Tandem Diabetes Care, Inc.

Tandem Diabetes Care develops and sells insulin-delivery systems, including the t:slim X2 and Tandem Mobi pumps and related consumables. Its automated-delivery technology works with compatible glucose sensors. It sells in the United States and internationally.

September-quarter results

Sales rose 14%. U.S. sales were $191.0 million, up 9%; international sales were $92.6 million, up 26%. Worldwide pump shipments were approximately 33,000. Reported gross margin was approximately 57%, compared with 54%.

Payment model and product development

Tandem is moving U.S. customers toward pharmacy coverage with pay-as-you-go reimbursement. The model removes the large upfront pump reimbursement and shifts the sales mix toward recurring supplies. The pharmacy channel represented 15% of U.S. sales in Q3. The company expects higher revenue per customer over four years.

U.S. pump revenue was $83.4 million, compared with $84.8 million a year earlier; supplies and other sales were $107.7 million, compared with $90.8 million. U.S. shipments increased to nearly 23,000 pumps from more than 20,000.

Tandem reported U.S. regulatory clearance on November 12 for a new tubeless cartridge and infusion set for the existing Mobi pump. Full U.S. commercial launch is planned for the first half of 2027. The infusion set is cleared for up to seven days and the cartridge for three days. This option is separate from the next-generation Mobi patch pump based on Sigi technology that remains in development.

Cash, borrowing and investments

For the first nine months, operations used $24.4 million of cash, compared with $19.5 million a year earlier. Capital spending was $15.0 million, compared with $13.3 million. At September 30, cash and equivalents were $72.8 million; cash, equivalents and short-term investments together totaled $443.1 million.

Convertible senior notes had a net carrying value of $603.4 million. The 2029 notes pay 1.50% interest, while $300 million of notes issued in February 2026 mature in 2032 and pay no regular interest. The February issue brought in $291.2 million after issuance costs, with a separate $15.3 million capped-call payment.

In May 2026, Tandem invested another $81.4 million in CeQur, retaining an ownership interest below 50%. It obtained an option to buy the remaining shares no earlier than 2028. The September carrying value of its investment was $125.5 million.

The latest outlook

On November 5, Tandem reaffirmed 2026 sales guidance of $1.065 billion to $1.085 billion, including U.S. sales of $730 million to $745 million and international sales of $335 million to $340 million. It expects gross margin of 56% to 57% and adjusted EBITDA margin of 5% to 6%.

Adjusted EBITDA adds back taxes, net interest and other income or expense, depreciation and amortization, litigation and settlement costs, stock compensation and nonrecurring facility impairment and restructuring. The outlook's adjusted margin is separate from reported operating profitability.

Our analysis of the Mobi clearance and commercial launch connects the product milestone with Tandem's changing revenue model.