Inspire Medical Systems, Inc. key statistics and ratios

In fiscal 2025, Inspire Medical Systems, Inc. had return on equity of 19.8%, an operating margin of 5.6%, debt equal to 0.0% of equity and a current ratio of 6.08. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Inspire Medical Systems, Inc.: financial ratios, annual
Fiscal year	2016Dec 2016	2017Dec 2017	2018Dec 2018	2019Dec 2019	2020Dec 2020	2021Dec 2021	2022Dec 2022	2023Dec 2023	2024Dec 2024	2025Dec 2025	LTMSept 2026
Gross margin	76.2%	78.9%	80.1%	83.4%	84.7%	85.7%	83.8%	84.5%	84.7%	85.4%	86.2%
Operating margin	−105.0%	−56.0%	−40.3%	−42.5%	−48.7%	−17.1%	−11.7%	−6.4%	4.5%	5.6%	1.8%
Net margin	−112.8%	−61.3%	−43.1%	−40.5%	−49.6%	−18.0%	−11.0%	−3.4%	6.7%	15.9%	11.4%
Free-cash-flow margin	−111.1%	−56.7%	−37.4%	−43.4%	−48.1%	−10.6%	0.6%	0.2%	11.4%	8.6%	11.1%
Return on equity	—	—	−26.4%	−21.9%	−31.0%	−18.3%	−12.4%	−4.0%	8.5%	19.8%	12.5%
Return on assets	—	−69.8%	−19.4%	−17.4%	−24.7%	−14.6%	−10.4%	−3.4%	7.2%	17.0%	10.8%
Asset turnover	—	1.14	0.45	0.43	0.50	0.81	0.95	1.01	1.08	1.06	0.95
Current ratio	—	3.37	17.84	10.12	13.02	6.50	8.66	7.60	7.13	6.08	6.45
Debt to equity	—	>999%	14.9%	17.5%	10.8%	14.7%	0.0%	0.0%	0.0%	0.0%	0.0%
Interest cover (operating income ÷ interest)	n/m	n/m	n/m	n/m	n/m	n/m	n/m	—	—	—	—
Effective tax rate	—	—	—	—	—	—	—	—	8.5%	—	—
R&D as % of revenue	43.2%	21.7%	14.6%	15.6%	22.6%	16.0%	16.8%	18.7%	14.2%	11.3%	11.1%
SG&A as % of revenue	138.1%	113.3%	105.8%	110.3%	110.8%	86.8%	78.6%	72.3%	66.0%	68.5%	73.3%
Capital spending as % of revenue	1.9%	1.4%	0.5%	3.3%	2.1%	2.0%	2.2%	3.8%	4.9%	4.2%	4.2%
Free cash flow ÷ net income	—	—	—	—	—	—	—	—	170.3%	54.0%	97.2%
Dividends and buybacks ÷ free cash flow	—	—	—	—	—	—	0.0%	0.0%	0.0%	223.0%	51.1%

US$ thousands unless shown otherwise. Fiscal quarters.

Inspire Medical Systems, Inc.: financial ratios, quarterly
Quarter	2024 Q4Dec 2024	2025 Q1Mar 2025	2025 Q2Jun 2025	2025 Q3Sept 2025	2025 Q4Dec 2025	2026 Q1Mar 2026	2026 Q2Jun 2026	2026 Q3Sept 2026
Gross margin	85.0%	84.7%	84.0%	85.8%	86.6%	86.5%	85.5%	86.0%
Operating margin	13.3%	−0.7%	−1.5%	4.3%	17.1%	−0.5%	−0.3%	−13.9%
Net margin	14.7%	1.5%	−1.7%	4.4%	50.6%	−5.5%	0.2%	−11.8%
Free-cash-flow margin	25.9%	−7.5%	−2.9%	25.9%	15.5%	1.5%	7.0%	18.8%
Current ratio	7.13	9.01	6.14	5.29	6.08	6.34	8.55	6.45
R&D as % of revenue	12.7%	13.8%	12.1%	10.8%	9.3%	12.6%	12.3%	10.7%
SG&A as % of revenue	59.0%	71.7%	73.5%	70.8%	60.2%	74.4%	73.4%	89.2%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

2 of 2 checks passed · September 30, 2026

What it owns · $953m

Short-term assets $628mLonger-term assets $325m

What it owes, and who funded it · $953m

Short-term liabilities $97mLonger-term liabilities $29mShareholders' equity $827m

Short-term assets cover short-term liabilities $628m of assets due within a year against $97m of liabilities due within a year.
Short-term assets cover long-term liabilities $628m short-term assets against $29m of longer-dated liabilities.
More cash than debt Cash or debt not separately reported. Not assessable.
Debt below 40% of shareholders' equity Equity or debt not reported. Not assessable.
Debt burden no higher than five years ago Five-year comparison not available. Not assessable.
A year's operating cash flow covers at least 20% of debt Cash flow or debt not reported. Not assessable.
Operating profit covers interest at least five times over Interest not separately reported. Not assessable.

From Inspire Medical Systems, Inc.'s latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

39 /100

Weak moat

How hard Inspire Medical Systems's competitive advantage looks for rivals to wear away, judged from 9 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

Returns on capital 0 / 20

Net income has been a median -9.6% of total assets over 9 years.
Pricing power 20 / 20

Gross margin has been a median 84.7%, moving by 1.7 percentage points (standard deviation) across 9 years.
Durability 10 / 20

Operating margin has been a median -14.1%; its worst year was -60.7%.
Cash conversion 4 / 20

Free cash flow was positive in 4 of 9 years, at a median -3.9% of revenue.
Discipline 4 / 20

The diluted share count rose 6.9% over five years; stock-based pay has been a median 12.6% of revenue.

AI disruption exposure: Low. In this industry, the business rests on physical assets, regulated networks or products AI itself depends on.

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

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Figures from Inspire Medical Systems, Inc.'s SEC filings (10-K and 10-Q), retrieved November 2, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Inspire Medical Systems, Inc.