Tandem Diabetes Care, Inc.

Q2 worldwide sales were $255 million, up 6% year over year, and constant-currency growth was 5%. Worldwide pump shipments were approximately 33 thousand, and gross margin was 57%, up 5 percentage points year over year and 2 points sequentially. U.S. sales were $179 million, up 5% year over year, with U.S. pump shipments of 22 thousand, up 7%; international sales were $75 million, up 7% year over year, with approximately 11 thousand pumps shipped, up 19%. Adjusted EBITDA margin was 3% of sales, operating expenses were $159 million, and stock-based compensation was $16 million, or 6% of sales. Cash and investments ended at $456 million. Management reaffirmed 2026 guidance for worldwide sales of $1.065 billion to $1.085 billion, U.S. sales of $730 million to $745 million, international sales of $305 million to $340 million, gross margin of 56% to 57%, and adjusted EBITDA margin of 5% to 6% of annual sales. For Q3, management guided to about $265 million in worldwide sales, about $180 million in U.S. sales, about $85 million internationally, gross margin of about 56%, and adjusted EBITDA margin of about 2%.

John Sheridan framed Q2 as an important step forward, emphasizing execution across three priorities: reshaping the business model, modernizing the commercial organization, and delivering new technology. He highlighted early PAYGO momentum, broader access, the international direct-launch strategy, and new product progress including Control-IQ Plus expansion, Mobi’s international rollout, and the FDA filing for Mobi tubeless. His tone was upbeat and confident, with repeated comments that the company is on track and building momentum.

Leigh Vosseller emphasized that Q2 was a record second quarter for sales, pump shipments, and gross margin. She tied the margin improvement to pricing from channel strategy and product-cost improvement as Mobi volumes scale, while noting pharmacy adoption created an approximately $8 million revenue headwind in the quarter. She also said stock-based compensation is now expected to be about $65 million for 2026 versus the prior $80 million estimate, and that cash and investments declined to $456 million from $570 million at Q1 end due to CRM investment, the Roche settlement payment, and an investment in Secure.

Analysts pressed on whether pharmacy transition friction or pricing/convert pace could jeopardize the full-year targets for pharmacy-shipped pumps and revenue share. Management said the early PAYGO rollout has followed a normal learning curve, nothing surprising emerged, and momentum remains strong, though pump adoption has outpaced supply conversions so far. Questions also focused on U.S. shipment softness, gross margin durability, and Mobi tubeless timing; management said back-half growth should come from new products, pharmacy, and better MDI conversion, and confirmed Mobi tubeless was filed with the FDA in Q2 with a second-half scaled launch still planned.