet meant they didn't have to scramble for capital, which is a major advantage in the competitive medical device space.

Cash Flow Statement Overview

The cash flow statement tells the real story of a company's financial engine. For Inari Medical, Inc., the trends show a classic growth-company trajectory, transitioning from net losses to expected profitability. While the company posted a net loss of $18.4 million in Q3 2024, it was on a clear path.

Management had repeatedly guided toward reaching sustained operating profitability in the first half of 2025, a crucial inflection point. This shift was supported by strong revenue momentum, with analysts projecting 2025 full-year revenue to hit approximately $708 million. The cash flow per share (TTM) was already positive at $0.24, showing a growing operational cash generation capability.

• Operating Cash Flow: Trending toward positive territory in 2025, driven by revenue growth and expected operating profitability.
• Investing Cash Flow: Likely negative, reflecting necessary capital expenditures (CapEx) and strategic investments to support its high-growth sales and product pipeline.
• Financing Cash Flow: Historically minimal, as the company had a healthy cash balance of $111.6 million at the end of Q3 2024 and was not relying on significant debt or equity raises.

Now, a critical caveat: this strong independent financial health was ultimately validated by its acquisition by Stryker in January 2025 for $4.9 billion. This event fundamentally alters the liquidity picture, moving it from an independent entity with strong ratios to a subsidiary of a much larger, highly solvent corporation. For a deeper dive into the valuation that drove that decision, you should be Exploring Inari Medical, Inc. (NARI) Investor Profile: Who's Buying and Why?

Valuation Analysis

You're looking at Inari Medical, Inc. (NARI) and trying to figure out if it was overvalued or undervalued, but the first thing you need to know is that this is a historical exercise. The company was acquired by Stryker Corporation for $80.00 per share, with the deal closing in the first quarter of 2025, and the stock delisted shortly after. That acquisition price is the final, definitive valuation benchmark for the company.

Still, understanding the pre-acquisition metrics helps you see why Stryker paid what they did. Inari Medical was a classic growth stock, meaning traditional valuation ratios were often negative or extremely high because the company was prioritizing market share and product development over immediate net income. This is defintely a case where you have to look past P/E.

The Pre-Acquisition Valuation Landscape

The company's valuation metrics leading up to the acquisition reflected its high-growth, high-margin medical device profile. Here's the quick math on the key ratios for the 2025 fiscal year, based on the trailing twelve months (TTM) or projections, which tell a story of a company priced for future dominance in the venous thromboembolism (VTE) market.

• Price-to-Earnings (P/E): The TTM P/E ratio was deeply negative, cited around -66.1 as of April 2025. This is because the company was not profitable on a TTM basis, though analysts did project a small profit of roughly $0.25 per share for the full FY2025. You can't use a negative P/E to call a stock overvalued; it just means it's a pre-profit growth story.
• Price-to-Book (P/B): The P/B ratio was high, sitting at approximately 10.8 in late 2025. This suggests investors were paying more than ten times the company's net asset value, betting heavily on the intangible value of its technology and market position.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio was also negative, around -138.50 as of November 2025, again due to negative TTM earnings before interest, taxes, depreciation, and amortization (EBITDA). What this estimate hides is the projected 2025 revenue of $708 million, which is why the Enterprise Value-to-Sales multiple of about 6.5x (based on 2025 estimates) was a more relevant metric for the acquisition.

The final acquisition price of $80.00 per share, which valued the company at approximately $4.9 billion, ultimately proved the market was willing to pay a premium for Inari Medical's growth trajectory and market-leading devices like ClotTriever and FlowTriever.

Stock Performance and Analyst View

The stock price trend over the 12 months leading up to the acquisition was a clear indicator of the company's momentum and the eventual takeover. The stock traded in a wide range, from a 52-week low of about $36.73 to a high of $80.20, with a one-year return of over 49%, reflecting the strong revenue growth and the premium paid by Stryker. The consensus analyst rating in November 2025 was a 'Hold' with an average price target of $76.33, which was slightly below the final acquisition price, showing the market was still catching up to the strategic value of the company.

The dividend yield and payout ratios are simple: Inari Medical is a growth company that has never paid a dividend, so both figures are 0.00%. All capital was reinvested to fund its high-teens-plus growth. For a deeper dive into the company's operational strength before the acquisition, you can read the full analysis at Breaking Down Inari Medical, Inc. (NARI) Financial Health: Key Insights for Investors.

Risk Factors

You're looking at Inari Medical, Inc. (NARI) and seeing the strong revenue growth-projected at about $708 million for the 2025 fiscal year-but what keeps me up at night are the unforced errors and competitive pressures. The company is a market leader in venous thromboembolism (VTE) treatment, but its financial health is still fragile, and there are three clear risks you must factor into your valuation.

The biggest near-term risk is the ongoing Department of Justice (DOJ) investigation. This is a serious regulatory headwind, centered on the company's payments for meals and consulting services provided to healthcare professionals. This kind of probe creates massive legal uncertainty and can lead to significant fines or changes in sales practices that slow down adoption. It's a distraction, and it defintely adds a compliance cost layer to their operating expenses, which were already $147.1 million in Q3 2024.

Operational and Financial Vulnerabilities

Despite the huge total addressable market (TAM) for VTE-estimated at $5.8 billion in the U.S. alone-Inari Medical, Inc. (NARI) is still not consistently profitable. The company's GAAP operating loss was $13.6 million in Q3 2024, a sharp reversal from the prior year. While management expects to hit sustained operating profitability in the first half of 2025, this is a forecast, not a guarantee. The core financial risks are:

• Gross Margin Compression: Gross margin is slipping, forecasted to be around 87% in 2024, down from a historical average of roughly 90%. This drop is due to new product ramp-up costs and changes in their product mix.
• Clinical Trial Outcomes: The success of their devices, like FlowTriever and ClotTriever, relies heavily on data. Disappointing results from pivotal trials-even with positive registry data-could stall physician adoption and hurt the stock.
• High Operating Costs: They are spending heavily to fuel growth, with R&D and SG&A expenses driving a Q3 2024 operating loss. They need to scale efficiently, or that H1 2025 profitability target slips.

Here's the quick math: if the gross margin drops another 200 basis points while operating expenses grow at the Q3 2024 rate of 34% year-over-year, the path to profitability gets much longer. You need to watch that margin number closely.

Competitive and Mitigation Landscape

In the medical device space, competition is a constant threat. While Inari Medical, Inc. (NARI) is the market leader, they face constant pressure from established players and new entrants. The risk of losing market share to competing products is real, and the whole landscape shifts when a major player like Stryker makes a strategic move in the space.

The company is mitigating these risks with a clear strategy focused on innovation and market expansion. They are not standing still. This is crucial.

Their plan is to out-innovate and out-sell the competition. For example, the full commercial release of LimFlow in 2025, which addresses a different venous disease, is expected to unlock a $4.0 billion TAM. This expansion is their hedge against competition in the core VTE market. To understand the players betting on this strategy, you should read Exploring Inari Medical, Inc. (NARI) Investor Profile: Who's Buying and Why?

The key takeaway is that Inari Medical, Inc. (NARI) is a high-growth, high-risk play. The risks are substantial-legal, competitive, and financial-but the potential reward lies in their ability to execute on their H1 2025 profitability goal and successfully launch new products that tap into that huge unmet market need.

Growth Opportunities

You're looking at Inari Medical, Inc. (NARI) and its future, but the most important thing you need to know is that the company's independent growth story is essentially over. Stryker is acquiring Inari Medical, Inc. for $4.9 billion in an all-cash deal, paying $80 per share, a transaction expected to close by the end of the first quarter of 2025. This acquisition is the ultimate validation of their growth trajectory and competitive advantages.

The growth prospects for Inari Medical, Inc. now translate directly into the strategic value Stryker is buying. What made Inari Medical, Inc. worth that premium? It's a combination of a massive, underpenetrated market and a portfolio of innovative, clinically-proven products. Honestly, the company was poised to hit sustained operating profitability in the first half of 2025, which is a huge milestone for a high-growth medical device firm.

The Core Growth Engine: VTE Market Penetration

The primary driver is the venous thromboembolism (VTE) market, which includes deep vein thrombosis (DVT) and pulmonary embolism (PE). This domestic total addressable market (TAM) is estimated at a staggering $5.8 billion annually, and it's currently less than 20% penetrated. That's a lot of runway. Inari Medical, Inc.'s flagship products, the FlowTriever and ClotTriever systems, are the market leaders in mechanical thrombectomy, offering a compelling alternative to older, riskier treatments like clot-dissolving drugs (lysis).

The clinical data is defintely a key competitive advantage. For example, the FLAME trial for the FlowTriever system showed a 90% improvement in survival rates for high-risk PE patients, which is a powerful selling point for doctors. Positive results from ongoing pivotal trials, like PEERLESS, are expected to accelerate adoption even further.

New Frontiers and Revenue Projections

Inari Medical, Inc. was not just relying on its core VTE business. Its strategic initiatives were already expanding its addressable market significantly. The acquisition of LimFlow in 2023, which treats chronic limb-threatening ischemia (CLTI), is a major new growth pillar. This emerging therapy segment is estimated to add over $45 million in revenue by 2025.

Here's the quick math on the near-term revenue. Before the acquisition, analysts projected Inari Medical, Inc.'s full-year 2025 revenue to reach around $708 million. This high-teens growth profile is what made the company so attractive to a major player like Stryker. Plus, international expansion is a clear opportunity, with international sales projected to eventually make up at least 20% of future revenue.

• FlowTriever and ClotTriever: Dominant VTE market position.
• LimFlow Acquisition: Adds CLTI, a new multi-billion dollar market.
• Clinical Data: Trials like FLAME validate superior patient outcomes.
• International Sales: Expected to be at least 20% of future revenue.

The strategic partnerships, while less visible now under the Stryker umbrella, were focused on driving clinical evidence and market access. You can find more detail on their core mission and values here: Mission Statement, Vision, & Core Values of Inari Medical, Inc. (NARI).

What this estimate hides is the integration risk. The real action for investors now is watching how Stryker integrates this fast-growing, innovative business unit to realize the full potential of that $5.8 billion market. The $80 per share price is the concrete next step for current shareholders; for new investors, the focus shifts to Stryker's ability to execute on this growth.