Inspire Medical Systems, Inc.
INSP Healthcare Medical Devices
Inspire Medical Systems, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $912.0 million, up 13.6% from fiscal 2024. In the quarter to June 2026, revenue fell 7.60%, EPS grew 108.3% and free cash flow grew 322.8%, each against the same quarter a year earlier. Revenue growth for five consecutive years.
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Inspire Medical Systems, Inc. (INSP) Altman Z-score
Inspire Medical Systems, Inc.'s Altman Z-score for fiscal 2025 is 14.49, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 14.49 | (14.84) |
| FY2024 | 29.33 | (5.89) |
| FY2023 | 35.22 | (27.02) |
| FY2022 | 62.24 | 5.31 |
| FY2021 | 56.93 | 0.10 |
| FY2020 | 56.83 | 31.80 |
| FY2019 | 25.03 | 14.77 |
| FY2018 | 10.26 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.54 | — | 0.64 | |
| Retained earnings / total assets | (0.16) | — | −0.23 | |
| EBIT / total assets | 0.06 | — | 0.19 | |
| Market value of equity / total liabilities | 21.47 | — | 12.88 | |
| Sales / total assets | 1.01 | — | 1.01 | |
| Altman Z-score | Safe zone | 14.49 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 9.88 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| INSP Inspire Medical Systems, Inc. | 14.5× |
| AXGN AxoGen, Inc. compare | 9.2× |
| UFPT UFP Technologies, Inc. compare | 6.9× |
| TMDX TransMedics Group, Inc. compare | 5.3× |
| ESTA Establishment Labs Holdings Inc. compare | 2.7× |
| BFLY Butterfly Network, Inc. compare | 1.6× |
| NEOG Neogen Corporation compare | 1.1× |
| ATEC Alphatec Holdings, Inc. compare | 0.9× |
| NVCR NovoCure Limited compare | 0.4× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets