Inspire Medical Systems (INSP) Fell Following Reduced Full-Year Guidance

Wasatch Global Investors, an asset management company, released its third-quarter 2025 “Wasatch Small Cap Growth Strategy” investor letter. A copy of the letter can be downloaded here. US small-cap equities rallied strongly in the third quarter. The Fed Reserve’s interest rate cut supported the rally. However, the fund-Investor Class struggled to keep up with the rally and ended the period down -3.17% vs. 12.19% gain for the Russell 2000 Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Wasatch Small Cap Growth Strategy 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 53.98%, and its shares lost 30.79% of their value over the last 52 weeks. On December 12, 2025, Inspire Medical Systems, Inc. (NYSE:INSP) stock closed at $130.68 per share, with a market capitalization of $3.865 billion.

Wasatch Small Cap Growth Strategy stated the following regarding Inspire Medical Systems, Inc. (NYSE:INSP) in its third quarter 2025 investor letter:

“Another detractor was Inspire Medical Systems, Inc. (NYSE:INSP). This is an example of a company for which we reviewed our investment thesis and decided to move on. We sold the position during the quarter. Inspire develops implantable neurostimulators for treating obstructive sleep apnea. The company’s shares slid in August after management downgraded full-year 2025 guidance due to delays in the U.S. commercial rollout of its next generation Inspire V system. The delayed rollout of Inspire V raised questions about execution by management. Additionally, concerns are growing about how GLP-1 drugs may affect Inspire’s addressable market.”

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 Mairs & Power Small Cap Fund’s 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.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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