Inspire Medical (INSP) Fell Due to Multiple Headwinds

Mairs & Power, an investment advisor, released the third-quarter 2025 investor letter for the “Mairs & Power Small Cap Fund.” A copy of the letter can be downloaded here. The market’s concentration persists in 2025, with a few dominant mega-cap stocks tied to artificial intelligence (AI) driving most of the favorable outcomes. The fund returned 2.06% in the first nine months of 2025. The fund underperformed the benchmark Russell 2000 Total Returns (TR) Index, which was up 10.39%, the S&P Small Cap 600 TR, which rose 4.24% and the Morningstar U.S. Fund Small Blend, which returned 6.15%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Mairs & Power Small Cap Fund highlighted stocks such as Inspire Medical Systems, Inc. (NYSE:INSP). Inspire Medical Systems, Inc. (NYSE:INSP) is a medical technology company that focuses on the development and commercialization of minimally invasive solutions for patients with obstructive sleep apnea. The one-month return of Inspire Medical Systems, Inc. (NYSE:INSP) was 61.41%, and its shares lost 26.28% of their value over the last 52 weeks. On December 10, 2025, Inspire Medical Systems, Inc. (NYSE:INSP) stock closed at $140.07 per share, with a market capitalization of $4.142 billion.

Mairs & Power Small Cap Fund stated the following regarding Inspire Medical Systems, Inc. (NYSE:INSP) in its third quarter 2025 investor letter:

“Notable detractors from relative performance during the period were Inspire Medical Systems, Inc. (NYSE:INSP), MGP Ingredients, and Knife River. Inspire Medical had a difficult quarter due to challenges related to GLP-1 usage increases, as well as rolling out a new product version, and delays with billing software and reimbursement codes.”

Inspire Medical Systems, Inc. (NYSE:INSP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held Inspire Medical Systems, Inc. (NYSE:INSP) at the end of the third quarter, which was 34 in the previous quarter. In Q3 2025, Inspire Medical Systems, Inc. (NYSE:INSP) reported revenue of $224.5 million, an 10% increase from Q3 2024.  While we acknowledge the risk and potential of Inspire Medical Systems, Inc. (NYSE:INSP) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Inspire Medical Systems, Inc. (NYSE:INSP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Inspire Medical Systems, Inc. (NYSE:INSP) and shared Summers Value Partners’ views on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.