Inogen, Inc

Welcome to Inogen's third quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. Following management's prepared remarks, we will hold a Q&A session. To ask a question at that time, please press star followed by one on your touchtone phone. If anyone has difficulty hearing the conference, please press star zero for operator assistance. As a reminder, this conference is being recorded today, November 5, 2025. I'd now like to turn the call over to Lorna Williams, Senior Vice President of Investor Relations and Strategic Planning. Please go ahead.

Thank you all for participating in today's call. Joining me are President and CEO Kevin Smith and CFO Mike Bork. Earlier today, Inogen released financial results for the third quarter of 2025. The earnings release is available in the investor relations section of the company's website along with a supplemental financial package. As a reminder, the information presented today will include forward-looking statements, including, without limitation, statements about our growth prospects and strategy for 2025 and beyond, expectations related to our financial results for the fourth quarter and full year 2025, progress of our strategic initiatives, including innovation, our expectations regarding the market for our products, and our business and supply and demand for our products in both the short-term and long-term. The forward-looking statements in this call are based on information currently available to us as of today's date, November 5th, 2025. These forward-looking statements are only predictions and involve risks and uncertainties that are set forth in more details in our most recent periodic reports filed with the Security and Exchange Commission. Actual results may vary, and we disclaim any obligation to update these forward-looking statements except as it may be required by law. During the call, we will also present certain financial information on a non-GAAP basis. Management believes that non-GAAP financial measures taken in conjunction with U.S. GAAP financial measures provide useful information in both management and investors by excluding certain non-cash items and other expenses that are not indicative of Inogen's core operating results. Management uses non-GAAP measures internally to understand, manage, and evaluate our business and make operating decisions. Reconciliations between U.S. GAAP and non-GAAP results are presented in tables within our earnings release. With that, I will turn the call over to Inogen's President and CEO, Kevin Smith.

Good afternoon, and thank you for joining our third quarter 2025 conference call. Today I'll share more detail on our progress across our three strategic priorities, driving top line growth, advancing profitability, and expanding our innovation pipeline. Afterwards, Mike will provide further financial details and our updated outlook. Our first strategic priority is to drive top-line growth, and I am pleased to report that this quarter marked our seventh consecutive period of mid-single-digit revenue growth as we delivered over $92 million in total revenue. Continued market conversion from portable oxygen tanks to POCs fueled year-over-year unit growth of more than 15%, reflecting steady execution and increasing market adoption. domestic b2b channel delivered strong performance with seven percent year-over-year growth driven by disciplined commercial execution and a differentiated market leading product portfolio international b2b was a standout contributor achieving 19 year-over-year growth as we advanced our strategy to expand into high opportunity global markets the team has continued to do a great job deepening dme relationships and securing international tenders these efforts are enhancing our brand visibility, expanding our reach, and reinforcing our position as a trusted global oxygen therapy partner. International expansion remains a key pillar of our long-term growth strategy. The global COPD market is large and growing, and the need for long-term oxygen therapy is underdiagnosed. And we see significant opportunity to leverage our portfolio breadth, brand reputation, and local partnerships to reach more patients outside the U.S. As health systems continue shifting care into the home, we believe international markets will be a sustained growth driver for Imogen in the years ahead. Collectively, these results bolster confidence as we execute our turnaround strategy. With seven consecutive quarters of mid-single digit growth, we are establishing a track record of consistent execution and delivery. We are reiterating revenue guidance for the year. Looking ahead, we remain focused on accelerating growth within the large and under-penetrated COPD market, which represents a $600 million long-term conversion opportunity. Building on our commitment to top-line growth, we are more focused than ever on advancing our path to profitability, our second key priority. Through a combination of operational excellence and disciplined cost management, we continue to strengthen our financial foundation this quarter. In the third quarter, we delivered meaningful operating leverage with operating expenses down 1.4% year over year and adjusted EBITDA of $2.3 million. This marks our third consecutive quarter of adjusted EBITDA profitability and the fifth adjusted EBITDA profitable quarter out of the last six, highlighting the durability of our model and consistency of execution. We also generated positive operating cash flow of $2.2 million, or $4.6 million, excluding one-time legal and settlement expenses, demonstrating improved working capital efficiency and prudent cost control. Given this inflection point, we now expect full-year adjusted EBITDA to be approximately $2 million, compared to our prior expectation of breakeven. This upward revision reflects sustained revenue growth, operating discipline, and continued progress towards sustainable profitability. We have made all of this progress while continuing to prioritize our R&D and expand our innovation pipeline, our last strategic priority. In the third quarter, this included our work to launch the Voxy5, demonstrating that our partnership with UL Medical continues to enable portfolio expansion and drive our broader respiratory care ambitions. Let me share more about Voxy5. our newest stationary oxygen concentrator. This product launch is progressing well, and we're seeing positive early market reception, particularly in our B2B channel, where we previously did not have a stationary offering. This is an important milestone as our DME partners typically provide new patients with both stationary and portable oxygen concentrators. Having two strong products in the portfolio allows us to reach new customers and deepen relationships with existing partners. As a reminder, Voxy5 is a meaningful extension of our oxygen therapy portfolio, complementing our portable solutions and enabling us to serve a broader range of patients in a home care setting. This product reflects the strength of our innovation pipeline and our ability to deliver high-quality, cost-effective solutions. The device provides one to five liters per minute of continuous flow oxygen in a compact, quiet, and durable design, making it an excellent option for patients who need a reliable and affordable second unit for use in multiple rooms. Lastly, turning to Semiox, our solution for effective and fatigue-free bronchial decongestion, we recently began our limited market release of Semiox in the U.S. as communicated earlier this year. It is the first step in our process to build support for reimbursement and advance our efforts towards broad commercialization. We are thoughtfully laying the groundwork for a scalable and sustainable commercial launch. Over time, this could position Semiox as a differentiated solution that enhances patient outcomes, deepens our engagement with clinicians, and expands our participation across the broader respiratory care continuum. To conclude, the innovation we delivered this quarter reflects our ongoing commitments to advancing respiratory care through meaningful product developments, greater affordability, and better outcomes for patients who rely on oxygen therapy every day. With that, I will pass the call over to Mike for an overview of our financial results. Mike?