Second Quarter 2026
Filed Aug 6, 2026Tandem Diabetes Care Announces Second Quarter 2026 Financial Results
Worldwide sales increased 6% to $254.6 million, gross margin increased to 57% from 52%, and adjusted EBITDA was positive at $6.4 million. The company reaffirmed its 2026 sales, gross-margin, and adjusted EBITDA-margin guidance, while reducing estimated non-cash charges.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Sales, three months ended June 30, 2026GAAP | $254.6M | – | 6% |
| Sales, six months ended June 30, 2026GAAP | $501.8M | – | 6% |
| Cost of sales, three months ended June 30, 2026GAAP | $109.8M | – | – |
| Cost of sales, six months ended June 30, 2026GAAP | $220.2M | – | – |
| Gross profit, three months ended June 30, 2026GAAP | $144.8M | – | – |
| Gross margin, three months ended June 30, 2026GAAP | 57% | – | up 460 basis points |
| Gross profit, six months ended June 30, 2026GAAP | $281.6M | – | – |
| Selling, general and administrative expense, three months ended June 30, 2026GAAP | $111.6M | – | – |
| Selling, general and administrative expense, six months ended June 30, 2026GAAP | $219.8M | – | – |
| Research and development expense, three months ended June 30, 2026GAAP | $46.93M | – | – |
| Research and development expense, six months ended June 30, 2026GAAP | $92.97M | – | – |
| Acquired in-process research and development expenses, six months ended June 30, 2026GAAP | — | – | – |
| Litigation and settlement expense, three months ended June 30, 2026GAAP | — | – | – |
| Total operating expenses, three months ended June 30, 2026GAAP | $158.6M | – | – |
| Total operating expenses, six months ended June 30, 2026GAAP | $312.8M | – | – |
| Operating loss, three months ended June 30, 2026GAAP | −$13.79M | – | – |
| GAAP operating margin, three months ended June 30, 2026GAAP | (5)% | – | improved 800 basis points |
| Non-GAAP operating loss, three months ended June 30, 2026non-GAAP | −$13.79M | – | – |
| Non-GAAP operating margin, three months ended June 30, 2026non-GAAP | (5)% | – | – |
| Operating loss, six months ended June 30, 2026GAAP | −$31.23M | – | – |
| Non-GAAP operating loss, six months ended June 30, 2026non-GAAP | −$31.23M | – | – |
| Net loss, three months ended June 30, 2026GAAP | −$21.17M | – | – |
| Non-GAAP net loss, three months ended June 30, 2026non-GAAP | −$21.17M | – | – |
| Net loss per share - basic and diluted, three months ended June 30, 2026GAAP | $ (0.31) | – | – |
| Net loss, six months ended June 30, 2026GAAP | −$41.56M | – | – |
| Net loss per share - basic and diluted, six months ended June 30, 2026GAAP | $ (0.60) | – | – |
| Adjusted EBITDA, three months ended June 30, 2026non-GAAP | $6.42M | – | – |
| Adjusted EBITDA margin, three months ended June 30, 2026non-GAAP | 3 % | – | – |
| Adjusted EBITDA, six months ended June 30, 2026non-GAAP | $9.15M | – | – |
| Adjusted EBITDA margin, six months ended June 30, 2026non-GAAP | 2 % | – | – |
| GAAP cash used in operating activities, three months ended June 30, 2026GAAP | −$34.62M | – | – |
| Non-GAAP free cash flow, three months ended June 30, 2026non-GAAP | −$38.67M | – | – |
| GAAP cash used in operating activities, six months ended June 30, 2026GAAP | −$23.58M | – | – |
| Capital expenditures, six months ended June 30, 2026other | (10,318) | – | – |
| Non-GAAP free cash flow, six months ended June 30, 2026non-GAAP | −$33.89M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| United States sales, three months ended June 30, 2026Pump sales were $ 83,002, compared to $ 85,467, while supplies and other sales were $ 96,290, compared to $ 84,742. | $179.3M | – | 5% |
| International sales, three months ended June 30, 2026Pump sales were $ 31,650, compared to $ 26,404, while supplies and other sales were $ 43,618, compared to $ 44,065. International sales increased 6% in constant currency. | $75.27M | – | 7% |
| United States pump sales, three months ended June 30, 2026U.S. shipments were more than 22,000 pumps, compared to approximately 21,000 pumps. | $83.00M | – | (3)% |
| United States supplies and other sales, three months ended June 30, 2026Supplies and other sales increased from $ 84,742. | $96.29M | – | 14% |
| International pump sales, three months ended June 30, 2026International shipments were approximately 11,000 pumps, compared to approximately 9,000 pumps. | $31.65M | – | 20% |
| International supplies and other sales, three months ended June 30, 2026Supplies and other sales were compared with $ 44,065. | $43.62M | – | (1)% |
| United States sales, six months ended June 30, 2026Pump sales were $ 160,943 and supplies and other sales were $ 179,192. | $340.1M | – | 6% |
| International sales, six months ended June 30, 2026Pump sales were $ 64,135 and supplies and other sales were $ 97,511. International sales constant-currency change was —%. | $161.6M | – | 5% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Year ending December 31, 2026 outlook
- RevenueSales are estimated to be approximately $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
- Worldwide pump shipments were more than 33,000 pumps, including 22,000 pumps in the U.S.
- The pay-as-you-go reimbursement model accounted for 10% of U.S. sales through the pharmacy channel.
- The company submitted a 510(k) with the FDA for Tandem Mobi tubeless capability.
- Tandem introduced Dexcom G7 15-day sensor compatibility for t:slim X2 and Tandem Mobi in the U.S.
- The company launched t:slim X2 compatibility with the Abbott FreeStyle Libre 3 Plus Sensor in four European markets and began the international commercial rollout for Tandem Mobi.
Concerns
- The company reported a GAAP net loss of $ (21,168) and GAAP cash used in operating activities of $ (34,623) for the three months ended June 30, 2026.
- U.S. pump sales were $ 83,002, a (3)% change from the prior-year period.
- Non-GAAP free cash flow was $ (38,673) for the three months ended June 30, 2026.
- Convertible senior notes, net - long-term increased to $ 602,577 as of June 30, 2026 from $ 310,036 as of December 31, 2025.
What to watch
- Achievement of sales estimated to be approximately $1.065 billion to $1.085 billion for the year ending December 31, 2026.
- Delivery of gross margin estimated to be approximately 56% to 57% of sales and adjusted EBITDA margin estimated to be approximately 5% to 6% of sales.
- U.S. sales of approximately $730 million to $745 million and international sales of approximately $335 million to $340 million.
- Adoption of the pay-as-you-go reimbursement model in the U.S. and the initiation of international direct operations.
- Progress of the Tandem Mobi tubeless capability 510(k) submission and the international commercial rollout for Tandem Mobi.
Balance sheet and cash flow
- Cash, cash equivalents and short-term investments were $ 455,996 as of June 30, 2026, compared to $ 292,666 as of December 31, 2025.
- Convertible senior notes, net - long-term were $ 602,577 as of June 30, 2026, compared to $ 310,036 as of December 31, 2025.
- Total assets were $ 1,154,202 as of June 30, 2026, compared to $ 881,112 as of December 31, 2025.
- Total liabilities were $ 1,023,814 as of June 30, 2026, compared to $ 725,942 as of December 31, 2025.
- Total stockholders’ equity was $ 130,388 as of June 30, 2026, compared to $ 155,170 as of December 31, 2025.
- Capital expenditures were (4,050) for the three months ended June 30, 2026, compared to (6,207).
Analysis
Second-quarter worldwide sales were $254.6 million, up 6% from $240.7 million, with 5% constant-currency sales growth. U.S. sales increased 5% to $179.3 million and international sales increased 7% to $75.3 million. The release reported more than 33,000 worldwide pump shipments, including 22,000 in the U.S., while the pay-as-you-go reimbursement model represented 10% of U.S. sales through the pharmacy channel.
The sales mix showed differing product trends. U.S. pump sales were $83.0 million, down 3%, while U.S. supplies and other sales were $96.3 million, up 14%. International pump sales were $31.7 million, up 20%, while international supplies and other sales were $43.6 million, down 1%. International sales increased 6% in constant currency.
Profitability improved materially. Gross profit was $144.8 million and gross margin was 57%, compared with gross profit of $125.9 million and gross margin of 52% in the prior-year quarter. GAAP operating loss narrowed to $13.8 million from $51.8 million, and adjusted EBITDA was $6.4 million compared with negative $1.8 million. The prior-year quarter included a $20.0 million litigation settlement expense.
The company remained loss-making and free cash flow was negative. GAAP net loss was $21.2 million, while GAAP cash used in operating activities was $34.6 million and non-GAAP free cash flow was $38.7 million negative. Cash, cash equivalents and short-term investments were $456.0 million at June 30, 2026, while convertible senior notes, net - long-term were $602.6 million.
Tandem reaffirmed its 2026 sales, U.S. sales, international sales, gross-margin, and adjusted EBITDA-margin guidance. It also reduced 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 stock-based compensation expense from $80 million. Strategic progress included the Tandem Mobi tubeless capability 510(k) submission, new sensor compatibility, and the start of the international commercial rollout for Tandem Mobi.
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- Prior-quarter comparisons were not reported.
- No prior outlook section was provided, so comparisons of actual results with prior guidance are unavailable.
- Dividend and share-repurchase activity were not reported.
- A forward operating-expenses guidance figure was not reported.
- A forward tax-rate guidance figure was not reported.
- Tax rate was not reported.
AlphAI 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.