Steel Partners' $18 Per Share Bid for InMode Signals Push for Change After Years of Underperformance

Buyout Offer Comes Amid Steep 5-Year Total Shareholder Return Decline

Steel Partners Holdings L.P. has made a public move to acquire 51% of InMode Ltd. at $18.00 per share—a 29% premium over the share price just before acquisition rumors hit the news. The proposal follows what Steel calls an “abysmal” record of shareholder returns for InMode, with double-digit losses over recent years and persistent cuts to company guidance.

InMode, a Nasdaq-listed medical technology company, has struggled to translate its strong cash position and zero debt into sustainable value for shareholders. As of the third quarter of 2025, InMode’s $532.3 million in cash and cash equivalents made up nearly half its market capitalization, raising questions about management’s capital allocation approach.

Key Numbers Highlight Scale of Underperformance and Buyout Premium

Despite InMode’s healthy financial position, these numbers reveal a pattern of missed growth and shareholder value. The $18 per share bid provides a significant premium for control and implies a renewed sense of urgency to reverse the company’s fortunes. As of 11:20 AM, InMode’s share price stood at $15.85, about $2.15 below Steel Partners’ proposal.

Cash on Hand Far Exceeds Industry Norms

Few companies of similar size hold cash reserves this large, and for InMode, the $532.3 million war chest equates to roughly 50% of its market capitalization. Yet, rather than channeling these funds into share buybacks, dividends, or strategic opportunities, the company has largely let the cash sit idle. Steel Partners’ letter argues this is a missed opportunity that contributes to the recent string of disappointing returns.

Persistent Guidance Cuts Spark Investor Frustration

Adding to investor frustration is InMode's pattern of lowering guidance. The company has cut guidance in seven of the last nine quarters, including both margin and revenue expectations as recently as January 2026. This persistent recalibration signals challenges in forecasting and potentially in executing business plans.

What’s Next? Shareholders Face a Crucial Decision

Steel Partners has indicated they are ready to negotiate, but they may also pursue a direct tender to shareholders if InMode’s board remains non-committal. The offer provides immediate liquidity at a strong premium, but also signals the need for fresh strategic direction—especially in deploying the company’s substantial cash pile for growth or returns.

For investors, the next steps will hinge on the Board’s response to Steel Partners and whether this offer sparks competing bids or a shift in InMode’s capital strategy. With underperformance and high cash reserves in the spotlight, all eyes will be on whether this is the event that prompts a drastically different chapter for InMode Ltd.

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