Tandem Diabetes Care Inc.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 6 November 2025: press release. Guidance figures: 6 kept. The quarter’s numbers.

Key takeaways

Record third-quarter sales reported: Worldwide sales were $249.3 million, up from $244.0 million a year earlier and $240.7 million in the second quarter, with $73.6 million outside the United States. Source
Gross margin rose to 54%: GAAP gross margin was 54%, compared with 51% a year earlier and 52% in the second quarter. Gross profit was $134.3 million, up from $124.7 million. Source
Full-year 2025 guidance reaffirmed: Management reaffirmed full-year 2025 guidance of about $1.0 billion in worldwide sales, 53% to 54% gross margin, and about negative 5% adjusted EBITDA margin. Source
U.S. pump sales fell; supplies rose: U.S. pump sales fell 2% to $84.8 million, while supplies and other rose 8% to $90.8 million. Supplies grew faster than pumps in both the quarter and the nine months. Source
Cash and short-term investments fell: Cash, cash equivalents and short-term investments were $319.1 million at September 30, 2025, against $315.4 million at June 30 and $438.3 million at December 31, 2024. Source
Free cash flow negative for nine months: Non-GAAP free cash flow was $4.2 million in the quarter, against $21.5 million a year earlier. For nine months it was negative $32.8 million, against negative $2.7 million; quarter capex was $4.1 million. Source
Tandem Mobi pharmacy coverage above 40%: Pharmacy benefit coverage for Tandem Mobi increased to more than 40% of U.S. lives, as part of the multi-channel initiative. Source

“Tandem delivered a strong third quarter performance marked by record quarterly sales, significant gross margin improvement, and meaningful progress on our key strategic initiatives,”
John Sheridan, president and chief executive officer

Guidance

Area	Period	Figure	Against last quarter
Worldwide sales Source	Full year 2025	approximately $1.0 billion	Kept
U.S. sales Source	Full year 2025	approximately $700 million	Kept
Sales outside the U.S. Source	Full year 2025	approximately $300 million	Kept
Gross margin Source	Full year 2025	53% to 54% of sales	Kept
Adjusted EBITDA margin Source	Full year 2025	approximately negative 5% of sales	Kept
Non-cash charges in cost of goods sold and operating expenses Source	Full year 2025	approximately $115 million	Kept

What changed from last quarter

Guidance kept: Full-year 2025 guidance reaffirmed; the figures match the prior release. Source
New: t:slim X2 supplies introduced through a pharmacy benefit; the prior release said this would begin in Q4 2025. Source
New: FDA 510(k) clearance received for extended-wear use of the SteadiSet Infusion Set; the prior release reported a filing. Source
New: 510(k) filed with the FDA for Android mobile control of the Tandem Mobi system; the prior release did not mention it. Source
New: Global commercial rollout of t:slim X2 with the FreeStyle Libre 3 Plus CGM sensor began; the prior release reported an early access program. Source

Third-quarter results and guidance

Record third-quarter sales reported: Worldwide sales were $249.3 million, up from $244.0 million a year earlier and $240.7 million in the second quarter, with $73.6 million outside the United States. Source
Gross margin rose to 54%: GAAP gross margin was 54%, compared with 51% a year earlier and 52% in the second quarter. Gross profit was $134.3 million, up from $124.7 million. Source
Operating loss was $22.9 million: GAAP operating loss was $22.9 million, or negative 9% of sales, against $26.1 million a year earlier. Second-quarter operating loss was $51.8 million, including a $20.0 million litigation and settlement expense. Source
Net loss and per-share loss: GAAP net loss was $21.2 million, or $0.31 per share, against $23.3 million, or $0.35 per share, a year earlier. The second-quarter net loss was $52.4 million, or $0.78 per share. Source
Adjusted EBITDA was $2.8 million: Adjusted EBITDA was $2.8 million, or 1% of sales, against $4.0 million, or 2%, a year earlier. The second-quarter figure was negative $1.8 million, or negative 1%. Source
Full-year 2025 guidance reaffirmed: Management reaffirmed full-year 2025 guidance of about $1.0 billion in worldwide sales, 53% to 54% gross margin, and about negative 5% adjusted EBITDA margin. Source

Segments and regions

U.S. sales grew 2% in quarter: U.S. sales were $175.6 million, up 2% on a GAAP basis and 3% non-GAAP, from $171.6 million. Nine-month U.S. sales rose 8% to $496.5 million. Source
U.S. pump sales fell; supplies rose: U.S. pump sales fell 2% to $84.8 million, while supplies and other rose 8% to $90.8 million. Supplies grew faster than pumps in both the quarter and the nine months. Source
Sales outside U.S. grew 2%: Sales outside the United States were $73.6 million, up from $72.3 million. Outside-U.S. pump sales fell 10% to $25.3 million, and supplies and other rose 9% to $48.3 million. Source

“We are beginning to see the positive impact of our business transformation, which strengthens our ability to achieve Tandem’s near- and longer-term goals, while continuing our commitment to improve the lives of people with diabetes.”
John Sheridan, president and chief executive officer

Products and shipments

Libre 3 Plus rollout began globally: A global commercial rollout of t:slim X2 pump integration with the FreeStyle Libre 3 Plus CGM sensor began, following the early access program in the prior release. Source
U.S. pump shipments above 20,000: Shipments in the U.S. were more than 20,000 pumps, against approximately 21,000 in the second quarter. Outside the U.S., shipments were more than 9,000 pumps, against approximately 9,000. Source
Android mobile control filed with FDA: A 510(k) was filed with the FDA for Android mobile control of the Tandem Mobi system. The release gives no decision date for it. Source

Operating expenses and charges

Operating expenses rose year over year: Operating expenses were $157.2 million, against $150.7 million a year earlier. SG&A rose to $108.4 million from $99.6 million, while R&D fell to $48.7 million from $51.1 million. Source
Nine-month acquired R&D and charges: Nine-month results include $75.2 million of acquired in-process R&D, $20.0 million of litigation and settlement expense, and $11.2 million of impairment and restructuring costs. Source
Weighted average shares rose: Weighted average shares used for basic and diluted loss per share were 67.7 million, against 65.5 million a year earlier. Source

Margins and non-GAAP basis

Non-GAAP gross margin matched GAAP: Non-GAAP gross margin was 54%, the same as GAAP. Non-GAAP operating loss equaled GAAP at $22.9 million, with no non-GAAP adjustments in the quarter. Source
IPR&D no longer excluded from non-GAAP: From the second quarter, non-GAAP results stopped excluding acquired IPR&D, in line with SEC staff views. First-quarter 2025 guidance had included that adjustment. Source
Tandem Choice had no 2025 effect: The Tandem Choice program ended in 2024 and had no sales or margin effect in 2025, so the quarter's figures carry no adjustment for it. Source

Cash, debt and equity

Cash and short-term investments fell: Cash, cash equivalents and short-term investments were $319.1 million at September 30, 2025, against $315.4 million at June 30 and $438.3 million at December 31, 2024. Source
Free cash flow negative for nine months: Non-GAAP free cash flow was $4.2 million in the quarter, against $21.5 million a year earlier. For nine months it was negative $32.8 million, against negative $2.7 million; quarter capex was $4.1 million. Source
Current convertible notes portion nil: The current portion of convertible senior notes was nil at September 30, 2025, against $40.7 million at December 31, 2024. Long-term convertible notes were $309.6 million. Source
Stockholders’ equity fell to $133.0 million: Total stockholders’ equity was $133.0 million at September 30, 2025, against $263.1 million at December 31, 2024. Total liabilities were $741.7 million. Source

Strategy and business transformation

Business transformation tied to goals: Management linked the quarter to the business transformation, which it said strengthens the ability to reach near- and longer-term goals. Source
Tandem Mobi pharmacy coverage above 40%: Pharmacy benefit coverage for Tandem Mobi increased to more than 40% of U.S. lives, as part of the multi-channel initiative. Source
T:slim X2 supplies added to pharmacy: t:slim X2 supplies were introduced through a pharmacy benefit as part of the multi-channel initiative, which the prior release had planned for Q4 2025. Source

Coming up, as management said on 6 November 2025

Direct commercial operations in 2026: Management said it is preparing direct commercial operations in select countries for 2026, a preparation the release ties to a $10 million headwind in 2025 outside-U.S. sales. Source
Android filing decision not dated: The Android mobile control 510(k) has been filed; the release gives no FDA decision date for it. Source

Figures management reported

Figure	Reported
U.S. pump shipments Source	more than 20,000 pumps
Outside-U.S. pump shipments Source	more than 9,000 pumps
Tandem Mobi pharmacy benefit coverage (U.S. lives) Source	more than 40%

Risks management discussed

Operational: Outside-U.S. sales guidance includes a $10 million headwind from preparing direct commercial operations in select countries. Source
Financial: The release describes the Tandem Choice accounting treatment as having a high degree of complexity. Source
Regulatory: Non-GAAP results dropped the IPR&D adjustment to align with SEC staff views, which led to revised 2025 guidance. Source

Earlier plans management reported on

Not stated: Management said it reaffirmed full-year 2025 guidance given with the prior results. Source
Not stated: The prior release said this would begin in Q4 2025; the current release reports it as introduced, with no date.
Met: The prior release reported a filing; the current release reports FDA clearance for extended-wear use. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Tandem Diabetes Care Announces Third Quarter 2025 Financial Results

San Diego, November 6, 2025 - Tandem Diabetes Care, Inc. (Nasdaq: TNDM), a global insulin delivery and diabetes technology company, today reported its financial results for the quarter ended September 30, 2025 and reaffirmed full year 2025 guidance.

Third Quarter 2025 and Recent Highlights

Achieved record third quarter sales both in the United States (U.S.) and internationally
Demonstrated year-over-year and sequential gross margin improvement
Progressed multi-channel initiative by:
Increasing pharmacy benefit coverage for Tandem Mobi to more than 40% of U.S. lives
Introducing t:slim X2 supplies through a pharmacy benefit
Received 510(k) clearance from the U.S. Food and Drug Administration (FDA) for extended wear use of the SteadiSet Infusion Set
Filed a 510(k) with the FDA for Android mobile control of the Tandem Mobi insulin delivery system
Began global commercial rollout of t:slim X2 pump integration with the FreeStyle Libre 3 Plus CGM sensor

“Tandem delivered a strong third quarter performance marked by record quarterly sales, significant gross margin improvement, and meaningful progress on our key strategic initiatives,” said John Sheridan, president and chief executive officer. “We are beginning to see the positive impact of our business transformation, which strengthens our ability to achieve Tandem’s near- and longer-term goals, while continuing our commitment to improve the lives of people with diabetes.”

Third Quarter 2025 Results Compared to Third Quarter 2024

Sales : Worldwide sales increased to $249.3 million, which included sales outside the United States of $73.6 million. This is compared to worldwide sales of $244.0 million, which included sales of $72.3 million outside the United States.

Non-GAAP worldwide sales of increased to $249.3 million, which included sales outside of the United States of $73.6 million. This is compared to worldwide sales of $242.9 million, which included sales of $72.3 million outside the United States.

Shipments in the United States were more than 20,000 pumps. Shipments outside the United States were more than 9,000 pumps.

Gross profit : GAAP gross profit was $134.3 million, compared to $124.7 million. GAAP gross margin was 54%, compared to 51%.

Non-GAAP gross profit was $134.3 million, compared to $124.3 million. Non-GAAP gross marginwas 54%, compared to 51%.

Operating loss: GAAP operating loss was $22.9 million, or negative 9% of sales, compared to $26.1 million, or negative 11% of sales.

Non-GAAP operating loss was $22.9 million, or negative 9% of sales, compared to $26.5 million or negative 11% of sales.

Net loss: GAAP net loss was $21.2 million, compared to net loss of $23.3 million.

Non-GAAP net loss was $21.2 million, compared to net loss of $23.6 million.

Adjusted EBITDA was $2.8 million, or 1% of sales, compared to $4.0 million, or 2% of sales.

(1) The Tandem Choice program (Tandem Choice) concluded in 2024, and there was no impact to sales or margins for this program in 2025. See “Non-GAAP Financial Measures” below for additional information.

(2) A reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures and additional information can be found in Table D “Reconciliation of GAAP versus Non-GAAP Financial Results” attached to this press release. Also see “Non-GAAP Financial Measures” below for additional information.

See tables for additional financial information.

2025 Financial Guidance

For the year ending December 31, 2025, the Company is reaffirming its 2025 financial guidance as follows:

Sales for the full year are estimated to be approximately $1.0 billion.
Sales in the United States of approximately $700 million.
Sales outside the United States of approximately $300 million, which reflects a $10 million headwind associated with the Company’s preparation for direct commercial operations in select countries in 2026.
Gross margin is estimated to be approximately 53% to 54% of sales for the full year.
Adjusted EBITDA margin is estimated to be approximately negative 5% of sales for the full year, recast in the second quarter of 2025 from approximately 3%. The change was made to align with views expressed by the staff of the U.S. Securities and Exchange Commission to include an acquired in-process research and development (IPR&D) charge that occurred in the first quarter of 2025, which had an estimated impact of negative 8 percentage points.
Non-cash charges included in cost of goods sold and operating expenses are estimated to be approximately $115 million. This includes:
Approximately $95 million non-cash, stock-based compensation expense.
Approximately $20 million depreciation and amortization expense.

Non-GAAP Financial Measures

Certain non-GAAP financial measures are presented in this press release to provide information that may assist investors in understanding the Company’s financial results and assessing its prospects for future performance. The Company believes these non-GAAP financial measures are important operating performance indicators because they exclude items that are unrelated to, and may not be indicative of, the Company’s core operating results. These non-GAAP financial measures, as calculated, may not necessarily be comparable to similarly titled measures of other companies and may not be appropriate measures for comparing the performance of other companies relative to the Company. These non-GAAP financial results are not intended to represent, and should not be considered to be more meaningful measures than, or alternatives to, measures of operating performance as determined in accordance with GAAP. To the extent the Company uses such non-GAAP financial measures in the future, we expect they will be calculated using a consistent method from period to period and, if not, an explanation will be provided. A reconciliation of each of the historical GAAP financial measures to the most directly comparable historical non-GAAP financial measures has been provided in Table D “Reconciliation of GAAP versus Non-GAAP Financial Results” attached to this press release.

In the first quarter of 2025, the Company included an adjustment for IPR&D expense in its non-GAAP financials and provided guidance based on this practice. Beginning in the second quarter of 2025, the Company no longer included an adjustment for IPR&D expense in its non-GAAP results to align with views expressed by the staff of the U.S. Securities and Exchange Commission and 2025 results. The Company’s guidance has been revised accordingly.

The accounting treatment for Tandem Choice, which was in effect from September 2022 through December 2024, had a high degree of complexity. When the program originally launched, the Company began deferring a portion of sales for each eligible t:slim X2 pump shipped in the United States. When a customer elected to participate in Tandem Choice upon the launch of Tandem Mobi in 2024, the Company recognized the existing deferral, incremental fees received and the associated costs of providing the new insulin pump at the time of fulfillment. Historical non-GAAP financial measures are presented in this press release to facilitate better comparisons of the Company’s operating results across the reporting periods. Tandem Choice will not impact any financial measures for the year ending December 31, 2025.

Conference Call

The Company will hold a conference call and simultaneous webcast today at 4:30pm Eastern Time (1:30pm Pacific Time). The link to the webcast will be available by accessing the Events & Presentations tab in the Investor Center of the Tandem Diabetes Care website at http://investor.tandemdiabetes.com, and will be archived for 30 days. To access the call by phone, please use this link (https://register-conf.media-server.com/register/BIc606fdd6dfdd4cec879c519f6530a5c6) and you will be provided with dial-in details, including a personal pin.

About Tandem Diabetes Care, Inc.

Tandem Diabetes Care, a global insulin delivery and diabetes technology company, manufactures and sells advanced automated insulin delivery systems that reduce the burden of diabetes management, while creating new possibilities for patients, their loved ones, and healthcare providers. The Company’s pump portfolio features the Tandem Mobi system and the t:slim X2 insulin pump, both of which feature Control-IQ+ advanced hybrid closed-loop technology. Tandem Diabetes Care is headquartered in San Diego, California. For more information, visit tandemdiabetes.com.

Tandem Diabetes Care, the Tandem logo, Control-IQ, Control-IQ+, Tandem Mobi and t:slim X2 are either registered trademarks or trademarks of Tandem Diabetes Care, Inc. in the United States and/or other countries.

Forward-Looking Statements

Forward-looking statements notice

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that concern matters that involve risks and uncertainties that could cause actual results to differ materially from those anticipated or projected in the forward-looking statements. These forward-looking statements include statements regarding, among other things, the Company’s projected financial results and the ability to achieve other operational and commercial goals. The Company’s actual results may differ materially from those indicated in these forward-looking statements due to numerous risks and uncertainties. For instance, the Company’s ability to achieve projected financial results will be impacted by market acceptance of the Company’s products; products marketed and sold or under development by competitors; the Company’s ability to establish and sustain operations to support international sales, including expanding into additional geographies; changes in reimbursement rates or insurance coverage for the Company’s products; the Company’s ability to meet increasing operational and infrastructure requirements from higher customer interest and a larger base of existing customers; the Company’s ability to successfully commercialize its products; the Company’s ability to develop and launch new products; risks associated with the regulatory approval process outside the United States for new products; the potential that newer products, or other technological breakthroughs for the monitoring, treatment or prevention of diabetes, may render the Company’s products obsolete or less desirable, or may otherwise negatively impact the purchasing trends of customers; reliance on third-party relationships, such as outsourcing and supplier arrangements; global economic conditions; and other risks identified in the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, and other documents that the Company files with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Tandem undertakes no obligation to update or review any forward-looking statement in this press release because of new information, future events or other factors.

	(Unaudited)
	September 30,	December 31,
	2025	2024
TANDEM DIABETES CARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
Table A
(in thousands)
Assets
Current assets:
Cash, cash equivalents and short-term investments	$319,111	$438,329
Accounts receivable, net	125,940	114,585
Inventories	137,284	149,612
Other current assets	34,609	21,965
Total current assets	616,944	724,491
Property and equipment, net	77,920	78,150
Operating lease right-of-use assets	98,364	85,306
Equity method investment	64,904	74,545
Other long-term assets	16,521	5,166
Total assets	$874,653	$967,658
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable, accrued expenses and employee-related liabilities	$124,475	$127,028
Current portion of convertible senior notes, net	-	40,670
Operating lease liabilities	21,341	18,208
Deferred revenue	9,844	11,831
Other current liabilities	96,882	49,312
Total current liabilities	252,542	247,049
Convertible senior notes, net - long-term	309,590	308,266
Operating lease liabilities - long-term	118,353	106,421
Deferred revenue - long-term	8,823	10,455
Other long-term liabilities	52,380	32,369
Total liabilities	741,688	704,560
Total stockholders’ equity	132,965	263,098
Total liabilities and stockholders’ equity	$874,653	$967,658

	Three Months Ended September 30,		Nine Months Ended September 30,
	2025	2024	2025	2024
TANDEM DIABETES CARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Table B
(in thousands, except per share data)
(Unaudited)
Sales	$249,253	$243,971	$724,353	$657,555
Cost of sales	114,961	119,318	345,799	325,436
Gross profit	134,292	124,653	378,554	332,119
Operating expenses:
Selling, general and administrative	108,440	99,639	331,889	283,987
Litigation and settlement expense	-	-	19,951	-
Research and development	48,715	51,107	147,048	146,677
Acquired in-process research and development expenses	-	-	75,217	-
Total operating expenses	157,155	150,746	574,105	430,664
Operating loss	(22,863)	(26,093)	(195,551)	(98,545)
Total other income (expense), net	(2,280)	3,479	(9,403)	6,659
Loss before income taxes	(25,143)	(22,614)	(204,954)	(91,886)
Income tax expense (benefit)	(3,978)	637	(833)	4,894
Net loss	$(21,165)	$(23,251)	$(204,121)	$(96,780)
Net loss per share - basic and diluted	$(0.31)	$(0.35)	$(3.04)	$(1.48)
Weighted average shares used to compute basic and diluted net loss per share	67,652	65,538	67,040	65,287

TANDEM DIABETES CARE, INC.
SALES BY GEOGRAPHY
Table C
(Unaudited)
($'s in thousands)	Three Months Ended September 30,					Nine Months Ended September 30,
		2025		2024	% Change		2025		2024	% Change
United States:
Pump	$84,785		$86,722		(2)%	$242,393		$230,187		5%
Supplies and other	90,846		83,889		8%	254,079		227,888		11%
Adjustment for Tandem Choice	-		1,039		(100)%	-		47		(100)%
Total GAAP Sales in the United States	$175,631		$171,650		2%	$496,472		$458,122		8%
Adjustment for Tandem Choice	-		(1,039)		100%	-		(47)		100%
Total Non-GAAP Sales in the United States	$175,631		$170,611		3%	$496,472		$458,075		8%
Outside the United States:
Pump	$25,329		$28,077		(10)%	$81,683		$79,774		2%
Supplies and other	48,293		44,244		9%	146,198		119,659		22%
Total Sales Outside the United States	$73,622		$72,321		2%	$227,881		$199,433		14%
Total GAAP Worldwide Sales	$249,253		$243,971		2%	$724,353		$657,555		10%
Adjustment for Tandem Choice	-		(1,039)		100%	-		(47)		100%
Total Non-GAAP Worldwide Sales	$249,253		$242,932		3%	$724,353		$657,508		10%

(1) The Tandem Choice program concluded in 2024, and there was no impact to sales for this program in 2025. A reconciliation of non-GAAP financial measures to their closest GAAP equivalent and additional information can be found in Table D and under the heading “Non-GAAP Financial Measures.”

TANDEM DIABETES CARE, INC.
Reconciliation of GAAP versus Non-GAAP Financial Results
Table D
(Unaudited)
($'s in thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
		2025		2024		2025		2024
GAAP sales		$249,253		$243,971		$724,353		$657,555
Adjustment for Tandem Choice		-		(1,039)		-		(47)
Non-GAAP sales		$249,253		$242,932		$724,353		$657,508
GAAP gross profit		$134,292		$124,653		$378,554		$332,119
Adjustment for Tandem Choice		-		(374)		-		645
Non-GAAP gross profit		$134,292		$124,279		$378,554		$332,764
GAAP gross margin		54%		51%		52%		51%
Non-GAAP gross margin		54%		51%		52%		51%
GAAP operating loss		$(22,863)		$(26,093)		$(195,551)		$(98,545)
Litigation and settlement expense		-		-		19,951		-
Non-recurring facility impairment and restructuring costs		-		-		11,167		-
Adjustment for Tandem Choice		-		(374)		-		645
Non-GAAP operating loss		$(22,863)		$(26,467)		$(164,433)		$(97,900)
GAAP operating margin		(9)%		(11)%		(27)%		(15)%
Non-GAAP operating margin		(9)%		(11)%		(23)%		(15)%
GAAP net loss		$(21,165)		$(23,251)		$(204,121)		$(96,780)
Income tax expense		(3,978)		637		(833)		4,894
Interest income, interest expense and other, net		2,280		(3,479)		9,403		(6,659)
Depreciation and amortization		4,493		4,211		13,171		12,362
Litigation and settlement expense		-		-		19,951		-
Stock-based compensation expense		21,141		26,281		72,271		73,217
Non-recurring facility impairment and restructuring costs		-		-		11,167		-
Adjustment for Tandem Choice		-		(374)		-		645
Adjusted EBITDA		$2,771		$4,025		$(78,991)		$(12,321)
Adjusted EBITDA margin	1%		2%		(11)%		(2)%
GAAP net loss		$(21,165)		$(23,251)		$(204,121)		$(96,780)
Litigation and settlement expense		-		-		19,951		-
Non-recurring facility impairment and restructuring costs		-		-		11,167		-
Adjustment for Tandem Choice		-		(374)		-		645
Non-GAAP net loss		$(21,165)		$(23,625)		$(173,003)		$(96,135)
GAAP cash provided by (used in) operating activities		$8,264		$26,781		$(19,510)		$13,508
Less: capital expenditures		(4,092)		(5,239)		(13,263)		(16,162)
Non-GAAP free cash flow		$4,172		$21,542		$(32,773)		$(2,654)

(1) The accounting treatment for Tandem Choice had a high degree of complexity. The Tandem Choice program concluded in 2024, and there was no impact to sales for this program in 2025. Additional information can be found under the heading “Non-GAAP Financial Measures.”

(2) GAAP margins including GAAP gross margin and GAAP operating margin are calculated using GAAP sales. Non-GAAP margins including non-GAAP gross margin, non-GAAP operating margin, and adjusted EBITDA margin are calculated using non-GAAP sales.

(3) In the first quarter of 2025, the Company recorded $11.2 million in impairment charges related to its operating lease right-of-use assets, and severance and other restructuring costs associated with the relocation of certain research and development activities.

(4) In the first quarter of 2025, the Company included an adjustment for IPR&D expense in its non-GAAP financials and provided guidance based on this practice. Beginning in the second quarter of 2025, the Company no longer included an adjustment for IPR&D expense in its non-GAAP results to align with views expressed by the staff of the U.S. Securities and Exchange Commission and 2025 results and guidance have been revised accordingly.

(5) Free Cash Flow is a non-GAAP financial measure that we define as cash provided by operating activities less capital expenditures.

Contacts
858-366-6900 media@tandemdiabetes.com
858-366-6900
IR@tandemdiabetes.com