Inogen Inc
For the period ended Sep 30, 2026. Filed Nov 9, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 9, 2026
INGN$6.12+1.4%Stored close · as of Nov 9, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-07.
0001294133-26-000034
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-09.
0001294133-26-000043
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 134 previous paragraphs and 142 current paragraphs.
59 unchanged; 48 reworded; 35 added; 24 removed; 3 previous and 0 current paragraphs rearranged.
Tables are not compared: 21 previous and 28 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (35)
Current report
our ability to achieve the anticipated benefits of the sale of our Rental Business (defined below);
Current report
On September 29, 2026, we entered into an Asset Purchase Agreement, or the Purchase Agreement, with Rotech Healthcare Inc., or Rotech, pursuant to which we agreed to sell to Rotech certain assets used or held for use solely in the operation of our United States oxygen rental business, or the Rental Business, and to assist in transferring related patient records, or the Transaction. On November 2, 2026, we completed the Transaction for an aggregate purchase price of up to $24.8 million, payable in six installments commencing on January 4, 2027 and subject to a post-closing reconciliation. During the three months ended September 30, 2026, we determined that the Rental Business met the held-for-sale and discontinued operations accounting criteria. Accordingly, beginning in the third quarter of 2026, we reported the results of the Rental Business and the related cash flows as discontinued operations in the consolidated statements of comprehensive loss and consolidated statements of cash flows, respectively. The related held-for-sale assets and the remaining assets and liabilities of the Rental Business that were not included in the sale have been reported as assets and liabilities of discontinued operations in the consolidated balance sheets. These changes have been applied to all periods presented.
Current report
On November 5, 2026, our Board of Directors approved a cost reduction program intended to better align our cost structure and organizational resources with our go-forward operations following the divestiture of our U.S. rental business and with our product strategy. The program is expected to include workforce reductions, facility-related actions, and other cost efficiency initiatives designed to reduce operating expenses and improve organizational efficiency. We expect to substantially complete these actions by the end of 2027.
Current report
Unless otherwise noted, amounts, percentages, and discussions included below reflect the results of operations and financial conditions from our continuing operations. See Note 3 to our consolidated financial statements for additional information on discontinued operations.
Current report
Gross margin percentage decreased to 44.1% for the three months ended September 30, 2026 from 45.7% for the three months ended September 30, 2025. The decrease was driven by lower average selling prices and channel mix.
Current report
Impairment charge
Current report
Impairment charge for the three months ended September 30, 2026 was the result of a drop in our public stock price, which resulted in an impairment charge to goodwill.
Current report
Income tax provision (benefit)
Current report
Loss from continuing operations
Current report
Loss from continuing operations increased $11.2 million, or 309.5%, for the three months ended September 30, 2026 from the three months ended September 30, 2025. The increase in loss from continuing operations was primarily related to the impairment charge to goodwill.
Current report
Loss from discontinued operations, net of tax
Current report
Loss from discontinued operations, net of tax decreased $0.3 million, or 19.0%, for the three months ended September 30, 2026 from the three months ended September 30, 2025.
Current report
Comparison of nine months ended September 30, 2026 and 2025
Current report
Impairment charge
Current report
Impairment charge for the nine months ended September 30, 2026 was the result of a drop in our public stock price, which resulted in an impairment charge to goodwill.
Current report
Loss from continuing operations
Current report
Loss from continuing operations increased $12.2 million, or 92.9%, for the nine months ended September 30, 2026 from the nine months ended September 30, 2025. The increase in loss from continuing operations was primarily related to impairment charge to goodwill.
Current report
Loss from discontinued operations, net of tax
Current report
Loss from discontinued operations, net of tax increased $0.5 million, or 19.1%, for the nine months ended September 30, 2026 from the nine months ended September 30, 2025.
Current report
On November 2, 2026, we completed the Transaction for an aggregate purchase price of up to $24.8 million, payable in six installments commencing on January 4, 2027 and subject to a post-closing reconciliation based on the actual assets transferred and administrative fees for patient transfers completed following the closing. Because the consideration is payable over time, we are subject to the credit risk of Rotech. If Rotech fails to make, delays, or disputes any installment payment, or if the post-closing reconciliation results in lower consideration than we anticipate, including because fewer patients transfer than we expect, we may receive less than the full consideration.
Current report
We expect to incur cash expenditures in connection with the cost reduction program, primarily related to employee severance and other termination-related costs, facility-related costs and other implementation costs. We are currently evaluating the amount and timing of these expenditures and are unable to reasonably estimate such amounts at this time. While implementation of the program is expected to result in near-term cash expenditures, we expect the program to generate approximately $20 million of annualized cost savings, with approximately half of the savings to be realized in the fourth quarter of 2026 and the remainder throughout 2027.
Current report
Operating activities of continuing operations
Current report
Investing activities of continuing operations
Current report
For the nine months ended September 30, 2026, we invested $20.9 million in the purchases of marketable securities and $1.2 million for the purchases of property and equipment, partially offset by $ 21.7 million we received from maturities of marketable securities.
Current report
We supplement the reporting of our financial information determined under U.S. GAAP with certain non-GAAP financial measures, including adjusted gross profit; adjusted sales and marketing expense; adjusted research and development expense; adjusted general and administrative expense; adjusted impairment charge; adjusted operating income (loss); adjusted net earnings (loss) from continuing operations; and adjusted net earnings (loss) per diluted share from continuing operations. Adjusted EBITDA has also historically been used by management and provided to investors as a supplemental measure for evaluating operating performance. Beginning in the third quarter of 2026 and following the divestiture of our rental business, we are using adjusted net earnings (loss) and adjusted diluted earnings (loss) per share as our primary non-GAAP profitability measures for purposes of communicating our financial outlook. Management believes adjusted net earnings (loss) and adjusted diluted earnings (loss) per share provide more useful information regarding our go-forward financial performance and aligns with how management evaluates the performance and prospects of the continuing business.
Current report
Management believes adjusted measures described above are important indicators of our operations because they exclude items that may not be indicative of or are unrelated to our core operating results and provide a baseline for analyzing trends in our underlying businesses and provide meaningful information to assist investors and shareholders in understanding our financial results and assessing our prospects for future performance. Management also uses these non-GAAP financial measures for reviewing the operating results and analyzing potential future business trends in connection with our budget process and bases certain management incentive compensation on these non-GAAP financial measures.
Current report
These adjusted financial measures should not be considered in isolation or as a substitute for reported gross profit, selling and marketing expense, research and development expense, general and administrative expense, impairment charge; operating income (loss), net earnings (loss) from continuing operations, and net earnings (loss) per diluted share from continuing operations, the most directly comparable GAAP financial measures. These non-GAAP financial measures are an additional way of viewing aspects of our operations when viewed with our GAAP results and the reconciliations to corresponding GAAP financial measures at the end of the discussion of Results of Operations below. We strongly encourage investors and shareholders to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. The weighted-average diluted shares outstanding used in the calculation of adjusted net earnings (loss) per diluted share from continuing operations are the same as those used in the calculation of reported net earnings (loss) per diluted share from continuing operations for the respective period.
Current report
The following are examples of the types of adjustments that may be included in a period:
Current report
Amortization of intangible assets. Periodic amortization expense related to purchased intangible assets.
Current report
Stock-based compensation. Non-cash compensation expense associated with equity awards granted to employees and directors that may vary based on factors that are not directly related to our operating performance during the period, including the timing, valuation and vesting of equity awards and fluctuations in our stock price.
Current report
Impairment charge. Non-cash charges recognized to reduce the carrying value of goodwill, intangible assets, long-lived assets, or other assets when their carrying amounts are determined not to be recoverable or to exceed their estimated fair values, as applicable.
Current report
Legal and settlement expenses. Legal fees, settlement costs, and other expenses associated with certain litigation, disputes, regulatory matters, or other legal proceedings that management considers outside the ordinary course of our operations.
Current report
Income tax impact of adjustments. Represents the tax impact related to the non-GAAP adjustments listed above.
Current report
(1) Represents third-party advisory, legal, and other professional fees incurred in connection with stockholder engagement matters and proxy-related activities that are separate from our ordinary-course investor relations activities.
Current report
(2) No income tax effect has been recorded for the non-GAAP adjustments due to the valuation allowance recorded against our domestic and certain foreign deferred tax assets.
Removed paragraphs (24)
Previous report
our assessment and expectations regarding reimbursement rates, future rounds of competitive bidding, Centers for Medicare and Medicaid Services changes to Home Use of Oxygen national coverage determination and how those changes are implemented, and future changes in rental revenue;
Previous report
Rental revenue decreased $1.5 million, or 11.8%, for the three months ended June 30, 2026 from the three months ended June 30, 2025. The decrease in rental revenue was primarily related to fewer patients on service.
Previous report
U.S. rentals decreased 11.8% for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily related to fewer patients on service.
Previous report
Cost of rental revenue decreased $0.6 million, or 8.1%, for the three months ended June 30, 2026 from the three months ended June 30, 2025. The decrease in cost of rental revenue was primarily attributable to fewer patients on service.
Previous report
Gross margin on rental revenue decreased to 40.6% for the three months ended June 30, 2026 from 43.0% for the three months ended June 30, 2025, primarily due to higher logistics costs per rental patient.
Previous report
Net loss
Previous report
Net loss decreased $0.3 million, or 7.3%, for the three months ended June 30, 2026 from the three months ended June 30, 2025. The decrease in net loss was primarily related to an increase in sales revenue and an increase in gross margin percentage.
Previous report
Comparison of six months ended June 30, 2026 and 2025
Previous report
Rental revenue decreased $2.7 million, or 9.8%, for the six months ended June 30, 2026 from the six months ended June 30, 2025. The decrease in rental revenue was primarily related to fewer patients on service.
Previous report
U.S. rentals decreased 9.8% for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily related to fewer patients on service.
Previous report
Cost of rental revenue decreased $1.4 million, or 8.9%, for the six months ended June 30, 2026 from the six months ended June 30, 2025. The decrease in cost of rental revenue was primarily attributable to fewer patients on service.
Previous report
Gross margin on rental revenue decreased to 42.6% for the six months ended June 30, 2026 from 43.2% for the six months ended June 30, 2025, primarily due to higher logistics costs per rental patient.
Previous report
Income tax benefit
Previous report
Net Loss
Previous report
Net loss increased $1.9 million, or 17.9%, for the six months ended June 30, 2026 from the six months ended June 30, 2025. The increase in net loss was primarily related to an increase in operating expense.
Previous report
Operating activities
Previous report
Investing activities
Previous report
For the six months ended June 30, 2025, we invested $18.7 million in the purchase of marketable securities and $5.9 million in the production and purchase of rental assets and other property and equipment.
Previous report
EBITDA and Adjusted EBITDA are financial measures that are not calculated in accordance with U.S. GAAP. We define EBITDA as net loss excluding interest income, interest expense, taxes and depreciation and amortization. Adjusted EBITDA also excludes stock-based compensation, change in fair value of earnout liability, acquisition-related expenses, and restructuring-related and other charges. Below, we have provided a reconciliation of EBITDA and Adjusted EBITDA to our net loss, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP. EBITDA and Adjusted EBITDA should not be considered alternatives to a net loss or any other measure of financial performance calculated and presented in accordance with U.S. GAAP. Our EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures of other organizations because other organizations may not calculate EBITDA and Adjusted EBITDA in the same manner as we calculate these measures.
Previous report
Our uses of EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results as reported under U.S. GAAP. Some of these limitations are:
Previous report
EBITDA and Adjusted EBITDA do not reflect our cash expenditures for capital equipment or other contractual commitments;
Previous report
although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect capital expenditure requirements for such replacements;
Previous report
EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs;
Previous report
In evaluating EBITDA and Adjusted EBITDA, we anticipate that in the future we will incur expenses within these categories similar to this presentation. Our presentation of EBITDA and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by certain expenses. When evaluating our financial results, EBITDA and Adjusted EBITDA should be considered alongside other financial performance measures, including U.S. GAAP results.
Reworded paragraphs (48)
Previous wording
The following discussion and analysis of the financial condition and results of our operations should be in conjunction with the consolidated financial statements and related notes elsewhere in this Quarterly Report on Form 10-Q. This discussion contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, that are based on our management’s beliefs and assumptions and on information currently available to our management. The forward-looking statements are contained principally in this Management’s Discussion and Analysis of Financial Condition and Results of Operations and in the section entitled “Risk Factors” of our Annual Report on Form 10-K and our subsequently filed Quarterly Reports on Form 10-Q filed with the SEC. Forward-looking statements include, but are not limited to, statements concerning the following:
Current wording
The following discussion and analysis of the financial condition and results of our operations should be read in conjunction with the consolidated financial statements and related notes elsewhere in this Quarterly Report on Form 10-Q. This discussion contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, that are based on our management’s beliefs and assumptions and on information currently available to our management. The forward-looking statements are contained principally in this Management’s Discussion and Analysis of Financial Condition and Results of Operations and in the section entitled “Risk Factors” of our Annual Report on Form 10-K and our subsequently filed Quarterly Reports on Form 10-Q filed with the SEC. Forward-looking statements include, but are not limited to, statements concerning the following:
Previous wording
the impact of expense inflation on the components we use in our products, and the impact of inflation of the ability of our customers to afford our products;
Current wording
the impact of expense inflation on the components we use in our products, and the impact of inflation on the ability of our customers to afford our products;
Previous wording
our expectation that our existing capital resources and the cash to be generated from expected product sales and rentals will be sufficient to meet our projected operating and investing requirements for at least the next 12 months.
Current wording
our expectation that our existing capital resources and the cash to be generated from expected sales will be sufficient to meet our projected operating and investing requirements for at least the next 12 months.
Previous wording
Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. We discuss these risks in greater detail in the sections entitled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q, and our Annual Report on Form 10-K filed with the SEC on February 27, 2026 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 filed with the SEC on May 8, 2026. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this Quarterly Report on Form 10-Q may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.
Current wording
Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. We discuss these risks in greater detail in the sections entitled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q, and our Annual Report on Form 10-K filed with the SEC on February 27, 2026 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026 filed with the SEC on May 8, 2026 and August 7, 2026, respectively. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this Quarterly Report on Form 10-Q may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.
Previous wording
“AURORA,” “Inogen,” “Inogen One,” “Inogen One G3,” “G4,” “G5,” “Oxygen.Anytime.Anywhere,” “Intelligent Delivery Technology,” “Inogen At Home,” “Inogen Rove,” “Inogen Rove 4,” “Rove,” “Inogen Rove 6”, the Inogen design and “VOXI”, are registered trademarks with the United States Patent and Trademark Office of Inogen, Inc. We own trademark registrations for the mark “Inogen” in Argentina, Australia, Bermuda, Canada, Chile, China, Columbia, Ecuador, Hong Kong, South Korea, Malaysia, Mexico, Europe (European Union Registration), the United Kingdom, Iceland, India, Indonesia, Israel, Japan, Kuwait, New Zealand, Norway, Dominican Republic, Paraguay, Peru, Philippines, Turkey, Singapore, South Africa, Switzerland, the UAE, Uruguay, and Vietnam. We own a pending application for the mark “Inogen” in Thailand. We own a trademark registration for the mark “イノジェン” in Japan. We own trademark registrations for the marks “印诺真” and “艾诺根” in China. We own trademark registrations for the mark “Inogen One” in Australia, Canada, China, South Korea, Mexico, Europe (European Union Registration), and the United Kingdom. We own a trademark registration for the mark “Satellite Conserver” in Canada. We own trademark registrations for the mark “Inogen At Home” in Europe (European Union Registration) and the United Kingdom. We own trademark registrations for the mark “G4” in Europe (European Union Registration) and the United Kingdom. We own trademark registrations for the marks “Inogen Rove 4” and “Inogen Rove 6” in Europe (European Union Registration) and the United Kingdom. We own trademark registrations for the mark “G5” in Europe (European Union Registration) and the United Kingdom. We own pending applications for the marks “Inogen Rove 4” and “Inogen Rove 6” in Canada. We own trademark registrations for the mark “Rove” in Argentina, Australia, China, Colombia, Europe (European Union Registration), India, Indonesia, Mexico, Saudi Arabia, South Korea, and the United Kingdom. We own a pending application for the mark “Rove” in Canada. We own trademark registrations for the mark “Inogen Rove” in Argentina, Australia, Brazil, China, Colombia, Europe (European Union Registration), India, Indonesia, Mexico, Saudi Arabia, South Korea, and the United Kingdom. We own a pending application for the mark “Inogen Rove” in Canada. We own trademark registrations for the Inogen design in Bolivia and China. We own a trademark registration for the mark “إنوجن” in Saudi Arabia. We own a pending application for the Inogen One G5 design in Brazil. We own a trademark registration for “Inogen Simeox” in China. We own a trademark registration for the mark “VOXI” in Europe (European Union Registration). We own a trademark registration for AURORA in Europe (European Union Registration). Other service marks, trademarks, and trade names referred to in this Quarterly Report on Form 10-Q are the property of their respective owners. “PHYSIOASSIST,” the Physio-Assist logo, “SIMEOX,” and the Pissenlit…
Excerpt shortened here; the source contains the full paragraph.
Current wording
“AURORA,” “Inogen,” “Inogen One,” “Inogen One G3,” “G4,” “G5,” “Oxygen.Anytime.Anywhere,” “Intelligent Delivery Technology,” “Inogen At Home,” “Inogen Rove,” “Inogen Rove 4,” “Rove,” “Inogen Rove 6”, the Inogen design and “VOXI”, are registered trademarks with the United States Patent and Trademark Office of Inogen, Inc. We own trademark registrations for the mark “Inogen” in Argentina, Australia, Bermuda, Canada, Chile, China, Colombia, Ecuador, Hong Kong, South Korea, Malaysia, Mexico, Europe (European Union Registration), the United Kingdom, Iceland, India, Indonesia, Israel, Japan, Kuwait, New Zealand, Norway, Dominican Republic, Paraguay, Peru, Philippines, Turkey, Singapore, South Africa, Switzerland, the UAE, Uruguay, and Vietnam. We own a pending application for the mark “Inogen” in Thailand. We own a trademark registration for the mark “イノジェン” in Japan. We own trademark registrations for the marks “印诺真” and “艾诺根” in China. We own trademark registrations for the mark “Inogen One” in Australia, Canada, China, South Korea, Mexico, Europe (European Union Registration), and the United Kingdom. We own a trademark registration for the mark “Satellite Conserver” in Canada. We own trademark registrations for the mark “Inogen At Home” in Europe (European Union Registration) and the United Kingdom. We own trademark registrations for the mark “G4” in Europe (European Union Registration) and the United Kingdom. We own trademark registrations for the marks “Inogen Rove 4” and “Inogen Rove 6” in Europe (European Union Registration) and the United Kingdom. We own trademark registrations for the mark “G5” in Europe (European Union Registration) and the United Kingdom. We own pending applications for the marks “Inogen Rove 4” and “Inogen Rove 6” in Canada. We own trademark registrations for the mark “Rove” in Argentina, Australia, China, Colombia, Europe (European Union Registration), India, Indonesia, Mexico, Saudi Arabia, South Korea, and the United Kingdom. We own a pending application for the mark “Rove” in Canada. We own trademark registrations for the mark “Inogen Rove” in Argentina, Australia, Brazil, China, Colombia, Europe (European Union Registration), India, Indonesia, Mexico, Saudi Arabia, South Korea, and the United Kingdom. We own a pending application for the mark “Inogen Rove” in Canada. We own trademark registrations for the Inogen design in Bolivia and China. We own a trademark registration for the mark “إنوجن” in Saudi Arabia. We own a pending application for the Inogen One G5 design in Brazil. We own a trademark registration for “Inogen Simeox” in China. We own a trademark registration for the mark “VOXI” in Europe (European Union Registration). We own a trademark registration for AURORA in Europe (European Union Registration). Other service marks, trademarks, and trade names referred to in this Quarterly Report on Form 10-Q are the property of their respective owners. “PHYSIOASSIST,” the Physio-Assist logo, “SIMEOX,” and the Pissenlit…
Excerpt shortened here; the source contains the full paragraph.
Previous wording
There have been no material changes in our critical accounting policies and estimates in the preparation of our consolidated financial statements during the three and six months ended June 30, 2026 compared to those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on February 27, 2026.
Current wording
There have been no material changes in our critical accounting policies and estimates in the preparation of our consolidated financial statements during the three and nine months ended September 30, 2026 compared to those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on February 27, 2026.
Previous wording
While we have worked to improve our global supply chain, challenges and potential disruptions still exist. We have experienced, and may continue to experience, increases in cost and limited availability of certain raw materials, components, and other inputs necessary to manufacture and distribute our products due to constraints and inflation within the global supply chain, and increases in wage costs and the cost and time to distribute our products. Uncertainty around inflationary pressures, interest rates, global conflicts, monetary policy, and changes in tariffs and tax laws could potentially cause new, or exacerbate existing, economic challenges that we may face, including the impact of foreign currency fluctuations on our results of operations, or result in an economic downturn or recession, which could negatively impact our business operations and results. Existing and future potential geopolitical dynamics may create economic, supply chain, energy, and other challenges, including disruptions to business operations, which has impacted, and may in the future negatively impact our business. In addition, escalating tensions and military conflict involving Iran and the broader Middle East region have increased volatility in global shipping and logistics markets, resulting in higher freight, transportation, fuel, and insurance costs, longer transit times, and potential disruptions to key trade routes. In particular, international conflicts and disputes have created and may continue to create instability, including increased transportation and freight expenses, may further result in sanctions, tariffs, and other measures that restrict international trade and may negatively affect our business operations and results.
Current wording
While we have worked to improve our global supply chain, challenges and potential disruptions still exist. We have experienced, and may continue to experience, increases in cost and limited availability of certain raw materials, components, and other inputs necessary to manufacture and distribute our products due to constraints and inflation within the global supply chain, and increases in wage costs and the cost and time to distribute our products. Uncertainty around inflationary pressures, interest rates, global conflicts, monetary policy, and changes in tariffs and tax laws could potentially cause new, or exacerbate existing, economic challenges that we may face, including the impact of foreign currency fluctuations on our results of operations, or result in an economic downturn or recession, which could negatively impact our business operations and results. Existing and future potential geopolitical dynamics may create economic, supply chain, energy, and other challenges, including disruptions to business operations, which has impacted, and may in the future negatively impact our business. In addition, tensions and military conflict involving Iran and the broader Middle East region have increased volatility in global shipping and logistics markets, resulting in higher freight, transportation, fuel, and insurance costs, longer transit times, and potential disruptions to key trade routes. In particular, international conflicts and disputes have created and may continue to create instability, including increased transportation and freight expenses, may further result in sanctions, tariffs, and other measures that restrict international trade and may negatively affect our business operations and results.
Previous wording
For additional information on risk factors that could impact our results, please refer to the sections entitled “Risk Factors” in this Quarterly Report on Form 10-Q, our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on February 27, 2026 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 filed with the SEC on May 8, 2026.
Current wording
For additional information on risk factors that could impact our results, please refer to the sections entitled “Risk Factors” in this Quarterly Report on Form 10-Q, our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on February 27, 2026 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026 filed with the SEC on May 8, 2026 and August 7, 2026, respectively.
Previous wording
We are a medical technology company focused on the development, manufacture, and commercialization of respiratory products, including portable and stationary oxygen concentrators, airway clearance devices, and CPAP masks for the treatment of chronic respiratory conditions. Our portfolio includes portable oxygen concentrator systems designed to optimize output, weight, sound levels, and battery life, as well as stationary oxygen concentrators, the Simeox airway clearance system and Aurora CPAP masks. We operate both as a medical technology company and as a home medical equipment provider, with accreditation across all 50 U.S. states and a broad network of patients, prescribers, providers, and distribution partners.
Current wording
We are a medical technology company focused on the development, manufacture, and commercialization of respiratory products, including portable and stationary oxygen concentrators, airway clearance devices, and CPAP masks for the treatment of chronic respiratory conditions. Our portfolio includes portable oxygen concentrator systems designed to optimize output, weight, sound levels, and battery life, as well as stationary oxygen concentrators, the Simeox airway clearance system, and Aurora CPAP masks. Following the sale of our United States oxygen rental business on November 2, 2026, we no longer provide oxygen rental services. We maintain a broad network of patients, prescribers, providers, and distribution partners.
Previous wording
We generate the majority of our revenue from the sale and rental of our portable oxygen concentrator systems and related accessories to patients, third-party payors, home healthcare providers, resellers, and distributors. Our products are marketed in the United States through direct-to-consumer, prescriber, and business-to-business channels, and internationally through distributors and medical equipment providers. Our product offerings include multiple configurations of our Inogen One®, Rove, At Home, and Voxi® systems, in addition to Simeox and Aurora products and related accessories.
Current wording
We generate the majority of our revenue from the sale of our portable oxygen concentrator systems and related accessories to patients, home healthcare providers, resellers, and distributors. Our products are marketed in the United States through direct-to-consumer, prescriber, and business-to-business channels, and internationally through distributors and medical equipment providers. Our product offerings include multiple configurations of our Inogen One, Rove, At Home, and Voxi systems, in addition to Simeox and Aurora products and related accessories.
Previous wording
Our strategy is focused on expanding our domestic and international business-to-business channels, improving the productivity of our direct-to-consumer and prescriber sales efforts, and optimizing rental revenue through targeted prescriber engagement. We are also investing in research and development and clinical studies to support product innovation and generate clinical and economic evidence to support the value of our products and drive reimbursement and adoption. In addition, we are leveraging partnerships, including our collaboration with Jiangsu Yuyue Medical Equipment & Supply Co., Ltd., or Yuwell, to broaden our product portfolio and support entry into new markets.
Current wording
Our strategy is focused on expanding our domestic and international business-to-business channels and improving the productivity of our direct-to-consumer and prescriber sales efforts. We are also investing in research and development and clinical studies to support product innovation and generate clinical and economic evidence to support the value of our products and drive reimbursement and adoption. In addition, we are leveraging partnerships, including our collaboration with Jiangsu Yuyue Medical Equipment & Supply Co., Ltd., or Yuwell, to broaden our product portfolio and support entry into new markets.
Previous wording
Sales revenue increased $8.3 million, or 5.6%, for the six months ended June 30, 2026 from the six months ended June 30, 2025. The increase was primarily attributable to higher demand in our international markets as well as the favorable impact of foreign exchange rates, partially offset by channel mix within the U.S. We sold approximately 99,600 portable units during the six months ended June 30, 2026 compared to approximately 89,400 portable units sold during the six months ended June 30, 2025, an increase of 11.4%.
Current wording
Revenue decreased $1.9 million, or 2.4%, for the three months ended September 30, 2026 from the three months ended September 30, 2025. The decrease was primarily attributable to lower demand in our international markets, partially offset by growth within the U.S. We sold approximately 51,900 portable units during the three months ended September 30, 2026 compared to approximately 49,000 portable units sold during the three months ended September 30, 2025, an increase of 5.9%.
Previous wording
U.S. sales decreased 3.4% for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to channel mix versus the comparable period in 2025.
Current wording
U.S. sales increased 3.8% for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily due to stronger demand for new products versus the comparable period in 2025.
Previous wording
International sales increased 14.8% for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily due to an increase in demand from our partners in Europe as well as the impact of favorable foreign exchange rates. In the three months ended June 30, 2026, sales in Europe as a percentage of total international sales revenue decreased to 84.2% from 85.3% during the comparable period in 2025.
Current wording
International sales decreased 9.0% for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily due to a decrease in demand from our partners in Europe. For the three months ended September 30, 2026, sales in Europe as a percentage of total international sales decreased to 80.6% from 84.4% during the comparable period in 2025.
Previous wording
Cost of sales revenue increased $1.5 million, or 3.4%, for the three months ended June 30, 2026 from the three months ended June 30, 2025 due primarily to an increase in the number of systems sold.
Current wording
Cost of revenue increased $0.3 million, or 0.6%, for the three months ended September 30, 2026 from the three months ended September 30, 2025 due primarily to an increase in the number of systems sold.
Previous wording
Research and development expense increased $0.7 million, or 12.7%, for the three months ended June 30, 2026 from the three months ended June 30, 2025. This increase was due primarily to product development costs and investments to support growth from new products.
Current wording
Research and development expense increased $0.6 million, or 11.7%, for the three months ended September 30, 2026 from the three months ended September 30, 2025. This increase was due primarily to product development costs and investments to support growth from new products.
Previous wording
Sales and marketing expense decreased $0.6 million, or 2.2%, for the three months ended June 30, 2026 from the three months ended June 30, 2025. This decrease was primarily due to a $1.5 million reduction in personnel costs, partially offset by an increase of $0.8 million in media and advertising costs. In the three months ended June 30, 2026, we spent $8.2 million in media and advertising costs versus $7.4 million in the comparable period in 2025.
Current wording
Sales and marketing expense decreased $1.7 million, or 8.5%, for the three months ended September 30, 2026 from the three months ended September 30, 2025. This decrease was primarily due to a decrease of $1.2 million in media and advertising costs and a $0.9 million reduction in personnel costs. For the three months ended September 30, 2026, we spent $6.2 million in media and advertising costs versus $7.4 million in the comparable period in 2025.
Previous wording
General and administrative expense increased $0.8 million, or 4.8%, for the three months ended June 30, 2026 from the three months ended June 30, 2025, primarily due to an increase of $0.6 million in stockholder engagement and proxy defense costs.
Current wording
General and administrative expense decreased $1.4 million, or 8.6%, for the three months ended September 30, 2026 from the three months ended September 30, 2025, primarily due to a decrease of $1.8 million in legal settlement costs incurred in the comparable period in 2025, partially offset by an increase of $0.6 million in restructuring-related costs.
Previous wording
Total other income, net decreased $0.7 million, or 40.1%, for the three months ended June 30, 2026 from the three months ended June 30, 2025, primarily due to net foreign currency losses.
Current wording
Total other income, net decreased $0.7 million, or 43.7%, for the three months ended September 30, 2026 from the three months ended September 30, 2025, primarily due to a decrease in net foreign currency transaction gains.
Previous wording
Income tax benefit increased less than $0.1 million, or 0.7%, for the three months ended June 30, 2026 from the three months ended June 30, 2025. We continued to record a valuation allowance on the use of deferred tax assets in the current and prior periods.
Current wording
Provision (benefit) for income taxes increased $0.3 million, or 204.8%, for the three months ended September 30, 2026 from the three months ended September 30, 2025. Income taxes in the current period were attributable to foreign taxes and minimum state taxes. We continued to record a valuation allowance on the use of deferred tax assets in the current and prior periods.
Previous wording
Our effective tax rate for the three months ended June 30, 2026 increased slightly compared to the three months ended June 30, 2025. The increase in the effective tax rate from the prior year was attributable to changes in the forecast pretax income/(loss).
Current wording
Our effective tax rate for the three months ended September 30, 2026 decreased compared to the three months ended September 30, 2025. The decrease in the effective tax rate from the prior year was attributable to changes in the forecast pretax income/(loss).
Previous wording
Sales revenue increased $4.4 million, or 5.5%, for the three months ended June 30, 2026 from the three months ended June 30, 2025. The increase was primarily attributable to higher demand in our international markets as well as the favorable impact of foreign exchange rates, partially offset by channel mix within the U.S. We sold approximately 53,300 portable units during the three months ended June 30, 2026 compared to approximately 47,600 portable units sold during the three months ended June 30, 2025, an increase of 12.0%.
Current wording
Revenue increased $6.4 million, or 2.8%, for the nine months ended September 30, 2026 from the nine months ended September 30, 2025. The increase was primarily attributable to higher demand in our international markets as well as the favorable impact of foreign exchange rates in the first half of 2026, partially offset by channel mix within the U.S. We sold approximately 151,500 portable units during the nine months ended September 30, 2026 compared to approximately 138,400 portable units sold during the nine months ended September 30, 2025, an increase of 9.5%.
Previous wording
U.S. sales decreased 2.3% for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily due to channel mix versus the comparable period in 2025.
Current wording
U.S. sales decreased 1.0% for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to channel mix versus the comparable period in 2025.
Previous wording
International sales increased 16.2% for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to an increase in demand from our partners in Europe as well as the impact of favorable foreign exchange rates. In the six months ended June 30, 2026, sales in Europe as a percentage of total international sales revenue increased to 86.5% from 85.5% during the comparable period in 2025.
Current wording
International sales increased 7.1% for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to our geographic expansion efforts as well as the impact of favorable foreign exchange rates in the first half of 2026. For the nine months ended September 30, 2026, sales in Europe as a percentage of total international sales decreased to 84.7% from 85.1% during the comparable period in 2025.
Previous wording
Cost of sales revenue increased $3.6 million, or 4.4%, for the six months ended June 30, 2026 from the six months ended June 30, 2025 due primarily to an increase in the number of systems sold.
Current wording
Cost of revenue increased $3.8 million, or 3.1%, for the nine months ended September 30, 2026 from the nine months ended September 30, 2025 due primarily to an increase in the number of systems sold.
Previous wording
Gross margin on sales revenue increased to 46.2% for the three months ended June 30, 2026 from 45.1% for the three months ended June 30, 2025. The increase was driven by manufacturing cost leverage from higher units sold and lower cost premiums associated with open-market purchases of semiconductor chips used in our portable oxygen concentrators and reduced warranty-related costs resulting from product quality improvements.
Current wording
Gross margin percentage decreased slightly to 45.0% for the nine months ended September 30, 2026 from 45.1% for the nine months ended September 30, 2025. The decrease was driven by lower average selling prices and channel mix, partially offset by manufacturing cost leverage from higher units sold and lower cost premiums associated with open-market purchases of semiconductor chips used in our portable oxygen concentrators and reduced warranty-related costs resulting from product quality improvements.
Previous wording
Research and development expense increased $1.7 million, or 18.7%, for the six months ended June 30, 2026 from the six months ended June 30, 2025. This increase was due primarily to increased product development and investments to support growth from new products.
Current wording
Research and development expense increased $2.3 million, or 16.3%, for the nine months ended September 30, 2026 from the nine months ended September 30, 2025. This increase was due primarily to increased product development and investments to support growth from new products.
Previous wording
Sales and marketing expense increased $0.3 million, or 0.6%, for the six months ended June 30, 2026 from the six months ended June 30, 2025. This increase was primarily due to an increase of $1.6 million in media and advertising costs and $0.5 million in costs related to employee engagement and training activities, offset by a decrease of $2.2 million in personnel costs. In the six months ended June 30, 2026, we spent $16.6 million in media and advertising costs versus $15.0 million in the comparable period in 2025.
Current wording
Sales and marketing expense decreased $0.9 million, or 1.4%, for the nine months ended September 30, 2026 from the nine months ended September 30, 2025. This decrease was primarily due to a decrease of $2.6 million in personnel costs. For the nine months ended September 30, 2026, we spent $22.7 million in media and advertising costs versus $22.4 million in the comparable period in 2025.
Previous wording
General and administrative expense increased $2.1 million, or 6.2%, for the six months ended June 30, 2026 from the six months ended June 30, 2025, primarily due to an increase of $1.1 million in restructuring-related costs and $0.8 million in stockholder engagement and proxy defense costs.
Current wording
General and administrative expense increased $0.6 million, or 1.3%, for the nine months ended September 30, 2026 from the nine months ended September 30, 2025, primarily due to an increase of $1.7 million in restructuring-related costs and $1.0 million in stockholder engagement and proxy defense costs.
Previous wording
Total other income, net decreased $1.3 million, or 39.9%, for the six months ended June 30, 2026 from the six months ended June 30, 2025, primarily due to net foreign currency losses.
Current wording
Total other income, net decreased $2.0 million, or 41.2%, for the nine months ended September 30, 2026 from the nine months ended September 30, 2025, primarily due to a decrease in net foreign currency transaction gains.
Previous wording
Income tax benefit decreased less than $0.1 million, or 31.2%, for the six months ended June 30, 2026 from the six months ended June 30, 2025. We continued to record a valuation allowance on the use of deferred tax assets in the current and prior periods.
Current wording
Benefit for income taxes decreased $0.2 million, or 55.8%, for the nine months ended September 30, 2026 from the nine months ended September 30, 2025 primarily due to a lower U.S. tax benefit and changes in pretax income (losses) for our foreign jurisdictions. We continued to record a valuation allowance on the use of deferred tax assets in the current and prior periods.
Previous wording
Our effective tax rate for the six months ended June 30, 2026 increased slightly compared to the six months ended June 30, 2025. The increase in the effective tax rate from the prior year was attributable to changes in the forecast pretax income/(loss).
Current wording
Our effective tax rate for the nine months ended September 30, 2026 decreased compared to the nine months ended September 30, 2025. The decrease in the effective tax rate from the prior year was attributable to changes in the forecast pretax income/(loss).
Previous wording
As of June 30, 2026, we had cash and cash equivalents of $87.3 million and marketable securities of $18.3 million. Our principal uses of cash are funding our new rental asset deployments and other capital purchases, operations, and other working capital requirements and, from time to time, the acquisition of businesses. Over the past several years, our cash flows from customer collections have remained consistent and our annual cash provided by operating activities has generally been a significant source of capital to the business.
Current wording
As of September 30, 2026, we had cash and cash equivalents of $81.8 million and marketable securities of $15.0 million. Our principal uses of cash are funding our capital purchases, operations, and other working capital requirements and, from time to time, the acquisition of businesses. Over the past several years, our cash flows from customer collections have remained consistent and our annual cash provided by operating activities has generally been a significant source of capital to the business.
Previous wording
We may need to raise additional funds to support our investing operations, and such funding may not be available to us on acceptable terms, or at all. If we are unable to raise additional funds when needed, our operations and ability to execute our business strategy could be adversely affected. We may seek to raise additional funds through equity, equity-linked or debt financings. If we raise additional funds through the incurrence of indebtedness, such indebtedness would have rights that are senior to holders of our equity securities and could contain covenants that restrict our operations. Any additional equity financing may be dilutive to our stockholders. We believe that our current cash, cash equivalents, and marketable securities and the cash to be generated from expected product sales and rentals will be sufficient to meet our projected operating and investing requirements for at least the next 12 months.
Current wording
We may need to raise additional funds to support our investing operations, and such funding may not be available to us on acceptable terms, or at all. If we are unable to raise additional funds when needed, our operations and ability to execute our business strategy could be adversely affected. We may seek to raise additional funds through equity, equity-linked or debt financings. If we raise additional funds through the incurrence of indebtedness, such indebtedness would have rights that are senior to holders of our equity securities and could contain covenants that restrict our operations. Any additional equity financing may be dilutive to our stockholders. We believe that our current cash, cash equivalents, and marketable securities and the cash to be generated from expected product sales will be sufficient to meet our projected operating and investing requirements for at least the next 12 months.
Previous wording
The following tables show a summary of our cash flows and working capital for the periods and as of the dates indicated:
Current wording
The following tables show a summary of our cash flows and working capital of continuing operations for the periods and as of the dates indicated:
Previous wording
Historically, we derive operating cash flows from cash collected from the sales and rental of our products and services. These cash flows received are partially offset by our use of cash for operating expenses to support the growth of our business.
Current wording
We derive operating cash flows from cash collected from the sales of our products. These cash flows received are partially offset by our use of cash for operating expenses to support the growth of our business.
Previous wording
Net cash used in operating activities for the six months ended June 30, 2026 consisted primarily of our net loss of $12.2 million, partially offset by non-cash adjustment items consisting mainly of depreciation of equipment and leasehold improvements and amortization of intangibles of $9.6 million, stock-based compensation expense of $3.7 million, and provision for sales returns and doubtful accounts of $3.8 million. We also had a net use of operating assets and liabilities during the period primarily related to higher accounts receivable due to higher sales and the timing of sales within the quarter.
Current wording
Net cash used in operating activities for the nine months ended September 30, 2026 consisted primarily of our net loss from continuing operations of $25.4 million, partially offset by non-cash adjustment items consisting mainly of depreciation of equipment and leasehold improvements and amortization of intangibles of $6.6 million, stock-based compensation expense of $5.4 million, provision for sales returns and doubtful accounts of $5.2 million, and an impairment charge of $10.6 million. The net changes in operating assets and liabilities resulted in net cash used of $16.7 million, primarily related to higher accounts receivable due to the timing of sales within the quarter.
Previous wording
Net cash used in operating activities for the six months ended June 30, 2025 consisted primarily of our net loss of $10.3 million, partially offset by non-cash adjustment items consisting mainly of depreciation of equipment and leasehold improvements and amortization of intangibles of $10.4 million, stock-based compensation expense of $4.4 million, and provision for sales returns and doubtful accounts of $3.2 million, and net loss on disposal of rental assets and other assets of $1.7 million. The net changes in operating assets and liabilities resulted in net cash used of $22.7 million, which included the payment of the earnout liability of $9.8 million.
Current wording
Net cash used in operating activities for the nine months ended September 30, 2025 consisted primarily of our net loss from continuing operations of $13.2 million, partially offset by non-cash adjustment items consisting mainly of depreciation of equipment and leasehold improvements and amortization of intangibles of $6.6 million, stock-based compensation expense of $6.1 million, and provision for sales returns and doubtful accounts of $4.9 million. The net changes in operating assets and liabilities resulted in net cash used of $25.9 million, which included the payment of the earnout liability of $9.8 million and legal and settlement expenses of $2.4 million.
Previous wording
Net cash used in investing activities generally includes the production and purchase of rental assets, property, plant and equipment, acquisitions, and intangibles to support our expanding business as well as purchases of marketable securities.
Current wording
Net cash used in investing activities generally includes the purchases of property and equipment, acquisitions, and intangibles to support our expanding business as well as purchases of marketable securities.
Previous wording
For the six months ended June 30, 2026, we invested $13.1 million in the purchase of marketable securities and $2.7 million in the production and purchase of rental assets and other property and equipment, partially offset by $10.7 million we received from maturities of marketable securities.
Current wording
For the nine months ended September 30, 2025, we invested $22.7 million in the purchase of marketable securities and $1.5 million for the purchases of property and equipment, partially offset by $6.0 million we received from maturities of marketable securities.
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Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Gross margin on sales revenue increased to 45.4% for the six months ended June 30, 2026 from 44.8% for the six months ended June 30, 2025. The increase was driven by manufacturing cost leverage from higher units sold and lower cost premiums associated with open-market purchases of semiconductor chips used in our portable oxygen concentrators and reduced warranty-related costs resulting from product quality improvements.
Previous report — wording carried elsewhere
other companies, including companies in our industry, may calculate EBITDA and Adjusted EBITDA measures differently, which reduces their usefulness as a comparative measure.
Previous report — wording carried elsewhere
(1) Stockholder engagement and proxy defense costs include third-party advisory, legal, and other professional fees.