Inogen, Inc.

Q2 total revenue was $95.1 million, up 3% year over year. U.S. sales were $42.3 million, down 2% year over year, while international sales were $41.3 million, up 15% year over year. U.S. rentals were $11.6 million, down 12% year over year. Total gross margin was 45.5% versus 44.8% a year ago, and adjusted gross margin was 45.6% versus 44.9%. Adjusted operating expenses were $44.6 million, up 1.2% year over year. GAAP net loss was $3.9 million versus $4.2 million last year; adjusted net loss improved to less than $0.1 million from $0.7 million; adjusted EBITDA was $2.4 million versus $2.1 million. Operating cash flow was $2.9 million and free cash flow was $1 million; cash, cash equivalents, marketable securities, and restricted cash were $106.8 million, with no debt. For 2026, revenue guidance was lowered to $355 million-$361 million from $366 million-$373 million, while adjusted EBITDA guidance was raised to about $4 million. For Q3, management expects revenue roughly in line with Q3 2025 reported revenue of $92.4 million.

Kevin Smith framed the quarter as evidence that Inogen’s strategy is working, citing 12%+ POC unit growth, 15% international growth, and early momentum in Voxi and Aurora. He said the company is leaning into a broader respiratory-care ecosystem spanning oxygen therapy, sleep therapy, airway clearance, and digital health, while also deepening HME relationships and expanding international distribution. His tone was confident but candid about near-term headwinds, especially the faster-than-expected U.S. channel mix shift and international distributor inventory timing.

Jason Richardson emphasized that revenue growth came from international expansion, favorable FX, and new products, while U.S. sales and rentals reflected ongoing structural channel pressure. He said total gross margin was 45.5% and adjusted gross margin 45.6%, supported by cost improvements and lower warranty expenses, and noted adjusted operating expenses were $44.6 million. He highlighted $2.9 million of operating cash flow, $1 million of free cash flow, $106.8 million of cash and equivalents plus marketable securities and restricted cash, and no debt. He also said the company repurchased over 1.1 million shares for $7.5 million in the first half and continues to view the stock as undervalued while balancing buybacks with growth investment.

Analysts focused on whether DTC is a structural decline, what is driving the better gross margin, how much Voxi and Aurora are contributing, and the status of China and Simeox. Management said DTC is under pressure from a faster-than-expected channel shift, but they still see room for U.S. overall growth in the second half as B2B and new products expand. On margins, Jason pointed to cost-saving initiatives and lower warranty costs, saying gross margin should be stable despite mix pressure. On Simeox, Kevin said U.S. enrollment in IMPACTS-200 is on track, China regulatory progress for Simeox is expected before year-end, and a second trial will be needed for CMS coverage efforts.