What it is: A medical-device business, placing equipment that pulls consumables and service behind it.
What moves the needle: Gross margin has run about 84% and operating margin about 35% through the cycle, a wide spread between price and the cost of what it sells — whether that advantage is durable pricing power or a margin that can erode is the question the record is for. Read this kind of business on the installed base and what follows it. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has run high across the record (median 37%, above 15% in 8 of 8 years), though buybacks and expensed R&D and brands shrink the capital base, so the figure overstates the underlying economics. The steadier read is owner earnings: roughly 37% of revenue reaches owners as cash, consistently. Whether these returns reflect real pricing power or an accounting artifact is the judgment the 10-K is for.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 20-F →

Capital Equipment is 78% of revenue, with Consumables And Service Revenues the other meaningful line at 22%.

Revenue by product line, FY2025

Capital Equipment78%$289M
Consumables And Service Revenues22%$81M

By geographyUnited States54%Europe21%Asia13%Other11%Israel1%

From the segment footnote of the company's own 20-F. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2017–2025

realized figures from each filing · older years to the left

2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMDec 2025
										Income statement
$53M	$100M	$156M	$206M	$358M	$454M	$492M	$395M	$370M	$370M	RevenueRevenue
83%	85%	87%	85%	85%	84%	84%	80%	79%	79%	Gross marginGross mgn
$9M	$23M	$60M	$73M	$167M	$198M	$196M	$113M	$85M	$85M	Operating incomeOp. inc.
16.7%	23.5%	38.1%	35.3%	46.8%	43.6%	39.8%	28.5%	23.0%	23.0%	Operating marginOp. mgn
$9M	$22M	$61M	$75M	$165M	$162M	$198M	$181M	$94M	$94M	Net incomeNet inc.
10%	5%	1%	1%	2%	20%	9%	—	15%	15%	Effective tax rateTax rate
										Cash flow & returns
$15M	$37M	$62M	$79M	$175M	$182M	$177M	$133M	$85M	$85M	Operating cash flowOp. cash
$204K	$184K	$302K	$416K	$517K	$680K	$623K	$728K	$695K	$695K	DepreciationDeprec.
$6M	$14M	$746K	$4M	$9M	$19M	($22M)	($49M)	($9M)	($9M)	Working capital & otherWC & other
$189K	$381K	$693K	$463K	$939K	$2M	$705K	$669K	$972K	$972K	CapexCapex
0.4%	0.4%	0.4%	0.2%	0.3%	0.3%	0.1%	0.2%	0.3%	0.3%	Capex / revenueCapex/rev
$14M	$37M	$62M	$79M	$174M	$181M	$176M	$132M	$85M	$85M	Owner earningsOwner earn.
27.0%	36.6%	39.6%	38.2%	48.8%	39.8%	35.8%	33.4%	22.8%	22.8%	Owner earnings marginOE mgn
$14M	$37M	$62M	$79M	$174M	$180M	$176M	$132M	$84M	$84M	Free cash flowFCF
27.0%	36.4%	39.3%	38.2%	48.6%	39.6%	35.8%	33.4%	22.7%	22.7%	Free cash flow marginFCF mgn
—	—	—	$17M	$35M	$43M	$0	$285M	$127M	—	BuybacksBuybacks
—	120%	45%	39%	47%	35%	28%	21%	19%	19%	ROICROIC
—	52%	35%	30%	40%	29%	25%	26%	14%	14%	Return on equityROE
—	52%	35%	30%	40%	29%	25%	26%	14%	14%	Retained to equityRetained/eq
										Balance sheet
$18M	$51M	$165M	$211M	$363M	$472M	$518M	$423M	$386M	$386M	Cash & investmentsCash+inv
—	$7M	$7M	$10M	$20M	$27M	$42M	$36M	$44M	$44M	ReceivablesReceiv.
—	$7M	$9M	$15M	$21M	$40M	$45M	$60M	$74M	$74M	InventoryInvent.
—	$5M	$4M	$6M	$9M	$16M	$14M	$14M	$18M	$18M	Accounts payablePayables
—	$9M	$12M	$19M	$32M	$51M	$73M	$82M	$100M	$100M	Operating working capitalOper. WC
—	$78M	$213M	$290M	$470M	$629M	$845M	$714M	$699M	$699M	Current assetsCur. assets
—	$29M	$32M	$35M	$52M	$82M	$64M	$70M	$71M	$71M	Current liabilitiesCur. liab.
—	2.6×	6.6×	8.3×	9.1×	7.7×	13.2×	10.2×	9.9×	9.9×	Current ratioCurr. ratio
—	$81M	$218M	$296M	$479M	$644M	$863M	$786M	$766M	$766M	Total assetsAssets
($18M)	($51M)	($165M)	($211M)	($363M)	($472M)	($518M)	($423M)	($386M)	($386M)	Net debt / (cash)Net debt
—	$43M	$176M	$254M	$416M	$555M	$787M	$704M	$683M	$683M	Shareholders’ equityEquity
										Per share
29.7M	35.0M	76.1M	84.2M	86.0M	85.4M	86.0M	80.6M	65.4M	63.4M	Shares out (diluted)Shares
$1.80	$2.86	$2.05	$2.45	$4.16	$5.32	$5.72	$4.90	$5.66	$5.85	Revenue / shareRev/sh
$0.30	$0.64	$0.80	$0.89	$1.92	$1.89	$2.30	$2.25	$1.43	$1.48	EPS (diluted)EPS
$0.49	$1.05	$0.81	$0.94	$2.03	$2.12	$2.05	$1.64	$1.29	$1.33	Owner earnings / shareOE/sh
$0.49	$1.04	$0.81	$0.94	$2.02	$2.11	$2.05	$1.64	$1.29	$1.33	Free cash flow / shareFCF/sh
$0.01	$0.01	$0.01	$0.01	$0.01	$0.02	$0.01	$0.01	$0.01	$0.02	Cap. spending / shareCapex/sh
—	$1.24	$2.31	$3.02	$4.83	$6.49	$9.16	$8.73	$10.44	$10.78	Book value / shareBVPS

The diluted share count moved ×2.17 into 2019 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

Per-share growththe realized rate an owner's share compounded

	8-yr	5-yr
Revenue / share	+15.4%/yr	+18.3%/yr
Owner earnings / share	+13.0%/yr	+6.7%/yr
EPS	+21.7%/yr	+10.0%/yr
Capital spending / share	+11.2%/yr	+22.0%/yr
Book value / share	+35.6%/yr (7-yr)	+28.2%/yr

The record, charted

FY2017–2025

Each measure over its full record; the current point and the worst year marked.

Share count

65Mpeak FY2021

ROIC

19%low FY2025

Gross margin

79%low FY2025

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$85Mowner earningsvs.$94Mnet incomelow FY2017

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetained

Each year's operating cash, by what management did with it: the mix, and how it drifts.

FY2017FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business earned $85M of owner earnings, the operating cash left after the $695K it takes just to hold its position. It put $277K more into growth; free cash flow, after that spending, was $84M.

Reported net income$94M

Owner earnings$85M · 23% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$94M	$181M	$198M	$162M	$165M
Depreciation & amortizationnon-cash charge added back	+$695K	+$728K	+$623K	+$680K	+$517K
Working capital & othertiming of cash in and out, other non-cash items	−$9M	−$49M	−$22M	+$19M	+$9M
Cash from operations	$85M	$133M	$177M	$182M	$175M
Maintenance capital expenditurethe spending needed just to hold position and volume	−$695K	−$669K	−$705K	−$680K	−$517K
Owner earnings	$85M	$132M	$176M	$181M	$174M
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	−$277K	—	—	−$895K	−$422K
Free cash flow	$84M	$132M	$176M	$180M	$174M
Owner-earnings marginowner earnings ÷ revenue	23%	33%	36%	40%	49%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about $695K, roughly its depreciation, the rate its assets wear out). The other $277K of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 20-F · source on SEC EDGAR →

Will it survive?

Can it pay its interest? —

No meaningful interest burden

Little or no interest expense reported

What this means
Little or no interest expense reported, the business isn't leaning on lenders to operate.
How heavy is the debt, net of cash? +$386M

Net cash, debt-free

Cash $303M + ST investments $84M − debt $0

What this means
Cash and short-term investments exceed every dollar of debt by $386M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 301d

Long (60+ days)

DSO 43 + DIO 340 − DPO 82 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital —

Not enough data

Industry peers: median -8%

What this means
The filing data didn't include the inputs for this check.
Owner-earnings margin 37%

High through the cycle

9-yr median margin, range 23%–49%; latest $85M = operating cash $85M − maintenance capex $695K

Industry peers: median -3%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 23% of revenue this year, a 37% median across 9 years.
Are earnings backed by cash? 0.91×

Mostly cash-backed

Cash from ops $85M ÷ net income $94M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 151%

Returned more than it generated

Dividends + buybacks $127M ÷ Owner Earnings $85M

What this means
The company returned more than it generated: against $85M of Owner Earnings, $127M (151%) went back to shareholders, $0 dividends, $127M buybacks — the excess came from the balance sheet or borrowing, not the year's operations. Sustained, that pattern draws down cash or adds debt; the net-debt line above shows where it stands.
Investing or harvesting? 1.40×

Expanding

Capex $972K ÷ depreciation $695K

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 3 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Miss

Revenue ≥ $2B · $370M

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 9.88×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Earnings stability Pass

A profit every year (9-yr record) · no losses

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Pass

Earnings +33% over the record · +412%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $2.49/share (latest year $1.48), the averaged base the calculator's gate runs on, and book value is $10.78/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2017–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 9 of 9

What this means
Never lost money over the record, the earnings stability Graham insisted on.
Operating margin 26% → 30% (3-yr avg ends)

What this means
Through the cycle the operating margin widened — about 26% early to 30% lately, median 35% — pricing power intact or improving.
Owner earnings growth +20%/yr

What this means
Owner earnings grew about 20% a year over the record.
Worst year 2017 · 16.7% op. margin

What this means
Stayed profitable even in its hardest year, the resilience that survives recessions.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing Raised, but not as a competitor

The filing raises AI among its risks, but in other terms (security, regulation, energy or the like), not as a competitor to its product; it frames AI mainly as a capability.

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat, and the company is using it that way.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of fiscal year-end, Dec 31, 2025

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$699M

Cash & short-term investments$386M
Receivables$44M
Inventory$74M
Other current assets$195M

Current liabilities$71M

Accounts payable$18M
Other current liabilities$53M

Current ratio9.88×all current assets ÷ what's due · Graham looked for 2×

Quick ratio8.83×stricter: inventory excluded

Cash ratio5.46×strictest: cash alone against what's due

Working capital$628Mthe cushion left after near-term bills

Deeper floors

Tangible book value$683Mequity stripped of goodwill & intangibles

Net current asset value$615MGraham's net-net: current assets less all liabilities

Debt incl. operating leases$3M$3M of it operating leases

Deferred revenue$12Mcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2017–2025

Over the record, the business generated $944M of operating cash; how management split it reads as a cash builder, a large share of cash simply built up on the balance sheet.

Reinvested$7M · 1%
Buybacks$508M · 54%
Retained (debt / cash)$430M · 45%

Returned to owners$508M
54% of the owner earnings the business produced over the span, $0 as dividends and $508M as buybacks.
Source of fundingOperating cash
Operating cash covered reinvestment and returns; over the span cash and short-term investments rose $369M.
Average price paid for buybacks—
Buybacks ran $508M over the span, but the filings don't tag the share count needed to deduce the average price paid.
Net change in share count113.5%
The diluted count rose from 30M to 63M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.
Return on what it retained20%
Of the earnings it kept rather than paid out ($459M over the span), annual owner earnings (first three years vs last three) grew $93M, so each retained $1 added about 0.20 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Inverting the record

Invert: instead of why InMode Ltd. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2017–2025.

2 of the 3 tests turned up something to look into; the other 1 came back clean.

Look hereIs it less profitable than it was?30.7% vs 34.4%
The owner-earnings margin averaged 34.4% early in the record and 30.7% across the last three years, and the latest year has not recovered. Ask the filing whether that is a structural drift or a cyclical trough — price, mix, cost, or a competitor — and whether it is permanent.
Look hereDid the share count rise anyway?113.5%
Diluted shares grew 113.5% over 2017–2025, even as the company spent $508M on buybacks. The repurchases were outrun by issuance — to staff, in a raise, or in a deal — and the filing says which; owners' slice still shrank. Read the buyback line beside this one, not on its own.

And these came back clean

Did reported profit become cash?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

Peers, Medical Devices & Equipment

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
BVSBioventus Inc.	$568M	68%	2.8%	-3%	7%
ATRCAtriCure	$535M	75%	-10.8%	-8%	-8%
GKOSGlaukos Corporation	$507M	76%	-25.2%	-8%	-3%
MDXGMiMedx Group Inc	$419M	84%	-0.3%	34%	8%
INMDInMode Ltd.	$370M	84%	35.3%	37%	37%
ANGOAngioDynamics Inc.	$320M	54%	-12.3%	-9%	-0%
PRCTPROCEPT BioRobotics Corporation	$308M	51%	-93.9%	-115%	-96%
AXGNAxogen Inc.	$225M	81%	-19.9%	-17%	-13%
Group median	—	76%	-11.5%	-8%	-2%

The price

What a price has to assume.

What the price implies

reverse-DCF

Enter the US price, in dollars: the NYSE/Nasdaq quote you hold. InMode Ltd.'s US listing is the ordinary share itself. The record tables elsewhere on this page remain as filed.

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what InMode Ltd. has delivered.

Today’s price $

Through the cycle, InMode Ltd. earns about $136M on its 36.6% median owner-earnings margin. This year’s 22.8% margin runs below that; the reported figure may understate a lean year. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($136M) Net of stock comp Steady-state · maintenance capex ($85M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25−12%/yr

Owner-earnings growth · ’17→’25+20%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $84M on 63M shares outstanding, per the 20-F cover, as of 2025-12-31; net cash $386M. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. Capex ($972K) runs well above depreciation ($695K), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $85M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh INMD against another business →

Cite: Owner Scorecard, "InMode Ltd. (INMD), the owner's record," https://ownerscorecard.com/c/INMD, data as of 2026-07-09.

Manual order: ← ING its page in the Manual INTR →

Industry order: ← ICUI the Medical Devices & Equipment chapter INSP →