INSULET CORP
For the period ended Sep 30, 2026. Filed Nov 4, 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.
Sep 30, 2026 · Filed Nov 4, 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 2026-06-30; filed 2026-08-05.
0001145197-26-000169
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-04.
0001145197-26-000192
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 128 previous paragraphs and 132 current paragraphs.
71 unchanged; 52 reworded; 8 added; 5 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 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 (8)
Current report
Selling, general and administrative expenses for the three months ended September 30, 2026 increased $35.5 million, or 11.3%, to $350.7 million, compared with $315.2 million for the three months ended September 30, 2025. Selling, general and administrative expenses for the nine months ended September 30, 2026 increased $179.2 million, or 21.5%, to $1,012.8 million, compared with $833.6 million for the nine months ended September 30, 2025. The increases for both periods were primarily attributable to higher personnel-related costs driven by increased headcount across our commercial, customer experience, regulatory, quality and other support functions, partially offset by a reduction in incentive compensation expense due to lower expected achievement of company performance targets in the current year. The increases also reflected higher spending on commercial support programs and consulting services. For the nine months ended September 30, 2026, the increase was further driven by higher depreciation and amortization expense associated with technology investments.
Current report
Interest expense increased $0.5 million to $16.2 million for the three months ended September 30, 2026, compared with $15.6 million for the three months ended September 30, 2025, primarily due to fees associated with the refinancing of our Term Loan B in September 2026. For the nine months ended September 30, 2026, interest expense of $44.4 million was comparable to the prior-year period, as fees associated with the refinancing of our Term Loan B in September were comparable to the debt transaction costs incurred in the prior-year period associated with the issuance of senior unsecured notes and the repurchase of convertible notes.
Current report
During both the three and nine months ended September 30, 2026, we recorded a $0.3 million loss on extinguishment of debt associated with the refinancing of our Term Loan B. During the nine months ended September 30, 2025, we repurchased all outstanding Convertible Notes ($796.0 million, net of issuance costs) for $1,052.2 million in cash, resulting in a $123.9 million loss on extinguishment of debt and a $132.3 million decrease in additional paid-in capital related to the portion of the Convertible Notes that was converted. Refer to Note 8 to our condensed consolidated financial statements for additional information.
Current report
Other income (expense), net
Current report
Other expense, net was $0.2 million and $0.7 million for the three and nine months ended September 30, 2026, respectively. Other income, net was $12.1 million and $11.2 million for the three and nine months ended September 30, 2025, respectively. Other income, net for both the three and nine months ended September 30, 2025 included a $12.5 million gain resulting from the change in fair value of the derivative asset associated with the redemption of our Convertible Senior Notes.
Current report
(6) Represents the change in fair value of the derivative asset associated with the redemption of our Convertible Senior Notes.
Current report
Investments in Developed Software—Investments in developed software were $13.1 million and $13.5 million for the nine months ended September 30, 2026 and 2025, respectively, and were primarily related to projects supporting our cloud-based capabilities.
Current report
In October 2026, the Board of Directors authorized a $1 billion common stock repurchase program, effective through December 31, 2028. We expect to allocate approximately $400 million toward repurchases in 2026, funded with existing cash.
Removed paragraphs (5)
Previous report
For full year 2026, we expect strong U.S. revenue growth primarily driven by the benefits of our recurring revenue model and continued volume growth of Omnipod 5.
Previous report
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 report
Selling, general and administrative expenses for the three months ended June 30, 2026 increased $87.1 million, or 33.8%, to $344.8 million, compared with $257.7 million for the three months ended June 30, 2025. Selling, general and administrative expenses for the six months ended June 30, 2026 increased $143.6 million, or 27.7%, to $662.1 million, compared with $518.4 million for the six months ended June 30, 2025.The increases in selling, general and administrative expenses for both the three and six months ended June 30, 2026 were primarily attributable to year-over-year headcount additions across our commercial, regulatory and quality assurance, and customer experience teams, as well as increased investments in market development initiatives, to strengthen our commercial capabilities and support future growth opportunities. The increases were also driven 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 in the prior year, and to a lesser extent, higher direct-to-consumer advertising spend and consulting costs.
Previous report
Interest expense decreased $6.1 million to $13.5 million for the three months ended June 30, 2026, compared with $19.6 million for the three months ended June 30, 2025 primarily due to Term Loan B refinancing fees in prior year which did not recur in the current year. Interest expense of $28.2 million for the six months ended June 30, 2026 was level with interest expense for the six months ended June 30, 2025 as the lack of refinancing fees was offset by higher expense resulting from the issuance of 6.5% senior unsecured notes in March 2025 and the renewal of interest rate swaps at higher rates in April 2025.
Previous report
During three months ended June 30, 2025, we repurchased $294.7 million in principal ($293.1 million net of issuance costs) of Convertible Senior Notes for $377.6 million in cash, which resulted in a $84.4 million loss on extinguishment. We repurchased $419.9 million in principal ($417.6 million net of issuance costs) of Convertible Senior Notes for $541.5 million in cash during six months ended June 30, 2025, which resulted in a $123.9 million loss on extinguishment.
Reworded paragraphs (52)
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, 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.
Current wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed 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. Amounts have been calculated using actual, non-rounded figures; accordingly, amounts, percentages, and basis points may not recalculate, and columns and rows within tables may not add due to rounding.
Previous 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 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. In June 2026, we expanded compatibility with Abbott’s Freestyle Libre 3 Plus sensor (“Libre 3 Plus”) in the United States and announced the U.S. rollout of Omnipod 5 algorithm enhancements, including a lower 100mg/dL target glucose set point. 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 develop, manufacture, and sell proprietary continuous insulin delivery systems for people with insulin-dependent diabetes. Our Omnipod platform includes our latest-generation Omnipod 5 and its predecessor, Omnipod DASH, both of which eliminate the need for multiple daily injections using syringes or insulin pens and avoid the need for a traditional insulin pump and tubing. Omnipod DASH features a secure Bluetooth enabled Pod that is controlled through a smartphone-like Personal Diabetes Manager (“PDM”) with a color touch screen user interface. Omnipod 5, which builds on our Omnipod DASH mobile platform, is a tubeless automated insulin delivery (“AID”) system that integrates with a continuous glucose monitor (“CGM”) to automate insulin delivery and is fully controlled by a compatible personal smartphone or the Omnipod 5 Controller. It is indicated for people with type 1 diabetes and, in the United States, for adults with type 2 diabetes. The CGM is sold separately by third parties. The Omnipod 5 Pod 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. In June 2026, we expanded U.S. compatibility to include Abbott’s FreeStyle Libre 3 Plus sensor (“Libre 3 Plus”) and announced the U.S. rollout of Omnipod 5 algorithm enhancements, including a lower target glucose setting of 100 mg/dL. In addition, we recently expanded Omnipod 5 integration with Libre 3 Plus to 10 additional countries.
Previous 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 and Omnipod Discover TM in five counties in the Middle East, and in July 2026, we launched Omnipod 5 and Omnipod Discover TMin Spain. 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 more international markets.
Current wording
Our financial objective is to sustain profitable growth. To support this objective, we continue to expand the availability of Omnipod 5 in international markets. In February 2026, we launched Omnipod 5 and Omnipod Discover®, our web-based data platform designed for Omnipod 5 users, their caregivers, and healthcare providers, in five countries in the Middle East, and in July 2026, we launched Omnipod 5 and Omnipod Discover in Spain. In addition, in October, we launched Omnipod Discover in the United States. We are also strengthening our international commercial organization and advancing regulatory, reimbursement, and market development initiatives to support future launches in additional markets.
Previous wording
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 wording
In the United States, we sell our products through the pharmacy channel, which expands access and improves affordability by eliminating upfront costs. We also continue to increase awareness of Omnipod products through our direct-to-consumer advertising programs.
Previous wording
We are also focused on 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 developing Omnipod 6, our next generation AID product. We also advanced development of our fully closed-loop AID system for people with type 2 diabetes, including enrolling the first participant in our EVOLVE pivotal study to support a planned 510(k) submission in 2027.
Current wording
We continue to advance key product innovation initiatives, including expanding smartphone integration and CGM compatibility for Omnipod 5 and enhancing the customer experience through digital product and data capabilities. We are progressing the development of Omnipod 6, our next-generation AID system, and have completed enrollment for the type 1 diabetes cohort in our STRIVE 2 study. In addition, we continue to advance the development of our fully closed-loop AID system for people with type 2 diabetes, including completion of enrollment in the EVOLVE pivotal study, which is intended to support a planned 510(k) submission in 2027.
Previous wording
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 wording
Finally, we continue to strengthen our global manufacturing capabilities, including investing in a new manufacturing plant in Costa Rica, to support our continued growth and future demand.
Previous 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.
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. Our pay-as-you-go pricing model reduces the up-front financial risk for third-party payors. As we grow our customer base, we expect to generate an increasing portion of our revenues through sales of our disposable Pods, which provide a recurring revenue stream.
Previous wording
During the six months ended June 30, 2026, we issued two voluntary medical device corrections (“the MDCs”), one in March and the other in May related to separate manufacturing issues that caused a tear in the cannula of certain Omnipod products. During the three and six months ended June 30, 2026, we recorded a net charge associated with the MDCs of $29.3 million and $41.0 million, respectively. We estimate the MDCs and related costs will be in the range of $60 million to $70 million, most of which we expect to incur in 2026, with the remainder expected to be incurred in 2027. The costs to be incurred in 2027 relate to incremental manual quality inspections expected to be performed until automated inspection systems are implemented.
Current wording
During the nine months ended September 30, 2026, we issued two voluntary medical device corrections (“the MDCs”), one in March and one in May, related to separate manufacturing issues that caused a tear in the cannula of certain Omnipod products. We recorded a net charge of $38.5 million associated with the MDCs during the nine months ended September 30, 2026. We estimate total costs associated with the MDCs will be approximately $50 million, most of which we expect to incur in 2026.
Previous wording
(1)Constant currency revenue growth is a non-GAAP financial measure, which should be considered supplemental to, and not a substitute for, our reported financial results prepared in accordance with GAAP. See “Management’s Use of Non-GAAP Measures.”
Current wording
(1)Constant currency revenue growth is a non-GAAP financial measure and should be considered supplemental to, and not a substitute for, financial results prepared in accordance with GAAP. See “Non-GAAP Financial Measures.”
Previous wording
Total revenue for the three months ended June 30, 2026 increased $152.6 million, or 23.5%, to $801.7 million, compared with $649.1 million for the three months ended June 30, 2025. Total revenue for the six months ended June 30, 2026 increased $345.3 million, or 28.4%, to $1.6 billion, compared with $1.2 billion for the six months ended June 30, 2025. Constant currency revenue growth of 22.7% and 26.2% for the three and six months ended June 30, 2026, 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 September 30, 2026 increased $135.8 million, or 19.2%, to $842.0 million, compared with $706.3 million for the three months ended September 30, 2025. Total revenue for the nine months ended September 30, 2026 increased $481.1 million, or 25.0%, to $2.4 billion, compared with $1.9 billion for the nine months ended September 30, 2025. Constant currency revenue growth of 19.6% and 23.8% for the three and nine months ended September 30, 2026, respectively, was primarily driven by higher sales volume resulting from growth in our customer base.
Previous wording
Revenue from the sale of Omnipod products in the U.S. increased $91.0 million, or 20.1%, to $544.1 million for the three months ended June 30, 2026, compared with $453.2 million for the three months ended June 30, 2025. Revenue from the sale of Omnipod products in the U.S. increased $204.8 million, or 24.0%, to $1,059.7 million for the six months ended June 30, 2026, compared with $854.9 million for the six months ended June 30, 2025. The increases for both the three and six months ended June 30, 2026 primarily resulted from higher sales volume driven by growing our customer base.
Current wording
Revenue from the sale of Omnipod products in the U.S. increased $73.3 million, or 14.7%, to $570.4 million for the three months ended September 30, 2026, compared with $497.1 million for the three months ended September 30, 2025. Revenue from the sale of Omnipod products in the U.S. increased $278.1 million, or 20.6%, to $1,630.1 million for the nine months ended September 30, 2026, compared with $1,352.0 million for the nine months ended September 30, 2025. The increases in periods primarily resulted from higher sales volume due to growth in our customer base.
Previous wording
As discussed in note 1 to our consolidated financial statements, revenue from the sale of Omnipod products in the U.S. included $178.6 million and $327.1 million of sales to a related party for the three and six months ended June 30, 2025, respectively.
Current wording
As discussed in Note 1 to our condensed consolidated financial statements, certain sales to one of our distributors were considered related party transactions during a portion of 2025. Revenue from the sale of Omnipod products in the U.S. included $184.5 million and $511.6 million of sales to this distributor for the three and nine months ended September 30, 2025, respectively.
Previous wording
Revenue from the sale of Omnipod products in our international markets increased $66.0 million, or 35.5%, to $251.8 million for the three months ended June 30, 2026, compared with $185.8 million for the three months ended June 30, 2025. Excluding the 2.7% favorable impact of currency exchange, the remaining 32.9% 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.
Current wording
Revenue from the sale of Omnipod products in our international markets increased $64.1 million, or 31.7%, to $266.2 million for the three months ended September 30, 2026, compared with $202.1 million for the three months ended September 30, 2025. Excluding the 1.3% unfavorable impact of foreign currency exchange rates, the remaining 33.0% increase in revenue was primarily due to higher volumes from our growing customer base and, to a lesser extent, higher average selling prices associated with the transition from Omnipod DASH to Omnipod 5.
Previous wording
Revenue from the sale of Omnipod products in our international markets increased $156.5 million, or 46.3%, to $494.6 million for the six months ended June 30, 2026, compared with $338.1 million for the six months ended June 30, 2025. Excluding the 7.9% favorable impact of currency exchange, the remaining 38.4% 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.
Current wording
Revenue from the sale of Omnipod products in our international markets increased $220.6 million, or 40.8%, to $760.8 million for the nine months ended September 30, 2026, compared with $540.2 million for the nine months ended September 30, 2025. Excluding the 4.4% favorable impact of foreign currency exchange rates, the remaining 36.4% increase in revenue was primarily due to higher volumes from our growing customer base and, to a lesser extent, higher average selling prices associated with the transition from Omnipod DASH 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 $5.8 million and $10.2 million for the three months ended June 30, 2026 and 2025, respectively, and $9.1 million and $25.1 million for the six months ended June 30, 2026 and 2025, respectively. The $4.4 million and $16.0 million decreases for the three and six months ended June 30, 2026, respectively, were driven by lower order volumes from our partner.
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 $5.5 million and $7.1 million for the three months ended September 30, 2026 and 2025, respectively, and $14.6 million and $32.2 million for the nine months ended September 30, 2026 and 2025, respectively. The $1.6 million and $17.6 million decreases for the three and nine months ended September 30, 2026, respectively, were driven by lower order volumes.
Previous wording
Cost of revenue for the three months ended June 30, 2026 increased $42.3 million, or 21.5%, to $239.1 million, compared with $196.9 million for the three months ended June 30, 2025. Gross margin was 70.2% for the three months ended June 30, 2026, compared with 69.7% for the three months ended June 30, 2025. The 50 basis point increase in gross margin was primarily driven by improved manufacturing efficiencies and, to a lesser extent, increased volumes from our growing customer base. These increases in gross margin were partially offset by higher warranty costs resulting from the voluntary medical device correction issued in May 2026 discussed under “Factors Affecting Operating Results.”
Current wording
Cost of revenue for the three months ended September 30, 2026 increased $13.7 million, or 7.0%, to $209.9 million, compared with $196.2 million for the three months ended September 30, 2025. Gross margin was 75.1% for the three months ended September 30, 2026, compared with 72.2% for the three months ended September 30, 2025. The 280 basis point increase in gross margin was primarily driven by improved manufacturing efficiencies and, to a lesser extent, a 90 basis point benefit from an adjustment to our estimated warranty accrual associated with the voluntary MDCs, reflecting fewer Pod replacements than originally estimated.
Previous wording
Cost of revenue for the six months ended June 30, 2026 increased $115.0 million, or 32.2%, to $471.8 million, compared with $356.8 million for the six months ended June 30, 2025. Gross margin was 69.8% for the six months ended June 30, 2026, compared with 70.7% for the six months ended June 30, 2025. The 90 basis point decrease in gross margin was primarily driven by higher warranty costs resulting from the voluntary medical device corrections discussed under “Factors Affecting Operating Results” and, to a lesser extent, an increase in inventory excess and obsolescence reserve as we transition to our new Pod configurations. These decreases in gross margin were partially offset by improved manufacturing efficiencies and a higher average selling price.
Current wording
Cost of revenue for the nine months ended September 30, 2026 increased $128.7 million, or 23.3%, to $681.7 million, compared with $553.0 million for the nine months ended September 30, 2025. Gross margin was 71.7% for the nine months ended September 30, 2026, compared with 71.3% for the nine months ended September 30, 2025. The 40 basis point increase in gross margin was primarily driven by improved manufacturing efficiencies, partially offset by higher warranty costs resulting from the voluntary MDCs discussed under “Factors Affecting Operating Results” and higher inventory excess and obsolescence reserves associated with the transition to our new Pod configurations.
Previous wording
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 wording
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 gross margin and results of operations in future periods.
Previous wording
Research and development expenses for the three months ended June 30, 2026 increased $14.7 million, or 20.0%, to $88.1 million, compared with $73.4 million for the three months ended June 30, 2025. Research and development expenses as a percent of revenue was 11.0% and 11.3% for the three months ended June 30, 2026 and 2025, respectively. Research and development expenses for the six months ended June 30, 2026 increased $44.8 million, or 33.7%, to $177.8 million, compared with $133.0 million for the six months ended June 30, 2025. Research and development expenses as a percent of revenue was 11.4% and 10.9% for the six months ended June 30, 2026 and 2025, respectively. The increase in research and development expenses in both the three and six months ended June 30, 2026 were primarily due to continued investment in our Omnipod and pipeline products, including Omnipod 6, our next generation AID system, and a fully closed-loop AID system for type 2 diabetes.
Current wording
Research and development expenses for the three months ended September 30, 2026 increased $14.4 million, or 18.7%, to $91.6 million, compared with $77.2 million for the three months ended September 30, 2025. Research and development expenses for the nine months ended September 30, 2026 increased $59.2 million, or 28.2%, to $269.4 million, compared with $210.2 million for the nine months ended September 30, 2025. The increases in research and development expenses for both periods were primarily due to continued investment in our Omnipod and pipeline products, including Omnipod 6, our next-generation AID system, and a fully closed-loop AID system for type 2 diabetes, partially offset by a reduction in incentive compensation expense due to lower expected achievement of company performance targets in the current year.
Previous wording
Interest income decreased $6.5 million to $3.6 million for the three months ended June 30, 2026, compared with $10.1 million for the three months ended June 30, 2025. Interest income decreased $11.8 million to $8.5 million for the six months ended June 30, 2026, compared with $20.3 million for the six months ended June 30, 2025. The decreases in interest income for both the three and six months ended June 30, 2026 were driven by lower average cash balances and, to a lesser extent, lower average interest rates.
Current wording
Interest income decreased $4.5 million to $4.1 million for the three months ended September 30, 2026, compared with $8.6 million for the three months ended September 30, 2025. Interest income decreased $16.3 million to $12.6 million for the nine months ended September 30, 2026, compared with $29.0 million for the nine months ended September 30, 2025. The decreases for both periods were primarily due to lower average cash and investment balances.
Previous wording
Our effective tax rate was 20.0% and 19.7% for the three and six months ended June 30, 2026, respectively, compared with 20.8% and 24.3% for the three and six months ended June 30, 2025, respectively. The decreases in the effective tax rate in both periods were primarily due to non-deductible charges from the extinguishment of convertible debt in the prior year, as well as changes in the jurisdictional profit mix.
Current wording
Our effective tax rate was 20.4% and 20.0% for the three and nine months ended September 30, 2026, respectively, compared with 28.7% and 27.0% for the three and nine months ended September 30, 2025, respectively. The decreases in the effective tax rate in both periods were primarily due to the non-deductible loss on extinguishment of debt associated with the repurchase of our Convertible Senior Notes in the prior year and changes in the jurisdictional profit mix.
Previous wording
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 and six months ended June 30, 2026; however, we continue to monitor developments and evaluate the potential impact of this legislation on future periods.
Current wording
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 affecting the application of certain Pillar Two provisions to U.S.-parented multinational groups. We remain subject to Qualified Domestic Minimum Top-Up Taxes enacted by certain jurisdictions. Pillar Two did not have a material impact on our condensed consolidated financial statements for the three and nine months ended September 30, 2026; however, we continue to monitor developments and evaluate the potential impact on future periods.
Previous 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 and six months ended June 30, 2026.
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”) and other international tax reforms enacted under the OBBBA. The effects of the legislation were not material to our condensed consolidated financial statements for the three and nine months ended September 30, 2026.
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 (CEO).
Current wording
(2) Amounts for the three and nine months ended September 30, 2025 include $1.0 million and $11.7 million, respectively, related to the reversal of stock-based compensation expense associated with the departure of the Company’s former Chief Executive Officer (CEO).
Previous wording
(3) Amounts for the three and six months ended June 30, 2026 represent adjustments to the severance benefits for the Company’s former Chief Financial Officer (CFO). The amounts for the three and six months ended June 30, 2025 represent the severance benefits for the Company’s former CEO.
Current wording
(4) The amount for the nine months ended September 30, 2026 represents an adjustment to severance benefits for the Company’s former Chief Financial Officer (CFO). The amounts for the three and nine months ended September 30, 2025 represent severance benefits for the Company’s former CEO and CFO.
Previous wording
(4) Relates to the repurchase of convertible debt.
Current wording
(5) Amounts for the three and nine months ended September 30, 2026 relate to the refinancing of our Term Loan B. The amount for the nine months ended September 30, 2025 relates to the repurchase of Convertible Senior Notes.
Previous wording
Constant currency revenue growth represents the change in revenue between current and prior-year periods using the exchange rate in effect during the applicable prior-year period. We present constant currency revenue growth because we believe it provides meaningful information regarding our results on a consistent and comparable basis. Management uses this non-GAAP financial measure, in addition to financial measures in accordance with GAAP, to evaluate our operating results. It is also one of the performance metrics that determines management incentive compensation.
Current wording
Constant currency revenue growth represents the change in revenue between current and prior-year periods using the exchange rate in effect during the applicable prior-year period. We present constant currency revenue growth because we believe it provides meaningful information regarding our results on a consistent and comparable basis across periods. Management uses this non-GAAP financial measure, in addition to financial measures in accordance with GAAP, to evaluate our operating results. It is also one of the performance metrics that determines management incentive compensation.
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, 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 that affect the period-to-period comparability of our performance, as applicable. We present Adjusted EBITDA because management uses it as a supplemental measure to assess our performance, and we believe it is helpful to investors and other interested parties in comparing our performance from period to period.
Previous wording
These non-GAAP financial measures should be considered supplemental to, and not a substitute for, our reported financial results prepared in accordance with GAAP. In addition, the above definitions may differ from similarly titled measures used by others. Non-GAAP financial measures exclude the effect of items that increase or decrease our reported results of operations; accordingly, we strongly encourage investors to review our consolidated financial statements in their entirety.
Current wording
These non-GAAP financial measures should be considered supplemental to, and not a substitute for, our financial results prepared in accordance with GAAP. In addition, the above definitions may differ from similarly titled measures used by others. Non-GAAP financial measures exclude the effect of items that increase or decrease our reported results of operations; accordingly, we strongly encourage investors to review our consolidated financial statements in their entirety.
Previous wording
Net cash provided by operating activities of $202.2 million for the six months ended June 30, 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 $94.5 million working capital outflow. The working capital outflow was driven by a $76.9 million increase in accounts receivable, a $34.9 million increase in inventories, and a $28.1 million increase in prepaid expenses and other assets, partially offset by a $39.9 million increase in accounts payable. The increase in accounts receivable was primarily driven by the timing of distributor orders in the United States. The increase in inventories was primarily driven by a planned inventory build to satisfy our growing demand. The increase in prepaid expenses and other assets was primarily driven by receivables from our contract manufacturer. The increase in accounts payable was primarily due to the timing of payments.
Current wording
Net cash provided by operating activities of $325.7 million for the nine months ended September 30, 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 $177.3 million working capital outflow. The working capital outflow was primarily driven by a $179.6 million increase in accounts receivable and a $103.0 million increase in inventories, partially offset by a $72.0 million increase in accounts payable and a $40.1 million increase in accrued expenses and other liabilities. The increase in accounts receivable was primarily driven by the timing of distributor orders in the United States. The increase in inventories was primarily driven by a planned inventory build to satisfy anticipated demand and advance purchases of materials to mitigate supply risk and inflation. The increase in accounts payable was primarily due to the timing of payments. The increase in accrued expenses and other liabilities was driven by an increase in accrued rebates due to higher sales volume, partially offset by a decrease in accrued incentive compensation due to lower expected achievement of performance targets in the current year.
Previous wording
Net cash used in investing activities was $65.1 million for the six months ended June 30, 2026, compared with $38.9 million for the six months ended June 30, 2025.
Current wording
Net cash used in investing activities was $132.0 million for the nine months ended September 30, 2026, compared with $69.9 million for the nine months ended September 30, 2025.
Previous wording
Capital Spending—Capital expenditures were $56.8 million for the six months ended June 30, 2026, compared with $30.9 million for the six months ended June 30, 2025. The $25.9 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.
Current wording
Capital Spending—Capital expenditures were $113.9 million for the nine months ended September 30, 2026, compared with $56.5 million for the nine months ended September 30, 2025. The $57.5 million increase primarily related to the purchase of machinery, equipment, and tooling for our existing manufacturing facilities and investments 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 $315.9 million for the six months ended June 30, 2026, compared with net cash used in financing activities of $65.8 million for the six months ended June 30, 2025.
Current wording
Net cash used in financing activities was $321.9 million for the nine months ended September 30, 2026, compared with $522.8 million for the nine months ended September 30, 2025.
Previous wording
Debt Issuance and Repayments—During the six months ended June 30, 2026, we repaid $9.1 million of debt, compared with payments of $26.4 million during the six months ended June 30, 2025. Additionally, 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 the related capped call options to partially fund the $541.5 million repurchase of a portion of our Convertible Senior Notes. During the six months ended June 30, 2025, we also received proceeds of $15.5 million from the refinancing of Term Loan B.
Current wording
Debt Issuance and Repayments—During the nine months ended September 30, 2026, we repaid $43.7 million of debt, primarily in connection with the refinancing of our Term Loan B, compared with payments of $33.4 million during the nine months ended September 30, 2025. During the nine months ended September 30, 2026 and 2025, we received proceeds of $30.0 million and $15.5 million, respectively, from the refinancing of our Term Loan B. In addition, 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 those proceeds, together with $164.6 million of proceeds from the unwinding of the related capped call options, to partially fund the $1,052.2 million repurchase of Convertible Senior Notes.
Previous wording
Proceeds and Repayments from Secured Borrowing—During the six months ended June 30, 2025, we received $36.1 million of cash advances from a third-party to whom we outsourced our insurance claim submissions process in a certain country and repaid $32.6 million of cash advances.
Current wording
Proceeds and Repayments from Secured Borrowing—During the nine months ended September 30, 2025, we received $49.4 million of cash advances from a third party to which we outsourced insurance claim submission activities in one of our international markets and repaid $46.8 million of such advances.
Previous wording
Proceeds from Option Exercises—Proceeds from option exercises were $0.5 million and $12.6 million for the six months ended June 30, 2026 and 2025, respectively. The $12.1 million decrease was primarily driven by fewer option exercises resulting from our lower stock price, and to a lesser extent, option exercises by a former executive in the prior year.
Current wording
Proceeds from Option Exercises—Proceeds from option exercises were $0.7 million and $17.2 million for the nine months ended September 30, 2026 and 2025, respectively. The $16.5 million decrease was primarily driven by fewer option exercises due to our lower 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 $16.2 million and $22.9 million for the six months ended June 30, 2026 and 2025, respectively. The $6.7 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.
Current wording
Payment of Taxes for Restricted Stock Net Settlements—Payments for taxes related to net restricted and performance stock unit settlements were $16.9 million and $25.1 million for the nine months ended September 30, 2026 and 2025, respectively. The $8.2 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 six months ended June 30, 2026 and 2025, we repurchased common stock for an aggregate purchase price of $300.0 million and $30.1 million, respectively. Repurchases during the six months ended June 30, 2026 were made pursuant to accelerated share repurchase agreements discussed under“Capitalization—Share Repurchase Program.”
Current wording
Repurchase of Common Stock—During the nine months ended September 30, 2026 and 2025, we repurchased common stock for an aggregate purchase price of $300.0 million and $59.6 million, respectively. Repurchases during the nine months ended September 30, 2026 were made pursuant to accelerated share repurchase agreements discussed under“Capitalization—Share Repurchase Program.”
Previous wording
Free cash flow was $145.4 million for the six months ended June 30, 2026, compared with $229.4 million for the six months ended June 30, 2025. The $83.9 million decrease in free cash flow primarily resulted from an increase in working capital outflow and an increase in capital expenditures, partially offset by an increase in operating income as adjusted for depreciation, amortization, and stock-based compensation expense.
Current wording
Free cash flow was $211.7 million for the nine months ended September 30, 2026, compared with $329.5 million for the nine months ended September 30, 2025. The $117.8 million decrease in free cash flow primarily resulted from higher cash used for working capital and higher capital expenditures, partially offset by an increase in operating income.
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.”
Current wording
Free cash flow is a non-GAAP financial measure that 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.”
Showing the first 40 of 52 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
(1) Adjusted EBITDA 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.”