InMode Reports Second Quarter 2026 Financial Results: Quarterly GAAP Revenues of $95.6 Million, Consistent with the Second Quarter of 2025

YOKNEAM, Israel, Aug. 5, 2026 /PRNewswire/ -- InMode Ltd. (Nasdaq: INMD) ("InMode"), a leading global provider of innovative medical technologies, today announced its consolidated financial results for the second quarter of 2026.

• Quarterly GAAP revenues of $95.6 million, consistent with the second quarter of 2025.

• Quarterly revenues from consumables and service of $22.3 million, an increase of 13% compared to the second quarter of 2025.

• GAAP operating income of $12.3 million and *non-GAAP operating income of $16.0 million.

• Total cash position of $501.1 million as of June 30, 2026, including cash and cash equivalents, marketable securities and short-term bank deposits.

• Completed the repurchase of 6.38 million ordinary shares for an aggregate purchase price of $87.8 million through the previously announced share repurchase program.

(U.S. dollars in thousands, except for per share data)

$95,589

$95,602

75%

80%

13%

24%

$17,064

$26,742

$0.29

$0.42

(U.S. dollars in thousands, except for per share data)

75%

80%

17%

28%

$20,812

$30,139

$0.35

$0.47

*Please refer to "Use of non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A reconciliation between U.S. GAAP and non-GAAP Statement of Income is provided following the financial statements included in this release. Non-GAAP results exclude share-based compensation, expenses related to independent transaction committee review (representing non-recurring cost) and related income tax adjustments where applicable.

"Overall revenue was consistent with the prior-year period, and we saw continued stability in our U.S. capital equipment business, reflecting steady customer demand. This performance is consistent with the stabilization we anticipate will continue through the remainder of the year. We remain focused on investing in opportunities that support long-term growth," said Moshik Itzkovich, Chief Financial Officer of InMode.

Total GAAP revenues for the second quarter of 2026 were $95.6 million, consistent with the second quarter of 2025. Revenue from Asia reached a quarterly record, reflecting continued strength across key markets in the region. Quarterly revenues from consumables and service grew 13% compared to the second quarter of 2025, to $22.3 million, derived primarily from international sales.

GAAP gross margin for the second quarter of 2026 was 75%, compared to 80% for the second quarter of 2025.

*Non-GAAP gross margin for the second quarter of 2026 was 75%, compared to 80% for the second quarter of 2025.

GAAP operating margin for the second quarter of 2026 was 13%, compared to 24% for the second quarter of 2025. *Non-GAAP operating margin for the second quarter of 2026 was 17%, compared to 28% for the second quarter of 2025. These decreases were primarily attributable to higher cost of goods sold, product mix, the restructuring of the North America sales team implemented toward the end of 2025, additional marketing and sales investments to retain talent and maintain market share, and higher general and administrative expenses driven by increased professional services costs. We expect these trends to continue for the foreseeable future.

InMode reported GAAP net income of $17.1 million, or $0.29 per diluted share, in the second quarter of 2026, compared to $26.7 million, or $0.42 per diluted share, in the second quarter of 2025. On a *non-GAAP basis, InMode reported net income of $20.8 million, or $0.35 per diluted share, in the second quarter of 2026, compared to $30.1 million, or $0.47 per diluted share, in the second quarter of 2025.

As of June 30, 2026, InMode had cash and cash equivalents, marketable securities and short-term bank deposits of $501.1 million.

On May 20, 2026, the Company announced the appointment of Dr. Shlomo Nass as its new Chairman of the Company's Board of Directors, effective May 19, 2026. The Company also announced the appointment of Moshe (Moshik) Itzkovich as the Company's new Chief Financial Officer, effective May 19, 2026, while former Chief Financial Officer Yair Malca continues to be engaged with the Company as a consultant.

Management provided an outlook for the full fiscal year ending December 31, 2026. Based on current estimates, management expects:

• Revenues between $365 million and $375 million

• *Non-GAAP gross margin between 74% and 76%

• *Non-GAAP income from operations to be between $68 million and $73 million

• *Non-GAAP earnings per diluted share between $1.29 and $1.34

However, these expectations are based on management's current estimates, which may be updated.

This outlook is not a guarantee of future performance, and shareholders should not rely on such forward-looking statements. See "Forward-Looking Statements" for additional information.

*Please refer to "Use of non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A reconciliation between U.S. GAAP and non-GAAP Statement of Income is provided following the financial statements that are included in this release. Non-GAAP results exclude share-based compensation, expenses related to independent transaction committee review (representing non-recurring cost) and related income tax adjustments where applicable.

As previously announced, while the Company's Special Committee continues its evaluation of unsolicited proposals, the Company will not host an investor conference call or webcast in connection with this earnings release and will not be conducting investor meetings at this time.

The scope and severity of ongoing conflicts in Gaza, Northern Israel, Lebanon, Iran, and the broader region are unpredictable and could escalate at any time. To date, our operations have not been materially affected. We continue to monitor political and military developments closely and examine the consequences for our operations and assets.

In addition to InMode's operating results presented in accordance with GAAP, this release contains certain non-GAAP financial measures including non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating margin, non-GAAP gross margin and non-GAAP income from operations. Because these measures are used in InMode's internal analysis of financial and operating performance, management believes they provide investors with greater transparency into its view of InMode's economic performance. Management also believes the presentation of these measures, when analyzed in conjunction with InMode's GAAP operating results, allows investors to more effectively evaluate and compare InMode's performance to that of its peers, although InMode's presentation of its non-GAAP measures may not be strictly comparable to the similarly titled measures of other companies. Schedules reconciling each of these non-GAAP financial measures are provided as a supplement to this release. Reconciliations of non-GAAP gross margin, non-GAAP income from operations, and non-GAAP earnings per diluted share for management's projections of such non-GAAP financials for the 2026 fiscal year are not available without unreasonable effort due to the variability, complexity and limited visibility of certain reconciling items. These reconciling items could have a significant and unpredictable impact on our future GAAP results.

InMode is a leading global provider of innovative medical technologies. InMode develops, manufactures, and markets devices harnessing novel radio frequency ("RF") technology. InMode strives to enable emerging surgical procedures as well as improve existing treatments. InMode has leveraged its medically accepted minimally invasive RF technologies to offer a comprehensive line of products across several categories for plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology. For more information about InMode, please visit www.inmodemd.com.

The information in this press release includes forward-looking statements within the meaning of the federal securities laws. These statements generally relate to future events or InMode's future financial or operating performance, including the actual amount of share repurchases made by the Company, if any. Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. In some cases, you can identify these statements because they contain words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will," "would" and similar expressions that concern our expectations, strategic plans or intentions. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Consequently, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in InMode's Annual Report on Form 20-F filed with the Securities and Exchange Commission on February 10, 2026, and our subsequent public filings. InMode undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which pertain only as of the date of this press release.

Company Contact: Moshik Itzkovich Chief Financial Officer Email: [email protected]

Investor Relations Contact: Miri Segal MS-IR LLC Email: [email protected]

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(U.S. dollars in thousands, except for per share data)

(Unaudited)

95,589

95,602

177,606

173,476

24,073

19,152

44,538

36,115

Research and development

3,656

3,372

7,198

6,267

Sales and marketing

50,818

47,474

93,750

87,201

General and administrative

4,785

2,723

9,807

5,394

Finance income, net

7,432

8,062

11,728

14,921

2,625

4,201

5,415

8,477

Basic

0.29

0.42

0.47

0.68

Diluted

0.29

0.42

0.46

0.68

Basic

58,903

63,252

61,140

65,982

Diluted

59,378

63,637

61,717

66,540

CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands, except for per share data)

(Unaudited)

Cash and cash equivalents

396,173

302,543

Marketable securities

18,995

83,632

Short-term bank deposits

85,947

169,159

Accounts receivable, net of allowance for credit losses

44,555

43,504

Prepaid expenses and other receivables

32,664

25,733

Inventories

71,661

74,050

649,995

698,621

Accounts receivable, net of allowance for credit losses

5,686

3,005

Deferred income tax assets

52,629

53,230

Operating lease right-of-use assets

8,693

8,274

Property and equipment, net

2,628

2,599

Other investments

700

700

70,336

67,808

Accounts payables

18,792

17,912

Contract liabilities

15,452

12,093

Other liabilities

45,193

40,739

79,437

70,744

Contract liabilities

2,484

3,043

Other liabilities

4,825

4,436

Operating lease liabilities

4,451

5,008

11,760

12,487

91,197

83,231

629,134

683,198

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands, except for per share data)

(Unaudited)

Net income

17,064

26,742

28,626

44,943

Adjustments required to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

179

191

354

365

Share-based compensation expenses

3,708

3,418

6,407

5,936

Change in allowance for credit losses of trade receivable

719

147

1,244

53

Loss on marketable securities, net

–

5

–

3

Finance expenses (income), net

388

(313)

1,107

(1,887)

Deferred income taxes

295

566

622

1,462

Changes in operating assets and liabilities:

Decrease (increase) in accounts receivable (current and non-current)

(5,046)

(3,285)

(4,974)

1,259

Decrease (increase) in other receivables

(1,164)

1,276

(7,030)

(2,256)

Decrease (increase) in inventories

(253)

(4,329)

2,389

(8,562)

Increase in accounts payable

1,939

2,430

880

3,700

Increase (decrease) in other liabilities (current and non-current)

4,400

127

4,012

(3,160)

Increase (decrease) in contract liabilities (current and non-current)

(1,178)

(2,903)

2,800

(3,740)

Net cash provided by operating activities

21,051

24,072

36,437

38,116

Investment in short-term deposits

(85,000)

(25,000)

(169,912)

(25,000)

Proceeds from short-term deposits

84,912

55,000

252,570

86,297

Purchase of fixed assets

(211)

(219)

(383)

(304)

Purchase of marketable securities

–

-

(9,727)

(20,877)

Proceeds from sale of marketable securities

–

-

–

3,003

Proceeds from maturity of marketable securities

37,983

41,875

74,239

104,022

Net cash provided by investing activities

37,684

71,656

146,787

147,141

Tax withholding related to vesting of restricted share units

-

-

(1,802)

-

Repurchase of ordinary shares

(56,511)

(27,484)

(87,752)

(127,444)

Exercise of options

19

505

636

999

Net cash used in financing activities

(56,492)

(26,979)

(88,918)

(126,445)

(365)

1,540

(676)

2,096

1,878

70,289

93,630

60,908

394,295

145,948

302,543

155,329

396,173

216,237

396,173

216,237

CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS

(U.S. dollars in thousands, except for per share data)

(Unaudited)

Capital Equipment revenues - United States

43,084

45%

40,653

42%

76,753

43%

70,195

40%

Capital Equipment revenues - International

30,194

32%

35,133

37%

57,179

32%

63,266

37%

Consumables and service revenues

22,311

23%

19,816

21%

43,674

25%

40,015

23%

United States

International

United States

International

United States

International

United States

International

Minimal-Invasive

71

73

73

82

73

77

82

81

Hands-Free

1

2

4

2

1

1

3

2

Non-Invasive

28

25

23

16

26

22

15

17

100

100

100

100

100

100

100

100

RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF

INCOME TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(U.S. dollars in thousands, except for per share data)

(Unaudited)

95,589

–

95,589

95,602

–

95,602

24,073

(302)

23,771

19,152

(334)

18,818

Research and development

3,656

(282)

3,374

3,372

(287)

3,085

Sales and marketing

50,818

(2,525)

48,293

47,474

(2,529)

44,945

General and administrative

4,785

(599)

4,186

2,723

(268)

2,455

Finance income, net

7,432

–

7,432

8,062

-

8,062

2,625

(40)

2,585

4,201

21

4,222

Basic

0.29

0.35

0.42

0.48

Diluted

0.29

0.35

0.42

0.47

Basic

58,903

58,903

63,252

63,252

Diluted

59,378

60,174

63,637

64,537

177,606

–

–

177,606

173,476

-

173,476

44,538

(616)

–

43,922

36,115

(644)

35,471

Research and development

7,198

(550)

–

6,648

6,267

(509)

5,758

Sales and marketing

93,750

(4,386)

–

89,364

87,201

(4,292)

82,909

General and administrative

9,807

(855)

(1,262)

7,690

5,394

(491)

4,903

Finance income, net

11,728

–

–

11,728

14,921

-

14,921

5,415

(389)

–

5,026

8,477

(655)

7,822

Basic

0.47

0.60

0.68

0.78

Diluted

0.46

0.59

0.68

0.77

Basic

61,140

61,140

65,982

65,982

Diluted

61,717

62,324

66,540

67,052