INSPIRE MEDICAL SYSTEMS, INC., 10-K filed on 2/13/2026
Annual Report
v3.25.4
Cover - USD ($)
 12 Months Ended
Dec. 31, 2025
Feb. 05, 2026
Jun. 30, 2025
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2025    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-38468    
Entity Registrant Name Inspire Medical Systems, Inc.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 26-1377674    
Entity Address, Address Line One 5500 Wayzata Blvd.    
Entity Address, Address Line Two Suite 1600    
Entity Address, City or Town Golden Valley    
Entity Address, State or Province MN    
Entity Address, Postal Zip Code 55416    
City Area Code 844    
Local Phone Number 672-4357    
Title of 12(b) Security Common stock, $0.001 par value    
Trading Symbol INSP    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 3,801,161,459
Entity Common Stock, Shares Outstanding (in shares)   28,589,291  
Documents Incorporated by Reference
Portions of the registrant’s definitive proxy statement for its 2026 annual stockholders’ meeting, which is to be filed within 120 days of the registrant’s fiscal year ended December 31, 2025, are incorporated by reference into Part III of this Annual Report on Form 10-K.
    
Entity Central Index Key 0001609550    
Amendment Flag false    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
v3.25.4
Audit Information
 12 Months Ended
Dec. 31, 2025
Audit Information [Abstract]  
Auditor Name Ernst & Young LLP
Auditor Location Minneapolis, MN
Auditor Firm ID 42
v3.25.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 104,813 $ 150,150
Investments, short-term 203,455 295,396
Accounts receivable, net of allowance for credit losses of $1,080 and $880, respectively 119,692 93,068
Inventories, net 145,293 80,118
Prepaid expenses and other current assets 10,399 12,074
Total current assets 583,652 630,806
Investments, long-term 96,330 70,995
Property and equipment, net 97,872 71,925
Operating lease right-of-use assets 23,532 23,314
Deferred tax assets 88,667 13
Other non-current assets 17,264 11,330
Total assets 907,317 808,383
Current liabilities:    
Accounts payable 36,565 38,687
Accrued expenses 59,490 49,814
Total current liabilities 96,055 88,501
Operating lease liabilities, non-current portion 29,998 30,039
Other non-current liabilities 104 148
Total liabilities 126,157 118,688
Commitments and contingencies (Note 11)
Stockholders' equity    
Preferred Stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding 0 0
Common Stock, $0.001 par value, 200,000,000 shares authorized; 28,579,015 and 29,740,176 shares issued and outstanding at December 31, 2025 and 2024, respectively 29 30
Additional paid-in capital 927,159 981,043
Accumulated other comprehensive income 464 536
Accumulated deficit (146,492) (291,914)
Total stockholders' equity 781,160 689,695
Total liabilities and stockholders' equity $ 907,317 $ 808,383
v3.25.4
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Allowance for credit loss $ 1,080 $ 880
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Preferred stock, authorized (in shares) 10,000,000 10,000,000
Preferred stock, issued (in shares) 0 0
Preferred stock, outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, authorized (in shares) 200,000,000 200,000,000
Common stock, issued (in shares) 28,579,015 29,740,176
Common stock, outstanding (in shares) 28,579,015 29,740,176
v3.25.4
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Statement [Abstract]      
Revenue $ 911,981 $ 802,804 $ 624,799
Cost of goods sold 133,225 122,986 96,576
Gross profit 778,756 679,818 528,223
Operating expenses:      
Research and development 103,165 114,128 116,536
Selling, general and administrative 624,637 529,607 451,958
Total operating expenses 727,802 643,735 568,494
Operating income (loss) 50,954 36,083 (40,271)
Other expense (income):      
Interest and dividend income (17,536) (23,247) (20,560)
Interest expense 137 22 0
Other expense, net 2,656 855 195
Total other income (14,743) (22,370) (20,365)
Income (loss) before income taxes 65,697 58,453 (19,906)
Income tax (benefit) expense (79,725) 4,944 1,247
Net income (loss) 145,422 53,509 (21,153)
Other comprehensive income (loss):      
Foreign currency translation (loss) gain (296) (65) 140
Unrealized gain (loss) on investments 224 (199) 746
Total comprehensive income (loss) $ 145,350 $ 53,245 $ (20,267)
Net income (loss) per share:      
Basic (in dollars per share) $ 4.95 $ 1.80 $ (0.72)
Diluted (in dollars per share) $ 4.89 $ 1.75 $ (0.72)
Weighted average shares outstanding:      
Basic (in shares) 29,368,892 29,763,395 29,302,154
Diluted (in shares) 29,757,036 30,543,274 29,302,154
v3.25.4
Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Total
Accelerated Share Repurchases
Share Repurchase Program
Common Stock
Common Stock
Accelerated Share Repurchases
Common Stock
Share Repurchase Program
Additional Paid-in Capital
Additional Paid-in Capital
Accelerated Share Repurchases
Additional Paid-in Capital
Share Repurchase Program
Accumulated Other Comprehensive (Loss) Income
Accumulated Deficit
Beginning balance at Dec. 31, 2022 $ 496,008     $ 29     $ 820,335     $ (86) $ (324,270)
Beginning balance, common stock, outstanding (in shares) at Dec. 31, 2022       29,008,368              
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Stock options exercised $ 25,809     $ 1     25,808        
Stock options exercised (in shares) 595,188     595,188              
Vesting of restricted stock units, net (in shares)       40,915              
Shares held for tax withholdings $ (17,158)           (17,158)        
Shares held for tax withholdings (in shares)       (113,062)              
Issuance of common stock 353           353        
Issuance and sale of common stock (in shares)       1,575              
Issuance of common stock for employee stock purchase plan 5,299           5,299        
Issuance of common stock for employee stock purchase plan (in shares)       27,480              
Stock-based compensation expense 82,470           82,470        
Other comprehensive (loss) income 886                 886  
Net (loss) income (21,153)                   (21,153)
Ending balance at Dec. 31, 2023 572,514     $ 30     917,107     800 (345,423)
Ending balance, common stock, outstanding (in shares) at Dec. 31, 2023       29,560,464              
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Stock options exercised $ 21,897           21,897        
Stock options exercised (in shares) 387,856     376,730              
Vesting of restricted stock units, net $ (4,895)           (4,895)        
Vesting of restricted stock units, net (in shares)       57,824              
Issuance of common stock 322           322        
Issuance and sale of common stock (in shares)       1,716              
Issuance of common stock for employee stock purchase plan 5,605           5,605        
Issuance of common stock for employee stock purchase plan (in shares)       48,599              
Stock-based compensation expense 116,007           116,007        
Accelerated share repurchase of common stock   $ (75,000)           $ (75,000)      
Accelerated share repurchase of common stock (in shares)         (305,157)            
Other comprehensive (loss) income (264)                 (264)  
Net (loss) income 53,509                   53,509
Ending balance at Dec. 31, 2024 $ 689,695     $ 30     981,043     536 (291,914)
Ending balance, common stock, outstanding (in shares) at Dec. 31, 2024 29,740,176     29,740,176              
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Stock options exercised $ 9,393     $ 0     9,393        
Stock options exercised (in shares) 163,445     140,479              
Vesting of restricted stock units, net $ (22,840)           (22,840)        
Vesting of restricted stock units, net (in shares)       266,525              
Issuance of common stock 307           307        
Issuance and sale of common stock (in shares)       2,580              
Issuance of common stock for employee stock purchase plan 5,019           5,019        
Issuance of common stock for employee stock purchase plan (in shares)       52,015              
Stock-based compensation expense 130,259           130,259        
Accelerated share repurchase of common stock     $ (176,023)     $ (1)     $ (176,022)    
Accelerated share repurchase of common stock (in shares)         (103,886) (1,518,874)          
Other comprehensive (loss) income (72)                 (72)  
Net (loss) income 145,422                   145,422
Ending balance at Dec. 31, 2025 $ 781,160     $ 29     $ 927,159     $ 464 $ (146,492)
Ending balance, common stock, outstanding (in shares) at Dec. 31, 2025 28,579,015     28,579,015              
v3.25.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Operating activities      
Net income (loss) $ 145,422 $ 53,509 $ (21,153)
Adjustments to reconcile net income (loss):      
Depreciation and amortization 13,957 6,550 2,846
Accretion of investment discount (2,889) (8,859) (2,469)
Stock-based compensation expense 130,259 116,007 82,470
Deferred income taxes (benefit) (88,749) 0 0
Provision (benefit) for estimated credit losses 200 (768) 1,612
Impairment of strategic investment 4,046 0 0
Other non-cash expenses 2,111 1,517 2,128
Changes in operating assets and liabilities:      
Accounts receivable (26,233) (2,602) (30,218)
Inventories (65,175) (46,233) (21,999)
Prepaid expenses and other current assets 1,651 (2,344) (4,758)
Accounts payable (3,747) 604 9,296
Accrued expenses and other liabilities 6,123 12,865 6,898
Net cash provided by operating activities 116,976 130,246 24,653
Investing activities      
Purchases of property and equipment (38,499) (39,123) (23,629)
Purchases of investments (240,318) (418,354) (281,189)
Proceeds from sales or maturities of investments 310,381 344,605 10,246
Purchases of strategic investments (10,118) (250) (250)
Net cash provided by (used in) investing activities 21,446 (113,122) (294,822)
Financing activities      
Proceeds from the exercise of stock options 9,595 22,167 25,809
Accelerated share repurchase of common stock 0 (75,000) 0
Share repurchase of common stock (175,019) 0 0
Payment of taxes on net share settlement of equity awards (23,044) (5,165) (17,158)
Proceeds from the issuance of common stock from employee stock purchase plan 5,019 5,605 5,299
Net cash (used in) provided by financing activities (183,449) (52,393) 13,950
Effect of exchange rate on cash (310) (118) 164
Decrease in cash and cash equivalents (45,337) (35,387) (256,055)
Cash and cash equivalents at beginning of year 150,150 185,537 441,592
Cash and cash equivalents at end of year 104,813 150,150 185,537
Supplemental cash flow information      
Cash paid for interest 137 22 0
Property and equipment included in accounts payable and accrued expenses 4,773 3,386 4,018
Excise taxes accrued but not paid $ 1,004 $ 0 $ 0
v3.25.4
Organization
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization Organization
Description of Business
Inspire Medical Systems, Inc. is a medical technology company focused on the development and commercialization of innovative, minimally invasive solutions for patients with obstructive sleep apnea ("OSA"). Our proprietary Inspire system is the first United States ("U.S.") Food and Drug Administration ("FDA"), European Union ("EU"), Medical Devices Regulation, and Japan Pharmaceuticals and Medical Devices Agency-approved neurostimulation technology of its kind that provides a safe and effective treatment for patients with moderate to severe OSA. Inspire therapy received premarket approval from the FDA in 2014 and has been commercially available in certain European markets since 2011 and certain Asia Pacific markets since 2021.
v3.25.4
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Basis of Presentation
The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC").
In the opinion of management, all adjustments, consisting of only normal recurring adjustments that are necessary to present fairly the financial position, results of operations, and cash flows have been made. The results of operations for the year ended December 31, 2025 are not necessarily indicative of the operating results for any future periods.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts and disclosures reported in the consolidated financial statements. We use significant judgment when making estimates related to the inventory reserves, stock-based awards, and income taxes. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates.
Cash and Cash Equivalents
We consider all highly liquid securities, readily convertible to cash, that have original maturities of 90 days or less from the date of purchase to be cash equivalents. Cash is carried at cost, which approximates fair value, and cash equivalents, which consist of money market funds, are stated at fair value.
Foreign Currency
Our functional and reporting currency is the U.S. dollar. Our subsidiaries have functional currency in Euro and Yen. The consolidated financial statements are translated to U.S. dollars. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated using the balance sheet date exchange rate. Sales and expenses denominated in foreign currencies are translated at transaction date exchange rates. Foreign currency transaction gains and losses and the impacts of foreign currency remeasurement are recognized in other expense, net in the consolidated statements of operations and comprehensive income (loss). For the years ended December 31, 2025, 2024, and 2023, we recognized a total of $1.0 million of gains, $0.9 million of losses, and $0.2 million of losses, net, respectively. Any unrealized gains and losses due to translation
adjustments are included in accumulated other comprehensive income within stockholders' equity in the consolidated balance sheets. We had $0.1 million of unrecognized loss and $0.2 of unrecognized gain in our accumulated other comprehensive income balance as of December 31, 2025 and 2024, respectively.
Investments
Our investments are classified as available-for-sale and consisted of the following:
December 31, 2025
AmortizedUnrealized GrossAggregate
CostGainsLossesFair Value
Short-Term:
Commercial paper$22,103 $25 $— $22,128 
Corporate debt securities57,694 134 — 57,828 
U.S. Treasury debt securities123,281 220 (2)123,499 
Short-term investments$203,078 $379 $(2)$203,455 
Long-Term:
Corporate debt securities$58,726 $128 $(9)$58,845 
Asset-backed securities1,198 3 — 1,201 
U.S. Treasury debt securities36,094 190 — 36,284 
Long-term investments$96,018 $321 $(9)$96,330 
December 31, 2024
AmortizedUnrealized GrossAggregate
CostGainsLossesFair Value
Short-Term:
Commercial paper$19,806 $25 $— $19,831 
Corporate debt securities47,226 80 (7)47,299 
Certificates of deposit7,684 10 — 7,694 
U.S. Treasury debt securities220,283 346 (57)220,572 
Short-term investments$294,999 $461 $(64)$295,396 
Long-Term:
Corporate debt securities$23,915 $59 $(49)$23,925 
Asset-backed securities287 — — 287 
U.S. Treasury debt securities46,818 50 (85)46,783 
Long-term investments$71,020 $109 $(134)$70,995 
The following table shows all available-for-sale investments in an unrealized loss position for which an allowance for credit losses has not been recorded and the related gross unrealized loss and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:
December 31, 2025
Less than 12 Months12 Months or GreaterTotal
Fair ValueUnrealized LossFair ValueUnrealized LossFair ValueUnrealized Loss
Corporate debt securities$13,231 $(9)$— $— $13,231 $(9)
U.S. Treasury debt securities26,474 (2)— — 26,474 (2)
Total$39,705 $(11)$— $— $39,705 $(11)
December 31, 2024
Less than 12 Months12 Months or GreaterTotal
Fair ValueUnrealized LossFair ValueUnrealized LossFair ValueUnrealized Loss
Corporate debt securities$11,728 $(56)$— $— $11,728 $(56)
U.S. Treasury debt securities69,402 (220)— — 69,402 (220)
Total$81,130 $(276)$— $— $81,130 $(276)
Investments are classified as available-for-sale and are reported at their estimated fair market values which are based on quoted, active or inactive market prices when available. Any unrealized gains and losses due to interest rate fluctuations and other external factors are reported as a separate component of accumulated other comprehensive income within stockholders' equity. We had $0.6 million and $0.4 million of unrecognized gains in our accumulated other comprehensive income balance at December 31, 2025 and 2024, respectively. Any realized gains and losses are calculated on the specific identification method and reported net in other expense, net in the consolidated statements of operations and comprehensive income (loss). We recorded $0 of gross realized gains from the sale or maturity of available-for-sale investments during each of the years ended December 31, 2025, 2024, and 2023. We recorded $0 of gross realized losses from the sale or maturity of available-for-sale investments during each of the years ended December 31, 2025, 2024, and 2023.
As of December 31, 2025, we had no investments with a contractual maturity of greater than three years. Currently, we do not intend to sell the investments, and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost bases, which may be maturity. We do not consider those investments to be other-than-temporarily impaired as of December 31, 2025. Each reporting period, we evaluate whether declines in fair value below carrying value are due to expected credit losses, as well as our ability and intent to hold the investment until a forecasted recovery occurs. Expected credit losses, not to exceed the amount of the unrealized loss, are recorded as an allowance through other expense in the consolidated statements of operations and comprehensive income (loss). The total allowance for credit losses was $0 at both December 31, 2025 and 2024.
Fair Value of Financial Instruments
We measure certain financial assets and liabilities at fair value on a recurring basis, including cash equivalents and investments. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value:
Level 1: Observable inputs, such as quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2: Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly.
Level 3: Unobservable inputs that are supported by little or no market activities, which would require us to develop our own assumptions.
We classify instruments within Level 1 if quoted prices are available in active markets for identical assets, which include our money market funds and U.S. Treasury debt securities. We classify instruments in Level 2 if the instruments are valued using observable inputs to quoted market prices, benchmark yields, reported trades, broker/dealer quotes or an income approach, such as a discounted cash flow pricing model that calculates values from observable inputs such as quoted interest rates, yield curves and other observable market information. These instruments include our commercial paper, certificates of deposit, corporate debt securities and asset-backed securities. The money market funds and available-for-sale securities are held by two custodians who obtain investment prices from a third-party pricing provider that uses standard inputs (observable in the market) to models which vary by asset class.
The following tables set forth by level within the fair value hierarchy our assets that are measured on a recurring basis and reported at fair value as of December 31, 2025 and 2024. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
Fair Value Measurements as of
December 31, 2025
Estimated
Fair Value
Level 1Level 2Level 3
Cash equivalents:
Money market funds$64,378 $64,378 $— $— 
Total cash equivalents64,378 64,378 — — 
Investments:
Commercial paper22,128 — 22,128 — 
Corporate debt securities116,673 — 116,673 — 
Asset-backed securities1,201 — 1,201 — 
U.S. Treasury debt securities159,783 159,783 — — 
Total investments299,785 159,783 140,002 — 
Total cash equivalents and investments$364,163 $224,161 $140,002 $— 
Fair Value Measurements as of
December 31, 2024
Estimated
Fair Value
Level 1Level 2Level 3
Cash equivalents:
Money market funds$59,606 $59,606 $— $— 
Total cash equivalents59,606 59,606 — — 
Investments:
Commercial paper19,831 — 19,831 — 
Corporate debt securities71,224 — 71,224 — 
Certificates of deposit7,694 — 7,694 — 
Asset-backed securities287 — 287 — 
U.S. Treasury debt securities267,355 267,355 — — 
Total investments366,391 267,355 99,036 — 
Total cash equivalents and investments$425,997 $326,961 $99,036 $— 
There were no transfers between levels during the years ended December 31, 2025 and 2024.
Concentration of Credit Risk
Financial instruments, which potentially subject us to concentrations of credit risk, consist principally of cash equivalents, investments, and accounts receivable. We maintain the majority of our cash and cash equivalents in accounts with major U.S. and multi-national financial institutions, and our deposits at certain of these institutions exceed insured limits. Market conditions can impact the viability of these institutions. In the event of failure of any of the financial institutions where we maintain our cash and cash equivalents, there can be no assurance that we will be able to access uninsured funds in a timely manner or at all.
Our investment policy limits investments to certain types of debt securities issued by the U.S. government and its agencies, corporations with investment-grade credit ratings, or commercial paper and money market funds issued by the highest quality financial and non-financial companies. We place restrictions on maturities and concentration by type and issuer. We are exposed to credit risk in the event of a default by the issuers of these securities to the extent recorded on the consolidated balance sheets. However, as of December 31, 2025 and 2024, we limited our credit risk associated with cash equivalents by placing investments with banks we believe are highly creditworthy.
We believe that the credit risk in our accounts receivable is mitigated by our credit evaluation process, relatively short collection terms, and dispersion of our customer base. We generally do not require collateral, and losses on accounts receivable have historically not been significant.
Accounts Receivable and Allowance for Expected Credit Losses
Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Customer credit terms are established prior to shipment with the general standard being net 30 days. Collateral or any other security to support payment of these receivables generally is not required.
Each reporting period, we estimate the credit loss related to accounts receivable based on a migration analysis of accounts grouped by individual receivables delinquency status and apply our historic loss rate adjusted for management's assumption of future market conditions. Any change in the allowance from new receivables acquired or changes due to credit deterioration on previously existing receivables is recorded in selling, general and administrative expenses. Write-offs of receivables considered uncollectible are deducted from the allowance. Specific accounts receivable are written off once a determination is made that the amount is uncollectible. The write-
off is recorded in the period in which the account receivable is deemed uncollectible. Recoveries are recognized when received and as a direct credit to earnings or as a reduction to the allowance for credit losses (which would indirectly reduce the loss by decreasing bad debt expense).
The following table presents the changes in the allowance for credit losses related to accounts receivable:
Year Ended December 31,
202520242023
Balance at beginning of period$880 $1,648 $36 
Charges (credits) to the allowance, net923 957 1,622 
Write-offs charged against the allowance(127)(1,554)(10)
Recoveries of amounts previously reserved(596)(171)— 
Balance at the end of the period$1,080 $880 $1,648 
The increase in accounts written off, net of recoveries during the year ended December 31, 2024 related primarily to accounts receivable with two healthcare systems.
Inventories
Inventories are valued at the lower of cost or net realizable value, computed on a first-in, first-out basis, and consisted of the following:
December 31,
20252024
Raw materials$19,097 $22,430 
Work in process13,837 — 
Finished goods112,359 57,688 
Total inventories, net of reserves$145,293 $80,118 
We expense prelaunch inventory as research and development expense in the period incurred unless objective and persuasive evidence exists that regulatory approval and subsequent commercialization of a product candidate is probable and where we also expect the future economic benefit from the sales of the product candidate to be realized. In August 2024, we received approval from the FDA for our Inspire V neurostimulator, which we began to market for sale in the U.S. in 2025.
We regularly review inventory quantities on-hand for excess and obsolete inventory and, when circumstances indicate, incur charges to write down inventories to their net realizable value. The determination of a reserve for excess and obsolete inventory involves management exercising judgment to determine the required reserve, considering future demand, product life cycles, introduction of new products, and current market conditions. The reserve for excess and obsolete inventory was $1.3 million and $1.0 million as of December 31, 2025 and 2024, respectively.
Property and Equipment
Property and equipment are stated at cost, less accumulated depreciation and amortization and consisted of the following:
December 31,
20252024
Internal-use software$33,168 $16,553 
Manufacturing equipment46,910 29,117 
Other equipment7,296 4,981 
Leasehold improvements11,768 10,057 
Construction in process24,380 24,975 
Property and equipment, cost123,522 85,683 
Less: accumulated depreciation and amortization(25,650)(13,758)
Property and equipment, net$97,872 $71,925 
Internal-use software costs are capitalized during the application development stage. Costs related to planning and post implementation activities are expensed as incurred. Capitalized internal-use software is amortized, and recognized as cost of goods sold or selling, general and administrative expenses, on a straight-line basis over the estimated useful life of three years. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the term of the lease. Construction in process is comprised primarily of manufacturing equipment. Depreciation is determined using the straight-line method over the estimated useful lives of the respective assets, generally three to ten years. Depreciation and amortization expense was $14.0 million, $6.6 million, and $2.8 million during the years ended December 31, 2025, 2024, and 2023, respectively.
Strategic Investments
For equity securities without readily determinable fair values, we have elected the measurement alternative under which we measure these investments at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. These securities are presented within other non-current assets on the consolidated balance sheets. The balance of equity securities without readily determinable fair values was $16.4 million and $10.6 million as of December 31, 2025 and 2024, respectively. During the years ended December 31, 2025 and 2024, we invested $10.1 million and $0 in minority interests of private companies, respectively. We recognized an impairment charge of $4.0 million during the year ended December 31, 2025 in other expense (income), net in the consolidated statements of operations and comprehensive income (loss) due to an observable price change of one of the equity securities that had an original carrying amount of $10.0 million. No impairment charge was recognized during the year ended December 31, 2024.
Impairment of Long-lived Assets
Long-lived assets consist primarily of property and equipment, operating lease right-of-use assets, and strategic investments are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require that an asset be tested for possible impairment, we compare the undiscounted cash flows expected to be generated by the asset to the carrying amount of the asset. If the carrying amount of the asset is not recoverable on an undiscounted cash flow basis, we determine the fair value of the asset and recognize an impairment loss to the extent the carrying amount of the asset exceeds its fair value. We determine fair value using the income approach based on the present value of expected future cash flows or other appropriate measures of estimated fair value. Our cash flow assumptions consider historical and forecasted revenue and operating costs and other relevant factors. We did not record any impairment charges on long-lived assets, other than strategic investments, during the years ended December 31, 2025, 2024, or 2023. We recorded impairment charges on strategic investments of $4.0 million, $0.0 million, and $0.4 million during the years ended December 31, 2025, 2024, and 2023, respectively.
Accrued Expenses
Accrued expenses consisted of the following:
December 31,
20252024
Payroll related$46,470 $40,162 
Income tax payable2,452 1,612 
Product warranty liability587 933 
Operating lease liabilities, current portion2,157 1,754 
Other accrued expenses7,824 5,353 
Total accrued expenses$59,490 $49,814 
The following table shows the changes in our estimated product warranty liability accrual, included in accrued liabilities:
Year Ended December 31,
202520242023
Balance at beginning of period$933 $1,100 $920 
Provisions for warranty85 593 912 
Settlements of warranty claims(431)(760)(732)
Balance at the end of the period$587 $933 $1,100 
Revenue Recognition
We derive our revenue from sales of our products in the U.S. and internationally. Customers are primarily comprised of hospitals and ambulatory surgery centers, with distributors being used in certain international locations where we do not have a direct commercial presence.
Revenues from product sales are recognized when the customer obtains control of the product, which occurs at a point in time, either upon shipment of the product or receipt of the product, depending on shipment terms. Our standard shipping terms are free on board shipping point, unless the customer requests that control and title to the inventory transfer upon delivery. In those cases where shipping and handling costs are billed to customers, we classify the amounts billed as a component of cost of goods sold.
Revenue is measured as the amount of consideration we expect to receive, adjusted for any applicable estimates of variable consideration and other factors affecting the transaction price, which is based on the invoiced price, in exchange for transferring products. All revenue is recognized when we satisfy our performance obligations under the contract. The majority of our contracts have a single performance obligation and are short term in nature.
Sales taxes and value added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of goods sold.
Variable consideration related to certain customer sales incentives is estimated based on the amounts expected to be paid based on the agreement with the customer using probability assessments.
We offer customers a limited right of return for our product in case of non-conformity or performance issues. We estimate the amount of our product sales that may be returned by our customers based on historical sales and
returns. As our historical product returns to date have been immaterial, we have not recorded a reduction in revenue related to variable consideration for product returns.
See Note 8 for disaggregated revenue by geographic area.
Cost of Goods Sold
Cost of goods sold consists primarily of acquisition costs for the components of the Inspire system, overhead costs, scrap and inventory obsolescence, warranty replacement costs, costs of supporting our digital platforms, as well as distribution-related expenses such as logistics and shipping costs, net of shipping costs charged to customers. The overhead costs include the cost of material procurement, depreciation expense for manufacturing equipment, and operations and quality supervision and management personnel, including employee compensation, stock-based compensation, supplies, and travel.
Research and Development
Research and development expenses consist primarily of product development, clinical and regulatory affairs, quality assurance, consulting services, and other costs associated with products and technologies in development. These expenses include employee compensation, including stock-based compensation, supplies, materials, prelaunch inventory, consulting, and travel expenses related to research and development programs. Clinical expenses include clinical study design, clinical site reimbursement, data management, travel expenses, and the cost of manufacturing products for clinical studies.
We expense prelaunch inventory as research and development expense in the period incurred unless objective and persuasive evidence exists that regulatory approval and subsequent commercialization of a product candidate is probable and where we also expect the future economic benefit from the sales of the product candidate to be realized.
Stock-Based Compensation
We maintain an equity incentive plan to provide long-term incentives for eligible employees, consultants, and members of the board of directors. The plan allows for the issuance of restricted stock units ("RSUs"), performance stock units ("PSUs"), and non-statutory and incentive stock options to employees, and RSUs, PSUs, and non-statutory stock options to consultants and directors. We also offer an employee stock purchase plan ("ESPP") which allows participating employees to purchase shares of our common stock at a discount through payroll deductions.
We recognize equity-based compensation expense for awards of equity instruments based on the grant date fair value of those awards as expense in the consolidated statements of operations and comprehensive income (loss). We estimate the fair value of stock options using the Black-Scholes option pricing model and the fair value of RSUs and PSUs is equal to the closing price of our common stock on the grant date. The fair value of each purchase under the employee stock purchase plan is estimated at the beginning of the offering period using the Black-Scholes option pricing model.
Stock-based compensation expense is recognized on a straight-line basis over the requisite service period, which is the vesting period or term to become eligible for a qualified retirement for stock options and RSUs, and over the vesting and performance period based on the probability of achieving the performance objectives for PSUs. We account for award forfeitures as they occur.
Advertising Expenses
We expense the costs of advertising, including promotional expenses, as incurred. Advertising expenses were $114.9 million, $94.9 million, and $100.3 million during the years ended December 31, 2025, 2024, and 2023, respectively.
Leases
Operating leases are included in operating lease right-of-use ("ROU") assets, accrued expenses, and operating lease liabilities – non-current portion in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining the present value of lease payments, we use our incremental borrowing rate based on the information available at the lease commencement date as the rate implicit in the lease is not readily determinable. The determination of our incremental borrowing rate requires management judgment based on information available at lease commencement. The operating lease ROU assets also include adjustments for prepayments, accrued lease payments, and exclude lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise such options. Operating lease cost is recognized on a straight-line basis over the expected lease term. Lease agreements that include lease and non-lease components are accounted for as a single lease component. Lease agreements with a noncancelable term of less than 12 months are not recorded on our consolidated balance sheets.
Income Taxes
We account for income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates that will be in effect when the differences are expected to reverse. Valuation allowances against deferred tax assets are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized. Prior to December 31, 2025, as we historically incurred operating losses, we recorded a full valuation allowance against our net deferred tax assets. As of December 31, 2025, we determined that it is more-likely-than-not that our federal and a majority of state deferred tax assets will be realized. As a result, we recorded a release of the valuation allowance associated with these deferred tax assets, which was due in part to achieving three years of cumulative taxable income and projected taxable income that is more than sufficient to realize our federal and a majority of state deferred tax assets. We record a federal, state, and foreign tax provision, which includes a foreign tax reserve relating to uncertain tax positions.
We use financial projections to support our net deferred tax assets, which contain significant assumptions and estimates of future operations. If such assumptions were to differ significantly, it may have a material impact on our ability to realize our deferred tax assets. At the end of each period, we will reassess the ability to realize our deferred tax assets. If it is more likely than not that we would not realize the deferred tax assets, a valuation allowance may need to be established against all or a portion of the deferred tax assets, which will result in a charge to tax expense.
Our policy is to record interest and penalty expense related to uncertain tax positions as other expense in the consolidated statements of operations and comprehensive income (loss).
Comprehensive Income (Loss)
Comprehensive income (loss) consists of net income (loss) and changes in unrealized gains and losses due to interest rate fluctuations and other external factors on investments classified as available-for-sale, and foreign currency translation adjustments. Accumulated other comprehensive income is presented in the accompanying consolidated balance sheets as a component of stockholders' equity.
Income (Loss) Per Share
Basic net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares of common stock and dilutive potential shares of common stock outstanding during the period. For the periods presented with a net loss, diluted net loss per share is
the same as basic net loss per share as all potentially dilutive shares consisting of outstanding stock options, unvested RSUs and PSUs, and shares issuable under our employee stock purchase plan were antidilutive in those periods.
Purchase Commitments
We had purchase commitments to suppliers for purchases totaling $90.5 million as of December 31, 2025.
Recent Accounting Pronouncements
In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income-Expense Disaggregation (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”). The guidance requires the disclosure of additional information related to certain costs and expenses, including amounts of inventory purchases, employee compensation, and depreciation and amortization included in each income statement line item. ASU 2024-03 also requires disclosure of the total amount of selling expenses and our definition of selling expenses. The ASU is effective for our annual reports beginning in fiscal 2027, and interim period reports beginning in fiscal 2028 either on a prospective or retrospective basis. Early adoption is permitted. We are currently evaluating the impact of adopting ASU 2024-03 on our financial statement disclosures.
In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Topic 350): Targeted Improvements to the Accounting for Internal-Use Software. This ASU modifies the criteria for when software costs may be capitalized by eliminating consideration of software project development stages and by enhancing guidance for the "probable-to-complete" threshold. This ASU is effective for our annual reports beginning in 2028, and interim periods within those annual reporting periods. Early adoption of this ASU is permitted. We are currently evaluating the impact that adoption of this ASU may have on our financial statements and disclosures.
We have reviewed and considered all other recent accounting pronouncements that have not yet been adopted and believe there are none that could potentially have a material impact on our business practices, financial condition, results of operations, or disclosures.
v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases Leases
We lease office space for our corporate headquarters under a non-cancelable operating lease. The prior corporate office leases were amended in May 2023 to increase the total space leased to approximately 106,000 square feet and to extend the noncancellable lease term through May 2035. In October 2024, we entered into an amendment on this lease which provides approximately 10,000 square feet of additional space.
We entered into a warehouse and office space lease for our corporate headquarters under a non-cancelable operating lease in August 2023. This space includes approximately 22,000 square feet and a noncancellable lease term through May 2035. In March 2024, we entered into an amendment on this lease which commenced in January 2025 which provides for approximately 18,000 square feet of additional space.
Each lease described above includes options to renew for up to two additional periods of five years each at the then-prevailing market rates. The exercises of the lease renewal options are at our sole discretion and were not included in the lease term for the calculation of the ROU assets and lease liabilities as of the lease modification date as they were not reasonably certain of exercise.
In addition to base rent in these leases, we also pay our proportionate share of the operating expenses, as defined in the leases. These payments are made monthly and adjusted annually to reflect actual charges incurred for operating expenses, such as common area maintenance, taxes, and insurance.
The following table presents the lease balances within the consolidated balance sheets:
December 31,
20252024
Right-of-use assets:
Operating lease right-of-use assets$23,532 $23,314 
Operating lease liabilities:
Accrued liabilities2,157 1,754 
Operating lease liabilities, non-current portion29,998 30,039 
Total operating lease liabilities$32,155 $31,793 
The cost components of our operating leases were as follows:
Year Ended December 31,
202520242023
Operating lease cost$3,430 $2,954 $2,166 
Short-term lease cost323 274 250 
Variable lease cost2,521 2,211 1,667 
Total lease cost$6,274 $5,439 $4,083 
Variable lease costs consist primarily of taxes, insurance, and common area maintenance costs.
Maturities of our lease liability for our operating lease are as follows as of December 31, 2025:
2026$3,196 
20273,603 
20284,152 
20294,285 
20304,422 
Thereafter21,264 
Total undiscounted lease payments40,922 
Less: imputed interest(8,767)
Present value of lease liability$32,155 
As of December 31, 2025, the remaining lease terms were 9.4 years and the weighted average discount rate was 4.9%. The operating cash outflows (inflows) from our operating leases were $3.3 million, $(3.3) million, and $2.2 million for the years ended December 31, 2025, 2024, and 2023, respectively.
v3.25.4
Employee Retirement Plan
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Employee Retirement Plan Employee Retirement Plan
We sponsor a defined contribution employee retirement plan covering all of our full-time employees. The plan allows eligible employees to defer a portion of their eligible compensation up to the maximum allowed by IRS Regulations. We make voluntary matching contributions of 50% of the first 6% of each participating employee's contribution, up to 3% of eligible earnings. Our match contributions are made to funds designated by the participant, none of which are based on Inspire common stock, and totaled $5.6 million, $4.7 million, and $3.7 million for the years ended December 31, 2025, 2024, and 2023 respectively.
v3.25.4
Stockholders' Equity
 12 Months Ended
Dec. 31, 2025
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Stockholders' Equity
Share Repurchase Programs
In August 2024, our Board of Directors authorized the repurchase of up to $150.0 million of our outstanding shares of common stock from time to time through open market transactions, privately negotiated transactions, tender offers, or other means (the “2024 share repurchase program”). We are not obligated to repurchase any specific number of shares and the program may be modified, suspended, or discontinued at any time. The share repurchase program was set to expire in August 2026, subject to the earlier termination or extension by the Board, in its sole discretion and without prior notice.
In November 2024, we entered into an accelerated share repurchase agreement (the “ASR Agreement”) with a large financial institution to repurchase common stock as part of the 2024 share repurchase program. Under the ASR Agreement, the financial institution delivered a portion of shares to us at contract inception and delivered the remaining shares at settlement. We made a prepayment of $75.0 million and received an initial delivery of 305,157 shares of common stock. We retired the initial shares delivered and recorded a $75.0 million reduction to additional paid-in capital. We accounted for the variable component of shares to be delivered under the ASR Agreement as a forward contract indexed to our common stock, which met the criteria for equity classification, and therefore, was accounted for as a component of equity.
In January 2025, we were notified of the early termination of the ASR Agreement. Upon final settlement in January 2025, we received an additional 103,886 shares of common stock from the financial institution. The final number of shares received was based on the volume-weighted average price of our common stock during the term of the ASR Agreement, less a discount and subject to adjustment pursuant to the terms of the ASR Agreement. The total shares repurchased under the ASR Agreement was 409,043 shares with the average share price of $190.29.
During 2025, we purchased an additional 442,649 shares for the remaining $75.0 million under Rule 10b5-1 under the 2024 share repurchase program. As of March 31, 2025, no amount remained available for future repurchases under the 2024 share repurchase program.
In August 2025, our Board of Directors authorized the repurchase of up to $200.0 million of our outstanding shares of common stock from time to time through open market transactions, privately negotiated transactions, tender offers, or other means (the “2025 share repurchase program”). We are not obligated to repurchase any specific number of shares and the program may be modified, suspended, or discontinued at any time. The 2025 share repurchase program will expire in August 2027, subject to the earlier termination or extension by the Board, in its sole discretion and without prior notice. During 2025, we purchased 1,076,225 shares for $100.0 million under Rule 10b5-1 under the 2025 share repurchase program. Our share repurchases in excess of issuances are subject to a 1% excise tax enacted by the Inflation Reduction Act. Any excise tax incurred is recognized as part of the cost basis of the shares acquired in the consolidated statements of equity. As of December 31, 2025, $100.0 million remained available for future repurchases under the 2025 share repurchase program.
v3.25.4
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
As of December 31, 2025, there were 4,598,570 shares reserved for issuance under the Inspire Medical Systems, Inc. 2018 Incentive Award Plan, of which 1,319,587 shares were available for issuance.
Stock-based compensation expense is recognized on a straight-line basis over the requisite service period, which is the vesting period or term to become eligible for a qualified retirement for stock options and RSUs, and over the vesting and performance period based on the probability of achieving the performance objectives for PSUs, and is reduced by actual forfeitures as they occur. If there are any modifications or cancellations of the underlying unvested securities, we may be required to accelerate, increase, or cancel any remaining unearned stock compensation expense. Future stock-based compensation expense and unearned stock-based compensation will increase to the extent that we grant additional stock-based awards.
During the year ended December 31, 2025, we recorded accelerated stock-based compensation expense of $11.2 million for employees who are retirement eligible in accordance with the implementation of changes to the treatment of equity awards under the Inspire Medical Systems, Inc. 2018 Incentive Award Plan upon the holder's death, disability, or retirement.
Stock Options
Stock options are granted to employees at the exercise price, which is equal to the closing price of our stock on the date of grant. The stock options include a four-year service period and 25% vest after the first year of service and the remainder vest in equal monthly installments over the next 36 months of service. Unvested options are forfeitable in the event of termination other than for death, disability, or qualifying retirement. Upon death, disability or qualifying retirement, all outstanding and unvested options accelerate and become fully vested. The stock options have a contractual life of ten years.
The fair value per share of options is estimated on the date of grant using the Black-Scholes option pricing model. There were no stock options granted during the year ended December 31, 2025.
Option Value and Assumptions
Year Ended December 31,
20242023
Weighted average fair value$113.56$149.70
Assumptions:
Expected term (years)
6.25
6.25
Expected volatility
58.6% - 61.0%
56.4% - 58.2%
Risk-free interest rate
3.67% - 4.71%
3.49% - 4.89%
Expected dividend yield—%—%
Expected Term — Due to our limited amount of historical exercise, forfeiture, and expiration activity, we have opted to use the "simplified method" for estimating the expected term of options, whereby the expected term equals the arithmetic average of the vesting terms and the original contractual term of the option. We will continue to analyze our expected term assumption as more historical data becomes available.
Expected Volatility — During the year ended December 31, 2024, we based expected volatility on the historic volatility of our common stock. Prior to 2024, due to our limited company specific historical and implied volatility data, we incorporated our historical stock trading volatility with those of a group of similar companies that are publicly traded for the calculation of volatility. When selecting this peer group, we generally selected companies with comparable characteristics, including enterprise value, stages of clinical development, risk profiles, position within the industry, and those with historical share price information sufficient to meet the expected life of the stock-based awards.
Risk-Free Interest Rate — The risk-free rate assumption is based on the U.S. government Treasury instruments with maturities similar to the expected term of our stock options.
Expected Dividend Yield — The expected dividend assumption is based on our history of not paying dividends and our expectation that we will not declare dividends for the foreseeable future.
Stock Option Activity
Options
Weighted Average
Exercise Price
Weighted average
remaining
contractual term
(years)
Aggregate intrinsic
value (in thousands)
Outstanding at December 31, 20222,660,734 $112.19 6.9$372,068 
Granted441,394 $257.22 
Exercised(595,188)$45.09 $105,952 
Forfeited/expired(59,799)$214.61 
Outstanding at December 31, 20232,447,141 $152.17 7.0$160,691 
Granted247,048 $177.99 
Exercised (387,856)$62.37 $49,221 
Forfeited/expired(146,184)$195.27 
Outstanding at December 31, 20242,160,149 $168.33 6.4$89,052 
Exercised(163,445)$70.31 $13,739 
Forfeited/expired(134,818)$222.71 
Outstanding at December 31, 20251,861,886 $173.07 5.4$38,524 
Exercisable at December 31, 20251,627,185 $166.07 5.1$38,524 
The aggregate intrinsic value of options exercised is the difference between the estimated fair market value of our common stock at the date of exercise and the exercise price for those options. The aggregate intrinsic value of outstanding options is the difference between the closing price as of the date outstanding and the exercise price of the underlying stock options. The total grant date fair value of options vested during the year was $38.9 million, $56.7 million and $45.7 million for the years ended December 31, 2025, 2024, and 2023, respectively. As of December 31, 2025, the amount of unearned stock-based compensation currently estimated to be expensed from now through the year 2028 related to unvested stock options is $26.4 million which we expect to recognize over a weighted average period of 1.5 years.
Restricted Stock Units
RSUs are share awards that entitle the holder to receive freely tradable shares of our common stock upon vesting. The RSUs cannot be transferred and the awards are subject to forfeiture in the event of termination other than for death, disability, or qualifying retirement. Upon death or disability, all outstanding and unvested RSUs accelerate and become fully vested and settled. Upon qualifying retirement, all outstanding and unvested RSUs remain outstanding and settle in accordance with the original vesting and payment terms applicable to such RSUs. The RSUs granted to employees include three- or four-year service periods and vest in equal installments on each anniversary of the date of grant. The RSUs granted to the board of directors include one- or three-year service periods and vest in equal installments on each anniversary of the date of grant. The fair value of the RSUs is equal to the closing price of our common stock on the grant date.
A summary of RSUs and related information is as follows:
Restricted Stock UnitsWeighted Average
Grant Date Fair Value		Aggregate Intrinsic Value (in thousands)
Unvested at December 31, 2022124,680 $213.97 $31,404 
Granted128,661 $249.58 
Vested(40,915)$214.06 $10,190 
Forfeited(11,356)$236.30 
Unvested at December 31, 2023201,070 $235.47 $40,904 
Granted614,219 $188.73 
Vested(83,702)$234.56 $16,261 
Forfeited(51,682)$205.57 
Unvested at December 31, 2024679,905 $195.63 $126,041 
Granted744,258 $167.68 
Vested(258,987)$200.59 $40,753 
Forfeited(102,985)$186.89 
Unvested at December 31, 20251,062,191 $175.68 $169,186 
The aggregate intrinsic value of unvested RSUs was based on our closing stock price on the last trading day of the period. The aggregate intrinsic value of vested RSUs was based on our closing stock price on the date of vest. As of December 31, 2025, the amount of unearned stock-based compensation currently estimated to be expensed from now through the year 2028 related to unvested RSUs is $123.5 million which we expect to recognize over a weighted average period of 1.9 years.
Performance Stock Units
We grant PSUs to officers and key employees. The number of PSUs that will ultimately be earned is based on our performance relative to pre-established goals for the respective three-year periods from the year of grant. The expense is recorded on a straight-line basis over the requisite service periods based on an estimate of the number of PSUs expected to vest. Management expectations related to the achievement of the performance goals associated with PSU grants are assessed each reporting period. The number of shares earned at the end of each of the three-year periods will vary based on actual performance, from 0% to 200% of the number of PSUs granted. If the performance conditions are not met or not expected to be met, any compensation expense recognized associated with the grant will be reversed. PSUs are subject to forfeiture in the event of termination other than a termination due to death, disability, or qualifying retirement occurring after the first 12 months of the applicable performance period. Upon such a termination due to death or disability, a prorated amount of the target number of PSUs will accelerate and become fully vested. Upon such a qualifying retirement, a prorated amount of the PSUs will be eligible to vest and settle based on the actual performance achievement in accordance with the original vesting and payment terms applicable to such PSUs.
A summary of PSUs and related information is as follows:
Performance Stock UnitsWeighted Average
Grant Date Fair Value		Aggregate Intrinsic Value (in thousands)
Unvested at December 31, 202277,472 $227.53 $19,514 
Granted95,994 $264.59 
Forfeited(4,497)$242.27 
Unvested at December 31, 2023168,969 $248.19 $34,373 
Granted184,905 $196.41 
Forfeited(30,572)$224.44 
Unvested at December 31, 2024323,302 $220.82 $59,934 
Granted236,333 $199.70 
Vested(143,518)$228.48 $26,759 
Forfeited(51,078)$213.23 
Unvested at December 31, 2025365,039 $205.20 $58,143 
The fair value of the PSUs is equal to the closing price of our common stock on the grant date. The aggregate intrinsic value of unvested PSUs was based on our closing stock price on the last trading day of the period. As of December 31, 2025, there was $26.2 million of unrecognized stock-based compensation expense related to outstanding PSUs that is expected to be recognized over a weighted average period of 1.4 years.
Employee Stock Purchase Plan
Employees may participate in our ESPP provided they meet certain eligibility requirements. The purchase price for our common stock under the terms of the ESPP is defined as 85% of the lower of the closing market price per share of our common stock on the first or last trading day of a purchase period. We issued 52,015 shares under the ESPP during 2025 and there were 1,332,425 shares available for future issuance under the ESPP as of December 31, 2025.
v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of our provision (benefit) for income taxes are as follows:
December 31,
202520242023
Current
Federal$3,708 $— $— 
State4,694 4,103 644 
Foreign624 854 603 
Total current9,026 4,957 1,247 
Deferred
Federal(71,200)— — 
State(17,532)— — 
Foreign(19)(13)— 
Total deferred(88,751)(13)— 
Total provision for income taxes$(79,725)$4,944 $1,247 
We adopted ASU No. 2023-09, Improvements to Income Tax Disclosures in fiscal year 2025 under the prospective method. Under this new standard, we disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold of 5% of the global pretax income.
The reconciliation of taxes at the federal statutory rate to our provision for income taxes are as follows for the year ended December 31, 2025:
Year Ended December 31,
2025
AmountPercent
U.S. federal statutory tax rate$13,696 21.0 %
State and local income taxes, net of federal income tax effect(1)
(10,198)(15.6)
Foreign tax effects223 0.3 
Tax credits
Research and development ("R&D") tax credits(5,066)(7.8)
Effect of cross-border tax laws (net of foreign tax credits)
Foreign-derived intangible income deduction (FDII)(776)(1.2)
Change in valuation allowance(88,137)(135.1)
Nontaxable or nondeductible items
Stock-based compensation7,409 11.4 
Executive compensation2,618 4.0 
Other506 0.8 
Total provision for income taxes$(79,725)(122.2)%
(1) State taxes in Florida, Texas, California, Pennsylvania, Massachusetts, Kentucky, Michigan and South Carolina made up the majority (greater than 50%) of the tax effect in this category.
The reconciliation of taxes at the federal statutory rate to our provision for income taxes for the years ended December 31, 2024 and 2023 are as follows:
Year Ended December 31,
20242023
Tax at federal statutory rate21.0 %21.0 %
State, net of federal benefit6.5 %4.0 %
Stock-based compensation2.1 %33.6 %
R&D tax credit(7.8)%20.6 %
Other2.2 %(4.6)%
Executive compensation4.0 %(16.3)%
Change in valuation allowance(18.9)%(64.6)%
Total9.1 %(6.3)%

Income taxes paid (refunds received) disaggregated by federal, state, foreign taxes are as follows for the year ended December 31, 2025:
Year Ended December 31,
2025
Federal$3,609 
State
California535 
Other states3,808 
Total state4,343 
Foreign372 
Total income taxes paid$8,324 

Significant components of net deferred tax assets and liabilities were as follows:
Year Ended December 31,
20252024
Deferred tax assets:
Net operating losses$3,972 $16,290 
R&D tax credits13,736 12,631 
R&D expenditures, capitalized for tax35,022 38,813 
Accruals and other5,915 4,623 
Depreciation— 177 
Lease liability7,872 7,830 
Inventory3,151 1,852 
Stock-based compensation35,871 31,097 
Total deferred tax assets105,539 113,313 
Deferred tax liabilities:
Depreciation(5,245)— 
Lease asset(5,761)(5,742)
Other comprehensive income(169)(91)
Total deferred tax liabilities(11,175)(5,833)
Net deferred tax assets94,364 107,480 
Valuation allowance(5,697)(107,467)
Total deferred income taxes$88,667 $13 
Deferred income taxes reflect the tax effects of net operating loss carryforwards, tax credit carryforwards, and the net temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.
As of December 31, 2025, we had utilized all of the gross federal net operating loss carryforwards from prior years. We had net operating loss carryforwards for state income tax purposes of $60.6 million, which will begin to expire in 2026. We also have gross R&D credit carryforwards of $14.7 million as of December 31, 2025 which will expire at various dates beginning in 2034.
Utilization of the R&D credit carryforwards may be subject to an annual limitation due to the ownership change limitations provided by Section 382 and Section 383 of the Code and similar state provisions. During the year ended December 31, 2025, we finalized an updated analysis to determine whether an ownership change had occurred
through December 31, 2024, and if a limitation exists. It was determined that December 11, 2018 was the only date that we experienced an ownership change. The study concluded that none of the $126.5 million of federal net operating losses nor the $1.7 million of federal R&D credits that were accumulated on December 11, 2018 will expire unused solely due to the limitations under Sections 382 and 383 of the Code.
Based on our analysis of all positive and negative evidence available for the year ended December 31, 2025, having demonstrated sustained profitability which is objective and verifiable, and taking into account anticipated future earnings, we concluded it is more likely than not that the majority of our U.S. federal and U.S. states net deferred tax assets will be realizable. Accordingly, we have recognized a non-recurring tax benefit of $88.8 million for the year ended December 31, 2025. As of December 31, 2025, $5.7 million of our valuation allowance remained against certain tax attributes. The valuation allowance decreased by $101.7 during the year ended December 31, 2025.
On July 4, 2025, the enactment of the One Big Beautiful Bill Act ("OBBBA") into law, marked a significant legislative development, resulting in substantial modifications to the U.S. tax code. The OBBBA influences multiple facets of taxation, including, but not limited to, bonus depreciation, the current-year expensing of research and development costs, and international tax regulations. The income taxes reported for the year ended December 31, 2025 incorporates all relevant tax provisions of this new law.
The changes to our gross unrecognized tax benefits were as follows:
Year Ended December 31,
202520242023
Balance beginning of the year$146 $146 $146 
Decrease related to the current year(40)— — 
Balance end of the year$106 $146 $146 
We file income tax returns in the applicable jurisdictions. The 2021 to 2024 tax years remain open to examination by the major taxing authorities to which we are subject. We do not expect a significant change to our unrecognized tax positions over the next 12 months.
Our policy is to record interest related to uncertain tax positions as interest expense and any penalties as other expense in our consolidated statements of operations and comprehensive income (loss). There were no interest or penalties accrued as of December 31, 2025, 2024, or 2023.
v3.25.4
Segment Reporting and Revenue Disaggregation
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting and Revenue Disaggregation Segment Reporting and Revenue Disaggregation
We operate our business as one operating segment. An operating segment is defined as a component of an enterprise for which separate discrete financial information is available and evaluated regularly by the chief operating decision maker ("CODM") in deciding how to allocate resources and in assessing performance. Our CODM is the Company's President, Chief Executive Officer, and Chair of the Board of Directors. Reportable segment information is consistent with how management reviews the business, makes investing and resource allocation decisions and assesses operating performance. Our segment revenues are derived from the sales of our product, the Inspire system, to hospitals and ambulatory surgery centers in the U.S. and in select countries in Europe and the Asia Pacific region. We do not have any intra-entity sales or transfers.
Our CODM uses consolidated net income (loss) as the measure of profit or loss. Our CODM assesses performance for the segment and allocates resources and monitors budget versus actual results using consolidated net income (loss) and operating income (loss). The monitoring of budget versus actual results are used in establishing management's compensation. The measure of segment assets is reported on the balance sheet as total consolidated assets.
Year Ended December 31,
202520242023
Revenue$911,981 $802,804 $624,799 
Less: (a)
Cost of goods sold133,225 122,986 96,576 
Research and development expense103,165 114,128 116,536 
Selling, general and administrative expense (excluding advertising expense)509,712 434,669 351,632 
Advertising expense114,925 94,938 100,326 
Operating income (loss)50,954 36,083 (40,271)
Other income (b)(14,743)(22,370)(20,365)
Income taxes(79,725)4,944 1,247 
Segment net income (loss)145,422 53,509 (21,153)
Reconciliation of profit or loss
Adjustments and reconciling items— — — 
Consolidated net income (loss)$145,422 $53,509 $(21,153)
(a) The significant expense categories and amounts align with the segment-level information that is regularly provided to our chief operating decision maker.
(b) Other income represents the consolidated amounts for interest and dividend income, interest expense, and other expense, net, as shown on our consolidated statements of operations and comprehensive income (loss).
For the years ended December 31, 2025, 2024, and 2023, depreciation and amortization expense was $14.0 million, $6.6 million, and $2.8 million, respectively, and is included within the segment expense captions of cost of goods sold, research and development expense, and selling, general and administrative expense.
For the years ended December 31, 2025, 2024, and 2023, stock-based compensation expense was $130.3 million, $116.0 million and $82.5 million, respectively, and is included within the segment expense captions of cost of goods sold, research and development expense, and selling, general and administrative expense.
Revenue by geographic region is as follows:
Year Ended December 31,
202520242023
United States$872,086 $771,040 $606,178 
All other countries39,895 31,764 18,621 
Total revenue$911,981 $802,804 $624,799 
Long-lived tangible assets by geographic location were as follows:
December 31,
20252024
United States$96,850 $71,008 
All other countries1,022 917 
Total long-lived tangible assets$97,872 $71,925 
v3.25.4
Income (Loss) Per Share
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Income (Loss) Per Share Per Share
Basic net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares of common stock and dilutive potential shares of common stock outstanding during the period. For the periods presented with a net loss, diluted net loss per share is the same as basic net loss per share as all of the following potentially dilutive shares were antidilutive in those periods.
The components of net income (loss) per share are as follows:
Year ended December 31,
202520242023
Numerator:
Net income (loss)$145,422 $53,509 $(21,153)
Denominator:
Weighted average number of common shares outstanding — basic
29,368,892 29,763,395 29,302,154 
Dilutive effect of stock options317,986 594,726 — 
Dilutive effect of restricted stock units56,059 79,514 — 
Dilutive effect of performance stock units11,480 99,263 — 
Dilutive effect of shares issuable under the ESPP2,619 6,376 — 
Weighted average number of common shares outstanding — diluted
29,757,036 30,543,274 29,302,154 
Net income (loss) per share:
Basic$4.95 $1.80 $(0.72)
Diluted$4.89 $1.75 $(0.72)
The following common stock-based awards were excluded from the computation of diluted net income (loss) per common share for the periods presented because including them would have been antidilutive:
Year Ended December 31,
202520242023
Stock options1,415,769 1,514,718 2,447,141 
Restricted stock units525,088 29,320 201,070 
Total1,940,857 1,544,038 2,648,211 
v3.25.4
Related Party Transaction
 12 Months Ended
Dec. 31, 2025
Related Party Transactions [Abstract]  
Related Party Transaction Related Party Transaction
In December 2023, we entered into an agreement with an entity controlled by our CEO (the "Entity"), pursuant to which we agreed to share the costs of a corporate suite at a sports and entertainment venue (the "Venue") (the “Suite”) (the “Cost Sharing Agreement”). In August 2023, the Entity entered into an agreement with the Venue, pursuant to which the Entity acquired certain rights to use the Suite for specified sporting and other events at the Venue through August 2026. Pursuant to this agreement, the Entity agreed to pay $0.2 million per year, with each year beginning September 1 and ending August 31, and the fee increasing by 5% for each succeeding year. Under the Cost Sharing Agreement, we will reimburse the Entity 50% of the cost of the Suite in exchange for the right to use the Suite for 50% of the specified events at the Venue through August 2026. We recognized expense of $0.3 million, $0.2 million, and $0.1 million for the use of the suite in SG&A expense in our consolidated statements of
operations and comprehensive income (loss) for the years ended December 31, 2025, 2024, and 2023, respectively.
v3.25.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
We may from time to time be involved in claims, governmental inquiries or investigations, litigation and other legal proceedings arising in the ordinary course of business, some of which may seek monetary damages, including claims for punitive damages, which may not be covered by insurance. Such matters, even if not meritorious, could result in the expenditure of significant financial and managerial resources. We evaluate all matters and record liabilities for losses from legal proceedings when we determine that it is probable that the outcome will be unfavorable and the amount, or potential range, of loss can be reasonably estimated. An adverse determination in one or more of these pending matters could have an adverse effect on our consolidated financial position, results of operations or cash flows.
On November 6, 2025, the City of Pontiac Reestablished General Employees’ Retirement System, on behalf of itself and other similarly situated investors, filed a putative securities class action in the United States District Court for the District of Minnesota against the Company and certain of its executive officers, captioned City of Pontiac Reestablished General Employees’ Retirement System v. Inspire Medical Systems, Inc., et al., Case No. 0:25‑cv‑04247‑PJS‑ECW (D. Minn.) (the “City of Pontiac Lawsuit”). The complaint alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 10b‑5 promulgated thereunder, based on purportedly materially false and misleading statements made between August 6, 2024, and August 4, 2025, regarding the launch of the Company’s Inspire V neurostimulator. The complaint further alleged that when subsequent disclosures were made concerning issues with the Inspire V launch and the Company announced its third‑quarter fiscal 2025 results, the Company’s stock price declined, purportedly causing investor losses. On December 23, 2025, the plaintiff filed a Notice of Voluntary Dismissal. On December 29, 2025, the case was administratively closed without prejudice.
On December 22, 2025, the Indiana Public Retirement System, on behalf of itself and other similarly situated investors, filed a putative securities class action in the United States District Court for the Southern District of New York against the Company and certain of its executive officers, captioned Indiana Public Retirement System v. Inspire Medical Systems, Inc., et al., Case No. 1:25‑cv‑10620 (S.D.N.Y.) (the “Indiana PRS Lawsuit”). The Indiana PRS Lawsuit arises from the same underlying subject matter as the City of Pontiac Lawsuit. It alleges the same violations of law and is based on the same or similar purportedly materially false and misleading statements made during the same class period, all of which relate to the launch of the Company’s Inspire V neurostimulator. The plaintiffs seek, among other relief, unquantified compensatory damages, together with attorneys’ fees and costs. On January 22, 2026, the Company and the individual defendants moved to transfer the case to the United States District Court for the District of Minnesota. That motion remains pending. The Company and the individual defendants intend to vigorously defend against the action. No accrual for loss has been accrued or recorded in the Company’s financial statements as of, or for the period ended, December 31, 2025 since the Company is unable to determine whether any loss ultimately will occur or to estimate the range of such loss.
On January 17, 2025, we received a civil investigative demand (“CID”) from the Department of Justice U.S. Attorney’s Office for the District of Minnesota pursuant to the False Claims Act in the course of the government’s investigation concerning allegations of false claims, including false claims arising from violations of the Anti-Kickback Statute, submitted to government payors in connection with our implant. The CID requests information relating to the marketing, promotion, and reimbursement practices associated with our products. We are cooperating with the investigation. No assurance can be given as to the timing or outcome of the government’s investigation. No amount of loss has been accrued or recorded in the Company’s financial statements as of, or for the period ended, December 31, 2025 since the Company is unable to determine whether any loss ultimately will occur or to estimate the range of such loss.
On May 30, 2025, Inspire filed a lawsuit against Nyxoah SA and its subsidiary Nyxoah, Inc. (collectively “Nyxoah”) in the United States District Court for the District of Delaware, alleging that Nyxoah's Genio product infringes on
certain of Inspire's U.S. patents related to neurostimulation therapy for obstructive sleep apnea. Inspire seeks a judgment of patent infringement and relief for such infringement, including monetary damages such as lost profits. Nyxoah has denied infringement and has asserted counterclaims seeking declaratory judgments of invalidity and non‑infringement. On December 18, 2025, Nyxoah filed three (3) petitions with the United States Patent Trial and Appeal Board seeking inter partes review (IPR) of the three patents asserted by Inspire in the lawsuit. Because these matters are in their early stages, we cannot predict the outcome or estimate the range of potential loss.
On September 15, 2025, Nyxoah filed a lawsuit against us in the United States District Court for the District of Delaware alleging that the Inspire IV and Inspire V devices infringe certain of Nyxoah’s patents. The lawsuit is in its early stages. The Company intends to defend the claims in this lawsuit vigorously and believes it has good and substantial defenses to them, but there is no guarantee that the Company will be successful in these efforts. No amount of loss has been accrued or recorded in the Company’s financial statements as of and for the period ended December 31, 2025 since the Company is unable to determine whether any loss ultimately will occur or to estimate the range of such loss.
On December 5, 2025, Nyxoah brought suit against Inspire and its wholly-owned subsidiary, Inspire Medical Systems Europe GmbH in the Unified Patent Court, Munich Division, alleging that the Inspire IV implantable neurostimulator infringes a patent owned by Nyxoah. The lawsuit is in its early stages. The Company intends to defend the claims in this lawsuit vigorously and believes it has good and substantial defenses to them, but there is no guarantee that the Company will be successful in these efforts. No amount of loss has been accrued or recorded in the Company’s financial statements as of and for the period ended December 31, 2025 since the Company is unable to determine whether any loss ultimately will occur or to estimate the range of such loss.
On January 27, 2026, a stockholder derivative lawsuit was filed in the United States District Court for the Southern District of New York, purportedly on behalf of Inspire against certain of our present and former executive officers and against all current members of the Board of Directors and Inspire (as a nominal defendant), captioned Korte v. Herbert., et al., Case No. 1:26‑cv‑680 (S.D.N.Y.). The lawsuit arises out of the same subject matter as the Indiana PRS Lawsuit described above and alleges the following claims: (1) Section 14(a) of the Exchange Act and Rule 14a-9 promulgated thereunder; (2) Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder; (3) Section 20(a) of the Exchange Act; (4) a common-law claim for breach of fiduciary duty; (5) common-law aiding and abetting; (6) unjust enrichment; and (7) waste of corporate assets. The lawsuit seeks unspecified damages. The Company and the individual defendants intend to vigorously defend against the action.
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.4
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
We recognize the need to maintain the security and confidentiality of personal information, protected health information, and other confidential data that we collect and use in connection with our business, and the importance of assessing, identifying, and managing various cybersecurity risks that may impact our business. As such, we have implemented an information security program, which includes cybersecurity risk management measures intended to protect, detect, and respond to malicious cyber activities and other security incidents that could adversely affect the confidentiality, integrity, or availability of our, or our customers’ information or information systems.
Our information security program is designed based on the National Institute of Standards and Technology (“NIST”) Cybersecurity v2.0 framework. This does not imply that we meet any particular technical standards, specifications, or requirements, only that we use the NIST framework as a guide in designing and implementing our information security program.
As part of our enterprise risk management process, we assess the various cybersecurity risks that may impact our business and implement plans and initiatives that are intended to mitigate those risks.
Key elements of our information security program include but are not limited to the following: (i) risk assessments designed to help identify material risks from cybersecurity threats to our critical systems and information; (ii) an information security team principally responsible for managing our (1) information security risk assessment processes, (2) security controls, and (3) response to cybersecurity incidents; (iii) risk assessments and security tests, conducted internally and by external security and risk audit providers with subject matter expertise, as appropriate; (iv) cybersecurity awareness training of our employees; (v) a cybersecurity incident response plan that includes procedures for responding to cybersecurity incidents; and (vi) third-party risk assessment procedures to review key third-party vendors based on our assessment of their criticality to our operations and respective risk profile and applications for information security.
We have not identified risks from known cybersecurity threats, including as a result of any prior cybersecurity incidents, that have materially affected us, including our operations, business strategy, results of operations, or financial condition. We face risks from cybersecurity threats that, if realized, are reasonably likely to materially affect us, including our operations, business strategy, results of operations, or financial condition. For more information, see the section titled “Risk Factor—Risks Related to Our Business—Failure of a key information technology system, process or site, cyberattacks, or other deficiencies in our cybersecurity could have an adverse effect on our business and operations.”
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] We recognize the need to maintain the security and confidentiality of personal information, protected health information, and other confidential data that we collect and use in connection with our business, and the importance of assessing, identifying, and managing various cybersecurity risks that may impact our business. As such, we have implemented an information security program, which includes cybersecurity risk management measures intended to protect, detect, and respond to malicious cyber activities and other security incidents that could adversely affect the confidentiality, integrity, or availability of our, or our customers’ information or information systems.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Our Board considers cybersecurity risk as part of its risk oversight function and has delegated to the Audit Committee oversight over our information security and technology risks, including oversight of management’s implementation of our information security program. The Audit Committee receives quarterly reports from our Chief Technology Officer on our information security program, including any material cybersecurity risks. Additionally, management updates the Audit Committee, where it deems appropriate, regarding any cybersecurity incidents it considers to be significant or potentially significant.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Our Board considers cybersecurity risk as part of its risk oversight function and has delegated to the Audit Committee oversight over our information security and technology risks, including oversight of management’s implementation of our information security program
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] management’s implementation of our information security program. The Audit Committee receives quarterly reports from our Chief Technology Officer on our information security program, including any material cybersecurity risks. Additionally, management updates the Audit Committee, where it deems appropriate, regarding any cybersecurity incidents it considers to be significant or potentially significant.
Cybersecurity Risk Role of Management [Text Block]
Our Board considers cybersecurity risk as part of its risk oversight function and has delegated to the Audit Committee oversight over our information security and technology risks, including oversight of management’s implementation of our information security program. The Audit Committee receives quarterly reports from our Chief Technology Officer on our information security program, including any material cybersecurity risks. Additionally, management updates the Audit Committee, where it deems appropriate, regarding any cybersecurity incidents it considers to be significant or potentially significant.
Our information security program is principally managed by our information security team, which is led by our Senior Director, Information Services and Security. Our Senior Director of Information Services and Security reports to our Vice President of Information Services, who has extensive experience with information technology governance, data management, and systems management, including managing information security and data privacy law compliance at large multinational companies. Our information security team includes professionals with deep professional experience and cybersecurity expertise, including our Senior Director of Information Services and Security. Such expertise includes applicable security and technology degrees and certifications held by information security team members, including degrees in computer science, cybersecurity, and systems engineering and management and security certifications such as COMP TIA Security+, COMP TIA Data+, and GIAC Security Essentials. We also augment our internal cybersecurity expertise by engaging security service organizations.
Our information security team takes steps to stay informed about and monitor efforts to prevent, detect, mitigate, and remediate cybersecurity risks and incidents through a variety of means, including briefings from internal security personnel; threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us; and alerts and reports produced by security tools deployed in the IT environment.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] management’s implementation of our information security program. The Audit Committee receives quarterly reports from our Chief Technology Officer on our information security program, including any material cybersecurity risks. Additionally, management updates the Audit Committee, where it deems appropriate, regarding any cybersecurity incidents it considers to be significant or potentially significant.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our Senior Director of Information Services and Security reports to our Vice President of Information Services, who has extensive experience with information technology governance, data management, and systems management, including managing information security and data privacy law compliance at large multinational companies. Our information security team includes professionals with deep professional experience and cybersecurity expertise, including our Senior Director of Information Services and Security. Such expertise includes applicable security and technology degrees and certifications held by information security team members, including degrees in computer science, cybersecurity, and systems engineering and management and security certifications such as COMP TIA Security+, COMP TIA Data+, and GIAC Security Essentials.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] management’s implementation of our information security program. The Audit Committee receives quarterly reports from our Chief Technology Officer on our information security program, including any material cybersecurity risks. Additionally, management updates the Audit Committee, where it deems appropriate, regarding any cybersecurity incidents it considers to be significant or potentially significant.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC").
In the opinion of management, all adjustments, consisting of only normal recurring adjustments that are necessary to present fairly the financial position, results of operations, and cash flows have been made. The results of operations for the year ended December 31, 2025 are not necessarily indicative of the operating results for any future periods.
Use of Estimates
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts and disclosures reported in the consolidated financial statements. We use significant judgment when making estimates related to the inventory reserves, stock-based awards, and income taxes. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates.
Cash and Cash Equivalents
Cash and Cash Equivalents
We consider all highly liquid securities, readily convertible to cash, that have original maturities of 90 days or less from the date of purchase to be cash equivalents. Cash is carried at cost, which approximates fair value, and cash equivalents, which consist of money market funds, are stated at fair value.
Foreign Currency
Foreign Currency
Our functional and reporting currency is the U.S. dollar. Our subsidiaries have functional currency in Euro and Yen. The consolidated financial statements are translated to U.S. dollars. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated using the balance sheet date exchange rate. Sales and expenses denominated in foreign currencies are translated at transaction date exchange rates. Foreign currency transaction gains and losses and the impacts of foreign currency remeasurement are recognized in other expense, net in the consolidated statements of operations and comprehensive income (loss). For the years ended December 31, 2025, 2024, and 2023, we recognized a total of $1.0 million of gains, $0.9 million of losses, and $0.2 million of losses, net, respectively. Any unrealized gains and losses due to translation
adjustments are included in accumulated other comprehensive income within stockholders' equity in the consolidated balance sheets. We had $0.1 million of unrecognized loss and $0.2 of unrecognized gain in our accumulated other comprehensive income balance as of December 31, 2025 and 2024, respectively.
Investments
Investments are classified as available-for-sale and are reported at their estimated fair market values which are based on quoted, active or inactive market prices when available. Any unrealized gains and losses due to interest rate fluctuations and other external factors are reported as a separate component of accumulated other comprehensive income within stockholders' equity. We had $0.6 million and $0.4 million of unrecognized gains in our accumulated other comprehensive income balance at December 31, 2025 and 2024, respectively. Any realized gains and losses are calculated on the specific identification method and reported net in other expense, net in the consolidated statements of operations and comprehensive income (loss). We recorded $0 of gross realized gains from the sale or maturity of available-for-sale investments during each of the years ended December 31, 2025, 2024, and 2023. We recorded $0 of gross realized losses from the sale or maturity of available-for-sale investments during each of the years ended December 31, 2025, 2024, and 2023.
As of December 31, 2025, we had no investments with a contractual maturity of greater than three years. Currently, we do not intend to sell the investments, and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost bases, which may be maturity. We do not consider those investments to be other-than-temporarily impaired as of December 31, 2025. Each reporting period, we evaluate whether declines in fair value below carrying value are due to expected credit losses, as well as our ability and intent to hold the investment until a forecasted recovery occurs. Expected credit losses, not to exceed the amount of the unrealized loss, are recorded as an allowance through other expense in the consolidated statements of operations and comprehensive income (loss). The total allowance for credit losses was $0 at both December 31, 2025 and 2024.
Fair Value of Financial Instruments
Fair Value of Financial Instruments
We measure certain financial assets and liabilities at fair value on a recurring basis, including cash equivalents and investments. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value:
Level 1: Observable inputs, such as quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2: Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly.
Level 3: Unobservable inputs that are supported by little or no market activities, which would require us to develop our own assumptions.
We classify instruments within Level 1 if quoted prices are available in active markets for identical assets, which include our money market funds and U.S. Treasury debt securities. We classify instruments in Level 2 if the instruments are valued using observable inputs to quoted market prices, benchmark yields, reported trades, broker/dealer quotes or an income approach, such as a discounted cash flow pricing model that calculates values from observable inputs such as quoted interest rates, yield curves and other observable market information. These instruments include our commercial paper, certificates of deposit, corporate debt securities and asset-backed securities. The money market funds and available-for-sale securities are held by two custodians who obtain investment prices from a third-party pricing provider that uses standard inputs (observable in the market) to models which vary by asset class.
Concentration of Credit Risk
Concentration of Credit Risk
Financial instruments, which potentially subject us to concentrations of credit risk, consist principally of cash equivalents, investments, and accounts receivable. We maintain the majority of our cash and cash equivalents in accounts with major U.S. and multi-national financial institutions, and our deposits at certain of these institutions exceed insured limits. Market conditions can impact the viability of these institutions. In the event of failure of any of the financial institutions where we maintain our cash and cash equivalents, there can be no assurance that we will be able to access uninsured funds in a timely manner or at all.
Our investment policy limits investments to certain types of debt securities issued by the U.S. government and its agencies, corporations with investment-grade credit ratings, or commercial paper and money market funds issued by the highest quality financial and non-financial companies. We place restrictions on maturities and concentration by type and issuer. We are exposed to credit risk in the event of a default by the issuers of these securities to the extent recorded on the consolidated balance sheets. However, as of December 31, 2025 and 2024, we limited our credit risk associated with cash equivalents by placing investments with banks we believe are highly creditworthy.
We believe that the credit risk in our accounts receivable is mitigated by our credit evaluation process, relatively short collection terms, and dispersion of our customer base. We generally do not require collateral, and losses on accounts receivable have historically not been significant.
Accounts Receivable and Allowance for Expected Credit Losses
Accounts Receivable and Allowance for Expected Credit Losses
Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Customer credit terms are established prior to shipment with the general standard being net 30 days. Collateral or any other security to support payment of these receivables generally is not required.
Each reporting period, we estimate the credit loss related to accounts receivable based on a migration analysis of accounts grouped by individual receivables delinquency status and apply our historic loss rate adjusted for management's assumption of future market conditions. Any change in the allowance from new receivables acquired or changes due to credit deterioration on previously existing receivables is recorded in selling, general and administrative expenses. Write-offs of receivables considered uncollectible are deducted from the allowance. Specific accounts receivable are written off once a determination is made that the amount is uncollectible. The write-
off is recorded in the period in which the account receivable is deemed uncollectible. Recoveries are recognized when received and as a direct credit to earnings or as a reduction to the allowance for credit losses (which would indirectly reduce the loss by decreasing bad debt expense).
Inventories
We expense prelaunch inventory as research and development expense in the period incurred unless objective and persuasive evidence exists that regulatory approval and subsequent commercialization of a product candidate is probable and where we also expect the future economic benefit from the sales of the product candidate to be realized. In August 2024, we received approval from the FDA for our Inspire V neurostimulator, which we began to market for sale in the U.S. in 2025.
We regularly review inventory quantities on-hand for excess and obsolete inventory and, when circumstances indicate, incur charges to write down inventories to their net realizable value. The determination of a reserve for excess and obsolete inventory involves management exercising judgment to determine the required reserve, considering future demand, product life cycles, introduction of new products, and current market conditions. The reserve for excess and obsolete inventory was
Property and Equipment Internal-use software costs are capitalized during the application development stage. Costs related to planning and post implementation activities are expensed as incurred. Capitalized internal-use software is amortized, and recognized as cost of goods sold or selling, general and administrative expenses, on a straight-line basis over the estimated useful life of three years. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the term of the lease. Construction in process is comprised primarily of manufacturing equipment. Depreciation is determined using the straight-line method over the estimated useful lives of the respective assets, generally three to ten years.
Strategic Investments
Strategic Investments
For equity securities without readily determinable fair values, we have elected the measurement alternative under which we measure these investments at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. These securities are presented within other non-current assets on the consolidated balance sheets.
Impairment of Long-lived Assets
Impairment of Long-lived Assets
Long-lived assets consist primarily of property and equipment, operating lease right-of-use assets, and strategic investments are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require that an asset be tested for possible impairment, we compare the undiscounted cash flows expected to be generated by the asset to the carrying amount of the asset. If the carrying amount of the asset is not recoverable on an undiscounted cash flow basis, we determine the fair value of the asset and recognize an impairment loss to the extent the carrying amount of the asset exceeds its fair value. We determine fair value using the income approach based on the present value of expected future cash flows or other appropriate measures of estimated fair value. Our cash flow assumptions consider historical and forecasted revenue and operating costs and other relevant factors.
Revenue Recognition
Revenue Recognition
We derive our revenue from sales of our products in the U.S. and internationally. Customers are primarily comprised of hospitals and ambulatory surgery centers, with distributors being used in certain international locations where we do not have a direct commercial presence.
Revenues from product sales are recognized when the customer obtains control of the product, which occurs at a point in time, either upon shipment of the product or receipt of the product, depending on shipment terms. Our standard shipping terms are free on board shipping point, unless the customer requests that control and title to the inventory transfer upon delivery. In those cases where shipping and handling costs are billed to customers, we classify the amounts billed as a component of cost of goods sold.
Revenue is measured as the amount of consideration we expect to receive, adjusted for any applicable estimates of variable consideration and other factors affecting the transaction price, which is based on the invoiced price, in exchange for transferring products. All revenue is recognized when we satisfy our performance obligations under the contract. The majority of our contracts have a single performance obligation and are short term in nature.
Sales taxes and value added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of goods sold.
Variable consideration related to certain customer sales incentives is estimated based on the amounts expected to be paid based on the agreement with the customer using probability assessments.
We offer customers a limited right of return for our product in case of non-conformity or performance issues. We estimate the amount of our product sales that may be returned by our customers based on historical sales and
returns. As our historical product returns to date have been immaterial, we have not recorded a reduction in revenue related to variable consideration for product returns.
Cost of Goods Sold
Cost of Goods Sold
Cost of goods sold consists primarily of acquisition costs for the components of the Inspire system, overhead costs, scrap and inventory obsolescence, warranty replacement costs, costs of supporting our digital platforms, as well as distribution-related expenses such as logistics and shipping costs, net of shipping costs charged to customers. The overhead costs include the cost of material procurement, depreciation expense for manufacturing equipment, and operations and quality supervision and management personnel, including employee compensation, stock-based compensation, supplies, and travel.
Research and Development
Research and Development
Research and development expenses consist primarily of product development, clinical and regulatory affairs, quality assurance, consulting services, and other costs associated with products and technologies in development. These expenses include employee compensation, including stock-based compensation, supplies, materials, prelaunch inventory, consulting, and travel expenses related to research and development programs. Clinical expenses include clinical study design, clinical site reimbursement, data management, travel expenses, and the cost of manufacturing products for clinical studies.
We expense prelaunch inventory as research and development expense in the period incurred unless objective and persuasive evidence exists that regulatory approval and subsequent commercialization of a product candidate is probable and where we also expect the future economic benefit from the sales of the product candidate to be realized.
Stock-Based Compensation
Stock-Based Compensation
We maintain an equity incentive plan to provide long-term incentives for eligible employees, consultants, and members of the board of directors. The plan allows for the issuance of restricted stock units ("RSUs"), performance stock units ("PSUs"), and non-statutory and incentive stock options to employees, and RSUs, PSUs, and non-statutory stock options to consultants and directors. We also offer an employee stock purchase plan ("ESPP") which allows participating employees to purchase shares of our common stock at a discount through payroll deductions.
We recognize equity-based compensation expense for awards of equity instruments based on the grant date fair value of those awards as expense in the consolidated statements of operations and comprehensive income (loss). We estimate the fair value of stock options using the Black-Scholes option pricing model and the fair value of RSUs and PSUs is equal to the closing price of our common stock on the grant date. The fair value of each purchase under the employee stock purchase plan is estimated at the beginning of the offering period using the Black-Scholes option pricing model.
Stock-based compensation expense is recognized on a straight-line basis over the requisite service period, which is the vesting period or term to become eligible for a qualified retirement for stock options and RSUs, and over the vesting and performance period based on the probability of achieving the performance objectives for PSUs. We account for award forfeitures as they occur.
Advertising Expenses
Advertising Expenses
We expense the costs of advertising, including promotional expenses, as incurred.
Leases
Leases
Operating leases are included in operating lease right-of-use ("ROU") assets, accrued expenses, and operating lease liabilities – non-current portion in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining the present value of lease payments, we use our incremental borrowing rate based on the information available at the lease commencement date as the rate implicit in the lease is not readily determinable. The determination of our incremental borrowing rate requires management judgment based on information available at lease commencement. The operating lease ROU assets also include adjustments for prepayments, accrued lease payments, and exclude lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise such options. Operating lease cost is recognized on a straight-line basis over the expected lease term. Lease agreements that include lease and non-lease components are accounted for as a single lease component. Lease agreements with a noncancelable term of less than 12 months are not recorded on our consolidated balance sheets.
Income Taxes
Income Taxes
We account for income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates that will be in effect when the differences are expected to reverse. Valuation allowances against deferred tax assets are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized. Prior to December 31, 2025, as we historically incurred operating losses, we recorded a full valuation allowance against our net deferred tax assets. As of December 31, 2025, we determined that it is more-likely-than-not that our federal and a majority of state deferred tax assets will be realized. As a result, we recorded a release of the valuation allowance associated with these deferred tax assets, which was due in part to achieving three years of cumulative taxable income and projected taxable income that is more than sufficient to realize our federal and a majority of state deferred tax assets. We record a federal, state, and foreign tax provision, which includes a foreign tax reserve relating to uncertain tax positions.
We use financial projections to support our net deferred tax assets, which contain significant assumptions and estimates of future operations. If such assumptions were to differ significantly, it may have a material impact on our ability to realize our deferred tax assets. At the end of each period, we will reassess the ability to realize our deferred tax assets. If it is more likely than not that we would not realize the deferred tax assets, a valuation allowance may need to be established against all or a portion of the deferred tax assets, which will result in a charge to tax expense.
Our policy is to record interest and penalty expense related to uncertain tax positions as other expense in the consolidated statements of operations and comprehensive income (loss).
Comprehensive Income (Loss)
Comprehensive Income (Loss)
Comprehensive income (loss) consists of net income (loss) and changes in unrealized gains and losses due to interest rate fluctuations and other external factors on investments classified as available-for-sale, and foreign currency translation adjustments. Accumulated other comprehensive income is presented in the accompanying consolidated balance sheets as a component of stockholders' equity.
Income (Loss) Per Share
Income (Loss) Per Share
Basic net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares of common stock and dilutive potential shares of common stock outstanding during the period. For the periods presented with a net loss, diluted net loss per share is
the same as basic net loss per share as all potentially dilutive shares consisting of outstanding stock options, unvested RSUs and PSUs, and shares issuable under our employee stock purchase plan were antidilutive in those periods.
Recent Accounting Pronouncements
Recent Accounting Pronouncements
In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income-Expense Disaggregation (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”). The guidance requires the disclosure of additional information related to certain costs and expenses, including amounts of inventory purchases, employee compensation, and depreciation and amortization included in each income statement line item. ASU 2024-03 also requires disclosure of the total amount of selling expenses and our definition of selling expenses. The ASU is effective for our annual reports beginning in fiscal 2027, and interim period reports beginning in fiscal 2028 either on a prospective or retrospective basis. Early adoption is permitted. We are currently evaluating the impact of adopting ASU 2024-03 on our financial statement disclosures.
In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Topic 350): Targeted Improvements to the Accounting for Internal-Use Software. This ASU modifies the criteria for when software costs may be capitalized by eliminating consideration of software project development stages and by enhancing guidance for the "probable-to-complete" threshold. This ASU is effective for our annual reports beginning in 2028, and interim periods within those annual reporting periods. Early adoption of this ASU is permitted. We are currently evaluating the impact that adoption of this ASU may have on our financial statements and disclosures.
We have reviewed and considered all other recent accounting pronouncements that have not yet been adopted and believe there are none that could potentially have a material impact on our business practices, financial condition, results of operations, or disclosures.
v3.25.4
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Schedule of Investments Classified as Available-for-sale
Our investments are classified as available-for-sale and consisted of the following:
December 31, 2025
AmortizedUnrealized GrossAggregate
CostGainsLossesFair Value
Short-Term:
Commercial paper$22,103 $25 $— $22,128 
Corporate debt securities57,694 134 — 57,828 
U.S. Treasury debt securities123,281 220 (2)123,499 
Short-term investments$203,078 $379 $(2)$203,455 
Long-Term:
Corporate debt securities$58,726 $128 $(9)$58,845 
Asset-backed securities1,198 3 — 1,201 
U.S. Treasury debt securities36,094 190 — 36,284 
Long-term investments$96,018 $321 $(9)$96,330 
December 31, 2024
AmortizedUnrealized GrossAggregate
CostGainsLossesFair Value
Short-Term:
Commercial paper$19,806 $25 $— $19,831 
Corporate debt securities47,226 80 (7)47,299 
Certificates of deposit7,684 10 — 7,694 
U.S. Treasury debt securities220,283 346 (57)220,572 
Short-term investments$294,999 $461 $(64)$295,396 
Long-Term:
Corporate debt securities$23,915 $59 $(49)$23,925 
Asset-backed securities287 — — 287 
U.S. Treasury debt securities46,818 50 (85)46,783 
Long-term investments$71,020 $109 $(134)$70,995 
The following table shows all available-for-sale investments in an unrealized loss position for which an allowance for credit losses has not been recorded and the related gross unrealized loss and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:
December 31, 2025
Less than 12 Months12 Months or GreaterTotal
Fair ValueUnrealized LossFair ValueUnrealized LossFair ValueUnrealized Loss
Corporate debt securities$13,231 $(9)$— $— $13,231 $(9)
U.S. Treasury debt securities26,474 (2)— — 26,474 (2)
Total$39,705 $(11)$— $— $39,705 $(11)
December 31, 2024
Less than 12 Months12 Months or GreaterTotal
Fair ValueUnrealized LossFair ValueUnrealized LossFair ValueUnrealized Loss
Corporate debt securities$11,728 $(56)$— $— $11,728 $(56)
U.S. Treasury debt securities69,402 (220)— — 69,402 (220)
Total$81,130 $(276)$— $— $81,130 $(276)
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis December 31, 2025 and 2024. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
Fair Value Measurements as of
December 31, 2025
Estimated
Fair Value
Level 1Level 2Level 3
Cash equivalents:
Money market funds$64,378 $64,378 $— $— 
Total cash equivalents64,378 64,378 — — 
Investments:
Commercial paper22,128 — 22,128 — 
Corporate debt securities116,673 — 116,673 — 
Asset-backed securities1,201 — 1,201 — 
U.S. Treasury debt securities159,783 159,783 — — 
Total investments299,785 159,783 140,002 — 
Total cash equivalents and investments$364,163 $224,161 $140,002 $— 
Fair Value Measurements as of
December 31, 2024
Estimated
Fair Value
Level 1Level 2Level 3
Cash equivalents:
Money market funds$59,606 $59,606 $— $— 
Total cash equivalents59,606 59,606 — — 
Investments:
Commercial paper19,831 — 19,831 — 
Corporate debt securities71,224 — 71,224 — 
Certificates of deposit7,694 — 7,694 — 
Asset-backed securities287 — 287 — 
U.S. Treasury debt securities267,355 267,355 — — 
Total investments366,391 267,355 99,036 — 
Total cash equivalents and investments$425,997 $326,961 $99,036 $— 
Schedule of Changes in Allowance for Credit Losses Related to Accounts Receivable
The following table presents the changes in the allowance for credit losses related to accounts receivable:
Year Ended December 31,
202520242023
Balance at beginning of period$880 $1,648 $36 
Charges (credits) to the allowance, net923 957 1,622 
Write-offs charged against the allowance(127)(1,554)(10)
Recoveries of amounts previously reserved(596)(171)— 
Balance at the end of the period$1,080 $880 $1,648 
Schedule of Inventory
Inventories are valued at the lower of cost or net realizable value, computed on a first-in, first-out basis, and consisted of the following:
December 31,
20252024
Raw materials$19,097 $22,430 
Work in process13,837 — 
Finished goods112,359 57,688 
Total inventories, net of reserves$145,293 $80,118 
Schedule of Property and Equipment
Property and equipment are stated at cost, less accumulated depreciation and amortization and consisted of the following:
December 31,
20252024
Internal-use software$33,168 $16,553 
Manufacturing equipment46,910 29,117 
Other equipment7,296 4,981 
Leasehold improvements11,768 10,057 
Construction in process24,380 24,975 
Property and equipment, cost123,522 85,683 
Less: accumulated depreciation and amortization(25,650)(13,758)
Property and equipment, net$97,872 $71,925 
Schedule of Accrued Expenses
Accrued expenses consisted of the following:
December 31,
20252024
Payroll related$46,470 $40,162 
Income tax payable2,452 1,612 
Product warranty liability587 933 
Operating lease liabilities, current portion2,157 1,754 
Other accrued expenses7,824 5,353 
Total accrued expenses$59,490 $49,814 
Schedule of Estimated Product Warranty Liability Accrual
The following table shows the changes in our estimated product warranty liability accrual, included in accrued liabilities:
Year Ended December 31,
202520242023
Balance at beginning of period$933 $1,100 $920 
Provisions for warranty85 593 912 
Settlements of warranty claims(431)(760)(732)
Balance at the end of the period$587 $933 $1,100 
v3.25.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Schedule of Assets and Liabilities, Lessee
The following table presents the lease balances within the consolidated balance sheets:
December 31,
20252024
Right-of-use assets:
Operating lease right-of-use assets$23,532 $23,314 
Operating lease liabilities:
Accrued liabilities2,157 1,754 
Operating lease liabilities, non-current portion29,998 30,039 
Total operating lease liabilities$32,155 $31,793 
Schedule of Components of Lease Expense
The cost components of our operating leases were as follows:
Year Ended December 31,
202520242023
Operating lease cost$3,430 $2,954 $2,166 
Short-term lease cost323 274 250 
Variable lease cost2,521 2,211 1,667 
Total lease cost$6,274 $5,439 $4,083 
Schedule of Operating Lease Maturities
Maturities of our lease liability for our operating lease are as follows as of December 31, 2025:
2026$3,196 
20273,603 
20284,152 
20294,285 
20304,422 
Thereafter21,264 
Total undiscounted lease payments40,922 
Less: imputed interest(8,767)
Present value of lease liability$32,155 
v3.25.4
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Weighted Average Assumptions for Fair Value of Options Granted
Option Value and Assumptions
Year Ended December 31,
20242023
Weighted average fair value$113.56$149.70
Assumptions:
Expected term (years)
6.25
6.25
Expected volatility
58.6% - 61.0%
56.4% - 58.2%
Risk-free interest rate
3.67% - 4.71%
3.49% - 4.89%
Expected dividend yield—%—%
Schedule of Stock Option Activity and Related Information
Stock Option Activity
Options
Weighted Average
Exercise Price
Weighted average
remaining
contractual term
(years)
Aggregate intrinsic
value (in thousands)
Outstanding at December 31, 20222,660,734 $112.19 6.9$372,068 
Granted441,394 $257.22 
Exercised(595,188)$45.09 $105,952 
Forfeited/expired(59,799)$214.61 
Outstanding at December 31, 20232,447,141 $152.17 7.0$160,691 
Granted247,048 $177.99 
Exercised (387,856)$62.37 $49,221 
Forfeited/expired(146,184)$195.27 
Outstanding at December 31, 20242,160,149 $168.33 6.4$89,052 
Exercised(163,445)$70.31 $13,739 
Forfeited/expired(134,818)$222.71 
Outstanding at December 31, 20251,861,886 $173.07 5.4$38,524 
Exercisable at December 31, 20251,627,185 $166.07 5.1$38,524 
Schedule of RSUs and Related Information
A summary of RSUs and related information is as follows:
Restricted Stock UnitsWeighted Average
Grant Date Fair Value		Aggregate Intrinsic Value (in thousands)
Unvested at December 31, 2022124,680 $213.97 $31,404 
Granted128,661 $249.58 
Vested(40,915)$214.06 $10,190 
Forfeited(11,356)$236.30 
Unvested at December 31, 2023201,070 $235.47 $40,904 
Granted614,219 $188.73 
Vested(83,702)$234.56 $16,261 
Forfeited(51,682)$205.57 
Unvested at December 31, 2024679,905 $195.63 $126,041 
Granted744,258 $167.68 
Vested(258,987)$200.59 $40,753 
Forfeited(102,985)$186.89 
Unvested at December 31, 20251,062,191 $175.68 $169,186 
Schedule of PSUs and Related Information
A summary of PSUs and related information is as follows:
Performance Stock UnitsWeighted Average
Grant Date Fair Value		Aggregate Intrinsic Value (in thousands)
Unvested at December 31, 202277,472 $227.53 $19,514 
Granted95,994 $264.59 
Forfeited(4,497)$242.27 
Unvested at December 31, 2023168,969 $248.19 $34,373 
Granted184,905 $196.41 
Forfeited(30,572)$224.44 
Unvested at December 31, 2024323,302 $220.82 $59,934 
Granted236,333 $199.70 
Vested(143,518)$228.48 $26,759 
Forfeited(51,078)$213.23 
Unvested at December 31, 2025365,039 $205.20 $58,143 
v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Provisions
The components of our provision (benefit) for income taxes are as follows:
December 31,
202520242023
Current
Federal$3,708 $— $— 
State4,694 4,103 644 
Foreign624 854 603 
Total current9,026 4,957 1,247 
Deferred
Federal(71,200)— — 
State(17,532)— — 
Foreign(19)(13)— 
Total deferred(88,751)(13)— 
Total provision for income taxes$(79,725)$4,944 $1,247 
Schedule of Income Tax Rate Reconciliation Components
The reconciliation of taxes at the federal statutory rate to our provision for income taxes are as follows for the year ended December 31, 2025:
Year Ended December 31,
2025
AmountPercent
U.S. federal statutory tax rate$13,696 21.0 %
State and local income taxes, net of federal income tax effect(1)
(10,198)(15.6)
Foreign tax effects223 0.3 
Tax credits
Research and development ("R&D") tax credits(5,066)(7.8)
Effect of cross-border tax laws (net of foreign tax credits)
Foreign-derived intangible income deduction (FDII)(776)(1.2)
Change in valuation allowance(88,137)(135.1)
Nontaxable or nondeductible items
Stock-based compensation7,409 11.4 
Executive compensation2,618 4.0 
Other506 0.8 
Total provision for income taxes$(79,725)(122.2)%
(1) State taxes in Florida, Texas, California, Pennsylvania, Massachusetts, Kentucky, Michigan and South Carolina made up the majority (greater than 50%) of the tax effect in this category.
The reconciliation of taxes at the federal statutory rate to our provision for income taxes for the years ended December 31, 2024 and 2023 are as follows:
Year Ended December 31,
20242023
Tax at federal statutory rate21.0 %21.0 %
State, net of federal benefit6.5 %4.0 %
Stock-based compensation2.1 %33.6 %
R&D tax credit(7.8)%20.6 %
Other2.2 %(4.6)%
Executive compensation4.0 %(16.3)%
Change in valuation allowance(18.9)%(64.6)%
Total9.1 %(6.3)%
Schedule of Deferred Tax Assets and Liabilities
Significant components of net deferred tax assets and liabilities were as follows:
Year Ended December 31,
20252024
Deferred tax assets:
Net operating losses$3,972 $16,290 
R&D tax credits13,736 12,631 
R&D expenditures, capitalized for tax35,022 38,813 
Accruals and other5,915 4,623 
Depreciation— 177 
Lease liability7,872 7,830 
Inventory3,151 1,852 
Stock-based compensation35,871 31,097 
Total deferred tax assets105,539 113,313 
Deferred tax liabilities:
Depreciation(5,245)— 
Lease asset(5,761)(5,742)
Other comprehensive income(169)(91)
Total deferred tax liabilities(11,175)(5,833)
Net deferred tax assets94,364 107,480 
Valuation allowance(5,697)(107,467)
Total deferred income taxes$88,667 $13 
Schedule of Changes to Gross Unrecognized Tax Benefits
The changes to our gross unrecognized tax benefits were as follows:
Year Ended December 31,
202520242023
Balance beginning of the year$146 $146 $146 
Decrease related to the current year(40)— — 
Balance end of the year$106 $146 $146 
Schedule of Income Taxes Paid
Income taxes paid (refunds received) disaggregated by federal, state, foreign taxes are as follows for the year ended December 31, 2025:
Year Ended December 31,
2025
Federal$3,609 
State
California535 
Other states3,808 
Total state4,343 
Foreign372 
Total income taxes paid$8,324 
v3.25.4
Segment Reporting and Revenue Disaggregation (Tables)
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Schedule of Segment Information The measure of segment assets is reported on the balance sheet as total consolidated assets.
Year Ended December 31,
202520242023
Revenue$911,981 $802,804 $624,799 
Less: (a)
Cost of goods sold133,225 122,986 96,576 
Research and development expense103,165 114,128 116,536 
Selling, general and administrative expense (excluding advertising expense)509,712 434,669 351,632 
Advertising expense114,925 94,938 100,326 
Operating income (loss)50,954 36,083 (40,271)
Other income (b)(14,743)(22,370)(20,365)
Income taxes(79,725)4,944 1,247 
Segment net income (loss)145,422 53,509 (21,153)
Reconciliation of profit or loss
Adjustments and reconciling items— — — 
Consolidated net income (loss)$145,422 $53,509 $(21,153)
(a) The significant expense categories and amounts align with the segment-level information that is regularly provided to our chief operating decision maker.
(b) Other income represents the consolidated amounts for interest and dividend income, interest expense, and other expense, net, as shown on our consolidated statements of operations and comprehensive income (loss).
Schedule of Revenue by Geographic Region
Revenue by geographic region is as follows:
Year Ended December 31,
202520242023
United States$872,086 $771,040 $606,178 
All other countries39,895 31,764 18,621 
Total revenue$911,981 $802,804 $624,799 
Schedule of Long-Lived Assets by Geographic Areas
Long-lived tangible assets by geographic location were as follows:
December 31,
20252024
United States$96,850 $71,008 
All other countries1,022 917 
Total long-lived tangible assets$97,872 $71,925 
v3.25.4
Income (Loss) Per Share (Tables)
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Schedule of dilutive securities excluded from computations of diluted weighted average shares outstanding
The following common stock-based awards were excluded from the computation of diluted net income (loss) per common share for the periods presented because including them would have been antidilutive:
Year Ended December 31,
202520242023
Stock options1,415,769 1,514,718 2,447,141 
Restricted stock units525,088 29,320 201,070 
Total1,940,857 1,544,038 2,648,211 
Schedule of Earnings Per Share, Basic and Diluted
The components of net income (loss) per share are as follows:
Year ended December 31,
202520242023
Numerator:
Net income (loss)$145,422 $53,509 $(21,153)
Denominator:
Weighted average number of common shares outstanding — basic
29,368,892 29,763,395 29,302,154 
Dilutive effect of stock options317,986 594,726 — 
Dilutive effect of restricted stock units56,059 79,514 — 
Dilutive effect of performance stock units11,480 99,263 — 
Dilutive effect of shares issuable under the ESPP2,619 6,376 — 
Weighted average number of common shares outstanding — diluted
29,757,036 30,543,274 29,302,154 
Net income (loss) per share:
Basic$4.95 $1.80 $(0.72)
Diluted$4.89 $1.75 $(0.72)
v3.25.4
Summary of Significant Accounting Policies - Foreign Currency (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounting Policies [Abstract]      
Foreign currency losses $ (1.0) $ 0.9 $ 0.2
Foreign currency gains included in accumulated other comprehensive income $ 0.1 $ (0.2)  
v3.25.4
Summary of Significant Accounting Policies - Components of Investments Classified as Available-for-Sale (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Short-Term:    
Amortized Cost $ 203,078 $ 294,999
Aggregate Fair Value 203,455 295,396
Long-Term:    
Amortized Cost 96,018 71,020
Aggregate Fair Value 96,330 70,995
Short-term    
Short-Term:    
Unrealized Gross Gains 379 461
Unrealized Gross Losses (2) (64)
Long-Term:    
Unrealized Gross Gains 379 461
Unrealized Gross Losses (2) (64)
Long-term    
Short-Term:    
Unrealized Gross Gains 321 109
Unrealized Gross Losses (9) (134)
Long-Term:    
Unrealized Gross Gains 321 109
Unrealized Gross Losses (9) (134)
Commercial paper    
Short-Term:    
Amortized Cost 22,103 19,806
Aggregate Fair Value 22,128 19,831
Commercial paper | Short-term    
Short-Term:    
Unrealized Gross Gains 25 25
Unrealized Gross Losses 0 0
Long-Term:    
Unrealized Gross Gains 25 25
Unrealized Gross Losses 0 0
Corporate debt securities    
Short-Term:    
Amortized Cost 57,694 47,226
Aggregate Fair Value 57,828 47,299
Long-Term:    
Amortized Cost 58,726 23,915
Aggregate Fair Value 58,845 23,925
Corporate debt securities | Short-term    
Short-Term:    
Unrealized Gross Gains 134 80
Unrealized Gross Losses 0 (7)
Long-Term:    
Unrealized Gross Gains 134 80
Unrealized Gross Losses 0 (7)
Corporate debt securities | Long-term    
Short-Term:    
Unrealized Gross Gains 128 59
Unrealized Gross Losses (9) (49)
Long-Term:    
Unrealized Gross Gains 128 59
Unrealized Gross Losses (9) (49)
U.S. Treasury debt securities    
Short-Term:    
Amortized Cost 123,281 220,283
Aggregate Fair Value 123,499 220,572
Long-Term:    
Amortized Cost 36,094 46,818
Aggregate Fair Value 36,284 46,783
U.S. Treasury debt securities | Short-term    
Short-Term:    
Unrealized Gross Gains 220 346
Unrealized Gross Losses (2) (57)
Long-Term:    
Unrealized Gross Gains 220 346
Unrealized Gross Losses (2) (57)
U.S. Treasury debt securities | Long-term    
Short-Term:    
Unrealized Gross Gains 190 50
Unrealized Gross Losses 0 (85)
Long-Term:    
Unrealized Gross Gains 190 50
Unrealized Gross Losses 0 (85)
Certificates of deposit    
Short-Term:    
Amortized Cost   7,684
Aggregate Fair Value   7,694
Certificates of deposit | Short-term    
Short-Term:    
Unrealized Gross Gains   10
Unrealized Gross Losses   0
Long-Term:    
Unrealized Gross Gains   10
Unrealized Gross Losses   0
Asset-backed securities    
Long-Term:    
Amortized Cost 1,198 287
Aggregate Fair Value 1,201 287
Asset-backed securities | Long-term    
Short-Term:    
Unrealized Gross Gains 3 0
Unrealized Gross Losses 0 0
Long-Term:    
Unrealized Gross Gains 3 0
Unrealized Gross Losses $ 0 $ 0
v3.25.4
Summary of Significant Accounting Policies - Gross Unrealized Loss and Fair Value, Aggregated by Investment (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Debt Securities, Available-for-sale [Line Items]    
Fair value - less than 12 months $ 39,705 $ 81,130
Unrealized loss - less than 12 month (11) (276)
Fair value - 12 months or greater 0 0
Unrealized loss - 12 months or greater 0 0
Fair value - total 39,705 81,130
Unrealized loss - total (11) (276)
Corporate debt securities    
Debt Securities, Available-for-sale [Line Items]    
Fair value - less than 12 months 13,231 11,728
Unrealized loss - less than 12 month (9) (56)
Fair value - 12 months or greater 0 0
Unrealized loss - 12 months or greater 0 0
Fair value - total 13,231 11,728
Unrealized loss - total (9) (56)
U.S. Treasury debt securities    
Debt Securities, Available-for-sale [Line Items]    
Fair value - less than 12 months 26,474 69,402
Unrealized loss - less than 12 month (2) (220)
Fair value - 12 months or greater 0 0
Unrealized loss - 12 months or greater 0 0
Fair value - total 26,474 69,402
Unrealized loss - total $ (2) $ (220)
v3.25.4
Summary of Significant Accounting Policies - Investments (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounting Policies [Abstract]      
Unrecognized gain in accumulated other comprehensive income $ (600,000) $ (400,000)  
Realized gains (losses) 0 0 $ 0
Investments with maturity greater than two year 0    
Allowance for credit losses $ 0 $ 0  
v3.25.4
Summary of Significant Accounting Policies - Fair Value of Financial Instruments (Narrative) (Details)
 12 Months Ended
Dec. 31, 2025
custodian
Accounting Policies [Abstract]  
Number of custodians 2
v3.25.4
Summary of Significant Accounting Policies - Fair Value of Financial Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Cash equivalents:    
Total cash equivalents $ 64,378 $ 59,606
Investments:    
Total investments 299,785 366,391
Total cash equivalents and investments 364,163 425,997
Commercial paper    
Investments:    
Total investments 22,128 19,831
Corporate debt securities    
Investments:    
Total investments 116,673 71,224
Certificates of deposit    
Investments:    
Total investments   7,694
Asset-backed securities    
Investments:    
Total investments 1,201 287
U.S. Treasury debt securities    
Investments:    
Total investments 159,783 267,355
Money market funds    
Cash equivalents:    
Total cash equivalents 64,378 59,606
Level 1    
Cash equivalents:    
Total cash equivalents 64,378 59,606
Investments:    
Total investments 159,783 267,355
Total cash equivalents and investments 224,161 326,961
Level 1 | Commercial paper    
Investments:    
Total investments 0 0
Level 1 | Corporate debt securities    
Investments:    
Total investments 0 0
Level 1 | Certificates of deposit    
Investments:    
Total investments   0
Level 1 | Asset-backed securities    
Investments:    
Total investments 0 0
Level 1 | U.S. Treasury debt securities    
Investments:    
Total investments 159,783 267,355
Level 1 | Money market funds    
Cash equivalents:    
Total cash equivalents 64,378 59,606
Level 2    
Cash equivalents:    
Total cash equivalents 0 0
Investments:    
Total investments 140,002 99,036
Total cash equivalents and investments 140,002 99,036
Level 2 | Commercial paper    
Investments:    
Total investments 22,128 19,831
Level 2 | Corporate debt securities    
Investments:    
Total investments 116,673 71,224
Level 2 | Certificates of deposit    
Investments:    
Total investments   7,694
Level 2 | Asset-backed securities    
Investments:    
Total investments 1,201 287
Level 2 | U.S. Treasury debt securities    
Investments:    
Total investments 0 0
Level 2 | Money market funds    
Cash equivalents:    
Total cash equivalents 0 0
Level 3    
Cash equivalents:    
Total cash equivalents 0 0
Investments:    
Total investments 0 0
Total cash equivalents and investments 0 0
Level 3 | Commercial paper    
Investments:    
Total investments 0 0
Level 3 | Corporate debt securities    
Investments:    
Total investments 0 0
Level 3 | Certificates of deposit    
Investments:    
Total investments   0
Level 3 | Asset-backed securities    
Investments:    
Total investments 0 0
Level 3 | U.S. Treasury debt securities    
Investments:    
Total investments 0 0
Level 3 | Money market funds    
Cash equivalents:    
Total cash equivalents $ 0 $ 0
v3.25.4
Summary of Significant Accounting Policies - Changes in the Allowance for Credit Losses Related to Accounts Receivable (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
healthcare_system
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Accounts Receivable, Allowance for Credit Loss [Roll Forward]      
Balance at beginning of period $ 880 $ 1,648 $ 36
Charges (credits) to the allowance, net 923 957 1,622
Write-offs charged against the allowance (127) (1,554) (10)
Recoveries of amounts previously reserved (596) (171) 0
Balance at end of period $ 1,080 $ 880 $ 1,648
Number of healthcare systems | healthcare_system 2    
v3.25.4
Summary of Significant Accounting Policies - Inventories (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Accounting Policies [Abstract]    
Raw materials $ 19,097 $ 22,430
Work in process 13,837 0
Finished goods 112,359 57,688
Total inventories, net of reserves 145,293 80,118
Reserve for excess and obsolete inventory $ 1,300 $ 1,000
v3.25.4
Summary of Significant Accounting Policies - Property and Equipment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Property and Equipment      
Property and equipment, cost $ 123,522 $ 85,683  
Less: accumulated depreciation and amortization (25,650) (13,758)  
Property and equipment, net 97,872 71,925  
Depreciation and amortization expenses 14,000 6,600 $ 2,800
Internal-use software      
Property and Equipment      
Property and equipment, cost $ 33,168 16,553  
Estimated useful lives 3 years    
Manufacturing equipment      
Property and Equipment      
Property and equipment, cost $ 46,910 29,117  
Other equipment      
Property and Equipment      
Property and equipment, cost 7,296 4,981  
Leasehold improvements      
Property and Equipment      
Property and equipment, cost 11,768 10,057  
Construction in process      
Property and Equipment      
Property and equipment, cost $ 24,380 $ 24,975  
Minimum      
Property and Equipment      
Estimated useful lives 3 years    
Maximum      
Property and Equipment      
Estimated useful lives 10 years    
v3.25.4
Summary of Significant Accounting Policies - Strategic Investments (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
security
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Debt and Equity Securities, FV-NI [Line Items]      
Equity securities without readily determinable fair value $ 16,400 $ 10,600  
Minority interest investment in a private company 10,118 250 $ 250
Impairment of strategic investment 4,046 0 0
Private Company One      
Debt and Equity Securities, FV-NI [Line Items]      
Minority interest investment in a private company $ 10,100 0  
Equity securities | security 1    
One Equity Security With Original Carrying Amount of $10.0 Million      
Debt and Equity Securities, FV-NI [Line Items]      
Equity securities without readily determinable fair value $ 10,000    
Strategic Investments      
Debt and Equity Securities, FV-NI [Line Items]      
Impairment of strategic investment $ 4,000 $ 0 $ 400
v3.25.4
Summary of Significant Accounting Policies - Impairment of Long-lived Assets (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Debt and Equity Securities, FV-NI [Line Items]      
Impairment charges $ 0 $ 0 $ 0
Equity securities without readily determinable fair value, impairment loss 4,046,000 0 0
Strategic Investments      
Debt and Equity Securities, FV-NI [Line Items]      
Equity securities without readily determinable fair value, impairment loss $ 4,000,000 $ 0 $ 400,000
v3.25.4
Summary of Significant Accounting Policies - Accrued Expenses (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Accounting Policies [Abstract]    
Payroll related $ 46,470 $ 40,162
Income tax payable 2,452 1,612
Product warranty liability 587 933
Operating lease liabilities, current portion $ 2,157 $ 1,754
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] Total accrued expenses Total accrued expenses
Other accrued expenses $ 7,824 $ 5,353
Total accrued expenses $ 59,490 $ 49,814
v3.25.4
Summary of Significant Accounting Policies - Estimated Product Warranty Accrual (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounting Policies [Abstract]      
Balance at beginning of period $ 933 $ 1,100 $ 920
Provisions for warranty 85 593 912
Settlements of warranty claims (431) (760) (732)
Balance at the end of the period $ 587 $ 933 $ 1,100
v3.25.4
Summary of Significant Accounting Policies - Advertising Expenses (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Advertising Expenses      
Advertising expense $ 114.9 $ 94.9 $ 100.3
v3.25.4
Summary of Significant Accounting Policies - Purchase Commitments (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Accounting Policies [Abstract]  
Commitments to suppliers for inventory purchases $ 90.5
v3.25.4
Leases - Narrative (Details)
ft² in Thousands, $ in Millions
 1 Months Ended 12 Months Ended
Aug. 31, 2023
ft²
renewal_option
May 31, 2023
ft²
renewal_option
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Oct. 31, 2024
ft²
Mar. 31, 2024
ft²
Leases [Abstract]              
Operating lease, office space (in square feet) | ft² 22 106       10 18
Number of renewal options | renewal_option 2 2          
Lease renewal term 5 years 5 years          
Remaining lease term     9 years 4 months 24 days        
Discount rate     4.90%        
Operating lease payments (proceeds), net | $     $ 3.3 $ (3.3) $ 2.2    
v3.25.4
Leases - Schedule of Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Right-of-use assets:    
Operating lease right-of-use assets $ 23,532 $ 23,314
Operating lease liabilities:    
Accrued liabilities $ 2,157 $ 1,754
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] Accrued Liabilities, Current Accrued Liabilities, Current
Operating lease liabilities, non-current portion $ 29,998 $ 30,039
Total operating lease liabilities $ 32,155 $ 31,793
v3.25.4
Leases - Schedule of Components of Lease Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]      
Operating lease cost $ 3,430 $ 2,954 $ 2,166
Short-term lease cost 323 274 250
Variable lease cost 2,521 2,211 1,667
Total lease cost $ 6,274 $ 5,439 $ 4,083
v3.25.4
Leases - Schedule of Operating Lease Maturities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
2026 $ 3,196  
2027 3,603  
2028 4,152  
2029 4,285  
2030 4,422  
Thereafter 21,264  
Total undiscounted lease payments 40,922  
Less: imputed interest (8,767)  
Present value of lease liability $ 32,155 $ 31,793
v3.25.4
Employee Retirement Plan (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Retirement Benefits [Abstract]      
Employer matching contribution, percent of employee's contribution 50.00%    
Employee contribution, maximum eligible for employer match, percent 6.00%    
Employer matching contribution, percent of employees' earnings 3.00%    
Employer discretionary contribution $ 5.6 $ 4.7 $ 3.7
v3.25.4
Stockholders' Equity (Details) - USD ($)
$ / shares in Units, $ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Jan. 31, 2025
Nov. 30, 2024
Jan. 31, 2025
Dec. 31, 2025
Aug. 31, 2025
Mar. 31, 2025
Aug. 31, 2024
2024 Share Repurchase Program              
Accelerated Share Repurchases [Line Items]              
Share repurchase program, authorized             $ 150.0
Stock repurchased and retired during period, (in shares)       442,649      
Accelerated share repurchase of common stock       $ 75.0      
Share repurchase program, remaining authorized, amount           $ 0.0  
Accelerated Share Repurchase Agreement              
Accelerated Share Repurchases [Line Items]              
ASR Agreement, receipt (payment)   $ (75.0)          
Stock repurchased and retired during period, (in shares) 103,886 305,157 409,043        
Accelerated share repurchase of common stock   $ 75.0          
Shares acquired, average cost (in dollars per share)     $ 190.29        
2025 Share Repurchase Program              
Accelerated Share Repurchases [Line Items]              
Share repurchase program, authorized         $ 200.0    
Stock repurchased and retired during period, (in shares)       1,076,225      
Accelerated share repurchase of common stock       $ 100.0      
Share repurchase program, remaining authorized, amount       $ 100.0      
v3.25.4
Stock-Based Compensation - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Additional expense $ 11.2    
Granted (in shares)   247,048 441,394
Fair value of options vested 38.9 $ 56.7 $ 45.7
Unrecognized stock-based compensation $ 26.4    
Stock options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Service period 4 years    
Contractual life of stock options 10 years    
Weighted average recognition period 1 year 6 months    
Stock options | Vesting after first year of service      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Percentage of shares to vest 25.00%    
Stock options | Vesting in three years      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period 36 months    
Restricted Stock Units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Unrecognized stock-based compensation $ 123.5    
Weighted average recognition period 1 year 10 months 24 days    
Restricted Stock Units | Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Service period 3 years    
Restricted Stock Units | Minimum | Directors      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Service period 1 year    
Restricted Stock Units | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Service period 4 years    
Restricted Stock Units | Maximum | Directors      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Service period 3 years    
Performance stock units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Service period 12 months    
Unrecognized stock-based compensation $ 26.2    
Weighted average recognition period 1 year 4 months 24 days    
Revenue goal, performance period 3 years    
Performance stock units | Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Performance target, percentage 0.00%    
Performance stock units | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Performance target, percentage 200.00%    
Equity Incentive Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares authorized (in shares) 4,598,570    
Number of shares available for issuance (in shares) 1,319,587    
v3.25.4
Stock-Based Compensation - Schedule of Assumptions Used to Calculate Fair Value of Options (Details) - Stock options - $ / shares
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Weighted average assumptions    
Weighted average fair value (in dollars per share) $ 113.56 $ 149.70
Expected term (years) 6 years 3 months  
Expected volatility 58.60% 56.40%
Expected volatility 61.00% 58.20%
Risk-free interest rate 3.67% 3.49%
Risk-free interest rate 4.71% 4.89%
Expected dividend yield 0.00% 0.00%
Minimum    
Weighted average assumptions    
Expected term (years)   6 years 3 months
v3.25.4
Stock-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Options        
Outstanding at beginning of the year (in shares) 2,160,149 2,447,141 2,660,734  
Granted (in shares)   247,048 441,394  
Exercised (in shares) (163,445) (387,856) (595,188)  
Forfeited/expired (in shares) (134,818) (146,184) (59,799)  
Outstanding at ending of the year (in shares) 1,861,886 2,160,149 2,447,141 2,660,734
Exercisable (in shares) 1,627,185      
Weighted Average Exercise Price        
Outstanding, beginning of the period (in dollars per share) $ 168.33 $ 152.17 $ 112.19  
Granted (in dollars per share)   177.99 257.22  
Exercised (in dollars per share) 70.31 62.37 45.09  
Forfeited/expired (in dollars per share) 222.71 195.27 214.61  
Outstanding, end of the period (in dollars per share) 173.07 $ 168.33 $ 152.17 $ 112.19
Exercisable (in dollars per share) $ 166.07      
Weighted average remaining contractual term (years)        
Outstanding (in years) 5 years 4 months 24 days 6 years 4 months 24 days 7 years 6 years 10 months 24 days
Exercisable (in years) 5 years 1 month 6 days      
Aggregate intrinsic value        
Outstanding, beginning of period $ 89,052 $ 160,691 $ 372,068  
Exercised 13,739 49,221 105,952  
Outstanding, end of period 38,524 $ 89,052 $ 160,691 $ 372,068
Exercisable $ 38,524      
v3.25.4
Stock-Based Compensation - Schedule of Restricted Stock Units (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Restricted Stock Units      
Forfeited (in shares)   (30,572) (4,497)
Restricted Stock Units      
Restricted Stock Units      
Unvested at Beginning of period (in shares) 679,905 201,070 124,680
Granted (in shares) 744,258 614,219 128,661
Vested (in shares) (258,987) (83,702) (40,915)
Forfeited (in shares) (102,985) (51,682) (11,356)
Unvested at End of period (in shares) 1,062,191 679,905 201,070
Weighted Average Grant Date Fair Value      
Unvested at Beginning of period (in dollars per share) $ 195.63 $ 235.47 $ 213.97
Granted (in dollars per share) 167.68 188.73 249.58
Vested (in dollars per share) 200.59 234.56 214.06
Forfeited (in dollars per share) 186.89 205.57 236.30
Unvested at End of Period (in dollars per share) $ 175.68 $ 195.63 $ 235.47
Aggregate intrinsic value      
Unvested, Beginning of period $ 126,041 $ 40,904 $ 31,404
Vested 40,753 16,261 10,190
Unvested, End of period $ 169,186 $ 126,041 $ 40,904
v3.25.4
Stock-Based Compensation - Schedule of Performance Stock Units (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Performance Stock Units      
Forfeited (in shares)   (30,572) (4,497)
Aggregate intrinsic value      
Unrecognized stock-based compensation $ 26,400    
Performance stock units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Revenue goal, performance period 3 years    
Service period 12 months    
Performance Stock Units      
Unvested at Beginning of period (in shares) 323,302 168,969 77,472
Granted (in shares) 236,333 184,905 95,994
Vested (in shares) (143,518)    
Unvested at End of period (in shares) 365,039 323,302 168,969
Weighted Average Grant Date Fair Value      
Unvested at Beginning of period (in dollars per share) $ 220.82 $ 248.19 $ 227.53
Granted (in dollars per share) 199.70 196.41 264.59
Vested (in dollars per share) 228.48    
Forfeited (in dollars per share) 213.23 224.44 242.27
Unvested at End of Period (in dollars per share) $ 205.20 $ 220.82 $ 248.19
Aggregate intrinsic value      
Unvested, Beginning of period $ 59,934 $ 34,373 $ 19,514
Vested 26,759    
Unvested, End of period 58,143 $ 59,934 $ 34,373
Unrecognized stock-based compensation $ 26,200    
Weighted average recognition period 1 year 4 months 24 days    
Performance stock units | Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Performance target, percentage 0.00%    
Performance stock units | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Performance target, percentage 200.00%    
v3.25.4
Stock-Based Compensation - Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan
 12 Months Ended
Dec. 31, 2025
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Employee stock purchase plan, percent 85.00%
Issuance of common stock for employee stock purchase plan (in shares) 52,015
Number of shares reserved for issuance (in shares) 1,332,425
v3.25.4
Income Taxes - Schedule of Income Tax Provision (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current      
Federal $ 3,708 $ 0 $ 0
State 4,694 4,103 644
Foreign 624 854 603
Total current 9,026 4,957 1,247
Deferred      
Federal (71,200) 0 0
State (17,532) 0 0
Foreign (19) (13) 0
Total deferred (88,751) (13) 0
Total provision for income taxes $ (79,725) $ 4,944 $ 1,247
v3.25.4
Income Taxes - Schedule of Tax Reconciliation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Amount      
U.S. federal statutory tax rate $ 13,696    
State and local income taxes, net of federal income tax effect (10,198)    
Foreign tax effects 223    
Research and development ("R&D") tax credits (5,066)    
Foreign-derived intangible income deduction (FDII) (776)    
Change in valuation allowance (88,137)    
Stock-based compensation 7,409    
Executive compensation 2,618    
Other 506    
Total provision for income taxes $ (79,725) $ 4,944 $ 1,247
Percent      
U.S. federal statutory tax rate (as a percent) 21.00% 21.00% 21.00%
State and local income taxes, net of federal income tax effect (as a percent) (15.60%) 6.50% 4.00%
Foreign tax effects (as a percent) 0.30%    
Research and development ("R&D") tax credits (as a percent) (7.80%) (7.80%) 20.60%
Foreign-derived intangible income deduction (FDII) (1.20%)    
Changes in valuation allowances (as a percent) (135.10%) (18.90%) (64.60%)
Stock-based compensation (as a percent) 11.40% 2.10% 33.60%
Executive compensation (as a percent) 4.00%    
Other (as a percent) 0.80% 2.20% (4.60%)
Total provision for income taxes (122.20%) 9.10% (6.30%)
v3.25.4
Income Taxes - Schedule of Reconciliation of Taxes at the Federal Statutory Rate (Details)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Tax at federal statutory rate 21.00% 21.00% 21.00%
State, net of federal benefit (15.60%) 6.50% 4.00%
Stock-based compensation 11.40% 2.10% 33.60%
R&D tax credit (7.80%) (7.80%) 20.60%
Other 0.80% 2.20% (4.60%)
Executive compensation   4.00% (16.30%)
Change in valuation allowance (135.10%) (18.90%) (64.60%)
Total provision for income taxes (122.20%) 9.10% (6.30%)
v3.25.4
Income Taxes - Schedule of Income Taxes Paid (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
Income Tax Examination [Line Items]  
Federal $ 3,609
State 4,343
Foreign 372
Total income taxes paid 8,324
California  
Income Tax Examination [Line Items]  
State 535
Other states  
Income Tax Examination [Line Items]  
State $ 3,808
v3.25.4
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Deferred tax assets:    
Net operating losses $ 3,972 $ 16,290
R&D tax credits 13,736 12,631
R&D expenditures, capitalized for tax 35,022 38,813
Accruals and other 5,915 4,623
Depreciation 0 177
Lease liability 7,872 7,830
Inventory 3,151 1,852
Stock-based compensation 35,871 31,097
Total deferred tax assets 105,539 113,313
Deferred tax liabilities:    
Depreciation (5,245) 0
Lease asset (5,761) (5,742)
Other comprehensive income (169) (91)
Total deferred tax liabilities (11,175) (5,833)
Net deferred tax assets 94,364 107,480
Valuation allowance (5,697) (107,467)
Total deferred income taxes $ 88,667 $ 13
v3.25.4
Income Taxes - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 11, 2018
Operating Loss Carryforwards [Line Items]        
Non-recurring tax adjustment (benefit) $ (88,800,000)      
Valuation allowance 5,697,000 $ 107,467,000    
(Decrease) increase of valuation allowance (101,700,000)      
Significant change to unrecognized tax benefits over the next 12 months 0      
Penalties and interest accrued 0 $ 0 $ 0  
R&D credit        
Operating Loss Carryforwards [Line Items]        
Credit carryforwards 14,700,000     $ 1,700,000
Federal        
Operating Loss Carryforwards [Line Items]        
Net operating loss carryforwards       $ 126,500,000
State        
Operating Loss Carryforwards [Line Items]        
Net operating loss carryforwards $ 60,600,000      
v3.25.4
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Unrecognized Tax Benefits [Roll Forward]      
Balance beginning of the year $ 146 $ 146 $ 146
Decrease related to the current year (40) 0 0
Balance end of the year $ 106 $ 146 $ 146
v3.25.4
Segment Reporting and Revenue Disaggregation - Narrative (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
segment
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Segment Reporting [Abstract]      
Number of operating segments | segment 1    
Number of reportable segments | segment 1    
Depreciation and amortization expenses | $ $ 14,000 $ 6,600 $ 2,800
Stock-based compensation expense | $ $ 130,259 $ 116,007 $ 82,470
v3.25.4
Segment Reporting and Revenue Disaggregation - Schedule of Segment Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Revenue $ 911,981 $ 802,804 $ 624,799
Operating expenses:      
Cost of goods sold 133,225 122,986 96,576
Research and development expense 103,165 114,128 116,536
Advertising expense 114,900 94,900 100,300
Operating income (loss) 50,954 36,083 (40,271)
Other income (14,743) (22,370) (20,365)
Income taxes (79,725) 4,944 1,247
Net income (loss) 145,422 53,509 (21,153)
Reconciliation of profit or loss      
Consolidated net income (loss) 145,422 53,509 (21,153)
Operating Segment      
Segment Reporting Information [Line Items]      
Revenue 911,981 802,804 624,799
Operating expenses:      
Cost of goods sold 133,225 122,986 96,576
Research and development expense 103,165 114,128 116,536
Selling, general and administrative expense (excluding advertising expense) 509,712 434,669 351,632
Advertising expense 114,925 94,938 100,326
Operating income (loss) 50,954 36,083 (40,271)
Other income (14,743) (22,370) (20,365)
Income taxes (79,725) 4,944 1,247
Operating Segment | Operating Segments      
Operating expenses:      
Net income (loss) 145,422 53,509 (21,153)
Reconciliation of profit or loss      
Consolidated net income (loss) 145,422 53,509 (21,153)
Operating Segment | Eliminations And Reconciling Items      
Operating expenses:      
Net income (loss) 0 0 0
Reconciliation of profit or loss      
Consolidated net income (loss) $ 0 $ 0 $ 0
v3.25.4
Segment Reporting and Revenue Disaggregation - Revenue by Geographic Region (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting and Significant Customers      
Total revenue $ 911,981 $ 802,804 $ 624,799
United States      
Segment Reporting and Significant Customers      
Total revenue 872,086 771,040 606,178
All other countries      
Segment Reporting and Significant Customers      
Total revenue $ 39,895 $ 31,764 $ 18,621
v3.25.4
Segment Reporting and Revenue Disaggregation - Long-lived Tangible Assets by Geographic Location (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Segment Reporting and Significant Customers    
Total long-lived tangible assets $ 97,872 $ 71,925
United States    
Segment Reporting and Significant Customers    
Total long-lived tangible assets 96,850 71,008
All other countries    
Segment Reporting and Significant Customers    
Total long-lived tangible assets $ 1,022 $ 917
v3.25.4
Income Per Share - Schedule of Net Income (Loss) Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Numerator:      
Net income (loss) $ 145,422 $ 53,509 $ (21,153)
Denominator:      
Weighted average number of common shares outstanding - basic (in shares) 29,368,892 29,763,395 29,302,154
Weighted average number of common shares outstanding - diluted (in shares) 29,757,036 30,543,274 29,302,154
Net income per share:      
Basic (in dollars per share) $ 4.95 $ 1.80 $ (0.72)
Diluted (in dollars per share) $ 4.89 $ 1.75 $ (0.72)
Stock options      
Denominator:      
Dilutive effect of dilutive shares (in shares) 317,986 594,726 0
Restricted stock units      
Denominator:      
Dilutive effect of dilutive shares (in shares) 56,059 79,514 0
Performance stock units      
Denominator:      
Dilutive effect of dilutive shares (in shares) 11,480 99,263 0
Shares issuable under the ESPP      
Denominator:      
Dilutive effect of dilutive shares (in shares) 2,619 6,376 0
v3.25.4
Income Per Share - Schedule of Dilutive Securities Excluded from Computations (Details) - shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Loss Per Share      
Antidilutive securities excluded from computation of diluted weighted average shares outstanding (in shares) 1,940,857 1,544,038 2,648,211
Stock options      
Loss Per Share      
Antidilutive securities excluded from computation of diluted weighted average shares outstanding (in shares) 1,415,769 1,514,718 2,447,141
Restricted stock units      
Loss Per Share      
Antidilutive securities excluded from computation of diluted weighted average shares outstanding (in shares) 525,088 29,320 201,070
v3.25.4
Related Party Transaction (Details) - Related Party - USD ($)
$ in Millions
 1 Months Ended 12 Months Ended
Dec. 31, 2023
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Related Party Transaction [Line Items]        
Cost Sharing Agreement, for corporate suite annual amount due from other party $ 0.2      
Cost Sharing Agreement, corporate suite annual fee increase, percentage 5.00%      
Cost Sharing Agreement, reimbursement payable in exchange for use, of suite, percent 50.00%      
Cost Sharing Agreement, right to use suite, percentage 50.00%      
Cost Sharing Agreement        
Related Party Transaction [Line Items]        
Cost for usage of suite   $ 0.3 $ 0.2 $ 0.1
v3.25.4
Commitments and Contingencies (Details)
Dec. 18, 2025
claim
patent
Dec. 31, 2025
USD ($)
Loss Contingencies [Line Items]    
Loss contingency accrual   $ 0
Pending Litigation    
Loss Contingencies [Line Items]    
Petitions filed | claim 3  
Alleged patents infringed | patent 3  
Loss contingency accrual   $ 0