Channel shift continues to boost B2B, pressure DTC at Inogen

BEVERLY, Mass. – Inogen expects its U.S. business to return to overall growth in the second half of 2026, driven by momentum in its business-to-business channel as it works through continued pressure in its direct-to-consumer and rental channels.

Inogen reported U.S. sales were $42.3 million in the second quarter, as the strong mid-single-digit revenue growth in its B2B channel was not enough to offset channel mix challenges.

“Results in DTC reflect a market shift where HMEs are prescribing POCs from day one, and in turn, HMEs are our largest and most strategic funnel,” said Kevin Smith, president and CEO, during a recent call to discuss financial results. “It is important to note that in total, the U.S. segment unit volume was up high single digits, indicating continued strong interest in our products and bolsters our confidence in our strategy.”

During the call, analysts pressed company officials on whether the DTC channel can stabilize as patients increasingly enter the oxygen market through HME providers. Smith said Inogen continues to see opportunities for both the DTC and rental channels, including through newer product categories such as the Voxi stationary oxygen concentrator (SOC) and Aurora CPAP mask.

“We do believe we have the right strategy,” Smith said.

At the same time, Inogen continues to invest in the B2B business, increasing its sales force for that business with the goal of sharpening execution and aligning priorities.

“That investment is already starting to show a return,” Smith said. “We significantly increased the number of U.S. customers moving through the B2B sales channel (in the second quarter) sequentially over Q1.”

Smith said the company's newer products are contributing across all channels. Voxi and Aurora together added more than 100 basis points of growth in the second quarter. To date, Inogen has shipped more than 5,000 Voxi units and more than doubled its customer count for Aurora CPAP masks.

“We are starting to build inroads in these markets and are pleased with the progress to date,” he said.

Looking ahead, Inogen expects third quarter 2026 revenue to be approximately in line with third quarter 2025 revenue, reflecting the continued U.S. sales channel mix shift, as well as the timing impact of select international distributor inventory purchases. It has lowered its full-year guidance.

“While our performance this quarter was in line with our expectations and we are lowering our guidance, we are approaching this period with a clear understanding of the market dynamics, a strong sense of accountability, and a focused plan to drive improvement,” Smith said. “As we look ahead, our focus remains on execution.”