Tandem Diabetes Care Q2 2025 Earnings Call Transcript

Quartr
Provided by Quartr
August 6, 2025

Key Takeaways

  • Positive Sentiment: Tandem reported record second-quarter sales of $241 million globally—US sales rose 9 % to $170 million and international sales hit $70 million—driven by strong pump shipments and high renewals.
  • Positive Sentiment: The company accelerated its pharmacy channel initiative, adding Mobi pump in pharmacies and planning to sell t:slim supplies via pharmacy in Q4 to lower patient costs and boost revenue.
  • Positive Sentiment: Gross margin expanded to 52 % in Q2, and full-year non-GAAP gross margin guidance was raised to 53 %–54 %, with a target of 60 % by end of 2026 as Mobi volumes scale and pharmacy sales grow.
  • Negative Sentiment: Despite international strength, Tandem lowered its US sales outlook to about $700 million for 2025 due to commercial system upgrades and heightened competition expected in the second half.
  • Positive Sentiment: Type 2 diabetes pump pilot saw higher adoption in targeted territories, and a proposed CMS rule change could expand insulin pump coverage to ~1.3 million Medicare patients using intensive insulin therapy.
AI Generated. May Contain Errors.
Earnings Conference Call
Tandem Diabetes Care Q2 2025
00:00 / 00:00

Transcript Sections

Skip to Participants
Operator

Good day, and thank you for standing by. Welcome to the Tandem Diabetes Care Second Quarter twenty twenty five Earnings Conference Call. At this time, participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press 11 on your telephone.

Operator

You will then hear an automated message advising your hand is raised. To withdraw your question, please press 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Susan Morrison, Executive Vice President and Chief Administrative Officer. Please go ahead.

Susan Morris
Susan Morris
EVP & Chief Administrative Officer at Tandem Diabetes Care

Hello, everyone, and welcome to Tandem's Second Quarter twenty twenty five Earnings Call. Today's discussion will include forward looking statements. These statements reflect management's expectations about future events, our product pipeline, development timelines, and financial performance and operating plans and speak only as of today's date. There are risks and uncertainties that could cause actual results to differ materially from those anticipated or projected in our forward looking statements, which are described in our press release issued earlier today and under the Risk Factors portion of our most recent quarterly report on Form 10 Q. Today's discussion will also include references to a number of GAAP and non GAAP financial measures.

Susan Morris
Susan Morris
EVP & Chief Administrative Officer at Tandem Diabetes Care

Please refer to our earnings release issued earlier today and available on the Investor Center portion of our website for a reconciliation of these measures to their most directly comparable GAAP financial measure and other information regarding our use of non GAAP financial measures. Today's call will be led by John Sheridan, Tandem's President and CEO, who will be joined by Lee Vossler, Executive Vice President and Chief Financial Officer. Following their prepared remarks, the operator will open up the call for questions. Thank you in advance for limiting yourself to one question before getting back in the queue. John, you may begin.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

Thank you, Susan, and thanks everyone for joining our call today. Looking back at the 2025 and the second quarter in particular, I'm proud of the progress our team has demonstrated. We achieved record second quarter sales both in The US and internationally. We've strengthened our business model by progressing our multi channel market access strategy, including accelerating our pharmacy channel initiative. In addition, we made meaningful progress in transforming key business systems to improve our commercial teams effectiveness and increase profit margins.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

Lastly, we achieved significant product development milestones in Q2 that keep innovation at the heart of our business and lay the foundation for future growth. We'll be speaking to each of these accomplishments on today's call and we'll also provide color on how we're thinking about the back half of the year. Starting with the commercial update, in The U. S, we saw year over year increase in pump shipments. This includes continued double digit growth in renewals.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

Renewals were just over half of our pump shipments and is a trend we anticipate will continue through the end of the year, which demonstrates our strong retention. Our growth in pump shipments also reflects the adoption of our technology by people using multiple daily injections. People converting from MDI once again made up about two thirds of our new pump starts this quarter, which is a reflection of our continued focus on attracting people who are new to pump therapy. We continue to be an industry leader in new durable pump starts. This is a testament to our technology and the transformation we've been making in Tandem's commercial organization.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

We've broadened our operations and refined processes while investing in systems and talent. Our technology also continues to stand out among customers and healthcare providers with number one ratings in categories such as reducing the burning of living with diabetes, performance of an AID algorithm, clinical outcomes and favorite pump. I recently heard a customer comment that Control IQ remembers when I forget. It was a succinct and powerful statement that captures what we strive for, improving the lives of people with diabetes. Our high customer satisfaction scores reflect that we are furthering this mission.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

Tandem Mobi, our newest pump platform continues to receive positive feedback for its versatility in wear, comfort and flexibility to detach. It was a key contributor to new user demand at Q2, as evidenced by year over year increases in its adoption. This comparison is important because Q2 of last year was the first full quarter that Mobi was available and it likely benefited from some pent up demand. Mobi also represented a greater percentage of our new pump starts in Q2 compared to a year ago, on track for achieving our near and longer term financial goals. We are pleased with Mobi's performance and our goal remains to expand its addressable market through additional features and integrations, starting with the addition of Android control before the end of the year.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

Our flagship pump t:slim X2 continues to receive high customer satisfaction scores for its larger volume insulin reservoir, multiple sensor integrations, and the convenience of having touchscreen control on the pump. In the second quarter, we announced t:slim's compatibility with Abbott's Freestyle Liberty three plus sensor. Early access for this integration is now underway, and we plan to expand to full U. S. Availability this fall, followed by launching internationally and integrating with Tandem Movi.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

Another exciting market expansion opportunity is our ability to bring Tandem's technology to people with type two diabetes. Following FDA clearance earlier this year, we began to pilot type two commercial activities. This provided valuable insight for our portfolio positioning, Salesforce planning, patient training and reimbursement strategy. In the pilot territories, we saw a greater type two adoption compared to the non pilot areas. The strength of our New England Journal data and the value proposition provided compelling evidence that Control IQ plus is easy to start, easy to use, and easy to personalize.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

This lends itself to a new and exciting development and our active efforts to drive improved access for the type two Medicare patient population, which includes approximately one point three million people with diabetes use insulin intensive therapy. The Senate Appropriation Committee recently approved a bill that would require CMS to adjust coverage for insulin pumps to ensure that all requirements, including measurement of C peptide levels are consistent with clinical standards of care. If enacted, CMS would be required to provide a briefing within one hundred and eighty days. In the third quarter, we are expanding our type two efforts, which will continue throughout the remainder of the year. One of our top priorities is improving channel access by reducing the barriers that discourage people from adopting pump therapy.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

We will discuss more on our pharmacy channel progress, but there is one update that I would like to highlight. Beginning in Q4, we plan to start selling t:sim supplies through the pharmacy channel to our eligible customer base. It's exciting evidence of our business transformation and important for our current t:slim customers as it can make pump therapy more affordable. Turning to our international markets, the team delivered strong overall performance, driven by demand for t:slim, increasing pump renewals and growing supply sales. Commercial efforts are also underway prepare for the launch of Tandem OBI as we recently received CE Mark.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

We are now pursuing additional regulatory and pre commercial activities such as securing in country registrations and reimbursement. We are also continuing the rollout of the mobile app and Tandem Source that are prerequisites for Moby's launch. Operationally, we plan to begin direct sales in select countries next year, and our preparations are progressing well. We continue to attract and hire in country talent, and our team is executing well against our transition plans. This shift is a pivotal step for Tandem to globalize our leadership, deepen relationships within the European diabetes community, strengthen our financial position by accelerating sales growth and driving margin expansion.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

I am very pleased with the progress we've made so far this year in preparing for the transition and the current sales trends that we've delivered. As you can see, there have been many strengths in our performance for the 2025, where we delivered top line growth whilst demonstrating margin improvement. We also gained a number of insights that inform our thinking about the remainder of the year. Overall, we expect to achieve $1,000,000,000 in worldwide sales, which is a significant milestone and goal for our company. Sales from international will be a bigger contributor than originally anticipated with more moderate growth in The U.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

S. As we progress our commercial transformation. The team remains laser focused on bringing the benefits of our technology to people living with diabetes worldwide and expanding the large and under penetrated markets we serve. I'll now turn the call over to Leigh for more on our second quarter results and updated financial assumptions for the year.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

Thanks, John. As a reminder, unless otherwise noted, the financial metrics I'll be discussing today are on a non GAAP basis. Reconciliations from GAAP to non GAAP results can be found in today's earnings release, as well as on the Investor Center portion of our website. Please note that 2025 sales and margins in The U. S.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

Are no longer impacted by the Tandem Choice program, which ended in 2024. U. We started the year strong, delivering year to date worldwide sales of $475,000,000 or growth of 15%. The majority of this growth was driven by pump and supply volumes with 4% pricing improvement year over year, which also contributed to gross margin expansion. For more than a year, we have been setting new quarterly records each and every quarter, both in The U.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

S. And internationally. Second quarter worldwide sales of $241,000,000 set another record for highest second quarter sales in both The US and OUS markets. US sales in the second quarter were 1 and $70,000,000 representing a 9% increase over the prior year, which was the first full quarter of Movi availability. The demand for our portfolio of products remains high from new existing customers is evident both in growing renewal and pump supply sales.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

Our focus on channel management and expansion also drove a meaningful year over year increase in average selling price, primarily through our DME channel efforts. Pharmacy volumes remain small relative to our overall pump sales, but we continue to enhance our operational capabilities and validate our assumptions for this opportunity. Our entry into the pharmacy channel was predicated on two objectives, to lower out of pocket costs for our patients and to drive sales and margins more in line with industry comps. We are still in the early stages, but are already seeing examples of patients paying zero upfront out of pocket under our current agreements. The pharmacy contracts we have signed are similar in reimbursement structure and revenue recognition to our DME contracts, but we also continue to discuss pay as you go models, which we are confident in our ability to support.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

Our experience to date underscores our confidence in meeting our business goals for pharmacy expansion. We are working aggressively to build on this opportunity in multiple ways. Our team is making great progress in our conversations with PBMs and payers to expand insurance coverage under the pharmacy benefit. We currently have approximately 30% of US lives under coverage and anticipate signing additional meaningful contracts in the upcoming weeks that will be available immediately. We are also expanding our pharmacy distribution network to maximize the patient access we currently have, which provided incremental benefit this quarter through initial stocking orders.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

Last, we are advancing our strategy by beginning the contracting process to offer patient access for tSlim supplies in the pharmacy channel. Considering we have an installed base of several 100,000 tSlim users in The US, this could provide meaningful benefit as we build on our pharmacy coverage for t slim beginning in the fourth quarter of this year. Recently, CMS issued a proposed rule that updates Medicare payment policies and rates for DME providers, including two changes for insulin pumps. The first is a proposal to alter the reimbursement structure for pumps from a thirteen month rental to a pay as you go model. Similar to my pharmacy comment, we are confident in our ability to support pay as you go.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

The second proposal is to include pumps in competitive bidding, which is a Medicare initiative designed to reduce costs and improve access. Overall, traditional Medicare represents a small portion of our business at less than 10% of our US sales. Should CMS move forward with the proposals as written, it's an opportunity to bring TANOS technology to more people living with diabetes, and the structural changes may ultimately provide benefit to our business. We plan to participate in the current comment period and anticipate final release in November. Now I will turn to our performance outside The United States.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

As a reminder, last quarter, we noted a $5,000,000 shift in timing of sales from the second quarter into the first quarter. In the second quarter, we also experienced slight headwinds from distributor inventory adjustments in preparation for our transition to direct operations in 2026. Yet, we were still able to deliver record second quarter sales of $70,000,000 We saw benefit in the quarter from early traction and renewals as well as favorable currency dynamics. Moving to our company's margin performance, a key objective for our business is demonstrating improvement in profit margins. Our plans for driving gross margin expansion and operating leverage this year are on track as evidenced by our second quarter results.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

Our second quarter gross margin was 52%, reflecting an increase both year over year and compared to the first quarter. Pricing was the primary driver offset partially by product mix and non manufacturing costs. Importantly, the Mobi platform is a key driver to our long term gross margin expansion and its benefits are beginning to materialize as we gain more manufacturing experience and scale volumes. The Mobi cost per pump has already improved meaningfully year over year, and the platform margins are expected to continue improving over the course of the year as pump and cartridge volumes grow. From an operating expense perspective, I'm particularly impressed by the execution of our teams to deliver on our profitability targets while making meaningful progress to prepare our people, process and technology for our next wave of growth.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

We are taking action to both modernize how we go to market through a combination of efforts within the Salesforce channel, technology, and process redesign with the goals of offering an elevated customer experience while scaling head count more efficiently. These changes position us to compete in a highly competitive market, while also delivering profitable growth. As a result, operating expenses grew 10% year over year, driven by SG and A investments. Going forward, we expect these investments to be offset by savings, which will begin to provide benefits in the second half of the year. R and D expenses were essentially flat year over year, a result of our continued focus on efficient delivery of new innovations.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

We ended the quarter with $315,000,000 in total cash and investments. The quarter had two noteworthy uses of cash. First, our twenty twenty five convertible notes matured in May, and we settled the balance of $41,000,000 using existing cash. Second, we paid 8,000,000 as the first of five annual installments towards a $36,000,000 settlement agreement that includes a ten year worldwide nonexclusive patent license and a covenant not to sue. We view this as a positive development that will allow us to focus on innovation in our business and for our customers.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

Looking at 2025 overall, we are on a path to achieving double digit growth of 1,000,000,000 in 2025 worldwide sales and have updated our guidance accordingly. In The US, we anticipate more moderate growth in the back half of the year, which reflects The US dynamics between our commercial evolution and the competitive environment, partially offset by benefit from the pharmacy channel opportunity. Outside The United States, our sales performance confidence has increased as we continue to drive our international strategy. In particular, we had assumed a 15,000,000 to $20,000,000 headwind associated with going direct. We now believe the headwind will be reduced to approximately $10,000,000 and we expect continued strength in growing the market overall.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

With these updated assumptions, the expected geographic mix will be sales of approximately $700,000,000 in The U. S. And $300,000,000 outside The U. S. Turning to margin expectations, we are executing to both our manufacturing and operational goals.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

We anticipate achievement of gross margin in the range of 53% to 54% as a reflection of the change in geographic mix of sales and expect to see margins expand across the quarters as pump sales increase and additional Mobi efficiencies are gained. Impact from tariffs has been negligible, and we expect that to continue. Importantly, we remain on track to reach the quarterly milestone of 60% gross margin as we exit 2026. From an adjusted EBITDA perspective, we are no longer excluding expenses for in process research and development in our non GAAP results in order to align with views recently expressed by the SEC. Therefore, our adjusted EBITDA guidance for 2025 is now being recast from positive 3% to negative 5%.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

This change is solely driven by negative eight points of margin for the $75,000,000 IP R and D charge associated with AMF Medical that occurred in the first quarter. In support of our operational EBITDA margin goals, even with our growth investments, initiatives to deliver efficiencies are expected to begin materializing in the 2025 with increasing benefit in future years. We also anticipate returning to positive free cash flow in the 2025. I'll now turn the call back to John.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

Thanks, Leigh. I'd like to express my thanks to our employees for their outstanding hard work so far this year. In addition to the progress they are driving across our business, I'm also proud of how the organization quickly addresses issues when they arise. Last month, we initiated a field correction notice to inform tSlim users that we identified certain speaker versions that have higher than normal failure rates. We are taking necessary steps to address this issue, and there are no changes to our financial expectations as a result of this notification.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

We wanted you to be aware as we will be taking measures to aid customer awareness, such as issuing a press release. The final topic I'd like to discuss today is our new product initiatives and our pipeline continues to be the most exciting in insulin therapy management. Our distinctive technology ecosystem includes insulin pump systems, advanced algorithms and a digital health solutions. And I'll have a few updates to highlight today. SteadySet is our proprietary infusion set technology.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

In the second quarter, our team submitted a SteadySet five ten in pursuit of extended wear time. I am proud of how swiftly the team executed our regulatory strategy to file the submission. It serves as a great example of the urgency our teams are demonstrating across the business. I'm also excited to share that our extended wear technology is now incorporated in the Mobi tubeless design, which provides users the option to wear Mobi as a tubeless patch pump. It's an innovative solution for people who are interested in versatile wear options and gives the users the opportunity to change their insulin cartridge and infusion site independently each other, which helps minimize insulin waste.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

This feature is of strategic importance as we believe extended wear time will be a benefit to people living with type two diabetes who often have greater insulin needs. Last, I'd like to thank everyone who was involved in the fully closed loop trial we completed in the second quarter. Our internal and external research efforts today have been foundational in shaping our longer term objectives for a fully closed loop system and remain committed to advancing our R and D efforts. Looking ahead, we continue to make meaningful progress in our collaboration with University of Virginia Center for Diabetes Technology. In addition to these updates, we are working closely with both Dexcom and Abbott on new technology integration and continue to advance our city patch pump platform.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

In conclusion, we are doing the right things to position tandem for success with our product portfolio, commercial evolution and by strengthening our core business model. Each of these initiatives supports Tandem's commitment to sustainable long term growth and improve profitability while reaffirming our dedication to enhancing the lives of people with diabetes. Thank you again for joining us today. We look forward to keeping you updated on the company's progress.

Operator

As a reminder, to ask a question, please press 11 on your telephone Our Our first question comes from Matt Miksic with Barclays. Your line is open.

Matt Miksic
Equity Research Analyst at Barclays Investment Bank

Hey, thanks for taking the questions. So, I had a question on the CMS proposal since that seems to be kind of in the front of everyone's mind about bumps that like yours that have been sold through that channel. Can you give us a sense of how you think, you know, if if that were to go ahead to and maybe that's maybe that's the the crux of the question is if that were to go ahead, but maybe if it were to go ahead as as sort of sketched out or something similar, how you'd anticipate that, affecting your business, both kind of top and bottom line? And then I just have one follow-up.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

Sure. Thanks, Matt. I guess I'll just start by saying we do not believe it will have a material impact on our business. And in fact, we anticipate it could help drive more people to pump therapy. So when we think about it, traditional Medicare is less than 10% of our sales.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

So it's not a very big impact overall. And transitioning to a pay as you go model is something that we contemplated anyway from a commercial perspective as we've pursued the pharmacy channel. And so when we think about it transitioning for Medicare, we see that as a positive as well. So overall, we will continue to monitor this closely. We'll be participating in the comment period and we look forward to hearing the final ruling later this year.

Operator

Thank you. Our next question comes from Matt Taylor with Jefferies. Your line is open.

Matt Taylor
Managing Director at Jefferies & Company Inc

Hi, thanks for taking the question. I was hoping you could talk a little bit more about the pharmacy progress. And John, you said on the prepared remarks, there's this access that's going to open up in Q4 for supplies. I guess on that specifically, is there a benefit for Tandem in terms of pricing? And maybe just help us understand how much progress you've been making and how material pharmacy overall could be in 2026?

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

Sure. So I would say, overall, we're super excited about the pharmacy channel opportunity and and actually advancing our multichannel strategy. There are so many ways that it can benefit the business for us. First of all, it can just bring more volume to Tandem as we work to lower the out of pocket cost for patients and bring more people to pump therapy overall. Secondly, we see it as a revenue driver and profit improvement opportunity because the pricing is at a premium to what we see in DME today.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

Up to now, it's still a very small percent of our business of our U. S. Pump sale or U. S. Sales overall when we think about it because it's so far it's just Mobi that we've introduced into the channel in the first six months.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

And we've been very focused on operationalizing and really looking for ways to maximize the coverage that we have today. So with 30% of covered lives, we already have a really good start. We have some other contracts we expect to sign here in the coming weeks to increase that coverage already this year. And then by moving t:slim supplies into the pharmacy channel, that's another way to really elevate or I would say accelerate what percent of our business pharmacy can represent for us. That benefit will begin in the fourth quarter.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

And so as we look ahead to 2026, we're not giving any numbers yet or color on how to think about it, but just know that it is one of the key levers for driving our business going forward.

Operator

Thank you. Our next question comes from Chris Pasquale with Nephron Research. Your line is open.

Carol Wong
Equity Research Analyst - MedTech at Nephron Research LLC

This is Carol on for Chris. I thought it was a nice raise in the guide for OUS. It seems like it's less about the sales transition and staff bump. Just kind of curious if you can share a bit more commentary on why that change in the outlook. Thanks.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

Sure. So our OUS business has been performing very well, and we're really excited about it. Another area that I think is vastly underappreciated for how we're driving the business there. What we've seen is great strength and performance in the first half of this year. And as we're preparing to go direct, we had anticipated that we might see some headwinds this year as distributors reduce their inventory levels or destock in advance of that transition.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

What we've seen so far is some limited destocking activity. And it's also we've changed our expectations on how much that headwind could be for the year. So we originally estimated 15,000,000 to $20,000,000 and now we think it'd be closer to something like a $10,000,000 headwind. One exciting point too is that in the markets, we're beginning to see the signs of early traction in our renewal opportunities. So far that business has been growing almost solely based on new market development as we expand the MDI market and we also get competitive conversions.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

But now renewals, have been such a reliable recurring revenue stream in The U. S, will become a better opportunity for us outside The U. S. And so that is what gave us the confidence to raise the guide for those markets for the remainder of this year.

Operator

Thank you. Our next question comes from William Plavonic with Canaccord Genuity. Your line is open.

Bill Plovanic
MD & Equity Research - Medical Technology at Canaccord Genuity - Global Capital Markets

Yes, great. Thanks. Thanks for taking the question. So I just wanted to kind of dig into the new patient numbers a little. Just by our math and looking at where the Street was, it seems like for The U.

Bill Plovanic
MD & Equity Research - Medical Technology at Canaccord Genuity - Global Capital Markets

S, maybe you outperformed on the new MDIs competitive about in line, but in terms of renewal, maybe a little lower. I don't think there is anything in the prepared remarks, any color on The U. S. Renewal rate? And then same on the OUS.

Bill Plovanic
MD & Equity Research - Medical Technology at Canaccord Genuity - Global Capital Markets

You just commented on it a little, but kind of what percentage of the mix was it? Thanks for taking my question.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

Sure. Excuse me. I'll start with The US piece of it. When we look at the mix of shipments in The U. S, our renewals grew double digits, and they represent a little more than half of the shipments this quarter.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

And so we do expect that trend to continue through the remainder of the year. It is one of our most reliable revenue streams, highly consistent capture rates, and we're seeing great traction and continued progress there from a renewal perspective. When we looked at new starts, they did grow from the first quarter into the second quarter. What we're seeing this year when you break down new starts between MDI conversions and competitive conversions is that MDI is outpacing from a growth perspective. We are still seeing a bit of headwind from a competitive conversion perspective, well in line with what we had anticipated as one of our large competitors has evolved in their business to some extent.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

And the opportunity itself is just lower this year than it has been in years past. And so we're very focused on how to drive the MDI opportunity because that's where we think we can win as we go forward in future years.

Operator

Thank you. Our next question comes from Anthony Petrone with Mizuho Americas. Your line is open. Anthony, please check your mute button. Our next question comes from Shagun Singh with RBC. Your line is open.

Shagun Singh
Shagun Singh
Director & Senior Equity Research Analyst - Medical Devices at RBC Capital Markets

Great. Thank you so much. I wanted to touch on The U. S. Guidance reduction.

Shagun Singh
Shagun Singh
Director & Senior Equity Research Analyst - Medical Devices at RBC Capital Markets

It seems like it's been lowered to about $700,000,000 now. You did talk about the commercial organization. Can you elaborate and maybe touch on what's going on there and how we should think about trends into the back half of the year? Thank you.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

Sure, Shagun. I just want to say, first of all, I think we had a really strong first half and a very strong second quarter. Obviously, we had record sales and sequential growth in gross margin, as well as a number of positive accomplishments along the way. As we entered 2025, we indicated that we were making some fundamental business transformations that we felt were really essential to bring us to the next level and help us deliver predictable double digit growth and profitability. We have a couple of key elements to that.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

First of all, Lee's talked about our multi channel market access product program with improved pharmacy channel coverage. We're modernizing the business systems that we used in our commercial organization to improve efficiency and effectiveness. We've got a great portfolio. We've also expanded the sales force. We're going direct to The U.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

S, and we have the Type two opportunity. We are making great progress on each of these initiatives, and we've accomplished a lot in the short term. I would say that some of the adjustments to The U. S. Numbers really acknowledges that a number of these initiatives are still in process, and that has delayed some of the benefit.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

So internally, I think we feel good about where we're at, but we're still implementing some of the work that's required to see the benefit of these transformational changes. I'd also say externally, we have the competition remains intense, but there is a new market entrance this quarter. And while we have very limited experience with their product, they have built a larger than expected sales organization. So we know it's going to generate a great deal of noise and it's likely to cause some pausing in the second half. And so, as I said, we're focused on building a strong organization.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

We're excited about where we are, but we're taking a realistic approach to the second half based on these factors.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

I think I'll add a point here too, as we think about the back half of the year on a worldwide basis. Often get the question how to think about the cadence of sales as we adjusted these expectations. And the way to think about the third quarter is that we expect to do about $235,000,000 in revenue worldwide. It's a slight step down from what we saw in the second quarter. Some of that has to do with some of the dynamics we saw.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

In Q2, we had some modest stocking benefit in The US. We also had some foreign currency benefit outside The US. And so there's a slight step down going into the third quarter. And obviously, then we still expect to see a strong fourth quarter as we tend to do with the seasonal curve.

Operator

Thank you. Our next question comes from Lawrence Biegelsen with Wells Fargo. Your line is open.

Lawrence Biegelsen
Lawrence Biegelsen
Senior Medical Device Equity Research Analyst at Wells Fargo

Good afternoon. Thanks for taking the question. The press release talks about sustained double digit growth. Is referring to 2026? And if so, how do you get there with The U.

Lawrence Biegelsen
Lawrence Biegelsen
Senior Medical Device Equity Research Analyst at Wells Fargo

S. Renewal opportunity being flat on a year over year basis in 'twenty six for the first time in many years? Thanks for taking the question.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

Yes, so when we talk about that, that's our long term goal that we plan to drive in the coming years, not just one year in particular. Renewals, as I mentioned earlier, been such a strong piece of our business. In fact, our recurring business between renewals and supplies is now about 75% of our US sales. And you're correct. When we look ahead to next year, the number of new opportunities coming to market from a renewals perspective will be flat to what we saw this year.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

There's still a sizable growth opportunity for us with renewals all by themselves because of the way the waterfall works. And so when we have people renew, it's not right after their warranties expire. Over the course of about eighteen months, we capture about 70% of our customers whose warranties expire. So there's still a pretty sizable tail, if you want to call it that, from people who came to market last year and this year. And so then that will help drive the growth in 2026.

Operator

Thank you. Our next question comes from Josh Jennings with TD Cowen. Your line is open.

Analyst

Hi, this is Brian here for Josh. Thanks for taking the question. On the updated gross margin guidance, the 53% to 54% is pretty comparable to the prior guidance. Is there something that's offsetting what I assume would be margin pressure from the change in mix? Is that an impact from Mobi outside The U. S? Thanks.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

Sure. I'll talk about the benefits that we expect to see in gross margin this year. The first one comes from Mobi as a platform. Pump is starting to see that improvement in terms of cost per unit, which we anticipated this year. So, as we progress through the remainder of the year, we'll see benefit as comp sales increase overall.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

But as MoBI becomes a bigger contribution and continues to scale in volumes, that overhead rate will come down cartridges for MoBI as well. The real impact we begin to start to see will be in 2026, but we'll start to see some of that as we get closer to the end of this year. One of the second opportunities for gross margin comes from our pharmacy channel expansion. And with moving Keystone supplies in there, that gives us even more opportunity to expand the margins this year and increase the profit. And so, the reason that it is now 53% to 54% is purely based on the change in the geographic mix, which affects how margins play out.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

And so, The U. S. And OUS dynamics, we now expect to be in the range of 53% to 54%.

Operator

Thank you. Our next question comes from Danielle Antalffy with UBS. Your line is open.

Danielle Antalffy
Danielle Antalffy
Analyst at UBS Group

Hey, good afternoon, guys. Thanks so much for taking the question. Just a quick question on the new patient starts in the quarter and pump shipments. And just curious if you could comment you know, where you think the market where market growth might be. And I know I appreciate we have some of your competitors yet to report.

Danielle Antalffy
Danielle Antalffy
Analyst at UBS Group

But, obviously, there's some share dynamic versus market growth dynamics here. Curious if you could parse that out. Have you seen competitive pressures actually increase another market entrant? Anything you can say about that in The US? And I'll just leave it at that. Thanks so much.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

Sure. We typically don't comment too broadly on how we think the others are performing in the market. We do know that we have been a leader in durable pump starts and expect to continue to have that position as we look ahead. We do believe the market is still growing overall. It's large and under penetrated.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

There's room for us to grow as well as the other companies that participate in it. And so, overall, we look forward, we believe we have ways to drive that opportunity as well within our own business between our product portfolio, our pharmacy channel expansion, where we can lower the out of pocket costs for patients can help us attract more and more patients to durable pump therapy. And so we feel like we will, as I said, maintain that leadership position.

Operator

Thank you. Our next question comes from David Roman with Goldman Sachs. Your line is open.

David Roman
David Roman
Managing Director at Goldman Sachs

Thank you. Good afternoon. I want just to touch strategically on the business as you look forward. You've been consistently committed to the model of a multi pump platform to serve different channels within the market. But as you reflect kind of on the evolution of the business where you are today and the profitability, is that a strategy you think you can reasonably continue to execute given the resources you have and a competitive landscape where each of your competitors are uniquely focused on single platforms?

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

I think we continue to believe that the portfolio approach is the right approach. I think that when you look at the marketplace that's very segmented, there's different people want to wear, control and interact with their devices in a unique manner. And I think that if we were to focus on any one of those particular devices you don't cover the entire spectrum. I think that you know with a product that has a touchscreen and the 300 unit you know reservoir we're seeing continued interest and growth in that product. We do believe that having the versatility of Mobi that will be first of all it'll be tubed and tubeless giving people a great deal of versatility is an important product and that we think that there's absolutely a market for a tubeless only pump.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

I think over time we will continue to evaluate it but as feel as we stand right now you know we feel that we still need to have these products. I will say that the organization is making a great deal of efforts internally to drive efficiencies and how we design I would say mobile apps and sensor integrations so that these things are actually easier to implement than might meet the eye. And so I think that you know as you just saw from Lee's report we've actually maintained our R and D spending flat over the last quarter and we had continued to expect to see the efficiencies in our R and D spending while continuing to drive a very innovative pipeline.

Operator

Thank you. Our next question comes from Richard Newitter with Truist Securities. Your line is open.

Felipe Lamar
Felipe Lamar
Senior Equity Research Associate at Truist Securities

Hey, this is Felipe on for Rich. Just the Type two opportunity And I know you guys have talked about like a limited scale launch. I'm just wondering like can you help us understand the decision to start with a limited launch when you're only one of two pump manufacturers with an indication for the population. It seems like a big opportunity and just put that in context with your expectations for patient starts on the go forward. Thanks very much.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

Yeah, mean you're right. We think that the type two indication obviously doubles the size of the addressable market. We're very excited about that. You know I think that the pilot was something that we felt was important to really understand the market before we stepped on the gas. We did not want to make any kind of footfalls.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

We wanted to get it right from the beginning. And I will say that if you look at the pilot territories over the last quarter they have performed better in type two adoption. We're excited about that. I'd also say that right now we are expanding the type two efforts to a significant number of new territories based on the experiences that we've had in this past quarter and we also we intend to continue the expansion through the remainder of the year. So you know I think we're happy with the experiences that we've got.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

We've learned a great deal in that quarter and we're now applying that to the you know a broad much broader percentage of our sales territories in The US. So we think it was a wise thing to do and we're benefiting accordingly as we do this expansion right now.

Operator

Thank you. Our next question comes from Jeff Johnson with Baird. Your line is open.

Jeffrey Johnson
Senior Research Analyst at Robert W. Baird & Co

Thank you. Good afternoon, guys. Lee, I was hoping I could ask again on the international pump starts number in the quarter. I think the last three quarters I have you, and I know it's tough with a lot of moving pieces, you don't give a ton of exact detail there. But I've got your new starts internationally up anywhere from 15% to 25, 30% the last three quarters.

Jeffrey Johnson
Senior Research Analyst at Robert W. Baird & Co

This quarter, in my model, they're looking like they might have been down 10% or 15%. To get to your updated, even your higher second half guidance. I've got you down even if I adjust for some inventory drawdowns 20, 25% in the back half of this year on new starts internationally. Just can you confirm maybe my ballpark math there and maybe what's going on with fundamental trend ex some of those moving parts? Thanks.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

Sure. Maybe I'll start with one thing to remind about the first quarter and the second quarter was that we did have a timing shift of orders in the first quarter. We recognized about $5,000,000 of orders and supplies that we originally anticipated in the second quarter. And so there's a bit of that that's going on between the two. And then that means that what you see externally isn't necessarily indicative of the demand and the placements in the market.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

What I can confirm is that our placements on patients did grow year over year. And so, are still performing very well. We just have those timing variables that are a piece of it. And I'll add the other element to this quarter. We did start to see the beginning of some destocking within one of the key markets where we plan to go direct next year.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

And so shipments did reflect a lower number where again, placements still showed growth. So, I think maybe that will help.

Operator

Thank you. Our next question comes from Mike Kratky with Leerink Partners. Your line is open.

Brett Gasaway
VP - Equity Research at Leerink Partners

Hey guys, thanks for taking the question. This is Brett on for Mike. Just wanted to go back to the 60% gross margin target exiting 2026. I mean, you have pharmacy penetration broadly getting better with t:slim coming in 4Q, Mobi Pump helping, Mobi Cartridge helping next year. What gives you the confidence that you can reach that 60%, maybe Mobi Tubeless coming next year as well?

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

Yes. So, when we refer to that 60% next year, we're speaking to the quarterly rate as we exit the year. So, if you think about the path of gross margin in any calendar year, it scales up from the first quarter into the fourth quarter, just based on the growth in U. S. Comp shipments following the seasonal curve, if nothing else.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

And so, from where we are today and how we expect to exit this year in mid to high 50s, it's not a stretch to be able to see us achieving that 60% in a year from now, particularly now that we've shared, we've layered on incremental opportunity from our pharmacy expansion with T cell supplies, considering we have hundreds of thousands of customers today that without even purchasing another pump, we can transition them to the pharmacy channel on the supply basis and increase our profits. And so, as you said, Mobi, of course, is one of the big drivers. I think what's great is we talked about Mobi for so long as being could be a contributor. And now we're actually seeing it in our results. And so it's a proof point for our ability to drive and why we feel so confident for next year.

Operator

Thank you. Our next question comes from Anthony Petrone with Mizuho Americas. Your line is open.

Anthony Petrone
Anthony Petrone
MD - Equity Research at Mizuho Financial Group

Thanks. Apologies earlier, just juggling a bunch of earnings calls. So, thanks for getting us back in here. A question on Libre three and the t:slim opportunity, that combination specifically. Just wondering when you look at the expansive Libre three installed base, how much of that represents white space for t:slim specifically? And then I'll have a quick follow-up.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

Yeah, I'd say that if you look at The US market, the last time I recall hearing from Abbott, they have 300 to 400,000 people in The US that use the Libri pre sensor but do not use pump therapy. And so I think that we're very excited about it. I mean we're in the midst of our early access and as I said in the call, we intend to go to full commercial availability here this fall. So we think it's a huge opportunity and I think that there's existence proof as well if you look in the OUS markets there is a company in the OUS markets who does have free site delivery through integration. In a relatively short period of time they've got about 50,000 people using the device.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

So our market research in The US indicates that there are people who are absolutely interested in pump therapy and for one reason or another they don't have today. But we think it's a wide open opportunity for us and we're excited to get there.

Operator

Thank you. Our next question comes from Joanne Wuensch with Citi. Your line is open.

Joanne Wuensch.
Joanne Wuensch.
Managing Director at Citi

Thank you so much for taking the question, and good evening. International seems to be going a bit better than previously expected. Can you just sort of give us an idea of how you look or think about that rolling out into 2026 and how you think about adding maybe more direct salespeople and or more regions? I appreciate it.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

Yes. Thanks, Joanne. So we've already started this year, in the first half of the year, with investments that we're making in those markets outside The US, building up the systems, hiring the talent, doing more in-depth market research for how we're going to approach those markets to make that transition. And so we look forward to the ability to start taking some of these operations direct. We feel like we can drive them in a different way with an intimacy that we have with our own products that maybe our distributors don't have today.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

It also just structurally provides an opportunity because we will release some of that pressure that we have on revenue where we give up price in order for our distributors to fund their operations. And so we should see some revenue and some margin benefit as we begin these transitions outside The U. S.

Operator

Thank you. Our next question comes from Travis Steed with Bank of America Securities. Your line is open.

Stephanie Piazzola
Stephanie Piazzola
VP - Equity Research at Bank of America

Hi, this is Stephanie Piazzolla on for Travis. Thanks for taking the question. On the lowered U. S. Guidance, could you talk a little bit more about maybe what changed versus last quarter on the commercial evolution side?

Stephanie Piazzola
Stephanie Piazzola
VP - Equity Research at Bank of America

And is there any way to think about how much of the lower guide is related to that versus the newer competitive entrant headwind that you called out? Thanks.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

Well, think the commercial transformation is it's made up of its Salesforce expansion coupled with upgrades that systems, tools and processes that we use to manage the interaction between the sales team and customers and HCPs. And if you look at the key metrics during the first half of the year, saw rep productivity improve quarter over quarter, but these new systems and sales tools are just not completely implemented yet. And so I think it's just we're as I said, we're just trying to be realistic about the second half. We're not where we want to be in terms of implementation. But we certainly understand that these are key steps to take to make ourselves more competitive in the future.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

And I think it's also just be cautious, I'd say, when you consider there is a new player with a large sales force and anytime we see a new product in the market, we see pausing. And so it's difficult to say which of the two, but I would say that they're both there and we're just trying to take that into account being realistic as we forecast the second half.

Operator

Thank you. Our next question comes from William Plavonic with Canaccord Genuity. Your line is open.

Bill Plovanic
MD & Equity Research - Medical Technology at Canaccord Genuity - Global Capital Markets

Yes, great. Thanks for taking my follow-up. I'm just curious, you talked about pharmacy contributed some in Q2 as maybe some of those new partners started to build some inventory. I'm wondering how much of a contribution was that? And because I mean, your US number was basically in line, so that was obviously a boost.

Bill Plovanic
MD & Equity Research - Medical Technology at Canaccord Genuity - Global Capital Markets

And how much did you expect coming into the quarter? Thanks.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

Sure. Great question. We didn't specifically quantify, but I can say it was a few million dollars benefit that was provided, which is why when you think about going from Q2 to Q3 in The US, where we usually see, some of the call flattish revenues because of just the seasonality. We expect to see a similar type of step down going into the third quarter based on some of those stocking dynamics. We do think this is a really important step.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

This will really help us capitalize on that pharmacy opportunity that we have as we even with the coverage in hand today, we can have a broader reach by extending these distributor networks.

Operator

Thank you. Our next question comes from Jason Bedford with Raymond James and Associates. Your line is open.

Jayson Bedford
Jayson Bedford
MD - Medical Technology at Raymond James Financial

Good afternoon. Thanks. Just on The U. S. Pump guidance, think you hinted at it earlier, but historically you talked about a fifty-fifty split between new users and renewals.

Jayson Bedford
Jayson Bedford
MD - Medical Technology at Raymond James Financial

With the latest guide, what is the expected mix between new users and renewals in 'twenty five?

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

Yes. Great question, Jason. So, we do now expect that renewals will be a little more than half as we go throughout the year. As we made our updates to our guidance, it was really more a factor of our expectations for new pump starts. We had originally had an assumption that those would grow mid single digits year over year.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

Now, more likely those will be flat to slightly down. And so that's the primary change in the guidance update.

Operator

Thank you. Our next question comes from Anthony Patron with Mizuho Americas. Your line is open.

Anthony Petrone
Anthony Petrone
MD - Equity Research at Mizuho Financial Group

Just a quick follow-up again on the difference in renewals. You have more Type IIs coming in relative to Type I. Is there anything notable there? But I guess the math is suggesting that your retention rate in Type IIs is somewhat better. I don't know if that's a fair statement. Thanks for taking the follow-up.

Leigh Vosseller
Leigh Vosseller
EVP, CFO & Treasurer at Tandem Diabetes Care

Sure. We don't usually speak to type one and type two in the renewal versus new population. But what I can share there is that our type two have generally been in the five plus mid or high single digits, as I guess I would say, as a percent of our overall shipments. And we don't typically see a difference in terms of retention of those types of customers. We are excited going forward with our type two initiatives and hopefully some positive movement on the reimbursement side that we can really maximize and start to see type two grow as a percent of the business and help drive incremental growth in future years.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

You. I'm just going to insert myself here for a moment. I'm surprised we didn't get more pipeline questions. And I just want to go ahead and talk about some of the exciting things that we do have going on. As I mentioned in the prepared remarks, we did get we did submit steady set for the extended wear infusion capability, which was we're really excited about.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

And you know, right now we're working on, you know, just as soon as we get approval we'll be working on seeking reimbursement and we're also building out the manufacturing capabilities. But you know I'm excited to indicate that we plan to launch SteadySet in The US markets in 2026. Along the same lines as we made this decision to incorporate the extended wear technology into the tubeless version of Mobi. You know Mobi the tubeless Mobi obviously will allow people to wear it as a tubeless pump which provides great versatility and wear, but it also enables people to change the cartridge and infusion site independently which we believe will save on insulin usage. It's also going to be beneficial to type two users who just obviously use more insulin on a daily weekly basis.

John Sheridan
John Sheridan
President, CEO & Director at Tandem Diabetes Care

So as I mentioned in the past, we are in V and V testing and manufacturing build out for tubeless MoBI, but I do want to let you know that we also plan to launch tubeless MoBI in The US markets in 2026. And we think that these are two really exciting developments for Tandem and I think it's really going to go a long way to improving the competitiveness of products in 2026 and beyond. And I'm just sorry, just wanted to take the opportunity to share that with all of you guys.

Operator

Thank you. This concludes our question and answer session and today's conference call. Thank you for participating. You may now disconnect.

Executives
Analysts
    • Matt Miksic
      Equity Research Analyst at Barclays Investment Bank
    • Matt Taylor
      Managing Director at Jefferies & Company Inc
    • Carol Wong
      Equity Research Analyst - MedTech at Nephron Research LLC
    • Bill Plovanic
      MD & Equity Research - Medical Technology at Canaccord Genuity - Global Capital Markets
    • Shagun Singh
      Director & Senior Equity Research Analyst - Medical Devices at RBC Capital Markets
    • Lawrence Biegelsen
      Senior Medical Device Equity Research Analyst at Wells Fargo
    • Analyst
    • Danielle Antalffy
      Analyst at UBS Group
    • David Roman
      Managing Director at Goldman Sachs
    • Felipe Lamar
      Senior Equity Research Associate at Truist Securities
    • Jeffrey Johnson
      Senior Research Analyst at Robert W. Baird & Co
    • Brett Gasaway
      VP - Equity Research at Leerink Partners
    • Anthony Petrone
      MD - Equity Research at Mizuho Financial Group
    • Joanne Wuensch.
      Managing Director at Citi
    • Stephanie Piazzola
      VP - Equity Research at Bank of America
    • Jayson Bedford
      MD - Medical Technology at Raymond James Financial
Powered by Quartr