INSULET CORP

Previous wording

We have completed the randomized portion of our RADIANT study in France, the United Kingdom, and Belgium, which is our Omnipod 5 with Libre 2 randomized controlled trial. Similar to the randomized control trial that we completed in the United States and France for Omnipod 5 with DexCom’s G6 CGM, the objective is to provide data to support our pricing and market access initiatives as we roll out Omnipod 5 with multiple sensors across our international markets. We also continue to expand market access and awareness of Omnipod products through our direct to consumer advertising programs and through growing our presence in the U.S. pharmacy channel, where access to Omnipod 5 and Omnipod DASH is simpler and affordable, as no up-front investment is required.

Current wording

We have completed the randomized portion of our RADIANT study in France, the United Kingdom, and Belgium, which is our Omnipod 5 with Libre 2 randomized controlled trial. Similar to the randomized control trial that we completed in the United States and France for Omnipod 5 with DexCom’s G6 CGM sensor, the objective is to provide data to support our pricing and market access initiatives as we roll out Omnipod 5 with multiple sensors across our international markets. We also continue to expand market access and awareness of Omnipod products through our direct to consumer advertising programs and through growing our presence in the U.S. pharmacy channel, where access to Omnipod 5 and Omnipod DASH is simpler and affordable, as no up-front investment is required.

Previous wording

We also continue to focus on our product development efforts, including automated insulin delivery (“AID”) offerings, such as choice of smartphone integration and CGM, and enhancing the customer experience through digital product and data capabilities. In June 2025, our Omnipod 5 app for iPhone compatible with Dexcom’s G7 CGM became fully available in the United States.

Current wording

Additionally, we continue to focus on our product development efforts, including automated insulin delivery (“AID”) offerings, such as choice of smartphone integration and CGM, and enhancing the customer experience through digital product and data capabilities. In 2025, our Omnipod 5 app for iPhone compatible with Dexcom’s G7 CGM sensor became fully available in the United States. Further, we integrated Omnipod 5 with Dexcom’s G7 CGM sensor in Germany, Sweden, Denmark, Finland and Italy, and with Abbott’s FreeStyle Libre 2 Plus sensor in Australia.

Previous wording

Our Pods are intended to be used continuously for up to three days, after which it may be replaced with a new disposable Pod. The unique patented design of the Omnipod allows us to provide Pod therapy at a relatively low or no up-front investment in regions where reimbursement allows for it and our pay-as-you-go pricing model reduces the risk to third-party payors. As we grow our customer base, we expect to generate an increasing portion of our revenues through recurring sales of our disposable Pods, which provide recurring revenue.

Current wording

Our Pod is intended to be used continuously for up to three days, after which it may be replaced with a new disposable Pod. The unique patented design of the Omnipod allows us to provide Pod therapy at a relatively low or no up-front investment in regions where reimbursement allows for it and our pay-as-you-go pricing model reduces the risk to third-party payors. As we grow our customer base, we expect to generate an increasing portion of our revenues through recurring sales of our disposable Pods, which provide recurring revenue.

Previous wording

Total revenue for the three months ended June 30, 2025 increased $160.6 million, or 32.9%, to $649.1 million, compared with $488.5 million for the three months ended June 30, 2024. Total revenue for the six months ended June 30, 2025 increased $287.9 million, or 30.9%, to $1.2 billion, compared with $930.2 million for the six months ended June 30, 2024. Constant currency revenue growth of 31.3% and 30.6% for the three and six months ended June 30, 2025, respectively, was primarily driven by higher sales volume largely attributable to our growing customer base. An increase in inventory days on hand at distributors also contributed to the total revenue growth for the six months ended June 30, 2025, although to a lesser extent.

Current wording

Total revenue for the three months ended September 30, 2025 increased $162.4 million, or 29.9%, to $706.3 million, compared with $543.9 million for the three months ended September 30, 2024. Total revenue for the nine months ended September 30, 2025 increased $450.2 million, or 30.5%, to $1,924.3 million, compared with $1,474.1 million for the nine months ended September 30, 2024. Constant currency revenue growth of 28.2% and 29.7% for the three and nine months ended September 30, 2025, respectively, was primarily driven by higher sales volume largely attributable to our growing customer base and, to a lesser extent, higher price.

Previous wording

Revenue from the sale of Omnipod products in the U.S. increased $184.9 million, or 27.6%, to $854.9 million for the six months ended June 30, 2025, compared with $670.0 million for the six months ended June 30, 2024. This increase primarily resulted from higher sales volume driven by growing our customer base, and, to a lesser extent, the impact of the acceleration of orders by pharmacy wholesalers in the fourth quarter of 2023 in advance of the implementation of our new ERP system on January 1, 2024. Revenue from the sale of Omnipod products in the U.S. for the six months ended June 30, 2025 included $327.1 million of related party revenue, compared with $259.1 million for the six months ended June 30, 2024. The $67.9 million increase resulted from growth through the pharmacy channel.

Current wording

Revenue from the sale of Omnipod products in the U.S. increased $101.5 million, or 25.6%, to $497.1 million for the three months ended September 30, 2025, compared with $395.6 million for the three months ended September 30, 2024. This increase primarily resulted from higher sales volume driven by growing our customer base. A higher average selling price resulting from our wholesaler acquisition cost increase implemented during the second quarter of 2025 also contributed to the revenue increase, although to a lesser extent. Revenue from the sale of Omnipod products in the U.S. for the three months ended September 30, 2025 included $184.5 million of related party revenue, compared with $171.3 million for the three months ended September 30, 2024. The $13.3 million increase resulted from growth through the pharmacy channel.

Previous wording

Revenue from the sale of Omnipod products in the U.S. increased $100.9 million, or 28.7%, to $453.2 million for the three months ended June 30, 2025, compared with $352.3 million for the three months ended June 30, 2024. This increase primarily resulted from higher sales volume driven by growing our customer base. Revenue from the sale of Omnipod products in the U.S. for the three months ended June 30, 2025 included $178.6 million of related party revenue, compared with $147.3 million for the three months ended June 30, 2024. The $31.3 million increase resulted from growth through the pharmacy channel.

Current wording

Revenue from the sale of Omnipod products in the U.S. increased $286.3 million, or 26.9%, to $1,352.0 million for the nine months ended September 30, 2025, compared with $1,065.6 million for the nine months ended September 30, 2024. This increase primarily resulted from higher sales volume driven by growing our customer base. Revenue from the sale of Omnipod products in the U.S. for the nine months ended September 30, 2025 included $511.6 million of related party revenue, compared with $430.4 million for the nine months ended September 30, 2024. The $81.2 million increase resulted from growth through the pharmacy channel.

Previous wording

Revenue from the sale of Omnipod products in our international markets increased $57.6 million, or 45.0%, to $185.8 million for the three months ended June 30, 2025, compared with $128.2 million for the three months ended June 30, 2024. Excluding the 6.2% favorable impact of currency exchange, the remaining 38.8% increase in revenue was primarily due to higher volumes from our growing customer base, largely resulting from the prior year launches of Omnipod 5. A higher average selling price for Omnipod 5, compared with Omnipod DASH, also contributed to the revenue increase.

Current wording

Revenue from the sale of Omnipod products in our international markets increased $64.1 million, or 46.5%, to $202.1 million for the three months ended September 30, 2025, compared with $137.9 million for the three months ended September 30, 2024. Excluding the 6.6% favorable impact of currency exchange, the remaining 39.9% increase in revenue was primarily due to higher volumes from our growing customer base, largely resulting from the prior year launches of Omnipod 5. A higher average selling price for Omnipod 5, compared with Omnipod DASH, also contributed to the revenue increase.

Previous wording

Revenue from the sale of Omnipod products in our international markets increased $94.7 million, or 38.9%, to $338.1 million for the six months ended June 30, 2025, compared with $243.4 million for the six months ended June 30, 2024. Excluding the 1.4% favorable impact of currency exchange, the remaining 37.5% increase in revenue was primarily due to higher volumes from our growing customer base, largely resulting from the prior year launches of Omnipod 5 and, to a lesser extent, from an increase in estimated inventory days-on-hand at distributors to support our 2025 Omnipod 5 launches. A higher average selling price for Omnipod 5, compared with Omnipod DASH and Classic Omnipod, also contributed to the revenue increase.

Current wording

Revenue from the sale of Omnipod products in our international markets increased $158.8 million, or 41.6%, to $540.2 million for the nine months ended September 30, 2025, compared with $381.4 million for the nine months ended September 30, 2024. Excluding the 3.3% favorable impact of currency exchange, the remaining 38.4% increase in revenue was primarily due to higher volumes from our growing customer base, largely resulting from the prior year launches of Omnipod 5. A higher average selling price for Omnipod 5, compared with Omnipod DASH, also contributed to the revenue increase.

Previous wording

Substantially all of our Drug Delivery revenue consists of sales of pods to Amgen for use in the Neulasta® Onpro® kit, a delivery system for Amgen’s Neulasta to help reduce the risk of infection after intense chemotherapy.

Current wording

Substantially all of our Drug Delivery revenue consists of sales of pods to Amgen for use in the Neulasta® Onpro® kit, a delivery system for Amgen’s Neulasta to help reduce the risk of infection after intense chemotherapy. Drug Delivery revenue was $7.1 million and $10.3 million for the three months ended September 30, 2025 and 2024, respectively and $32.2 million and $27.1 million for the nine months ended September 30, 2025 and 2024, respectively.

Previous wording

Cost of revenue for the six months ended June 30, 2025 increased $64.3 million, or 22.0%, to $356.8 million, compared with $292.5 million for the six months ended June 30, 2024. Gross margin was 70.7% for the six months ended June 30, 2025, compared with 68.6% for the six months ended June 30, 2024. The 210 basis point increase in gross margin was primarily driven by a $13.5 million charge in the prior year related to certain components utilized in OmnipodGO, which we decided not to commercialize.

Current wording

Cost of revenue for the three months ended September 30, 2025 increased $29.4 million, or 17.6%, to $196.2 million, compared with $166.8 million for the three months ended September 30, 2024. Gross margin was 72.2% for the three months ended September 30, 2025, compared with 69.3% for the three months ended September 30, 2024. The 290 basis point increase in gross margin was primarily driven by a higher average selling price and increased manufacturing scale and efficiencies.

Previous wording

Cost of revenue for the three months ended June 30, 2025 increased $39.3 million, or 25.0%, to $196.9 million, compared with $157.6 million for the three months ended June 30, 2024. Gross margin was 69.7% for the three months ended June 30, 2025, compared with 67.7% for the three months ended June 30, 2024. The 190 basis point increase in gross margin was primarily driven by a $13.5 million charge in the prior year related to certain components utilized in OmnipodGO, which we decided not to commercialize.

Current wording

Cost of revenue for the nine months ended September 30, 2025 increased $93.7 million, or 20.4%, to $553.0 million, compared with $459.3 million for the nine months ended September 30, 2024. Gross margin was 71.3% for the nine months ended September 30, 2025, compared with 68.8% for the nine months ended September 30, 2024. The 240 basis point increase in gross margin was primarily driven by improved manufacturing and supply chain efficiencies, a higher average selling price, increased volume and a $13.5 million charge in the prior year related to certain components utilized in OmnipodGO, which we decided not to commercialize.

Previous wording

For full year 2025, we expect gross margin to be approximately 71.0%. We anticipate gross margin to increase compared with 2024 primarily due to improved manufacturing efficiencies, pricing benefits and volume, partially offset by the negative impact of tariffs, which we currently estimate to be approximately 20 basis points; however, should the exemption that is currently in place for certain medical devices be eliminated, tariffs would have a material impact on our results of operations.

Current wording

For full year 2025, we expect gross margin to be over 71.0%. We anticipate gross margin to increase compared with 2024 primarily due to improved manufacturing efficiencies, pricing benefits and the charge in the prior year related to certain components utilized in OmnipodGO, which did not repeat. While we do not expect tariffs to have a significant impact on our gross margin in 2025, should the exemption that is currently in place for certain medical devices be eliminated, tariffs would have a material impact on our results of operations in future years.

Previous wording

Research and development expenses for the three months ended June 30, 2025 increased $19.5 million, or 36.2%, to $73.4 million, compared with $53.9 million for the three months ended June 30, 2024. Research and development expenses as a percent of revenue was 11.3% and 11.0% for the three months ended June 30, 2025 and 2024, respectively. Research and development expenses for the six months ended June 30, 2025 increased $28.9 million, or 27.8%, to $133.0 million, compared with $104.1 million for the six months ended June 30, 2024. Research and development expenses as a percentage of revenue was 10.9% and 11.2% for the six months ended June 30, 2025 and 2024, respectively. The increases in research and development expense in both the three and six months ended June 30, 2025 were primarily due to year-over-year headcount additions to support continued investment in our Omnipod and pipeline products and, to a lesser extent, higher consulting costs to support clinical trials and our Omnipod and next generation products.

Current wording

Research and development expenses for the three months ended September 30, 2025 increased $22.3 million, or 40.6%, to $77.2 million, compared with $54.9 million for the three months ended September 30, 2024. Research and development expenses as a percent of revenue was 10.9% and 10.1% for the three months ended September 30, 2025 and 2024, respectively. Research and development expenses for the nine months ended September 30, 2025 increased $51.2 million, or 32.2%, to $210.2 million, compared with $159.0 million for the nine months ended September 30, 2024. Research and development expenses as a percentage of revenue was 10.9% and 10.8% for the nine months ended September 30, 2025 and 2024, respectively. The increases in research and development expense in both the three and nine months ended September 30, 2025 were primarily due to year-over-year headcount additions to support continued investment in our Omnipod and pipeline products and, to a lesser extent, higher consulting costs to support our Omnipod and next generation products and clinical trials.

Previous wording

Selling, general and administrative expenses for the three months ended June 30, 2025 increased $35.3 million, or 15.8%, to $257.7 million, compared with $222.5 million for the three months ended June 30, 2024. Selling, general and administrative expenses for the six months ended June 30, 2025 increased $96.2 million, or 22.8%, to $518.4 million, compared with $422 million for the six months ended June 30, 2024. The increases in selling, general and administrative expense for both the three and six months ended June 30, 2025 were primarily attributable to year-over-year headcount additions to enhance customer product support and support both our business growth and Omnipod 5, partially offset by the reversal of stock-based compensation expense associated with the forfeiture of equity awards due to the departure of our former Chief Executive Officer.

Current wording

Selling, general and administrative expenses for the three months ended September 30, 2025 increased $81.1 million, or 34.7%, to $315.2 million, compared with $234.1 million for the three months ended September 30, 2024. Selling, general and administrative expenses for the nine months ended September 30, 2025 increased $177.3 million, or 27.0%, to $833.6 million, compared with $656.3 million for the nine months ended September 30, 2024. The increases in selling, general and administrative expense for both the three and nine months ended September 30, 2025 were primarily attributable to year-over-year headcount additions to enhance customer product support and support both our business growth and Omnipod 5. Incremental advertising expense $20.7 million and $26.5 million for the three and nine months ended September 30, 2025, respectively, also contributed to the increases in selling, general and administrative expenses, although to a lesser extent.

Previous wording

We expect selling, general and administrative expenses to increase in 2025 compared with 2024 due to investments in our operating structure, primarily headcount additions, particularly in the areas of customer and Omnipod 5 support, sales, quality and regulatory support, and international expansion to facilitate continued growth globally. We also plan to make additional investments to continue to support the Omnipod platform and the phased launch of Omnipod 5 in our existing international markets and prepare for expansion into new countries.

Current wording

We expect selling, general and administrative expenses to increase in 2025 compared with 2024 due to investments in our operating structure, primarily headcount additions, particularly in the areas of customer and Omnipod 5 support, sales, quality and regulatory support, and international expansion to facilitate continued growth globally. We also plan to make additional investments to expand awareness of Omnipod products through our direct to consumer advertising programs. Additionally, we continue to support the Omnipod platform and the phased launch of Omnipod 5 in our existing international markets and prepare for expansion into new countries.

Previous wording

Interest expense increased $8.6 million to $19.6 million for the three months ended June 30, 2025, compared with $11.0 million for the three months ended June 30, 2024. Interest expense increased $7.1 million to $28.8 million for the six months ended June 30, 2025, compared with $21.7 million for the six months ended June 30, 2024. The increase in interest expense for both the three and six months ended June 30, 2025 primarily resulted from the issuance of 6.5% senior unsecured notes in March 2025 and lower gains on the new interest rate swaps entered into in April 2025. These increases were partially offset by lower interest on our Term Loan B resulting from the refinancing in August 2024.

Current wording

Interest expense increased $3.3 million to $15.6 million for the three months ended September 30, 2025, compared with $12.4 million for the three months ended September 30, 2024. Interest expense increased $10.4 million to $44.5 million for the nine months ended September 30, 2025, compared with $34.1 million for the nine months ended September 30, 2024. The increase in interest expense for both the three and nine months ended September 30, 2025 primarily resulted from the issuance of 6.5% senior unsecured notes in March 2025 and lower gains on the new interest rate swaps entered into in April 2025. These increases were partially offset by lower interest on our Term Loan B resulting from the refinancing in August 2024.

Previous wording

Interest income was $10.1 million and $9.3 million for the three months ended June 30, 2025 and 2024, respectively, and $20.3 million and $18.7 million for the six months ended June 30, 2025 and 2024, respectively. The increases in interest income for both the three and six months ended June 30, 2025 were primarily driven by higher average cash balances, partially offset by lower average interest rates.

Current wording

Interest income decreased $1.9 million to $8.6 million for the three months ended September 30, 2025, compared with $10.5 million for the three months ended September 30, 2024. The decrease in interest income was driven by higher average cash balances, partially offset by lower average interest rates. Interest income of $29.0 million for the nine months ended September 30, 2025 was level with interest income for the nine months ended September 30, 2024.

Previous wording

We expect net interest expense for the full year 2025 to increase approximately $30 million compared with 2024 due to the debt transactions discussed in note 9 and the replacement of our interest rate swaps that expired in April 2025 discussed in note 11.

Current wording

We expect net interest expense for the full year 2025 to increase approximately $20 million compared with 2024 due to the debt transactions discussed in note 9 and the replacement of our interest rate swaps that expired in April 2025 discussed in note 11.

Previous wording

Our effective tax rate was 20.8% and 24.3% for the three and six months ended June 30, 2025, respectively, compared with a tax benefit of 269.3% and 126.6% for the three and six months ended June 30, 2024, respectively. The increases in the effective tax rates for both periods were primarily due to the existence of a full valuation allowance against deferred tax assets in the prior year, most of which was released during the three months ended June 30, 2024.

Current wording

Our effective tax rate was 28.7% and 27.0% for the three and nine months ended September 30, 2025, respectively, compared with an effective tax rate of 6.5% and a tax benefit of 68.2% for the three and nine months ended September 30, 2024, respectively. The increases in the effective tax rates for both periods were primarily due to the absence of a valuation allowance against deferred tax assets that existed in the prior year and the loss on extinguishment of debt during the nine months ended September 30, 2025.

Previous wording

The Organization for Economic Co-operation and Development (“OECD”) and participating countries continue to work toward the enactment of a 15% global minimum corporate tax. More than 50 countries, including the Netherlands and the United Kingdom (among others) in which we operate, have thus far enacted elements of the global minimum tax legislation which continue to be effective for us throughout fiscal 2025. The global minimum tax is a significant structural change to the international taxation framework. We anticipate further legislative activity and administrative guidance throughout 2025. Overall, the legislation as currently enacted did not impact our consolidated financial statements for the six months ended June 30, 2025. We are continuing to evaluate the potential impact on future periods.

Current wording

The Organization for Economic Co-operation and Development (“OECD”) and participating countries continue to work toward the enactment of a 15% global minimum corporate tax. More than 50 countries, including the Netherlands and the United Kingdom (among others) in which we operate, have thus far enacted elements of the global minimum tax legislation which continue to be effective for us throughout fiscal 2025. The global minimum tax is a significant structural change to the international taxation framework. We anticipate further legislative activity and administrative guidance throughout 2025. Overall, the legislation as currently enacted did not impact our consolidated financial statements for the nine months ended September 30, 2025. We are continuing to evaluate the potential impact on future periods.

Previous wording

In July 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States. The OBBBA includes the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions, including immediate expensing for domestic research expenditures. Additionally, the OBBBA allows accelerated tax deductions for qualified property. Additionally, the OBBBA allows accelerated tax deductions for qualified property and research expenditures. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We are currently assessing its impact on our consolidated financial statements.

Current wording

In July 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States. The OBBBA includes the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions, including immediate expensing for domestic research expenditures. Additionally, the OBBBA allows accelerated tax deductions for qualified property. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. During the three and nine months ended September 30, 2025, we recorded a net tax benefit resulting from the provisions of the OBBBA, the amount of which was not significant; however, optional tax elections are available, which we are continuing to assess, that could affect the ultimate impact of the OBBBA on our consolidated financial statements for the year ending December 31, 2025.

Previous wording

(1)Amounts for the three and six months ended June 30, 2025 include $10.8 million reversal of stock-based compensation expense associated with the departure of the Company's former Chief Executive Officer.

Current wording

(1)Includes the reversal of stock-based compensation expense associated with the departure of the Company's former Chief Executive Officer and Chief Financial Officer totaling $1.0 million and $11.7 million for the three and nine months ended September 30, 2025, respectively.

Previous wording

(2)Represents severance benefits for the Company's former Chief Executive Officer.

Current wording

(2)Represents severance benefits for the Company's former Chief Executive Officer and Chief Financial Officer.

Previous wording

In 2025, we entered into a purchase agreement with NXP USA, Inc. pursuant to which we are committed to purchasing semi-conductor chips for approximately $50 million as of June 30, 2025. See note 9 for information on the debt transactions that were executed during the three months ended June 30, 2025.

Current wording

In 2025, we entered into a purchase agreement with NXP USA, Inc. pursuant to which we are committed to purchasing semi-conductor chips for approximately $30 million as of September 30, 2025. See note 9 for information on the debt transactions that were executed during the nine months ended September 30, 2025.

Previous wording

In March 2025, the Company’s Board of Directors authorized a program to repurchase up to $125 million of common stock through December 31, 2026 to offset dilution from stock-based compensation. During the three and six months ended June 30, 2025, we repurchased approximately 93 thousand shares for $30.1 million under this program.

Current wording

In March 2025, the Company’s Board of Directors authorized a program to repurchase up to $125 million of common stock through December 31, 2026 to offset dilution from stock-based compensation. During the nine months ended September 30, 2025, we repurchased approximately 184 thousand shares for $59.6 million under this program.

Previous wording

Net cash provided by operating activities of $260.3 million for the six months ended June 30, 2025 was primarily attributable to net income, as adjusted for loss on extinguishment of debt, depreciation and amortization, and stock-based compensation expense, partially offset by an $11.9 million working capital outflow. The working capital outflow was driven by a $66.9 million increase in accounts receivable and a $31.6 million increase in prepaid expenses and other assets, partially offset by a $72.6 million increase in accounts payable and a $18.7 million increase in accrued expenses and other liabilities. The increase in accounts receivable was primarily due to an increase in sales driven by our growing customer base. The increase in prepaid expenses and other assets was primarily driven by prepaid income taxes, cloud computing costs and raw materials. The increase in accounts payable was driven by the timing of payments. Finally, the increase in accrued expenses and other liabilities was primarily driven by an increase in accrued rebates primarily due to timing, changes in contract terms, and higher revenue and an increase in accrued compensation driven by headcount additions to support our growing business, partially offset by the annual payout of cash bonuses for performance in the prior year.

Current wording

Net cash provided by operating activities of $386.0 million for the nine months ended September 30, 2025 was primarily attributable to net income, as adjusted for loss on extinguishment of debt, depreciation and amortization, stock-based compensation expense, and deferred income taxes, partially offset by a $37.6 million working capital outflow. The working capital outflow was driven by an $86.1 million increase in accounts receivable and a $55.5 million increase in prepaid expenses and other assets, partially offset by an $83.1 million increase in accrued expenses and other liabilities and a $25.6 million increase in accounts payable. The increase in accounts receivable was primarily due to an increase in sales driven by our growing customer base. The increase in prepaid expenses and other assets was primarily driven by prepaid income taxes and raw materials as well as cloud computing costs. The increase in accrued expenses and other liabilities was primarily driven by an increase in accrued rebates due to higher sales volume, an increase in accrued compensation driven by headcount additions to support our growing business and an increase in accrued interest resulting from the issuance of the 6.5% senior unsecured notes discussed in Note 9. Finally, the increase in accounts payable was driven by the timing of payments.

Previous wording

Net cash used in investing activities was $38.9 million for the six months ended June 30, 2025, compared with $48.9 million for the six months ended June 30, 2024.

Current wording

Net cash used in investing activities was $69.9 million for the nine months ended September 30, 2025, compared with $78.2 million for the nine months ended September 30, 2024.

Previous wording

Capital Spending—Capital expenditures were $30.9 million for the six months ended June 30, 2025, compared with $44.6 million for the six months ended June 30, 2024. The $13.7 million decrease primarily related to the purchase of machinery, equipment and tooling during six months ended June 30, 2024 for our Malaysia manufacturing facility which began operating mid-2024. We expect capital expenditures for 2025 to increase compared with 2024 as we continue to expand globally and optimize our manufacturing and supply chain operations. We expect to fund our capital expenditures using existing cash.

Current wording

Capital Spending—Capital expenditures were $56.5 million for the nine months ended September 30, 2025, compared with $71.3 million for the nine months ended September 30, 2024. The $14.9 million decrease primarily related to the purchase of machinery, equipment and tooling during nine months ended September 30, 2024 for our Malaysia manufacturing facility which began operating mid-2024. We expect capital expenditures for 2025 to increase compared with 2024 as we continue to expand globally and optimize our manufacturing and supply chain operations. We expect to fund our capital expenditures using existing cash.

Previous wording

Investments in Developed Software—Investments in developed software were $8.0 million and $4.3 million for the six months ended June 30, 2025 and 2024, respectively, and primarily related to investments in projects to support our cloud-based capabilities.

Current wording

Investments in Developed Software—Investments in developed software were $13.5 million and $6.7 million for the nine months ended September 30, 2025 and 2024, respectively, and primarily related to investments in projects to support our cloud-based capabilities.

Previous wording

Net cash used in financing activities was $65.8 million for the six months ended June 30, 2025, compared with $5.3 million for the six months ended June 30, 2024.

Current wording

Net cash used in financing activities was $522.8 million for the nine months ended September 30, 2025, compared with $7.2 million for the nine months ended September 30, 2024.

Previous wording

Debt Issuance and Repayments—During the six months ended June 30, 2025, we received net proceeds of $440.7 million from the issuance of Senior Unsecured Notes and used the proceeds along with proceeds of $75.7 million from the unwinding of a portion of the related capped call options to partially fund the $541.5 million repurchase of a portion of our Convertible Notes. In addition, during the six months ended June 30, 2025, we received proceeds of $15.5 million from the refinancing of Term Loan B and repaid $26.4 million of our Term Loan B, equipment financings, and mortgage, compared with payments of $15.9 million during the six months ended June 30, 2024.

Current wording

Debt Issuance and Repayments—During the nine months ended September 30, 2025, we received net proceeds of $440.7 million from the issuance of Senior Unsecured Notes and used the proceeds along with proceeds of $164.6 million from the unwinding the related capped call options to partially fund the $1,052.2 million repurchase of a portion of our Convertible Notes. During the nine months ended September 30, 2025, we also received proceeds of $15.5 million from the refinancing of Term Loan B, and we repaid $33.4 million of our Term Loan B, equipment financings, and mortgage, compared with $21.1 million during the nine months ended September 30, 2024. Additionally, during the nine months ended September 30, 2024, we refinanced our Term Loan B, which resulted in cash proceeds of $130.0 million, net of issuance costs, and the simultaneous repayment of $132.2 million of the Term Loan B.

Previous wording

Proceeds and Repayments from Secured Borrowing—During the six months ended June 30, 2025 and 2024, we received cash advances net of repayments of $3.5 million and $9.7 million, respectively, from a third-party to whom we outsource our insurance claim submissions process in a certain country.

Current wording

Proceeds and Repayments from Secured Borrowing—During the nine months ended September 30, 2025 and 2024, we received cash advances net of repayments of $2.6 million and $15.4 million, respectively, from a third-party to whom we outsource our insurance claim submissions process in a certain country.

Previous wording

Finance Lease Repayments—During the six months ended June 30, 2024, we made finance lease repayments associated with our Malaysia manufacturing facility totaling $5.9 million.

Current wording

Finance Lease Repayments—During the nine months ended September 30, 2024, we made finance lease repayments associated with our Malaysia manufacturing facility totaling $6.0 million.

Previous wording

Proceeds from Option Exercises—Proceeds from option exercises were $12.6 million and $6.9 million for the six months ended June 30, 2025 and 2024, respectively. The $5.7 million increase was primarily driven by more option exercises driven by an increase in our stock price.

Current wording

Proceeds from Option Exercises—Proceeds from option exercises were $17.2 million and $7.7 million for the nine months ended September 30, 2025 and 2024, respectively. The $9.5 million increase was primarily driven by a higher average option exercise price resulting from an increase in our stock price.

Previous wording

Payment of Taxes for Restricted Stock Net Settlements—Payments for taxes related to net restricted and performance stock unit settlements were $22.9 million and $6.1 million for the six months ended June 30, 2025 and 2024, respectively. The $16.7 million increase was primarily driven by a higher fair market value of the restricted stock units that vested during the period.

Current wording

Payment of Taxes for Restricted Stock Net Settlements—Payments for taxes related to net restricted and performance stock unit settlements were $25.1 million and $7.0 million for the nine months ended September 30, 2025 and 2024, respectively. The $18.1 million increase was primarily driven by more RSU vestings during the current period due to headcount additions to support the growth of the business and a higher fair market value of the restricted stock units that vested during the period.

Previous wording

Repurchase of Common Stock—During the six months ended June 30, 2025, we paid $30.1 million to repurchase common shares to offset dilution from stock-based compensation.

Current wording

Repurchase of Common Stock—During the nine months ended September 30, 2025, we paid $59.6 million to repurchase common shares to offset dilution from stock-based compensation.

Previous wording

Free cash flow was $229.4 million for the six months ended June 30, 2025, compared with $129.8 million for the six months ended June 30, 2024. The $99.6 million increase in free cash flow primarily resulted from an increase in operating income as adjusted for depreciation, amortization, and stock-based compensation expense.

Current wording

Free cash flow was $329.5 million for the nine months ended September 30, 2025, compared with $211.3 million for the nine months ended September 30, 2024. The $118.2 million increase in free cash flow primarily resulted from an increase in operating income as adjusted for depreciation, amortization, and stock-based compensation expense.

Previous wording

Our accounting policies for revenue recognition, income taxes, product warranty and inventory reserves are based on, among other things, judgments and assumptions made by management that include inherent risks and uncertainties. There have been no significant changes to the above critical accounting policies or in the underlying accounting assumptions and estimates used in such policies from those disclosed in our annual consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2024.

Current wording

Our accounting policies for pharmacy rebates and income taxes are based on, among other things, judgments and assumptions made by management that include inherent risks and uncertainties. There have been no significant changes to the above critical accounting policies or in the underlying accounting assumptions and estimates used in such policies from those disclosed in our annual consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2024.

Previous wording

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires incremental annual income tax disclosures. The new guidance standardizes categories for the effective tax rate reconciliation and requires disaggregation of income taxes and additional income tax-related disclosures. We intend to adopt these new disclosure requirements beginning with our annual filing for 2025, as required. The guidance may be applied prospectively or retrospectively.

Current wording

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires incremental annual income tax disclosures. The new guidance standardizes categories for the effective tax rate reconciliation and requires disaggregation of income taxes and additional income tax-related disclosures. We intend to adopt these new disclosure requirements prospectively beginning with our annual filing for 2025.