Tandem Diabetes Care FY Conference Summary Company Overview - **Company**: Tandem Diabetes Care (NasdaqGM:TNDM) - **Date of Conference**: December 02, 2025 Key Industry Insights - **Industry**: Diabetes care technology, specifically focusing on insulin delivery systems and related supplies Core Points and Arguments 1. **Pricing Strategy and Revenue Growth** - Pricing contributed to a 5% revenue growth in Q3, primarily from domestic sales [2][12] - Two-thirds of the pricing benefit came from pharmacy sales, with one-third from Durable Medical Equipment (DME) [5][7] - The company anticipates that pricing strategies could lead to significant revenue increases, potentially reaching $500 million in supplies alone based on current pricing benefits [23][28] 2. **Market Coverage and Expansion** - Tandem currently has 40% coverage of U.S. lives for MobiPump and supplies, with rapid growth expected [14][16] - The company aims to transition existing patients from DME to pharmacy channels, which is crucial for maximizing revenue [20][21] 3. **Gross Margin Improvement** - Gross margins improved to between 53%-54% in Q3, with expectations to reach 60% by the end of 2026 [28][30] - Price increases are a major driver of this improvement, enhancing both top-line and bottom-line growth [26][28] 4. **Product Innovation and Market Positioning** - Tandem is focusing on expanding its product offerings, including the upcoming tubeless Mobi pump and a fully closed-loop system expected to start pivotal trials in 2026 [67][68] - The company is also integrating with Android and FreeStyle Libre 3, expanding its addressable market [41][42] 5. **Competitive Landscape** - Tandem is positioned to compete effectively against other players in the market, such as Insulet and Medtronic, by leveraging its superior algorithm and product features [30][43] - The company acknowledges the challenges posed by competitors but believes its product offerings will resonate well with both patients and healthcare providers [43][52] 6. **Financial Performance and Future Outlook** - Tandem returned to EBITDA positive in Q3, with a goal to maintain positive EBITDA annually moving forward [80][81] - The company generated $50 million in EBITDA in 2022 and aims to reach that level again as early as next year [83][84] Additional Important Insights - **Patient Engagement**: The company is actively working to engage physicians and patients to facilitate the transition to pharmacy channels, which is critical for maximizing the benefits of pricing strategies [20][21] - **Market Growth**: The overall pump market is expected to grow at double-digit rates, driven by new technologies and the expansion of the type 2 diabetes market [78][75] - **Sales Force Optimization**: Tandem has expanded its sales force to better target high prescribers of insulin, ensuring efficient market penetration for its new products [72][73] This summary encapsulates the key points discussed during the Tandem Diabetes Care FY Conference, highlighting the company's strategic focus on pricing, market expansion, product innovation, and financial performance.

Tandem Diabetes Care Q3 2025 Conference Call Summary Company Overview - **Company**: Tandem Diabetes Care (NasdaqGM:TNDM) - **Date**: November 11, 2025 - **Context**: Discussion of Q3 2025 results and future outlook Key Points Financial Performance - Q3 2025 results showed solid performance with outperformance relative to market expectations, primarily driven by pricing strategies [2][4] - U.S. pump sales experienced a slight decline year-over-year, indicating challenges in the market [2][4] - Pricing improved in Q3, with mid-single-digit year-over-year growth attributed to the pharmacy channel [5][13] Sales and Market Dynamics - The company is undergoing a transformation in the U.S. market, which has led to some turbulence but also signs of improved sales rep productivity [4][11] - September 2025 was noted as the strongest month of the quarter, with expectations for continued sales momentum into Q4 [6][12] - Pharmacy sales accounted for 5% of U.S. revenue in Q3, primarily driven by the introduction of t:slim supplies [7][8] Product Pipeline and Innovations - The company is prioritizing the launch of the tubeless Mobi product, expected to be a significant growth driver in 2026 [18][19] - The integration of Mobi with FreeStyle Libre 3 is anticipated, enhancing product offerings [23] - A fully closed-loop pivotal trial is set to begin in 2026, leveraging existing algorithms and clinical data [24][25] Competitive Landscape - The market is characterized by significant growth potential, with new entrants and competition emerging [34][35] - The company acknowledges the presence of competitors but believes in the overall market opportunity for all players [34] Type 2 Diabetes Market Opportunity - The company is expanding its focus on insulin-intensive Type 2 diabetes patients, which represents a significant market opportunity [42][46] - Current penetration of pumps in this segment is around 5%, with expectations to increase to 25-30% over the next few years [47] International Expansion - Tandem is moving towards a direct sales model in certain international markets, anticipating a minimum 30% ASP premium [51][52] - The transition is expected to be accretive to the bottom line, despite initial OPEX increases [52] Operational Efficiency - The company is implementing measures to improve operational efficiency, including automation and process improvements, which are expected to support a larger install base without proportional increases in headcount [56] 2026 Outlook - Gross margins are projected to improve by at least 300 basis points in 2026, driven by increased pump volumes and pricing benefits [54] - The company is optimistic about achieving OPEX leverage through enhanced sales force productivity and restructuring efforts [56] Additional Insights - The company is cautious about the competitive landscape and is monitoring new entrants closely, indicating a need for time to assess their impact [35][37] - The management emphasized the importance of understanding market dynamics and adapting strategies accordingly, particularly in the context of new product launches and market penetration efforts [41][46]

Core Insights - Tandem Diabetes Care reported Q3 CY2025 results with revenue of $249.3 million, exceeding analyst expectations by 5.6% and showing a year-on-year growth of 2.6% [1][6] - The company's GAAP loss per share was $0.31, which was 3.6% better than the consensus estimate of $0.32 [1][6] Operational Performance - The third quarter was characterized by improved operational efficiency and commercial execution, leading to a positive market reaction [3] - Management attributed the performance to the modernization of U.S. commercial operations, increased pricing contributions, and early traction from new product offerings [3][5] - Changes in sales processes and organizational restructuring have resulted in better sales productivity and a strong customer mix adopting both t:slim and Mobi pump platforms [3] Future Outlook - The company plans to expand pharmacy access, launch new products, and enhance direct international operations [4] - New product introductions, such as Mobi Tubeless and integration with continuous glucose monitoring systems, are expected to drive customer growth [4] - The focus on a fully closed-loop pump system and a multichannel approach is anticipated to improve both top-line and margin performance as the company enters new international markets [4] Financial Metrics - Adjusted EBITDA was reported at $2.77 million, which was a 50% miss compared to analyst estimates of $5.55 million [6] - The operating margin improved to -9.2%, up from -10.7% in the same quarter last year [6] - Sales volumes fell by 4.8% year on year, compared to a decline of 24.7% in the same quarter last year [6] - The company's market capitalization stands at $900.7 million [6]

Summary of Tandem Diabetes Conference Call Company Overview - **Company**: Tandem Diabetes - **Key Executives**: President and CEO, Susan Morrison (Senior Vice President and Chief Administrative Officer) Recent Performance - **2024 Growth**: Guided for 10% growth but achieved 18% growth, marking the highest fourth quarter performance ever [4][5] - **Q1 Performance**: Q1 growth exceeded 20%, driven by strong demand and the introduction of new products [9][20] Product Developments - **Tandem Mobi**: A smaller, discreet device utilizing Control IQ technology, leading to double-digit growth in MDI starts since its launch [6][7] - **Type 2 Approval**: Received approval for Type 2 diabetes management, with expectations for meaningful growth in the coming years [8][15] - **Pharmacy Channel**: Plans to fully leverage the pharmacy channel, which is expected to enhance accessibility and profitability [8][66] Market Dynamics - **Competitive Landscape**: Anticipated disruption from a competitor separating their diabetes business, but Tandem believes its pipeline and initiatives will maintain competitive advantage [18][19] - **Type 2 Market Potential**: Approximately 2.3 million people in the U.S. with insulin-intensive Type 2 diabetes, with only about 100,000 currently using pumps, indicating significant growth potential [30][31] Sales Strategy - **Sales Force Expansion**: Ongoing evaluation of sales force size and market access strategies, particularly for Type 2 diabetes management [34][36] - **Pharmacy Channel Strategy**: Focus on increasing covered lives and establishing contracts to enhance market access [70][72] Financial Outlook - **Gross Margin Expectations**: Anticipated increase from 51% to 54% for the year, with long-term targets of 60% gross margin by 2026 [78][82] - **Operational Efficiency**: Initiatives in place to improve operating margins while expanding sales force and entering new markets [80][86] Pipeline and Future Developments - **Integration with CGMs**: Ongoing integration of new technologies, including the FreeStyle Libre 3, to enhance product offerings [46][48] - **AdaNet Algorithm**: Collaboration with UVA to develop a new algorithm aimed at improving diabetes management [54][61] Key Takeaways - **Market Awareness**: Increased awareness of AID systems among Type 2 diabetes patients is expected to drive steady growth [32][33] - **Long-term Strategy**: Tandem is focused on a portfolio approach to address diverse market needs, ensuring a competitive edge through innovation and technology [40][43] Conclusion - Tandem Diabetes is positioned for significant growth driven by innovative product offerings, strategic market expansions, and a focus on improving patient access through pharmacy channels. The company is optimistic about its future performance and market potential, particularly in the Type 2 diabetes segment.