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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended
June 30,
2025
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period From
to
Commission file number:
001-36309
INOGEN, INC.
(Exact name of registrant as specified in its charter)
Delaware
33-0989359
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
859 Ward Drive
Goleta
,
CA
93111
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code:
(805)
562-0500
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading
Symbol(s)
Name of each exchange on which registered
Common Stock, $0.001 par value
INGN
The NASDAQ Stock Market LLC
(NASDAQ Global Select Market)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes
☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes
☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☐
Accelerated filer
☒
Non-accelerated filer
☐
Smaller reporting company
☒
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
☒
As of August 1, 2025, the registrant had
27,040,390
shares of common stock, par value $0.001, outstanding.
(amounts in thousands, except share and per share amounts)
June 30,
2025
December 31,
2024
Assets
Current assets
Cash and cash equivalents
$
103,685
$
113,795
Marketable securities
18,745
—
Restricted cash
1,272
3,620
Accounts receivable, net
38,592
29,563
Inventories, net
24,313
24,812
Income tax receivable
—
538
Prepaid expenses and other current assets
16,514
13,123
Total current assets
203,121
185,451
Property and equipment, net
40,171
44,400
Goodwill
10,700
9,465
Intangible assets, net
33,359
30,493
Operating lease right-of-use asset
17,982
18,295
Other assets
6,707
8,081
Total assets
$
312,040
$
296,185
Liabilities and stockholders' equity
Current liabilities
Accounts payable and accrued expenses
$
35,144
$
27,153
Accrued payroll
12,847
17,189
Warranty reserve - current
9,739
9,736
Operating lease liability - current
3,082
2,812
Earnout liability
—
13,000
Deferred revenue - current
6,256
6,654
Income tax payable
—
142
Total current liabilities
67,068
76,686
Long-term liabilities
Warranty reserve - noncurrent
16,985
16,350
Operating lease liability - noncurrent
15,955
16,594
Deferred revenue - noncurrent
4,591
5,747
Deferred tax liability
7,950
6,948
Total liabilities
112,549
122,325
Commitments and contingencies (Note 9)
Stockholders' equity
Common stock, $
0.001
par value per share;
200,000,000
shares authorized;
27,040,390
and
23,902,338
shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively
27
24
Additional paid-in capital
359,740
328,174
Accumulated deficit
(
163,163
)
(
152,837
)
Accumulated other comprehensive income (loss)
2,887
(
1,501
)
Total stockholders' equity
199,491
173,860
Total liabilities and stockholders' equity
$
312,040
$
296,185
See accompanying condensed notes to the consolidated financial statements.
3
Inogen, Inc.
Consolidated S
tatements of Comprehensive Loss
(unaudited)
(amounts in thousands, except share and per share amounts)
Three months ended
June 30,
Six months ended
June 30,
2025
2024
2025
2024
Revenue
Sales revenue
$
79,172
$
74,425
$
147,642
$
137,520
Rental revenue
13,105
14,340
26,915
29,270
Total revenue
92,277
88,765
174,557
166,790
Cost of revenue
Cost of sales revenue
43,469
38,320
81,552
73,564
Cost of rental revenue, including depreciation of $
3,017
and $
3,128
, for the three months ended and $
6,051
and $
6,307
for the six months ended, respectively
7,467
7,708
15,292
16,118
Total cost of revenue
50,936
46,028
96,844
89,682
Gross profit
Gross profit-sales revenue
35,703
36,105
66,090
63,956
Gross profit-rental revenue
5,638
6,632
11,623
13,152
Total gross profit
41,341
42,737
77,713
77,108
Operating expense
Research and development
5,209
5,616
9,243
12,194
Sales and marketing
25,390
25,617
49,147
52,553
General and administrative
16,871
18,568
33,108
35,699
Total operating expense
47,470
49,801
91,498
100,446
Loss from operations
(
6,129
)
(
7,064
)
(
13,785
)
(
23,338
)
Other income (expense)
Interest income, net
1,123
1,333
2,152
2,736
Other income, net
701
134
1,057
277
Total other income, net
1,824
1,467
3,209
3,013
Loss before benefit for income taxes
(
4,305
)
(
5,597
)
(
10,576
)
(
20,325
)
Benefit for income taxes
(
153
)
(
7
)
(
250
)
(
157
)
Net loss
(
4,152
)
(
5,590
)
(
10,326
)
(
20,168
)
Other comprehensive income (loss), net of tax
Change in foreign currency translation adjustment
3,926
(
286
)
5,781
(
1,321
)
Change in net unrealized gains (losses) on foreign currency hedging
36
—
(
696
)
—
Less: reclassification adjustment for net losses included in net loss
(
606
)
—
(
739
)
—
Total net change in unrealized losses on foreign currency hedging
(
570
)
—
(
1,435
)
—
Change in net unrealized gains (losses) on marketable securities
42
(
40
)
42
(
42
)
Total other comprehensive income (loss), net of tax
3,398
(
326
)
4,388
(
1,363
)
Comprehensive loss
$
(
754
)
$
(
5,916
)
$
(
5,938
)
$
(
21,531
)
Basic net loss per share attributable to common stockholders (Note 6)
$
(
0.15
)
$
(
0.24
)
$
(
0.40
)
$
(
0.86
)
Diluted net loss per share attributable to common stockholders (Note 6)
$
(
0.15
)
$
(
0.24
)
$
(
0.40
)
$
(
0.86
)
Weighted average number of shares used in calculating net loss per share attributable to common stockholders:
Basic shares of common stock
26,962,465
23,614,970
26,068,421
23,508,284
Diluted shares of common stock
26,962,465
23,614,970
26,068,421
23,508,284
See accompanying condensed notes to the consolidated financial statements.
4
Inogen, Inc.
Consolidated S
tatements of Stockholders’ Equity
(unaudited)
(amounts in thousands, except share amounts)
Three months ended June 30, 2025 and June 30, 2024
Accumulated
Additional
other
Total
Common stock
paid-in
Accumulated
comprehensive
stockholders'
Shares
Amount
capital
deficit
income (loss)
equity
Balance, March 31, 2024
23,546,478
$
24
$
323,213
$
(
131,527
)
$
188
$
191,898
Stock-based compensation
—
—
1,814
—
—
1,814
Stock issued
200,642
—
—
—
—
—
Tax withholding related to vesting of restricted stock units
(
28,346
)
—
(
201
)
—
—
(
201
)
Net loss
—
—
—
(
5,590
)
—
(
5,590
)
Other comprehensive loss
—
—
—
—
(
326
)
(
326
)
Balance, June 30, 2024
23,718,774
$
24
$
324,826
$
(
137,117
)
$
(
138
)
$
187,595
Balance, March 31, 2025
26,887,242
$
27
$
357,447
$
(
159,011
)
$
(
511
)
$
197,952
Stock-based compensation
—
—
2,293
—
—
2,293
Stock issued
153,148
—
—
—
—
—
Net loss
—
—
—
(
4,152
)
—
(
4,152
)
Other comprehensive income
—
—
—
—
3,398
3,398
Balance, June 30, 2025
27,040,390
$
27
$
359,740
$
(
163,163
)
$
2,887
$
199,491
Six months ended June 30, 2025 and June 30, 2024
Accumulated
Additional
other
Total
Common stock
paid-in
Accumulated
comprehensive
stockholders'
Shares
Amount
capital
deficit
income (loss)
equity
Balance, December 31, 2023
23,324,750
$
23
$
320,513
$
(
116,949
)
$
1,225
$
204,812
Stock-based compensation
—
—
4,230
—
—
4,230
Stock issued
434,569
1
369
—
—
370
Tax withholding related to vesting of restricted stock units
(
40,545
)
—
(
286
)
—
—
(
286
)
Net loss
—
—
—
(
20,168
)
—
(
20,168
)
Other comprehensive loss
—
—
—
—
(
1,363
)
(
1,363
)
Balance, June 30, 2024
23,718,774
$
24
$
324,826
$
(
137,117
)
$
(
138
)
$
187,595
Balance, December 31, 2024
23,902,338
$
24
$
328,174
$
(
152,837
)
$
(
1,501
)
$
173,860
Stock-based compensation
—
—
4,440
—
—
4,440
Stock issued
580,003
—
489
—
—
489
Tax withholding related to vesting of restricted stock units
(
68,376
)
—
(
570
)
—
—
(
570
)
Issuance of common stock from securities purchase agreement
2,626,425
3
27,207
—
—
27,210
Net loss
—
—
—
(
10,326
)
—
(
10,326
)
Other comprehensive income
—
—
—
—
4,388
4,388
Balance, June 30, 2025
27,040,390
$
27
$
359,740
$
(
163,163
)
$
2,887
$
199,491
See accompanying condensed notes to the consolidated financial statements.
5
Inogen, Inc.
Consolidated S
tatements of Cash Flows
(unaudited)
(amounts in thousands)
Six months ended
June 30,
2025
2024
Cash flows from operating activities
Net loss
$
(
10,326
)
$
(
20,168
)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization
10,405
10,610
Loss on rental units and other assets
1,655
2,158
Gain on sale of former rental assets
—
(
63
)
Provision for sales revenue returns and doubtful accounts
3,248
4,615
Provision for inventory losses
447
74
Loss on purchase commitments
267
(
68
)
Stock-based compensation expense
4,440
4,230
Deferred income taxes
80
(
223
)
Change in fair value of earnout liability
—
1,180
Changes in operating assets and liabilities:
Accounts receivable
(
11,037
)
1,405
Inventories
(
23
)
(
2,731
)
Income tax receivable
—
(
389
)
Prepaid expenses and other current assets
(
2,609
)
1,423
Operating lease right-of-use asset
1,687
372
Other noncurrent assets
861
236
Accounts payable and accrued expenses
5,612
(
3,350
)
Accrued payroll
(
4,526
)
2,703
Warranty reserve
638
2,178
Deferred revenue
(
1,554
)
(
1,756
)
Income tax payable
(
135
)
(
27
)
Operating lease liability
(
1,748
)
(
469
)
Earnout liability
(
9,822
)
—
Net cash provided by (used in) operating activities
(
12,440
)
1,940
Cash flows from investing activities
Purchases of available-for-sale securities
(
18,703
)
(
32,330
)
Maturities of available-for-sale securities
—
15,500
Investment in intangible assets
—
(
2,090
)
Investment in property and equipment
(
976
)
(
1,360
)
Production and purchase of rental equipment
(
4,932
)
(
5,651
)
Proceeds from sale of former assets
—
111
Net cash used in investing activities
(
24,611
)
(
25,820
)
(continued on next page)
See accompanying condensed notes to the consolidated financial statements.
6
Inogen, Inc.
Consolidated Statements of Cash Flows (continued)
(unaudited)
(amounts in thousands)
Six months ended
June 30,
2025
2024
Cash flows from financing activities
Proceeds from employee stock purchases
489
370
Payment of employment taxes related to release of restricted stock
(
570
)
(
286
)
Payments of accrued earnout
(
3,178
)
—
Proceeds from issuance of common stock from securities purchase agreement
27,210
—
Net cash provided by financing activities
23,951
84
Effect of exchange rates on cash
642
(
217
)
Net decrease in cash, cash equivalents and restricted cash
(
12,458
)
(
24,013
)
Cash, cash equivalents and restricted cash, beginning of period
117,415
125,492
Cash, cash equivalents and restricted cash, end of period
$
104,957
$
101,479
Supplemental disclosures of cash flow information
Cash paid during the period for income taxes, net of refunds received
$
482
$
484
Supplemental disclosure of non-cash transactions
Property and equipment in accounts payable and accrued expenses
360
181
See accompanying condensed notes to the consolidated financial statements.
7
Inogen, Inc.
Condens
ed Notes to the Consolidated Financial Statements
(unaudited)
(amounts in thousands, except share and per share amounts)
1. Business overview
Inogen, Inc., or the Company, is a medical technology business that primarily focuses on respiratory health. The Company develops, manufactures, and markets innovative respiratory health products, including portable oxygen concentrators, or POCs, used to deliver supplemental long-term oxygen therapy to patients suffering from chronic respiratory conditions and the Simeox
®
product for airway clearance treatment. The Company's proprietary Inogen One
®
and Inogen Rove
®
systems concentrate the air around the patient to offer a source of supplemental oxygen 24 hours a day, seven days a week with a battery and can be plugged into an outlet when at home, in a car, or in a public place with outlets available. While often used concomitantly with stationary oxygen concentrators and oxygen compressed gas tanks, the Company's POCs are designed to reduce the patient’s reliance on stationary concentrators and scheduled deliveries of tanks with a finite supply of oxygen, thereby improving patient quality of life and fostering mobility. The Company's Simeox product is a technology-enabled airway clearance and mucus management device predominantly aimed at serving patients with bronchiectasis, which is a condition that presents as the lung's bronchi are damaged and widened in patients with cystic fibrosis, chronic obstructive pulmonary disease, or other chronic respiratory diseases.
The Company was incorporated in Delaware on November 27, 2001. On February 14, 2014, the Company completed an initial public offering of common stock and began trading on the Nasdaq Global Select Market, trading under the ticker symbol “INGN”.
The Company incorporated Inogen Europe Holding B.V., a Dutch limited liability company, on
April 13, 2017
. On May 4, 2017, Inogen Europe Holding B.V. acquired all issued and outstanding capital stock of MedSupport Systems B.V., or MedSupport, and began operating under the name Inogen Europe B.V. The Company merged Inogen Europe Holding B.V. and Inogen Europe B.V. on December 28, 2018. Inogen Europe B.V. is the remaining legal entity. The Company completed the acquisition of New Aera, Inc., or New Aera, on August 9, 2019. On
September 14, 2023
, the Company completed the acquisition of all of the issued and outstanding capital stock of Physio-Assist SAS, or Physio-Assist, and its wholly-owned subsidiary PhysioAssist GmbH.
On January 25, 2025, the Company entered into a Strategic Collaboration Agreement, or the Collaboration Agreement, with Jiangsu Yuyue Medical Equipment & Supply Co., Ltd., or Yuwell. The collaboration with Yuwell is expected to broaden the Company's product portfolio through distribution of certain respiratory products in the United States and select other territories, expand and enhance the Company's innovation pipeline through research and development collaboration, and accelerate the entry of the Company's brand into the Chinese market. Pursuant to the Collaboration Agreement, the Company has agreed to distribute certain products supplied by Yuwell in the United States and specified
countries and Yuwell has agreed to distribute certain products supplied by the Company in specified Asia Pacific countries.
2
. Basis of presentation and summary of significant accounting policies
Basis of presentation
The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP.
The results of operations for the three and six months ended June 30, 2025 shown in this report are not necessarily indicative of results to be expected for the full year ending December 31, 2025
. In the opinion of the Company’s management, the information contained herein reflects all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the Company’s results of operations, financial position, cash flows, and stockholders’ equity. Certain footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to Securities and Exchange Commission, or SEC, rules and regulations relating to interim financial statements. The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 28, 2025. Except as further described below, there have been no significant changes in the Company’s accounting policies from those disclosed in its Annual Report on Form 10-K filed with the SEC on February 28, 2025.
Basis of consolidation
The consolidated financial statements include the accounts of Inogen, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated.
8
Accounting estimates
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases these estimates and assumptions upon historical experience, existing and known circumstances, authoritative accounting pronouncements and other factors that management believes to be reasonable. Significant areas requiring the use of management estimates relate to revenue recognition, warranty reserves and expense, determining the stand-alone selling price, or SSP, and service period of performance obligations, rental asset valuations and write-downs, accounts receivable allowances for bad debts, returns and adjustments, impairment of goodwill, impairment of long-lived assets, stock-based compensation expense, income taxes, fair value of acquired intangible assets and goodwill, and financing receivable. Actual results could differ from these estimates.
3. Fair value measurements
Cash, cash equivalents, marketable securities and restricted cash
The following table summarizes fair value measurements by level for the assets measured at fair value on a recurring basis for cash, cash equivalents, marketable securities and restricted cash:
As of June 30, 2025
Gross
unrealized
Cash
Adjusted
gains
and cash
Marketable
Restricted
cost
(losses)
Fair value
equivalents
securities
cash
Cash
$
23,699
$
—
$
23,699
$
23,699
$
—
$
—
Level 1:
Money market accounts
55,564
—
55,564
54,292
—
1,272
Level 2:
Corporate bonds
8,747
(
6
)
8,741
—
8,741
—
U.S. Treasury securities
9,956
48
10,004
—
10,004
—
Institutional Insured Liquidity Deposit Savings
25,694
—
25,694
25,694
—
—
Total
$
123,660
$
42
$
123,702
$
103,685
$
18,745
$
1,272
As of December 31, 2024
Gross
Cash
Adjusted
unrealized
and cash
Restricted
cost
gains
Fair value
equivalents
cash
Cash
$
23,053
$
—
$
23,053
$
23,053
$
—
Level 1:
Money market accounts
72,129
—
72,129
68,509
3,620
Level 2:
Institutional Insured Liquidity Deposit Savings
22,233
—
22,233
22,233
—
Total
$
117,415
$
—
$
117,415
$
113,795
$
3,620
The following table summarizes the estimated fair value of the Company's investments in marketable securities, classified by the contractual maturity date of the securities:
June 30,
2025
Due within one year
$
17,207
Due in one year through five years
1,538
Total
$
18,745
9
Derivative instruments and hedging activities
The Company records the assets or liabilities associated with derivative instruments and hedging activities at fair value based on Level 2 inputs in other current assets or other current liabilities, respectively, in the consolidated balance sheets. The Company had a related payable of $
2,820
and a receivable of $
351
as of
June 30, 2025 and December 31, 2024, respectively.
Accumulated other comprehensive income (loss)
The components of accumulated other comprehensive income (loss) were as follows:
Foreign
Unrealized
Unrealized
Accumulated
currency
gains
losses
other
translation
on marketable
on cash
comprehensive
adjustments
securities
flow hedges
income (loss)
Balance as of December 31, 2024
$
(
1,501
)
$
—
$
—
$
(
1,501
)
Other comprehensive income (loss)
5,781
42
(
1,435
)
4,388
Balance as of June 30, 2025
$
4,280
$
42
$
(
1,435
)
$
2,887
Comprehensive income (loss) is the total net earnings and all other non-owner changes in equity. Except for net loss and unrealized gains and losses on cash flow hedges, the Company does not have any transactions or other economic events that qualify as comprehensive income (loss).
Earnout liability
The Company had obligations to pay up to $
13,000
in an earnout payment related to the Physio-Assist acquisition in cash if certain future regulatory results were met. Such regulatory results were met with the clearance of the Simeox product on December 23, 2024, and the payment of accrued earnouts was made during the first quarter of 2025.
The reconciliation of the earnout liability measured and carried at fair value on a recurring basis is as follows:
Balance as of December 31, 2024
$
13,000
Payments of accrued earnouts
(
13,000
)
Balance as of June 30, 2025
$
—
4. Balance sheet components
Restricted Cash
The Company's restricted cash is a legally restricted deposit held as a compensating balance against its corporate credit card balances.
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Company's consolidated balance sheet that are shown in aggregate in the accompanying consolidated statement of cash flows:
June 30,
June 30,
December 31,
December 31,
2025
2024
2024
2023
Cash and cash equivalents
$
103,685
$
97,920
$
113,795
$
125,492
Restricted cash
1,272
3,559
3,620
—
Total cash, cash equivalents and restricted cash
$
104,957
$
101,479
$
117,415
$
125,492
10
Accounts receivable and allowance for bad debts, returns, and adjustments
Net accounts receivable (gross accounts receivable, net of allowances) balance concentrations by major category as of
June 30, 2025 and December 31, 2024 were as follows:
June 30,
December 31,
Net accounts receivable
2025
2024
Rental
(1)
$
5,462
$
4,863
Business-to-business and other receivables
33,130
24,700
Total net accounts receivable
$
38,592
$
29,563
(1)
Rental includes Medicare, Medicaid/other government, private insurance, and patient pay.
The following table sets forth the accounts receivable allowances as of
June 30, 2025 and December 31, 2024:
June 30,
December 31,
Allowances - accounts receivable
2025
2024
Doubtful accounts
$
86
$
458
Sales returns
555
413
Total allowances - accounts receivable
$
641
$
871
Concentration of customers and vendors
The Company primarily sells its products to traditional home medical equipment providers, distributors, and resellers in the United States and in foreign countries on a credit basis. The Company also sells its products direct-to-consumers primarily on a prepayment basis.
One
single customer represented more than 10% of the Company's total revenue for the three and six months ended June 30, 2025.
Two
single customers represented more than 10% of the Company’s net accounts receivable balance with net accounts receivable balances of $
4,470
and $
4,362
as of
June 30, 2025
, respectively. One single customer represented more than 10% of the Company's net accounts receivable balance with a net accounts receivable balance of $
3,288
as of
December 31, 2024.
The Company also rents products directly to consumers for insurance reimbursement, which resulted in a customer concentration relating to Medicare’s service reimbursement programs. Medicare’s service reimbursement programs accounted for
59.0
% and
57.7
% of rental revenue in the
six months ended June 30, 2025 and 2024
, respectively, and accounted for
9.1
% and
10.1
% of total revenue for the
six months ended June 30, 2025 and 2024
, respectively. Accounts receivable balances relating to Medicare’s service reimbursement programs (including held and unbilled, net of allowances) amounted to $
1,409
, or
3.7
%, of total net accounts receivable as of
June 30, 2025
compared to $
1,107
, or
4.8
%, of total net accounts receivable as of
December 31, 2024.
The Company currently purchases raw materials from a limited number of vendors, which resulted in a concentration of three major vendors. The three major vendors supply the Company with raw materials used to manufacture the Company’s products. For the six months ended June 30, 2025
, the Company’s three major vendors accounted for
17.4
%,
11.0
%, and
9.8
%, respectively, of total raw material purchases. For the
six months ended June 30, 2024
, the Company’s three major vendors accounted for
20.8
%,
19.1
%, and
10.7
%, respectively, of total raw material purchases.
A portion of revenue is earned from sales outside the United States. Approximately
76.0
% and
79.4
% of the non-U.S. revenue for the
three months ended June 30, 2025 and 2024
, respectively, were invoiced in Euros. Approximately
77.4
% and
79.6
% of the non-U.S. revenue for the
six months ended June 30, 2025 and 2024, respectively, were invoiced in Euros. A breakdown of the Company’s revenue from U.S. and non-U.S. sources for the three and six months ended June 30, 2025 and 2024, respectively, is as follows:
Three months ended
June 30,
Six months ended
June 30,
2025
2024
2025
2024
U.S. revenue
$
56,354
$
58,234
$
106,649
$
110,224
Non-U.S. revenue
35,923
30,531
67,908
56,566
Total revenue
$
92,277
$
88,765
$
174,557
$
166,790
11
Inventories
Inventories are stated at the lower of cost and net realizable value, using the first-in, first-out, or FIFO, method. The Company records adjustments to inventory for potentially excess, obsolete, slow-moving or impaired items, and losses on firm purchase commitments as a component of cost of sales in the consolidated statements of comprehensive loss. The Company recorded noncurrent inventory related to inventories that are expected to be realized or consumed after one year of $
770
and $
1,291
as of
June 30, 2025 and December 31, 2024, respectively. Noncurrent inventories are primarily related to raw materials purchased in bulk to support long-term expected repairs to reduce costs and are classified in other assets. During the six months ended June 30, 2025 and 2024
, $
847
and $
416
, respectively, of inventory was transferred to rental equipment and was considered a noncash transaction in the production and purchase of rental equipment on the consolidated statements of cash flows.
Inventories that are considered current consist of the following:
June 30,
December 31,
2025
2024
Raw materials and work-in-progress
$
14,962
$
19,224
Finished goods
11,599
7,633
Less: reserves
(
2,248
)
(
2,045
)
Inventories, net
$
24,313
$
24,812
Property and equipment
Expenditures for additions, improvements and replacements are capitalized and depreciated to a salvage value of $
0
. Repair and maintenance costs on rental equipment are included in cost of rental revenue on the consolidated statements of comprehensive loss. Repair and maintenance expense, which includes labor, parts, and freight, for rental equipment was $
1,660
and $
1,441
for the
three months ended June 30, 2025 and 2024
, respectively, and $
3,498
and $
3,201
for the
six months ended June 30, 2025 and 2024, respectively.
Depreciation and amortization expense related to rental equipment and other property and equipment are summarized below for the
three and six months ended June 30, 2025 and 2024, respectively.
Three months ended
June 30,
Six months ended
June 30,
2025
2024
2025
2024
Rental equipment
$
3,017
$
3,128
$
6,051
$
6,307
Other property and equipment
990
1,029
2,006
2,183
Total depreciation and amortization
$
4,007
$
4,157
$
8,057
$
8,490
Property and equipment and rental equipment with associated accumulated depreciation is summarized below as of
June 30, 2025 and December 31, 2024, respectively.
June 30,
December 31,
Property and equipment
2025
2024
Rental equipment, net of allowances of $
3,614
and $
3,744
, respectively
$
62,559
$
64,012
Other property and equipment
24,741
25,123
Property and equipment
87,300
89,135
Accumulated depreciation
Rental equipment
32,823
32,294
Other property and equipment
14,306
12,441
Accumulated depreciation
47,129
44,735
Property and equipment, net
Rental equipment, net of allowances of $
3,614
and $
3,744
, respectively
29,736
31,718
Other property and equipment
10,435
12,682
Property and equipment, net
$
40,171
$
44,400
Long-lived assets
The Company accounts for the impairment and disposition of long-lived assets in accordance with Accounting Standards Codification, or ASC, 360
—
Property, Plant, and Equipment
. Long-lived assets are reviewed for indicators of impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
No
impairments were recorded for the
six months ended June 30, 2025 and 2024.
12
Goodwill and other identifiable intangible assets
Goodwill
The changes in the carrying amount of goodwill for the
six months ended June 30, 2025 were as follows:
Balance as of December 31, 2024
(1)
$
9,465
Translation adjustment
1,235
Balance as of June 30, 2025
(1)
$
10,700
(1)
Includes $
32,894
of accumulated impairment losses as of
June 30, 2025
and December 31, 2024.
Intangible assets
Intangible assets as of June 30, 2025 and December 31, 2024 consisted of the following:
Average
estimated
Gross
useful lives
carrying
Accumulated
June 30, 2025
(in years)
amount
amortization
Net amount
Developed technology
10
$
35,432
$
6,348
$
29,084
Licenses
10
159
159
—
Patents and websites
5
3,775
3,768
7
Customer relationships
4
-
10
3,164
1,723
1,441
Trade name
4
219
98
121
Commercials
3
494
364
130
Internally developed software
3
3,707
1,131
2,576
Total
$
46,950
$
13,591
$
33,359
Average
estimated
Gross
useful lives
carrying
Accumulated
December 31, 2024
(in years)
amount
amortization
Net amount
Developed technology
10
$
31,342
$
4,048
$
27,294
Licenses
10
159
159
—
Patents and websites
5
3,776
3,752
24
Customer relationships
4
-
10
2,799
1,447
1,352
Trade name
4
194
63
131
Commercials
3
494
282
212
Internally developed software
3
2,090
610
1,480
Total
$
40,854
$
10,361
$
30,493
Annual estimated amortization expense for each of the succeeding fiscal years is as follows:
June 30,
2025
Remaining 6 months of 2025
$
3,885
2026
4,932
2027
4,207
2028
3,756
2029
3,719
2030
3,440
Thereafter
9,420
Total
$
33,359
13
Current liabilities
Accounts payable and accrued expenses as of
June 30, 2025 and December 31, 2024 consisted of the following:
June 30,
December 31,
2025
2024
Accounts payable
$
21,900
$
16,616
Accrued inventory (in-transit and unvouchered receipts) and trade payables
7,044
6,917
Accrued loss on purchase commitments
904
672
Forward contract payable
2,820
—
Other accrued expenses
2,476
2,948
Total accounts payable and accrued expenses
$
35,144
$
27,153
Accrued payroll as of
June 30, 2025 and December 31, 2024 consisted of the following:
June 30,
December 31,
2025
2024
Accrued bonuses
$
3,075
$
6,370
Accrued wages and other payroll related items
4,748
5,570
Accrued vacation
4,113
3,456
Accrued severance
512
1,429
Accrued employee stock purchase plan deductions
399
364
Total accrued payroll
$
12,847
$
17,189
5. Leases
The Company has entered into operating leases primarily for commercial buildings. These leases have terms that range from
three years
to
11 years
,
some of which include
options to
extend
the leases for up to
five years
.
Rent expense, including short-term lease cost, was $
954
and $
1,136
for the
three months ended June 30, 2025 and 2024
, respectively, and $
1,916
and $
2,210
for the
six months ended June 30, 2025 and 2024, respectively.
In July 2023, the Company entered into an Assignment and Assumption of Lease Agreement in which a third party, referred to as the Assignee, assumed the rights, title, and interest in the lease, including assumption of lease payments. Commencing February 1, 2024 and ending May 31, 2031, the Assignee assumed responsibility for the monthly lease payments. Notwithstanding the Assignee's assumption of lease payments, the Company remains the primary obligor under the lease to the landlord.
Lease payments assumed by the Assignee are:
Payments due in the 12-month period ending June 30,
2026
$
1,136
2027
1,136
2028
1,136
2029
1,136
2030
1,136
Thereafter
1,041
Total
$
6,721
14
Information related to the Company's right-of-use assets and related operating lease liabilities were as follows:
Six months ended
June 30,
2025
2024
Cash paid for operating lease liabilities
$
1,902
$
2,290
Operating lease cost
1,859
2,163
Non-cash right-of-use assets obtained in exchange for new operating lease obligations
1,327
1,566
Weighted-average remaining lease term
3.6
years
2.7
years
Weighted-average discount rate
6.6
%
4.9
%
Maturities of lease liabilities due in the 12-month period ending June 30,
2026
$
3,629
2027
3,924
2028
3,650
2029
3,322
2030
3,306
Thereafter
2,904
20,735
Less imputed interest
(
1,698
)
Total lease liabilities
$
19,037
Operating lease liability - current
$
3,082
Operating lease liability - noncurrent
15,955
Total lease liabilities
$
19,037
6. Loss per share
Loss per share, or EPS, is computed in accordance with ASC 260
—Earnings per Share
and is calculated using the weighted-average number of shares of common stock outstanding during each period. Diluted EPS assumes the conversion, exercise or issuance of all potential common stock equivalents (which can include dilution of outstanding stock options and restricted stock units) unless the effect is to reduce a loss or increase the income per share. For purposes of this calculation, common stock subject to repurchase by the Company, options, and other dilutive awards are considered to be common stock equivalents and are only included in the calculation of diluted loss per share when their effect is dilutive.
Basic loss per share is calculated using the Company's weighted-average outstanding shares of common stock. Diluted loss per share is calculated using the Company's weighted-average outstanding shares of common stock including the dilutive effect of stock awards as determined under the treasury stock method.
15
The computation of EPS is as follows:
Three months ended
June 30,
Six months ended
June 30,
2025
2024
2025
2024
Numerator—basic and diluted:
Net loss
$
(
4,152
)
$
(
5,590
)
$
(
10,326
)
$
(
20,168
)
Denominator:
Weighted average shares of common stock - basic common stock
(1)
26,962,465
23,614,970
26,068,421
23,508,284
Weighted average shares of common stock - diluted common stock
26,962,465
23,614,970
26,068,421
23,508,284
Net loss per share - basic common stock
$
(
0.15
)
$
(
0.24
)
$
(
0.40
)
$
(
0.86
)
Net loss per share - diluted common stock
(2)
$
(
0.15
)
$
(
0.24
)
$
(
0.40
)
$
(
0.86
)
Denominator calculation from basic to diluted:
Weighted average shares of common stock - basic common stock
(1)
26,962,465
23,614,970
26,068,421
23,508,284
Stock options and other dilutive awards
335,216
499,441
541,262
412,687
Weighted average shares of common stock - diluted common stock
27,297,681
24,114,411
26,609,683
23,920,971
Shares excluded from diluted weighted average shares:
Restricted stock units
1,257,265
522,167
500,695
539,894
(1)
Unvested restricted stock units are not included as shares outstanding in the calculation of basic earnings per share. Vested restricted stock units are included in basic earnings per share if all vesting and performance criteria have been met. Performance-based restricted stock units are included in the number of shares used to calculate diluted earnings per share as long as all applicable performance criteria are met, and their effect is dilutive.
(2)
Due to net losses for the three and six months ended June 30, 2025 and June 30, 2024
, diluted loss per share is the same as basic loss per share.
7. Income taxes
The Company accounts for income taxes in accordance with ASC 740
— Income Taxes
. Under ASC 740, income taxes are recognized for the amount of taxes payable or refundable for the current period and deferred tax liabilities and assets are recognized for the future tax consequences of transactions that have been recognized in the Company’s consolidated financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided when it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. As of December 31, 2024, the Company recorded a full valuation allowance of $
66,533
. As of
June 30, 2025, the Company continued to record a valuation allowance against its domestic and certain foreign deferred tax assets.
The Company accounts for uncertainties in income tax in accordance with ASC 740-10
— Accounting for Uncertainty in Income Taxes
. ASC 740-10 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This accounting standard also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition.
The Company recognizes interest and penalties on taxes, within its income tax provision on its consolidated statements of comprehensive loss.
8. Stockholders’ equity
The Company has a 2014 Equity Incentive Plan, or the 2014 Plan, under which the Company granted restricted stock units, restricted stock awards, performance units, performance shares, and options to purchase shares of its common stock. As of June 30, 2025, awards with respect to
116,596
s
hares of the Company’s common stock were outstanding under the 2014 Plan.
The Company has an Amended and Restated 2023 Equity Incentive Plan, or the 2023 Plan, that provides for the grant of incentive stock options, within the meaning of Section 422 of the Internal Revenue Code, to the Company’s employees and any parent and subsidiary corporation’s employees, and for the grant of nonstatutory stock options, restricted stock, restricted stock units, restricted stock awards, stock appreciation rights, performance units and performance shares to its employees, directors and consultants and its parent and subsidiary corporations’ employees and consultants.
16
As of June 30, 2025
, awards with respect to
3,007,333
shares of the Company's common stock were outstanding, and
1,160,824
shares of common stock remained available for issuance under the 2023 Plan. The shares available for issuance under the 2023 Plan will be increased by any shares returned to the 2014 Plan as a result of expiration or termination of awards.
The Company previously granted restricted stock units to induce an employee to accept employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4). As of June 30, 2025, awards with respect to
125,000
shares of the Company's common stock were outstanding pursuant to such inducement grant.
Securities purchase agreement
On January 25, 2025, the Company entered into a Securities Purchase Agreement, or the Purchase Agreement, with Yuwell (Hong Kong) Holdings Limited, or the Investor, a wholly-owned subsidiary of Yuwell, pursuant to which the Investor purchased
2,626,425
shares of the Company’s common stock at a price per share of $
10.36
, for an aggregate purchase price of approximately $
27,210
, or the Private Placement. The closing of the Private Placement took place on February 21, 2025.
Stock incentive awards
The Company grants restricted stock units, or RSUs, under the 2014 and 2023 Plans and made one inducement grant of RSUs in 2024. RSUs vest either based solely on the satisfaction of time-based service conditions or on the satisfaction of time-based service conditions combined with performance criteria. RSUs are subject to forfeiture if the holder’s services to the Company terminate before vesting.
RSUs granted with only time-based service vesting conditions generally vest over
three-year
service periods, as defined in the terms of each award. RSUs that vest based on the satisfaction of time-based service conditions combined with performance criteria generally vest over a
three-year
service and performance period, based on performance and/or market conditions established at the time of the award. The portion of the RSU award that is earned may equal or be more or less than the targeted number of shares subject to the RSU award depending on whether the performance criteria are met.
RSU
activity for the
six months ended June 30, 2025 is summarized below:
Weighted-
average
grant
Performance
date fair
and
value
Restricted stock units
Time-based
time-based
Total
per share
Unvested restricted stock units as of December 31, 2024
1,203,383
601,194
1,804,577
$
8.61
Granted
926,671
822,308
1,748,979
9.19
Vested
(
394,503
)
(
118,100
)
(
512,603
)
10.12
Forfeited/canceled
(
93,060
)
(
110,118
)
(
203,178
)
9.99
Unvested restricted stock units as of June 30, 2025
(1)
1,642,491
1,195,284
2,837,775
$
8.52
Unvested and expected to vest restricted stock units outstanding as of
June 30, 2025
1,999,895
$
8.41
(1)
Outstanding RSUs are based on the maximum payout of the targeted number of shares.
As of June 30, 2025
, the unrecognized compensation cost related to unvested employee restricted stock units was $
13,299
, excluding estimated forfeitures. This amount is expected to be recognized over a weighted average period of
2.1
years.
Employee stock purchase plan
The Company’s 2014 Employee Stock Purchase Plan, or ESPP, provides all eligible employees the option to purchase shares of the Company’s common stock at a discount through payroll deductions. As of June 30, 2025, a total of
695,428
shares of common stock were available for future purchase under the ESPP. In the first quarter of
2025
, an additional
179,069
shares of common stock were reserved for issuance pursuant to future ESPP purchases
as a result of the annual evergreen increase under the ESPP.
Stock-based compensation
Stock-based compensation expense recognized for the
three and six months ended June 30, 2025 and 2024, was as follows:
17
Three months ended
Six months ended
June 30,
June 30,
2025
2024
2025
2024
Stock-based compensation expense by type of award:
Restricted stock units
$
2,205
$
1,696
$
4,213
$
4,005
Employee stock purchase plan
88
118
227
225
Total stock-based compensation expense
$
2,293
$
1,814
$
4,440
$
4,230
S
tock-based compensation expense was calculated based on awards of restricted stock units expected to vest based on the Company’s historical award cancellations. ASC 718 –
Compensation-Stock Compensation
requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.
For the
three and six months ended June 30, 2025 and 2024, respectively, stock-based compensation expense recognized under ASC 718, included in cost of revenue, research and development expense, sales and marketing expense, and general and administrative expense was as follows:
Three months ended
Six months ended
June 30,
June 30,
2025
2024
2025
2024
Cost of revenue
$
129
$
145
$
296
$
325
Research and development
69
(
75
)
164
385
Sales and marketing
186
428
400
858
General and administrative
1,909
1,316
3,580
2,662
Total stock-based compensation expense
$
2,293
$
1,814
$
4,440
$
4,230
9. Commitments and contingencies
Purchase obligations
The Company had approximately $
60,900
of outstanding purchase orders due within one year with its outside vendors and suppliers as of
June 30, 2025
. The Company has $
904
and $
672
accrued within accounts payable and other accrued expenses in the consolidated balance sheet as of
June 30, 2025 and December 31, 2024, respectively, related to estimated losses for firm commitment contractual obligations under these agreements. Losses on these firm commitment contractual obligations are recognized based upon the terms of the respective agreement and similar factors considered for the write-down of inventory, including expected sales requirements as determined by internal sales forecasts.
Warranty obligation
The following table identifies the changes in the Company’s aggregate product warranty liabilities for the six-month and 12-month periods ended
June 30, 2025 and December 31, 2024, respectively:
June 30,
December 31,
2025
2024
Product warranty liability at beginning of period
$
26,086
$
23,478
Accruals for warranties issued
6,610
12,076
Adjustments related to preexisting warranties (including changes in estimates)
(
1,477
)
280
Settlements made (in cash or in kind)
(
4,495
)
(
9,748
)
Product warranty liability at end of period
$
26,724
$
26,086
Contract liabilities
Contract liabilities primarily consist of deferred revenue related to lifetime warranties on direct-to-consumer sales revenue when cash payments are received in advance of services performed under the contract. The contract with the customer states the final terms of the sale, including the description, quantity, and price of each product or service purchase. The decrease in deferred revenue related to lifetime warranties for the six months ended June 30, 2025
was primarily driven by $
2,214
of revenue recognized that were included in the deferred revenue balances as of
December 31, 2024
, partially offset by $
679
of payments received in advance of satisfying performance obligations. Deferred revenue related to lifetime warranties was $
8,388
and $
9,922
as of
June 30, 2025 and December 31, 2024, respectively, and is classified within deferred revenue - current and noncurrent deferred revenue - noncurrent in the consolidated balance sheets.
18
Legislation and HIPAA
The healthcare industry is subject to numerous laws and regulations of federal, state, and local governments. These laws and regulations include, but are not necessarily limited to, matters such as licensure, accreditation, government healthcare program participation requirements, reimbursement for patient services, and Medicare and Medicaid fraud and abuse. Compliance with government laws and regulations can be subject to future government review and interpretation as well as regulatory actions unknown or unasserted at this time. The Health Insurance Portability and Accountability Act of 1996, or HIPAA, was enacted to ensure health insurance portability, reduce healthcare fraud and abuse, guarantee security and privacy of health information, and enforce standards for health information. The Health Information Technology for Economic and Clinical Health Act, or the HITECH Act, in part, imposes notification requirements of certain security breaches relating to protected health information. The Company is not aware of any pending claims against it under the HIPAA and HITECH regulations that are applicable to the Company’s business.
Legal proceedings
The Company is party to various legal proceedings and investigations arising in the normal course of business. The Company carries insurance, subject to specified deductibles under the policies, to protect against losses from certain types of legal claims. At this time, the Company does not anticipate that any of these other proceedings arising in the normal course of business will have a material adverse effect on the Company’s business. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources, and other factors.
10. Foreign currency exchange contracts and hedging
As of June 30, 2025 and June 30, 2024
, the Company’s total non-designated and designated derivative contracts had notional amounts totaling approximately $
18,266
and $
12,923
, respectively, and $
38,804
and $
0
, respectively. These contracts were comprised of offsetting contracts with the same counterparty, each expires within
one
to
seven months
. During the
six months ended June 30, 2025 and 2024
, these contracts had, net of tax, an unrealized loss of $
1,435
and an unrealized gain or (loss) of $
0
, respectively.
The nonperformance risk of the Company and the counterparty did not have a material impact on the fair value of the derivatives. During the six months ended June 30, 2025
, there were
no
ineffective portions relating to these hedges and the hedges remained effective through their respective settlement dates. During the
six months ended June 30, 2024
, there were
no
ineffective portions related to these hedges. As of
June 30, 2025
, the Company had
six
designated hedges and
two
non-designated hedges. As of
June 30, 2024
, the Company had
no
designated hedges and
three
non-designated hedges
.
11. Segments
Operating segments are defined as components of an enterprise engaging in business activities for which separate financial information is available that is regularly evaluated by the Group’s chief operating decision makers, or CODM. Based on the criteria established by ASC 280
Segment Reporting
, the Company’s CODM has been identified as the executive leadership team, or ELT, which includes the
Chief Executive Officer
and the Chief Financial Officer. The ELT reviews a monthly executive reporting package based on consolidated results of the Company when making decisions about allocating resources and assessing performance. The Company derives revenues from customers through the development, manufacturing, marketing, sales, and rental of respiratory products. The Company considered the following when assessing its segment determination: the similar nature of the Company’s products and services that are included together in the oxygen therapy and respiratory care markets; the consistent production processes used to manufacture the Company’s products; the same channels used to distribute and sell the Company’s products; and the products align and qualify as respiratory durable medical equipment per the regulatory definition. Therefore, the Company determined that it operates and reports in only one operating and reportable segment. The CODM assesses performance for the one operating and reportable segment and decides how to allocate resources based on the segment profit or loss measure and adjusted EBITDA. The measure of segment assets is reported on the balance sheet as “total assets.”
The CODM determined that the Company’s segment profit or loss measure that is most consistent with GAAP measurement principles is net loss to evaluate income and loss generated from segment assets (return on assets).
Net Loss for the Company’s
one
operating and reportable segment is reported on the consolidated statements of comprehensive loss. The Company evaluated the monthly executive reporting package and did not identify any significant or other expenses for disclosure that are not already presented on the consolidated statements of comprehensive loss.
12. Subsequent events
On July 4, 2025, the
One Big Beautiful Bill Act
(“OBBBA”) was enacted into law. OBBBA provides for significant U.S. tax law changes and modifications. The Company is currently evaluating the potential effects of the new legislation. No adjustments have been made to the consolidated financial statements as of and for the period ended June 30, 2025, in relation to this legislation.
19
Item 2: Manage
ment’s Discussion and Analysis of Financial Condition and Results of Operations
Forward
-
Looking Statements
The following discussion and analysis of the financial condition and results of our operations should be in conjunction with the consolidated financial statements and related notes elsewhere in this Quarterly Report on Form 10-Q. This discussion contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, that are based on our management’s beliefs and assumptions and on information currently available to our management. The forward-looking statements are contained principally in this Management’s Discussion and Analysis of Financial Condition and Results of Operations and in the section entitled “Risk Factors” of our Annual Report on Form 10-K and our subsequently filed Quarterly Reports on Form 10-Q filed with the SEC. Forward-looking statements include, but are not limited to, statements concerning the following:
•
information concerning our possible or assumed future cash flows, revenue, sources of revenue, results of operations, and operating and other expenses;
•
the impact of expense inflation on the components we use in our products, and the impact of inflation of the ability of our customers to afford our products;
•
the potential for future supply chain constraints;
•
our assessment and expectations regarding reimbursement rates, future rounds of competitive bidding, Centers for Medicare and Medicaid Services changes to Home Use of Oxygen national coverage determination and how those changes are implemented, and future changes in rental revenue;
•
our ability to develop new products, improve our existing products, and increase the value of our products;
•
our expectations regarding the timing of new products and product improvement launches as well as product features and specifications;
•
our expectations with respect to our cost reduction initiatives;
•
our expectations regarding regulatory approvals and government and third-party payor coverage and reimbursement;
•
the ability of our competitors to introduce products to the market that may be lower priced than ours, may have more product features than ours, or are otherwise more accepted by the market, including our home medical equipment providers;
•
our ability to attract key talent to the Company, and to retain key employees;
•
our ability to efficiently integrate Physio-Assist and our ability to obtain reimbursement coverage and payment for the Physio-Assist products in the U.S.;
•
expectations with respect to market share, unit sales, business strategies, financing plans, expansion of our business, competitive position, industry environment, and potential growth opportunities;
•
our expectations regarding the market size, market growth, and the growth potential for our business;
•
our ability to grow our business and enter new markets;
•
our expectations regarding the average selling prices and manufacturing costs of our products and our ongoing efforts to reduce average unit costs for our systems;
•
our expectations regarding the productivity of our sales and marketing teams;
•
our expectations with respect to our European and U.S. facilities and our expectations with respect to our contract manufacturer in Europe;
•
our expectations, and changing regulations regarding tariffs that are or may be imposed by the U.S. on certain imported materials and products;
•
our ability to successfully acquire and integrate companies and assets;
•
our expectations regarding the impact and implementation of trade regulations on our supply chain;
•
our expectations of future accounting pronouncements or changes in our accounting policies;
•
our internal control environment;
20
•
the effects of seasonal trends on our results of operations and estimated hiring plans; and
•
our expectation that our existing capital resources and the cash to be generated from expected product sales and rentals will be sufficient to meet our projected operating and investing requirements for at least the next 12 months.
Forward-looking statements include statements that are not historical facts and can be identified by terms such as “anticipates,” “believes,” “could,” “seeks,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “will,” “would,” or similar expressions and the negatives of those terms.
Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. We discuss these risks in greater detail in the sections entitled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q, and our Annual Report on Form 10-K filed with the SEC on February 28, 2025. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this Quarterly Report on Form 10-Q may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.
The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
This Quarterly Report on Form 10-Q also contains estimates, projections and other information concerning our industry, our business, and the markets for certain diseases, including data regarding the estimated size of those markets, and the incidence and prevalence of certain medical conditions. Information that is based on estimates, forecasts, projections, market research, or similar methodologies is inherently subject to uncertainties and actual events, or circumstances may differ materially from events and circumstances reflected in this information. Unless otherwise expressly stated, we obtained this industry, business, market, and other data from reports, research surveys, studies, and similar data prepared by market research firms and other third parties, industry, medical and general publications, government data and similar sources.
21
“Inogen,” “Inogen One,” “Inogen One G3,” “G4,” “G5,” “Oxygen.Anytime.Anywhere,” “Intelligent Delivery Technology,” “Inogen At Home,” “Inogen Rove,” and the Inogen design, are registered trademarks with the United States Patent and Trademark Office of Inogen, Inc. We own pending applications for the marks “AURORA,” “Rove,” “Inogen Rove 4,” “Inogen Rove 6,” and “VOXI” with the United States Patent and Trademark Office. We own trademark registrations for the mark “Inogen” in Argentina, Australia, Bermuda, Canada, Chile, China, Columbia, Ecuador, Hong Kong, South Korea, Malaysia, Mexico, Europe (European Union Registration), the United Kingdom, Iceland, India, Indonesia, Israel, Japan, Kuwait, New Zealand, Norway, Dominican Republic, Paraguay, Peru, Philippines, Turkey, Singapore, South Africa, Switzerland, the UAE, Uruguay, and Vietnam. We own a pending application for the mark “Inogen” in Thailand. We own a trademark registration for the mark “イノジェン” in Japan. We own trademark registrations for the marks “印诺真”
and “艾诺根” in China. We own trademark registrations for the mark “Inogen One” in Australia, Canada, China, South Korea, Mexico, Europe (European Union Registration), and the United Kingdom. We own a trademark registration for the mark “Satellite Conserver” in Canada. We own trademark registrations for the mark “Inogen At Home” in Europe (European Union Registration) and the United Kingdom. We own trademark registrations for the mark “G4” in Europe (European Union Registration) and the United Kingdom. We own trademark registrations for the marks “Inogen Rove 4” and “Inogen Rove 6” in Europe (European Union Registration) and the United Kingdom. We own trademark registrations for the mark “G5” in Europe (European Union Registration) and the United Kingdom. We own pending applications for the marks “Inogen Rove 4” and “Inogen Rove 6” in Canada. We own trademark registrations for the mark “Rove” in Australia, China, Colombia, Europe (European Union Registration), Indonesia, Mexico, and the United Kingdom. We own pending applications for the mark “Rove” in Argentina, Brazil, Canada, India, South Korea, and Saudi Arabia. We own trademark registrations for the mark “Inogen Rove” in Australia, China, Colombia, Europe (European Union Registration), Indonesia, Mexico, and the United Kingdom. We own pending applications for the mark “Inogen Rove” in Argentina, Brazil, Canada, India, South Korea, and Saudi Arabia. We own trademark registrations for the Inogen design in Bolivia and China. We own a trademark registration for the mark “إنوجن” in Saudi Arabia. We own a pending application for the Inogen One G5 design in Brazil. We own a pending application for “Inogen Simeox” in China. We own a trademark registration for the mark “VOXI” in Europe (European Union Registration). Other service marks, trademarks, and trade names referred to in this Quarterly Report on Form 10-Q are the property of their respective owners. “PHYSIOASSIST,” the Physio-Assist logo, “SIMEOX,” and the Pissenlit logo are registered trademarks of Inogen’s wholly-owned subsidiary Physio-Assist. Physio-Assist owns trademark registrations for the mark “PHYSIOASSIST” in Europe (European Union Registration), France, Japan, United Kingdom, and USA. Physio-Assist owns trademark registrations for the Physio-Assist logo in China, Europe (European Union Registration), France, Japan, South Korea, United Kingdom, and USA. Physio-Assist owns trademark registrations for the mark “SIMEOX” in Europe (European Union Registration), France, Japan, Russia, United Kingdom, and USA. Physio-Assist owns pending applications for the mark “SIMEOX” in Argentina, Canada, Colombia, Mexico, Norway, and Switzerland. Physio-Assist owns a trademark registration for the Pissenlit logo in France.
In this Quarterly Report on Form 10-Q, “the Company,” “we,” “us,” and “our” refer to Inogen, Inc. and its subsidiaries.
The following discussion of our financial condition and results of operations should be read together with our consolidated financial statements and the accompanying condensed notes to those statements included elsewhere in this document. In addition, you should refer to our audited consolidated financial statements and notes thereto and related Management’s Discussion and Analysis of Financial Condition and Results of Operations appearing in our Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on February 28, 2025.
Critical accounting policies and estimates
Our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets and liabilities and related disclosure of contingent assets and liabilities, revenue and expenses at the date of the financial statements. Generally, we base our estimates on historical experience and on various other assumptions in accordance with U.S. GAAP that we believe to be reasonable under the circumstances. Actual results may differ from these estimates and such differences could be material to the financial position and results of operations.
Critical accounting policies and estimates are those that we consider the most important to the portrayal of our financial condition and results of operations because they require our most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Our critical accounting policies and estimates include those related to:
•
revenue recognition; and
•
acquisitions and related acquired intangible assets and goodwill.
There have been no material changes in our critical accounting policies and estimates in the preparation of our consolidated financial statements during the three and six months ended June 30, 2025 compared to those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on February 28, 2025.
22
Recent accounting pronouncements
Information about recently adopted and proposed accounting pronouncements, if applicable, is included in
Note 2
to our consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q under the heading “Recent Accounting Pronouncements” and is incorporated herein by reference.
Macroeconomic environment
While we have worked to improve our global supply chain, challenges and potential disruptions still exist. We have experienced, and may continue to experience, increases in cost and limited availability of certain raw materials, components, and other inputs necessary to manufacture and distribute our products due to constraints and inflation within the global supply chain, as well as increases in wage costs and the cost and time to distribute our products. Uncertainty around inflationary pressures, interest rates, monetary policy, and changes in tariffs and tax laws could potentially cause new, or exacerbate existing, economic challenges that we may face, including the impact of foreign currency fluctuations on our results of operations, or result in an economic downturn or recession, which could negatively impact our business operations and results. Existing and future potential geopolitical dynamics may create economic, supply chain, energy, and other challenges, including disruptions to business operations, which has impacted, and may in the future negatively impact our business. In particular, international conflicts could create instability, have and may further result in sanctions, tariffs, and other measures that restrict international trade and may negatively affect our business operations and results.
We continue to monitor the tariffs announced by the U.S. government, and potential tariff modifications or the imposition of tariffs or export controls by other countries. As the tariffs are currently detailed, we do not expect a material impact to our business.
For additional information on risk factors that could impact our results, please refer to the sections entitled “Risk Factors” in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on February 28, 2025.
Overview
We are a medical technology company that primarily develops, manufactures, and markets innovative respiratory market products, including our portable oxygen therapy solutions for patients with chronic respiratory conditions as well as our Simeox product for airway clearance treatment. Our leading portfolio of innovative POCs is designed to deliver high output ratio-to-weight, meaningful sound suppression and has among the longest run times in the industry so that we can meet the needs of patients across a variety of disease states. We are positioned in the market as both a medical technology company and as a home medical equipment provider that is accredited in all 50 states in the United States with a significant patient, prescriber and provider reach. Our products are sold in the United States through direct patient and prescriber sales, as well as resellers and home medical equipment companies, and internationally through distributors and medical equipment companies.
We derive the majority of our revenue from the sale and rental of our portable oxygen concentrator systems and related accessories to patients, insurance carriers, home healthcare providers, resellers, and distributors, including our private label collaborator. We sell multiple configurations of our Inogen One
®
, Inogen Rove and Inogen At Home systems with various batteries, accessories, warranties, power cords, and language settings. Our goal is to design, build, and market oxygen solutions that redefine how long-term oxygen therapy is delivered.
To accomplish this goal, we intend to:
•
Expand our domestic home medical equipment, or HME, provider and reseller network.
We remain focused on our domestic business-to-business partnerships, including relationships with distributors, key accounts, resellers, our private label collaborator, and traditional HME providers. We offer patient-preferred, low total cost of ownership products to help providers convert their businesses to a non-delivery POC business model. The U.S. market represents a main opportunity for growth as we believe that the POC adoption is still in a low penetration rate.
•
Increase international business-to-business adoption.
We continue to believe there is a sizable international market opportunity, particularly in Europe where there is existing oxygen reimbursement for respiratory conditions. In order to take advantage of these international markets, we have partnered with distributors who serve key customers in those markets. We additionally have an Inogen base of operations for sales and customer service in the Netherlands along with sales representatives based in focused European countries, and use a contract manufacturer, Foxconn, located in the Czech Republic to support the majority of our European sales volumes. We are also focused on expanding in the Asia-Pacific region and Latin America where we have added sales representatives to set up new distributors in promising markets.
23
•
Improve our domestic direct-to-consumer sales and prescriber sales teams and increase productivity.
We are continuing to focus on the patient first initiative, which involves cross-training of sales representatives to execute cash sales and insurance rental. Additionally, we expect to continue to focus on increased productivity driven by improved sales management discipline, insights-informed tools, and optimized patient lead generation with a downsized direct-to-consumer sales team.
•
Optimize our rental revenues.
We continue to evolve our operating model to focus the enhanced sales teams to drive increased rental revenue by establishing relationships with the prescriber through a consistent cadence of contact.
•
Invest in our oxygen product offerings to develop innovative products and expand clinical evidence
. We incurred $5.2 million and $5.6 million in the three months ended June 30, 2025 and 2024, respectively, and $9.2 million and $12.2 million in the six months ended June 30, 2025 and 2024, respectively, in research and development expenses, and we intend to continue to make such investments in the foreseeable future.
We plan to also continue to invest in clinical studies to evaluate expected improvements in clinical, economic and patient reported outcomes associated with the use of our products as part of our efforts to drive payor and prescriber advocacy for our products.
•
Expand our product offerings and indications for use.
We are focused on expanding new products that drive benefits to patients, prescribers and our customers with a clinically relevant pipeline. These products would include innovations that strengthen our offerings in chronic obstructive pulmonary disease, or COPD, as well as future innovations that differentiate beyond devices to allow patients and clinicians to better manage respiratory disease with advanced portable oxygen concentrators with digital health value added services, expansion of use to hypercapnia, shortness-of-breath, and to other related disease indications.
Our Simeox product is a technology-enabled airway clearance and mucus management device predominantly aimed at serving patients with bronchiectasis which is a condition that presents as the lung’s bronchi are damaged and widened in patients with cystic fibrosis, COPD, or other respiratory conditions. Simeox is used in pulmonary rehabilitation centers as well as at home. Simeox has been cleared under CE mark in the European Union and is currently being sold in Europe and several other markets. In addition, we obtained 510(k) clearance for Simeox in December 2024 and plan to leverage our commercial infrastructure and capabilities to market the device in the United States, while continuing to market it in the other geographies. We intend to commercialize Simeox through the sale or rental of the product initially, followed by recurring sales of device disposables. We began efforts to obtain market feedback, as well as to initialize the work towards reimbursement coverage for the Simeox product in the U.S.
In January 2025, we entered into the Collaboration Agreement with Yuwell. The collaboration with Yuwell is expected to broaden our product portfolio through distribution of certain respiratory products, including Yuwell’s stationary oxygen concentrators, in the United States and select other territories, expand and enhance our innovation pipeline through research and development collaboration, and accelerate the entry of our brand into the Chinese market. In the United States, we initiated in June 2025 the launch of the Voxi
™
5, a new stationary oxygen concentrator designed to enhance access to high-quality oxygen therapy for long-term care patients. A more extensive launch is planned in 2026 as we focus on market development. In China, we continue to work through the registration process.
Results of operations
Comparison of three months ended June 30, 2025 and 2024
Revenue
Three months ended
June 30,
Change 2025 vs. 2024
% of Revenue
(dollar amounts in thousands)
2025
2024
$
%
2025
2024
Sales revenue
$
79,172
$
74,425
$
4,747
6.4
%
85.8
%
83.8
%
Rental revenue
13,105
14,340
(1,235
)
-8.6
%
14.2
%
16.2
%
Total revenue
$
92,277
$
88,765
$
3,512
4.0
%
100.0
%
100.0
%
Sales revenue increased $4.7 million, or 6.4%, for the three months ended June 30, 2025 from the three months ended June 30, 2024. The increase was primarily attributable to higher demand in domestic and international business-to-business sales. We sold approximately 49,000 oxygen systems during the three months ended June 30, 2025 compared to approximately 41,300 oxygen systems sold during the three months ended June 30, 2024, an increase of 18.6%.
24
Rental revenue decreased $1.2 million, or 8.6%, for the three months ended June 30, 2025 from the three months ended June 30, 2024. The decrease in rental revenue was primarily related to a higher mix of lower private-payor reimbursement rates.
Three months ended
(dollar amounts in thousands)
June 30,
Change 2025 vs. 2024
% of Revenue
Revenue by region and category
2025
2024
$
%
2025
2024
Business-to-business domestic sales
$
25,406
$
21,287
$
4,119
19.3
%
27.5
%
24.0
%
Business-to-business international sales
35,923
30,531
5,392
17.7
%
38.9
%
34.4
%
Direct-to-consumer domestic sales
17,843
22,607
(4,764
)
-21.1
%
19.4
%
25.4
%
Direct-to-consumer domestic rentals
13,105
14,340
(1,235
)
-8.6
%
14.2
%
16.2
%
Total revenue
$
92,277
$
88,765
$
3,512
4.0
%
100.0
%
100.0
%
Domestic business-to-business sales increased 19.3% for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, primarily due to the result of increased demand.
International business-to-business sales increased 17.7% for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, primarily due to higher demand. In the three months ended June 30, 2025, sales in Europe as a percentage of total international sales revenue slightly decreased to 85.3% from 86.7% during the comparable period in 2024.
Domestic direct-to-consumer sales decreased 21.1% for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, primarily driven by lower volume and average selling price versus the comparable period in 2024.
Domestic direct-to-consumer rentals decreased 8.6% for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, primarily related to a higher mix of lower private-payor reimbursement rates.
Cost of revenue and gross profit
Three months ended
June 30,
Change 2025 vs. 2024
% of Revenue
(dollar amounts in thousands)
2025
2024
$
%
2025
2024
Cost of sales revenue
$
43,469
$
38,320
$
5,149
13.4
%
47.1
%
43.2
%
Cost of rental revenue
7,467
7,708
(241
)
-3.1
%
8.1
%
8.7
%
Total cost of revenue
$
50,936
$
46,028
$
4,908
10.7
%
55.2
%
51.9
%
Gross profit - sales revenue
$
35,703
$
36,105
$
(402
)
-1.1
%
38.7
%
40.6
%
Gross profit - rental revenue
5,638
6,632
(994
)
-15.0
%
6.1
%
7.5
%
Total gross profit
$
41,341
$
42,737
$
(1,396
)
-3.3
%
44.8
%
48.1
%
Gross margin percentage - sales revenue
45.1
%
48.5
%
Gross margin percentage- rental revenue
43.0
%
46.2
%
Total gross margin percentage
44.8
%
48.1
%
Cost of sales revenue increased $5.1 million, or 13.4%, for the three months ended June 30, 2025 from the three months ended June 30, 2024 due primarily to an increase in the number of systems sold.
Cost of rental revenue decreased $0.2 million, or 3.1%, for the three months ended June 30, 2025 from the three months ended June 30, 2024. The decrease in cost of rental revenue was primarily attributable to a decrease in logistics costs. Cost of rental revenue included $3.0 million of rental asset depreciation for the three months ended June 30, 2025 compared to $3.1 million for the three months ended June 30, 2024.
Gross margin on sales revenue decreased to 45.1% for the three months ended June 30, 2025 from 48.5% for the three months ended June 30, 2024. The decrease was driven primarily by channel and customer mix, higher material cost premiums associated with open-market purchases of semiconductor chips used in our POCs, and adjustments in reserves. Total worldwide business-to-business sales revenue accounted for 77.5% of total sales revenue in the three months ended June 30, 2025 versus 69.6% in the three months ended June 30, 2024.
Gross margin on rental revenue decreased to 43.0% for the three months ended June 30, 2025 from 46.2% for the three months ended June 30, 2024, primarily due to a higher mix shift of private-payor reimbursement and lower net revenue per rental patient as a result of a decrease in the percentage of patients billed compared to total patients on service.
25
Research and development expense
Three months ended
June 30,
Change 2025 vs. 2024
% of Revenue
(dollar amounts in thousands)
2025
2024
$
%
2025
2024
Research and development expense
$
5,209
$
5,616
$
(407
)
-7.2
%
5.6
%
6.3
%
Research and development expense decreased $0.4 million, or 7.2%, for the three months ended June 30, 2025 from the three months ended June 30, 2024. This decrease was primarily due to $0.6 million of lower product development related to a Rove 4 design change in the prior year.
Sales and marketing expense
Three months ended
June 30,
Change 2025 vs. 2024
% of Revenue
(dollar amounts in thousands)
2025
2024
$
%
2025
2024
Sales and marketing expense
$
25,390
$
25,617
$
(227
)
-0.9
%
27.5
%
28.9
%
Sales and marketing expense decreased $0.2 million, or 0.9%, for the three months ended June 30, 2025 from the three months ended June 30, 2024. This decrease was primarily due to a decrease of $1.1 million in media and advertising costs, partially offset by an increase of $0.8 million in personnel costs. In the three months ended June 30, 2025, we spent $7.4 million in media and advertising costs versus $8.5 million in the comparable period in 2024.
General and administrative expense
Three months ended
June 30,
Change 2025 vs. 2024
% of Revenue
(dollar amounts in thousands)
2025
2024
$
%
2025
2024
General and administrative expense
$
16,871
$
18,568
$
(1,697
)
-9.1
%
18.3
%
20.9
%
General and administrative expense decreased $1.7 million, or 9.1%, for the three months ended June 30, 2025 from the three months ended June 30, 2024, primarily due to decreases of $1.0 million in bad debt expense and $0.6 million in the change in fair value of the earnout liability, respectively.
Other income, net
Three months ended
June 30,
Change 2025 vs. 2024
% of Revenue
(dollar amounts in thousands)
2025
2024
$
%
2025
2024
Interest income, net
$
1,123
$
1,333
$
(210
)
-15.8
%
1.2
%
1.5
%
Other income, net
701
134
567
423.1
%
0.8
%
0.2
%
Total other income, net
$
1,824
$
1,467
$
357
24.3
%
2.0
%
1.7
%
Total other income, net increased $0.4 million, or 24.3%, for the three months ended June 30, 2025 from the three months ended June 30, 2024.
Income tax benefit
Three months ended
June 30,
Change 2025 vs. 2024
% of Revenue
(dollar amounts in thousands)
2025
2024
$
%
2025
2024
Income tax benefit
$
(153
)
$
(7
)
$
(146
)
2,085.7
%
-0.2
%
0.0
%
Effective income tax rate
3.6
%
0.1
%
Income tax benefit increased $0.1 million, or 2,085.7%, for the three months ended June 30, 2025 from the three months ended June 30, 2024. We continued to record a valuation allowance on the use of deferred tax assets in the current and prior periods. The decrease was attributable to lower foreign and state taxes.
Our effective tax rate for the three months ended June 30, 2025 increased compared to the three months ended June 30, 2024, primarily due to a lower net loss and foreign and state taxes.
26
Net loss
Three months ended
June 30,
Change 2025 vs. 2024
% of Revenue
(dollar amounts in thousands)
2025
2024
$
%
2025
2024
Net loss
$
(4,152
)
$
(5,590
)
$
1,438
25.7
%
-4.5
%
-6.3
%
Net loss decreased $1.4 million, or 25.7%, for the three months ended June 30, 2025 from the three months ended June 30, 2024. The decrease in net loss was primarily related to an increase in sales revenue and lower operating expense.
Comparison of six months ended June 30, 2025 and 2024
Revenue
Six months ended
June 30,
Change 2025 vs. 2024
% of Revenue
(dollar amounts in thousands)
2025
2024
$
%
2025
2024
Sales revenue
$
147,642
$
137,520
$
10,122
7.4
%
84.6
%
82.5
%
Rental revenue
26,915
29,270
(2,355
)
-8.0
%
15.4
%
17.5
%
Total revenue
$
174,557
$
166,790
$
7,767
4.7
%
100.0
%
100.0
%
Sales revenue increased $10.1 million, or 7.4%, for the six months ended June 30, 2025 from the six months ended June 30, 2024. The increase was primarily attributable to higher demand in domestic and international business-to-business sales. We sold approximately 92,000 oxygen systems during the six months ended June 30, 2025 compared to approximately 75,200 oxygen systems sold during the six months ended June 30, 2024, an increase of 22.3%.
Rental revenue decreased $2.4 million, or 8.0%, for the six months ended June 30, 2025 from the six months ended June 30, 2024. The decrease in rental revenue was primarily related to a higher mix of lower private-payor reimbursement rates.
Six months ended
(dollar amounts in thousands)
June 30,
Change 2025 vs. 2024
% of Revenue
Revenue by region and category
2025
2024
$
%
2025
2024
Business-to-business domestic sales
$
46,860
$
37,806
$
9,054
23.9
%
26.9
%
22.7
%
Business-to-business international sales
67,908
56,566
11,342
20.1
%
38.9
%
33.9
%
Direct-to-consumer domestic sales
32,874
43,148
(10,274
)
-23.8
%
18.8
%
25.9
%
Direct-to-consumer domestic rentals
26,915
29,270
(2,355
)
-8.0
%
15.4
%
17.5
%
Total revenue
$
174,557
$
166,790
$
7,767
4.7
%
100.0
%
100.0
%
Domestic business-to-business sales increased 23.9% for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily due to the result of increased demand.
International business-to-business sales increased 20.1% for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily due to higher demand. In the six months ended June 30, 2025, sales in Europe as a percentage of total international sales revenue decreased to 85.5% from 87.4% during the comparable period in 2024.
Domestic direct-to-consumer sales decreased 23.8% for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily driven by lower volume and average selling price versus the comparable period in 2024.
Domestic direct-to-consumer rentals decreased 8.0% for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily related to a higher mix of lower private-payor reimbursement rates.
27
Cost of revenue and gross profit
Six months ended
June 30,
Change 2025 vs. 2024
% of Revenue
(dollar amounts in thousands)
2025
2024
$
%
2025
2024
Cost of sales revenue
$
81,552
$
73,564
$
7,988
10.9
%
46.7
%
44.1
%
Cost of rental revenue
15,292
16,118
(826
)
-5.1
%
8.8
%
9.7
%
Total cost of revenue
$
96,844
$
89,682
$
7,162
8.0
%
55.5
%
53.8
%
Gross profit - sales revenue
$
66,090
$
63,956
$
2,134
3.3
%
37.9
%
38.3
%
Gross profit - rental revenue
11,623
13,152
(1,529
)
-11.6
%
6.6
%
7.9
%
Total gross profit
$
77,713
$
77,108
$
605
0.8
%
44.5
%
46.2
%
Gross margin percentage - sales revenue
44.8
%
46.5
%
Gross margin percentage- rental revenue
43.2
%
44.9
%
Total gross margin percentage
44.5
%
46.2
%
Cost of sales revenue increased $8.0 million, or 10.9%, for the six months ended June 30, 2025 from the six months ended June 30, 2024 due primarily to an increase in the number of systems sold.
Cost of rental revenue decreased $0.8 million, or 5.1%, for the six months ended June 30, 2025 from the six months ended June 30, 2024. The decrease in cost of rental revenue was primarily attributable to a decrease in logistics costs. Cost of rental revenue included $6.1 million of rental asset depreciation for the six months ended June 30, 2025 compared to $6.3 million for the six months ended June 30, 2024.
Gross margin on sales revenue decreased to 44.8% for the six months ended June 30, 2025 from 46.5% for the six months ended June 30, 2024. The decrease was driven primarily by channel and customer mix and higher material cost premiums associated with open-market purchases of semiconductor chips used in our POCs, partially offset by lower warranty expense. Total worldwide business-to-business sales revenue accounted for 77.7% of total sales revenue in the six months ended June 30, 2025 versus 68.6% in the six months ended June 30, 2024.
Gross margin on rental revenue decreased to 43.2% for the six months ended June 30, 2025 from 44.9% for the six months ended June 30, 2024, primarily due to a higher mix shift of private-payor reimbursement and lower net revenue per rental patient as a result of a decrease in the percentage of patients billed compared to total patients on service.
Research and development expense
Six months ended
June 30,
Change 2025 vs. 2024
% of Revenue
(dollar amounts in thousands)
2025
2024
$
%
2025
2024
Research and development expense
$
9,243
$
12,194
$
(2,951
)
-24.2
%
5.3
%
7.3
%
Research and development expense decreased $3.0 million, or 24.2%, for the six months ended June 30, 2025 from the six months ended June 30, 2024. This decrease was due primarily to a $2.4 million decrease in consulting expense.
Sales and marketing expense
Six months ended
June 30,
Change 2025 vs. 2024
% of Revenue
(dollar amounts in thousands)
2025
2024
$
%
2025
2024
Sales and marketing expense
$
49,147
$
52,553
$
(3,406
)
-6.5
%
28.2
%
31.5
%
Sales and marketing expense decreased $3.4 million, or 6.5%, for the six months ended June 30, 2025 from the six months ended June 30, 2024. This decrease was primarily due to decreases of $1.9 million in media and advertising costs and $1.4 million in consulting fees. In the six months ended June 30, 2025, we spent $15.0 million in media and advertising costs versus $17.0 million in the comparable period in 2024.
28
General and administrative expense
Six months ended
June 30,
Change 2025 vs. 2024
% of Revenue
(dollar amounts in thousands)
2025
2024
$
%
2025
2024
General and administrative expense
$
33,108
$
35,699
$
(2,591
)
-7.3
%
19.0
%
21.4
%
General and administrative expense decreased $2.6 million, or 7.3%, for the six months ended June 30, 2025 from the six months ended June 30, 2024, primarily due to decreases of $1.2 million in the change in fair value of the earnout liability and $1.1 million in bad debt expense, respectively.
Other income, net
Six months ended
June 30,
Change 2025 vs. 2024
% of Revenue
(dollar amounts in thousands)
2025
2024
$
%
2025
2024
Interest income, net
$
2,152
$
2,736
$
(584
)
-21.3
%
1.2
%
1.6
%
Other income, net
1,057
277
780
281.6
%
0.6
%
0.2
%
Total other income, net
$
3,209
$
3,013
$
196
6.5
%
1.8
%
1.8
%
Total other income, net increased $0.2 million, or 6.5%, for the six months ended June 30, 2025 from the six months ended June 30, 2024.
Income tax benefit
Six months ended
June 30,
Change 2025 vs. 2024
% of Revenue
(dollar amounts in thousands)
2025
2024
$
%
2025
2024
Income tax benefit
$
(250
)
$
(157
)
$
(93
)
59.2
%
-0.1
%
-0.1
%
Effective income tax rate
2.4
%
0.8
%
Income tax benefit increased less than $0.1 million, or 59.2%, for the six months ended June 30, 2025 from the six months ended June 30, 2024. We continued to record a valuation allowance on the use of deferred tax assets in the current and prior periods. The decrease was attributable to lower foreign and state taxes.
Our effective tax rate for the six months ended June 30, 2025 increased compared to the six months ended June 30, 2024, primarily due to a lower net loss and foreign and state taxes.
On July 4, 2025, the
One Big Beautiful Bill Act
(“OBBBA”) was enacted into law. OBBBA provides for significant U.S. tax law changes and modifications. We are evaluating the potential effects of the new legislation, but we expect the legislation will likely not have a material impact on our financial statements. No adjustments have been made to the consolidated financial statements as of and for the period ended June 30, 2025, in relation to this legislation.
Net loss
Six months ended
June 30,
Change 2025 vs. 2024
% of Revenue
(dollar amounts in thousands)
2025
2024
$
%
2025
2024
Net loss
$
(10,326
)
$
(20,168
)
$
9,842
48.8
%
-5.9
%
-12.1
%
Net loss decreased $9.8 million, or 48.8%, for the six months ended June 30, 2025 from the six months ended June 30, 2024. The decrease in net loss was primarily related to an increase in sales revenue and lower operating expense.
Liquidity and capital resources
As of June 30, 2025, we had cash and cash equivalents of $103.7 million, which consisted of highly liquid investments with a maturity of three months or less. For the six months ended June 30, 2025, we received $27.2 million from Yuwell and $0.5 million in proceeds related to our 2014 Employee Stock Purchase Plan, or ESPP, partially offset by the payment of the earnout liability of $13.0 million. For the six months ended June 30, 2024, we received $0.4 million in proceeds related to our ESPP.
29
Our principal use of our funds for liquidity and capital resources in the six months ended June 30, 2025 consisted of cash used in investing activities of $18.7 million for the purchase of marketable securities, $5.9 million in the production and purchase of rental assets and other property and equipment and cash used in operating activities of $12.4 million.
We believe that our current cash, cash equivalents, and marketable securities and the cash to be generated from expected product sales and rentals will be sufficient to meet our projected operating and investing requirements for at least the next 12 months. However, our liquidity assumptions may prove to be incorrect, and we could utilize our available financial resources sooner than we currently expect. Our future funding requirements will depend on many factors, including market acceptance of our products; the cost of our research and development activities; payments from customers; the cost, timing, and outcome of litigation or disputes involving intellectual property rights, our products, employee relations, cyber security incidents, or otherwise; the cost and timing of acquisitions and integration thereof; the cost and timing of regulatory clearances or approvals; the cost and timing of establishing additional sales, marketing, and distribution capabilities; and the effect of competing technological and market developments. In the future, we may acquire businesses or technologies from third parties, and we may decide to raise additional capital through debt or equity financing to the extent we believe this is necessary to successfully complete these acquisitions. Our future capital requirements will also depend on many additional factors, including those set forth in the risk factors included in Item 1A. “Risk Factors” in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K filed with the SEC on February 28, 2025.
If we require additional funds in the future, we may not be able to obtain such funds on acceptable terms, or at all. In the future, we may also attempt to raise additional capital through the sale of equity securities or through equity-linked or debt financing arrangements. If we raise additional funds by issuing equity or equity-linked securities, the ownership of our existing stockholders will be diluted. If we raise additional financing by the incurrence of indebtedness, we will be subject to increased fixed payment obligations and could also be subject to restrictive covenants, such as limitations on our ability to incur additional debt, and other operating restrictions that could adversely impact our ability to conduct our business. Any future indebtedness we incur may result in terms that could be unfavorable to equity investors. There can be no assurances that we will be able to raise additional capital, which would adversely affect our ability to achieve our business objectives. In addition, if our operating performance during the next 12 months is below our expectations, our liquidity and ability to operate our business could be adversely affected.
The following tables show a summary of our cash flows and working capital for the periods and as of the dates indicated:
Six months ended
(amounts in thousands)
June 30,
Change 2025 vs. 2024
Summary of consolidated cash flows
2025
2024
$
%
Cash provided by (used in) operating activities
$
(12,440
)
$
1,940
$
(14,380
)
741.2
%
Cash used in investing activities
(24,611
)
(25,820
)
1,209
4.7
%
Cash provided by financing activities
23,951
84
23,867
28,413.1
%
Effect of exchange rates on cash
642
(217
)
859
-395.9
%
Net decrease in cash and cash equivalents
$
(12,458
)
$
(24,013
)
$
11,555
-48.1
%
(amounts in thousands)
June 30,
December 31,
Summary of working capital
2025
2024
Total current assets
$
203,121
$
185,451
Total current liabilities
67,068
76,686
Net working capital
$
136,053
$
108,765
Operating activities
Historically, we derive operating cash flows from cash collected from the sales and rental of our products and services. These cash flows received are partially offset by our use of cash for operating expenses to support the growth of our business.
Net cash used in operating activities for the six months ended June 30, 2025 consisted primarily of our net loss of $10.3 million, partially offset by non-cash adjustment items of depreciation of equipment and leasehold improvements and amortization of intangibles of $10.4 million, stock-based compensation expense of $4.4 million, provision for sales returns and doubtful accounts of $3.2 million, and net loss on disposal of rental assets and other assets of $1.7 million. The net changes in operating assets and liabilities resulted in net cash used of $22.7 million, which included the payment of the earnout liability of $9.8 million.
Net cash provided by operating activities for the six months ended June 30, 2024 consisted primarily of our net loss of $20.2 million, partially offset by non-cash adjustment items such as depreciation of equipment and leasehold improvements and amortization of intangibles of $10.6 million, provision for sales returns and doubtful accounts of $4.6 million, stock-based compensation expense of $4.2 million, net loss on disposal of rental assets and other assets of $2.2 million, and change in fair value of earnout liability of $1.2 million. The net changes in operating assets and liabilities resulted in a net decrease in cash of $0.4 million.
30
Investing activities
Net cash used in investing activities generally includes the production and purchase of rental assets, property, plant and equipment, acquisitions, and intangibles to support our expanding business as well as maturities (purchases) of marketable securities.
For the six months ended June 30, 2025, we invested $18.7 million in the purchase of marketable securities and $5.9 million in the production and purchase of rental assets and other property and equipment.
For the six months ended June 30, 2024, we invested $32.3 million in the purchase of marketable securities, $7.0 million in the production and purchase of rental assets and other property and equipment, and $2.1 million in intangible assets, partially offset by $15.5 million we received from maturities of marketable securities.
We expend significant manufacturing and production expense in connection with the development and production of our oxygen concentrator and other respiratory care products and, in connection with our rental business, we incur expense in the deployment and maintenance of rental equipment to our patients. Investments will continue to be required in order to grow our sales and rental revenue and continue to supply and replace rental equipment to our rental patients on service.
Financing activities
Historically, we have funded our operations through our sales and rental revenue and the issuance of preferred and common stock.
For the six months ended June 30, 2025, net cash provided by financing activities consisted of $27.2 million of proceeds from issuance of common stock pursuant to the Purchase Agreement, $0.5 million of proceeds received from purchases under our ESPP, partially offset by the payment of the earnout liability of $3.2 million and employment taxes related to the vesting of restricted stock units, or RSUs, of $0.6 million.
For the six months ended June 30, 2024, net cash provided by financing activities consisted of $0.4 million from the proceeds received from purchases under our ESPP, partially offset by the payment of employment taxes related to the vesting of RSUs of $0.3 million.
Sources of funds
During the six months ended June 30, 2025, our primary source of cash related to $27.2 million of proceeds from issuance of common stock pursuant to the Purchase Agreement. Our net cash used in operating activities in the six months ended June 30, 2025 was $12.4 million compared to net cash provided of $1.9 million in the six months ended June 30, 2024. As of June 30, 2025, we had cash and cash equivalents of $103.7 million.
Use of funds
Our principal uses of cash are funding our new rental asset deployments and other capital purchases, operations, and other working capital requirements and, from time-to-time, the acquisition of businesses and the payment of the earnout liability. Over the past several years our cash flows from customer collections have remained consistent and our annual cash provided by operating activities has generally been a significant source of capital to the business.
We may need to raise additional funds to support our investing operations, and such funding may not be available to us on acceptable terms, or at all. If we are unable to raise additional funds when needed, our operations and ability to execute our business strategy could be adversely affected. We may seek to raise additional funds through equity, equity-linked or debt financings. If we raise additional funds through the incurrence of indebtedness, such indebtedness would have rights that are senior to holders of our equity securities and could contain covenants that restrict our operations. Any additional equity financing may be dilutive to our stockholders.
Non-GAAP financial measures
EBITDA and Adjusted EBITDA are financial measures that are not calculated in accordance with U.S. GAAP. We define EBITDA as net loss excluding interest income, interest expense, taxes and depreciation and amortization. Adjusted EBITDA also excludes stock-based compensation, change in fair value of earnout liability, acquisition-related expenses, and restructuring-related and other charges. Below, we have provided a reconciliation of EBITDA and Adjusted EBITDA to our net loss, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP. EBITDA and Adjusted EBITDA should not be considered alternatives to a net loss or any other measure of financial performance calculated and presented in accordance with U.S. GAAP. Our EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures of other organizations because other organizations may not calculate EBITDA and Adjusted EBITDA in the same manner as we calculate these measures.
31
We include EBITDA and Adjusted EBITDA in this Quarterly Report on Form 10-Q because they are important measures upon which our management assesses our operating performance. We use EBITDA and Adjusted EBITDA as key performance measures because we believe they facilitate operating performance comparisons from period-to-period by excluding potential differences primarily caused by variations in capital structures, tax positions, the impact of depreciation and amortization expense on our fixed assets and intangible assets, the impact of stock-based compensation expense, the impact of the change in fair value of the earnout liability, the impact of acquisition-related expenses, the impact of restructuring-related costs, and impairment charges. Because EBITDA and Adjusted EBITDA facilitate internal comparisons of our historical operating performance on a more consistent basis, we also use EBITDA and Adjusted EBITDA for business planning purposes, to incentivize and compensate our management personnel, and in evaluating acquisition opportunities. In addition, we believe EBITDA and Adjusted EBITDA and similar measures are widely used by investors, securities analysts, ratings agencies, and other parties in evaluating companies in our industry as a measure of financial performance and debt-service capabilities.
Our uses of EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results as reported under U.S. GAAP. Some of these limitations are:
•
EBITDA and Adjusted EBITDA do not reflect our cash expenditures for capital equipment or other contractual commitments;
•
although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect capital expenditure requirements for such replacements;
•
EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs;
•
Adjusted EBITDA does not include changes in fair value of earnout liability related to our acquisitions;
•
Adjusted EBITDA does not include acquisition-related expenses, whether the acquisition was consummated or not pursued;
•
Adjusted EBITDA does not include costs associated with workforce reductions and associated costs and other restructuring-related activities; and
•
other companies, including companies in our industry, may calculate EBITDA and Adjusted EBITDA measures differently, which reduces their usefulness as a comparative measure.
In evaluating EBITDA and Adjusted EBITDA, we anticipate that in the future we will incur expenses within these categories similar to this presentation. Our presentation of EBITDA and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by certain expenses. When evaluating our financial results, EBITDA and Adjusted EBITDA should be considered alongside other financial performance measures, including U.S. GAAP results.
The following table presents a reconciliation of EBITDA and Adjusted EBITDA to our net loss, the most comparable U.S. GAAP measure, for each of the periods indicated:
(amounts in thousands)
Three months ended
June 30,
Six months ended
June 30,
Non-GAAP EBITDA and Adjusted EBITDA
2025
2024
2025
2024
Net loss (GAAP)
$
(4,152
)
$
(5,590
)
$
(10,326
)
$
(20,168
)
Non-GAAP adjustments:
Interest income, net
(1,123
)
(1,333
)
(2,152
)
(2,736
)
Benefit for income taxes
(153
)
(7
)
(250
)
(157
)
Depreciation and amortization
5,216
5,345
10,405
10,610
EBITDA (non-GAAP)
(212
)
(1,585
)
(2,323
)
(12,451
)
Stock-based compensation
2,293
1,814
4,440
4,230
Acquisition-related expenses
—
419
—
657
Change in fair value of earnout liability
—
610
—
1,180
Adjusted EBITDA (non-GAAP)
$
2,081
$
1,258
$
2,117
$
(6,384
)
32
Item 3. Quantitative and Qualitat
ive Disclosures About Market Risk
We are exposed to various market risks, including fluctuation in foreign currency exchange rates and interest rates. Market risk is the potential loss arising from adverse changes in market rates and prices. We do not hold or issue financial instruments for trading purposes.
Foreign currency exchange risk
The principal market risk we face is foreign currency exchange risk. The majority of our revenue is denominated in U.S. dollars while the majority of our European sales are denominated in Euros. Our results of operations, certain balance sheet balances and cash flows are, therefore, subject to fluctuations due to changes in foreign currency exchange rates. The volatility of exchange rates depends on many factors that we cannot forecast with reliable accuracy. We have experienced and will continue to experience fluctuations in our net income or loss as a result of transaction gains or losses related to revaluing certain current asset and current liability balances that are denominated in currencies other than the functional currency in which they are recorded. The effect of a 10% adverse change in exchange rates on foreign denominated cash, receivables and payables as of June 30, 2025 would not have had a material effect on our financial position, results of operations or cash flows. As our operations in countries outside of the United States grow, our results of operations and cash flows will be subject to fluctuations due to changes in foreign currency exchange rates, which could harm our business in the future.
We began entering into foreign exchange forward contracts to protect our forecasted U.S. dollar-equivalent earnings from adverse changes in foreign currency exchange rates. These hedging contracts reduce, but will not entirely eliminate, the impact of adverse currency exchange rate movements on revenue, cash, receivables, and payables. We performed a sensitivity analysis assuming a hypothetical 10% adverse movement in foreign exchange rates to the hedging contracts and the underlying exposures described above. As of June 30, 2025, the analysis indicated that these hypothetical market movements would not have a material effect on our financial position, results of operations or cash flows. We estimate prior to any hedging activity that a 10% adverse change in exchange rates on our foreign denominated sales would have resulted in a $5.3 million decline in revenue for the six months ended June 30, 2025. We designate these forward contracts as cash flow hedges for accounting purposes. The fair value of the forward contract is separated into intrinsic and time values. The fair value of forward currency-exchange contracts is sensitive to changes in currency exchange rates. Changes in the time value are coded in other income, net. Changes in the intrinsic value are recorded as a component of accumulated other comprehensive income (loss) and subsequently reclassified into revenue to offset the hedged exposures as they occur.
Interest rate fluctuation risk
We had cash, cash equivalents and restricted cash of $105.0 million as of June 30, 2025, which consisted of highly liquid investments with a maturity of three months or less, and $18.7 million of marketable securities with maturity dates primarily due in less than one year. The primary goals of our investment policy are liquidity and capital preservation. We do not enter into investments for trading or speculative purposes. We believe that we do not have any material exposure to changes in the fair value of these assets as a result of changes in interest rates due to the short-term nature of our cash and cash equivalents. Declines in interest rates, however, would reduce future investment income. We considered the historical volatility of short-term interest rates and determined that it was reasonably possible that an adverse change of 100 basis points could be experienced in the near term. A hypothetical 1.00% (100 basis points) increase in interest rates would not have materially impacted the fair value of our marketable securities as of June 30, 2025 and June 30, 2024. If overall interest rates had increased or decreased by 1.00% (100 basis points), our interest income would not have been materially affected during the six months ended June 30, 2025 or June 30, 2024.
33
I
tem 4. Controls and Procedures
Evaluation of disclosure controls and procedures
The Company maintains a system of disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, which are designed to provide reasonable assurance that information required to be disclosed in the reports that the Company files or submits under the Exchange Act, is recorded, processed, summarized and reported accurately and completely within the time periods specified in the SEC’s rules and forms. These disclosure controls and procedures include, among other processes, controls and procedures designed to ensure that information required to be disclosed in the reports that the Company files or submits under the Exchange Act is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Due to inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Further, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions over time, or that the degree of compliance with the policies and procedures may deteriorate. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives. Our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of June 30, 2025. Based upon the evaluation described above, our Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2025, our disclosure controls and procedures were effective at the reasonable assurance level.
Changes in internal control over financial reporting
There has been no change in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Rule 13a-15 or 15d-15 that occurred during our most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
Limitations on effectiveness of controls
In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. Because of the inherent limitations in any control system, misstatements due to error or fraud may occur and not be detected.
34
P
art II. OTHER INFORMATION
I
tem 1. Legal Proceedings
We are party to various legal proceedings and investigations arising in the normal course of business. We carry insurance, subject to specified deductibles under the policies, to protect against losses from certain types of legal claims. At this time, we do not anticipate that any of these other proceedings arising in the normal course of business will have a material adverse effect on our business. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, and other factors.
I
tem 1A. Risk Factors
The significant factors known to us that could materially adversely affect our business, financial condition, or operating results are described in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on February 28, 2025. Any of these factors could result in a significant or material adverse effect on our results of operations or financial condition. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results of operations. As of the date of this Quarterly Report on Form 10-Q, there have been no material changes from the risk factors previously disclosed in our 2024 Annual Report on Form 10-K filed with the SEC on February 28, 2025.
Item 2. Unregis
tered Sales of Equity Securities and Use of Proceeds
Unregistered sales of equity securities
Not applicable.
Issuer purchases of equity securities
We did not repurchase any shares of our common stock during the three months ended June 30, 2025.
Item 3. Defaults U
pon Senior Securities
None.
Item 4.
Mine Safety Disclosures
Not applicable.
Item 5. Othe
r Information
During the three months ended June 30, 2025, none of our directors or Section 16 reporting officers
adopted
or
terminated
any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of the SEC’s Regulation S-K).
Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH
Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents
104
The cover page of this Quarterly Report on Form 10-Q, formatted in inline XBRL.
+ Indicates a management contract or compensatory plan.
(1) The Certifications attached as Exhibits 32.1 and 32.2 that accompany this Quarterly Report on Form 10-Q are not deemed filed with the Securities and Exchange Commission and are not to be incorporated by reference into any filing of Inogen, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Quarterly Report on Form 10-Q, irrespective of any general incorporation language contained in such filing.
36
SIGN
ATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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