Tandem Diabetes (NASDAQ: TNDM) lifts Q1 2026 margins and reaffirms outlook
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Tandem Diabetes Care reported improving first quarter 2026 results with reaffirmed full-year guidance. Sales reached $247.2 million, up 5% from $234.4 million, with $160.8 million from the United States and $86.4 million from international markets. The company shipped more than 29,000 insulin pumps worldwide and achieved a 55% gross margin, up from 51%.
GAAP operating loss narrowed sharply to $17.4 million from $120.9 million, and GAAP net loss improved to $20.4 million from $130.6 million. Adjusted EBITDA turned positive at $2.7 million versus negative $79.9 million, and free cash flow was $4.8 million compared to negative $21.2 million. Cash, cash equivalents and short-term investments increased to $570.3 million from $292.7 million, alongside a rise in convertible senior notes to $601.8 million from $310.0 million after closing a 0.00% convertible debt offering.
The company reaffirmed 2026 guidance, including expected sales of about $1.065 billion to $1.085 billion, gross margin of 56%–57% of sales, and adjusted EBITDA margin of 5%–6% of sales, supported by initiatives such as a pay-as-you-go reimbursement model and expansion of its Tandem Mobi ecosystem.
Positive
- Sharp improvement in profitability metrics: GAAP net loss narrowed to $20.4 million from $130.6 million, operating loss fell to $17.4 million from $120.9 million, and adjusted EBITDA turned positive at $2.7 million versus negative $79.9 million.
- Solid growth with stronger margins: Q1 2026 sales grew 5% to $247.2 million, U.S. sales rose 7%, and gross margin expanded to 55% from 51%, indicating healthier unit economics.
- Improved cash generation and liquidity: Non-GAAP free cash flow improved to $4.8 million from negative $21.2 million, while cash, cash equivalents and short-term investments nearly doubled to $570.3 million.
Negative
- Higher leverage from convertible notes: Convertible senior notes increased to $601.8 million from $310.0 million, meaning the stronger cash position is accompanied by a substantially larger long-term debt balance.
- Business still operating at a GAAP loss: Despite progress, the company recorded a GAAP net loss of $20.4 million and GAAP operating margin remained negative at 7% of sales.
Insights
Tandem shows margin recovery, improved cash, and steady 2026 outlook.
Tandem Diabetes Care grew Q1 2026 sales 5% to $247.2 million, with 7% growth in U.S. sales and record pump shipments. Gross margin improved to 55%, up from 51%, reflecting stronger mix and cost discipline.
Loss metrics improved materially: GAAP net loss shrank to $20.4 million from $130.6 million, and adjusted EBITDA turned positive at $2.7 million. Free cash flow of $4.8 million contrasts with a prior $21.2 million outflow, indicating the core business is closer to self-funding.
On the balance sheet, cash and short-term investments rose to $570.3 million, largely offset by convertible senior notes increasing to $601.8 million. The company reaffirmed 2026 sales guidance of $1.065 billion–$1.085 billion with a targeted adjusted EBITDA margin of 5%–6%, so subsequent quarters in 2026 will show how consistently it can sustain higher margins while scaling new models like pay-as-you-go reimbursement.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 sales: $247.2 million
Gross margin: 55%
GAAP net loss: $20.4 million
+5 more
8 metrics
Q1 2026 sales
$247.2 million
Worldwide sales, up 5% vs Q1 2025
Gross margin
55%
Q1 2026 vs 51% in Q1 2025
GAAP net loss
$20.4 million
Q1 2026, improved from $130.6M in Q1 2025
Adjusted EBITDA
$2.7 million
Q1 2026, vs -$79.9M in Q1 2025
Free cash flow
$4.8 million
Q1 2026 non-GAAP free cash flow
Cash and short-term investments
$570.3 million
As of March 31, 2026
Convertible senior notes
$601.8 million
Long-term balance as of March 31, 2026
2026 revenue guidance
$1.065–$1.085 billion
Full-year 2026 sales outlook reaffirmed
Key Terms
adjusted EBITDA, constant currency sales growth, convertible senior notes, free cash flow, +2 more
6 terms
adjusted EBITDA financial
"Adjusted EBITDA(2) was $2.7 million, or 1% of sales, compared to negative $79.9 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
constant currency sales growth financial
"Constant currency sales growth is a non-GAAP measure that represents the change in sales"
convertible senior notes financial
"Convertible senior notes, net - long-term | 601,768 | | | 310,036"
Convertible senior notes are a type of loan that a company issues to investors, which can be turned into company shares later on. They are called "senior" because they are paid back before other debts if the company runs into trouble. This allows investors to earn interest like a loan but also have the chance to own part of the company if its value rises.
free cash flow financial
"Non-GAAP free cash flow (3) | $ | 4,786 | | $ | (21,243)"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
non-GAAP financial measures financial
"Certain non-GAAP financial measures are presented in this press release"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
acquired in-process research and development expenses financial
"The first quarter 2025 included a $75.2 million charge for acquired in-process research and development expenses"
Earnings Snapshot
Revenue: $247.2 million · Guidance included
Q1 2026
Revenue
$247.2 million
+5% YoY
GAAP net loss
$20.4 million
improved from $130.6 million
Gross margin
55%
up from 51%
Adjusted EBITDA
$2.7 million
from -$79.9 million
Guidance
2026 sales of $1.065–$1.085 billion, gross margin 56%–57%, adjusted EBITDA margin 5%–6% of sales.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________
FORM 8-K
____________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 7, 2026
____________________________
(Exact name of registrant as specified in its charter)
____________________________
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
| (Zip Code) | ||||||||||||||
| (Address of principal executive offices) | ||||||||||||||
Registrant’s telephone number, including area code: (858 ) 366-6900
N/A
(Former name or former address, if changed since last report)
____________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
____________________________
Item 2.02 Results of Operations and Financial Condition.
On May 7, 2026, we issued a press release reporting our financial results for the quarter ended March 31, 2026. This press release has been furnished as Exhibit 99.1 to this report and is incorporated herein by this reference.
The information under this Item 2.02 and Exhibit 99.1 hereto is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or the Exchange Act, or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Number | Description | |||||||
| 99.1 | Press release of Tandem Diabetes Care, Inc. dated May 7, 2026. | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Tandem Diabetes Care, Inc. | ||||||||
| By: | /s/ SHANNON M. HANSEN | |||||||
| Shannon M. Hansen | ||||||||
| Executive Vice President, Chief Legal, Privacy & Compliance Officer and Secretary | ||||||||
Date: May 7, 2026
3
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 First Quarter 2026 Financial Results
San Diego, May 7, 2026 - Tandem Diabetes Care, Inc. (Nasdaq: TNDM), a global insulin delivery and diabetes technology company, today reported its financial results for the quarter ended March 31, 2026 and reaffirmed financial guidance for the year ending December 31, 2026.
First Quarter 2026 Financial and Strategic Highlights
•Achieved record first quarter pump shipments, sales and gross margin:
◦Shipments of more than 29,000 pumps worldwide, including 19,000 pumps in the United States
◦Sales of $247.2 million worldwide, including $160.8 million in the United States
◦Gross margin of 55%, up 480 basis points compared to first quarter 2025
•Launched pay-as-you-go reimbursement model in the United States pharmacy channel
•Expanded Tandem Mobi connected care ecosystem by adding Android compatibility
•Demonstrated positive free cash flow and further reinforced balance sheet by closing a 0.00% convertible debt offering
“In the first quarter, we delivered on our financial plan while initiating key operational steps to advance our strategic priorities,” said John Sheridan, president and chief executive officer. “Our 2026 goals are firmly in focus, and we are committed to providing innovative, best-in-class diabetes technology to our customers in more efficient and cost-effective ways, while strengthening our global business model and building long-term value for shareholders.”
First Quarter 2026 Financial Results Compared to First Quarter 2025
•Sales: Worldwide sales increased 5% to $247.2 million, compared to $234.4 million. Sales increased 2% in constant currency(1).
Sales in the United States increased 7% to $160.8 million, compared to $150.6 million.
International sales increased 3% to $86.4 million compared to $83.8 million. Sales decreased 5% in constant currency(1).
Shipments in the United States were more than 19,000 pumps. International shipments were more than 10,000 pumps.
•Gross profit: Gross profit was $136.8 million, compared to $118.4 million. Gross margin was 55%, compared to 51%.
1
Exhibit 99.1
•Operating loss: GAAP and non-GAAP operating loss(2) was $17.4 million, or negative 7% of sales, compared to GAAP operating loss of $120.9 million, or negative 52% of sales and non-GAAP operating loss(2) of $109.7 million or negative 47% of sales, in the first quarter of 2025. The first quarter 2025 included a $75.2 million charge for acquired in-process research and development expenses (“IPR&D”).
•Net income (loss): GAAP and non-GAAP net loss(2) was $20.4 million, compared to GAAP net loss of $130.6 million and non-GAAP net loss(2) of $119.4 million, in the first quarter 2025.
Adjusted EBITDA(2) was $2.7 million, or 1% of sales, compared to negative $79.9 million, or negative 34% of sales.
(1) Constant currency sales growth is a non-GAAP measure that represents the change in sales between current and prior year periods using the exchange rate in effect during the applicable prior year period. The Company presents constant currency growth because management believes it provides meaningful information regarding the Company’s results on a consistent and comparable basis. The Company uses this non-GAAP measure to evaluate operating results. A reconciliation of constant currency to GAAP sales can be found in Table C “Sales by Geography and Non-GAAP Reconciliation of Constant Currency Sales Growth” attached to this press release. Also see “Non-GAAP Financial Measures” below for additional information.
(2) A reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures and additional information can be found in Table D “Reconciliation of GAAP versus Non-GAAP Financial Results” attached to this press release. Also see “Non-GAAP Financial Measures” below for additional information.
See tables for additional financial information.
2026 Financial Guidance
For the year ending December 31, 2026, the Company is reaffirming its financial guidance as follows:
•Sales are estimated to be approximately $1.065 billion to $1.085 billion
•United States sales of approximately $730 million to $745 million
•International sales of approximately $335 million to $340 million
•Gross margin is estimated to be approximately 56% to 57% of sales
•Adjusted EBITDA(3) margin is estimated to be approximately 5% to 6% of sales
•Non-cash charges included in cost of goods sold and operating expenses are estimated to be approximately $100 million. This includes:
•Approximately $80 million non-cash, stock-based compensation expense
•Approximately $20 million depreciation and amortization expense
For a comprehensive overview of the Company's guidance assumptions for 2026, including pricing and transition assumptions for the adoption of pay-as-you go reimbursement in the United States and the initiation of international direct operations, please see the Events & Presentations tab in the Investor Center of the Tandem Diabetes Care website at https://investor.tandemdiabetes.com.
(3) Adjusted EBITDA margin is a non-GAAP financial measure. The Company has not reconciled adjusted EBITDA margin outlook to the most comparable GAAP outlook because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management’s control and which could be significant. Because such items cannot reasonably be predicted with the level of precision required, the Company is unable to provide outlook for the comparable GAAP measure (net income (loss) as a percentage of sales). Forward-looking estimates of adjusted EBITDA margin are made in a manner consistent with relevant calculations and assumptions noted herein.
2
Exhibit 99.1
Non-GAAP Financial Measures
Certain non-GAAP financial measures are presented in this press release to provide information that may assist investors in understanding the Company’s financial results and assessing its prospects for future performance. The Company believes these non-GAAP financial measures are important operating performance indicators because they either exclude items that are unrelated to, and may not be indicative of, the Company’s core operating results, or aid in presenting information on a consistent and comparable basis. These non-GAAP financial measures, as calculated, may not necessarily be comparable to similarly titled measures of other companies and may not be appropriate measures for comparing the performance of other companies relative to the Company. These non-GAAP financial results are not intended to represent, and should not be considered to be more meaningful measures than, or alternatives to, measures of operating performance as determined in accordance with GAAP. To the extent the Company uses such non-GAAP financial measures in the future, we expect they will be calculated using a consistent method from period to period and, if not, an explanation will be provided. A reconciliation of each of the historical GAAP financial measures to the most directly comparable historical non-GAAP financial measures has been provided in Table C “Sales by Geography and Non-GAAP Reconciliation of Constant Currency Sales Growth” and Table D “Reconciliation of GAAP versus Non-GAAP Financial Results” attached to this press release.
In the first quarter of 2025, the Company included an adjustment for acquired IPR&D expense in its non-GAAP financials. Beginning in the second quarter of 2025, the Company no longer included an adjustment for IPR&D expense in its non-GAAP results to align with views expressed by the staff of the U.S. Securities and Exchange Commission.
Conference Call
The Company will hold a conference call and simultaneous webcast today at 4:30pm Eastern Time (1:30pm Pacific Time). The link to the webcast will be available by accessing the Events & Presentations tab in the Investor Center of the Tandem Diabetes Care website at http://investor.tandemdiabetes.com, and will be archived for 30 days. To access the call by phone, please use this link (https://register-conf.media-server.com/register/BI870b8c6fdaae4b6d982fb59187bc9470) and you will be provided with dial-in details, including a personal pin.
About Tandem Diabetes Care, Inc.
Tandem Diabetes Care, a global insulin delivery and diabetes technology company, manufactures and sells advanced automated insulin delivery systems that reduce the burden of diabetes management, while creating new possibilities for patients, their loved ones, and healthcare providers. The Company’s pump portfolio features the Tandem Mobi system and the t:slim X2 insulin pump, both of which feature Control-IQ+ advanced hybrid closed-loop technology. Tandem Diabetes Care is headquartered in San Diego, California. For more information, visit tandemdiabetes.com.
Tandem Diabetes Care, the Tandem logo, Control-IQ, Control-IQ+, Tandem Mobi and t:slim X2 are either registered trademarks or trademarks of Tandem Diabetes Care, Inc. in the United States and/or other countries.
3
Exhibit 99.1
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that concern matters that involve risks and uncertainties that could cause actual results to differ materially from those anticipated or projected in the forward-looking statements. These forward-looking statements include statements regarding, among other things, the Company’s projected financial results, the expected benefits of our multichannel strategy, the anticipated sales growth, and the ability to achieve other operational and commercial goals. The Company’s actual results may differ materially from those indicated in these forward-looking statements due to numerous risks and uncertainties. For instance, the Company’s ability to achieve projected financial results will be impacted by market acceptance of the Company’s products; products marketed and sold or under development by competitors; foreign currency exchange rates; the Company’s ability to establish and sustain operations to support international sales, including expanding into additional geographies; changes in reimbursement rates or insurance coverage for the Company’s products; the Company’s ability to meet increasing operational and infrastructure requirements from higher customer interest and a larger base of existing customers; the Company’s ability to successfully commercialize its products; the Company’s ability to develop and launch new products; risks associated with the regulatory approval process internationally for new products; the potential that newer products, or other technological breakthroughs for the monitoring, treatment or prevention of diabetes, may render the Company’s products obsolete or less desirable, or may otherwise negatively impact the purchasing trends of customers; reliance on third-party relationships, such as outsourcing and supplier arrangements; global economic conditions; and other risks identified in the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, and other documents that the Company files with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Tandem undertakes no obligation to update or review any forward-looking statement in this press release because of new information, future events or other factors.
# # #
4
Exhibit 99.1
| TANDEM DIABETES CARE, INC. | |||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
| Table A | |||||||||||
| (in thousands) | |||||||||||
(unaudited) | |||||||||||
| March 31, | December 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash, cash equivalents and short-term investments | $ | 570,256 | $ | 292,666 | |||||||
| Accounts receivable, net | 140,672 | 165,491 | |||||||||
| Inventories | 126,400 | 128,769 | |||||||||
| Other current assets | 49,772 | 31,217 | |||||||||
| Total current assets | 887,100 | 618,143 | |||||||||
| Property and equipment, net | 83,250 | 83,580 | |||||||||
| Operating lease right-of-use assets | 95,740 | 96,172 | |||||||||
Equity method investment | 56,486 | 60,351 | |||||||||
| Other long-term assets | 30,818 | 22,866 | |||||||||
| Total assets | $ | 1,153,394 | $ | 881,112 | |||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable, accrued expenses and employee-related liabilities | $ | 134,793 | $ | 138,488 | |||||||
| Operating lease liabilities | 20,109 | 19,472 | |||||||||
| Deferred revenue | 8,954 | 9,527 | |||||||||
| Other current liabilities | 84,103 | 75,237 | |||||||||
| Total current liabilities | 247,959 | 242,724 | |||||||||
| Convertible senior notes, net - long-term | 601,768 | 310,036 | |||||||||
| Operating lease liabilities - long-term | 112,858 | 114,967 | |||||||||
| Deferred revenue - long-term | 7,994 | 8,474 | |||||||||
| Other long-term liabilities | 50,412 | 49,741 | |||||||||
| Total liabilities | 1,020,991 | 725,942 | |||||||||
| Total stockholders’ equity | 132,403 | 155,170 | |||||||||
| Total liabilities and stockholders’ equity | $ | 1,153,394 | $ | 881,112 | |||||||
5
Exhibit 99.1
| TANDEM DIABETES CARE, INC. | |||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
| Table B | |||||||||||
| (in thousands, except per share data) | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Sales | $ | 247,221 | $ | 234,422 | |||||||
| Cost of sales | 110,433 | 116,015 | |||||||||
| Gross profit | 136,788 | 118,407 | |||||||||
| Operating expenses: | |||||||||||
| Selling, general and administrative | 108,187 | 113,853 | |||||||||
| Research and development | 46,035 | 50,215 | |||||||||
| Acquired in-process research and development expenses | — | 75,217 | |||||||||
| Total operating expenses | 154,222 | 239,285 | |||||||||
Operating loss | (17,434) | (120,878) | |||||||||
| Total other income (expense), net | (2,443) | (1,211) | |||||||||
Loss before income taxes | (19,877) | (122,089) | |||||||||
Income tax expense | 516 | 8,467 | |||||||||
Net loss | $ | (20,393) | $ | (130,556) | |||||||
Net loss per share - basic and diluted | $ | (0.30) | $ | (1.97) | |||||||
Weighted average shares used to compute basic and diluted net loss per share | 68,397 | 66,404 | |||||||||
6
Exhibit 99.1
| TANDEM DIABETES CARE, INC. | |||||||||||||||||||||||||||||
SALES BY GEOGRAPHY AND NON-GAAP RECONCILIATION OF CONSTANT CURRENCY SALES GROWTH | |||||||||||||||||||||||||||||
Table C | |||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
| ($'s in thousands) | Three Months Ended March 31, | ||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | Currency Impact | % Change Constant Currency | |||||||||||||||||||||||||
| United States: | |||||||||||||||||||||||||||||
| Pump | $ | 77,941 | $ | 72,141 | 8% | ||||||||||||||||||||||||
| Supplies and other | 82,902 | 78,491 | 6% | ||||||||||||||||||||||||||
Total Sales in the United States | $ | 160,843 | $ | 150,632 | 7% | —% | 7% | ||||||||||||||||||||||
International: | |||||||||||||||||||||||||||||
| Pump | $ | 32,485 | $ | 29,950 | 8% | ||||||||||||||||||||||||
| Supplies and other | 53,893 | 53,840 | —% | ||||||||||||||||||||||||||
Total International Sales | $ | 86,378 | $ | 83,790 | 3% | 8% | (5)% | ||||||||||||||||||||||
Total Worldwide Sales(1) | $ | 247,221 | $ | 234,422 | 5% | 3% | 2% | ||||||||||||||||||||||
(1) Constant currency sales growth is a non-GAAP measure that represents the change in sales between current and prior year periods using the exchange rate in effect during the applicable prior year period. The Company presents constant currency growth because management believes it provides meaningful information regarding the Company’s results on a consistent and comparable basis. The Company uses this non-GAAP measure to evaluate the Company’s operating results.
7
Exhibit 99.1
| TANDEM DIABETES CARE, INC. | |||||||||||
RECONCILIATION OF GAAP VERSUS NON-GAAP FINANCIAL RESULTS | |||||||||||
Table D | |||||||||||
| (Unaudited) | |||||||||||
| ($'s in thousands) | Three Months Ended March 31, | ||||||||||
| 2026 | 2025 | ||||||||||
GAAP operating loss | $ | (17,434) | $ | (120,878) | |||||||
Non-recurring facility impairment and restructuring costs(1) | — | 11,167 | |||||||||
| Non-GAAP operating loss | $ | (17,434) | $ | (109,711) | |||||||
GAAP operating margin(2) | (7)% | (52)% | |||||||||
Non-GAAP operating margin(2) | (7)% | (47)% | |||||||||
GAAP net loss | $ | (20,393) | $ | (130,556) | |||||||
Income tax expense | 516 | 8,467 | |||||||||
| Interest income, interest expense and other, net | 2,443 | 1,211 | |||||||||
| Depreciation and amortization | 4,504 | 4,311 | |||||||||
| Stock-based compensation expense | 15,660 | 25,489 | |||||||||
Non-recurring facility impairment and restructuring costs(1) | — | 11,167 | |||||||||
| Adjusted EBITDA | $ | 2,730 | $ | (79,911) | |||||||
Adjusted EBITDA margin(2) | 1 | % | (34) | % | |||||||
GAAP net loss | $ | (20,393) | $ | (130,556) | |||||||
Non-recurring facility impairment and restructuring costs(1) | — | 11,167 | |||||||||
| Non-GAAP net loss | $ | (20,393) | $ | (119,389) | |||||||
GAAP cash provided by (used in) operating activities | $ | 11,054 | $ | (18,278) | |||||||
Less: capital expenditures | (6,268) | (2,965) | |||||||||
Non-GAAP free cash flow (3) | $ | 4,786 | $ | (21,243) | |||||||
(1) In the first quarter of 2025, the Company recorded $11.2 million in impairment charges related to its operating lease right-of-use assets, and severance and other restructuring costs associated with the relocation of certain research and development activities.
(2) GAAP margins, including GAAP gross margin and GAAP operating margin, and non-GAAP margins, including non-GAAP operating margin and adjusted EBITDA margin, are calculated using GAAP sales.
(3) Free Cash Flow is a non-GAAP financial measure that we define as cash provided by operating activities less capital expenditures.
8
FAQ
How did Tandem Diabetes Care (TNDM) perform financially in Q1 2026?
Tandem Diabetes Care grew Q1 2026 sales to $247.2 million, up 5% from $234.4 million. Gross margin improved to 55% from 51%, while GAAP net loss narrowed significantly to $20.4 million compared with $130.6 million a year earlier.
What were Tandem Diabetes Care’s U.S. and international sales in Q1 2026?
In Q1 2026, Tandem Diabetes Care generated $160.8 million of sales in the United States and $86.4 million internationally. U.S. sales grew 7%, international sales grew 3%, and worldwide constant-currency sales growth was 2% versus the prior-year quarter.
Did Tandem Diabetes Care reach profitability or positive cash flow in Q1 2026?
Tandem Diabetes Care remained loss-making on GAAP metrics, with a $20.4 million net loss. However, adjusted EBITDA was $2.7 million, turning positive, and non-GAAP free cash flow reached $4.8 million, an improvement from negative $21.2 million in Q1 2025.
How did Tandem Diabetes Care’s balance sheet change in Q1 2026?
By March 31, 2026, cash, cash equivalents and short-term investments increased to $570.3 million from $292.7 million. At the same time, convertible senior notes rose to $601.8 million from $310.0 million, reflecting a sizeable 0.00% convertible debt offering.
What 2026 financial guidance did Tandem Diabetes Care reaffirm?
For 2026, Tandem Diabetes Care reaffirmed expected sales of $1.065–$1.085 billion, with U.S. sales of $730–$745 million and international sales of $335–$340 million. It also guided to a 56%–57% gross margin and 5%–6% adjusted EBITDA margin.
How many insulin pumps did Tandem Diabetes Care ship in Q1 2026?
Tandem Diabetes Care reported record first quarter shipments of more than 29,000 pumps worldwide. This included more than 19,000 pumps in the United States and over 10,000 pumps in international markets, supporting both sales growth and higher gross margin.