v3.26.1
Segment Reporting and Revenue Disaggregation
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting and Revenue Disaggregation Segment Reporting and Revenue Disaggregation
We operate our business as one operating segment. An operating segment is defined as a component of an enterprise for which separate discrete financial information is available and evaluated regularly by the chief operating decision maker (CODM) in deciding how to allocate resources and in assessing performance. Our CODM is the Company's President, Chief Executive Officer, and Chair of the Board of Directors. Reportable segment information is consistent with how management reviews the business, makes investing and resource allocation decisions and assesses operating performance. Our segment revenues are derived from the sales of our product, the Inspire system, to hospitals and ambulatory surgery centers in the U.S. and in select countries in Europe and the Asia Pacific region. We do not have any intra-entity sales or transfers.
Our CODM uses consolidated earnings (loss) and operating income (loss) as the measures of profit or loss. Our CODM assesses performance for the segment and allocates resources using consolidated earnings (loss) and operating (loss).
Three Months EndedSix Months Ended
June 30,June 30,
2026202520262025
Revenue$200,581 $217,086 $405,164 $418,403 
Less: (a)
Cost of goods sold29,122 34,672 56,793 65,381 
Research and development expense24,698 26,209 50,524 54,012 
Selling, general and administrative expense (excluding advertising expense)128,341 134,806 258,899 258,155 
Advertising expense18,934 24,715 40,580 45,656 
Operating income (loss)(514)(3,316)(1,632)(4,801)
Other income (b)(3,629)(984)(7,144)(6,628)
Income tax expense2,801 1,260 16,492 2,427 
Net earnings (loss)$314 $(3,592)$(10,980)$(600)
(a) The significant expense categories and amounts align with the segment-level information that is regularly provided to our chief operating decision maker.
(b) Other income represents the consolidated amounts for interest and dividend income, net, and other expense, net, as shown on our consolidated statements of operations.
Depreciation and amortization expense was $4.6 million and $3.4 million for the three-month periods ended June 30, 2026 and 2025, respectively, and $9.7 million and $6.5 million for the six-month periods ended June 30, 2026 and 2025, respectively, and is included within the segment expense captions of cost of goods sold, research and development (R&D) expense, and selling, general and administrative (SG&A) expense.
Stock-based compensation expense was $31.2 million and $41.7 million for the three-month periods ended June 30, 2026 and 2025, respectively, and $61.9 million and $72.8 million for the six-month periods ended June 30, 2026 and 2025, respectively, and is included within the segment expense captions of cost of goods sold, R&D expense, and SG&A expense.
Revenue by geographic region is as follows:
Three Months EndedSix Months Ended
June 30,June 30,
2026202520262025
United States$187,304 $207,150 $382,907 $400,756 
International13,277 9,936 22,257 17,647 
Total revenue$200,581 $217,086 $405,164 $418,403 
The measure of segment assets is reported on the balance sheet as total consolidated assets.