Tandem Diabetes Care — Third Quarter 2026 Earnings Summary

Financial Performance:

• Worldwide sales increased 14% year-over-year to $283.7 million, compared to $249.3 million in Q3 2025.
• U.S. sales grew 9% to $191.0 million, while international sales rose 26% to $92.6 million (27% in constant currency).
• Gross profit was $160.4 million, resulting in a gross margin of 57%, an improvement of 270 basis points from 54% in Q3 2025.
• Operating loss narrowed significantly to $2.4 million (negative 1% of sales) from $22.9 million (negative 9% of sales) in the prior year period.
• Net loss decreased to $7.1 million from $21.2 million in Q3 2025.
• Adjusted EBITDA improved to $18.0 million (6% of sales) from $2.8 million (1% of sales) in Q3 2025.
• Pump shipments totaled approximately 33,000 worldwide, including nearly 23,000 in the U.S. and 11,000 internationally.
• Cash, cash equivalents, and short-term investments increased to $443.1 million as of September 30, 2026, from $292.7 million at year-end 2025.
• Convertible senior notes, net, increased to $603.4 million as of September 30, 2026, from $310.0 million at year-end 2025.
• Deferred revenue decreased to $15.9 million total ($8.3 million current, $7.6 million long-term) from $18.0 million total ($9.5 million current, $8.5 million long-term) at year-end 2025.
• Non-GAAP free cash flow for the nine months ended September 30, 2026, was a use of $39.4 million, compared to a use of $32.8 million in the prior year period.

Guidance and Future Outlook:

• The company reaffirmed full-year 2026 sales guidance of approximately $1.065 billion to $1.085 billion.
• U.S. sales for 2026 are estimated between $730 million and $745 million.
• International sales for 2026 are estimated between $335 million and $340 million.
• Full-year 2026 gross margin is estimated to be approximately 56% to 57%.
• Full-year 2026 Adjusted EBITDA margin is estimated to be approximately 5% to 6%.
• Non-cash charges included in cost of goods sold and operating expenses are estimated at approximately $85 million for 2026, comprising roughly $65 million in stock-based compensation and $20 million in depreciation and amortization.

Business Segments and Product Lines:

• The scaled pay-as-you-go reimbursement model now accounts for 15% of U.S. sales through the pharmacy channel.
• Pharmacy formulary coverage expanded to approximately 50% of U.S. lives.
• Availability of t:slim X2 compatibility with the Abbott FreeStyle Libre 3 Plus Sensor was expanded to 11 international markets.
• Tandem Mobi international availability was announced in 12 countries.
• U.S. sales of supplies and other products grew 19% year-over-year to $107.7 million in Q3 2026.
• International sales of supplies and other products grew 26% year-over-year to $61.1 million in Q3 2026.

Market and Competitive Landscape:

• The company is advancing its pipeline and driving greater operating efficiency to create a foundation for sustainable, profitable growth.
• International sales growth was driven by the initiation of international direct operations.
• The company faces risks related to market acceptance, competitor products, foreign currency exchange rates, and changes in reimbursement rates or insurance coverage.

Risks and Challenges:

• Forward-looking statements note risks including market acceptance of products, competitor actions, foreign currency fluctuations, and the ability to sustain international operations.
• Risks include the success of the pay-as-you-go pharmacy channel, meeting operational requirements from customer growth, and regulatory approval processes for new products.
• Potential obsolescence from newer diabetes monitoring or treatment technologies is cited as a risk.
• Reliance on third-party relationships, such as outsourcing and supplier arrangements, is noted as a risk factor.

Management Commentary and Tone:

• John Sheridan, President and CEO, stated that third-quarter performance demonstrates the strategy is delivering results.
• Management highlighted expanding access to technology, strengthening the business model, advancing the pipeline, and driving operating efficiency as key drivers.
• The tone reflects confidence in creating a stronger foundation for sustainable, profitable growth.

Other Key Points:

• The company will hold a conference call and simultaneous webcast at 4:30pm Eastern Time on the date of the release.
• The press release includes reconciliations of non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA margin, and constant currency sales growth.
• In Q3 2025, the company recorded $11.2 million in impairment charges related to operating lease right-of-use assets and restructuring costs associated with R&D relocation.
• The company's pump portfolio features the Tandem Mobi system and the t:slim X2 insulin pump, both utilizing Control-IQ+ advanced hybrid closed-loop technology.