Knowing stock market today at a glance

Tandem Diabetes Care Stock Soars 10.68% on Q1 Revenue Surge

Mover TrackerThursday, May 1, 2025 7:14 am ET

1min read

Tandem Diabetes Care's stock surged 10.68% in pre-market trading on May 1, 2025, marking a significant rise that has caught the attention of investors and analysts alike.

Tandem Diabetes Care reported impressive first-quarter 2025 results, with a 22% surge in revenue, driven by strong sales both domestically and internationally. The company's insulin pump shipments reached record highs, with over 17,000 units shipped in the U.S. and 11,000 units internationally, indicating growing market acceptance of their Tandem Mobi and t:slim X2 systems.

Despite the revenue growth, tandem diabetes care continues to face profitability challenges. The company reported a GAAP net loss of $130.6 million, largely due to non-recurring costs such as R&D expenses and facility impairments. However, the non-GAAP operating loss narrowed to $34.5 million, and Adjusted EBITDA improved to -$4.7 million, suggesting that core operations are becoming more efficient.

Tandem Diabetes Care has set ambitious targets for 2025, aiming for $1 billion in sales. The company expects U.S. sales to grow by 10-11% and international sales to increase by 20-21%, despite a $15-20 million headwind from expanding into new markets. The company also aims for a 54% gross margin and a 3% Adjusted EBITDA margin, which, if achieved, would bring profitability within reach.

The company's product lineup, particularly the Control-IQ+ system, has been well-received and validated by medical journals. Over 30% of U.S. patients now have pharmacy benefits covering the Mobi system, reducing costs for users and highlighting the life-changing impact of Tandem's technology.

However, Tandem Diabetes Care faces several risks, including operating losses, global expansion challenges, intense competition, and a tightening balance sheet. The company's cash reserves dropped to $368.6 million from $438.3 million at year-end, underscoring the need for continued investment in growth.

In conclusion, Tandem Diabetes Care's Q1 results reflect a company with strong growth potential but also significant challenges. Investors should consider the long-term vision and the company's commitment to innovation, while also being prepared for volatility and the potential for delayed profitability.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.