Insulet Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter revenue reached $842.0 million, a 19.2% increase year-over-year (19.6% in constant currency), exceeding the high end of the guidance range.
• Total Omnipod revenue was $836.6 million, up 19.7% (20.0% in constant currency); U.S. Omnipod revenue rose 14.7% to $570.4 million, while International Omnipod revenue increased 31.7% to $266.2 million (33.0% in constant currency).
• Drug Delivery revenue was $5.5 million.
• Operating income was $189.8 million (22.5% of revenue), an increase of 590 basis points compared to the prior year.
• Adjusted operating income was $185.2 million (22.0% of revenue), up 490 basis points year-over-year.
• Net income was $141.1 million ($2.03 per diluted share), compared to $87.6 million ($1.24 per diluted share) in the prior year.
• Adjusted net income was $138.0 million, a 57.2% increase from the prior year.
• Adjusted earnings per diluted share were $1.99, a 59.9% increase from the prior year.
• For the nine months ended September 30, 2026, revenue was $2,405.4 million (up 25.0% year-over-year).
• Free cash flow for the nine months ended September 30, 2026, was $211.7 million, down from $329.5 million in the prior year period.
• Cash and cash equivalents were $584.4 million as of September 30, 2026, compared to $716.1 million as of December 31, 2025.
• Long-term debt, net, was $943.0 million as of September 30, 2026, compared to $930.8 million as of December 31, 2025.

Guidance and Future Outlook:

• Full-year 2026 revenue growth guidance (constant currency) is 21% to 22%, compared to the prior guidance of 20% to 22%.
• U.S. Omnipod revenue growth guidance is 17.5% to 18.5% (prior: 17% to 19%).
• International Omnipod revenue growth guidance is 32% to 33% (prior: 30% to 32%).
• Total Omnipod revenue growth guidance is 21.5% to 22.5% (prior: 21% to 23%).
• Drug Delivery revenue growth guidance is approximately (40%) (unchanged).
• Adjusted operating margin guidance indicates approximately 150 basis points year-over-year expansion (prior: ~100 basis points).
• Adjusted EPS growth guidance is greater than 30% (unchanged).

Business Segments and Product Lines:

• Omnipod Discover® has completed full U.S. market release, reaching over 35,000 users and 5,000 healthcare professionals.
• Omnipod 5 algorithm enhancements were extended to full retail across the U.S.
• Omnipod 5 Ecosystem expanded sensor choice to include Abbott's FreeStyle Libre 3 Plus CGM integration across Belgium, Netherlands, UK, Italy, Finland, Norway, Sweden, Australia, Switzerland, and Germany.
• Enrollment was completed in the STRIVE2 type 1 diabetes cohort, a key trial supporting Omnipod 6 development.
• Enrollment was completed in the EVOLVE pivotal study, supporting fully closed-loop automated insulin delivery for adults with type 2 diabetes.
• U.S. sales force expansion was completed, and the Type 2 action plan was executed through improved onboarding, customer support, sampling, and compensation alignment.

Market and Competitive Landscape:

• Real-world evidence presented at EASD 2026 from over 384,000 people with type 1 diabetes across 17 countries demonstrated consistent time-in-range outcomes for Omnipod 5.
• EVOLUTION 3 feasibility study data showed adults with type 2 diabetes using GLP-1 and CGM saw additional time-in-range benefits from fully closed-loop automated insulin delivery without user-initiated boluses.
• The company continues to strengthen its proprietary engagement platform to deliver personalized insights to people with diabetes and healthcare professionals.

Risks and Challenges:

• Risks include international regulatory, commercial, and logistics risks, including potential tariff expansions.
• Dependence on a principal product platform and the impact of competitive products or technological change.
• Ability to maintain an effective sales force, expand distribution, and secure reimbursement from third-party payors.
• Manufacturing challenges, including supply disruptions, sole-source supplier dependence, and quality system regulation compliance.
• Macroeconomic and geopolitical uncertainty, including the war with Iran, and risks associated with future pandemics.
• Potential adverse impacts from product recalls, safety issues, or unfavorable clinical study results.
• Risks related to intellectual property, data protection laws, and cybersecurity breaches.

Management Commentary and Tone:

• President and CEO Ashley McEvoy stated the team delivered a strong quarter with nearly 20% revenue growth and significant margin expansion.
• Management expressed confidence in the strength of the Omnipod platform and the company's long-term trajectory.
• The company is well-positioned for durable, profitable growth, with continued progress on the Type 2 action plan, commercial capabilities, customer base expansion, manufacturing scale, and innovation.

Other Key Points:

• The Board of Directors approved a $1 billion share repurchase program.
• The Company expects to allocate approximately $400 million toward repurchases in the fourth quarter of 2026, funded with existing cash.
• Voluntary medical device corrections (MDCs) issued in March and May 2026 resulted in net adjustments to estimated warranty and related costs.
• A loss on extinguishment of debt of $0.3 million was recorded in the third quarter related to the repricing of the Term Loan B.
• CFO transition costs related to severance benefits for the former CFO were adjusted in the non-GAAP reconciliation.