Description

Inspire Medical Launches Project Horizon — $30 Million In Capacity Gets Redeployed!

Inspire Medical Systems reported second quarter 2026 results that were largely impacted by ongoing coding and reimbursement challenges, although some operational areas showed improvement. The company’s revenue declined 7.6% year-over-year to $200.6 million, a downturn driven primarily by disruptions in prior authorization processes and uncertainties in billing codes. Despite the revenue decline, Inspire managed to deliver adjusted operating income and positive cash flow ahead of expectations through disciplined cost management and a favorable product mix shift toward Inspire V systems. Adjusted diluted earnings per share came in at $0.14, while GAAP diluted EPS was $0.01. Regarding reimbursement, recent developments point to increased clarity and gradual normalization. The introduction of C-codes has helped reduce ambiguity in procedural coding, and the Centers for Medicare & Medicaid Services (CMS) has proposed increased facility reimbursement rates for hospital outpatient and ambulatory surgical center settings for 2027, reflecting 12% and 15% increases respectively.