Tandem Diabetes Care reported fourth‑quarter 2025 revenue of $290.4 million, up 5.2 % from the $276 million consensus estimate, and a loss of $0.01 per share versus the $-0.05 per share consensus estimate, a beat of $0.04 or 80 % of the expected loss. Gross margin for the quarter rose to 58 %, the highest level on record, up from 56 % GAAP and 51 % non‑GAAP in the same period a year earlier.
Full‑year 2025 sales totaled $1.015 billion, exceeding the $1.003 billion consensus estimate by $12 million. The company’s full‑year gross margin reached 54 %, an increase of 3 percentage points from the 51 % margin reported in 2024, reflecting a more favorable product mix and pricing power across its pump and supplies businesses.
The margin expansion was driven by higher average selling prices, a shift toward the pharmacy‑benefit channel, and cost efficiencies in the production of the Mobi insulin pump. The company also benefited from a stronger mix of high‑margin pump shipments and increased consumables sales through the pharmacy channel, offsetting modest cost inflation in raw materials and logistics.
Management reiterated its 2026 sales guidance of $1.065 billion to $1.085 billion, slightly below the $1.103 billion consensus estimate. The guidance reflects anticipated headwinds from the U.S. pay‑as‑you‑go pharmacy model, projected to reduce U.S. sales by $70‑$80 million, and the transition to direct international operations, which may cause inventory buybacks and distributor destocking. The company highlighted the upcoming launch of a tubeless Mobi variant in the second half of 2026 and the global rollout of its t:slim X2 pump integrated with the FreeStyle Libre 3 Plus sensor as key growth catalysts.
Tandem’s results signal a transition year: short‑term revenue headwinds are expected, but the company’s margin trajectory and product pipeline position it for accelerated growth in 2027 and beyond. The firm’s focus on a pay‑as‑you‑go model aims to improve patient access while creating a more predictable revenue stream, and the expansion of direct international operations is intended to capture market share in high‑growth regions.
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