PART I. FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents Insulet Corporation's unaudited condensed consolidated financial statements, including balance sheets, income, comprehensive income, stockholders' equity, and cash flows, with detailed notes for the periods ended June 30, 2025, and December 31, 2024 [Condensed Consolidated Balance Sheets (Unaudited)](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)%20as%20of%20June%2030,%202025%20and%20December%2031,%202024) This section presents the unaudited condensed consolidated balance sheets for the specified periods **Condensed Consolidated Balance Sheets (Unaudited) (in millions):** | (in millions, except share and per share data) | June 30, 2025 | December 31, 2024 | | :--------------------------------------------- | :------------ | :---------------- | | **ASSETS** | | | | Cash and cash equivalents | $ 1,121.6 | $ 953.4 | | Accounts receivable trade, net | $ 306.4 | $ 252.5 | | Accounts receivable trade, net — related party | $ 138.1 | $ 113.0 | | Inventories | $ 446.9 | $ 430.4 | | Prepaid expenses and other current assets | $ 266.7 | $ 142.0 | | **Total current assets** | **$ 2,279.7** | **$ 1,891.3** | | Property, plant and equipment, net | $ 720.4 | $ 723.1 | | Other intangible assets, net | $ 102.3 | $ 98.5 | | Goodwill | $ 51.7 | $ 51.5 | | Other assets | $ 315.1 | $ 323.3 | | **Total assets** | **$ 3,469.2** | **$ 3,087.7** | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Accounts payable | $ 96.1 | $ 19.8 | | Accrued expenses and other current liabilities | $ 453.4 | $ 423.9 | | Accrued expenses and other current liabilities — related party | $ — | $ 1.0 | | Current portion of long-term debt | $ 460.7 | $ 83.8 | | **Total current liabilities** | **$ 1,010.1** | **$ 528.4** | | Long-term debt, net | $ 939.0 | $ 1,296.1 | | Other liabilities | $ 57.1 | $ 51.7 | | **Total liabilities** | **$ 2,006.3** | **$ 1,876.1** | | **Total stockholders' equity** | **$ 1,462.9** | **$ 1,211.6** | | **Total liabilities and stockholders' equity** | **$ 3,469.2** | **$ 3,087.7** | [Condensed Consolidated Statements of Income (Unaudited)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Unaudited)%20for%20the%20three%20and%20six%20months%20ended%20June%2030,%202025%20and%202024) This section presents the unaudited condensed consolidated statements of income for the specified periods **Condensed Consolidated Statements of Income (Unaudited) (in millions, except share and per share data):** | (in millions, except share and per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Revenue | $ 470.5 | $ 341.2 | $ 891.0 | $ 671.1 | | Revenue from related party | $ 178.6 | $ 147.3 | $ 327.1 | $ 259.1 | | **Total revenue** | **$ 649.1** | **$ 488.5** | **$ 1,218.1** | **$ 930.2** | | Cost of revenue | $ 196.9 | $ 157.6 | $ 356.8 | $ 292.5 | | **Gross profit** | **$ 452.2** | **$ 330.9** | **$ 861.3** | **$ 637.7** | | Research and development expenses | $ 73.4 | $ 53.9 | $ 133.0 | $ 104.1 | | Selling, general and administrative expenses | $ 257.7 | $ 222.5 | $ 518.4 | $ 422.2 | | **Operating income** | **$ 121.1** | **$ 54.5** | **$ 209.9** | **$ 111.5** | | Interest expense | $ (19.6) | $ (11.0) | $ (28.8) | $ (21.7) | | Interest income | $ 10.1 | $ 9.3 | $ 20.3 | $ 18.7 | | Loss on extinguishment of debt | $ (84.4) | $ — | $ (123.9) | $ — | | Other income (expense), net | $ 1.3 | $ (1.8) | $ (0.9) | $ (2.5) | | **Income before income taxes** | **$ 28.4** | **$ 51.1** | **$ 76.5** | **$ 106.0** | | Income tax (expense) benefit | $ (5.9) | $ 137.5 | $ (18.6) | $ 134.1 | | **Net income** | **$ 22.5** | **$ 188.6** | **$ 57.9** | **$ 240.1** | | **Earnings per share: Basic** | **$ 0.32** | **$ 2.69** | **$ 0.82** | **$ 3.43** | | **Earnings per share: Diluted** | **$ 0.32** | **$ 2.59** | **$ 0.82** | **$ 3.32** | | Weighted-average number of common shares outstanding (in thousands): Basic | 70,389 | 70,062 | 70,330 | 70,010 | | Weighted-average number of common shares outstanding (in thousands): Diluted | 70,652 | 73,802 | 70,641 | 73,771 | [Condensed Consolidated Statements of Comprehensive Income (Unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Unaudited)%20for%20the%20three%20and%20six%20months%20ended%20June%2030,%202025%20and%202024) This section presents the unaudited condensed consolidated statements of comprehensive income for the specified periods **Condensed Consolidated Statements of Comprehensive Income (Unaudited) (in millions):** | (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net income | $ 22.5 | $ 188.6 | $ 57.9 | $ 240.1 | | Other comprehensive income (loss), net of tax: | | | | | | Foreign currency translation adjustment | $ 22.3 | $ (1.2) | $ 32.6 | $ (7.7) | | Unrealized loss on cash flow hedges, net of tax | $ (0.9) | $ (2.8) | $ (4.1) | $ (4.7) | | **Other comprehensive income (loss), net of tax** | **$ 21.4** | **$ (3.9)** | **$ 28.6** | **$ (12.4)** | | **Comprehensive income** | **$ 43.9** | **$ 184.7** | **$ 86.5** | **$ 227.7** | [Condensed Consolidated Statements of Stockholders' Equity (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20(Unaudited)%20for%20the%20three%20and%20six%20months%20ended%20June%2030,%202025%20and%202024) This section presents the unaudited condensed consolidated statements of stockholders' equity for the specified periods **Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Three Months Ended June 30, 2025, in millions):** | (dollars in millions) | Common Stock Shares (in thousands) | Common Stock Amount | Additional Paid-in Capital | Accumulated Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Deferred Compensation | Total Shareholders' Equity | | :-------------------- | :--------------------------------- | :------------------ | :------------------------- | :------------------- | :-------------------------------------------- | :------------- | :-------------------- | :------------------------- | | Balance at March 31, 2025 | 70,362 | $ 0.1 | $ 1,260.9 | $ 75.7 | $ (6.0) | $ (0.2) | $ 0.2 | $ 1,330.6 | | Net income | — | — | — | 22.5 | — | — | — | 22.5 | | Other comprehensive income, net of tax | — | — | — | — | 21.4 | — | — | 21.4 | | Exercise of options to purchase common stock | 71 | — | 10.1 | — | — | — | — | 10.1 | | Issuance of shares for employee stock purchase plan | 31 | — | 7.1 | — | — | — | — | 7.1 | | Stock-based compensation expense | — | — | 7.5 | — | — | — | — | 7.5 | | Restricted stock units vested, net of shares withheld for taxes | 20 | — | (1.6) | — | — | — | — | (1.6) | | Repurchase of common stock | (93) | — | — | — | — | (30.1) | — | (30.1) | | Deferred compensation | — | — | — | — | — | (0.7) | 0.7 | — | | Settlement of capped call options | — | — | 95.4 | — | — | — | — | 95.4 | | **Balance at June 30, 2025** | **70,391** | **$ 0.1** | **$ 1,379.4** | **$ 98.2** | **$ 15.4** | **$ (31.0)** | **$ 0.9** | **$ 1,462.9** | **Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Six Months Ended June 30, 2025, in millions):** | (dollars in millions) | Common Stock Shares (in thousands) | Common Stock Amount | Additional Paid-in Capital | Accumulated Earnings | Accumulated Other Comprehensive (Loss) income | Treasury Stock | Deferred Compensation | Total Shareholders' Equity | | :-------------------- | :--------------------------------- | :------------------ | :------------------------- | :------------------- | :-------------------------------------------- | :------------- | :-------------------- | :------------------------- | | Balance at December 31, 2024 | 70,196 | $ 0.1 | $ 1,184.4 | $ 40.3 | $ (13.2) | $ — | $ — | $ 1,211.6 | | Net income | — | — | — | 57.9 | — | — | — | 57.9 | | Other comprehensive income, net of tax | — | — | — | — | 28.6 | — | — | 28.6 | | Exercise of options to purchase common stock | 108 | — | 12.6 | — | — | — | — | 12.6 | | Issuance of shares for employee stock purchase plan | 31 | — | 7.1 | — | — | — | — | 7.1 | | Stock-based compensation expense | — | — | 25.7 | — | — | — | — | 25.7 | | Restricted stock units vested, net of shares withheld for taxes | 148 | — | (22.9) | — | — | — | — | (22.9) | | Repurchase of common stock | (93) | — | — | — | — | (30.1) | — | (30.1) | | Deferred compensation | — | — | — | — | — | (0.9) | 0.9 | — | | Settlement of capped call options | — | — | 172.4 | — | — | — | — | 172.4 | | **Balance at June 30, 2025** | **70,391** | **$ 0.1** | **$ 1,379.4** | **$ 98.2** | **$ 15.4** | **$ (31.0)** | **$ 0.9** | **$ 1,462.9** | [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)%20for%20the%20six%20months%20ended%20June%2030,%202025%20and%202024%20(Restated)) This section presents the unaudited condensed consolidated statements of cash flows for the specified periods, including a restatement for 2024 **Condensed Consolidated Statements of Cash Flows (Unaudited) (in millions):** | (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 (Restated) | | :------------------------------------------ | :------------------------------- | :---------------------------------------- | | **Cash flows from operating activities** | | | | Net income | $ 57.9 | $ 240.1 | | Depreciation and amortization | $ 44.0 | $ 38.0 | | Stock-based compensation expense | $ 25.7 | $ 31.2 | | Loss on extinguishment of debt | $ 123.9 | $ — | | Deferred income taxes | $ 7.0 | $ (139.2) | | Changes in operating assets and liabilities: Accounts receivable | $ (41.8) | $ (29.1) | | Net cash provided by operating activities | $ 260.3 | $ 174.4 | | **Cash flows from investing activities** | | | | Capital expenditures | $ (30.9) | $ (44.6) | | Investments in developed software | $ (8.0) | $ (4.3) | | **Net cash used in investing activities** | **$ (38.9)** | **$ (48.9)** | | **Cash flows from financing activities** | | | | Proceeds from issuance of senior unsecured notes, net | $ 440.7 | $ — | | Repayment of convertible debt | $ (541.5) | $ — | | Settlement of capped call options | $ 75.7 | $ — | | Repurchase of common stock | $ (30.1) | $ — | | Proceeds from exercise of stock options | $ 12.6 | $ 6.9 | | Payment of withholding taxes in connection with vesting of restricted stock units | $ (22.9) | $ (6.1) | | **Net cash used in financing activities** | **$ (65.8)** | **$ (5.3)** | | Effect of exchange rate changes on cash and cash equivalents | $ 12.7 | $ (3.4) | | **Net increase in cash, cash equivalents and restricted cash** | **$ 168.2** | **$ 116.8** | | Cash and cash equivalents at beginning of period | $ 953.4 | $ 704.2 | | **Cash and cash equivalents at end of period** | **$ 1,121.6** | **$ 821.0** | [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section provides detailed explanations and disclosures for the unaudited condensed consolidated financial statements, covering accounting policies, revenue, balance sheet accounts, debt, financial instruments, derivatives, commitments, contingencies, segment data, equity, income taxes, earnings per share, and accumulated other comprehensive income, including a restatement of the cash flow statement for June 30, 2024 [Note 1. Basis of Presentation and Summary of Significant Accounting Policies](index=9&type=section&id=Note%201.%20Basis%20of%20Presentation%20and%20Summary%20of%20Significant%20Accounting%20Policies) This note details the basis of financial statement presentation and significant accounting policies - The financial statements are unaudited, prepared in accordance with GAAP, and reflect the consolidated income of Insulet Corporation and its subsidiaries, with management's estimates and assumptions used, and actual results may differ, noting that operating results for the six months ended June 30, 2025, are not indicative of the full year[31](index=31&type=chunk) - The Condensed Consolidated Statement of Cash Flow for the six months ended June 30, 2024, was **restated to correct an error in presentation**, which impacted operating and financing activities but not net cash increase or net income[33](index=33&type=chunk) **Restatement Impact on Condensed Consolidated Statement of Cash Flows (Six Months Ended June 30, 2024, in millions):** | (in millions) | Previously Reported | Restatement Adjustment | Restated | | :-------------------------------- | :------------------ | :--------------------- | :------- | | Accounts receivable | $ (11.2) | $ (17.9) | $ (29.1) | | Accrued expenses and other liabilities | $ (11.4) | $ 8.2 | $ (3.2) | | Net cash provided by operating activities | $ 184.1 | $ (9.7) | $ 174.4 | | Proceeds from secured borrowing | $ — | $ 17.9 | $ 17.9 | | Repayments of secured borrowing | $ — | $ (8.2) | $ (8.2) | | Net cash used in financing activities | $ (15.0) | $ 9.7 | $ (5.3) | - Related party transactions exist with a distributor where the spouse of a board member is an executive officer, with terms consistent with arm's length[35](index=35&type=chunk) - Shipping and handling costs, included in selling, general and administrative expenses, were **$5.3 million** for the three months ended June 30, 2025 (up from **$4.0 million** in 2024) and **$9.9 million** for the six months ended June 30, 2025 (up from **$7.4 million** in 2024)[36](index=36&type=chunk) - Fair value measurements are categorized into **Level 1** (observable inputs like quoted prices), **Level 2** (significant other observable inputs), and **Level 3** (significant unobservable inputs requiring company assumptions)[37](index=37&type=chunk)[41](index=41&type=chunk) [Note 2. Revenue and Contract Acquisition Costs](index=10&type=section&id=Note%202.%20Revenue%20and%20Contract%20Acquisition%20Costs) This note details the company's revenue recognition and contract acquisition costs **Disaggregated Revenue (in millions):** | (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | U.S. | $ 453.2 | $ 352.3 | $ 854.9 | $ 670.0 | | International | $ 185.8 | $ 128.2 | $ 338.1 | $ 243.4 | | Total Omnipod products | $ 639.0 | $ 480.4 | $ 1,193.0 | $ 913.4 | | Drug Delivery | $ 10.2 | $ 8.1 | $ 25.1 | $ 16.8 | | **Total revenue** | **$ 649.1** | **$ 488.5** | **$ 1,218.1** | **$ 930.2** | - Three distributors (A, B, C) each represented **10% or more of total revenue**: Distributor A was **26%** (Q2 2025) and **29%** (Q2 2024); **26%** (H1 2025) and **27%** (H1 2024)[39](index=39&type=chunk) **Deferred Revenue (in millions):** | (in millions) | June 30, 2025 | December 31, 2024 | | :---------------------------------- | :-------------- | :---------------- | | Accrued expenses and other current liabilities | $ 17.4 | $ 12.0 | | Other liabilities | $ 1.4 | $ 2.0 | | **Total deferred revenue** | **$ 18.7** | **$ 14.0** | - Revenue recognized from amounts included in deferred revenue at the beginning of each period was **$0.5 million** for Q2 2025 (vs **$4.0 million** Q2 2024) and **$6.2 million** for H1 2025 (vs **$7.2 million** H1 2024)[40](index=40&type=chunk) **Capitalized Contract Acquisition Costs, Net (in millions):** | (in millions) | June 30, 2025 | December 31, 2024 | | :---------------------------------- | :-------------- | :---------------- | | Prepaid expenses and other current assets | $ 22.6 | $ 20.1 | | Other assets | $ 46.3 | $ 40.8 | | **Total capitalized contract acquisition costs, net** | **$ 69.0** | **$ 60.9** | - Amortization expense for capitalized contract acquisition costs was **$5.5 million** for Q2 2025 (vs **$4.4 million** Q2 2024) and **$10.6 million** for H1 2025 (vs **$8.6 million** H1 2024)[40](index=40&type=chunk) [Note 3. Accounts Receivable, Net](index=11&type=section&id=Note%203.%20Accounts%20Receivable,%20Net) This note details the composition of accounts receivable, net **Accounts Receivable Composition (in millions):** | (in millions) | June 30, 2025 | December 31, 2024 | | :-------------------------- | :-------------- | :---------------- | | Accounts receivable trade, net | $ 292.6 | $ 242.8 | | Unbilled receivable | $ 13.7 | $ 9.7 | | **Accounts receivable, net** | **$ 306.4** | **$ 252.5** | - Key distributors (A, B, C) represent significant portions of trade accounts receivable, with Distributor A at **30%** (June 2025) and **35%** (Dec 2024)[42](index=42&type=chunk) - The Company outsources insurance claim submissions to a third-party, transferring certain receivables for cash in advance with recourse, with receivables pledged as collateral totaling **$17.7 million** (June 2025) and **$12.2 million** (Dec 2024)[42](index=42&type=chunk) [Note 4. Inventories](index=11&type=section&id=Note%204.%20Inventories) This note details the composition of inventories **Inventories Composition (in millions):** | (in millions) | June 30, 2025 | December 31, 2024 | | :---------------- | :-------------- | :---------------- | | Raw materials | $ 179.8 | $ 156.7 | | Work in process | $ 66.0 | $ 81.2 | | Finished goods | $ 201.2 | $ 192.5 | | **Total inventories** | **$ 446.9** | **$ 430.4** | - A **$13.5 million charge** related to Omnipod GO inventory components was recorded in cost of revenue for Q2 and H1 2024 due to the decision not to commercialize the product[43](index=43&type=chunk) [Note 5. Cloud Computing Costs](index=11&type=section&id=Note%205.%20Cloud%20Computing%20Costs) This note details the company's capitalized cloud computing costs **Capitalized Cloud Computing Implementation Costs, Net (in millions):** | (in millions) | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :-------------- | :---------------- | | Short-term portion | $ 36.6 | $ 31.7 | | Long-term portion | $ 144.1 | $ 135.3 | | Total capitalized implementation costs | $ 180.7 | $ 167.0 | | Less: accumulated amortization | $ (77.8) | $ (62.4) | | **Capitalized implementation costs, net** | **$ 102.9** | **$ 104.6** | - Amortization expense for cloud computing costs was **$7.9 million** for Q2 2025 (vs **$6.5 million** Q2 2024) and **$15.5 million** for H1 2025 (vs **$12.6 million** H1 2024)[44](index=44&type=chunk) [Note 6. Goodwill and Other Intangible Assets, Net](index=12&type=section&id=Note%206.%20Goodwill%20and%20Other%20Intangible%20Assets,%20Net) This note details the company's goodwill and other intangible assets **Goodwill Carrying Amount (in millions):** | (in millions) | | | :-------------------------- | :------ | | Balance at December 31, 2024 | $ 51.5 | | Foreign currency translation | $ 0.1 | | **Balance at June 30, 2025** | **$ 51.7** | **Intangible Assets, Net (in millions):** | (in millions) | June 30, 2025 Net Book Value | December 31, 2024 Net Book Value | | :-------------------- | :--------------------------- | :--------------------------- | | Customer relationships | $ 8.5 | $ 9.6 | | Internal-use software | $ 44.2 | $ 36.8 | | Developed technology | $ 21.5 | $ 22.5 | | Patents | $ 28.1 | $ 29.6 | | **Total intangible assets** | **$ 102.3** | **$ 98.5** | - Amortization expense for intangible assets was **$2.6 million** for Q2 2025 (vs **$2.4 million** Q2 2024) and **$5.0 million** for H1 2025 (vs **$4.8 million** H1 2024)[45](index=45&type=chunk) [Note 7. Investments](index=12&type=section&id=Note%207.%20Investments) This note details the company's investments - Equity securities without readily determinable fair values totaled **$19.1 million** (June 2025) and **$21.9 million** (Dec 2024), carried at cost less impairment, with a **$2.8 million impairment** recorded for one equity security in H1 2025[46](index=46&type=chunk) - A strategic investment in debt securities had an amortized cost basis of **$5.0 million** at both June 2025 and Dec 2024, with a **$4.7 million provision for credit loss** recorded in H1 2025 for this debt investment[47](index=47&type=chunk) [Note 8. Accrued Expenses and Other Current Liabilities](index=12&type=section&id=Note%208.%20Accrued%20Expenses%20and%20Other%20Current%20Liabilities) This note details the composition of accrued expenses and other current liabilities **Accrued Expenses and Other Current Liabilities (in millions):** | (in millions) | June 30, 2025 | December 31, 2024 | | :---------------------------------- | :-------------- | :---------------- | | Accrued rebates | $ 175.4 | $ 148.3 | | Employee compensation and related costs | $ 131.9 | $ 142.9 | | Professional and consulting services | $ 40.9 | $ 51.6 | | Other | $ 105.3 | $ 81.2 | | **Accrued expenses and other current liabilities** | **$ 453.4** | **$ 423.9** | - The Company provides a **four-year warranty** on Controllers and PDMs sold in the United States and Europe, and a **five-year warranty** in Canada, with warranty expense estimated based on historical experience and product cost, recorded in cost of revenue[49](index=49&type=chunk)[50](index=50&type=chunk) **Product Warranty Liability (in millions):** | (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | | Product warranty liability at beginning of period | $ 13.9 | $ 10.2 | | Warranty expense | $ 14.4 | $ 11.2 | | Change in estimate | $ — | $ (0.4) | | Warranty fulfillment | $ (11.2) | $ (9.4) | | **Product warranty liability at the end of period** | **$ 17.1** | **$ 11.6** | [Note 9. Debt](index=13&type=section&id=Note%209.%20Debt) This note details the company's debt components and related transactions **Debt Components (in millions):** | (in millions) | Maturity Date | June 30, 2025 Amount | December 31, 2024 Amount | | :---------------------- | :------------ | :------------------- | :----------------------- | | Equipment financing | 2025 | $ 4.7 | $ 8.7 | | Mortgage | 2025 | $ 59.7 | $ 60.9 | | Convertible Senior Notes | 2026 | $ 378.4 | $ 800.0 | | Equipment financings | 2028 | $ 41.2 | $ 40.8 | | Revolving Credit Facility | 2030 | $ — | $ — | | Term Loan B | 2031 | $ 480.0 | $ 482.5 | | Senior Unsecured Notes | 2033 | $ 450.0 | $ — | | Unamortized debt discount | 2025 - 2033 | $ (3.7) | $ (5.4) | | Debt issuance costs | 2025 - 2033 | $ (10.6) | $ (7.7) | | **Total debt, net** | | **$ 1,399.7** | **$ 1,379.8** | | Less: current portion | | $ 460.7 | $ 83.8 | | **Total long-term debt, net** | | **$ 939.0** | **$ 1,296.1** | - During the six months ended June 30, 2025, the Company repurchased **$419.9 million** in principal of Convertible Notes for **$541.5 million** in cash, resulting in a **$123.9 million loss on extinguishment**[58](index=58&type=chunk) - In June 2025, the Company issued a notice of redemption for the remaining **$380.1 million** in principal of Convertible Notes, with settlement expected in August 2025[59](index=59&type=chunk) - In March 2025, the Revolving Credit Facility borrowing capacity was upsized to **$500 million** and its maturity date extended to March 2030, and in June 2025, the Term Loan B interest rate was amended to **SOFR plus 2.00%**, and the Revolving Credit Facility to **SOFR plus an applicable margin of 1.50% to 2.00%**[60](index=60&type=chunk)[61](index=61&type=chunk) - In March 2025, the Company issued **$450 million** aggregate principal amount of **6.5% Senior Unsecured Notes** due April 2033, with net proceeds of **$440.7 million** used to repurchase a portion of the Convertible Notes[62](index=62&type=chunk) [Note 10. Financial Instruments and Fair Value](index=15&type=section&id=Note%2010.%20Financial%20Instruments%20and%20Fair%20Value) This note details the company's financial instruments and fair value measurements **Financial Instruments Disclosed at Fair Value (June 30, 2025, in millions):** | (in millions) | Level 1 | Level 2 | Level 3 | Total | | :---------------------- | :------ | :------ | :------ | :------ | | Term Loan B | $ 483.9 | $ — | $ — | $ 483.9 | | Senior Unsecured Notes | $ 469.4 | $ — | $ — | $ 469.4 | | Convertible Senior Notes | $ — | $ 526.6 | $ — | $ 526.6 | | Equipment financings | $ — | $ — | $ 45.8 | $ 45.8 | | Mortgage | $ — | $ — | $ 59.6 | $ 59.6 | | **Total** | **$ 953.3** | **$ 526.6** | **$ 105.3** | **$ 1,585.2** | **Assets Measured at Fair Value on a Recurring Basis (June 30, 2025, in millions):** | (in millions) | Level 1 | Level 2 | Level 3 | Total | | :---------------------- | :------ | :------ | :------ | :------ | | Cash | $ 185.9 | $ — | $ — | $ 185.9 | | Money market mutual funds | $ 806.9 | $ — | $ — | $ 806.9 | | Term deposits | $ — | $ 128.7 | $ — | $ 128.7 | | Interest rate swaps | $ — | $ 0.2 | $ — | $ 0.2 | | **Total assets** | **$ 992.9** | **$ 128.9** | **$ —** | **$ 1,121.8** | - A **$4.7 million provision for credit loss** on debt securities was included in selling, general and administrative expenses for the six months ended June 30, 2025[68](index=68&type=chunk) [Note 11. Derivative Instruments](index=16&type=section&id=Note%2011.%20Derivative%20Instruments) This note details the company's derivative instruments - In April 2025, the Company replaced expired interest rate swaps with new ones, receiving variable rate interest and paying fixed interest at a weighted average rate of **3.47% on $460.0 million of Term Loan B**, designated as cash flow hedges[70](index=70&type=chunk) - As of June 30, 2025, **$1.7 million of net gains** related to interest rate swaps in accumulated other comprehensive income will be reclassified into interest expense over the next 12 months[71](index=71&type=chunk) [Note 12. Commitments and Contingencies](index=16&type=section&id=Note%2012.%20Commitments%20and%20Contingencies) This note details the company's commitments and contingencies, including legal proceedings - On April 24, 2025, a U.S. District Court entered final judgment in favor of Insulet against EOFlow for trade secret misappropriation, upholding a jury verdict of **$452 million in damages** (reduced to **$59.4 million** due to a permanent injunction)[72](index=72&type=chunk) - The permanent injunction prohibits EOFlow from using, selling, or seeking regulatory approval for products designed with Insulet's trade secrets worldwide, with a limited six-month exception for existing patients in South Korea and the EU[72](index=72&type=chunk) - The Company has not recorded the awarded damages as EOFlow has appealed, and Insulet has cross-appealed, with the court of appeals partially staying the injunction for existing patients in South Korea and the EU until further notice[73](index=73&type=chunk) [Note 13. Segment and Geographic Data](index=17&type=section&id=Note%2013.%20Segment%20and%20Geographic%20Data) This note details the company's segment and geographic data - The Company operates under **one reportable segment**, with the CEO as the Chief Operating Decision-Maker (CODM), evaluating consolidated operating income and net income[74](index=74&type=chunk) **Geographic Revenue (in millions):** | (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | U.S. | $ 463.3 | $ 360.3 | $ 879.9 | $ 686.8 | | International | $ 185.8 | $ 128.2 | $ 338.1 | $ 243.4 | | **Total revenue** | **$ 649.1** | **$ 488.5** | **$ 1,218.1** | **$ 930.2** | **Geographic Long-Lived Assets, Net (in millions):** | (in millions) | June 30, 2025 | December 31, 2024 | | :------------------------ | :-------------- | :---------------- | | U.S. | $ 465.9 | $ 475.9 | | Malaysia | $ 160.9 | $ 159.1 | | China | $ 75.2 | $ 78.5 | | Other | $ 18.4 | $ 9.7 | | **Total long-lived assets, net** | **$ 720.4** | **$ 723.1** | [Note 14. Equity](index=17&type=section&id=Note%2014.%20Equity) This note details the company's equity activities, including stock-based compensation and share repurchases - In May 2025, the Company adopted the **2025 Stock Option and Incentive Plan**, replacing its previous plan, with a maximum of **7.4 million shares** to be issued[77](index=77&type=chunk) **Stock-Based Compensation Expense (in millions):** | (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Cost of revenue | $ 0.2 | $ 0.2 | $ 0.4 | $ 0.4 | | Research and development expenses | $ 2.9 | $ 2.1 | $ 5.5 | $ 4.2 | | Selling, general and administrative expenses | $ 4.4 | $ 14.6 | $ 19.8 | $ 26.6 | | **Total** | **$ 7.5** | **$ 17.0** | **$ 25.7** | **$ 31.2** | - During the six months ended June 30, 2025, the Company granted **118,013 performance stock units (PSUs)** with a weighted-average grant-date fair value of **$299.45 per share**, including a relative total shareholder return market component[79](index=79&type=chunk) - The Company has an unfunded, non-qualified deferred compensation plan for non-employee directors, with **3,495 shares** held in a rabbi trust as of June 30, 2025[80](index=80&type=chunk) - In March 2025, the Board authorized a **$125 million share repurchase program** through December 31, 2026, and during Q2 and H1 2025, approximately **93 thousand shares were repurchased for $30.1 million**[81](index=81&type=chunk) [Note 15. Income Taxes](index=18&type=section&id=Note%2015.%20Income%20Taxes) This note details the company's income tax expense and effective tax rates - The effective tax rate was **20.8%** for Q2 2025 and **24.3%** for H1 2025, primarily due to non-deductible charges from convertible debt repurchase, partially offset by windfall tax benefits from stock-based compensation[82](index=82&type=chunk) - For Q2 and H1 2024, the effective tax rate was a benefit of **269.3%** and **126.6%** respectively, largely due to a **$146.9 million (Q2)** and **$153.5 million (H1) tax benefit** from the release of a valuation allowance on deferred tax assets[83](index=83&type=chunk) - The 'One Big Beautiful Bill Act' (OBBBA) enacted in July 2025 includes permanent extension of certain Tax Cuts and Jobs Act provisions, international tax framework modifications, and restoration of favorable tax treatment for domestic R&D expenditures and accelerated deductions for qualified property, with the Company assessing its impact[84](index=84&type=chunk)[115](index=115&type=chunk) [Note 16. Earnings Per Share](index=19&type=section&id=Note%2016.%20Earnings%20Per%20Share) This note details the calculation of basic and diluted earnings per share **Earnings Per Share (in millions, except share and per share data):** | (in millions, except share and per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net income | $ 22.5 | $ 188.6 | $ 57.9 | $ 240.1 | | Add back interest expense, net of tax | $ — | $ 2.5 | $ — | $ 4.9 | | **Net income, diluted** | **$ 22.5** | **$ 191.1** | **$ 57.9** | **$ 245.0** | | Weighted average number of common shares outstanding, basic (in thousands) | 70,389 | 70,062 | 70,330 | 70,010 | | Restricted stock units (in thousands) | 159 | 72 | 195 | 77 | | Stock options (in thousands) | 104 | 140 | 115 | 157 | | Convertible Notes (in thousands) | — | 3,528 | — | 3,528 | | **Weighted average number of common shares outstanding, diluted (in thousands)** | **70,652** | **73,802** | **70,641** | **73,771** | | **Earnings per share: Basic** | **$ 0.32** | **$ 2.69** | **$ 0.82** | **$ 3.43** | | **Earnings per share: Diluted** | **$ 0.32** | **$ 2.59** | **$ 0.82** | **$ 3.32** | **Common Share Equivalents Excluded from Diluted EPS (in thousands):** | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Restricted stock units | 441 | 471 | 431 | 456 | | Stock options | 130 | 286 | 134 | 249 | | Convertible Notes | 1,862 | — | 2,671 | — | | **Total** | **2,433** | **757** | **3,236** | **706** | [Note 17. Accumulated Other Comprehensive Income](index=20&type=section&id=Note%2017.%20Accumulated%20Other%20Comprehensive%20Income) This note details changes in accumulated other comprehensive income (loss), net of tax **Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax (Three Months Ended June 30, 2025, in millions):** | (in millions) | Foreign Currency Translation Adjustment | Unrealized Loss on Securities | Unrealized Gain on Cash Flow Hedges | Accumulated Other Comprehensive (Loss) Income | | :------------------------------------------ | :------------------------------------ | :---------------------------- | :---------------------------------- | :-------------------------------------------- | | Balance at beginning of period | $ (12.0) | $ (0.3) | $ 6.3 | $ (6.0) | | Other comprehensive income (loss) before reclassifications | $ 22.3 | $ — | $ (6.1) | $ 16.3 | | Amounts reclassified to net income | $ — | $ — | $ 5.1 | $ 5.1 | | **Balance at the end of period** | **$ 10.3** | **$ (0.3)** | **$ 5.3** | **$ 15.4** | **Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax (Six Months Ended June 30, 2025, in millions):** | (in millions) | Foreign Currency Translation Adjustment | Unrealized Loss on Securities | Unrealized Gain on Cash Flow Hedges | Accumulated Other Comprehensive (Loss) Income | | :------------------------------------------ | :------------------------------------ | :---------------------------- | :---------------------------------- | :-------------------------------------------- | | Balance at December 31, 2024 | $ (22.3) | $ (0.3) | $ 9.4 | $ (13.2) | | Other comprehensive income (loss) before reclassifications | $ 32.6 | $ — | $ (14.5) | $ 18.1 | | Amounts reclassified to net income | $ — | $ — | $ 10.5 | $ 10.5 | | **Balance at June 30, 2025** | **$ 10.3** | **$ (0.3)** | **$ 5.3** | **$ 15.4** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Insulet's financial condition and operational performance, highlighting key factors affecting revenue, costs, non-operating items, and liquidity, including strategic initiatives, product development, and financial outlook [Overview](index=21&type=section&id=Overview) This section outlines Insulet's mission, product platform, strategic growth initiatives, and market expansion efforts - Insulet's mission is to improve the lives of people with diabetes through its proprietary **Omnipod product platform**, a continuous insulin delivery system[88](index=88&type=chunk) - The Omnipod platform includes **Omnipod 5** (tubeless automated insulin delivery system integrated with CGM, controlled by smartphone/Controller, indicated for Type 1 and Type 2 diabetes in the U.S.) and **Omnipod DASH** (Bluetooth-enabled Pod controlled by PDM)[88](index=88&type=chunk) - The company aims for sustained profitable growth, launching **Omnipod 5 in nine new countries** this year (Italy, Denmark, Finland, Norway, Sweden, Australia, Belgium, Canada, Switzerland) and expanding international teams[89](index=89&type=chunk) - Completed the randomized portion of the **RADIANT study for Omnipod 5 with Libre 2** in France, UK, and Belgium to support pricing and market access[90](index=90&type=chunk) - Expanding market access through direct-to-consumer advertising and growing presence in the U.S. pharmacy channel for simpler, affordable access to **Omnipod 5 and DASH**[90](index=90&type=chunk) - Product development focuses on AID offerings (smartphone integration, CGM choice) and enhancing customer experience, with the **Omnipod 5 app for iPhone compatible with Dexcom's G7 CGM** becoming fully available in the U.S. in June 2025[91](index=91&type=chunk) - The recurring revenue model from disposable Pods (used continuously for up to three days) is expected to drive increasing revenue as the customer base grows, with low or no upfront investment in regions with favorable reimbursement[92](index=92&type=chunk) [Results of Operations](index=22&type=section&id=Results%20of%20Operations) This section details the company's financial performance, including revenue growth across U.S., International, and Drug Delivery segments, changes in cost of revenue, research and development expenses, and selling, general and administrative expenses, also covering non-operating items like interest expense/income, other income/expense, and income tax, concluding with a reconciliation of Adjusted EBITDA [Revenue](index=22&type=section&id=Revenue) This section analyzes revenue growth across U.S., International, and Drug Delivery segments, driven by customer base expansion and product launches **Total Revenue and Growth (in millions):** | (dollars in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Percent Change | Constant Currency Change | | :-------------------- | :------------------------------- | :------------------------------- | :------------- | :----------------------- | | U.S. | $ 453.2 | $ 352.3 | 28.7 % | 28.7 % | | International | $ 185.8 | $ 128.2 | 45.0 % | 38.8 % | | Total Omnipod Products | $ 639.0 | $ 480.4 | 33.0 % | 31.4 % | | Drug Delivery | $ 10.2 | $ 8.1 | 25.7 % | 25.7 % | | **Total** | **$ 649.1** | **$ 488.5** | **32.9 %** | **31.3 %** | | | | | | | | (dollars in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Percent Change | Constant Currency Change | | :-------------------- | :------------------------------- | :------------------------------- | :------------- | :----------------------- | | U.S. | $ 854.9 | $ 670.0 | 27.6 % | 27.6 % | | International | $ 338.1 | $ 243.4 | 38.9 % | 37.5 % | | Total Omnipod Products | $ 1,193.0 | $ 913.4 | 30.6 % | 30.2 % | | Drug Delivery | $ 25.1 | $ 16.8 | 49.2 % | 49.2 % | | **Total** | **$ 1,218.1** | **$ 930.2** | **30.9 %** | **30.6 %** | - Total revenue increased by **32.9% (31.3% constant currency)** for Q2 2025 and **30.9% (30.6% constant currency)** for H1 2025, primarily due to higher sales volume from a growing customer base[93](index=93&type=chunk) - U.S. Omnipod revenue increased by **28.7%** for Q2 2025 and **27.6%** for H1 2025, driven by customer base growth and pharmacy channel expansion[94](index=94&type=chunk)[95](index=95&type=chunk) - International Omnipod revenue increased by **45.0% (38.8% constant currency)** for Q2 2025 and **38.9% (37.5% constant currency)** for H1 2025, due to higher volumes from Omnipod 5 launches and a higher average selling price for Omnipod 5[97](index=97&type=chunk)[98](index=98&type=chunk) - Drug Delivery revenue increased by **25.7%** for Q2 2025 and **49.2%** for H1 2025, driven by increased orders from a partner (Amgen for Neulasta Onpro kit)[100](index=100&type=chunk) - For full year 2025, strong U.S. revenue growth is expected from the recurring revenue model and continued Omnipod 5 volume growth, while International Omnipod revenue is expected to increase due to new customers, Omnipod 5 conversions, and launches in Australia, Canada, and Nordic countries[96](index=96&type=chunk)[99](index=99&type=chunk) [Costs and Expenses](index=23&type=section&id=Costs%20and%20Expenses) This section examines changes in cost of revenue, gross margin, research and development, and selling, general and administrative expenses **Cost of Revenue and Gross Margin (in millions):** | (dollars in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Percent Change | Gross Margin 2025 | Gross Margin 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------- | :---------------- | :---------------- | | Cost of revenue | $ 196.9 | $ 157.6 | 25.0 % | 69.7 % | 67.7 % | | | | | | | | | (dollars in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Percent Change | Gross Margin 2025 | Gross Margin 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------- | :---------------- | :---------------- | | Cost of revenue | $ 356.8 | $ 292.5 | 22.0 % | 70.7 % | 68.6 % | - Gross margin increased by **190 basis points** for Q2 2025 and **210 basis points** for H1 2025, primarily due to a **$13.5 million charge** in the prior year related to Omnipod GO inventory[102](index=102&type=chunk)[103](index=103&type=chunk) - For full year 2025, gross margin is expected to be approximately **71.0%**, driven by improved manufacturing efficiencies, pricing benefits, and volume, partially offset by the negative impact of tariffs[104](index=104&type=chunk) **Research and Development Expenses (in millions):** | (dollars in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Percent Change | % of Revenue 2025 | % of Revenue 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------- | :---------------- | :---------------- | | R&D expenses | $ 73.4 | $ 53.9 | 36.2 % | 11.3 % | 11.0 % | | | | | | | | | (dollars in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Percent Change | % of Revenue 2025 | % of Revenue 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------- | :---------------- | :---------------- | | R&D expenses | $ 133.0 | $ 104.1 | 27.8 % | 10.9 % | 11.2 % | - R&D expenses increased due to year-over-year headcount additions for Omnipod and pipeline products, and higher consulting costs for clinical trials and next-generation products[105](index=105&type=chunk) - R&D spending is expected to increase in 2025 as the company continues to invest in innovation and clinical pipeline[106](index=106&type=chunk) **Selling, General and Administrative Expenses (in millions):** | (dollars in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Percent Change | % of Revenue 2025 | % of Revenue 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------- | :---------------- | :---------------- | | SG&A expenses | $ 257.7 | $ 222.5 | 15.8 % | 39.7 % | 45.5 % | | | | | | | | | (dollars in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Percent Change | % of Revenue 2025 | % of Revenue 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------- | :---------------- | :---------------- | | SG&A expenses | $ 518.4 | $ 422.2 | 22.8 % | 42.6 % | 45.4 % | - SG&A expenses increased primarily due to headcount additions for customer product support, business growth, and Omnipod 5 support, partially offset by the reversal of stock-based compensation expense from the former CEO's departure[107](index=107&type=chunk) - SG&A expenses are expected to increase in 2025 due to investments in operating structure, headcount, and international expansion for Omnipod platform and Omnipod 5 launches[108](index=108&type=chunk) [Non-Operating Items](index=24&type=section&id=Non-Operating%20Items) This section details changes in interest expense and income, other income/expense, and the effective tax rate, including impacts from debt transactions and tax legislation - Interest expense increased to **$19.6 million** for Q2 2025 (from **$11.0 million** Q2 2024) and **$28.8 million** for H1 2025 (from **$21.7 million** H1 2024), primarily due to the issuance of senior unsecured notes and lower gains on new interest rate swaps[109](index=109&type=chunk) - Interest income increased to **$10.1 million** for Q2 2025 (from **$9.3 million** Q2 2024) and **$20.3 million** for H1 2025 (from **$18.7 million** H1 2024), driven by higher average cash balances, partially offset by lower average interest rates[110](index=110&type=chunk) - Net interest expense for full year 2025 is expected to increase by approximately **$30 million** compared to 2024 due to debt transactions and replacement of interest rate swaps[111](index=111&type=chunk) - Other income, net was **$1.3 million** for Q2 2025 (vs other expense, net of **$0.9 million** Q2 2024), and other expense, net was **$1.8 million** for H1 2025 (vs **$2.5 million** H1 2024), including a **$2.8 million impairment** on an equity investment[112](index=112&type=chunk) - Effective tax rate was **20.8%** for Q2 2025 and **24.3%** for H1 2025, a significant increase from a tax benefit of **269.3%** and **126.6%** for the same periods in 2024, primarily due to the release of a valuation allowance against deferred tax assets in Q2 2024[113](index=113&type=chunk) - The global minimum tax legislation (OECD) did not impact H1 2025 financial statements, but the company is evaluating its potential impact on future periods, and the 'One Big Beautiful Bill Act' (OBBBA) enacted in July 2025, which includes tax changes like immediate expensing for domestic R&D, is being assessed for its impact on consolidated financial statements[114](index=114&type=chunk)[115](index=115&type=chunk) [Adjusted EBITDA](index=25&type=section&id=Adjusted%20EBITDA) This section provides a reconciliation of Adjusted EBITDA, a non-GAAP measure, highlighting key adjustments from net income **Adjusted EBITDA Reconciliation (in millions):** | (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net income | $ 22.5 | $ 188.6 | $ 57.9 | $ 240.1 | | Interest expense, net | $ 9.5 | $ 1.7 | $ 8.5 | $ 3.0 | | Income tax expense (benefit) | $ 5.9 | $ (137.5) | $ 18.6 | $ (134.1) | | Depreciation and amortization | $ 22.3 | $ 19.3 | $ 44.0 | $ 38.0 | | Stock-based compensation | $ 7.5 | $ 17.0 | $ 25.7 | $ 31.2 | | CEO transition | $ 5.4 | $ — | $ 5.4 | $ — | | Loss on extinguishment of debt | $ 84.4 | $ — | $ 123.9 | $ — | | Loss on investments | $ — | $ 1.8 | $ 7.5 | $ 1.8 | | **Adjusted EBITDA** | **$ 157.5** | **$ 90.9** | **$ 291.5** | **$ 180.0** | [Non-GAAP Financial Measures](index=25&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and explains the use of non-GAAP financial measures such as constant currency revenue growth, Adjusted EBITDA, and free cash flow - **Constant currency revenue growth** is a non-GAAP measure used to evaluate operating results by adjusting for currency exchange rate fluctuations, and is a management incentive compensation metric[118](index=118&type=chunk) - **Adjusted EBITDA** is a non-GAAP measure representing net income adjusted for interest, taxes, depreciation, amortization, stock-based compensation, and other significant non-recurring items, used by management and investors to assess comparative performance[119](index=119&type=chunk) - **Free cash flow**, a non-GAAP measure, is calculated as net cash provided by operating activities less capital expenditures, used by management to evaluate operating results[120](index=120&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's financial position, including cash, debt, and equity, and its ability to meet future obligations, detailing recent debt transactions, share repurchase activities, and a summary of cash flow movements [Contractual Obligations](index=26&type=section&id=Contractual%20Obligations) This section outlines the company's commitments, including significant purchase obligations, and assesses liquidity for future requirements - The Company is committed to purchasing approximately **$50 million** in semiconductor chips from NXP USA, Inc. as of June 30, 2025[122](index=122&type=chunk) - Management believes current liquidity will be sufficient to meet projected operating, investing, and debt service requirements for at least the next twelve months[123](index=123&type=chunk) [Capitalization](index=26&type=section&id=Capitalization) This section presents key financial condition and liquidity measures, including cash, debt, equity, and debt-to-capital ratios **Key Financial Condition and Liquidity Measures (in millions):** | (dollars in millions) | June 30, 2025 | December 31, 2024 | | :-------------------------- | :-------------- | :---------------- | | Cash and cash equivalents | $ 1,121.6 | $ 953.4 | | Current portion of long-term debt | $ 460.7 | $ 83.8 | | Long-term debt, net | $ 939.0 | $ 1,296.1 | | Total debt, net | $ 1,399.7 | $ 1,379.8 | | Total stockholders' equity | $ 1,462.9 | $ 1,211.6 | | Debt-to-total capital ratio | 49 % | 53 % | | Net debt-to-total capital ratio | 10 % | 16 % | [Convertible Debt](index=26&type=section&id=Convertible%20Debt) This section details the repurchase and redemption of convertible senior notes, including principal amounts and conversion terms - The Company repurchased **$420 million** in principal of Convertible Senior Notes in March and April 2025[125](index=125&type=chunk) **Outstanding Convertible Notes (as of June 30, 2025):** | Issuance Date | Coupon | Principal Outstanding (in millions) | Conversion Rate (per $1,000 face value) | Conversion Price per Share | | :------------ | :----- | :-------------------------------- | :-------------------------------------- | :------------------------- | | September 2019 | 0.375% | $ 380.1 | 4.4105 | $ 226.73 | - In June 2025, a redemption notice was issued for the remaining **$380.1 million** outstanding Convertible Notes, with settlement expected in August 2025 using cash and proceeds from capped call options[126](index=126&type=chunk) [Credit Agreement](index=26&type=section&id=Credit%20Agreement) This section describes the company's revolving credit facility and term loan, including borrowing capacity, maturity, and customary covenants - The Company has a **$500 million senior secured revolving credit facility** expiring in 2030, with no outstanding amount as of June 30, 2025[127](index=127&type=chunk) - The Revolving Credit Facility and Term Loan B contain customary covenants, including a specified leverage ratio for the Revolving Credit Facility and restrictions on additional indebtedness, asset dispositions, and liens for Term Loan B[127](index=127&type=chunk) [Senior Unsecured Notes](index=26&type=section&id=Senior%20Unsecured%20Notes) This section outlines the issuance of senior unsecured notes, their principal amount, interest rate, maturity, and associated covenants - In March 2025, the Company issued **$450 million** aggregate principal amount of **6.5% senior unsecured notes** due April 2033[128](index=128&type=chunk) - These notes include leverage and fixed charge coverage ratio covenants, measured upon future debt incurrence, and other customary covenants not considered restrictive to operations[128](index=128&type=chunk) [Share Repurchase Program](index=26&type=section&id=Share%20Repurchase%20Program) This section details the board-authorized share repurchase program, including the amount authorized and shares repurchased - In March 2025, the Board authorized a program to repurchase up to **$125 million of common stock** through December 31, 2026, to offset dilution from stock-based compensation[129](index=129&type=chunk) - During Q2 and H1 2025, approximately **93 thousand shares were repurchased for $30.1 million** under this program[129](index=129&type=chunk) [Summary of Cash Flows](index=27&type=section&id=Summary%20of%20Cash%20Flows) This section provides a summary of cash flow movements from operating, investing, and financing activities, including restatement details - The Condensed Consolidated Statement of Cash Flow for H1 2024 was **restated to correct a presentation error** affecting operating and financing activities, with no impact on net cash increase or net income[130](index=130&type=chunk) **Summary of Cash Flows (in millions):** | (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 (Restated) | | :------------------------------------------ | :------------------------------- | :---------------------------------------- | | Cash provided by (used in): Operating activities | $ 260.3 | $ 174.4 | | Investing activities | $ (38.9) | $ (48.9) | | Financing activities | $ (65.8) | $ (5.3) | | Effect of exchange rate changes on cash and cash equivalents | $ 12.7 | $ (3.4) | | **Net increase in cash and cash equivalents** | **$ 168.2** | **$ 116.8** | [Operating Activities](index=27&type=section&id=Operating%20Activities) This section analyzes net cash provided by operating activities, focusing on net income adjustments and working capital changes - Net cash provided by operating activities was **$260.3 million** for H1 2025, primarily from net income adjusted for non-cash items, partially offset by an **$11.9 million working capital outflow**[132](index=132&type=chunk) - Working capital outflow was driven by increases in accounts receivable (**$66.9 million**) and prepaid expenses/other assets (**$31.6 million**), partially offset by increases in accounts payable (**$72.6 million**) and accrued expenses/other liabilities (**$18.7 million**)[132](index=132&type=chunk) [Investing Activities](index=27&type=section&id=Investing%20Activities) This section details net cash used in investing activities, including capital expenditures and investments in developed software - Net cash used in investing activities was **$38.9 million** for H1 2025, down from **$48.9 million** for H1 2024[133](index=133&type=chunk) - Capital expenditures decreased to **$30.9 million** for H1 2025 (from **$44.6 million** H1 2024), primarily due to lower machinery/equipment purchases for the Malaysia manufacturing facility[134](index=134&type=chunk) - Capital expenditures are expected to increase in 2025 for global expansion and manufacturing/supply chain optimization[134](index=134&type=chunk) - Investments in developed software increased to **$8.0 million** for H1 2025 (from **$4.3 million** H1 2024), mainly for cloud-based capabilities[135](index=135&type=chunk) [Financing Activities](index=27&type=section&id=Financing%20Activities) This section examines net cash used in financing activities, including debt transactions, stock option exercises, and share repurchases - Net cash used in financing activities was **$65.8 million** for H1 2025, compared to **$5.3 million** for H1 2024[136](index=136&type=chunk) - In H1 2025, the Company received **$440.7 million** from Senior Unsecured Notes and **$75.7 million** from capped call options, used to repurchase **$541.5 million** of Convertible Notes[137](index=137&type=chunk) - Proceeds from option exercises increased to **$12.6 million** for H1 2025 (from **$6.9 million** H1 2024) due to more exercises driven by stock price increase[139](index=139&type=chunk) - Payments for taxes related to net restricted and performance stock unit settlements increased to **$22.9 million** for H1 2025 (from **$6.1 million** H1 2024) due to higher fair market value of vested units[140](index=140&type=chunk) - **$30.1 million** was paid to repurchase common shares in H1 2025 to offset stock-based compensation dilution[141](index=141&type=chunk) [Free Cash Flow](index=29&type=section&id=Free%20Cash%20Flow) This section reconciles and analyzes free cash flow, a non-GAAP measure, highlighting its components and changes - Free cash flow increased by **$99.6 million** to **$229.4 million** for H1 2025 (from **$129.8 million** H1 2024), primarily due to increased operating income adjusted for depreciation, amortization, and stock-based compensation[142](index=142&type=chunk) **Free Cash Flow Reconciliation (in millions):** | (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 (Restated) | | :-------------------------------- | :------------------------------- | :---------------------------------------- | | Net cash provided by operating activities | $ 260.3 | $ 174.4 | | Capital expenditures | $ (30.9) | $ (44.6) | | **Free cash flow** | **$ 229.4** | **$ 129.8** | [Critical Accounting Policies and Estimates](index=29&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section highlights key management judgments and assumptions in financial reporting, including revenue recognition and income taxes - The preparation of financial statements requires management judgment and assumptions, particularly for revenue recognition, income taxes, product warranty, and inventory reserves[144](index=144&type=chunk)[145](index=145&type=chunk) - No significant changes to critical accounting policies or underlying assumptions from the Annual Report on Form 10-K for the year ended December 31, 2024[145](index=145&type=chunk) [Accounting Standards Issued and Not Yet Adopted](index=29&type=section&id=Accounting%20Standards%20Issued%20and%20Not%20Yet%20Adopted) This section outlines new accounting standards, including those for income tax disclosures and expense disaggregation, and their expected impact - ASU 2023-09 (Income Taxes) requires incremental annual income tax disclosures, to be adopted for the **2025 annual filing**[146](index=146&type=chunk) - ASU 2024-03 (Income Statement—Expense Disaggregation) requires disaggregated expense disclosures, to be adopted for the **2027 annual filing**[147](index=147&type=chunk) - ASU 2024-04 (Debt—Convertible Debt) clarifies induced conversion accounting for convertible debt but is not expected to impact the Company's financial statements due to the redemption of remaining convertible debt prior to the January 2026 adoption date[148](index=148&type=chunk) [FORWARD-LOOKING STATEMENTS](index=29&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section cautions that forward-looking statements are subject to risks and uncertainties, and the company disclaims any obligation to update them - The report contains forward-looking statements based on current expectations and projections, identified by terms like 'may,' 'will,' 'expects,' 'plans,' etc[149](index=149&type=chunk) - These statements are subject to risks, uncertainties, and assumptions, including those discussed in the 'Risk Factors' section of the Annual Report on Form 10-K and this quarterly report[150](index=150&type=chunk) - The company expressly disclaims any obligation to update these statements, except as required by law[150](index=150&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to the company's Annual Report on Form 10-K for a detailed discussion of interest rate, market price sensitive instruments, and foreign currency exchange risk - For disclosures about interest rate, market price sensitive instruments, and foreign currency exchange risk, refer to 'Part II. Item 7A. Quantitative and Qualitative Disclosures About Market Risk' in the Annual Report on Form 10-K for the year ended December 31, 2024[151](index=151&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures as of June 30, 2025, and states that there were no material changes in internal control over financial reporting during the quarter - Management, including the CEO and CFO, evaluated the effectiveness of disclosure controls and procedures as of June 30, 2025, and concluded they were **effective**[154](index=154&type=chunk) - There were no changes in internal control over financial reporting during the three months ended June 30, 2025, that materially affected or are reasonably likely to materially affect it[155](index=155&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 12 of the condensed consolidated financial statements for information regarding material pending legal proceedings - Information regarding material pending legal proceedings is provided in Note 12 to the condensed consolidated financial statements[156](index=156&type=chunk) [Item 1A. Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) This section directs readers to the Annual Report on Form 10-K for a discussion of business risk factors, noting no material changes since that filing - For a discussion of business, financial condition, results of operations, and cash flow risk factors, refer to the 'Risk Factors' section in the Annual Report on Form 10-K for the year ended December 31, 2024[157](index=157&type=chunk) - There have been no material changes to the risk factors disclosed in the aforementioned Annual Report[157](index=157&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section provides details on the company's common stock repurchases during the second quarter of 2025 under a previously authorized program **Issuer Purchases of Equity Securities (Three Months Ended June 30, 2025):** | Fiscal Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as a Part of Publicly Announced Program | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Program (in millions) | | :-------------------- | :------------------------------- | :--------------------------- | :----------------------------------------------------------------------- | :--------------------------------------------------------------------------------------- | | 4/1/2025 - 4/30/2025 | $ — | $ — | $ — | $ 125.0 | | 5/1/2025-5/31/2025 | $ 69,700 | $ 324.32 | $ 69,700 | $ 102.4 | | 6/1/2025-6/30/2025 | $ 23,332 | $ 320.68 | $ 23,332 | $ 94.9 | - In March 2025, the Board authorized a program to repurchase up to **$125 million of common stock** through December 31, 2026[158](index=158&type=chunk) [Item 3. Defaults Upon Senior Securities](index=33&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities - There were no defaults upon senior securities[159](index=159&type=chunk) [Item 4. Mine Safety Disclosures](index=33&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that mine safety disclosures are not applicable to the company - Mine safety disclosures are not applicable[160](index=160&type=chunk) [Item 5. Other Information](index=33&type=section&id=Item%205.%20Other%20Information) This section provides information on Rule 10b5-1 t

Core Insights - Insulet Corporation (PODD) reported second-quarter adjusted earnings of $1.17 per share, surpassing the consensus estimate of 92 cents [1] - The company achieved sales of $649.1 million, reflecting a year-over-year increase of 32.9% (31.3% in constant currency), exceeding the consensus of $612.22 million [1] Revenue Breakdown - Total Omnipod revenue reached $639 million, up 33.0% year-over-year, or 31.4% in constant currency [2] - U.S. Omnipod revenue was $453.2 million, an increase of 28.7%, while International Omnipod revenue was $185.8 million, up 45% (38.8% in constant currency) [2] - Drug Delivery revenue amounted to $10.2 million [2] Profitability Metrics - Gross margin improved to 69.7%, up 190 basis points from the prior year [3] - Operating income was $121.1 million, representing 18.7% of revenue, an increase of 750 basis points year-over-year [3] - Adjusted EBITDA reached $157.5 million, or 24.3% of revenue, up 570 basis points from the previous year [3] Future Guidance - For 2025, Insulet expects revenue growth between 24% and 27%, an increase from the prior range of 19%-22% [4] - The company raised its fiscal 2025 sales guidance to $2.57 billion-$2.63 billion, compared to the previous range of $2.47 billion-$2.53 billion [4] - Omnipod sales are projected to increase by 25%-28%, up from the previous estimate of 20%-23% [4] Third Quarter Forecast - Insulet forecasts third-quarter revenue growth between 22%-25%, with U.S. Omnipod sales expected to rise by 21%-24% and International Omnipod sales by 33%-36% [5] - Projected third-quarter sales are estimated at $663.56 million-$679.88 million, exceeding the consensus of $645.86 million [5] Market Adoption - Over 25,000 healthcare providers are now prescribing Omnipod 5 in the U.S., marking a 20% increase from the previous year [6] - Insulet's stock price increased by 4.55% to $289.91 at the time of publication [6]

Core Insights - Insulet (PODD) reported quarterly earnings of $1.17 per share, exceeding the Zacks Consensus Estimate of $0.93 per share, and showing a significant increase from $0.55 per share a year ago, resulting in an earnings surprise of +25.81% [1] - The company achieved revenues of $649.1 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.46%, and up from $488.5 million year-over-year [2] Financial Performance - Insulet has consistently surpassed consensus EPS estimates over the last four quarters, with the latest earnings surprise being +25.93% compared to the previous quarter's expectation of $0.81 per share [1][2] - The current consensus EPS estimate for the upcoming quarter is $1.12, with projected revenues of $644.04 million, and for the current fiscal year, the estimate is $4.33 on $2.53 billion in revenues [7] Market Position - Insulet shares have increased by approximately 6.2% since the beginning of the year, while the S&P 500 has gained 7.9%, indicating a slight underperformance relative to the broader market [3] - The Zacks Industry Rank places the Medical - Products sector in the bottom 37% of over 250 Zacks industries, suggesting potential challenges for stocks in this category [8] Future Outlook - The sustainability of Insulet's stock price movement will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The estimate revisions trend for Insulet was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6]

Financial Data and Key Metrics Changes - The company reported revenue of $649 million for the quarter, representing a 31% year-over-year growth, surpassing the $600 million mark for the first time [8][30] - Adjusted operating margin expanded to 17.8%, and adjusted EBITDA margin was 24.3% for the quarter [35][36] - The company raised its full-year revenue growth guidance to a range of 24% to 27% [40][44] Business Line Data and Key Metrics Changes - U.S. revenue grew by 28.7%, driven by strong demand for Omnipod five, with new customer starts increasing year-over-year and sequentially [32][29] - International revenue grew by 38.8%, primarily due to demand for Omnipod five and customer base growth [33][34] - Over 85% of U.S. new customer starts came from multiple daily injections (MDI), with over 30% being Type two patients [29][30] Market Data and Key Metrics Changes - The international business accounted for approximately 30% of total revenues, with significant growth in the UK, France, and Germany [22][34] - The company has expanded Omnipod five to 14 markets, driving strong adoption and positive price mix realization [53][72] - The U.S. market remains the largest customer base, with over 25,000 healthcare providers prescribing Omnipod five, reflecting a 20% increase from the previous year [12][12] Company Strategy and Development Direction - The company aims to enhance commercial capabilities, build brand power globally, drive operational and financial scale, and accelerate innovation [25][27] - Focus on expanding the Type two market while maintaining leadership in Type one, leveraging strong clinical evidence and market access [21][57] - Continued investment in manufacturing capabilities and automation to meet growing global demand [14][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's unique strengths and future growth potential, citing a large underpenetrated market and strong brand engagement [18][28] - The company is committed to driving at least 100 basis points of adjusted operating margin expansion annually [45] - Management highlighted the importance of integrating new technologies and maintaining strong relationships with healthcare providers to drive adoption [24][90] Other Important Information - The company ended the quarter with $1.1 billion in cash and $500 million available under its credit facility [36] - The company repurchased 93,000 shares for approximately $30 million under its share repurchase authorization [38] - A leadership update was announced, with Claire Trachman joining as the new Vice President of Investor Relations [48] Q&A Session Summary Question: Drivers of upside in U.S. and international markets - Management noted strong adoption in Type one and Type two markets, with significant growth in new customer starts and effective integration of clinical evidence [50][51] Question: Acceleration in Type two new starts - The company highlighted strong clinical evidence, market access, and ease of use as key drivers for the acceleration in Type two new starts [56][58] Question: Guidance framework and expectations - Management indicated that guidance reflects strong business fundamentals and momentum, with a focus on realistic targets [61][63] Question: International expansion strategy - The company is focused on deepening penetration in existing markets while exploring new markets in a financially disciplined manner [70][72] Question: Competitive conversions and MDI growth - Management confirmed that both MDI and competitive conversions have accelerated, driven by impactful innovation and strong market execution [105][108] Question: Go-to-market strategy for primary care vs. endocrinologists - The company is adapting its strategy to engage primary care physicians, leveraging the simplicity of its technology to drive adoption among Type two patients [110][112]

Financial Data and Key Metrics Changes - The company reported revenue of $649 million for Q2 2025, representing a 31% year-over-year growth, surpassing the $600 million mark for the first time [6][28] - Adjusted operating margin expanded to 17.8%, and adjusted EBITDA margin was 24.3% for the quarter [32] - Gross margin was reported at 69.7%, with a year-to-date gross margin of 70.7% [32][39] Business Line Data and Key Metrics Changes - U.S. revenue grew by 28.7%, driven by strong demand for Omnipod five, with over 85% of new customer starts coming from multiple daily injections (MDI) and over 30% from Type two [27][29] - International revenue grew by 38.8%, primarily due to demand for Omnipod five and customer base growth, with significant growth in the UK, Germany, and France [30][31] Market Data and Key Metrics Changes - The international business accounted for approximately 30% of total revenues, with nearly 40% year-over-year growth [19][30] - The U.S. market continues to see strong adoption of Omnipod five, with over 25,000 healthcare providers prescribing it, marking a 20% increase from the previous year [10][19] Company Strategy and Development Direction - The company aims to deepen its market penetration, enhance commercial capabilities, and drive innovation in technology and customer experience [22][24] - Focus on expanding the Type two market, leveraging strong clinical evidence and market access to drive adoption [18][53] - Plans to invest in market development capabilities and commercial excellence to accelerate growth [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's unique strengths, including a strong brand, engaged customers, and differentiated technology [15][25] - The company anticipates continued growth in both U.S. and international markets, supported by strong demand trends and consistent patient conversions from MDI [37][39] Other Important Information - The company has extinguished $420 million of convertible notes due in 2026 and initiated the redemption of the remaining $380 million [34] - A new Vice President of Investor Relations will join the company, reflecting the strengthening of the leadership team [43] Q&A Session Summary Question: Drivers of upside in U.S. and international markets - Management highlighted strong adoption in Type one and Type two markets, with significant growth in new customer starts and strong clinical outcomes driving demand [46][50] Question: Acceleration in Type two new starts - The acceleration is attributed to strong clinical evidence, market access, and the expansion of the field force to promote the product [52][54] Question: Guidance framework and expectations - Management indicated that guidance is set with the intent to achieve it, reflecting strong business fundamentals and momentum [58][60] Question: International expansion strategy - The company plans to deepen penetration in existing markets while exploring new markets for expansion, ensuring a financially disciplined approach [66][68] Question: Impact of Medicare proposals on the business - Management supports increased access to technology and believes their business model positions them well against potential changes in the DME channel [80][82] Question: Type two indication and competition - The Type two indication is helping to build the market, with strong clinical outcomes resonating with prescribers and differentiating the product from competitors [88][89] Question: Primary care physician engagement - The company is seeing early traction with primary care physicians due to the simplicity of the technology and strong clinical evidence [110][112]

Company Overview and Market Position - Insulet is a global leader in diabetes management with $2.1 billion in 2024 revenue[21] - The company has approximately 500,000 active customers globally[21] - Omnipod is the 1 AID system requested and prescribed in the U S [21] - Omnipod 5 is the first AID system FDA-cleared for both type 1 and type 2 diabetes in the U S [21] Financial Performance and Growth - The company is growing revenue beyond $2.5 billion[24] - The company anticipates approximately 24%-27% constant currency revenue growth for full year 2025[25] - The company is experiencing rapid expansion of adjusted operating margin, with an anticipated expansion of approximately 1,000 bps to reach 17%-17 5%[24, 25] Product Innovation and Clinical Outcomes - Omnipod 5 is the first and only tubeless, waterproof AID in the U S [27] - Omnipod 5 leads to a 20%-23% increase in time in range for adults with type 1 and type 2 diabetes, respectively[27] - Strong SECURE-T2D clinical results show a 0 8% reduction in mean A1c in 13 weeks[29] Market Opportunity and Expansion - The total addressable market is approximately 14 million patients[40] - The company is expanding its market presence outside the U S [50] - The company is building the power of its Omnipod 5 brand globally[57]

[Executive Summary & Highlights](index=1&type=section&id=Executive_Summary_Highlights) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second_Quarter_2025_Financial_Highlights) Insulet reported robust second-quarter 2025 financial results, with total revenue increasing 32.9% year-over-year to $649.1 million, surpassing guidance, driven by strong Omnipod revenue growth and international expansion, while GAAP net income decreased due to prior-year tax benefits and current-year debt extinguishment losses Financial Performance Summary | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | YoY Change (%) | Constant Currency YoY Change (%) | | :----------------------- | :--------------------- | :--------------------- | :------------- | :------------------------------- | | **Revenue** | | | | | | Total Revenue | $649.1 | $488.5 | 32.9% | 31.3% | | Total Omnipod Revenue | $639.0 | $480.4 | 33.0% | 31.4% | | U.S. Omnipod Revenue | $453.2 | $352.3 | 28.7% | 28.7% | | International Omnipod Revenue | $185.8 | $128.2 | 45.0% | 38.8% | | Drug Delivery Revenue | $10.2 | $8.1 | 25.7% | 25.7% | | **Profitability** | | | | | | Gross Margin | 69.7% | 67.8% | +190 bps | | | Operating Income | $121.1 | $54.5 | +750 bps (as % of revenue) | | | Adjusted Operating Income | $115.8 | N/A | +670 bps (as % of revenue) | | | Net Income | $22.5 | $188.6 | -88.1% | | | Adjusted Net Income | $83.7 | $38.3 | +118.5% | | | Diluted EPS | $0.32 | $2.59 | -87.6% | | | Adjusted Diluted EPS | $1.17 | $0.55 | +112.7% | | | Adjusted EBITDA | $157.5 | $90.9 | +570 bps (as % of revenue) | | [Recent Strategic Highlights](index=1&type=section&id=Recent_Strategic_Highlights) Insulet advanced its Omnipod 5 platform with expanded compatibility and international availability, launched a unique marketing collaboration, presented strong clinical data, and undertook significant financial restructuring - Omnipod 5 App for iPhone compatible with Dexcom's G7 Continuous Glucose Monitor (CGM) sensor fully available in the U.S[3](index=3&type=chunk) - Integrated Omnipod 5 with Dexcom's G7 CGM sensor in Germany and Abbott's FreeStyle Libre 2 Plus CGM sensor in Australia[3](index=3&type=chunk) - Collaborated with Marvel to launch comic book hero, Dyasonic, who lives with type 1 diabetes[3](index=3&type=chunk) - Presented strong clinical data at the American Diabetes Association (ADA) Scientific Session from SECURE-T2D and RADIANT trials, showing improved glycemic outcomes for type 2 diabetes patients using Omnipod 5[3](index=3&type=chunk) - Initiated redemption for remaining **$380 million** principal of convertible notes and refinanced Term Loan B[3](index=3&type=chunk) - Advanced sustainability efforts, detailed in Insulet's 2024 Sustainability Report[3](index=3&type=chunk) [CEO Commentary](index=2&type=section&id=CEO_Commentary) CEO Ashley McEvoy highlighted robust second-quarter results, attributing success to strong team performance and the compelling impact of Omnipod 5, expressing confidence in future growth and value creation for stakeholders - CEO Ashley McEvoy stated, "We delivered robust second quarter results, reflecting our team's strong performance and the compelling impact and appeal of Omnipod 5 for people living with diabetes" She expressed confidence in the company's ability to grow and create value for all stakeholders[4](index=4&type=chunk) [Financial Outlook](index=2&type=section&id=Financial_Outlook) [2025 Guidance](index=2&type=section&id=2025_Guidance) Insulet raised its full-year 2025 revenue guidance to 24%-27% constant currency growth (up from 19%-22%) and increased its adjusted operating margin guidance to 17.0%-17.5% (up from ~16.5%), with Q3 2025 revenue guidance set at 22%-25% constant currency growth Full-Year and Q3 2025 Guidance | Metric (Constant Currency) | Q3 2025 Guidance (as of 8/7/2025) | FY 2025 Guidance (as of 8/7/2025) | FY 2025 Prior Guidance (as of 5/8/2025) | | :------------------------- | :--------------------------------- | :-------------------------------- | :-------------------------------------- | | U.S. Omnipod Revenue Growth | 21% - 24% | 22% - 25% | 18% - 21% | | International Omnipod Revenue Growth | 33% - 36% | 34% - 37% | 27% - 30% | | Total Omnipod Revenue Growth | 24% - 27% | 25% - 28% | 20% - 23% | | Drug Delivery Revenue Growth | (80)% - (75)% | (30)% - (25)% | (35)% - (25)% | | Total Revenue Growth | 22% - 25% | 24% - 27% | 19% - 22% | | Gross Margin | N/A | ~71.0% | ~71.0% | | Adjusted Operating Margin | N/A | 17.0% - 17.5% | ~16.5% | [Company Information](index=2&type=section&id=Company_Information) [About Insulet Corporation](index=2&type=section&id=About_Insulet_Corporation) Insulet Corporation is a Massachusetts-headquartered medical device company specializing in tubeless insulin pump technology, primarily through its Omnipod product platform, offering automated blood sugar management and adapting its technology for non-insulin subcutaneous drug delivery - Insulet Corporation (NASDAQ: PODD) is a global leader in tubeless insulin pump technology with its Omnipod brand of products[1](index=1&type=chunk) - The Omnipod Insulin Management System provides a unique alternative to traditional insulin delivery methods with a simple, wearable, tubeless disposable Pod for up to three days of non-stop insulin delivery[1](index=1&type=chunk) - The Omnipod 5 Automated Insulin Delivery System integrates with a continuous glucose monitor to manage blood sugar, controllable by a compatible smartphone or Omnipod 5 Controller[7](index=7&type=chunk) - Insulet also leverages its Omnipod technology platform for the delivery of non-insulin subcutaneous drugs across other therapeutic areas[7](index=7&type=chunk) [Conference Call Details](index=2&type=section&id=Conference_Call_Details) Insulet will host a conference call on August 7, 2025, at 8:00 a.m. Eastern Time to discuss its financial results and outlook, with access available via the Investor Relations section of the company's website or by dialing in - Date: **August 7, 2025**[6](index=6&type=chunk) - Time: **8:00 a.m. (Eastern Time)**[6](index=6&type=chunk) - Access: Live webcast on investors.insulet.com ("Events and Presentations") or by phone (domestic: (888) 770-7129, international: (929) 203-2109, passcode: 5904836)[6](index=6&type=chunk) [Investor Relations & Media Contacts](index=5&type=section&id=Investor_Relations_Media_Contacts) Contact information for Insulet's Investor Relations and Corporate Communications departments is provided for inquiries - Investor Relations: June Lazaroff, Senior Director, Investor Relations, (978) 600-7718, jlazaroff@insulet.com[17](index=17&type=chunk) - Media: Angela Geryak Wiczek, Senior Director, Corporate Communications, (978) 932-0611, awiczek@insulet.com[17](index=17&type=chunk) [Non-GAAP Financial Measures](index=2&type=section&id=Non_GAAP_Financial_Measures) [Explanation of Non-GAAP Measures](index=3&type=section&id=Explanation_of_Non_GAAP_Measures) Insulet utilizes non-GAAP financial measures as supplemental tools for management to assess performance and for investors to compare results across periods, emphasizing that these measures should not replace GAAP results and may differ from those used by other entities - Management uses non-GAAP financial measures as supplemental measures in assessing the Company's performance[9](index=9&type=chunk) - These measures are helpful to investors and other interested parties as measures of comparative performance from period to period and are commonly used in determining business value[9](index=9&type=chunk) - Non-GAAP financial measures should be considered supplemental to, and not a substitute for, the Company's reported financial results prepared in accordance with GAAP[10](index=10&type=chunk) - The Company's definition of these non-GAAP measures may differ from similarly titled measures used by others, and investors are encouraged to review consolidated financial statements in their entirety[10](index=10&type=chunk) [Non-GAAP Definitions](index=3&type=section&id=Non_GAAP_Definitions) The report defines several non-GAAP financial measures, including constant currency revenue growth, adjusted gross margin/operating income/net income/diluted EPS, adjusted EBITDA, and free cash flow, each excluding specific non-recurring or non-cash items - Constant currency revenue growth: Represents the change in revenue between current and prior year periods using the exchange rate in effect during the applicable prior year period[12](index=12&type=chunk) - Adjusted gross margin, adjusted operating income, adjusted net income, and adjusted diluted earnings per share: Exclude the impact of certain significant transactions or events, such as legal settlements, medical device corrections, gains (losses) on investments, and loss on extinguishment of debt[12](index=12&type=chunk) - Adjusted EBITDA: Represents net income plus net interest expense, income tax expense, depreciation and amortization, stock-based compensation expense, and other significant transactions or events affecting period-to-period comparability[12](index=12&type=chunk) - Free cash flow: Defined as net cash provided by operating activities less capital expenditures[12](index=12&type=chunk) [Forward-Looking Statements & Risks](index=3&type=section&id=Forward_Looking_Statements_Risks) [Forward-Looking Statement Disclaimer](index=3&type=section&id=Forward_Looking_Statement_Disclaimer) The press release contains forward-looking statements about future performance, product success, and regulatory approvals, which are based on management's current beliefs and assumptions, but are not guarantees, and actual results could differ materially due to underlying risks and uncertainties - This press release contains forward-looking statements regarding future operating and financial performance, product success and efficacy, the outcome of studies and trials, and the approval of products by regulatory bodies[11](index=11&type=chunk) - These statements are based on management's current beliefs, assumptions, and estimates and are not intended to be a guarantee of future events or performance[11](index=11&type=chunk) - Actual results could vary materially from expectations if management's underlying assumptions turn out to be incorrect, or if certain risks or uncertainties materialize[13](index=13&type=chunk) [Risks and Uncertainties](index=4&type=section&id=Risks_and_Uncertainties) Insulet faces various risks, including dependence on its product platform, intense competition, challenges in maintaining sales and customer base, reimbursement issues, product development hurdles, intellectual property protection, macroeconomic and geopolitical uncertainties, international business risks, manufacturing concentration, supply chain disruptions, regulatory compliance, use of AI tools, and potential recalls or cyberattacks - Dependence on a principal product platform; impact of competitive products, technological change, and product innovation[14](index=14&type=chunk) - Ability to maintain an effective sales force, expand distribution network, and grow customer base; securing and retaining adequate coverage or reimbursement from third-party payors[14](index=14&type=chunk) - Ability to design, develop, manufacture, and commercialize future products; unfavorable results of clinical studies or negative publications[14](index=14&type=chunk) - Ability to protect intellectual property and potential conflicts with third-party IP; inability to maintain or enter new license agreements for CGMs or data management systems[14](index=14&type=chunk) - Worldwide macroeconomic and geopolitical uncertainty, public health crises, supply chain disruptions, and international regulatory/commercial/logistics business risks[15](index=15&type=chunk) - Concentration of manufacturing operations and storage of inventory; supply problems or price fluctuations with sole source or third-party suppliers[15](index=15&type=chunk) - Challenges to the future development of the non-insulin drug delivery product line; failure to comply with FDA quality system regulations or other manufacturing difficulties[15](index=15&type=chunk) - Extensive government regulation applicable to medical devices, as well as complex and evolving privacy and data protection laws; use of artificial intelligence tools[15](index=15&type=chunk) - Adverse regulatory or legal actions relating to current or future Omnipod products; potential adverse impacts from recalls, safety issues, or product liability lawsuits[15](index=15&type=chunk) - Breaches or failures of product or information technology systems, including by cyberattack; ability to attract, motivate, and retain key personnel[15](index=15&type=chunk) - Risks associated with potential future acquisitions or investments; ability to raise additional funds; volatility of common stock; and changes in tax laws[15](index=15&type=chunk) [Condensed Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Condensed_Consolidated_Financial_Statements_Unaudited) [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed_Consolidated_Statements_of_Income) The unaudited condensed consolidated statements of income show Insulet's financial performance for the three and six months ended June 30, 2025, compared to 2024, with significant revenue growth but a decrease in net income due to a large loss on extinguishment of debt and a prior-year tax benefit Statements of Income | (dollars in millions, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Revenue | $649.1 | $488.5 | $1,218.1 | $930.2 | | Cost of revenue | $196.9 | $157.6 | $356.8 | $292.5 | | Gross profit | $452.2 | $330.9 | $861.3 | $637.7 | | Research and development expenses | $73.4 | $53.9 | $133.0 | $104.1 | | Selling, general and administrative expenses | $257.7 | $222.5 | $518.4 | $422.2 | | Operating income | $121.1 | $54.5 | $209.9 | $111.5 | | Interest expense, net | $(9.5) | $(1.7) | $(8.5) | $(3.0) | | Loss on extinguishment of debt | $(84.4) | — | $(123.9) | — | | Other income (expense), net | $1.3 | $(1.8) | $(0.9) | $(2.5) | | Income before income taxes | $28.4 | $51.1 | $76.5 | $106.0 | | Income tax (expense) benefit | $(5.9) | $137.5 | $(18.6) | $134.1 | | Net income | $22.5 | $188.6 | $57.9 | $240.1 | | Diluted EPS | $0.32 | $2.59 | $0.82 | $3.32 | [Reconciliation of Diluted Net Income](index=6&type=section&id=Reconciliation_of_Diluted_Net_Income) The reconciliation shows the adjustment from net income to diluted net income, primarily by adding back interest expense, net of tax, attributable to the assumed conversion of convertible notes, which was applicable in 2024 but not 2025 Diluted Net Income Reconciliation | (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net income | $22.5 | $188.6 | $57.9 | $240.1 | | Add back interest expense, net of tax attributable to assumed conversion of convertible notes | — | $2.5 | — | $4.9 | | Net income, diluted | $22.5 | $191.1 | $57.9 | $245.0 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed_Consolidated_Balance_Sheets) Insulet's unaudited condensed consolidated balance sheets show an increase in total assets to $3,469.2 million as of June 30, 2025, from $3,087.7 million at December 31, 2024, driven by increases in cash, accounts receivable, and prepaid expenses, while total liabilities also increased due to a rise in the current portion of long-term debt, and stockholders' equity grew to $1,462.9 million Balance Sheet Overview | (dollars in millions) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | **ASSETS** | | | | Cash and cash equivalents | $1,121.6 | $953.4 | | Accounts receivable, net | $444.5 | $365.5 | | Inventories | $446.9 | $430.4 | | Prepaid expenses and other current assets | $266.7 | $142.0 | | Total current assets | $2,279.7 | $1,891.3 | | Property, plant and equipment, net | $720.4 | $723.1 | | Other intangible assets, net | $102.3 | $98.5 | | Goodwill | $51.7 | $51.5 | | Other assets | $315.1 | $323.3 | | Total assets | $3,469.2 | $3,087.7 | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Accounts payable | $96.1 | $19.8 | | Accrued expenses and other current liabilities | $453.4 | $424.9 | | Current portion of long-term debt | $460.7 | $83.8 | | Total current liabilities | $1,010.1 | $528.4 | | Long-term debt, net | $939.0 | $1,296.1 | | Other liabilities | $57.1 | $51.7 | | Total liabilities | $2,006.3 | $1,876.1 | | Stockholders' equity | $1,462.9 | $1,211.6 | | Total liabilities and stockholders' equity | $3,469.2 | $3,087.7 | [Non-GAAP Reconciliations (Unaudited)](index=8&type=section&id=Non_GAAP_Reconciliations_Unaudited) [Constant Currency Revenue Growth](index=8&type=section&id=Constant_Currency_Revenue_Growth) In Q2 2025, total revenue grew 32.9% (31.3% in constant currency), with International Omnipod revenue showing the highest growth at 45.0% (38.8% constant currency), and for the six months ended June 30, 2025, total revenue grew 30.9% (30.6% constant currency) Revenue Growth by Segment | (dollars in millions) | 2025 Revenue | 2024 Revenue | Percent Change | Currency Impact | Constant Currency | | :-------------------- | :----------- | :----------- | :------------- | :-------------- | :---------------- | | **Three Months Ended June 30,** | | | | | | | U.S. Omnipod | $453.2 | $352.3 | 28.7% | —% | 28.7% | | International Omnipod | $185.8 | $128.2 | 45.0% | 6.2% | 38.8% | | Total Omnipod Products | $639.0 | $480.4 | 33.0% | 1.6% | 31.4% | | Drug Delivery | $10.2 | $8.1 | 25.7% | —% | 25.7% | | Total | $649.1 | $488.5 | 32.9% | 1.6% | 31.3% | | **Six Months Ended June 30,** | | | | | | | U.S. Omnipod | $854.9 | $670.0 | 27.6% | —% | 27.6% | | International Omnipod | $338.1 | $243.4 | 38.9% | 1.4% | 37.5% | | Total Omnipod Products | $1,193.0 | $913.4 | 30.6% | 0.4% | 30.2% | | Drug Delivery | $25.1 | $16.8 | 49.2% | —% | 49.2% | | Total | $1,218.1 | $930.2 | 30.9% | 0.4% | 30.6% | [Adjusted Operating Income, Net Income & Diluted EPS](index=9&type=section&id=Adjusted_Operating_Income_Net_Income_Diluted_EPS) This section provides reconciliations of GAAP operating income, net income, and diluted EPS to their adjusted non-GAAP counterparts for various periods, with key adjustments including CEO transition costs, loss on extinguishment of debt, loss on investments, and significant tax matters impacting period-to-period comparability [Three Months Ended June 30, 2025](index=9&type=section&id=Adjusted_Operating_Income_Net_Income_Diluted_EPS_Q2_2025) Reconciliation for Q2 2025 | (in millions, except per share data) | GAAP | CEO Transition Costs | Loss on Extinguishment of Debt | Tax Matters | Interest Expense (Convertible Notes) | Non-GAAP | | :--------------------------------- | :--- | :------------------- | :----------------------------- | :---------- | :--------------------------------- | :------- | | Operating Income | $121.1 | $(5.3) | — | — | — | $115.8 | | Income before Income Taxes | $28.4 | $(5.3) | $84.4 | — | — | $107.5 | | Net Income | $22.5 | $(5.5) | $84.1 | $(17.3) | — | $83.7 | | Net Income, Diluted | $22.5 | $(5.5) | $84.1 | $(17.3) | $1.2 | $85.0 | | Diluted Earnings per Share | $0.32 | $(0.08) | $1.16 | $(0.24) | $0.02 | $1.17 | [Six Months Ended June 30, 2025](index=9&type=section&id=Adjusted_Operating_Income_Net_Income_Diluted_EPS_H1_2025) Reconciliation for H1 2025 | (in millions, except per share data) | GAAP | CEO Transition Costs | Loss on Investments | Loss on Extinguishment of Debt | Tax Matters | Interest Expense (Convertible Notes) | Non-GAAP | | :--------------------------------- | :--- | :------------------- | :------------------ | :----------------------------- | :---------- | :--------------------------------- | :------- | | Operating Income | $209.9 | $(5.3) | $4.7 | — | — | — | $209.2 | | Income before Income Taxes | $76.5 | $(5.3) | $7.5 | $123.9 | — | — | $202.6 | | Net Income | $57.9 | $(5.5) | $5.8 | $123.0 | $(23.8) | — | $157.4 | | Net Income, Diluted | $57.9 | $(5.5) | $5.8 | $123.0 | $(23.8) | $2.9 | $160.3 | | Diluted Earnings per Share | $0.82 | $(0.07) | $0.08 | $1.68 | $(0.32) | $0.04 | $2.19 | [Three Months Ended June 30, 2024](index=11&type=section&id=Adjusted_Operating_Income_Net_Income_Diluted_EPS_Q2_2024) Reconciliation for Q2 2024 | (dollars in millions) | GAAP | Loss on Investments | Tax Matters | Non-GAAP | | :-------------------- | :--- | :------------------ | :---------- | :------- | | Income before Income Taxes | $51.1 | $1.8 | — | $52.8 | | Net Income | $188.6 | $1.4 | $(151.7) | $38.3 | | Net Income, Diluted | $191.1 | $1.4 | $(151.7) | $40.8 | | Diluted Earnings per Share | $2.59 | $0.02 | $(2.06) | $0.55 | [Six Months Ended June 30, 2024](index=11&type=section&id=Adjusted_Operating_Income_Net_Income_Diluted_EPS_H1_2024) Reconciliation for H1 2024 | (dollars in millions) | GAAP | Loss on Investments | Tax Matters | Non-GAAP | | :-------------------- | :--- | :------------------ | :---------- | :------- | | Income before Income Taxes | $106.0 | $1.8 | — | $107.7 | | Net Income | $240.1 | $1.4 | $(158.3) | $83.2 | | Net Income, Diluted | $245.0 | $1.4 | $(158.3) | $88.2 | | Diluted Earnings per Share | $3.32 | $0.02 | $(2.15) | $1.19 | [Diluted Shares](index=9&type=section&id=Diluted_Shares) The non-GAAP diluted weighted average common shares outstanding for Q2 2025 were 72,514 thousand, an increase from the GAAP figure of 70,652 thousand due to the inclusion of convertible notes, with non-GAAP diluted shares for the six months ended June 30, 2025, at 73,312 thousand Diluted Shares Calculation | (in thousands) | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :-------------------------------------------------- | :------------------------------- | :------------------------------- | | GAAP weighted average number of common shares outstanding, diluted | 70,652 | 70,641 | | Convertible notes | 1,862 | 2,671 | | Non-GAAP weighted average number of common shares outstanding, diluted | 72,514 | 73,312 | [Adjusted EBITDA](index=12&type=section&id=Adjusted_EBITDA) Insulet's Adjusted EBITDA for Q2 2025 was $157.5 million (24.3% of revenue), significantly up from $90.9 million (18.6% of revenue) in Q2 2024, and for the six months ended June 30, 2025, it was $291.5 million (23.9% of revenue), compared to $180.0 million (19.4% of revenue) in the prior year, with key adjustments including loss on extinguishment of debt and CEO transition costs in 2025, and a large tax benefit in 2024 Adjusted EBITDA Reconciliation | (dollars in millions) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | | Net income | $22.5 | $188.6 | $57.9 | $240.1 | | Interest expense, net | $9.5 | $1.7 | $8.5 | $3.0 | | Income tax expense (benefit) | $5.9 | $(137.5) | $18.6 | $(134.1) | | Depreciation and amortization | $22.3 | $19.3 | $44.0 | $38.0 | | Stock-based compensation expense | $7.5 | $17.0 | $25.7 | $31.2 | | CEO transition | $5.4 | — | $5.4 | — | | Loss on extinguishment of debt | $84.4 | — | $123.9 | — | | Loss on investments | — | $1.8 | $7.5 | $1.8 | | **Adjusted EBITDA** | **$157.5** | **$90.9** | **$291.5** | **$180.0** | | **Adjusted EBITDA as % of Revenue** | **24.3%** | **18.6%** | **23.9%** | **19.4%** | [Free Cash Flow](index=12&type=section&id=Free_Cash_Flow) For the six months ended June 30, 2025, Insulet generated $229.4 million in free cash flow, calculated from $260.3 million in net cash provided by operating activities minus $30.9 million in capital expenditures Free Cash Flow Calculation | (in millions) | Six Months Ended June 30, 2025 | | :-------------------------------- | :------------------------------- | | Net cash provided by operating activities | $260.3 | | Capital expenditures | $(30.9) | | **Free cash flow** | **$229.4** | [Revenue Guidance (Non-GAAP)](index=13&type=section&id=Revenue_Guidance_Non_GAAP) Insulet's non-GAAP revenue guidance for FY 2025 projects total revenue growth of 24%-27% in constant currency, with U.S. Omnipod at 22%-25% and International Omnipod at 34%-37%, while Q3 2025 total revenue growth is guided at 22%-25% in constant currency Non-GAAP Revenue Guidance | Revenue Growth (Constant Currency) | Year Ending December 31, 2025 | Three Months Ended September 30, 2025 | | :--------------------------------- | :---------------------------- | :------------------------------------ | | U.S. Omnipod | 22% - 25% | 21% - 24% | | International Omnipod | 34% - 37% | 33% - 36% | | Total Omnipod | 25% - 28% | 24% - 27% | | Drug Delivery | (30)% - (25)% | (80)% - (75)% | | Total | 24% - 27% | 22% - 25% |

Core Insights - Insulet (PODD) is expected to report quarterly earnings of $0.93 per share, a 69.1% increase year-over-year, with revenues projected at $615.49 million, reflecting a 26% year-over-year growth [1] Earnings Estimates - There has been a 0.2% upward revision in the consensus EPS estimate over the last 30 days, indicating analysts' reassessment of their forecasts [2] - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock price performance [3] Revenue Projections - Analysts predict 'Revenue- Total Omnipod' at $605.82 million, showing a year-over-year change of +26.1% [5] - 'Revenue- Drug Delivery' is expected to be $9.07 million, indicating a +12% change from the prior-year quarter [5] - 'Revenue- International Omnipod' is forecasted to reach $171.85 million, suggesting a +34.2% year-over-year change [5] - 'Revenue- U.S. Omnipod' is estimated at $433.99 million, reflecting a +23.2% change from the year-ago quarter [6] Stock Performance - Insulet shares have decreased by -4.3% in the past month, contrasting with the Zacks S&P 500 composite's +1% performance [6] - The company holds a Zacks Rank 3 (Hold), indicating it is expected to closely follow overall market performance in the near term [6]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Insulet (PODD) due to higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Insulet is expected to report quarterly earnings of $0.93 per share, reflecting a year-over-year increase of +69.1% [3]. - Revenues are projected to be $615.49 million, representing a 26% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.2% higher in the last 30 days, indicating a positive reassessment by analysts [4]. - The Most Accurate Estimate for Insulet is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.78% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - Insulet currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat despite the positive Earnings ESP [12]. Historical Performance - In the last reported quarter, Insulet exceeded the expected earnings of $0.81 per share, achieving actual earnings of $1.02, resulting in a surprise of +25.93% [13]. - Over the past four quarters, Insulet has beaten consensus EPS estimates three times [14]. Industry Comparison - AdaptHealth Corp. (AHCO), another player in the Zacks Medical - Products industry, is expected to report earnings of $0.15 per share, indicating a year-over-year decline of -28.6% [18]. - AdaptHealth's revenues are projected to be $804.53 million, down 0.2% from the previous year [18]. - The consensus EPS estimate for AdaptHealth has remained unchanged, but a higher Most Accurate Estimate gives it an Earnings ESP of +13.33%, suggesting a likely earnings beat [19].

Investment Rating - The report maintains a "Buy" rating for Boston Scientific (BSX), Edwards Lifesciences (EW), GE Healthcare (GEHC), Intuitive Surgical (ISRG), and Haemonetics (HAE), while downgrading Tandem Diabetes (TNDM) to "Sell/High Risk" from "Neutral/High Risk" [1][5][20]. Core Insights - The MedTech sector has shown resilience against healthcare headwinds, with a focus on returning to fundamentals and several catalysts expected to drive momentum in the second half of 2025 [1][9]. - The S&P Equipment and Supplies Index has outperformed the broader market, with a year-to-date increase of 7.2%, while relative P/E multiples remain below historical averages [2][12]. - Key upcoming catalysts include product launches and data readouts from various companies, which are anticipated to influence stock performance positively [3][10][11]. Summary by Sections Market Overview - The MedTech industry has largely absorbed tariff impacts, with a weakening USD providing additional support [1][9]. - The S&P 500 is up 6.2% year-to-date, while the S&P Equipment and Supplies Index has increased by 7.2% [2][12]. Company-Specific Insights - Boston Scientific (BSX) is expected to benefit from Farapulse and new product launches, projecting a revenue increase of 80.1% year-over-year in 2Q25 [3][10]. - Edwards Lifesciences (EW) anticipates pivotal data releases and the reopening of TAVR NCD, which could enhance its market position [3][10]. - Intuitive Surgical (ISRG) plans a broad launch of its DV5 system, which is expected to drive stock performance [4][10]. - Haemonetics (HAE) has been upgraded to "Buy" due to improved guidance and revenue growth expectations [5][20]. - Tandem Diabetes (TNDM) faces competitive pressures, leading to its downgrade to "Sell/High Risk" [5][20]. Valuation and Target Prices - Target prices have been adjusted for several companies, with BSX at $125, EW at $95, GEHC at $86, and ISRG at $650 [20][21]. - The report highlights that the relative P/E multiple for the MedTech sector is currently at 1.14x, below historical averages, indicating potential undervaluation [2][12][14].