Tandem Diabetes Care Reports 8.1% Sales Growth and $52.4 Million Net Loss in Q2 2025

Tandem Diabetes Care, Inc. reported significant financial results for the second quarter of 2025, with total sales reaching $240.7 million, a 8.1% increase from $221.9 million in the same period last year. For the first half of 2025, the company generated $475.1 million in revenue, compared to $413.6 million in the first half of 2024. The gross profit for the second quarter was $125.9 million, yielding a gross margin of 52%, up from 51% in the prior year. However, the company also reported a net loss of $52.4 million for the quarter, compared to a loss of $30.8 million in Q2 2024, reflecting increased operating expenses primarily due to litigation and settlement costs.

The company's operating expenses surged to $177.7 million in the second quarter, up from $143.6 million a year earlier, largely driven by a $20 million litigation expense related to a settlement agreement with Roche. Research and development expenses slightly decreased to $48.1 million from $49.3 million in the previous year. The increase in operating expenses, combined with a loss from equity method investments, contributed to the overall net loss for the quarter.

Tandem's customer base continues to grow, with over 480,000 users in its in-warranty installed base as of December 31, 2024. The company has expanded its product offerings, including the Tandem Mobi insulin pump, which received CE Mark approval in May 2025. This product is designed to cater to a broader market, including individuals with type 2 diabetes who require intensive insulin therapy. The company is also pursuing a multi-channel managed care strategy, which includes offering products through pharmacy channels, expected to enhance accessibility and sales.

Despite the positive sales growth, Tandem faces challenges, including increased competition and regulatory scrutiny. The company is subject to extensive governmental regulations, and any failure to comply could adversely affect its operations. Additionally, the ongoing litigation and settlement expenses may impact future profitability. Looking ahead, Tandem aims to leverage its innovative product portfolio and expand its market presence while navigating the complexities of the healthcare landscape. The company believes its cash and cash equivalents, along with short-term investments totaling $315.4 million, will be sufficient to fund its operations for at least the next 12 months.