InMode Ltd. (INMD): History, Ownership, Mission, How It Works & Makes Money

InMode Ltd. (INMD) is a leader in the medical aesthetic device space, but can a company that just reported $93.2 million in Q3 2025 revenue maintain its premium valuation and high 78% gross margins in a tougher market?

You're seeing the stock price volatility, and you need to know if their proprietary radio frequency (RF) technology is truly a sustainable moat, or just a temporary trend in the non-invasive procedure boom.

We will map out exactly how InMode makes money-from the initial hardware sale to the recurring 26% year-over-year growth in consumables and services-so you can decide if their full-year 2025 revenue guidance of $365 million to $375 million is defintely achievable.

InMode Ltd. (INMD) History

InMode Ltd. is a story of second-act success, founded by a team who had already pioneered the aesthetic medical device industry. The company didn't start with venture capital but was built on the deep, specialized experience of its co-founders, who had previously co-founded Syneron Medical Ltd. This pedigree allowed InMode to quickly pivot to developing proprietary Radio-Frequency (RF) technology to fill the gap between non-invasive treatments that lacked efficacy and traditional surgery that required significant downtime.

Given Company's Founding Timeline

Year established

2008

Original location

Yokneam, Israel

Founding team members

• Moshe Mizrahy: Co-founder, Chief Executive Officer, and Chairman of the Board since inception.
• Dr. Michael Kreindel: Co-founder and Chief Technology Officer since inception.

Initial capital/funding

The company was formerly venture-capital-backed, but its first major public funding event was its Initial Public Offering (IPO) in August 2019, which generated gross proceeds of approximately $77.0 million.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's trajectory was defined by a few key decisions that cemented its position as a leader in the minimally invasive aesthetic market. The first major shift was the strategic decision to focus exclusively on Radio-Frequency (RF) energy, which allowed for the development of the BodyTite platform. This technology was a game-changer because it offered surgical-like results-up to 36.4% skin surface area contraction at one year-without the extensive downtime or large scars of traditional surgery.

Another crucial moment was the 2019 IPO, which raised $77.0 million at a price of $14.00 per share, enabling the company to fund its global sales and marketing operations and accelerate research and development. This capital infusion allowed for the rapid expansion of its product ecosystem, including the Morpheus8 platform, which became a household name due to its fractional radiofrequency microneedling capabilities.

Most recently, the financial discipline demonstrated in 2025 is notable. Despite market volatility, InMode maintained an impressive Q2 2025 gross margin of 80% on $95.6 million in revenue. The management's focus on profitability over pure top-line growth, plus the decision to complete a significant share repurchase program in April 2025, returning $127 million to shareholders, shows a mature capital allocation strategy. Looking ahead, the full year 2025 revenue is expected to be in the range of $395 million to $405 million, a clear indicator of its established market presence. You can dive deeper into the strategic framework that guides these decisions by reviewing the Mission Statement, Vision, & Core Values of InMode Ltd. (INMD).

InMode Ltd. (INMD) Ownership Structure

InMode Ltd. is a publicly traded company on the NASDAQ Global Select Market, and its ownership structure is heavily weighted toward institutional investors, which means professional money managers hold the greatest sway over the stock's direction.

This high institutional ownership, which stood at roughly two-thirds of the total shares as of late 2025, means the company's stock price is particularly sensitive to the trading actions and sentiment of large funds like BlackRock, Inc. and Renaissance Technologies Llc.

InMode Ltd.'s Current Status

InMode Ltd. is a publicly traded medical technology company, listed on the NASDAQ under the ticker symbol INMD. The company completed its Initial Public Offering (IPO) on August 8, 2019. Being a public entity means the company is subject to rigorous financial reporting standards set by the Securities and Exchange Commission (SEC), providing investors with transparent access to its financial health and governance structure.

As of November 2025, the company had approximately 63.21 million shares outstanding. You can see how the company's strategic goals are articulated by checking out the Mission Statement, Vision, & Core Values of InMode Ltd. (INMD).

InMode Ltd.'s Ownership Breakdown

The company's ownership is dominated by institutions, with the largest single shareholder, BlackRock, Inc., holding a significant stake. This capital structure is typical for a mature public company, but the level of institutional control is worth noting, as these investors often influence major corporate decisions.

Here's the quick math on the ownership split, based on recent 2025 filings, which shows how the stock is divided among the key stakeholder groups:

InMode Ltd.'s Leadership

InMode is steered by a seasoned management team, with an average tenure of 13.3 years, which is defintely a sign of stability in the medical device sector. Their long tenure suggests a consistent strategic vision, which is crucial when navigating a market that has seen recent weakness, leading to a revised 2025 full-year revenue guidance of $365 million to $375 million.

The core leadership team, which you saw presenting the Q3 2025 results in November, includes:

• Moshe Mizrahy: Co-Founder, Chief Executive Officer (CEO), and Director. He was appointed in January 2008 and is a significant insider shareholder.
• Dr. Michael Kreindel: Co-Founder and Chief Technology Officer (CTO). He drives the proprietary radio frequency technology that forms the basis of the company's product portfolio.
• Yair Malca: Chief Financial Officer (CFO). He is responsible for the financial strategy and reporting, including the 2025 non-GAAP gross margin guidance of 78%-80%.
• Michael Dennison: President of North America. Appointed in November 2025, his role is critical for reenergizing U.S. sales, a key market for the company.

This executive group's stability, combined with the recent strategic hire of a new President of North America, shows a clear focus on disciplined execution to stabilize performance in a complex economic environment.

InMode Ltd. (INMD) Mission and Values

InMode Ltd.'s core purpose centers on pioneering minimally-invasive aesthetic technology, a mission that remains consistent even as the company navigates a challenging market, with full-year 2025 revenue guidance set between $365 million and $375 million. Their values stress innovation and physician partnership, which is defintely the right focus when discretionary spending is tight and you need to prove your capital equipment's ROI.

Given Company's Core Purpose

The company's cultural DNA is built around a commitment to medical innovation, which directly supports the physicians who use their radio-frequency (RF) based platforms. This focus on the provider-patient relationship is what drives their long-term strategy, distinguishing them from competitors who might prioritize volume over clinical excellence.

Official mission statement

InMode Ltd.'s mission is straightforward and ambitious: to create innovative, life-changing technologies that lead the industry in enhancing beauty and well-being. This goes beyond selling a device; it's about enabling patients to become their 'best possible self' in the safest and most effective way possible, which is a critical differentiator in the aesthetic market.

Vision statement

The vision statement clearly positions InMode Ltd. as a partner, not just a vendor. They aim: To be the most innovative partner that physicians rely on to provide cutting-edge procedures that change people's lives. To make this vision real, they operate on four fundamental values:

• Be the most innovative partner that physicians rely on for cutting-edge solutions.
• Deliver the ultimate customer care and support.
• Continue to excel in clinical training and clinical development environment.
• Integrity and excellence in everything we do.

Honestly, this list is their strategic roadmap. You can't be the most reliable partner if you skimp on clinical training or customer support. For a deeper dive into how these values translate to their balance sheet, check out Breaking Down InMode Ltd. (INMD) Financial Health: Key Insights for Investors.

Given Company slogan/tagline

While InMode Ltd. doesn't use a single, universally-marketed slogan in the way a consumer brand might, their core message-the one that drives their marketing to medical professionals-is a clear call to action and a statement of identity: 'Innovate with InMode.' This phrase captures their commitment to developing new, minimally-invasive procedures that leverage their proprietary RF technology, which is the whole game for them.

InMode Ltd. (INMD) How It Works

InMode Ltd. operates by developing and marketing advanced, minimally invasive aesthetic medical platforms that use proprietary radiofrequency (RF) technology to remodel skin, fat, and tissue. The company generates revenue from the initial sale of its capital equipment systems and, critically, from the recurring sales of disposable handpieces and service contracts needed to run the procedures, creating a defintely sticky business model.

Given Company's Product/Service Portfolio

Given Company's Operational Framework

The company's operational process is built on a two-pronged revenue engine: the high-margin sale of capital equipment and the predictable, recurring revenue from consumables. This structure is key to its financial stability.

• Technology Development: InMode focuses on in-house research and development of its core proprietary radiofrequency (RF) and radiofrequency-assisted lipolysis (RFAL) technologies, which are the foundation for all its platforms.
• Manufacturing and Distribution: Devices are manufactured and then distributed globally. The United States remains the largest geographical revenue contributor, with international sales providing diversification.
• Revenue Generation Mix: For the nine months ended September 30, 2025, the company reported total GAAP revenue of approximately $266.8 million. Crucially, the consumables and service revenue for the third quarter of 2025 was $19.9 million, reflecting a strong 26% year-over-year increase, showing the growing dependency on disposables.
• Sales and Training: The company uses a direct sales model in major markets like the U.S. to maintain control over branding and pricing, plus they provide extensive clinical training to ensure proper use and successful patient outcomes.

Here's the quick math: Selling the system once is the big ticket, but the recurring consumable revenue is how they make money year after year. For a deeper dive into who's investing, check out Exploring InMode Ltd. (INMD) Investor Profile: Who's Buying and Why?

Given Company's Strategic Advantages

InMode's success in the aesthetic market isn't just about having a good product; it's about a deliberate set of strategic choices that create a moat around their business.

• Proprietary Technology and Minimally Invasive Focus: Their core strength is the patented RFAL technology, which allows for procedures like BodyTite and FaceTite to deliver near-surgical results with minimal downtime. This positions them in the sweet spot between non-invasive and traditional surgery.
• High Gross Margins: The business model is highly profitable, maintaining an impressive GAAP gross margin of 78% in the third quarter of 2025. This high margin gives them significant capital to reinvest in R&D and international expansion.
• Strong Balance Sheet and Cash Position: As of September 30, 2025, InMode had a total cash position of $532.3 million, including cash and equivalents. A cash hoard like that provides immense flexibility for share repurchases, strategic acquisitions, and weathering macroeconomic uncertainty.
• Razor-and-Blade Model: The recurring revenue from disposable handpieces (the 'blades') locks customers into the platform after the initial capital equipment purchase (the 'razor'), providing a predictable revenue stream that insulates them from some of the volatility of capital equipment sales.

InMode Ltd. (INMD) How It Makes Money

InMode Ltd. generates the vast majority of its revenue by selling its proprietary, minimally invasive, radiofrequency (RF) energy-based aesthetic platforms to plastic surgeons, dermatologists, and other medical professionals. The company's financial model is then reinforced by a high-margin, recurring revenue stream from the sale of single-use consumables and service contracts required to operate these devices.

InMode Ltd.'s Revenue Breakdown

Looking at the third quarter of 2025, which gives us the freshest data, the revenue mix clearly shows the company's reliance on capital equipment sales, but the recurring revenue segment is growing fast. Here's the quick math on the $93.2 million in Q3 2025 revenue.

The core business-selling the platforms-still drives about 78.65% of the top line, but that stream is under pressure, as evidenced by the overall Q3 2025 revenue of $93.2 million being down significantly from the prior year. The Consumables and Service segment, however, is defintely a bright spot, with revenue of $19.9 million in Q3 2025, representing a 26% increase year-over-year. That recurring revenue is what you want to see growing.

Business Economics

InMode Ltd. operates with a fundamentally strong economic model, built on high-priced capital equipment sales followed by a stream of recurring, high-margin consumables. The key to their profitability is that initial sale, which opens the door to a continuous revenue relationship with the customer.

• Exceptional Gross Margins: The company consistently reports a high non-GAAP gross margin, which was 78% in the third quarter of 2025. This is a huge number that indicates superior efficiency in manufacturing and strong pricing power in the aesthetic device market.
• Razor/Razor-Blade Model: This is a classic business strategy. You sell the razor (the platform, like Morpheus8) at a high price, and then you sell the blades (the single-use treatment tips and handpieces) forever. This ensures a predictable, recurring revenue base that smooths out the cyclicality of capital equipment purchases.
• Capital-Light Structure: InMode Ltd. maintains very low capital expenditures (CapEx) relative to its revenue. This means the business doesn't need to sink a ton of cash back into property, plant, and equipment just to grow, which leaves more cash flow for other uses, like share buybacks or maintaining a strong balance sheet.

The high gross margin is the single most important number here.

InMode Ltd.'s Financial Performance

The company's financial health as of late 2025 shows a profitable, cash-rich business navigating a challenging aesthetic market, particularly in the U.S., which is their most profitable region. For a deeper dive into the numbers, you should check out Breaking Down InMode Ltd. (INMD) Financial Health: Key Insights for Investors.

• Full-Year 2025 Revenue Guidance: Management has guided for full-year 2025 revenues to be between $365 million and $375 million, a significant reduction from earlier forecasts, reflecting market weakness.
• Profitability in Q3 2025: Despite the revenue drop, the company posted GAAP net income of $21.9 million for Q3 2025. This demonstrates a strong ability to convert sales into profit even with lower top-line results.
• Cash Position: The balance sheet is rock-solid. As of September 30, 2025, InMode Ltd. held $532.3 million in cash, cash equivalents, marketable securities, and short-term bank deposits, with no debt. This war chest provides a huge cushion for R&D, acquisitions, or share repurchases.

Here's the quick math: Nine-month sales through September 30, 2025, totaled $266.64 million, compared to $296.97 million a year prior, showing the revenue headwind is real. The key action for you is to watch the recurring revenue percentage-if that keeps climbing, the business model is becoming more resilient over time.

InMode Ltd. (INMD) Market Position & Future Outlook

InMode Ltd. is a key player in the high-growth, energy-based aesthetic device market, positioning itself as a leader in minimally invasive Radiofrequency (RF) technology. While the company faces near-term headwinds from U.S. economic uncertainty, its strategic pivot toward international expansion and new medical verticals like women's health is critical to achieving its full-year 2025 revenue guidance of $365 million to $375 million.

Competitive Landscape

The aesthetic device market is highly fragmented, with no single company dominating. InMode competes primarily in the energy-based segment, which is projected to capture approximately 60% of the total aesthetic medical device market by 2025. Its high-margin, minimally-invasive technology gives it a distinct edge against competitors focused on traditional laser or non-energy-based treatments.

Opportunities & Challenges

As a seasoned analyst, I see InMode's future hinging on execution in two key areas: geographic diversification and moving beyond pure aesthetics. Honestly, their cash position-over $540 million in reserves as of November 2025-gives them real flexibility to pursue these moves, plus manage any short-term market dips.

Industry Position

InMode holds a strong, defensible position within the energy-based aesthetic devices sub-segment, largely due to its focus on minimally invasive procedures that bridge the gap between non-invasive treatments and traditional surgery. Their core technology, RFAL, is a significant differentiator.

• The company's non-GAAP gross margin of approximately 80% is a clear signal of pricing power and cost efficiency, well above many competitors.
• InMode is actively leveraging its core RF technology to enter the women's health market, seeking FDA clearances for indications like urinary incontinence and overactive bladder.
• While the company is currently facing a slowdown in its primary U.S. market, it anticipates a rebound in non-U.S. growth to around +23% for 2025, with Europe expected to grow north of 30%.
• A recent legal victory securing a permanent injunction against counterfeit goods strengthens InMode's brand integrity and competitive position.

To fully grasp the financial resilience underpinning this strategy, you should look at Breaking Down InMode Ltd. (INMD) Financial Health: Key Insights for Investors. It's defintely worth the read.