Tandem Diabetes Care, Inc. (NASDAQ:TNDM), a global insulin delivery and diabetes technology company, today reported its financial results for the quarter ended September 30, 2025 and reaffirmed full year 2025 guidance.

Third Quarter 2025 and Recent Highlights

Achieved record third quarter sales both in the United States (U.S.) and internationally
Demonstrated year-over-year and sequential gross margin improvement
Progressed multi-channel initiative by:
- Increasing pharmacy benefit coverage for Tandem Mobi to more than 40% of U.S. lives
- Introducing t:slim X2 supplies through a pharmacy benefit
Received 510(k) clearance from the U.S. Food and Drug Administration (FDA) for extended wear use of the SteadiSet Infusion Set
Filed a 510(k) with the FDA for Android mobile control of the Tandem Mobi insulin delivery system
Began global commercial rollout of t:slim X2 pump integration with the FreeStyle Libre 3 Plus CGM sensor

"Tandem delivered a strong third quarter performance marked by record quarterly sales, significant gross margin improvement, and meaningful progress on our key strategic initiatives," said John Sheridan, president and chief executive officer. "We are beginning to see the positive impact of our business transformation, which strengthens our ability to achieve Tandem's near- and longer-term goals, while continuing our commitment to improve the lives of people with diabetes."

Third Quarter 2025 Results Compared to Third Quarter 2024

Sales ⁽¹⁾: Worldwide sales increased to $249.3 million, which included sales outside the United States of $73.6 million. This is compared to worldwide sales of $244.0 million, which included sales of $72.3 million outside the United States.

Non-GAAP worldwide sales⁽²⁾ of increased to $249.3 million, which included sales outside of the United States of $73.6 million. This is compared to worldwide sales of $242.9 million, which included sales of $72.3 million outside the United States.

Shipments in the United States were more than 20,000 pumps. Shipments outside the United States were more than 9,000 pumps.
Gross profit ⁽¹⁾: GAAP gross profit was $134.3 million, compared to $124.7 million. GAAP gross margin was 54%, compared to 51%.

Non-GAAP gross profit⁽²⁾ was $134.3 million, compared to $124.3 million. Non-GAAP gross margin⁽²⁾was 54%, compared to 51%.
Operating loss: GAAP operating loss was $22.9 million, or negative 9% of sales, compared to $26.1 million, or negative 11% of sales.

Non-GAAP operating loss⁽²⁾ was $22.9 million, or negative 9% of sales, compared to $26.5 million or negative 11% of sales.
Net loss: GAAP net loss was $21.2 million, compared to net loss of $23.3 million.

Non-GAAP net loss⁽²⁾ was $21.2 million, compared to net loss of $23.6 million.

Adjusted EBITDA⁽²⁾ was $2.8 million, or 1% of sales, compared to $4.0 million, or 2% of sales.

(1)		The Tandem Choice program (Tandem Choice) concluded in 2024, and there was no impact to sales or margins for this program in 2025. See "Non-GAAP Financial Measures" below for additional information.

(2)		A reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures and additional information can be found in Table D "Reconciliation of GAAP versus Non-GAAP Financial Results" attached to this press release. Also see "Non-GAAP Financial Measures" below for additional information.

See tables for additional financial information.

2025 Financial Guidance

For the year ending December 31, 2025, the Company is reaffirming its 2025 financial guidance as follows:

Sales for the full year are estimated to be approximately $1.0 billion.
- Sales in the United States of approximately $700 million.
- Sales outside the United States of approximately $300 million, which reflects a $10 million headwind associated with the Company's preparation for direct commercial operations in select countries in 2026.
Gross margin is estimated to be approximately 53% to 54% of sales for the full year.
Adjusted EBITDA margin is estimated to be approximately negative 5% of sales for the full year, recast in the second quarter of 2025 from approximately 3%. The change was made to align with views expressed by the staff of the U.S. Securities and Exchange Commission to include an acquired in-process research and development (IPR&D) charge that occurred in the first quarter of 2025, which had an estimated impact of negative 8 percentage points.
Non-cash charges included in cost of goods sold and operating expenses are estimated to be approximately $115 million. This includes:
- Approximately $95 million non-cash, stock-based compensation expense.
- Approximately $20 million depreciation and amortization expense.

Non-GAAP Financial Measures

Certain non-GAAP financial measures are presented in this press release to provide information that may assist investors in understanding the Company's financial results and assessing its prospects for future performance. The Company believes these non-GAAP financial measures are important operating performance indicators because they exclude items that are unrelated to, and may not be indicative of, the Company's core operating results. These non-GAAP financial measures, as calculated, may not necessarily be comparable to similarly titled measures of other companies and may not be appropriate measures for comparing the performance of other companies relative to the Company. These non-GAAP financial results are not intended to represent, and should not be considered to be more meaningful measures than, or alternatives to, measures of operating performance as determined in accordance with GAAP. To the extent the Company uses such non-GAAP financial measures in the future, we expect they will be calculated using a consistent method from period to period and, if not, an explanation will be provided. A reconciliation of each of the historical GAAP financial measures to the most directly comparable historical non-GAAP financial measures has been provided in Table D "Reconciliation of GAAP versus Non-GAAP Financial Results" attached to this press release.

In the first quarter of 2025, the Company included an adjustment for IPR&D expense in its non-GAAP financials and provided guidance based on this practice. Beginning in the second quarter of 2025, the Company no longer included an adjustment for IPR&D expense in its non-GAAP results to align with views expressed by the staff of the U.S. Securities and Exchange Commission and 2025 results. The Company's guidance has been revised accordingly.

The accounting treatment for Tandem Choice, which was in effect from September 2022 through December 2024, had a high degree of complexity. When the program originally launched, the Company began deferring a portion of sales for each eligible t:slim X2 pump shipped in the United States. When a customer elected to participate in Tandem Choice upon the launch of Tandem Mobi in 2024, the Company recognized the existing deferral, incremental fees received and the associated costs of providing the new insulin pump at the time of fulfillment. Historical non-GAAP financial measures are presented in this press release to facilitate better comparisons of the Company's operating results across the reporting periods. Tandem Choice will not impact any financial measures for the year ending December 31, 2025.

Conference Call

The Company will hold a conference call and simultaneous webcast today at 4:30pm Eastern Time (1:30pm Pacific Time). The link to the webcast will be available by accessing the Events & Presentations tab in the Investor Center of the Tandem Diabetes Care website at http://investor.tandemdiabetes.com, and will be archived for 30 days. To access the call by phone, please use this link (https://register-conf.media-server.com/register/BIc606fdd6dfdd4cec879c519f6530a5c6) and you will be provided with dial-in details, including a personal pin.

About Tandem Diabetes Care, Inc.

Tandem Diabetes Care, a global insulin delivery and diabetes technology company, manufactures and sells advanced automated insulin delivery systems that reduce the burden of diabetes management, while creating new possibilities for patients, their loved ones, and healthcare providers. The Company's pump portfolio features the Tandem Mobi system and the t:slim X2 insulin pump, both of which feature Control-IQ+ advanced hybrid closed-loop technology. Tandem Diabetes Care is headquartered in San Diego, California. For more information, visit tandemdiabetes.com.

Tandem Diabetes Care, the Tandem logo, Control-IQ, Control-IQ+, Tandem Mobi and t:slim X2 are either registered trademarks or trademarks of Tandem Diabetes Care, Inc. in the United States and/or other countries.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that concern matters that involve risks and uncertainties that could cause actual results to differ materially from those anticipated or projected in the forward-looking statements. These forward-looking statements include statements regarding, among other things, the Company's projected financial results and the ability to achieve other operational and commercial goals. The Company's actual results may differ materially from those indicated in these forward-looking statements due to numerous risks and uncertainties. For instance, the Company's ability to achieve projected financial results will be impacted by market acceptance of the Company's products; products marketed and sold or under development by competitors; the Company's ability to establish and sustain operations to support international sales, including expanding into additional geographies; changes in reimbursement rates or insurance coverage for the Company's products; the Company's ability to meet increasing operational and infrastructure requirements from higher customer interest and a larger base of existing customers; the Company's ability to successfully commercialize its products; the Company's ability to develop and launch new products; risks associated with the regulatory approval process outside the United States for new products; the potential that newer products, or other technological breakthroughs for the monitoring, treatment or prevention of diabetes, may render the Company's products obsolete or less desirable, or may otherwise negatively impact the purchasing trends of customers; reliance on third-party relationships, such as outsourcing and supplier arrangements; global economic conditions; and other risks identified in the Company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, and other documents that the Company files with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Tandem undertakes no obligation to update or review any forward-looking statement in this press release because of new information, future events or other factors.

TANDEM DIABETES CARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
Table A
(in thousands)
	(Unaudited)
	September 30,		December 31,
	2025		2024
Assets
Current assets:
Cash, cash equivalents and short-term investments	$	319,111	$	438,329
Accounts receivable, net		125,940		114,585
Inventories		137,284		149,612
Other current assets		34,609		21,965
Total current assets		616,944		724,491

Property and equipment, net		77,920		78,150
Operating lease right-of-use assets		98,364		85,306
Equity method investment		64,904		74,545
Other long-term assets		16,521		5,166
Total assets	$	874,653	$	967,658

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable, accrued expenses and employee-related liabilities	$	124,475	$	127,028
Current portion of convertible senior notes, net		—		40,670
Operating lease liabilities		21,341		18,208
Deferred revenue		9,844		11,831
Other current liabilities		96,882		49,312
Total current liabilities		252,542		247,049

Convertible senior notes, net - long-term		309,590		308,266
Operating lease liabilities - long-term		118,353		106,421
Deferred revenue - long-term		8,823		10,455
Other long-term liabilities		52,380		32,369
Total liabilities		741,688		704,560

Total stockholders' equity		132,965		263,098
Total liabilities and stockholders' equity	$	874,653	$	967,658

TANDEM DIABETES CARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Table B
(in thousands, except per share data)
(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
Sales	$	249,253		$	243,971		$	724,353		$	657,555
Cost of sales		114,961			119,318			345,799			325,436
Gross profit		134,292			124,653			378,554			332,119
Operating expenses:
Selling, general and administrative		108,440			99,639			331,889			283,987
Litigation and settlement expense		—			—			19,951			—
Research and development		48,715			51,107			147,048			146,677
Acquired in-process research and development expenses		—			—			75,217			—
Total operating expenses		157,155			150,746			574,105			430,664
Operating loss		(22,863	)		(26,093	)		(195,551	)		(98,545	)
Total other income (expense), net		(2,280	)		3,479			(9,403	)		6,659
Loss before income taxes		(25,143	)		(22,614	)		(204,954	)		(91,886	)
Income tax expense (benefit)		(3,978	)		637			(833	)		4,894
Net loss	$	(21,165	)	$	(23,251	)	$	(204,121	)	$	(96,780	)

Net loss per share - basic and diluted	$	(0.31	)	$	(0.35	)	$	(3.04	)	$	(1.48	)
Weighted average shares used to compute basic and diluted net loss per share		67,652			65,538			67,040			65,287

TANDEM DIABETES CARE, INC.
SALES BY GEOGRAPHY
Table C⁽¹⁾
(Unaudited)

*($'s in thousands)*	Three Months Ended September 30,						Nine Months Ended September 30,
	2025		2024			% Change	2025		2024			% Change
United States:
Pump	$	84,785	$	86,722		(2)%	$	242,393	$	230,187		5%
Supplies and other		90,846		83,889		8%		254,079		227,888		11%
Adjustment for Tandem Choice		—		1,039		(100)%		—		47		(100)%
Total GAAP Sales in the United States	$	175,631	$	171,650		2%	$	496,472	$	458,122		8%
Adjustment for Tandem Choice		—		(1,039	)	100%		—		(47	)	100%
Total Non-GAAP Sales in the United States	$	175,631	$	170,611		3%	$	496,472	$	458,075		8%

Outside the United States:
Pump	$	25,329	$	28,077		(10)%	$	81,683	$	79,774		2%
Supplies and other		48,293		44,244		9%		146,198		119,659		22%
Total Sales Outside the United States	$	73,622	$	72,321		2%	$	227,881	$	199,433		14%

Total GAAP Worldwide Sales	$	249,253	$	243,971		2%	$	724,353	$	657,555		10%
Adjustment for Tandem Choice		—		(1,039	)	100%		—		(47	)	100%
Total Non-GAAP Worldwide Sales	$	249,253	$	242,932		3%	$	724,353	$	657,508		10%

(1)

The Tandem Choice program concluded in 2024, and there was no impact to sales for this program in 2025. A reconciliation of non-GAAP financial measures to their closest GAAP equivalent and additional information can be found in Table D and under the heading "Non-GAAP Financial Measures."

TANDEM DIABETES CARE, INC.
Reconciliation of GAAP versus Non-GAAP Financial Results
Table D
(Unaudited)

*($'s in thousands)*	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025⁽⁴⁾			2024
GAAP sales	$	249,253		$	243,971		$	724,353		$	657,555
Adjustment for Tandem Choice⁽¹⁾		—			(1,039	)		—			(47	)
Non-GAAP sales	$	249,253		$	242,932		$	724,353		$	657,508

GAAP gross profit	$	134,292		$	124,653		$	378,554		$	332,119
Adjustment for Tandem Choice⁽¹⁾		—			(374	)		—			645
Non-GAAP gross profit	$	134,292		$	124,279		$	378,554		$	332,764
GAAP gross margin⁽²⁾		54	%		51	%		52	%		51	%
Non-GAAP gross margin⁽²⁾		54	%		51	%		52	%		51	%

GAAP operating loss	$	(22,863	)	$	(26,093	)	$	(195,551	)	$	(98,545	)
Litigation and settlement expense		—			—			19,951			—
Non-recurring facility impairment and restructuring costs⁽³⁾		—			—			11,167			—
Adjustment for Tandem Choice⁽¹⁾		—			(374	)		—			645
Non-GAAP operating loss	$	(22,863	)	$	(26,467	)	$	(164,433	)	$	(97,900	)
GAAP operating margin⁽²⁾		(9	)%		(11	)%		(27	)%		(15	)%
Non-GAAP operating margin⁽²⁾		(9	)%		(11	)%		(23	)%		(15	)%

GAAP net loss	$	(21,165	)	$	(23,251	)	$	(204,121	)	$	(96,780	)
Income tax expense		(3,978	)		637			(833	)		4,894
Interest income, interest expense and other, net		2,280			(3,479	)		9,403			(6,659	)
Depreciation and amortization		4,493			4,211			13,171			12,362
Litigation and settlement expense		—			—			19,951			—
Stock-based compensation expense		21,141			26,281			72,271			73,217
Non-recurring facility impairment and restructuring costs⁽³⁾		—			—			11,167			—
Adjustment for Tandem Choice⁽¹⁾		—			(374	)		—			645
Adjusted EBITDA	$	2,771		$	4,025		$	(78,991	)	$	(12,321	)
Adjusted EBITDA margin⁽²⁾		1	%		2	%		(11	)%		(2	)%

GAAP net loss	$	(21,165	)	$	(23,251	)	$	(204,121	)	$	(96,780	)
Litigation and settlement expense		—			—			19,951			—
Non-recurring facility impairment and restructuring costs⁽³⁾		—			—			11,167			—
Adjustment for Tandem Choice⁽¹⁾		—			(374	)		—			645
Non-GAAP net loss	$	(21,165	)	$	(23,625	)	$	(173,003	)	$	(96,135	)

GAAP cash provided by (used in) operating activities	$	8,264		$	26,781		$	(19,510	)	$	13,508
Less: capital expenditures		(4,092	)		(5,239	)		(13,263	)		(16,162	)
Non-GAAP free cash flow ⁽⁵⁾	$	4,172		$	21,542		$	(32,773	)	$	(2,654	)

(1)		The accounting treatment for Tandem Choice had a high degree of complexity. The Tandem Choice program concluded in 2024, and there was no impact to sales for this program in 2025. Additional information can be found under the heading "Non-GAAP Financial Measures."
(2)		GAAP margins including GAAP gross margin and GAAP operating margin are calculated using GAAP sales. Non-GAAP margins including non-GAAP gross margin, non-GAAP operating margin, and adjusted EBITDA margin are calculated using non-GAAP sales.
(3)		In the first quarter of 2025, the Company recorded $11.2 million in impairment charges related to its operating lease right-of-use assets, and severance and other restructuring costs associated with the relocation of certain research and development activities.
(4)		In the first quarter of 2025, the Company included an adjustment for IPR&D expense in its non-GAAP financials and provided guidance based on this practice. Beginning in the second quarter of 2025, the Company no longer included an adjustment for IPR&D expense in its non-GAAP results to align with views expressed by the staff of the U.S. Securities and Exchange Commission and 2025 results and guidance have been revised accordingly.
(5)		Free Cash Flow is a non-GAAP financial measure that we define as cash provided by operating activities less capital expenditures.

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Tandem Diabetes Care Announces Third Quarter 2025 Financial Results