InMode Ltd. has ended its review of potential transaction proposals after its independent transaction committee concluded that none of the offers met the company’s value expectations. The decision was made after a thorough evaluation by the committee, which was formed by the board and worked with external financial and legal advisors.
The committee’s assessment found that the proposals fell short of the company’s valuation expectations and strategic fit. InMode’s board determined that continuing the review would not create additional value for shareholders, so the process was terminated.
The announcement comes on the heels of a strong Q4 2025 earnings report in which InMode beat consensus estimates. EPS of $0.46 surpassed the $0.42 consensus, a beat of $0.04, while revenue reached $103.85 million, exceeding the $101.7 million estimate. The earnings beat was driven by robust demand in international markets, particularly Europe, where revenue grew 38% year‑over‑year to $48.5 million, and by cost discipline that helped maintain a non‑GAAP gross margin of 75‑77%.
For 2026, InMode has guided for adjusted earnings per share of $1.43 to $1.48 and revenue of $365 million to $375 million, below the consensus of $1.64 EPS and $373.9 million revenue. The guidance signals a “stabilization year” as the company faces margin pressure from U.S. tariffs and lower‑margin externally sourced laser products, and it reflects management’s caution about demand in North America, which remains below historical levels.
Management highlighted the challenges and opportunities in its commentary. CEO Moshe Mizrahy said, “While conditions across our industry remain challenging, we are seeing early signs of stabilization.” CFO Yair Malca noted, “European operations achieved record revenue in the fourth quarter, reflecting continued momentum.” The company’s focus remains on organic growth, product innovation, and maintaining a strong cash position of $555.3 million as of December 31, 2025.
By ending the transaction review, InMode signals that it will pursue its own growth strategy rather than seek a strategic sale. The decision underscores the board’s confidence in the company’s long‑term value creation plan and its ability to navigate current market headwinds while capitalizing on international expansion.
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