Tandem Diabetes Care Nears Operating Break-Even — But U.S. Pump Sales Fall 2%
Worldwide sales rose 14% on both reported and currency-neutral bases, while Tandem kept its annual forecast unchanged.
Tandem Diabetes Care, which designs and sells insulin pumps and related software, brought its third-quarter operating loss down to $2.4 million from $22.9 million a year earlier, according to Thursday’s earnings release accompanying its SEC filing. U.S. pump sales fell 2%, however, even as worldwide revenue grew 14% on both reported and currency-neutral bases to $283.7 million.
Supplies Outgrow U.S. Pump Sales
Worldwide sales compared with $249.3 million in the year-earlier quarter. U.S. revenue reached $191.0 million, up 9% from $175.6 million on both reported and currency-neutral bases; international revenue reached $92.6 million from $73.6 million, growing 26% as reported and 27% excluding currency effects.
The domestic split was sharper: supplies and other sales grew 19%, while pump revenue declined 2%. Internationally, pump sales grew 25% and supplies and other revenue rose 26%.
Tandem shipped approximately 33,000 pumps worldwide. U.S. shipments were nearly 23,000, compared with more than 20,000 a year earlier, and international shipments were nearly 11,000, versus more than 9,000.
TNDM shares plunged about 11% to $15.96 in Friday trading, as of 9:36 a.m. ET.
Smaller Losses, Negative Free Cash Flow
Gross profit increased to $160.4 million from $134.3 million. Tandem retained 57% of revenue after product costs, compared with 54% a year earlier, while its operating loss represented 1% of sales versus 9%.
The net loss narrowed to $7.1 million from $21.2 million, and the loss per share fell to $0.10 from $0.31. Adjusted earnings before interest, taxes, depreciation and amortization reached $18.0 million, or 6% of sales, compared with $2.8 million, or 1%.
That adjusted measure adds back costs including stock-based pay and depreciation. Quarterly free cash flow—operating cash flow less capital spending—was negative $5.506 million, compared with positive $4.172 million a year earlier.
Pharmacies And International Access Expand
Tandem’s t:slim X2 and Tandem Mobi pumps pair with continuous glucose sensors and its Control-IQ+ algorithm to adjust insulin dosing automatically. The company also sells disposable cartridges and infusion sets, making supplies a separate revenue stream from pump sales.
Pharmacies generated 15% of U.S. revenue through Tandem’s pay-as-you-go reimbursement model. Pharmacy coverage reached approximately 50% of U.S. lives. Tandem announced Mobi availability in 12 countries and expanded t:slim X2 compatibility with Abbott’s FreeStyle Libre 3 Plus Sensor to 11 international markets.
“We are expanding access to Tandem’s life-changing technology,” said John Sheridan, Tandem’s president and chief executive officer, in the earnings statement.
Tandem reaffirmed its 2026 sales outlook of approximately $1.065 billion to $1.085 billion. The forecast includes approximately $730 million to $745 million in U.S. sales and $335 million to $340 million internationally.
Management also maintained its forecast to retain approximately 56% to 57% of sales after product costs, with an adjusted earnings-before-interest-taxes-depreciation-and-amortization margin of approximately 5% to 6%. Expected non-cash costs total approximately $85 million, including approximately $65 million in stock-based pay and $20 million in depreciation and amortization.
Tandem’s quarter ended close to operating break-even, but its annual sales and margin targets stayed unchanged.
Sources
- 8-K Filing — TANDEM DIABETES CARE INC (TNDM) — SEC EDGAR
- Exhibit ex991-q3earningsrelease2026.htm — TANDEM DIABETES CARE INC 8-K exhibit — SEC EDGAR
- Tandem Diabetes Care Announces Third Quarter 2026 Financial Results — businesswire.com
