TNDM

Tandem Diabetes met Wall Street’s revenue and profit expectations in Q2, but the market responded negatively, likely reflecting investor caution around the pace of U.S. pump shipments and the near-term impact of the company’s business model transition. Management highlighted stronger pump shipment growth internationally and early traction from its new pharmacy channel in the U.S. CEO John Sheridan emphasized that the company’s ability to drive operational efficiencies and expand access to its technology contributed to improved margins and a more favorable product mix. Is now the time to buy TNDM? Find out in our full research report (it’s free). Revenue: $254.6 million vs analyst estimates of $253.8 million (5.8% year-on-year growth, in line) Adjusted EPS: -$0.31 vs analyst estimates of -$0.32 (in line) Adjusted EBITDA: $6.42 million vs analyst estimates of $3.52 million (2.5% margin, 82.2% beat) The company reconfirmed its revenue guidance for the full year of $1.08 billion at the midpoint Operating Margin: -5.4%, up from -21.5% in the same quarter last year Market Capitalization: $1.63 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Matthew Blackman (TD Cowen) asked about progress and challenges with the pharmacy transition. CEO John Sheridan said the rollout was tracking as planned, with no major surprises and ongoing efficiency improvements. Richard Newitter (Truist Securities) inquired about type 2 diabetes retention trends. Sheridan replied that type 2 attrition remained only modestly higher than type 1 and stable, emphasizing focused outreach and upcoming CMS policy changes. Larry Biegelsen (Wells Fargo) questioned the need for stronger U.S. pump growth in the second half. CFO Leigh Vosseller cited building momentum from new products and pharmacy adoption as key drivers. Anna Filipe (Piper Sandler) probed the rationale for maintaining gross margin guidance despite a strong Q2. Vosseller explained that pharmacy channel adoption dynamics, particularly pumps outpacing supplies, would create temporary margin variability. Joanne Karen Wuensch (Citi) followed up on Mobi tubeless FDA progress. Sheridan confirmed the filing occurred in Q2 and that a scaled launch was planned for the second half of the year, pending clearance. In the coming quarters, our team will focus on (1) the pace of pharmacy channel adoption and its impact on recurring revenue, (2) the FDA clearance and market introduction of Mobi tubeless and related infusion set technologies, and (3) stabilization of supply chain dynamics as new products come online. Progress on type 2 diabetes segment penetration and international direct market launches will also be important markers for sustained growth. Tandem Diabetes currently trades at $23.24, up from $18.79 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 4:30 p.m. ET Chief Administration Officer and Investor Relations - Susan Morrison President and Chief Executive Officer - John F. Sheridan Executive Vice President and Chief Financial Officer - Leigh A. Vosseller Operator: Thank you for standing by, and welcome to the Tandem Diabetes Care second Quarter 26 Earnings Conference Call. At this time, participants are in a listen-only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. If your question has been answered and you would like to remove yourself from the queue, simply press star 1-1 again. As a reminder, today's program is being recorded. And now I would like to introduce your host for today's program, Susan Morrison, Chief Administration Officer and Investor Relations. Please go ahead. Susan Morrison: Hello, and welcome to Tandem's 2026 Second Quarter Earnings Call. Today's discussion will include forward looking statements. These statements reflect management's expectations about future events, our product pipeline, development timelines, and financial performance and operating plans and speak only as of today's date. There are risks and uncertainties that could cause actual results to differ materially from those anticipated or projected in our forward looking statements. Which are described in our press release issued earlier today and under the Risk Factors portion of our most recent annual report on Form 10-K and quarterly report on Form 10-Q. Today's discussion will also include references to both GAAP and non GAAP financial measures. Please refer to our earnings release issued earlier today. And available on the Investor Center portion of our website for a reconciliation of non GAAP measures to their most directly comparable GAAP financial measure and other information regarding our use of non GAAP financial measures. John F. Sheridan, Tandem's president and CEO, and Leigh A. Vosseller, executive vice president and chief financial officer will be providing prepared remarks on today's call. After which, the operator will open the call for questions. Thank you for limiting yourself to 1 question before rejoining the queue. I will now turn the call over to John. John F. Sheridan: Thanks, Susan. We appreciate everyone joining the call today. The second quarter marked an important step forward for Tandem. We are executing against our strategic priorities while demonstrating operational momentum improving our financial performance, and providing broader access to our technology. This progress was evident in our results, with worldwide pump shipments growing more than 10% year over year and sequentially. In the U.S., the highlight of our performance was improvements in new pump start trends. Led by a standout number of people transitioning from multiple daily injection. Internationally, we saw an acceleration of adoption in the countries where we launched direct efforts earlier this year. Additional Q2 highlights included significant margin improvement. Including the second highest gross margin of any quarter in our company's history. We also advanced the global launch of new technologies. While preparing to expand our portfolio with the FDA submission for tandem Mobi's tubeless feature. We will discuss each of these accomplishments in greater detail on the call today. I will begin my remarks with an update on the 3 strategic priorities we laid out at the beginning of the year. Which included reshaping our business model, modernizing our commercial organization, and delivering new technology. In March, we launched pay as you go reimbursement in the pharmacy channel. This transition was designed to create clear benefits for customers, prescribers, and payers with better economics to tandem. During the second quarter, our focus was on early implementation. This included updating the end to end processes for how our technology is prescribed, how we support customers, and how our orders are processed. We are encouraged with the momentum behind this transition and beginning to see efficiencies that are positively contributing to our results. We now have approximately 45% formulary coverage. Which is already approaching the high end of our range for the goals this year. Access is a critical first step to driving PayGo adoption, and teams are now focused on driving plan utilization. In our first full quarter offering PayGo, US sales through the pharmacy channel increased to 10%. This early traction reinforces our confidence in the pharmacy strategy and the broad reaching benefits it can deliver. The second key initiative I will touch on is modernizing our commercial organization to improve productivity and support profitable growth. The work has been underway for the past year, and we are pleased with the progress. Key accomplishments include the deployment of a new CRM system, to improve Salesforce efficiency and effectiveness, provide deeper insights into our customer base, and support our global channel strategy. This includes enabling our US pharmacy transition and supporting direct commercial launches internationally. Our international direct launches began earlier this year in The UK, Switzerland, and Austria, with plans for France to follow in the fourth quarter. This strategy better positions Tandem to serve our customers and health care providers in these while strengthening our financial profile. The final key initiative I will discuss is our delivery of new technology. Starting with the expansion of our global portfolio. We continue to reinforce our competitive advantage with Control IQ plus which now has the broadest indication of any AID system in The US, including pregnancy. Similarly, we strengthened our advantage internationally. As we receive CE Mark in Q2 for pregnancy as well as adults living with type 2. Great excitement is also building internationally, as we are in the early stages of introducing tandem Mobi outside The United States. We plan to bring our tiny pump with big outcomes to more than 10 countries by year end, including some of our largest markets. In addition, our team has been working to broaden CGM compatibility. For Abbott's FreeStyle Libre 3 plus, t slim is now compatible in 7 countries outside The United States, We plan to expand to additional markets throughout the year. Dexcom's G7 15-day sensor is now compatible with Mobi and t slim in The US, international markets are soon to follow. These launches are consistent with our efforts to ensure the broadest possible coverage across devices and markets. Looking ahead, the team continues to drive long term innovation across our pumps, infusion technology, software ecosystem, and AID algorithms. Starting with pumps, reached an important R&D milestone in Q2 with a 510(k) submission for Mobi tubeless This new infusion side option is designed to transform the existing Mobi pump into a tubeless AID system. Giving users the unique flexibility to choose between tube and tubeless wear on a single hardware platform by simply changing the supplies they use. Compatible with the existing MobiPump, subject to FDA clearance, This will be Tandem's first tubeless pump offering and the world's first with extended wear technology. An important differentiator that enhances our position in this dynamic market segment. Pre commercial preparations are actively underway. Our goal remains to begin a scaled launch this year. After which time we will begin training our field and HCP community on the novel tubeless Mobi feature we will also begin updating our payer contracts and completing operational activities in support of the launch. Infusion technology is another key area of focus as we work to expand tube and tubeless options, improve comfort, extend wear time, and simplify the user experience. To support this, we are launching AutoSoft Plus, a new set designed to enable quick set changes with reliable 1-handed insertion. We introduced AutoSoft Plus in Canada, in late July and plan to expand to additional geographies including The U. S. Later this year. This timing is important as we continue to manage shortages from our key Infusion Set supplier. We believe Q2 was the period of greatest impact and our supplier expects availability will improve through the second half of the year. The launch of AutoSoft Plus is expected to reduce the demand for the SKUs currently under allocation. Looking to the first half of 27, we plan to provide further choice in infusion sets with the launch of SteadySet. Our proprietary technology that is FDA cleared for wear up to 7 days which is now in manufacturing scale up. The last technology advancement I will discuss is our work in automated insulin delivery. Since Tandem was founded, we have maintained our vision of creating an AID system worthy of the term artificial pancreas. Today, we are closer to this vision than ever and excited to begin sharing more details. Under our long standing research collaboration with the University of Virginia, we are advancing their next generation AdaNet algorithm into a compelling fully closed loop experience for everyone. AdaNet, which stands for automated insulin delivery as an adaptive network has been under active development and clinical testing for the past several years. We are developing a system designed to help both type 1 and type 2 users meet the clinical time in range guidelines whether they are new to pump therapy or long time users, Our goal is to achieve this without meal announcements or other user inputs. But because diabetes can vary day to day, we are also designing the system to incorporate additional user context and respond in more personalized way. This is an ambitious goal, but advancing close-in technology and solving the most complex real world use cases. Over the past 2 years, our development and user experience teams have been working toward that objective. Culminating in FDA approval of an IDE in Q2 and positioning us to begin a pivotal study later this year. Overall, the second quarter progress reflects the strength of our execution across the priorities that we set for the year. We remain encouraged by momentum that we are building remain focused on translating these initiatives into broader customer impact. While improving our financial performance. With that, I will turn the call over to Lee to provide more detail on financial results. Leigh A. Vosseller: Thanks, John. Our second quarter results reflect strong execution and accelerating progress across our strategic initiatives, which are beginning to deliver sustainable operational and financial benefits. It was a record second quarter performance worldwide for sales, pump shipments and gross margin. Beginning with sales, we shipped approximately 33 thousand pumps worldwide. This was driven by the continued demand for Control IQ, new product innovations, and improved channel access. Worldwide sales were $255 million, increasing 6% year over year or 5% in constant currency. This was the tenth consecutive quarter we delivered record results for the respective sales quarter, which is a trend we plan to continue building on even during our business model transition in the U.S., we shipped Q2 record of 22 thousand pumps growing 7% year over year. We have seen improvement in the new start trajectory with Q2 new starts nearly flat to last year, But stepping up impressively by more than 20% from Q1. Notably, new customers coming from MDI grew mid single digits year over year and now represent approximately 70% of new pump starts. This improvement was driven in part by increasing enthusiasm for Tandem Mobi which now represents more than half of our shipments to new customers as well as the availability of a more affordable option through pharmacy. Renewals at more than half of our pump shipments continue to be a robust source of business at double digit growth. This retention is a direct reflection of the value we place on delivering high levels of customer service, driving strong customer satisfaction. U. S. Sales totaled $179 million, increasing 5% year over year. This reflects measurable improvement in pharmacy adoption, partially offset by the expected impact of infusion set constraints from our key supplier. As John discussed, we continued the implementation and rollout of our PAYGO offering through the pharmacy channel that began in March. During the second quarter, our teams focused on educating patients and physicians about the offering as well as optimizing the new processes and workflows for scale. In this first full quarter under the PAYGO structure, pharmacy pump shipments were approximately 10% of total shipments. As a reminder, pump shipments through the pharmacy channel do not include upfront reimbursement which creates a near term headwind to revenue when compared to a traditional DME sale. This initial pump headwind is more than offset over time by higher pricing for recurring supplies for both new PayGo customers and existing customers who transition from use of their DME benefits. In the second quarter, the initial headwind from pharmacy pumps was approximately $8 million, yet we still saw more than half of our sales growth driven by net favorable pricing. This benefit came from the 6% of our US installed base of approximately 325 thousand people who use their pharmacy benefit to purchase supplies. As a result of this meaningful early adoption of both pumps and supplies through PayGo, sales through the pharmacy increased to 10% of total US sales in Q2. In our first full quarter of offering PayGo, pump adoption progressed slightly faster than supply conversions of existing customers, and is expected to continue to do so in the third quarter. Directionally, we anticipate that each of these measures will continue to step up across the quarters as momentum builds, tracking in line to achieve the average annual modeling assumptions we illustrated at the beginning of the year. I will also note that we are seeing a higher average monthly ASP for pharmacy supplies compared to the $350 per month originally provided for modeling purposes. We are not updating our baseline assumption at this time as we would like to gain more experience, but needless to say, the early data is encouraging. Turning to our international performance, we shipped approximately 11 thousand pumps in the second quarter, which is an increase of 19% year over year. While shipment growth in the quarter was primarily driven by our distributor markets, we are beginning to see encouraging traction in our direct European markets from our direct sales and marketing efforts, which reinforces our expectations for sustainable top line growth and margin expansion over time. International sales totaled $75 million, increasing 7% year over year, or 6% in constant currency. Direct channel sales represented approximately 13% of revenue, more than double prior year levels. As we continue executing our transition strategy. Sales reflect approximately $3 million of headwinds related to distributor inventory buybacks in markets where we have already transitioned to direct operations, as well as destocking ahead of future transitions. Sales for the quarter were also impacted by our key infusion set supplier's constraints, which, unlike The U. S, were greater than anticipated this quarter. The impact was largely due to timing as infusion sets were received late in the quarter, limiting distributor order fulfillment before quarter end. Turning to margins. Gross margin was 57%, improving 5 percentage points year over year and 2 points sequentially. It reflects continued execution against our key margin drivers, including price appreciation from our global channel strategies and product cost improvements as Mobi volumes continue to scale. Operating expenses were $159 million, remaining relatively flat year over year while we continue to invest in strategic growth initiatives in our global commercial infrastructure and product portfolio. Adjusted EBITDA margin increased to 3% of sales, demonstrating a positive result for the fourth quarter in a row. This continued improvement reflects the benefits of scale and sustained gross margin expansion, while maintaining investment in future growth opportunities. Stock based compensation expense decreased meaningfully in the quarter to $16 million or 6% of sales, down from 11% of sales in the prior year. This improvement reflects changes made in recent years to our equity granting to align with benchmark for companies of our size. We anticipate the stock based comp for the year will now be approximately $65 million, lower than our original expectation of $80 million. The reduction in this noncash expense meaningfully contributed to the 8-point improvement in operating margin at negative 5% of sales. We ended the quarter with a healthy balance sheet, including $456 million in cash and investments compared to $570 million at the end of Q1. The change reflects meaningful investments in a new CRM system to support global initiatives, the second annual payment under the Roche settlement agreement, and an additional strategic investment in Secure, a private company we have invested in since 2021. Secur provides simple mealtime insulin delivery through a wearable patch offering a low tech option for people with insulin dependent diabetes, who are not seeking an AID system. It complements our automation focused strategy for insulin intensive diabetes, while providing insights into a new type 2 segment to inform our long term strategy. Turning to our 2026 expectations, we remain confident in our ability deliver on our goals for the year and are reaffirming our sales and margin guidance. Worldwide sales are expected to be in the range of $1.065 billion to $1.085 billion. This includes US sales in the range of $730 million to $745 million and international sales in the range of $305 million to $340 million. We expect gross margins in the range of 56% to 57% and adjusted EBITDA margin of 5% to 6% of annual sales. For the third quarter, worldwide sales are expected to be approximately $265 million. This includes $180 million in The U. S, reflecting increasing pharmacy adoption. Internationally, we expect sales of $85 million taking into consideration seasonality typically experienced in the summer months and modest improvement in the availability of infusion sets from our supplier. Gross margin is expected to be approximately 56% and adjusted EBITDA margin approximately 2% of sales, based on pharmacy pricing dynamics, as well as a planned increase in operating expenses in support of commercial initiatives. We continue to expect to achieve our highest margins for the year in the fourth quarter driven by an increasing percent of our U. S. Installed base ordering pharmacy supplies, seasonality in US DME pump sales, and a larger direct presence in Europe. In closing, the strength of our second quarter performance demonstrates continued advancement against our strategic and financial objectives. We remain focused on driving sustainable growth, expanding profitability and delivering long term value for our shareholders. With that, I will turn the call back to John. John F. Sheridan: Thanks, Lee. Before we close, I want to recognize the entire Tandem team for the focus and the care you continue to bring to work every day. Your efforts are helping us advance our priorities, support our customers and health care providers, and sustain progress across the business. Thank you for everything you do on behalf of Tandem and the diabetes community we serve. In conclusion, our second quarter performance reflects solid execution against the priorities we set for the year and reinforces our confidence in Tandem's strategic direction. Looking ahead, we remain focused on building on this momentum, expanding customer impact through affordable and innovative technology, supporting profitable growth, and building our leadership position in diabetes technology. Thank you again for joining today. We are excited about the opportunities that ahead and look forward to sharing updates on the continued execution in the upcoming quarters. Thank you. Operator: Our first question comes from the line of Mathew Blackman from TD Cowen. Your question please. Matthew Blackman: Good afternoon, everybody. Can you hear me okay? John F. Sheridan: Yep. How are you doing, Matthew? Matthew Blackman: Doing well. Thanks, John. Maybe John or Lee, could you just maybe talk about some of the areas perhaps of friction in the pharmacy transition process that you are finding and know, maybe whether there have been any surprises, good or bad, in that discovery process know, relative to the full year guide you gave, just the conviction you have today still in that full year guide for 20% of pump shift through the pharmacy, 10% for the installed base, 15% of revenue. Just, you know, anything that helps give us some confidence as well that the ramp is, is going as planned? Thank you. John F. Sheridan: Suraj. Well, I would say that we are actually very pleased with the early PAYGO experience. It reinforces our conviction that this is an important and meaningful opportunity for the business. I would say that, you know, the things that we experienced this quarter would be the normal learning curve that comes along with implementing a new process. As we have said, the process actually you know, it is it is it is a end to end change in how we do business, how the ACPs prescribe, how we service the customers, and how we fulfill orders. So it is a it is a meaningful change to the business. But I would say, there was nothing that was, surprising. We feel like we are on track. We are still continuing to work on developing efficiencies. I think that, you know, when you look at the performance, 10% of the sales went through pharmacy. that is when you think about that, it is really the first quarter of, of meaningful, you know, presence in the pharmacy channel. We are very happy with it. And, it just continues to reinforce the fact that this is a significant opportunity for us, and we are gonna continue to plug away as we have. Thank you, John. Thank you. Operator: And our next question comes from the line of Richard Samuel Newitter from Truist Securities. Your question please. Felipe: Hi. This is Filipe on for Rich. You know, your largest competitor called out retention issues in the type 2 community. So I just wondering if you could maybe comment on your experience with type 2 patients in the quarter and if you are seeing any of those trends. Thanks for taking the question. John F. Sheridan: Yeah. I am you know, I think that, again, I just like pharmacy. Type 2 expansion is another huge opportunity for us, and that is gonna really drive growth going forward. You know, it is an underpenetrated market both in The US and internationally. Certainly requires market development, and there is still a lot of learning to do. Know, we are not gonna talk specifically about the numbers today. it is early, and there is still a lot of sources of growth that is in process. But I will say relative to attrition, that our type 2 attrition, it is really modestly higher than our type 1 rate. And it is been stable over the past 5 years. You know, we have employed a strategy where we intentionally are selective of and focus on patients who have the highest likelihood of success. And I think that is pretty much what is driving you know, that success in the attrition for us. You know? And as far as the indicators that I think that we want to keep track of, you know, there is the c the c peptide decision with CMS. You know, we had we went and actually spoke to CMS in the last few weeks with a consortium of others trying to eliminate the C peptide decision. And I think we made a on what the impact is on the Medicare population of having to do this. And I think we left the meeting pretty optimistic and it is this month. it is August of when we expect to hear results. We also expect tailwinds from FreeStyle Libre 3, from Mobi Tubeless Pharmacy Access, And, you know, we continue to invest in, I would say, just digital marketing and creating awareness with PCPs and HCPs. So, you know, I think we are again, we are very excited about this. it is you know, it is an important part of our strategy going forward, and we anticipate seeing growth in type 2 MDI during the year, and we will continue to report on it as things go on. Thank you. Operator: And our next question comes from the line of Larry Biegelsen from Wells Fargo. Your question please. Larry Biegelsen: Good afternoon. Thanks for taking the question. Lee, The U. S. Pump shipments were a little soft in Q2 year over year basis, sequential basis. From what we typically see. And new starts were flat, and I think you know, you had expected them to be up year over year in Q2, I think. So is there anything to call out in Q2? And it does look like you need, call it, 12% to 13% year over year pump growth in the second half. To reach the midpoint of The U. S. Pump guidance. So what are the drivers of that acceleration in pump shipments in the second half? Thanks. Leigh A. Vosseller: Suraj. Thanks for the question, Larry. So we did see we saw strong growth. And remember, we are at the very beginning of a lot of our initiatives that we expect to gain momentum across the year. So to your question about what really going to drive that back half strength, we have a number of new products under launch right now. And so an example would be FreeStyle Libre 3, which we launched late last year, Mobi Android also late last year, early into this year, and we are already seeing results from that. We are seeing that our Mobi starts are growing to more than half of our new pump starts. We have pharmacy, which as John spoke to earlier, it is the first full quarter of that, and it is really removing that affordability barrier that people have had. To shift to pump therapy. And so as we drive that momentum forward, those are some of the areas that we expect to really put us give us that back half strength. 1 thing I will highlight on the new starts this quarter, while we were just short a few hundred pumps from growth, Actually, what we saw were that MDI conversions, which arguably is the most important metric, grew mid single digits year over year. And it is been an improving trajectory over the last few quarters. And so that is the signal that we need to support that we the confidence that we have the year in terms of reaching that back half strength and continue to see new start growth this year. Thank you. Operator: And our next question comes from the line of Matthew O'Brien from Piper Sandler. Your question please. Anna: John Lee. This is Anna Filipe on for Matthew. Thanks for taking our question. I guess, want to ask on gross margin. Was really strong in the quarter. Much better than we had modeled. And just curious to understand the thought process behind the reiterated gross margin guide, given the outperformance there and the strong adoption you are seeing on the pharmacy side, I am curious why it is supposed to sort of step down sequentially in the third quarter. So just any thoughts there would be helpful. Thank you. Leigh A. Vosseller: Suraj. Yes. So we are very excited to share this gross margin progress that we are making. it is something that is been a I would say, a point of contention for many years. And to have this significant of a step up is a really good demonstration of where this can go in the future. And that is on still a relatively low percentage of sales coming from pharmacy. And so 2 things really drove the strength this quarter. It was the pricing benefit from the pharmacy channel as we continue to push that adoption percentage. Also, the fact that the Mobi volumes are growing and scaling, and so that is contributing from a cost perspective. As we look ahead, we guided to a point down in Q3 but still achieving that 60% gross margin in the fourth quarter. And that just comes from the variability as we push this pharmacy adoption. And so the 2 levers are really what percentage of pumps go through pharmacy at that $0 price which actually creates a headwind on sales, which pressures the gross margin. And then you have that added benefit that comes from the people ordering supplies in the pharmacy channel. And so as we look forward to the pacing, we anticipate that the pump adoption in PAYGO might outpace in the next quarter the pharmacy supplies adoption. And so that just plays a little bit with the margin optics. But in the long term, this is really to drive great strength overall as we continue to accelerate this initiative. Thank you. Operator: And our next question comes from the line of Suraj Kalia from Oppenheimer. Your question please. Jacob: Hi, great. Thanks. This is Jacob on for Suraj. Thanks for taking the questions. I guess just looking at Mobi tubeless and the ramp there, are there any gross margin dynamics we should keep in mind during the phase launch? Does it carry different consumable mix or cost structure that could create any temporary changes in the margin before you reach scale? Leigh A. Vosseller: Yes. Thanks for the question, Jake. it is a really important point. With any new product that you launch, you are not going to reap the full benefits until you get to a level of scale. And so much like when we first launched Mobi a few years ago, we saw a little bit of a headwind in gross margin. But not incredibly meaningful. And just more so keeps it flat and not necessarily continuing to step up. But there is really nothing else to speak to. We are super excited for that technology to come to market. And so the other area I would speak to as we think about a launch of a product of that magnitude would be you might see a step up in sales and marketing as we make that we are getting the awareness out there as quickly as possible. Operator: And our next question comes from the line of Joanne Karen Wuensch from Citi. Your question please. Joanne Karen Wuensch: Good evening, and thank you for taking the question. I would just wanna double click on Mobi tubeless, and I wanna confirm or ask if it has been filed with the FDA. And what is your current updated timing on that launch? Thank you. John F. Sheridan: Hi, Joanne. I have to say we have filed it and we just filed it in the second quarter. Right now it is under review. We are very excited about this. it is we have made this clear. it is it is the first extended work packs that will be on the market it is, you know, it is it is it is it is gonna be a great product, and we are very excited to have it out there. When it comes to what is what is next, I mean, we are obviously gonna be waiting clearance but we are we are planning on having clearance and actually beginning the scaling launch in the second half of this year. You know, what we have to do still is once we get a you know, the clearance or some things we will probably have to do to make changes in the documentation for the FDA. there is training we have gotta conduct with our own people and with HCPs. there is contracts we have got to know, go out and start to modify. Then we initiate this early access program where we put patients on the product for you know, a few weeks to a month just to make sure that it is performing the way we expect it to. So we are all we are planning for all of this, you know, including, you know, kind of a an aggressive marketing program once, it does get approved and well, again, really looking forward to getting this into the market this year. But it will be a scale launch for the rest of this year. Thank you. Operator: And our next question comes from the line of Mike Kratky from Leerink Partners. Your question please. Mike Kratky: Hi, everyone. Thanks for taking our questions. Maybe just to follow-up on Matthew's question earlier on the confidence in maintaining that 20% of U. S. Shipments through the pharmacy this year. I mean, would seemingly require a fairly major step up for 3Q and 4Q. So just curious in terms of the quarterly cadence between 3Q and 4Q that is built into your expectations there. And is that 4Q exit rate a reasonable assumption for a jump off point for 2027? Leigh A. Vosseller: Yes. Thanks for the question, Mike. So the way I will start first is thinking about what the opportunity is. And today, we already have 45% formulary coverage. And so we are at a point where we are nearing the high end of our range of goals for this year in terms of coverage and access. And so the opportunity exists. As John talked through how we launched in the second quarter, in the early months, there are just things you learn, and you have to scale, and you have to adjust, and you to pivot along the way, and the momentum is strong. And so we feel really good that it is going to keep growing. In fact, in the second quarter, we shipped more pumps through PayGo than we did all of last year in our old pharmacy model. And so it is moving in a really good direction. And when you take away that cost per patient, it is easier to bring new patients onto the technology. We just have to get through some of these early learnings and really start driving that awareness with each and the patients that this opportunity exists. And so when we thought about second quarter, we built in a pretty hefty step up in terms of percentage that we would expect to go through pharmacy. And a really high exit rate as well. So we have not given any specific details on what those numbers are, but it will continue to step up meaningfully each quarter. And we feel very convicted in the ability to achieve that. Understood. Thanks. Operator: Thank you. And our next question comes from the line of Karen Ryan from Deutsche Bank. Your question please. Karen Ryan: Hi, there. Thanks for taking my question. I just wanted to check-in on how you are tracking on converting users over to pharmacy at renewal. If you wanna maybe talk about some of the patterns and trends you are seeing there and how that can to some of the other pharmacy growth opportunities and new starts or in warranty conversions, which I think are kind of the most attractive for you since they do not come with the pump headwind. Thanks. Leigh A. Vosseller: Suraj. So have not really spoken to any particular details about the sources. Where pharmacy is driving the most opportunity. But as you point out, I will go through a couple of just pieces of information. For new starts, it is very attractive. Many of those folks who are coming from MDI never moved to pump therapy because of the cost. So it is something that it makes it easier to have those conversations about what the products offer because they have to worry about the cost burden in mind as much. For renewal customers, where it can help when they are out of warranty, would really be that they do not have to wait as long. Sometimes they go through that same cycle where they do not wanna make that next purchase. Their pump's still working fine, but this helps them be able to move forward more quickly with a renewal and or a switch If they were on PSIM and they wanna move to Mobi, it gives them that opportunity. We do not particularly focus on shifting our own in warranty customers over, but it make it easier for patients who wanna convert from other technologies that may be in a contract to shift to our product in the pharmacy channel. So there are many ways where we can drive this penetration with pharmacy that will contribute to us achieving that 20% target that we have set out for the year. Thank you. Operator: And our next question comes from the line of Jason Bedford from Raymond James. Your question please. Elena: Hi, this is Elaine on for Jayson. Thanks for taking my question. I was wondering, can you share some more color on how your conversations with payers have evolved since introducing PayGo? You mentioned seeing a higher price than your initial expectation, which sounds interesting. Could you maybe share a little about what might be driving this, and do you see an opportunity for a higher price in the future? Thank you. Leigh A. Vosseller: Suraj. So from the payer perspective, I would say we have already have contracts with the top 3 PBMs. So we have really great, coverage there. And, basically, anyone else that is up, we pretty much are talking to them. And we are at different points or stages in our negotiation. And so it is going very well. The new model is making a big difference in terms of getting that formulary coverage versus the model that we had last year. So we are going to continue to pursue that. And as we look ahead, it will become more about protecting and defending what we have and continuing to drive preferred access in cases where we do not have that today. The pricing, so we had set out, I am gonna say, a modeling for people to start at $350 per month per patient. The contracts that we have varying levels of rebate associated with them. And also an unknown for us is what level of co pay assistance that patients might actually utilize. And so, we factored in conservatively that we could do at least $350 a month We did indeed, do better than that in the second quarter, but I would dare say we do not have a sustainable trend necessarily to say this is the new number that it will be. So we wanna monitor this over the next couple of quarters and see where it starts to shake out on a on a regular basis. And then we can talk more about what that looks like in the future. I think it is fair to say that we have our eyes set on a higher number down the road. As we see in the market that competitively others speak to higher price points. And so we look forward to driving towards that number ourselves. Operator: And our next question comes from the line of Anthony Charles Petrone from Mizuho. Your question please. Analyst: Hey. Hello. Good night. This is on for Anthony. it is congrats on the print of You know, it is pretty good across most sectors, but it looked like international supplies was maybe a little weaker than expected and do not know if you can provide any you know, color or what is what happened there in the quarter and maybe if there is anything we should be thinking about for the rest of the year? And maybe a quick follow-up I think, you know, we all look forward to Mobi tubeless and just I feel like we have not heard much about Sigi lately, and I do not know if you can get an update around that. Thanks. Leigh A. Vosseller: I will start with the supplies question internationally. So we have been, I would say, on our worldwide business managing through an supply chain constraint with infusion sets that come from a third party. it is something that began late last year but became more impactful here in the first half of 26. We believe the greatest impact was in the second quarter. And for us, that was the primary reason that we saw softness in supply sales in the second quarter. We did receive the level of inventory allocation that we expected to get in the second quarter. So we can say that we believe we are on track with our supplier with what we should get this year. It just came so late in the quarter we were not able to turn it around and get it into distributors' hands before we close the quarter. So it is really more of a timing element there. And again, we do think second quarter has the greatest impact. We will still see some impact in the next couple of quarters, but it will lessen across the year. And at this point, we like we are managing well through the situation, and we still feel confident in achieving our guidance for the year. John F. Sheridan: And then relative to SIGI, I would say that we have taken the technology resources from Switzerland and brought them here to San Diego. Now we are working on I would say, the next generation Mobi. The next generation Mobi will incorporate the Sigi technology and also some of the Mobi technology. And that is that is going to come to market in a while. I would say that right now, our focus really is to get Mobi tubeless to the market. We think that Mobi tubeless is gonna have a meaningful life. You on the order of a 2- to 3-years. And in that time frame, we will continue to work on the next generation Mobi which, as I said, will include the technology that we purchased from Sigi, and we think that will be a great next product, but it is not gonna be in the market for a little while. Okay. Thanks, guys. Operator: Thank you. And our next question comes from the line of Travis Lee Steed from Bank of America. Your question please. Grace: Hi. This is This is Stephanie on for Travis. Congrats on filing Mobi and being on track for the launch. Just wanted to ask how we should think about the launch ramping and uptake into 2027 with other competitors coming to market potentially end of this year and early next year with their patch pumps. And maybe any preliminary thoughts on market growth in The US in 2027 and how these patches can accelerate growth. John F. Sheridan: Right. I think when you look at the market today, there is a tube space and a tubeless space. And if you look at the market growth rate in the tube space, it is single digits, maybe mid single digits. If you look at the growth rate of the market in the tubeless space, it is over 20%. And so, you know, we think getting into that market with a tube product is gonna give us access to a significantly higher interest level and it is going to drive meaningful growth. The point where I think this will be an inflection point in our revenue curve when it is on the market and fully released. I think as I said, there is still uncertainty from the FDA and, you know, we have gotta get through our launch processes. But I would say that we do expect to have the product on the market in the second half of this year. I would say that 27 is really gonna be a full year where we have the product in the market. I do believe it will compete effectively against all of the existing and devices that are that are near release as well. And I can say that we have done that through a number of marketing panels where we have just you know, we basically just spent a lot of time understanding what people like about what is on the market as well as, as well as tubeless Mobi. And then at the ADA, we did a number of we had a number of seminars or sessions with physicians where we actually sat that down in the room, and we showed them product. We showed them how we needed this to transition from a tube to a tubeless device. And I have to say that the response was just overwhelmingly positive. So, you know, we think Mobi tubeless is gonna be a very important device for us. It will start this year, but I think 2027 will be the year where we will really see the positive impact on not only on revenue, but on margin. Thank you. Operator: And our next question comes from the line of Jonathan Block from Stifel. Your question please. Jon Block: Great, guys. Thanks. Good afternoon. I am just curious Lee, roughly how much higher has pharmacy been running above that initial $350 per month assumption? And maybe what that does or does not say about the number of people transitioning to pharmacy for supplies? In other words, it is running decently above, I think that would imply that the number of conversions is running a little bit behind plan, if I got that correct, and any thoughts why that would be the case? Leigh A. Vosseller: Yeah. Great question. I am not gonna speak to the difference that we saw in price versus the modeling assumption we had put out specifically Other than your point is accurate that some of that pricing benefit was part of the reason for the overachievement in the quarter. What we did see in this early adoption phase, and this is really as there is a lot of things to work on as the volumes are coming through pharmacy. There was a little bit more of a focus on getting the PAYGO pumps out the door. So thinking about bringing those new patients into the family who really want a pump. And for patients who are already ordering supplies from a through DME who are happy customers, no rush to push them through. A lot of it is a balancing act because all of this takes physicians' time to write new prescriptions. And so as we get the workflows going and the efficiency efficiencies driving, we will continue to push on those conversions of existing customers So the pump adoption slightly outpaced I would call, the patient conversion or adoption that you have there on the supply side. And we expect that may continue into the third quarter but that it will really start to change as we get into the fourth quarter and going into next year when we have that co pay assistance to help people, especially when they usually meet those deductible resets in the first quarter. Perfect. Thank you. Operator: Thank you. Our next question comes from the line of Dane Reinhart from RW Baird. Your question please. Dane Reinhart: Hey, John and Leigh. Thanks for the time and questions here. Just 1 quick 1. I mean, it is been a few quarters now since you have kind of had that type 2 label expansion. I think you are a few quarters in now as well to really pushing with your sales force and having them go on kind of the full offense there. So just any indications of maybe what percentage of your new starts are type 2 right now and just what you are seeing in that underlying market? From an overall growth perspective? Thanks. John F. Sheridan: Yeah. Thanks, Dane. You know, I think we have chosen to stay away from giving specific numbers about how we are doing. And I think what we really want investors to focus on is the broader indications for adoption. And I will say that, you know, you are right. We have really this is this year is you know, last year was kind of piloting to understand how this year, you know, we really worked with Salesforce you know, in terms of they have objectives in terms of you know, of type 2 sales, etcetera. And as I said, when you look at these indicators, they are they are all moving in a positive direction, and we think that is gonna drive growth over time. And I mentioned the C peptide decision You know, we expect that is going to be made this month. We expect it to be positive. Do not really know how that implementation will occur. I think any steps in a positive direction will be good for people with type with type 2. Then we also have a number of like, I just structural things. Like, we have FreeStyle Libre 3, which we know is, you know, something that is that is going to drive. it is a large market. it is underpenetrated. it is gonna drive type 2 interest. Mobi tubeless, of course, will, and so will the pharmacy access. So I think there is a lot of things that we have got lined up that are all going to have a favorable effect, but you know, I think we have chosen not to speak directly about the numbers at this point in time. So thank you. Thank you. Operator: This does conclude the question and answer session as well as today's program. Thank you, ladies and gentlemen, for your participation in today's conference. You may now disconnect. Good day. Before you buy stock in Tandem Diabetes Care, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Tandem Diabetes Care wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Tandem Diabetes (TNDM) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Tandem Diabetes Care (TNDM) is back in focus after reporting second quarter 2026 results that paired record worldwide sales and a smaller net loss with reaffirmed full year sales guidance. See our latest analysis for Tandem Diabetes Care. The strong second quarter update has coincided with a sharp reversal in sentiment around Tandem Diabetes Care, with a 45.61% 1 month share price return and a 99.29% 1 year total shareholder return, even though the 3 year total shareholder return remains down 21.31%. If you are looking for other healthcare names linked to data rich devices and software, this is a good moment to see what stands out in the 43 healthcare AI stocks Tandem Diabetes Care now appears to be a much stronger business than it was a year ago, yet the share price has already moved significantly in response to that narrative. The key question is whether the current valuation still leaves enough potential for further gains. The most followed narrative on Tandem Diabetes Care places fair value at $29.20 against a last close of $22.38, which implies meaningful upside according to that framework. Read the complete narrative. Want to see what sits behind that fair value for Tandem Diabetes Care. The narrative leans heavily on recurring supply revenue, improving margins, and a richer earnings profile. Keen to understand how those moving parts are modeled across several years and tied to a specific discount rate. The full breakdown lays out the revenue ramp, profitability shift, and terminal assumptions that connect today’s price to that $29.20 figure. Result: Fair Value of $29.20 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Tandem Diabetes Care still faces real pressure from rising competition, as well as the risk that pharmacy and international expansion introduce extra complexity and reimbursement uncertainty. Find out about the key risks to this Tandem Diabetes Care narrative. With sentiment around Tandem Diabetes Care clearly split between caution and optimism, consider reviewing the underlying data yourself and acting while the picture is fresh in mind. To see both sides laid out clearly, including the key risks and rewards investors are focused on, start with the 3 key rewards and 1 important warning sign. If Tandem Diabetes Care has sharpened your focus on opportunities, do not stop here. Broaden your watchlist with structured ideas built from consistent, data driven filters. Target stability and lower volatility by reviewing companies screened as 79 resilient stocks with low risk scores for potentially steadier portfolio anchors. Hunt for mispriced quality by scanning the 51 high quality undervalued stocks that combine solid fundamentals with prices that may not fully reflect them. Spot potential future standouts early by working through the screener containing 19 high quality undiscovered gems before they are widely followed. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TNDM. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record Q2 worldwide sales and pump shipments, driven by strong demand for Control-IQ and the successful scaling of the Tandem Mobi platform. Successfully initiated the 'Pay-As-You-Go' (PayGo) pharmacy reimbursement model, reaching 45% formulary coverage and seeing 10% of U.S. sales transition to this channel in its first full quarter. Improved U.S. new pump start trends, specifically noting that 70% of new customers are transitioning from multiple daily injections (MDI), a key growth demographic. Realized significant margin expansion, delivering the second-highest gross margin in company history due to favorable pricing dynamics from the pharmacy shift and manufacturing efficiencies as Mobi scales. Modernized the global commercial organization through a new CRM deployment to support direct sales transitions in European markets like the UK, Switzerland, and Austria. Advanced the product portfolio with the FDA submission for Mobi's tubeless feature, designed to offer users flexibility between tube and tubeless wear on a single hardware platform. Reaffirmed full-year 2026 sales guidance of $1.065 billion to $1.085 billion, assuming a significant step-up in U.S. pump shipments and pharmacy adoption in the second half. Anticipates a scaled launch of the Mobi tubeless feature in late 2026, following expected FDA clearance and subsequent healthcare provider training and payer contract updates. Expects gross margins to reach 60% in the fourth quarter, driven by a higher percentage of the U.S. installed base ordering supplies through the pharmacy channel. Plans to initiate a pivotal study for the AdaNet fully closed-loop algorithm later this year, aiming for a system that requires no meal announcements or user inputs. Projects improvement in infusion set availability through the second half of the year as the key supplier resolves allocation constraints and the new AutoSoft Plus set launches. Identified a $3 million headwind in international sales due to distributor inventory buybacks and destocking related to the transition to direct commercial operations. Acknowledged ongoing infusion set supply constraints from a third-party provider, which had a greater-than-anticipated impact on international distributor fulfillment in Q2. Executed a strategic investment in Secur, a wearable patch pump company, to gain insights into the type 2 diabetes segment for patients not seeking automated insulin delivery. Noted that while pharmacy pump shipments create a near-term revenue headwind of approximately $8 million, this is expected to be offset by higher recurring supply pricing over time. Management reported no major surprises during the early implementation, describing challenges as a standard learning curve for end-to-end process changes. Expressed high conviction in the 20% full-year shipment target, noting that Q2 PayGo shipments already exceeded the total for all of the previous year. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management stated that type 2 attrition is only modestly higher than type 1 and has remained stable for five years due to selective patient targeting. Expressed optimism regarding a potential CMS decision in August to eliminate C-peptide testing requirements, which would remove a significant barrier to Medicare access. The projected slight dip in Q3 gross margin is attributed to the timing of pharmacy pump adoption (a revenue headwind) potentially outpacing supply conversions. Confirmed that long-term margin strength remains intact as the installed base shifts toward higher-margin pharmacy supply recurring revenue. Management believes Mobi tubeless will effectively compete with existing patch pumps by offering the unique ability to switch between tube and tubeless configurations. Highlighted that the tubeless market segment is growing at over 20%, significantly faster than the single-digit growth seen in the traditional tube space. Resources from the Sigi acquisition have been moved to San Diego to develop a 'next-generation Mobi' that merges both platforms. Clarified that this integrated product is a longer-term project, as the current focus is on the 2-3 year lifecycle of the upcoming Mobi tubeless launch.

Interested in Tandem Diabetes Care, Inc.? Here are five stocks we like better. Record second-quarter performance: Worldwide sales rose 6% year over year to $255 million, while pump shipments increased more than 10% to approximately 33,000. Gross margin reached 57%, and adjusted EBITDA margin was positive for the fourth consecutive quarter at 3%. Pharmacy-channel transition is progressing but weighs on near-term revenue: Pharmacy shipments represented about 10% of U.S. shipments during the first full quarter of the PAYG offering, with formulary coverage reaching approximately 45%. Tandem estimated the transition reduced second-quarter revenue by about $8 million, though higher recurring supply prices are expected to offset the impact over time. Outlook and product pipeline remain intact: Tandem reaffirmed its 2026 sales outlook of $1.065 billion to $1.085 billion and expects supply constraints to ease in the second half of the year. The company is pursuing FDA clearance for a tubeless Mobi option, plans to launch its seven-day SteadiSet infusion technology in 2027, and expects to begin a pivotal AIDANET study later this year. Tandem Diabetes Care (NASDAQ:TNDM) reported second-quarter results that included record sales, pump shipments and gross margin for a second quarter, while management highlighted early progress in its transition to pharmacy-channel reimbursement and continued development of new insulin-delivery technologies. Worldwide sales totaled $255 million, up 6% year over year, or 5% in constant currency. The company shipped approximately 33,000 insulin pumps globally, with shipments increasing more than 10% both year over year and sequentially, according to President and Chief Executive Officer John Sheridan. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth “The second quarter marked an important step forward for Tandem,” Sheridan said, citing operational momentum, improved financial performance and broader access to the company’s technology. U.S. sales rose 5% year over year to $179 million, while U.S. pump shipments increased 7% to a second-quarter record of roughly 22,000 pumps. New pump starts were nearly flat from a year earlier but rose more than 20% sequentially from the first quarter, Chief Financial Officer Leigh Vosseller said. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Customers transitioning from multiple daily injections, or MDI, represented about 70% of new pump starts and grew by a mid-single-digit percentage from the prior year. Tandem Mobi accounted for more than half of shipments to new customers, Vosseller said. The company continued implementing its pay-as-you-go, or PAYG, reimbursement offering through the pharmacy channel, which launched in March. Tandem had approximately 45% formulary coverage at the end of the quarter, approaching the high end of its stated full-year coverage goals. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling In the first full quarter of the PAYG offering, pharmacy pump shipments represented approximately 10% of total U.S. shipments, while pharmacy sales accounted for 10% of total U.S. sales. The transition changes how products are prescribed, supported and fulfilled, Sheridan said, but management described the initial rollout as proceeding as expected. Vosseller said pharmacy pump sales create a near-term revenue headwind because they do not include upfront reimbursement as in a traditional durable medical equipment sale. The company estimated that initial pharmacy-pump dynamics reduced second-quarter revenue by about $8 million. Tandem expects this effect to be offset over time by higher prices for recurring supplies sold through pharmacy benefits. About 6% of Tandem’s U.S. installed base of roughly 325,000 people purchased supplies through their pharmacy benefit during the quarter. The company said the average monthly pharmacy supply price was higher than the $350 per patient assumption previously used for modeling, though it did not change that assumption. International sales increased 7% year over year, or 6% in constant currency, to $75 million. International pump shipments rose 19% to approximately 11,000 units. Direct-channel sales represented about 13% of international revenue, more than double the prior-year level. Tandem has begun direct commercial efforts in the United Kingdom, Switzerland and Austria, with France expected to follow in the fourth quarter. Management said direct launches are intended to improve service to customers and providers while strengthening the company’s financial profile. International results included about $3 million in headwinds related to distributor inventory buybacks and destocking in markets transitioning to direct operations. Sales were also affected by constraints involving a key third-party infusion-set supplier. Vosseller said the company received expected inventory during the quarter, but supplies arrived too late to fulfill certain distributor orders before quarter-end. Management said the second quarter represented the period of greatest impact from the infusion-set shortage, with availability expected to improve through the second half of the year. Tandem introduced its AutoSoft+ infusion set in Canada in late July and plans to expand the product to additional markets, including the U.S., later this year. Gross margin reached 57%, improving five percentage points from a year earlier and two points sequentially. Tandem said the result was its second-highest quarterly gross margin, driven by pharmacy pricing benefits and product-cost improvements as Mobi volumes increased. Operating expenses were flat year over year at $159 million. Adjusted EBITDA margin was 3% of sales, marking the company’s fourth consecutive quarter with a positive adjusted EBITDA margin. Stock-based compensation expense declined to $16 million, or 6% of sales, from 11% of sales in the prior-year period. Tandem ended the quarter with $456 million in cash and investments, compared with $570 million at the end of the first quarter. The decline reflected investment in a new customer relationship management system, a payment under the Roche settlement agreement and an additional investment in CeQur, a private company that offers a wearable device for mealtime insulin delivery. The company reaffirmed its 2026 outlook: Worldwide sales of $1.065 billion to $1.085 billion U.S. sales of $730 million to $745 million International sales of $335 million to $340 million Gross margin of 56% to 57% Adjusted EBITDA margin of 5% to 6% For the third quarter, Tandem expects worldwide sales of approximately $265 million, including $180 million in U.S. sales and $85 million internationally. It expects gross margin of about 56% and adjusted EBITDA margin of about 2%, reflecting pharmacy pricing dynamics and planned commercial spending. Tandem submitted a 510(k) application during the second quarter for a tubeless feature for the Tandem Mobi pump. Subject to FDA clearance, the feature would allow users to choose between tubed and tubeless wear using the same Mobi hardware by changing supplies. Sheridan said the company is preparing for a scaled launch in the second half of 2026 if clearance is received. The company also said it plans to launch its SteadiSet proprietary infusion technology, which is FDA-cleared for wear up to seven days, in the first half of 2027. In automated insulin delivery, Tandem received FDA approval of an investigational device exemption in the second quarter for a pivotal study of the University of Virginia’s AIDANET algorithm. The company plans to begin that study later this year. Tandem Diabetes Care, Inc (NASDAQ: TNDM), headquartered in San Diego, California, is a medical device company focused on the design, development and commercialization of innovative insulin delivery systems for people with insulin-dependent diabetes. Founded in 2006, the company introduced its first product, the t:slim® Insulin Pump, in 2011 and has since built a portfolio of next-generation pumps featuring touchscreen interfaces, remote software updates and integrated continuous glucose monitoring (CGM) capabilities. The company's flagship offering, the t:slim X2® Insulin Pump, is engineered to work with leading CGM sensors and features automated insulin delivery algorithms that adjust basal insulin rates based on real-time glucose trends. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Tandem Diabetes Care Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Diabetes technology company Tandem Diabetes Care (NASDAQ:TNDM) met Wall Street’s revenue expectations in Q2 CY2026, with sales up 5.8% year on year to $254.6 million. The company’s outlook for the full year was close to analysts’ estimates with revenue guided to $1.08 billion at the midpoint. Its GAAP loss of $0.31 per share was in line with analysts’ consensus estimates. Is now the time to buy Tandem Diabetes? Find out in our full research report. Revenue: $254.6 million vs analyst estimates of $253.8 million (5.8% year-on-year growth, in line) EPS (GAAP): -$0.31 vs analyst estimates of -$0.32 (in line) Adjusted EBITDA: $6.42 million vs analyst estimates of $3.52 million (2.5% margin, 82.2% beat) The company reconfirmed its revenue guidance for the full year of $1.08 billion at the midpoint Operating Margin: -5.4%, up from -21.5% in the same quarter last year Free Cash Flow was -$38.67 million compared to -$15.7 million in the same quarter last year Market Capitalization: $1.34 billion With technology that automatically adjusts insulin delivery based on continuous glucose monitoring data, Tandem Diabetes Care (NASDAQ:TNDM) develops and manufactures automated insulin delivery systems that help people with diabetes manage their blood glucose levels. Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Luckily, Tandem Diabetes’s sales grew at a decent 11.5% compounded annual growth rate over the last five years. Its growth was slightly above the average healthcare company and shows its offerings resonate with customers. We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Tandem Diabetes’s annualized revenue growth of 12.8% over the last two years is above its five-year trend, suggesting its demand recently accelerated. This quarter, Tandem Diabetes grew its revenue by 5.8% year on year, and its $254.6 million of revenue was in line with Wall Street’s estimates. Looking ahead, sell-side analysts expect revenue to grow 9.3% over the next 12 months, a deceleration versus the last two years. Still, this projection is commendable and suggests the market sees success for its products and services. ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable. These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE. Adjusted operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D. It also removes various one-time costs to paint a better picture of normalized profits. Tandem Diabetes’s high expenses have contributed to an average adjusted operating margin of negative 8.6% over the last five years. Unprofitable healthcare companies require extra attention because they could get caught swimming naked when the tide goes out. It’s hard to trust that the business can endure a full cycle. Analyzing the trend in its profitability, Tandem Diabetes’s adjusted operating margin decreased by 3.5 percentage points over the last five years, but it rose by 9.9 percentage points on a two-year basis. Still, shareholders will want to see Tandem Diabetes become more profitable in the future. Tandem Diabetes’s adjusted operating margin was negative 5.4% this quarter. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable. Sadly for Tandem Diabetes, its EPS declined by 66.5% annually over the last five years while its revenue grew by 11.5%. This tells us the company became less profitable on a per-share basis as it expanded. We can take a deeper look into Tandem Diabetes’s earnings to better understand the drivers of its performance. As we mentioned earlier, Tandem Diabetes’s adjusted operating margin expanded this quarter but declined by 3.5 percentage points over the last five years. Its share count also grew by 5.1%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders. In Q2, Tandem Diabetes reported EPS of negative $0.31, up from negative $0.78 in the same quarter last year. This print beat analysts’ estimates by 2.7%. Over the next 12 months, Wall Street expects Tandem Diabetes to improve its earnings losses. Analysts forecast its full-year EPS will improve from negative $0.93 to negative $0.22. It was encouraging to see Tandem Diabetes meet analysts’ EPS expectations this quarter. Zooming out, we think this was a decent quarter. The stock remained flat at $18.76 immediately after reporting. Is Tandem Diabetes an attractive investment opportunity at the current price? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free.

SAN DIEGO, August 06, 2026--(BUSINESS WIRE)--Tandem Diabetes Care, Inc. (Nasdaq: TNDM) (the Company), a global insulin delivery and diabetes technology company, today reported its financial results for the quarter ended June 30, 2026. Second Quarter 2026 Financial Highlights Sales of $254.6 million worldwide, including $179.3 million in the United States (U.S.) Gross margin of 57%, up 460 basis points compared to second quarter 2025 Pump shipments of more than 33,000 pumps worldwide, including 22,000 pumps in the U.S. Operating margin improved 800 basis points compared to second quarter 2025 Scaled pay-as-you-go reimbursement model resulting in 10% of U.S. sales through the pharmacy channel Second Quarter 2026 Strategic Highlights Submitted 510(k) with the U.S. Food and Drug Administration (FDA) for Tandem Mobi tubeless capability Expanded global portfolio of diabetes technology solutions "Our second quarter results reflect meaningful progress across the priorities we set for 2026," said John Sheridan, president and chief executive officer. "We are seeing tangible evidence that our strategy is gaining traction and the momentum we are building reinforces our confidence in Tandem’s ability to drive broader customer impact, strengthen our financial performance and create long-term value." Second Quarter 2026 Financial Results Compared to Second Quarter 2025 Sales: Worldwide sales increased 6% to $254.6 million, compared to $240.7 million. Sales increased 5% in constant currency(1).Sales in the U.S. increased 5% to $179.3 million, compared to $170.2 million.International sales increased 7% to $75.3 million, compared to $70.5 million. International sales increased 6% in constant currency(1).Shipments in the U.S. were more than 22,000 pumps, compared to approximately 21,000 pumps.International shipments were approximately 11,000 pumps, compared to approximately 9,000 pumps. Gross profit: Gross profit was $144.8 million, compared to $125.9 million. Gross margin was 57%, compared to 52%. Operating loss: GAAP and non-GAAP operating loss(1) was $13.8 million, or negative 5% of sales, compared to GAAP operating loss of $51.8 million, or negative 22% of sales and non-GAAP operating loss(1) of $31.9 million, or negative 13% of sales, in the second quarter 2025. The second quarter 2025 included a $20.0 million charge for litigation settlement expense. Net income (loss): GAAP and non-GAAP net loss(1) was $21.2 million, compared to GAAP net loss of $52.4 million and non-GAAP net loss(1) of $32.4 million in the second quarter 2025.Adjusted EBITDA(1) was $6.4 million, or 3% of sales, compared to negative $1.8 million, or negative 1% of sales. See tables for additional financial information. 2026 Financial Guidance For the year ending December 31, 2026, the Company is reaffirming the following financial guidance: Sales are estimated to be approximately $1.065 billion to $1.085 billion Gross margin is estimated to be approximately 56% to 57% of sales Adjusted EBITDA margin(2) is estimated to be approximately 5% to 6% of sales For the year ending December 31, 2026, the Company is updating its non-cash financial guidance as follows: Non-cash charges included in cost of goods sold and operating expenses are estimated to be approximately $85 million, a reduction from $100 million. This includes: For a comprehensive overview of the Company's guidance assumptions for 2026, including pricing and transition assumptions for the adoption of pay-as-you go reimbursement in the U.S. and the initiation of international direct operations, please see the Events & Presentations tab in the Investor Center of the Tandem Diabetes Care website at https://investor.tandemdiabetes.com. Non-GAAP Financial Measures Certain financial measures presented in this press release are not calculated or presented in accordance with generally accepted accounting principles (GAAP). The Company has provided these non-GAAP financial measures to provide information that may assist investors in understanding the Company’s financial results and assessing its prospects for future performance. The Company’s management believes these non-GAAP financial measures are important operating performance indicators because they either exclude items that are unrelated to, and may not be indicative of, the Company’s core operating results, or aid in presenting information on a consistent and comparable basis. 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, financial measures calculated and presented in accordance with GAAP. To the extent the Company uses such non-GAAP financial measures in the future, the Company expects they will be calculated using a consistent method from period to period and, if not, an explanation will be provided. Adjusted EBITDA and Adjusted EBITDA Margin Adjusted EBITDA is a non-GAAP financial measure that is calculated by adding back to GAAP net loss the following items: income tax expense (benefit); interest income, interest expense and other, net; depreciation and amortization; litigation and settlement expense; stock-based compensation expense; and non-recurring facility impairment and restructuring costs. Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by GAAP sales. A reconciliation of adjusted EBITDA to GAAP net loss has been provided in Table D "Reconciliation of GAAP versus Non-GAAP Financial Results" attached to this press release. Constant Currency Sales Growth Constant currency sales growth is a non-GAAP financial measure that represents the change in sales between current and prior year periods using the exchange rate in effect during the applicable prior year period. A reconciliation of constant currency to GAAP sales has been provided in Table C "Sales by Geography and Non-GAAP Reconciliation of Constant Currency Sales Growth" attached to this press release. Non-GAAP Operating Loss and Non-GAAP Net Loss Non-GAAP operating loss and non-GAAP net loss are non-GAAP financial measures that are calculated by adding back litigation and settlement expense and non-recurring facility impairment and restructuring costs to GAAP operating loss and GAAP net loss, respectively. Reconciliations of non-GAAP operating loss and non-GAAP net loss to the comparable GAAP financial measures have been provided in Table D "Reconciliation of GAAP versus Non-GAAP Financial Results" attached to this press release. 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/BI09573d6a4f904373b71317b8eab87d1b) 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 U.S. 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. 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; foreign currency exchange rates; 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 internationally 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 SEC. 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 except as required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260806666275/en/ Contacts Media Contact: [email protected] Investor Contact: [email protected]

Tandem Diabetes Care, Inc. (TNDM) reported $254.56 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 5.8%. EPS of -$0.31 for the same period compares to -$0.48 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $254.81 million, representing a surprise of -0.1%. The company delivered an EPS surprise of +8.82%, with the consensus EPS estimate being -$0.34. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Tandem Diabetes Care performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Geographic Sales- United States: $179.29 million compared to the $175.14 million average estimate based on three analysts. The reported number represents a change of +5.3% year over year. Geographic Sales- Outside the United States: $75.27 million versus the three-analyst average estimate of $79.95 million. The reported number represents a year-over-year change of +6.8%. Sales- Supplies and Other- Outside the United States: $43.62 million versus $49.27 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -1% change. Sales- Pump- Outside the United States: $31.65 million versus the three-analyst average estimate of $30.68 million. The reported number represents a year-over-year change of +19.9%. Sales- Supplies and Other- United States: $96.29 million compared to the $90.97 million average estimate based on three analysts. The reported number represents a change of +13.6% year over year. Sales- Pump- United States: $83 million compared to the $84.17 million average estimate based on three analysts. The reported number represents a change of -2.9% year over year. Revenue- Supplies and Other: $139.91 million versus $140.24 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +8.6% change. Revenue- Pump: $114.65 million compared to the $114.85 million average estimate based on three analysts. The reported number represents a change of +2.5% year over year. View all Key Company Metrics for Tandem Diabetes Care here>>> Shares of Tandem Diabetes Care have returned +29.2% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tandem Diabetes Care, Inc. (TNDM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The end of the earnings season is always a good time to take a step back and see who shined (and who didn’t). Let’s take a look at how healthcare technology stocks fared in Q1, starting with Tandem Diabetes (NASDAQ:TNDM). Healthcare technology companies develop software, data analytics, and digital platforms supporting clinical operations, administrative functions, and patient engagement across healthcare systems. Tailwinds include healthcare digitization driving demand for electronic health records, telehealth platforms, and AI-powered diagnostic tools. Regulatory incentives promote interoperability and data sharing, while labor shortages increase automation demand. Headwinds include lengthy sales cycles with risk-averse healthcare buyers, complex regulatory requirements including data privacy compliance, and integration challenges with legacy systems. Competition from established technology giants entering healthcare and reimbursement uncertainties for digital health solutions add market complexity. The 7 healthcare technology stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was 2.8% above. Luckily, healthcare technology stocks have performed well with share prices up 21.9% on average since the latest earnings results. With technology that automatically adjusts insulin delivery based on continuous glucose monitoring data, Tandem Diabetes Care (NASDAQ:TNDM) develops and manufactures automated insulin delivery systems that help people with diabetes manage their blood glucose levels. Tandem Diabetes reported revenues of $247.2 million, up 5.5% year on year. This print exceeded analysts’ expectations by 3.2%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and full-year revenue guidance meeting analysts’ expectations. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 16.1% since reporting and currently trades at $15.50. Is now the time to buy Tandem Diabetes? Access our full analysis of the earnings results here, it’s free. Driven by the vision of an "Autonomous Pharmacy" with zero medication errors, Omnicell (NASDAQ:OMCL) provides medication management automation and adherence tools that help healthcare systems and pharmacies reduce errors and improve efficiency. Omnicell reported revenues of $309.9 million, up 14.9% year on year, outperforming analysts’ expectations by 1.8%. The business had an exceptional quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates. The market seems happy with the results as the stock is up 24.5% since reporting. It currently trades at $46.84. Is now the time to buy Omnicell? Access our full analysis of the earnings results here, it’s free. Originally launched with a focus on stigmatized conditions like hair loss and sexual health, Hims & Hers Health (NYSE:HIMS) operates a consumer-focused telehealth platform that connects patients with healthcare providers for prescriptions and wellness products. Hims & Hers Health reported revenues of $608.1 million, up 3.8% year on year, falling short of analysts’ expectations by 1.4%. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates and EBITDA guidance for next quarter missing analysts’ expectations significantly. Interestingly, the stock is up 27.1% since the results and currently trades at $37.05. Read our full analysis of Hims & Hers Health’s results here. Formerly known as Apollo Medical Holdings until early 2024, Astrana Health (NASDAQ:ASTH) operates a technology-powered healthcare platform that enables physicians to deliver coordinated care while successfully participating in value-based payment models. Astrana Health reported revenues of $965.1 million, up 55.6% year on year. This print surpassed analysts’ expectations by 1.9%. Taking a step back, it was a satisfactory quarter as it also produced a beat of analysts’ EPS estimates but full-year EBITDA guidance slightly missing analysts’ expectations. Astrana Health achieved the fastest revenue growth but had the weakest guidance update and weakest full-year guidance update among its peers. The stock is up 30.2% since reporting and currently trades at $46.99. Read our full, actionable report on Astrana Health here, it’s free. Founded in 2011 to transform how healthcare is delivered to patients with complex needs, Evolent Health (NYSE:EVH) provides specialty care management services and technology solutions that help health plans and providers deliver better care for patients with complex conditions. Evolent Health reported revenues of $496.2 million, up 2.6% year on year. This number missed analysts’ expectations by 6.9%. All in all, it was a mixed quarter for the company. Evolent Health had the weakest performance against analyst estimates of the whole group. The stock is up 53% since reporting and currently trades at $5.86. Read our full, actionable report on Evolent Health here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Tandem Diabetes has gotten torched over the last six months - since December 2025, its stock price has dropped 25.8% to $16.77 per share. This may have investors wondering how to approach the situation. Is now the time to buy Tandem Diabetes, or should you be careful about including it in your portfolio? Get the full breakdown from our expert analysts, it’s free. Even though the stock has become cheaper, we’re swiping left on Tandem Diabetes for now. Here are three reasons you should be careful with TNDM, plus one stock we’d rather own. We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable. Tandem Diabetes’s earnings losses deepened over the last five years as its EPS dropped 19.1% annually. We tend to steer our readers away from companies with falling EPS, where diminishing earnings could imply changing secular trends and preferences. If the tide turns unexpectedly, Tandem Diabetes’s low margin of safety could leave its stock price susceptible to large downswings. Growth gives us insight into a company’s long-term potential, but how capital-efficient was that growth? A company’s ROIC explains this by showing how much operating profit it makes compared to the money it has raised (debt and equity). Tandem Diabetes’s five-year average ROIC was negative 47.5%, meaning management lost money while trying to expand the business. Its returns were among the worst in the healthcare sector. We like to invest in businesses with high returns, but the trend in a company’s ROIC can also be an early indicator of future business quality. Over the last few years, Tandem Diabetes’s ROIC has unfortunately decreased significantly. Paired with its already low returns, these declines suggest its profitable growth opportunities are few and far between. We see the value of companies making people healthier, but in the case of Tandem Diabetes, we’re out. Following the recent decline, the stock trades at 18.9× forward EV-to-EBITDA (or $16.77 per share). This multiple tells us a lot of good news is priced in - we think there are better stocks to buy right now. We’d recommend looking at one of Charlie Munger’s all-time favorite businesses. ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.