Tandem Diabetes Care 2025 Q2 Earnings Worse Losses Amid Revenue Growth

Tandem Diabetes Care reported fiscal 2025 Q2 earnings on Aug 06th, 2025. The company posted revenue growth but wider losses than the prior year. Guidance for the year was set at $1 billion in sales, with a focus on expanding international markets and operational efficiency.

Revenue
Tandem Diabetes Care’s total revenue rose 8.5% year-over-year to $240.68 million in the second quarter of 2025, from $221.91 million in the same period of 2024. In the U.S., sales grew by 9% to $170.2 million, driven by a 5% increase in pump sales and a 13% rise in supplies and other revenue. Internationally, the company reported $70.5 million in sales, reflecting an 8% year-over-year increase. These gains were supported by strong pump shipments of approximately 21,000 units in the U.S. and 9,000 units internationally, as well as gross margin improvements both year-over-year and sequentially.

Earnings/Net Income
The company’s financial performance deteriorated significantly, with losses widening to $0.78 per share in Q2 2025 from $0.47 per share in Q2 2024. Net loss expanded to $-52.4 million, a 70.1% increase from $-30.8 million in the prior year. The company has now posted losses for 13 consecutive years in this quarter, underscoring ongoing financial pressures.

Price Action
Tandem Diabetes Care’s shares have experienced a downward trend, with a 3.49% decline on the most recent trading day, a 13.68% drop over the past week, and an 11.45% decline month-to-date.

Post Earnings Price Action Review
A backtest of the strategy to purchase TNDM shares following a revenue increase in its quarterly earnings and hold for 30 days showed mixed results over the past three years. The overall return was 18.75%, but performance varied significantly across time periods and quarters. While the first year delivered a strong 25.98% return and early quarters showed gains, the strategy underperformed in later quarters, particularly in the fourth quarter of the test period. The mixed results underscore the influence of broader market volatility, the company’s ongoing financial challenges, and shifting market sentiment. Although the strategy offered short-term upside, it was not consistently reliable, emphasizing the need for investors to evaluate long-term trends and broader economic conditions.

CEO Commentary
John Sheridan, President and Chief Executive Officer, emphasized progress in both product development and operational efficiency, highlighting record sales in both the U.S. and international markets. He also noted the company’s early access program for the t:slim X2 insulin pump with Control-IQ+ technology and its plans for a fully closed-loop automated insulin delivery system. Sheridan expressed optimism about sustained double-digit growth and enhanced profitability for the remainder of the year.

Guidance
For the full year 2025, Tandem Diabetes Care expects worldwide sales of approximately $1.0 billion, with U.S. sales estimated at $700 million and international sales at $300 million. The guidance accounts for a $10 million headwind from direct commercial operations in select countries. Gross margin is projected to range between 53% and 54%. Adjusted EBITDA margin is expected to fall between negative 5% and 3% of sales, with an 8 percentage point negative impact from an in-process research and development charge in Q1. The company also anticipates non-cash charges of approximately $115 million, including $95 million in stock-based compensation and $20 million in depreciation and amortization.

Additional News
On June 30, 2025, Tandem Diabetes Care announced key product and regulatory developments in its second quarter 2025 earnings report. The company launched an early access program for the t:slim X2 insulin pump with Control-IQ+ technology integrated with Abbott’s FreeStyle Libre® 3 Plus sensor in the U.S. It also received CE Mark approval for the Tandem Mobi insulin delivery system with Control-IQ+ technology, enabling market expansion in Europe. Additionally, Tandem filed a 510(k) application with the U.S. Food and Drug Administration for extended wear use of the SteadiSet Infusion Set. The company completed a feasibility study for a fully-closed loop automated insulin delivery system, a strategic initiative aimed at enhancing its product portfolio. These developments underscore Tandem’s commitment to advancing diabetes technology and strengthening its long-term growth prospects.