Tandem Diabetes Care Announces Fourth Quarter and Full Year 2025 Financial Results and 2026 Financial Guidance

SAN DIEGO--( BUSINESS WIRE)--Tandem Diabetes Care, Inc. (Nasdaq: TNDM), a global insulin delivery and diabetes technology company, today reported its financial results for the quarter and fiscal year ended December 31, 2025 and provided its financial guidance for the year ending December 31, 2026.

Fourth Quarter 2025 Financial and Strategic Highlights

Full Year 2025 Financial Highlights

Recent Strategic Highlights

“2025 was a defining year for Tandem as we surpassed $1 billion in worldwide sales and set gross margin records, while modernizing our commercial operations, reshaping our business model, and driving innovation,” said John Sheridan, president and chief executive officer. “In 2026, we plan to build upon this momentum as we further strengthen our business, while delivering new technology solutions to improve the lives of people with diabetes.”

Fourth Quarter and Full Year 2025 Sales Results Compared to 2024

United States sales and margins in 2024 were impacted by the accounting treatment of the Tandem Choice program (Tandem Choice), which concluded in 2024 and is excluded from non‑GAAP results. Accordingly, the Company is presenting select financial results on both a GAAP and non‑GAAP basis. Additional information can be found in Table D, “Reconciliation of GAAP versus Non-GAAP Financial Results” and under “Non-GAAP Financial Measures” below.

Three Months Ended

Year Ended

December 31,

2025

2024

2025

2024

($ in millions)

GAAP

Non-

GAAP (1)(2)

GAAP

Non-

GAAP (1)(2)

GAAP

Non-

GAAP (1)

GAAP

Non-

GAAP (1)(2)

United States

$ 210.5

$ 214.6

$ 184.4

$ 706.9

$ 672.7

$ 642.5

International

79.9

68.1

307.8

267.5

Total Worldwide

$ 290.4

$ 282.6

$ 252.5

$ 1,014.7

$ 940.2

$ 910.0

Fourth Quarter 2025 Results Compared to Fourth Quarter 2024

GAAP sales in the United States decreased 2% to $210.5 million, compared to $214.6 million which included the recognition of $30.2 million in sales related to Tandem Choice. Excluding the impact of Tandem Choice, Non-GAAP sales in the United States grew 14% to $210.5 million compared to $184.4 million.

International sales increased 17% to $79.9 million compared to $68.1 million.

Shipments in the United States were more than 27,000 pumps. International shipments were approximately 11,000 pumps.

Non-GAAP gross profit (1) was $167.5 million, compared to $127.9 million. Non-GAAP gross margin (1) was 58%, compared to 51%.

Non-GAAP operating income (1) was $8.3 million, or 3% of sales, compared to Non-GAAP operating loss of $30.2 million or negative 12% of sales.

Non-GAAP net loss (1) was $0.6 million, compared to $28.8 million.

Adjusted EBITDA (1) was $32.9 million, or 11% of sales, compared to $2.3 million, or 1% of sales.

Full Year 2025 Financial Results Compared to Full Year 2024

GAAP sales in the United States increased 5% to $706.9 million, compared to $672.7 million which included the recognition of $30.2 million in sales related to Tandem Choice. Excluding the impact of Tandem Choice, Non-GAAP sales in the United States grew 10% to $706.9 million compared to $642.4 million.

International sales increased 15% to $307.8 million compared to $267.5 million.

Shipments in the United States were more than 86,000 pumps. International shipments were more than 40,000 pumps.

Non-GAAP gross profit (1) was $546.0 million, compared to $460.6 million. Non-GAAP gross margin (1) was 54%, compared to 51%.

Non-GAAP operating loss (1) was $156.1 million, or negative 15% of sales, compared to $128.1 million or negative 14% of sales.

Non-GAAP net loss (1) was $173.6 million, compared to $125.0 million.

Adjusted EBITDA (1) was negative $46.1 million, or negative 5% of sales, compared to negative $10.1 million, or negative 1% of sales. 2025 adjusted EBITDA included $75.2 million, or a negative 8 percentage point impact for an acquired in-process research and development charge.

(1)

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

(2)

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

See tables for additional financial information.

2026 Financial Guidance

“In 2026, our goal is to expand the worldwide market by delivering double-digit pump shipment growth. We are adopting a pay-as-you-go model in the U.S. that provides affordable access to customers, and progresses our business toward more predictable and profitable revenue that may not be evident in our 2026 sales expectations,” said Leigh Vosseller, executive vice president and chief financial officer. “We remain committed to improving margins and profitability during this transition that positions Tandem for accelerated sales growth in 2027 and beyond.”

For the year ending December 31, 2026, the Company is providing its full year and first quarter GAAP financial guidance as follows:

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

In the first quarter of 2025, the Company included an adjustment for acquired in-process research and development (IPR&D) expense in its non-GAAP financials and provided guidance based on this practice. Beginning in the second quarter of 2025, the Company no longer included an adjustment for IPR&D expense in its non-GAAP results to align with views expressed by the staff of the U.S. Securities and Exchange Commission.

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

Conference Call

The Company will hold a conference call and simultaneous webcast today at 4:30pm Eastern Time (1:30pm Pacific Time). The link to the webcast will be available by accessing the Events & Presentations tab in the Investor Center of the Tandem Diabetes Care website at http://investor.tandemdiabetes.com, and will be archived for 30 days. To access the call by phone, please use this link ( https://register-conf.media-server.com/register/BIcf3966da609740b59045972812b7b1ee) and you will be provided with dial-in details, including a personal pin.

About Tandem Diabetes Care, Inc.

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

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

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that concern matters that involve risks and uncertainties that could cause actual results to differ materially from those anticipated or projected in the forward-looking statements. These forward-looking statements include statements regarding, among other things, the Company’s projected financial results, the expected benefits of our multichannel strategy, the anticipated sales growth, and the ability to achieve other operational and commercial goals. The Company’s actual results may differ materially from those indicated in these forward-looking statements due to numerous risks and uncertainties. For instance, the Company’s ability to achieve projected financial results will be impacted by market acceptance of the Company’s products; products marketed and sold or under development by competitors; the Company’s ability to establish and sustain operations to support international sales, including expanding into additional geographies; changes in reimbursement rates or insurance coverage for the Company’s products; the Company’s ability to meet increasing operational and infrastructure requirements from higher customer interest and a larger base of existing customers; the Company’s ability to successfully commercialize its products; the Company’s ability to develop and launch new products; risks associated with the regulatory approval process 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 Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Tandem undertakes no obligation to update or review any forward-looking statement in this press release because of new information, future events or other factors.

TANDEM DIABETES CARE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

Table A

(in thousands)

December 31,

2025

2024

Assets

Current assets:

Cash, cash equivalents and short-term investments

292,666

438,329

Accounts receivable, net

165,491

114,585

Inventories

128,769

149,612

Other current assets

31,217

21,965

Total current assets

618,143

724,491

Property and equipment, net

83,580

78,150

Operating lease right-of-use assets

96,172

85,306

Equity method investment

60,351

74,545

Other long-term assets

22,866

5,166

Total assets

881,112

967,658

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable, accrued expenses and employee-related liabilities

138,488

127,028

Current portion of convertible senior notes, net

—

40,670

Operating lease liabilities

19,472

18,208

Deferred revenue

9,527

11,831

Other current liabilities

75,237

49,312

Total current liabilities

242,724

247,049

Convertible senior notes, net - long-term

310,036

308,266

Operating lease liabilities - long-term

114,967

106,421

Deferred revenue - long-term

8,474

10,455

Other long-term liabilities

49,741

32,369

Total liabilities

725,942

704,560

Total stockholders’ equity

155,170

263,098

Total liabilities and stockholders’ equity

881,112

967,658

TANDEM DIABETES CARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Table B

(in thousands, except per share data)

(Unaudited)

Three Months Ended December 31,

Twelve Months Ended December 31,

2025

2024

2025

2024

Sales

290,383

282,648

1,014,736

940,203

Cost of sales

122,923

125,193

468,722

450,629

Gross profit

167,460

157,455

546,014

489,574

Operating expenses:

Selling, general and administrative

113,100

105,836

444,989

389,824

Research and development

46,066

52,200

193,114

198,877

Acquired in-process research and development expenses

—

75,217

—

Litigation and settlement expense

—

19,951

—

Total operating expenses

159,166

158,036

733,271

588,701

Operating income (loss)

8,294

(581

)

(187,257

)

(99,127

)

Total other income (expense), net

(3,612

)

598

(13,015

)

7,257

Income (loss) before income taxes

4,682

(200,272

)

(91,870

)

Income tax expense (benefit)

5,271

(739

)

4,438

4,155

Net income (loss)

(589

)

755

(204,710

)

(96,025

)

Net income (loss) per share - basic

(0.01

)

0.01

(3.04

)

(1.47

)

Net income (loss) per share - diluted

(0.01

)

0.01

(3.04

)

(1.47

)

Weighted average shares used to compute basic net income (loss) per share

68,014

65,939

67,285

65,451

Weighted average shares used to compute diluted net income (loss) per share

68,014

66,157

67,285

65,451

TANDEM DIABETES CARE, INC.

SALES BY GEOGRAPHY

Table C (1)

(Unaudited)

($'s in thousands)

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

% Change

2025

2024

% Change

United States:

Pump

111,486

98,438

353,879

328,625

Supplies and other

98,978

85,923

353,057

313,811

Adjustment for Tandem Choice

—

30,202

(100

—

30,249

(100

Total GAAP Sales in the United States

210,464

214,563

706,936

672,685

Adjustment for Tandem Choice

—

(30,202

)

100

—

(30,249

)

100

Total Non-GAAP Sales in the United States

210,464

184,361

706,936

642,436

International:

Pump

28,577

25,770

110,260

105,544

Supplies and other

51,342

42,315

197,540

161,974

Total International Sales

79,919

68,085

307,800

267,518

Total GAAP Worldwide Sales

290,383

282,648

1,014,736

940,203

Adjustment for Tandem Choice

—

(30,202

)

100

—

(30,249

)

100

Total Non-GAAP Worldwide Sales

290,383

252,446

1,014,736

909,954

(1)

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

TANDEM DIABETES CARE, INC.

Reconciliation of GAAP versus Non-GAAP Financial Results

Table D

(Unaudited)

($'s in thousands)

Three Months Ended December 31,

Year Ended December 31,

2025

2024

2025 (4)

2024

GAAP sales

290,383

282,648

1,014,736

940,203

Adjustment for Tandem Choice (1)

—

(30,201

)

—

(30,249

)

Non-GAAP sales

290,383

252,447

1,014,736

909,954

GAAP gross profit

167,460

157,455

546,014

489,574

Adjustment for Tandem Choice (1)

—

(29,576

)

—

(28,931

)

Non-GAAP gross profit

167,460

127,879

546,014

460,643

GAAP gross margin (2)

Non-GAAP gross margin (2)

GAAP operating income (loss)

8,294

(581

)

(187,257

)

(99,127

)

Litigation and settlement expense

—

19,951

—

Non-recurring facility impairment and restructuring costs (3)

—

11,167

—

Adjustment for Tandem Choice (1)

—

(29,576

)

—

(28,931

)

Non-GAAP operating loss

8,294

(30,157

)

(156,139

)

(128,058

)

GAAP operating margin (2)

—

(18

(11

Non-GAAP operating margin (2)

(12

(15

(14

GAAP net income (loss)

(589

)

755

(204,710

)

(96,025

)

Income tax expense (benefit)

5,271

(739

)

4,438

4,155

Interest income, interest expense and other, net

3,612

(598

)

13,015

(7,257

)

Depreciation and amortization

4,495

4,245

17,666

16,607

Litigation and settlement expense

—

19,951

—

Stock-based compensation expense

20,110

28,166

92,381

101,383

Non-recurring facility impairment and restructuring costs (3)

—

11,167

—

Adjustment for Tandem Choice (1)

—

(29,576

)

—

(28,931

)

Adjusted EBITDA

32,899

2,253

(46,092

)

(10,068

)

Adjusted EBITDA margin (2)

GAAP net income (loss)

(589

)

755

(204,710

)

(96,025

)

Litigation and settlement expense

—

19,951

—

Non-recurring facility impairment and restructuring costs (3)

—

11,167

—

Adjustment for Tandem Choice (1)

—

(29,576

)

—

(28,931

)

Non-GAAP net loss

(589

)

(28,821

)

(173,592

)

(124,956

)

GAAP cash provided by (used in) operating activities

9,788

10,717

(9,721

)

24,225

Less: capital expenditures

(6,685

)

(3,069

)

(19,948

)

(19,231

)

Non-GAAP free cash flow (5)

3,103

7,648

(29,669

)

4,994

(1)

The accounting treatment for Tandem Choice had a high degree of complexity. The Tandem Choice program concluded in 2024, and there was no impact to sales for this program in 2025. Additional information can be found under the heading “Non-GAAP Financial Measures.”

(2)

GAAP margins including GAAP gross margin and GAAP operating margin are calculated using GAAP sales. Non-GAAP margins including non-GAAP gross margin, non-GAAP operating margin, and adjusted EBITDA margin are calculated using non-GAAP sales.

(3)

In the first quarter of 2025, the Company recorded $11.2 million in impairment charges related to its operating lease right-of-use assets, and severance and other restructuring costs associated with the relocation of certain research and development activities.

(4)

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

(5)

Free Cash Flow is a non-GAAP financial measure that we define as cash provided by operating activities less capital expenditures.