TANDEM DIABETES CARE INC (TNDM): Results of Operations and Financial Condition
TANDEM DIABETES CARE INC (TNDM) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Media Contact: 858-366-6900 media@tandemdiabetes.com Investor Contact: 858-366-6900 IR@tandemdiabetes.com FOR IMMEDIATE RELEASE Tandem Diabetes Care Announces Second Quarter 2026 Financial Results San Diego, August 6, 2026 - Tandem Diabetes Care, Inc. (Nasdaq: TNDM)
How this was made
The 30-second read
Why it matters
Traders can update expectations for 2026 revenue, gross margin, and adjusted EBITDA margin based on reaffirmed ranges, plus the reduced estimate for non-cash charges. Product and regulatory updates (510(k) submission, FDA clearance/CE Mark, sensor compatibility) add incremental catalysts that may affect adoption curves.
Market read
The filing combines a quarterly beat on profitability metrics (gross margin and operating loss improvement) with explicit 2026 guidance ranges and a specific reduction in non-cash charges, which can drive re-rating discussions.
What to watch
The guidance discussion references pay-as-you-go reimbursement transition assumptions and international direct operations initiation; any delays or pricing pressure there could offset the reported margin gains.
Second-quarter worldwide sales increased 6% to $254.6 million, while gross margin rose to 57% and adjusted EBITDA turned positive at $6.4 million.
Sales growth, gross-margin expansion, improved operating losses, and positive adjusted EBITDA marked a materially improved second quarter, while the company remained in a GAAP and non-GAAP net-loss position.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Worldwide salesGAAP | $254.6 million | – | 6% |
| Worldwide constant currency sales growthnon-GAAP | 5% | – | – |
| Gross profitGAAP | $144.8 million | – | – |
| Gross marginGAAP | 57% | – | up 460 basis points |
| GAAP operating lossGAAP | $13.8 million | – | – |
| GAAP operating marginGAAP | negative 5% of sales | – | improved 800 basis points |
| Non-GAAP operating lossnon-GAAP | $13.8 million | – | – |
| Non-GAAP operating marginnon-GAAP | negative 5% of sales | – | – |
| GAAP net lossGAAP | $21.2 million | – | – |
| Non-GAAP net lossnon-GAAP | $21.2 million | – | – |
| Adjusted EBITDAnon-GAAP | $6.4 million | – | – |
| Adjusted EBITDA marginnon-GAAP | 3% of sales | – | – |
| Worldwide pump shipmentsother | more than 33,000 pumps worldwide | – | – |
| U.S. pump shipmentsother | more than 22,000 pumps | – | – |
| International pump shipmentsother | approximately 11,000 pumps | – | – |
| U.S. sales through the pharmacy channelother | 10% of U.S. sales | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| U.S. salesU.S. pump shipments were more than 22,000 pumps. | $179.3 million | – | 5% |
| International salesInternational shipments were approximately 11,000 pumps. | $75.3 million | – | 7% |
| International constant currency sales growthInternational sales increased 6% in constant currency. | 6% | – | – |
For the year ending December 31, 2026 outlook
- Revenueapproximately $1.065 billion to $1.085 billion
- Gross marginapproximately 56% to 57% of sales
- NoteU.S. sales of approximately $730 million to $745 million
- NoteInternational sales of approximately $335 million to $340 million
- NoteAdjusted EBITDA margin is estimated to be approximately 5% to 6% of sales
- NoteNon-cash charges included in cost of goods sold and operating expenses are estimated to be approximately $85 million, a reduction from $100 million
- NoteApproximately $65 million non-cash, stock-based compensation expense, a reduction from $80 million
- NoteApproximately $20 million depreciation and amortization expense
What drove it
- Received FDA clearance and CE Mark for Control-IQ+ automated insulin delivery technology for people with type 1 diabetes during pregnancy.
- Received CE Mark for Control-IQ+ use by adults with type 2 diabetes.
- Introduced compatibility with the Dexcom G7 15-day sensor for both t:slim X2 and Tandem Mobi in the U.S.
- Launched t:slim X2 compatibility with the Abbott FreeStyle Libre 3 Plus Sensor in four European markets.
- Began the international commercial rollout for Tandem Mobi.
- Submitted a 510(k) with the FDA for Tandem Mobi tubeless capability.
- The scaled pay-as-you-go reimbursement model resulted in 10% of U.S. sales through the pharmacy channel.
Concerns
- GAAP and non-GAAP net loss was $21.2 million.
- GAAP and non-GAAP operating loss was $13.8 million, or negative 5% of sales.
- The company cited risks related to market acceptance of its products, competing products, foreign currency exchange rates, reimbursement rates or insurance coverage, international operations, and operational and infrastructure requirements.
What to watch
- Execution of the Tandem Mobi international commercial rollout.
- FDA review of the 510(k) submitted for Tandem Mobi tubeless capability.
- Adoption of the pay-as-you-go reimbursement model in the U.S.
- Delivery against full-year sales guidance of approximately $1.065 billion to $1.085 billion and adjusted EBITDA margin guidance of approximately 5% to 6% of sales.
- Progress toward the guided gross margin of approximately 56% to 57% of sales.
Analysis
Worldwide sales increased 6% to $254.6 million, with U.S. sales increasing 5% to $179.3 million and international sales increasing 7% to $75.3 million. International sales increased 6% in constant currency. The company reported more than 33,000 pumps shipped worldwide, including more than 22,000 pumps in the U.S. and approximately 11,000 pumps internationally. The pay-as-you-go reimbursement model accounted for 10% of U.S. sales through the pharmacy channel.
Profitability improved substantially versus the second quarter of 2025. Gross profit was $144.8 million compared with $125.9 million, while gross margin was 57% compared with 52%, up 460 basis points. GAAP operating loss was $13.8 million, or negative 5% of sales, compared with a $51.8 million loss, or negative 22% of sales. The prior-year period included a $20.0 million charge for litigation settlement expense.
The company reported GAAP and non-GAAP net loss of $21.2 million, compared with GAAP net loss of $52.4 million and non-GAAP net loss of $32.4 million in the second quarter of 2025. Adjusted EBITDA was $6.4 million, or 3% of sales, compared with negative $1.8 million, or negative 1% of sales. The improved gross margin and positive adjusted EBITDA are the central financial changes in the reported quarter, although Tandem remained loss-making under both GAAP and non-GAAP net-income measures.
Tandem reaffirmed full-year 2026 sales guidance of approximately $1.065 billion to $1.085 billion, including U.S. sales of approximately $730 million to $745 million and international sales of approximately $335 million to $340 million. It also reaffirmed gross-margin guidance of approximately 56% to 57% of sales and adjusted EBITDA-margin guidance of approximately 5% to 6% of sales. The company updated estimated non-cash charges included in cost of goods sold and operating expenses to approximately $85 million from $100 million, including approximately $65 million of non-cash stock-based compensation expense from $80 million.
Management, verbatim
Our second quarter results reflect meaningful progress across the priorities we set for 2026. 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.
John Sheridan, president and chief executive officer
Not in the filing
stated, not guessed- GAAP diluted earnings per share
- Non-GAAP diluted earnings per share
- Operating cash flow
- Free cash flow
- Cash and cash equivalents
- Debt
- Share repurchases
- Dividends
- Prior-quarter comparisons
- Operating-expense guidance
- Tax-rate guidance
- Previous-release outlook for comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC 8-K (Item 2.02) with an attached earnings release covering Tandem Diabetes Care’s Q2 2026 results and 2026 guidance.
Ticker impact
Tandem Diabetes Care reported Q2 2026 sales of $254.6M, gross margin of 57%, and reaffirmed 2026 guidance with updated non-cash charges.
Likely near-term positive bias if investors focus on margin expansion and the reaffirmed 2026 outlook; watch for any skepticism around operating losses and reimbursement transition assumptions.
The filing provides concrete quarterly results (sales, gross margin, operating loss, adjusted EBITDA) plus explicit 2026 guidance ranges and a specific reduction in non-cash charges, which are actionable for valuation and positioning.
Market effects
Reinforces demand and adoption momentum in insulin delivery systems, with regulatory and sensor-compatibility milestones that can support category sentiment.
U.S. sales growth and pharmacy-channel reimbursement progress may influence near-term expectations for U.S. diabetes device reimbursement dynamics.
International shipment growth and CE Mark expansions support the narrative of scaling beyond the U.S., potentially affecting global medtech risk appetite.
Counterpoint
Despite improved gross margin, the company still reported GAAP and non-GAAP operating losses, so the market may discount the quality of earnings and focus on cash burn and execution risk.
Key entities
- companyTandem Diabetes Care, Inc.
Nasdaq-listed insulin delivery and diabetes technology company reporting Q2 2026 results and reaffirming 2026 guidance.
- regulatorU.S. Food and Drug Administration (FDA)
Referenced for 510(k) submission and FDA clearance for Control-IQ+ use in pregnancy.
- technology_partnerDexcom G7
Compatibility introduced for both t:slim X2 and Tandem Mobi in the U.S.
- technology_partnerAbbott FreeStyle Libre 3 Plus
t:slim X2 compatibility launched in four European markets.
