Revenue growth slows to 1.6% as coding uncertainty, Medicare prior-auth delays hit demand

Filed May 4, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 5, 2025 · ~2 min read

Key Changes

• high

  Revenue growth decelerated sharply to 1.6% (vs 22.7% prior year) as coding/reimbursement uncertainty for Inspire V, new Medicare WISeR prior-authorization delays in six states, and GLP-1 competition all weighed on demand. Company expects WISeR headwinds to persist through 2026.

  MD&A: Revenue Growth & Headwinds verify on EDGAR →
• high

  Net income swung to -$11.3M loss (from $3.0M profit prior year) despite operating loss narrowing 24.7%, driven by a 571.2% effective tax rate from stock-comp tax shortfalls when shares vested below grant price. The -$14.7M net below-the-line swing (income tax -$12.5M, non-operating/other -$2.1M) turned modest operating improvement into a bottom-line loss.

  MD&A: Tax Rate & Net Income verify on EDGAR →
• high

  DOJ opened False Claims Act investigation in January 2025 into marketing, promotion, and reimbursement practices, examining potential false claims to government payors under Anti-Kickback Statute. Outcome and timing uncertain; company is cooperating.

  Notes: Legal Proceedings verify on EDGAR →