Mairs & Power released their third-quarter 2025 investor letter for the Small Cap Fund, citing a 2.06% return in the first nine months of 2025. The fund underperformed benchmarks like the Russell 2000 TR Index, S&P Small Cap 600 TR, and Morningstar U.S. Fund Small Blend. Check the top five holdings for insights into their best picks.

Inspire Medical Systems, Inc. (NYSE:INSP) was highlighted in Mairs & Power’s investor letter, showing a one-month return of 61.41% and a 26.28% decrease over 52 weeks. As of December 10, 2025, shares closed at $140.07 with a market cap of $4.142 billion. The company focuses on minimally invasive solutions for obstructive sleep apnea patients.

Mairs & Power’s investor letter mentioned that Inspire Medical Systems, Inc. (NYSE:INSP) faced challenges with GLP-1 usage, new product rollout delays, and billing issues. The company, along with MGP Ingredients and Knife River, detracted from relative performance during the period. Inspire Medical Systems, Inc. (NYSE:INSP) had a revenue increase of 10% in Q3 2025 compared to the same period in 2024.

Inspire Medical Systems, Inc. (NYSE:INSP) was held by 48 hedge fund portfolios at the end of Q3 2025, up from 34 in the previous quarter. The company reported revenue of $224.5 million in Q3 2025, a 10% increase from Q3 2024. While it shows promise as an investment, Mairs & Power believes certain AI stocks offer greater potential and lower risk.

Read more at Yahoo Finance: Inspire Medical (INSP) Fell Due to Multiple Headwinds