Insulet 2025 Q2 Earnings Revenue Surges 32.9%, but Net Income Plummets 88.1%

Insulet reported fiscal 2025 Q2 earnings on August 6, 2025, showing strong revenue growth but a sharp decline in earnings. Total revenue increased by 32.9% year-over-year to $649.10 million, driven by robust U.S. and international Omnipod sales. However, the company’s net income fell by 88.1%, from $188.60 million to $22.50 million, and its EPS dropped from $2.69 to $0.32. Insulet raised its fiscal 2025 guidance, particularly in operating margins.

Revenue
Driven by strong demand for its Omnipod 5, Insulet’s revenue surged 32.9% year-over-year to $649.10 million. U.S. Omnipod sales accounted for the lion’s share at $453.20 million, while International Omnipod revenue reached $185.80 million. The Drug Delivery segment contributed $10.20 million, though it is expected to see a significant decline in the near future. Combined, the Total Omnipod business accounted for nearly all of the company’s revenue.

Earnings/Net Income
Despite robust top-line growth, Insulet experienced a significant decline in profitability. Earnings per share dropped by 88.1% to $0.32 in Q2 2025, from $2.69 in the same period a year earlier. Similarly, net income fell to $22.50 million, a 88.1% decrease from $188.60 million in Q2 2024. The earnings contraction highlights the challenges in maintaining profitability amid rapid growth and operational expansion.

Price Action
The stock price of Insulet edged down 0.70% during the latest trading day, dropped 7.03% during the most recent full trading week, and declined 7.78% month-to-date. The market reaction suggests some caution around the company’s post-earnings performance.

Post-Earnings Price Action Review
A strategy of buying Insulet shares on the day of the earnings report and holding for 30 days yielded moderate returns but underperformed the broader market. With a compound annual growth rate of 4.32%, the strategy lagged behind the benchmark by 36.03 percentage points. Although the maximum drawdown was 0.00%, indicating low risk, the Sharpe ratio of 0.11 pointed to modest returns, reflecting limited investor enthusiasm despite the company’s revenue growth.

CEO Commentary
Ashley McEvoy, President and CEO, expressed optimism about the results, calling them “robust” and crediting the team’s performance and the growing appeal of Omnipod 5 for diabetes management. She emphasized the company’s unique position at the intersection of consumer health, medtech, and health tech, and expressed confidence in Insulet’s ability to scale and deliver long-term value to stakeholders.

Guidance
For Q3 2025, the company expects U.S. Omnipod revenue to grow by 21%-24%, International Omnipod by 33%-36%, and Total Omnipod by 24%-27%. For FY 2025, Insulet now guides to Total Omnipod growth of 22%-25%, with Gross Margin near 71.0% and Adjusted Operating Margin of 17.0%-17.5%, up from prior guidance of ~16.5%. The Drug Delivery segment remains expected to decline by 75%-80%.

Additional News
On June 30, 2025, Insulet released its second-quarter 2025 earnings report, with a detailed overview of its financial performance and strategic initiatives. The company also updated investors on upcoming events, presentations, and leadership developments. Leadership & Governance sections highlighted Insulet’s commitment to transparent communication with shareholders through various investor resources, including SEC filings, stock quotes, and governance documents. The Board of Directors and Management remain focused on long-term growth and ESG priorities.