INSULET CORP
For the period ended Mar 31, 2026. Filed May 6, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 6, 2026
PODD$146.51-6.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-06.
0001145197-25-000069
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-06.
0001145197-26-000102
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 131 previous paragraphs and 124 current paragraphs.
67 unchanged; 33 reworded; 23 added; 31 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 8 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (23)
Current report
In the U.S., we sell our products through the pharmacy channel, which expands access by improving affordability, as no upfront investment is required. We also continue to increase awareness of Omnipod products through our direct-to-consumer advertising programs.
Current report
We continue to focus on our product development efforts, including choice of smartphone integration and CGM with Omnipod 5 and enhancing the customer experience through digital product and data capabilities. We are currently working to integrate Omnipod 5 with Abbott’s FreeStyle Libre 3 Plus (“Libre 3 Plus”) and developing Omnipod 6, our next generation AID product. During the first quarter of 2026, we completed a limited market release in the U.S. of Omnipod 5 algorithm enhancements, including a lower 100mg/dL target glucose set point. In addition, we completed a limited market release of the Omnipod 5 algorithm with Libre 3 Plus in the U.S. We also advanced development of our fully closed-loop AID system for people with type 2 diabetes, including recently enrolling the first participant in our EVOLVE pivotal study to support a planned 510(k) submission in 2027.
Current report
Finally, we continue to take steps to strengthen our global manufacturing capabilities, which includes investing in a new manufacturing plant in Costa Rica to support our continued growth.
Current report
As discussed in note 1 to our consolidated financial statements, revenue from the sale of Omnipod products in the U.S. for the three months ended March 31, 2025 included $148.5 million of sales to a related party.
Current report
Cost of revenue for the three months ended March 31, 2026 increased $72.7 million, or 45.5%, to $232.7 million, compared with $159.9 million for the three months ended March 31, 2025. Gross margin was 69.5% for the three months ended March 31, 2026, compared with 71.9% for the three months ended March 31, 2025. The 240 basis point decrease in gross margin was primarily driven by an increase in inventory excess and obsolescence reserve as we transition to our new Pod configurations and, to a lesser extent, higher warranty costs resulting from the voluntary medical device correction we issued in March 2026 related to specific lots of
Current report
Omnipod 5 Pods. These decreases in gross margin were partially offset by improved manufacturing efficiencies and a higher average selling price.
Current report
We estimate the voluntary medical device correction and related costs will be approximately $30 million, more than half of which we expect to incur in 2026, with the remainder expected to be incurred in 2027. The latter relates to incremental manual quality inspections expected to be performed until automated inspection systems are implemented. We do not expect tariffs to have a significant impact on our gross margin in 2026; however, the elimination of the current exemption for certain medical devices would have a material impact on our results of operations in future years.
Current report
Research and development expenses for the three months ended March 31, 2026 increased $30.1 million, or 50.6%, to $89.7 million, compared with $59.6 million for the three months ended March 31, 2025. Research and development expenses as a percent of revenue was 11.8% and 10.5% for the three months ended March 31, 2026 and 2025, respectively. The increase in research and development expenses were primarily due to continued investment in our Omnipod and pipeline products, including a fully closed-loop AID system for type 2 diabetes and Omnipod 6, our next generation AID system.
Current report
Selling, general and administrative expenses for the three months ended March 31, 2026 increased $56.6 million, or 21.7%, to $317.2 million, compared with $260.7 million for the three months ended March 31, 2025. The increase in selling, general and administrative expenses were primarily attributable to year-over-year headcount additions, mainly in our commercial and customer experience teams, to support our market share gains and customer retention. Commercial investments, including international market development and demand generation also contributed to the increase in selling, general and administrative expenses, although to a lesser extent. We expect to continue investing in sales and marketing to expand our sales force and prepare for upcoming product launches, including the full market release with Omnipod 5 algorithm integrated with Libre 3 Plus and our latest algorithm enhancements.
Current report
Interest expense increased $5.5 million to $14.7 million for the three months ended March 31, 2026, compared with $9.2 million for the three months ended March 31, 2025 primarily due to the issuance of 6.5% senior unsecured notes in March 2025 and the renewal of interest rate swaps at higher rates in April 2025.
Current report
Loss on Extinguishment of Debt
Current report
During three months ended March 31, 2025, the Company repurchased $125.2 million in principal ($124.5 million net of issuance costs) of Convertible Senior Notes for $162.5 million in cash, which resulted in a $39.5 million loss on extinguishment.
Current report
Income Tax Expense
Current report
Our effective tax rate was 19.4% for the three months ended March 31, 2026, compared with 26.4% for the three months ended March 31, 2025. The decrease in the effective tax rate was primarily due to non-deductible charges from the extinguishment of convertible debt during the three months ended March 31, 2025, as well as changes in the distribution of earnings among the jurisdictions in which we operate.
Current report
The Organization for Economic Co-operation and Development (“OECD”) and participating countries continue to advance the implementation of a 15% global minimum corporate tax (“Pillar Two”). Certain jurisdictions in which we operate, including the Netherlands and the United Kingdom, enacted legislation implementing aspects of Pillar Two during 2025. In January 2026, the OECD issued additional administrative guidance introducing a “side-by-side” framework applicable to U.S.-parented multinational groups, which is expected to reduce the extent to which certain Pillar Two charging provisions, including the Income Inclusion Rule and the Undertaxed Profits Rule, apply. Notwithstanding this guidance, we remain subject to Qualified Domestic Minimum Top-Up Taxes enacted by certain jurisdictions. We expect ongoing legislative developments and additional administrative guidance related to Pillar Two throughout 2026. Pillar Two did not have a material impact on our consolidated financial statements for the three months ended March 31, 2026; however, we continue to monitor developments and evaluate the potential impact of this legislation on future periods.
Current report
(2) Represents estimated warranty costs associated with the voluntary medical device correction in March 2026, which are included in cost of revenue. Refer to note 7 to the consolidated financial statements for additional information.
Current report
In February 2026, the Board of Directors extended our $125 million share repurchase program to December 31, 2027 and approved an additional $350 million in repurchases of common stock. Additionally, in February 2026, we entered into accelerated share repurchase agreements (“ASRs”) to repurchase $300 million of our common stock, which were completed by March 31, 2026. During the three months ended March 31, 2026, we repurchased approximately 1.25 million shares of common stock.
Current report
Commitments and Contingencies
Current report
Information regarding accounting standards that have been issued but not yet adopted is provided in note 1 to the condensed consolidated financial statements.
Current report
•worldwide macroeconomic and geopolitical uncertainty, including the war with Iran as well as risks associated with any future pandemic, including supply chain disruptions;
Current report
•the regulatory requirements and overall complexity in manufacturing our product and challenges associated with starting new manufacturing lines;
Current report
•our ability to maintain the privacy and security of Company and third-party information;
Current report
•restrictions imposed by our Credit Agreement; and
Removed paragraphs (31)
Previous report
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 report
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 report
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 report
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 report
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 report
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 report
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 report
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 report
We expect research and development spending in 2025 to increase compared with 2024 as we continue to invest in advancing our innovation and clinical pipeline.
Previous report
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 report
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 report
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 report
Other income (expense), net
Previous report
Other income, net was $12.1 million and $11.2 million for the three and nine months ended September 30, 2025, respectively. Both periods include a gain of $12.5 million resulting from the change in fair value of the derivative asset associated with the redemption of our convertible debt discussed in note 11.
Previous report
Other expense, net was $3.4 million and $5.9 million for the three and nine months ended September 30, 2024, respectively. These amounts were driven by a $2.1 million and $3.8 million loss during the three and nine months ended September 30, 2024, respectively, resulting from fair value adjustments for a strategic debt investment.
Previous report
Income Tax (Expense) Benefit
Previous report
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 report
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 report
(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.
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(4) Represents the change in fair value of the derivative asset associated with the redemption of our convertible debt.
Previous report
Mortgage
Previous report
In October 2025, the Company repaid the remaining $59.1 million outstanding under its mortgage upon maturity.
Previous report
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.
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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 report
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 report
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 report
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.
Previous report
In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40). The new guidance requires disaggregated disclosure of expenses included in certain expense captions presented in the statements of income as well as additional disclosures about selling expenses. We intend to adopt these new disclosure requirements beginning with our annual filing for 2027, as required. The guidance may be applied prospectively or retrospectively.
Previous report
In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The new guidance provides a practical expedient to simplify the measurement of credit losses for certain receivables and contract assets. The guidance is effective for us beginning in the first quarter of 2026. Early adoption is permitted. Once adopted, the guidance is applied prospectively. We are currently evaluating the impact of this guidance.
Previous report
In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which modernizes the internal-use software guidance by eliminating references to prescriptive and sequential software development stages. The guidance is effective for us beginning in the first quarter of 2027. Early adoption is permitted. The guidance may be applied prospectively, modified prospectively or retrospectively. We are currently evaluating the impact of this guidance.
Previous report
•worldwide macroeconomic and geopolitical uncertainty as well as risks associated with public health crises and pandemics, including government actions and restrictive measures implemented in response, supply chain disruptions, delays in clinical trials, and other impacts to the business, our customers, suppliers, and employees;
Reworded paragraphs (33)
Previous wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the accompanying notes included in this quarterly report. The following discussion may contain forward-looking statements that reflect our plans, estimates and beliefs, which are subject to risks, uncertainties and assumptions. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to these differences include those discussed under the headings “Risk Factors” and “Forward-Looking Statements” in both our Annual Report on Form 10-K for the year ended December 31, 2024 and in this quarterly report. Columns and rows within tables may not add due to rounding. Percentages have been calculated using actual, non-rounded figures.
Current wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the accompanying notes included in this quarterly report. The following discussion may contain forward-looking statements that reflect our plans, estimates and beliefs, which are subject to risks, uncertainties and assumptions. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to these differences include those discussed under the headings “Risk Factors” and “Forward-Looking Statements” in both our Annual Report on Form 10-K for the year ended December 31, 2025 and in this quarterly report. Columns and rows within tables may not add due to rounding. Amounts have been calculated using actual, non-rounded figures; accordingly, amounts and percentages may not recalculate, and columns and rows within tables may not add due to rounding.
Previous wording
Our mission is to improve the lives of people with diabetes. We are primarily engaged in the development, manufacture, and sale of our proprietary Omnipod product platform, a continuous insulin delivery system for people with insulin-dependent diabetes. The Omnipod platform primarily includes our most recent generation Omnipod 5 and its predecessor Omnipod DASH, which eliminate the need for multiple daily injections using syringes or insulin pens or the use of pump and tubing. Omnipod 5, which builds on our Omnipod DASH mobile platform, is a tubeless automated insulin delivery system that integrates with continuous glucose monitors (“CGM”) to manage blood sugar and is fully controlled by a compatible personal smartphone or Omnipod 5 Controller. It is indicated for type 1 diabetes and, in the United States, for type 2 diabetes for ages 18 and up. The CGM is sold separately by third parties. Omnipod DASH features a secure Bluetooth enabled Pod that is controlled by a smartphone-like Personal Diabetes Manager (“PDM”) with a color touch screen user interface.
Current wording
Our mission is to transform the lives of people with diabetes. We are primarily engaged in the development, manufacture, and sale of our proprietary Omnipod product platform, a continuous insulin delivery system for people with insulin-dependent diabetes. The Omnipod platform primarily includes our most recent generation Omnipod 5 and its predecessor Omnipod DASH, which eliminate the need for multiple daily injections using syringes or insulin pens or the use of pump and tubing. Omnipod 5, which builds on our Omnipod DASH mobile platform, is a tubeless automated insulin delivery system that integrates with a continuous glucose monitors (“CGM”) to manage blood sugar and is fully controlled by a compatible personal smartphone or Omnipod 5 Controller. It is indicated for type 1 diabetes and, in the United States, for type 2 diabetes for ages 18 and up. The CGM is sold separately by third parties. The Pod currently integrates with Dexcom, Inc.’s G6 and G7 CGMs and with Abbott Diabetes Care, Inc.’s (“Abbott”) FreeStyle Libre 2 Plus sensor (“Libre 2 Plus”) in various markets. Omnipod DASH features a secure Bluetooth enabled Pod that is controlled by a smartphone-like Personal Diabetes Manager (“PDM”) with a color touch screen user interface.
Previous wording
Our financial objective is to sustain profitable growth. To achieve this, we announced the launch of Omnipod 5 in the following nine additional countries this year: Italy, Denmark, Finland, Norway, Sweden, Australia, Belgium, Canada and Switzerland. Additionally, we are working on further building our international teams and advancing our regulatory, reimbursement, and market development efforts so we can bring Omnipod 5 to additional international markets.
Current wording
Our financial objective is to sustain profitable growth. To achieve this, we continue to roll out Omnipod 5 in additional countries. In February 2026, we launched Omnipod 5 in five counties in the Middle East. Additionally, we are working on further building our international teams and advancing our regulatory, reimbursement, and market development efforts so we can bring Omnipod 5 to additional international markets.
Previous 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.
Current wording
Total revenue for the three months ended March 31, 2026 increased $192.8 million, or 33.9%, to $761.7 million, compared with $569.0 million for the three months ended March 31, 2025. Constant currency revenue growth of 30.1% for the three months ended March 31, 2026 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 $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.
Current wording
Revenue from the sale of Omnipod products in the U.S. increased $113.9 million, or 28.3%, to $515.6 million for the three months ended March 31, 2026, compared with $401.7 million for the three months ended March 31, 2025. This increase primarily resulted from higher sales volume driven by growing our customer base.
Previous 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.
Current wording
Revenue from the sale of Omnipod products in our international markets increased $90.5 million, or 59.4%, to $242.9 million for the three months ended March 31, 2026, compared with $152.3 million for the three months ended March 31, 2025. Excluding the 14.2% favorable impact of currency exchange, the remaining 45.2% increase in revenue was primarily due to higher volumes from our growing customer base, and to a lesser extent, a higher average selling price for Omnipod 5, compared with Omnipod DASH.
Previous wording
For full year 2025, we expect higher International Omnipod revenue due to continued volume growth driven by new customers and higher price resulting from conversions to Omnipod 5 primarily due to the launch of Omnipod 5 in Australia, Canada and the Nordic countries, growth from the prior year launches, primarily France, and the continued roll out of Omnipod 5 in additional markets.
Current wording
For full year 2026, we expect higher International Omnipod revenue due to continued volume growth driven by new customers and higher price resulting from conversions to Omnipod 5.
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. 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.
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 $3.3 million and $14.9 million for the three months ended March 31, 2026 and 2025, respectively.
Previous 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.
Current wording
Interest income decreased $5.3 million to $4.9 million for the three months ended March 31, 2026, compared with $10.3 million for the three months ended March 31, 2025. The decrease in interest income was driven by lower average cash balances and, to a lesser extent, lower average interest rates.
Previous 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.
Current wording
We expect net interest expense for the full year 2026 to increase to approximately $40 million, primarily due to lower interest income.
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. 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.
Current wording
During 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, changes to the international tax framework, and the restoration of favorable tax treatment for certain business provisions. The legislation includes multiple effective dates for various provisions through 2027. Our effective tax rate for 2026 is affected by changes to the allocation of research and development expenses for purposes of the Foreign-Derived Deduction-Eligible Income (“FDDEI”), as well as other international tax reforms enacted under OBBBA. The effects of the legislation were not material to our consolidated financial statements for the three months ended March 31, 2026.
Previous wording
(2)Represents severance benefits for the Company's former Chief Executive Officer and Chief Financial Officer.
Current wording
(3) Represents adjustment to the severance benefits for our former Chief Financial Officer.
Previous wording
Adjusted EBITDA represents net income plus net interest expense (income), income tax expense (benefit), depreciation and amortization, stock-based compensation expense and other significant transactions or events, such as legal settlements, medical device corrections, gains (losses) on investments, and loss on extinguishment of debt, which affect the period-to-period comparability of our performances, as applicable. We present Adjusted EBITDA because management uses it as a supplemental measure in assessing our performance, and we believe that it is helpful to investors and other interested parties as a measure of our comparative performance from period to period. Adjusted EBITDA is a commonly used measure in determining business value and we use it internally to report results.
Current wording
Adjusted EBITDA represents net income plus net interest expense (income), income tax expense (benefit), depreciation and amortization, stock-based compensation expense and other significant transactions or events, such as legal settlements, gains (losses) on investments, and loss on extinguishment of debt, which affect the period-to-period comparability of our performances, as applicable. We present Adjusted EBITDA because management uses it as a supplemental measure in assessing our performance, and we believe that it is helpful to investors and other interested parties as a measure of our comparative performance from period to period. Adjusted EBITDA is a commonly used measure in determining business value and we use it internally to report results.
Previous wording
Free cash flow, a non-GAAP measure, is calculated as net cash provided by operating activities less capital expenditures. Management uses this non-GAAP measure, in addition to U.S. GAAP financial measures, to evaluate our operating results.
Current wording
Free cash flow is calculated as net cash provided by operating activities less capital expenditures. Management uses this non-GAAP measure, in addition to U.S. GAAP financial measures, to evaluate our operating results.
Previous 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.
Current wording
Net cash provided by operating activities of $113.8 million for the three months ended March 31, 2026 was primarily attributable to net income, as adjusted for depreciation and amortization, stock-based compensation expense, and deferred income taxes, partially offset by a $32.3 million working capital outflow. The working capital outflow was driven by a $69.3 million decrease in accrued expenses and other liabilities and a $30.6 million increase in accounts receivable, partially offset by a $71.4 million increase in accounts payable. The decrease in accrued expenses and other liabilities was primarily driven by the annual payout of cash bonuses for performance in the prior year. The increases in accounts receivable and payable were primarily due to an increase in sales driven by our growing customer base and the timing of payments, respectively.
Previous 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.
Current wording
Net cash used in investing activities was $27.7 million for the three months ended March 31, 2026, compared with $15.6 million for the three months ended March 31, 2025.
Previous 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.
Current wording
Capital Spending—Capital expenditures were $24.3 million for the three months ended March 31, 2026, compared with $12.3 million for the three months ended March 31, 2025. The $12.0 million increase primarily related to the purchase of machinery, equipment and tooling for our existing manufacturing facilities and initial investment in our Costa Rica manufacturing plant. We expect capital expenditures for 2026 to increase compared with 2025 to support our continued global manufacturing expansion plans. We expect to fund our capital expenditures using existing cash and financing.
Previous 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.
Current wording
Net cash used in financing activities was $319.9 million for the three months ended March 31, 2026, compared with net cash provided by financing activities of $277.7 million for the three months ended March 31, 2025.
Previous 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.
Current wording
Debt Issuance and Repayments—During the three months ended March 31, 2025, we received net proceeds of $440.7 million from the issuance of Senior Unsecured Notes and used the proceeds along with proceeds of $23.1 million from the unwinding the related capped call options to partially fund the $163.9 million repurchase of a portion of our Convertible Senior Notes.
Previous 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.
Current wording
Proceeds and Repayments from Secured Borrowing—During the three months ended March 31, 2025, we received $15.4 million of cash advances from a third-party to whom we outsourced our insurance claim submissions process in a certain country. Additionally, we repaid $13.4 million of cash advances during the three months ended March 31, 2025.
Previous 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.
Current wording
Payment of Taxes for Restricted Stock Net Settlements—Payments for taxes related to net restricted and performance stock unit settlements were $15.7 million and $21.2 million for the three months ended March 31, 2026 and 2025, respectively. The $5.5 million decrease was primarily driven by tax payments related to the vesting of performance and restricted stock units for a former executive in the prior year.
Previous 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.
Current wording
Repurchase of Common Stock—During the three months ended March 31, 2026, we paid $300.0 million to repurchase common shares pursuant to accelerated share repurchase agreements discussed under“Capitalization—Share Repurchase Program.”
Previous 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.
Current wording
Free cash flow was $89.5 million for the three months ended March 31, 2026, compared with $51.6 million for the three months ended March 31, 2025. The $38.0 million increase in free cash flow primarily resulted from an increase in operating income as adjusted for depreciation, amortization, and stock-based compensation expense, and a decrease in working capital outflow, partially offset by an increase in capital expenditures.
Previous wording
Free cash flow is a non-GAAP measure, which should be considered supplemental to and not a substitute for our reported financial results prepared in accordance with U.S. GAAP. See “Non-GAAP Financial Measures” A reconciliation between net cash provided by operating activities (the most comparable U.S. GAAP measure) and free cash flow is as follows:
Current wording
Free cash flow is a non-GAAP measure, which should be considered supplemental to and not a substitute for our reported financial results prepared in accordance with U.S. GAAP. See“Non-GAAP Financial Measures.”
Previous wording
In March 2025, we issued $450 million aggregate principal amount of 6.5% senior unsecured notes due April 2033. The notes contain leverage and fixed charge coverage ratio covenants, both of which are measured upon the incurrence of future debt, as well as other customary covenants, none of which we consider restrictive to our operations. Additional information regarding our debt is provided in note 9 to the consolidated financial statements.
Current wording
Our senior unsecured notes contain leverage and fixed charge coverage ratio covenants, both of which are measured upon the incurrence of future debt, as well as other customary covenants, none of which we consider restrictive to our operations.
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 $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.
Current wording
In 2026, we entered into a purchase agreement with NXP USA, Inc. pursuant to which we are committed to purchasing semi-conductor chips for approximately $96.9 million as of March 31, 2026.
Previous wording
This quarterly report on Form 10-Q contains forward-looking statements. Forward-looking statements relate to future events or our future financial performance. We generally identify forward looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar words. These statements are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, results of operations and financial condition.
Current wording
This quarterly report on Form 10-Q contains forward-looking statements. Forward-looking statements relate to future events or our future financial performance. We generally identify forward looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “would,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “risk” or “continue” or the negative of these terms or other similar words or expressions. These statements are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, results of operations, and financial condition.
Previous wording
•international regulatory, commercial and logistics business risks, including the implementation of tariffs;
Current wording
•international regulatory, commercial and logistics business risks, including any expansion of tariffs;
Previous wording
•unfavorable results of clinical studies, including issues with third parties conducting any studies, or future publication of articles or announcement of positions by diabetes associations or other organizations that are unfavorable;
Current wording
•unfavorable results of clinical studies, including issues with third parties conducting any studies, or future publication of articles or announcement of endorsements by diabetes associations or other organizations that are unfavorable;
Previous wording
•our ability to protect intellectual property and other proprietary rights;
Current wording
•our ability to protect our intellectual property and other proprietary rights;
Previous wording
•extensive government regulation applicable to medical devices, as well as complex and evolving privacy and data protection laws;
Current wording
•extensive government regulation applicable to medical devices, as well as complex and evolving privacy, data protection and artificial intelligence laws;
Previous wording
•potential adverse impacts resulting from a recall, or discovery of serious safety issues, or product liability lawsuits relating to off-label use;
Current wording
•potential adverse impacts resulting from a recall, or discovery of product safety issues, including potential adverse impacts relating to our recent medical device correction;
Previous wording
•ability to raise additional funds on acceptable terms or at all; and
Current wording
•our ability to raise additional funds on acceptable terms or at all;
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
A reconciliation between net cash provided by operating activities (the most comparable U.S. GAAP measure) and free cash flow is as follows: