Tandem Diabetes Care Inc (NASDAQ:TNDM) Reports Mixed Q2 2025 Results with Revenue Miss and Wider Loss

Tandem Diabetes Care Inc (NASDAQ:TNDM) reported mixed second-quarter 2025 results, with revenue slightly below analyst expectations and a wider-than-anticipated loss per share. The company also provided updated full-year guidance, reflecting both operational progress and financial headwinds.

Q2 2025 Earnings vs. Estimates

• Revenue: Reported at $240.7 million, up 8.5% year-over-year but below the consensus estimate of $243.3 million.
• Earnings per Share (EPS): Posted a GAAP net loss of $0.48 per share, worse than the estimated loss of $0.41 per share.
• Gross Margin: Improved to 52%, up from 51% in Q2 2024, reflecting better operational efficiency.
• Operating Loss: GAAP operating loss widened to $51.8 million (22% of sales) from $30.8 million (14% of sales) in the prior-year quarter.

Market Reaction

Following the earnings release, Tandem Diabetes Care’s stock dropped ~17% in after-hours trading. The decline appears driven by:

• Revenue Miss: Despite growth, sales fell short of expectations, particularly in the U.S. market.
• Higher Losses: The deeper-than-expected net loss suggests ongoing cost pressures, including R&D investments.
• Guidance Adjustment: The company revised its full-year adjusted EBITDA margin from 3% to -5%, citing a negative impact from acquired in-process R&D expenses.

Key Highlights from the Press Release

• Record Q2 Sales: Both U.S. and international segments achieved all-time highs, with 21,000 pumps shipped domestically and 9,000 internationally.
• Product Milestones:
  • Received CE Mark for the Tandem Mobi insulin pump with Control-IQ+ technology.
  • Filed a 510(k) submission for extended wear of the SteadiSet Infusion Set.
  • Advanced development of a fully closed-loop automated insulin delivery system.
• Pharmacy Channel Expansion: Plans to include t:slim X2 supplies as a pharmacy benefit starting in Q4 2025.

2025 Outlook vs. Analyst Estimates

• Full-Year Sales Guidance: $1.0 billion, aligning with analyst expectations of $1.024 billion.
  • U.S. sales projected at $700 million.
  • International sales at $300 million, though impacted by a $10 million headwind from transitioning to direct operations in select markets.
• Gross Margin Forecast: 53%-54%, indicating continued improvement.
• Adjusted EBITDA Margin: Revised to -5% (from prior guidance of 3%) due to non-recurring R&D charges.

Conclusion

Tandem Diabetes Care’s Q2 results reflect steady revenue growth but persistent profitability challenges. The market’s negative reaction underscores concerns over widening losses and adjusted guidance, despite progress in product development and geographic expansion.

For more detailed earnings estimates and historical performance, visit Tandem Diabetes Care’s earnings page.

Disclaimer: This article is not investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.