[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% |

The average prediction of analysts places 'Revenue- Total Omnipod' at $605.82 million. The estimate indicates a year-over-year change of +26.1%. Analysts expect 'Revenue- Drug Delivery' to come in at $9.07 million. The estimate indicates a change of +12% from the prior-year quarter. In its upcoming report, Insulet (PODD) is predicted by Wall Street analysts to post quarterly earnings of $0.93 per share, reflecting an increase of 69.1% compared to the same period last year. Revenues are forecasted to be $615 ...

Wall Street expects a year-over-year increase in earnings on higher revenues when Insulet (PODD) reports results for the quarter ended June 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 7, might help the stock move higher if these key numbers are better than expectations. O ...

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].

Financial Performance & Growth - Insulet achieved market-leading revenue growth and value creation[11] - The company is driving financial results through strong execution and margin expansion[7, 55] - In 2023, Insulet marked its 8th consecutive year of total company revenue growth of 20% or more[18] - Q3 2024 saw a gross margin of 693%, a +150 bps increase, and an operating margin of 162%, a +350 bps increase[18] - Q3 2024 U S revenue growth was 23%, total Omnipod revenue growth was 26%, and international revenue growth was 35%[18] - The company's revenue has grown from $07 billion in 2019 to $21 billion in 2024E, with a 23% CAGR[15] Omnipod 5 Platform & Clinical Outcomes - Omnipod 5 simplifies diabetes management and is winning on all dimensions[28, 31] - Omnipod 5 demonstrated a 175%-20% increase in time in range in adults with T1D and T2D, respectively[32] - Real-world results in 70000 Omnipod 5 users showed adults (18+ yrs) achieved 688% time in range and pediatrics (2-17 yrs) achieved 644% time in range[36, 37] - The SECURE-T2D trial demonstrated a 08% reduction in A1C with Omnipod 5 in T2D patients[39] Market Opportunity & Sustainability - Insulet is well-positioned for large market opportunities, with ~14M TAM across markets in different stages of pump penetration[23] - The company is focused on healthcare providers and direct-to-consumer initiatives to drive awareness[47] - Insulet is committed to sustainability, with initiatives including increased renewable energy generation (802kW potential) and a 77% reduced carbon footprint in redesigned U S Omnipod 5 starter kit packaging[48, 49]

Core Viewpoint - The healthcare sector is highlighted as a critical area in the stock market, driven by the need for innovative therapies and medical technologies to address an aging population and rising chronic diseases. There are ten under-the-radar healthcare stocks identified as potential investment opportunities. Group 1: Company Highlights - **Certara**: Positioned to benefit from AI-driven transformations in medicine, providing bio-simulation software that accelerates drug development, with over 90% of novel drugs approved by the FDA since 2014 utilizing its technology [3][4]. - **Beam Therapeutics**: A clinical-stage biotech focusing on precision gene editing therapies for genetic diseases, with its lead candidate in phase 1/2 trials for sickle cell disease, showing promise for long-term growth [5][6]. - **Inspire Medical Systems**: Develops implantable devices for obstructive sleep apnea, reporting a 23% year-over-year revenue increase to $201 million, indicating strong market demand [8]. - **Insulet**: Specializes in tubeless insulin pump technology, targeting a revenue growth of 19% to 22% by 2025, with significant expansion opportunities in international markets [9]. - **Krystal Biotech**: Focuses on rare skin diseases, with its gene therapy expected to generate approximately $400 million in revenue this year, reinforcing its market position [10]. - **LifeMD**: Operates a telehealth platform with a 49% year-over-year revenue increase, driven by a partnership with Novo Nordisk, indicating potential for further growth [11]. - **Option Care Health**: Leading provider of home infusion services, positioned to benefit from the shift towards personalized healthcare [12]. - **Tempus AI**: Utilizes AI for precision medicine, projecting over 80% revenue growth this year to about $1.3 billion, highlighting its expansive data ecosystem [13]. - **TransMedics Group**: Innovates in organ transplantation with its FDA-approved Organ Care System, projecting a 30% revenue growth this year [14][15]. - **Veeva Systems**: Offers cloud-based software for life sciences, serving over 1,000 customers and positioned to capitalize on the industry's digital transformation [16].

Core Insights - Insulet Corporation's Omnipod platform is experiencing rapid commercial expansion, with Omnipod 5 adoption presenting significant growth opportunities despite macroeconomic challenges and competition [1][9] Company Overview - Insulet Corporation has a market capitalization of $21.51 billion and has surpassed earnings estimates in three of the last four quarters, with an average surprise of 12.21% [2] Product Highlights - Omnipod 5 is the only FDA-cleared, fully disposable pod-based automated insulin delivery (AID) system, showing strong momentum in new customer starts in the U.S. [3] - Approximately 85% of new starts for Omnipod 5 came from individuals previously using multiple daily injections (MDI), with Type 2 diabetes users representing over 30% of new customer starts [4] Market Expansion Strategy - Insulet is strategically transitioning from Omnipod GO to Omnipod 5 for type 2 diabetes patients and has expanded Omnipod 5 into 11 new international markets in early 2025 [5][9] - The company plans further international launches in 2025, including Belgium, Switzerland, Canada, and five additional markets in the Middle East [7] Financial Projections - The Zacks Consensus Estimate for 2025 earnings per share (EPS) is $4.34, reflecting a 1.4% decrease, while revenue is projected at $2.52 billion, indicating a 21.8% increase from the previous year [12]

Investment Rating - The investment rating for Insulet Corp. is "Buy" with a 12-month price target of $380, indicating an upside potential of 24.3% from the current price of $305.66 [9]. Core Insights - Insulet Corp. aims to increase penetration in Type 1 diabetes patients, ramp up adoption in the Type 2 population, and expand internationally while targeting at least 100 basis points of annual operating margin expansion [1][4]. - The company has a strong performance track record, having exceeded original guidance by an average of 7.5% in 2022, 2023, and 2024 [1]. - The recent CEO transition does not signal a change in strategy, with continued focus on U.S. Type 1 adoption and growth in the Type 2 opportunity [4][6]. - The 2025 sales guidance appears conservative, reflecting a cautious outlook despite a strong first quarter performance [4][5]. Summary by Sections Strategic Priorities - Insulet Corp. is focused on increasing its market share in Type 1 diabetes, accelerating growth in the Type 2 segment, and expanding its international footprint [1][4]. - The company plans to enhance its Omnipod 5 rollout in additional countries, with nine new countries targeted for early 2025 [7]. Financial Performance - The company reported a gross margin of 71.9% in Q1 2025, with expectations to maintain around 71% for the full year, reflecting strong manufacturing efficiencies [7]. - Revenue projections for 2025 are estimated at $2.57 billion, with continued growth anticipated in subsequent years [9]. Market Opportunities - The Type 2 diabetes market shows early momentum with only ~5% penetration of the estimated 2.5 million patients in the U.S., indicating significant growth potential [7]. - Internationally, Insulet has only achieved 20% penetration in its current markets, suggesting ample opportunity for expansion [7]. Valuation - The valuation is based on a next twelve months (NTM) price-to-earnings (P/E) multiple of 65.0x applied to earnings per share (EPS) estimates [6].

Summary of Insulet's Conference Call Company Overview - **Company**: Insulet Corporation - **Industry**: Medical Technology, specifically diabetes management solutions Key Points and Arguments Leadership Transition - Insulet welcomed Ashley as the new CEO about six weeks prior to the call, indicating a strategic shift to support growth beyond $2 billion [2][3] - The board assessed that different skills are needed to transition from $2 billion to higher revenue levels [2] Market Opportunities - Insulet's focus remains on Type 1 and Type 2 diabetes markets in the U.S., with significant growth potential in Type 2, which is described as a "blue ocean" opportunity [4][5] - There are approximately 2.5 million people with Type 2 diabetes in the U.S., with only about 5% currently penetrated by Insulet's products [16] - Internationally, Insulet serves about 3.5 million people with Type 1 diabetes, with only 20% market penetration [6] Sales and Marketing Strategy - Expansion of the sales force has increased coverage from 30% to 40% of the Type 2 diabetes population [17][20] - The number of unique prescribers in the U.S. grew by 25,000, representing a 20% increase year-over-year [18] - Insulet is focusing on high prescription rates of Continuous Glucose Monitors (CGMs) and rapid-acting insulin to identify key markets for sales force expansion [21] Financial Performance - Insulet reported a gross margin of 71.9% in Q1, with expectations for continued improvement due to operational efficiencies and supplier negotiations [61][62] - The company anticipates a 16.5% operating margin, reflecting a 160 basis point increase from the previous year [67] - Q1 performance was positively influenced by inventory stocking dynamics and a change in rebate estimation, which is expected to normalize over the year [39][41] International Growth - Insulet experienced a 36% growth in international markets in Q1, with ongoing launches in new markets and further releases of sensors [45][46] - The company is focusing on both direct and indirect market strategies, with a significant portion of growth attributed to filling distributor networks [51] Product Development and Retention Strategies - Insulet is committed to enhancing product usability and customer retention, including proactive outreach to customers who may stop using the product [34] - The company is focused on building clinical evidence to support product effectiveness and market development [73] Future Outlook - Insulet aims to maintain its growth trajectory while managing the complexities of scaling operations [13] - The company is positioned to capitalize on the growing demand for diabetes management solutions, with a focus on innovation and market expansion [84] Capital Structure and Financial Flexibility - Insulet has taken steps to improve its capital structure, allowing for increased financial flexibility and the ability to reinvest in growth opportunities [74][76] Additional Important Content - The company is preparing for upcoming conferences, including sharing new data and insights from ongoing studies [72] - Insulet's leadership emphasizes the importance of maintaining company culture and agility as it grows [12][14]

Core Viewpoint - Insulet Corporation (PODD) has experienced significant share price growth of 78.5% over the past year, outperforming the industry growth of 7.3% and the S&P 500's increase of 9.3% [1] Company Overview - Insulet develops and markets the Omnipod System, a continuous insulin delivery system for insulin-dependent diabetes, which includes the Omnipod and the next-generation Omnipod DASH [2] - The company reports revenues from three segments: U.S. Omnipod, International Omnipod, and Drug Delivery, with the latter involving partnerships with pharmaceutical companies [3] Factors Favoring Share Price Growth - The upward trend in Insulet's share price is driven by the strong performance of the Omnipod 5 system, which is the only FDA-cleared, fully disposable pod-based automated insulin delivery system, expanding the addressable market to over 5.5 million people in the U.S. [4] - Omnipod 5 has shown strong momentum in new customer acquisitions in the U.S., with sequential and year-over-year growth reported in Q1 2025 [5] - The company has successfully launched Omnipod 5 in multiple countries, including Australia, Belgium, Canada, and Switzerland, with plans for further market expansion in 2025 [6] - Insulet's focus on consumer-focused innovation is highlighted by the limited market release of Omnipod Discover, a digital platform aimed at enhancing patient engagement and outcomes [7] Financial Performance and Estimates - The Zacks Consensus Estimate for Insulet's 2025 EPS has increased by 0.7% to $4.31 in the past 30 days, with an earnings yield of 1.3%, outperforming the industry's yield of 0.6% [12]