Form 4: Inspire Medical CEO Reports Routine Tax-Related Stock Disposition

Inspire Medical Systems CEO Timothy P. Herbert reported a disposition of 968 shares of common stock to cover tax obligations related to a performance stock unit award.

Summary

• Timothy P. Herbert, CEO and President of Inspire Medical Systems, Inc. (INSP), reported a transaction on February 9, 2026.
• The transaction involved the disposition of 968 shares of common stock to the Issuer at a price of $66.33 per share.
• These shares were withheld by Inspire Medical Systems, Inc. to satisfy tax liabilities incident to the vesting of a performance stock unit award.
• Following this transaction, Mr. Herbert directly beneficially owns 34,321 shares of common stock.
• His direct ownership includes 113 shares acquired on June 30, 2025, and 27 shares acquired on December 31, 2025, under the Inspire Medical Systems, Inc. 2018 Employee Stock Purchase Plan.
• Additionally, Mr. Herbert indirectly beneficially owns 63,658 shares of common stock through the Timothy P. Herbert 2018 Family Continuation Trust c/u the Timothy P. Herbert 2018 Grantor Retained Annuity Trust.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a slightly positive event, as the underlying vesting of a performance award indicates successful performance, and the tax withholding is a routine, non-discretionary transaction.

Positives

• The underlying event for the share disposition was the vesting of a performance stock unit award, indicating achievement of performance metrics by the CEO.
• The acquisition of 140 shares through the Employee Stock Purchase Plan in 2025 demonstrates continued participation in company equity programs.

Negatives

• A total of 968 shares of common stock were disposed of, reducing Mr. Herbert's direct beneficial ownership.

Future Outlook

This filing does not contain any forward-looking statements or guidance.

Industry Context

StockSavvy.ai notes that tax-related dispositions of shares upon the vesting of equity awards are a standard and routine practice for executives across all industries, particularly in the medical technology sector where equity compensation is a significant component of executive pay.

Comparison to Industry Standards

• The practice of withholding shares to cover tax obligations upon the vesting of performance stock units is a common and accepted method of managing executive compensation and tax liabilities, consistent with practices observed at peer companies in the medical device industry such as ResMed (RMD) and Philips (PHG).

Stakeholder Impact

• Shareholders: Minimal impact, as this is a routine, non-discretionary transaction for tax purposes and does not reflect a change in management's confidence or a significant shift in ownership structure.
• Employees: No direct impact, as this relates to executive compensation and tax management.

Key Dates

Keywords

Inspire Medical Systems, INSP, Timothy P. Herbert, CEO, Insider Transaction, Form 4, Stock Disposition, Tax Withholding, Performance Stock Unit, Employee Stock Purchase Plan