InMode Ltd. (NASDAQ: INMD) has authorized a new share repurchase program that could buy back up to approximately 10% of the company’s outstanding shares, or about 6.38 million ordinary shares. The program will be funded with available cash and can be executed at any time in the open market or through other permitted means, subject to market conditions and legal requirements.
The announcement follows a $127.4 million share repurchase in 2025 and comes after InMode reported a strong Q4 2025 earnings beat. Revenue rose to $103.9 million, up 14% from the $90.9 million estimate, driven by robust demand in the aesthetic and medical device segments. Non‑GAAP EPS of $0.46 surpassed the $0.35 consensus by $0.11, a 31% beat, largely due to disciplined cost management and a favorable product mix.
However, the company cautioned that FY2026 guidance will be modest. Revenue guidance for the full year is now $370.5 million, down 6% from $394.8 million in FY2024, reflecting a slowdown in growth and margin compression. Non‑GAAP EPS guidance is $1.60, below the $1.76 reported in FY2025, as management anticipates pricing pressure and higher operating costs.
InMode’s board believes that repurchasing shares at the current valuation represents an attractive use of capital, given the company’s strong cash flow and low debt‑to‑equity ratio. The buyback program is intended to return value to shareholders while preserving flexibility for future investments, and it signals confidence that the stock is undervalued in a challenging macroeconomic environment.
Investors have responded favorably to the announcement, reflecting confidence in the company’s capital allocation strategy and its ability to generate cash. The buyback program is expected to support the share price over the long term by reducing the number of shares outstanding and improving earnings per share.
The new program underscores InMode’s commitment to shareholder returns and its prudent balance‑sheet management. By allocating cash to share repurchases rather than debt or new capital raises, the company maintains a strong financial position while signaling that it views its equity as undervalued.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.