Insulet 2025 Q1 Earnings Misses Targets as Net Income Falls 31.3%

Insulet (PODD) announced its fiscal 2025 Q1 earnings on May 8, 2025. The company reported revenue of $569 million, marking a 28.8% increase from the previous year and surpassing analyst expectations. However, net income declined 31.3% to $35.4 million, missing targets. Insulet raised its guidance for the year, projecting U.S. Omnipod revenue growth of 22% to 25% and international Omnipod growth of 27% to 30%.

Revenue
In the first quarter of 2025, Insulet achieved an impressive revenue increase of 28.8%, reaching $569 million compared to $441.70 million in the same quarter last year. The U.S. Omnipod segment generated $401.70 million, highlighting its strong domestic performance. Internationally, the Omnipod segment contributed $152.40 million, showcasing significant global growth. Additionally, the Drug Delivery segment added $14.90 million to the total revenue, demonstrating its ongoing contribution to the company's overall financial success.

Earnings/Net Income
Insulet's earnings per share (EPS) dropped 32.4% to $0.50 in 2025 Q1 from $0.74 in 2024 Q1, while net income fell to $35.40 million, down 31.3% from $51.50 million a year ago. This decline in EPS indicates a challenging period for the company.

Price Action
The stock price of Insulet experienced a 3.51% drop during the latest trading day, while it saw a modest increase of 2.70% over the past week and a slight uptick of 0.30% month-to-date.

Post-Earnings Price Action Review
Over the past five years, investing in Insulet shares following a quarter of revenue decline and holding for 30 days has yielded moderate returns but with significant volatility and risk. The strategy's compound annual growth rate (CAGR) was 3.43%, delivering an overall return of 18.31%. However, it underperformed the benchmark, which achieved a return of 92.56%. The strategy's Sharpe ratio was notably low at 0.08, highlighting limited risk-adjusted returns. With a maximum drawdown of -59.64% and a volatility of 42.83%, this approach carried substantial risk, making it more suitable for experienced investors with a high-risk tolerance seeking short-term opportunities.

CEO Commentary
"Our first quarter results showcase the strong execution and dedication of the Insulet team, who has continued to expand the reach of Omnipod 5 technology to people living with diabetes globally," said Ashley McEvoy, President and CEO. McEvoy outlined a vision to transition Insulet from an emerging diabetes leader to a durable growth engine, emphasizing the company's commitment to revolutionizing diabetes management. He expressed gratitude to the team and Board for their support, stating, "Insulet is just getting started on an exciting journey," reflecting an optimistic outlook on future growth and impact.

Guidance
For the quarter ending June 30, 2025, and the year ending December 31, 2025, Insulet projects U.S. Omnipod revenue growth of 22% to 25% and international Omnipod growth of 27% to 30%. Total Omnipod revenue is expected to increase by 23% to 26%, with Drug Delivery revenue anticipated to grow by 10% to 15%. The gross margin is expected to be approximately 71%, while the adjusted operating margin is projected to be around 16.5%.

Additional News
Insulet recently launched its Omnipod 5 system in several new international markets, including Australia, Belgium, Canada, and Switzerland, significantly expanding its global footprint. Additionally, the company presented promising RADIANT trial data at the ATTD International Conference, demonstrating the efficacy of its automated insulin delivery system. Furthermore, Insulet successfully issued $450 million in senior unsecured notes and upsized its revolving credit facility, strengthening its financial position. The Board of Directors authorized a program to repurchase up to $125 million of common stock to offset dilution from stock-based compensation, showcasing a commitment to enhancing shareholder value.