Research Reports

Key takeaways

Revenue was $3.4M (up 122.2% YoY), reflecting initial traction from the U.S. direct-sales launch of CGuard Prime, which carries higher margins than international distributor sales.

Gross profit was $687.0K (up 135.3% YoY) and gross margin was 20.2%, supported by a more favorable U.S. revenue mix despite higher cost of revenues.

Operating income was -$14.0M (down 22.0% YoY), primarily due to increased operating expenses, including higher staffing levels tied to U.S. expansion and clinical development for SwitchGuard NPS and CGuard Prime.

Net income was -$13.7M (down 22.6% YoY), consistent with the increase in operating expenses and the absence of offsetting non-operating gains.

Free cash flow was -$12.5M, calculated as operating cash flow minus $194K in capital expenditures — indicating continued reliance on external funding to sustain operations.

Full analysis

Revenue Growth Driven by U.S. Commercial Launch

Revenue increased to $3.4M in Q1 FY2026 from $1.5M in Q1 FY2025, a 122.2% year-over-year increase. This growth resulted primarily from the U.S. commercial launch of CGuard Prime, which shifted revenue toward direct sales — a channel with higher average selling prices and improved margin contribution compared to international distributor sales.

Gross Profit and Margin Expansion

Operating Loss Widened Amid Strategic Investment

Net Loss and Earnings Per Share

Net income was -$13.7M, down 22.6% YoY, and diluted EPS was -$0.16, an improvement from -$0.22 in the prior year due to share count changes — not profitability. The EPS improvement reflects the denominator effect of warrant exercises and other equity activity, not operational leverage.

NSPR · InspireMD, Inc.