Full Year 2026 MiniMed Group Inc Earnings Call

June 3, 2026

Speaker #1: This time all participants are in a listen-only mode. After the speaker's presentation, there'll be a question-and-answer session. To ask a question during the session, you'll need to press star 11 on your telephone.

Speaker #1: You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised today's conference is being recorded.

Speaker #1: I would now like to end the conference over to your speaker today, Ryan Weispfenning, Head of MiniMed Investor Relations. Please go ahead.

Speaker #2: Hello everyone, and thanks for joining us today for our fiscal 26 fourth-quarter earnings webcast. I'm Ryan Weispfenning, Vice President and Head of MiniMed Investor Relations.

Speaker #2: Joining me today are Que Dallara, Chief Executive Officer, and Chad Spooner, Chief Financial Officer. Today's program will last no longer than 45 minutes, so that we may complete the call before the market opens.

Speaker #1: Good day, and thank you for standing by. Welcome to the MiniMed Fourth Quarter and Fiscal Year 2026 Financial Results Conference Call. At this time, all participants are in a listen-only mode.

Speaker #2: Earlier this morning, we issued a press release discussing our results and containing several financial schedules. We also posted an earnings presentation to our website that provides additional details on our performance.

Speaker #1: After the speaker's presentation, there'll be a question-and-answer session. To ask a question during the session, you'll need to press star 11 on your telephone.

Speaker #2: Both can be accessed on our website at investors.minimed.com. During today's program, many of the statements we make may be considered forward-looking statements, which are subject to risks and uncertainties, and actual results may differ materially from those projected in any forward-looking statement.

Speaker #1: We will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised today's conference is being recorded.

Speaker #1: I would now like to end the conference over to your speaker today, Ryan Weisfending, Head of MiniMed Investor Relations. Please go ahead.

Speaker #2: Please take a moment to review the cautionary statements regarding forward-looking statements, including in our earnings press release and the presentation. Additional information concerning factors that could cause our actual results to differ is contained in the filings we make with the SEC, and we do not undertake to update any forward-looking statement or any of the information contained in this presentation.

Speaker #2: Hello everyone, and thanks for joining us today for our Fiscal '26 Fourth Quarter Earnings Webcast. I'm Ryan Weisfending, Vice President and Head of MiniMed Investor Relations.

Speaker #2: Joining me today are Q. Delara, Chief Executive Officer, and Chad Spooner, Chief Financial Officer. Today's program will last no longer than 45 minutes, so that we may complete the call before the market opens.

Speaker #2: In this presentation, we reference organic revenue growth, a non-GAAP financial measure, a reconciliation to the most directly comparable GAAP financial measures included in today's earnings press release.

Speaker #2: With our organic revenue growth and adjusted EBITDA margin guidance, we do not provide reconciliations to comparable GAAP measures because certain items in these forward-looking non-GAAP measures cannot be predicted without unreasonable effort.

Speaker #2: We operated as part of Medtronic until our IPO in early March. Our GAAP financial statements were therefore prepared on a carve-out basis, and include certain historical cost allocations from Medtronic for centralized support functions.

Speaker #2: We refer to certain financial information for MiniMed on a standalone basis. This replaces those Medtronic historical cost allocations with the expected run rate cost structure for standalone MiniMed.

Speaker #2: This information also eliminates the impact of certain incremental non-recurring costs. These non-GAAP standalone financial measures are included to provide consistency and comparability while evaluating operational performance on a run rate standalone basis for reporting periods after MiniMed's fiscal year 2026.

Speaker #2: A reconciliation of these standalone non-GAAP financial measures to their most directly comparable GAAP financial measures is included in today's earnings presentation. With that, over to you, Q.

Speaker #2: We operated as part of Medtronic until our IPO in early March. Our GAAP financial statements were therefore prepared on a carve-out basis and include certain historical cost allocations from Medtronic for centralized support functions.

Speaker #3: Thank you, Ryan, and good morning everyone. It's good to be speaking with you today on our first earnings call as a standalone publicly traded MiniMed.

Speaker #3: Before we go into the details, let me start with who we are and why we exist. MiniMed exists to give people living with insulin-dependent diabetes more time in range, more freedom from the daily grind of managing their condition, and more time to simply live their lives.

Speaker #2: This information also eliminates the impact of certain incremental, non-recurring costs. These non-GAAP standalone financial measures are included to provide consistency and comparability while evaluating operational performance on a run-rate standalone basis for reporting periods after MiniMed's fiscal year 2026.

Speaker #3: We do that today for 659,000 pump users around the world. Through the most complete, most clinically validated, automated insulin delivery platform available anywhere. That has been our north star for more than 40 years.

Speaker #3: We went public in early March. The week after, we received CE mark for the Instinct Sensor made by Abbott with the MiniMed 780G, a year ahead of schedule.

Speaker #3: And the week after that, we received FDA clearance for MiniMed Flex, two quarters ahead of expectations. For fiscal 26, we had record revenue, crossing the $3 billion threshold for the first time.

Speaker #3: Thank you, Ryan, and good morning, everyone. It's good to be speaking with you today on our first earnings call as a standalone publicly traded MiniMed.

Speaker #3: With another year of high single-digit growth. These milestones reflect the acute focus we've had on driving pipeline execution over the last few years. In Q4, we finished fiscal 26 strong, and we're carrying that momentum into fiscal 27, our Q4 revenue growth was driven by continued strength in international markets and sequential pump adoption momentum in the US.

Speaker #3: New sensors were a meaningful driver throughout the entire second half. Let me address US performance directly. Growth of 1.5% in Q4 was below our initial expectations, and I want to be clear about what drove it.

Speaker #3: We went public in early March. The week after, we received CE Mark for the Instinct Sensor made by Abbott with the MiniMed 780G, a year ahead of schedule.

Speaker #3: FDA clearance of MiniMed Flex came six months early. This is clearly positive news for us and a significant milestone, but it did create a short-term dynamic with some customers who were close to a pump decision chose to wait for the new system.

Speaker #3: And the week after that, we received FDA clearance for MiniMed Flex, two quarters ahead of expectations. For fiscal '26, we had record revenue, crossing the $3 billion threshold for the first time.

Speaker #3: With another year of high single-digit growth, these milestones reflect the acute focus we've had on driving pipeline execution over the last few years. In Q4, we finished fiscal '26 strong and are carrying that momentum into fiscal '27. Our Q4 revenue growth was driven by continued strength in international markets and sequential pump adoption momentum in the US.

Speaker #3: That's a timing issue, not a demand issue. MiniMed Flex is the most substantial hardware and software pump update in a decade, and we're excited with what we're hearing in the market about Flex's launch later this month.

Speaker #3: In addition to Flex, we pulled forward two more launches, the MiniMed 780G with Instinct, starts rolling out internationally later this month, giving our international pump users more sense of choice.

Speaker #3: New sensors were a meaningful driver throughout the entire second half. Let me address U.S. performance directly. Growth of 1.5% in Q4 was below our initial expectations, and I want to be clear about what drove it.

Speaker #3: And MiniMed Go, our smart MDI system, for the 15 million people worldwide on multiple daily injections, launched in Europe earlier this year and in the US just this week.

Speaker #3: And it is these three products that underpin our confidence in our fiscal 27 growth. Behind these three, the pipeline is just as exciting. MiniMed fits our next-generation patch pump and Vivera our fully closed-loop algorithm for Type 1 and Type 2, both on track for clearance next year.

Speaker #3: That's a timing issue, not a demand issue. MiniMed Flex is the most substantial hardware and software pump update in a decade, and we're excited about what we're hearing in the market regarding Flex's launch later this month.

Speaker #3: Now, looking at Q4 in more detail, starting with international. As I mentioned earlier, our international business delivered a strong quarter, growing 12% organic and acceleration from Q3.

Speaker #3: Increased Simplera availability drove a high single-digit sequential increase in new pumps sold or NPS, and 100 basis points sequential increase in CGM attachment. On a year-over-year basis, NPS were down, mid-single digits.

Speaker #3: And MiniMed Go, our smart MDI system, for the 15 million people worldwide on multiple daily injections, launched in Europe earlier this year and in the US just this week.

Speaker #3: Primarily due to a tough comparison in Q4 of last year. That period benefited from the initial launch of Simplera, which drove a meaningful acceleration in NPS and set a high baseline.

Speaker #3: And it is these three products that underpin our confidence in our fiscal '27 growth. Behind these three, the pipeline is just as exciting. MiniMed fits our next-generation patch pump, and Vivera, our fully closed-loop algorithm for Type 1 and Type 2, are both on track for clearance next year.

Speaker #3: We delivered strong international growth even before the Instinct Sensor entered these markets. The EU Instinct launch opens up the MiniMed 780G to more than four and a half million Abbott sensor users on insulin, intensive therapy, a population we haven't been able to reach until now.

Speaker #3: Turning to the US, with the context on overall US performance that I covered earlier, let me walk you through two components: CGM and pumps.

Speaker #3: Increased Simplera availability drove a high single-digit sequential increase in new pumps sold, or NPS, and a 100 basis point sequential increase in CGM attachment. On a year-over-year basis, NPS were down mid-single digits.

Speaker #3: Because the underlying dynamics in each tell an important story about where this business is heading. US CGM revenue grew high single digits in Q4.

Speaker #3: Our first full quarter with both Simplera and Instinct available. Since launching both sensors in Q2, US CGM attachment has increased by mid-single digit percentage points.

Speaker #3: More of our pump users are using our sensors. And that's the full stack working when the sensor and pump are designed together powered by our smart guard algorithm, patients use them together.

Speaker #3: And that creates a durable, recurring revenue stream that compounds over time. Our new sensor offerings are also bringing new patients to MiniMed. US NPS were our year-over-year and our mid-single digit sequentially, a leading indicator of where US revenue is heading.

Speaker #3: Turning to the US, with the context on overall US performance that I covered earlier, let me walk you through two components: CGM and pumps.

Speaker #3: And here's why I'm confident about fiscal 27. Sensors were the setup. MiniMed Go and Flex are the follow-through. MiniMed Go launched two weeks ago, providers can prescribe directly from their EMR to MiniMed pharmacy, and the product is shipped directly to patients.

Speaker #3: Because the underlying dynamics in each tell an important story about where this business is heading. US CGM revenue grew high single digits in Q4.

Speaker #3: Our first full quarter with both Simplera and Instinct available. Since launching both sensors in Q2, U.S. CGM attachment has increased by mid-single-digit percentage points.

Speaker #3: Pre-orders for MiniMed Flex started this week. And we will begin shipping in a couple of weeks. I have been out in the field extensively, at key accounts, meeting with clinical teams, the reps, the patients, and the excitement is real.

Speaker #3: More of our pump users are using our sensors. And that's the full stack working when the sensor and pump are designed together powered by our SmartGuard algorithm, patients use them together.

Speaker #3: Flex is sleek and discreet and half the size of 780, with a 300-unit reservoir and app-based control. Now, combined with two great sensor options, this is the product people have been waiting for.

Speaker #3: And that creates a durable, recurring revenue stream that compounds over time. Our new sensor offerings are also bringing new patients to MiniMed. U.S. NPS was up year over year and up mid-single digits sequentially, a leading indicator of where U.S. revenue is heading.

Speaker #3: To that end, let me turn to the pipeline because this is where I believe the long-term investment thesis for MiniMed becomes visible. We are in the middle of a complete portfolio transformation.

Speaker #3: And here's why I'm confident about fiscal '27. Sensors were the setup—MiniMed Go and Flex are the follow-through. MiniMed Go launched two weeks ago; providers can prescribe directly from their EMR to MiniMed Pharmacy, and the product is shipped directly to patients.

Speaker #3: Within 18 months, a person living with diabetes will be able to choose MiniMed at every stage of their journey, smart pen, patch, or durable pump, or using the smart for the same closed-loop algorithm the same app, all within the same ecosystem, one company, every option.

Speaker #3: Pre-orders for MiniMed Flex started this week, and we will begin shipping in a couple of weeks. I have been out in the field extensively at key accounts, meeting with clinical teams.

Speaker #3: I want to be clear about what this moment represents. This is the third generation of MiniMed. The first was defined by our pioneering insulin pump therapy.

Speaker #3: And the excitement is real. Flex is sleek and discreet and half the size of 780, with a 300-unit reservoir and app-based control. Now, combined with two great sensor options, this is the product people have been waiting for.

Speaker #3: The second, by our 780G and smart guard, the most clinically validated AIG system in the world. The third era, the one we're building right now, gives patients the products they have been asking for.

Speaker #3: A durable pump that is half the size of 780 with a 300-unit reservoir, a patch pump with a 300-unit reservoir, and up to seven days of wear.

Speaker #3: Within 18 months, a person living with diabetes will be able to choose MiniMed at every stage of their journey: SmartPen, patch, or durable pump, all using the same closed-loop algorithm, the same app, all within the same ecosystem—one company, every option.

Speaker #3: A smart MDI system for the millions of people not ready for pump therapy. And a fully closed-loop algorithm that ties it all together. We believe this will completely reshape how the market thinks about MiniMed.

Speaker #3: Let me go deeper on the products that will define our next chapter. First, with MiniMed Flex, our ECP or early commercial pilot is underway.

Speaker #3: I want to be clear about what this moment represents. This is the third generation of MiniMed. The first was defined by our pioneering insulin pump therapy.

Speaker #3: We started taking pre-orders this week. And expect to launch Flex with integration to Simplera Sync Sensor later this month, followed by Flex integrated with Instinct in our second quarter.

Speaker #3: The second, by our 780G and SmartGuard, the most clinically validated AIG system in the world. The third era, the one we're building right now, gives patients the products they have been asking for.

Speaker #3: Similar to 780G, we are working on making Flex available through pharmacy. And we will update you as the year progresses. In international markets, we submitted Flex for clearance this last quarter, and we are expecting CE mark approval by the end of the calendar year.

Speaker #3: A durable pump that is half the size of 780 with a 300-unit reservoir, a patch pump with a 300-unit reservoir, and up to seven days of wear.

Speaker #3: With MiniMed Go, our smart MDI solution, launched in Europe in late February, and began its US launch last week. With MiniMed fit, our differentiated patch pump, we expect to submit to FDA by this fall, with commercial launch next calendar year.

Speaker #3: Let me go deeper on the products that will define our next chapter. First, with MiniMed Flex, our ECP—or early commercial pilot—is underway.

Speaker #3: We've also made great progress on manufacturing. And expect to have an initial capacity to serve 20,000 patients at launch. And we are scaling production capacity quickly.

Speaker #3: We started taking pre-orders this week and expect to launch Flex with integration to the Simplera Sync Sensor later this month, followed by Flex integrated with Instinct in our second quarter.

Speaker #3: And Rivera, our fully closed-loop algorithm for type 1 and type 2, showed impressive feasibility data at ATTD in March. On average, users met ADA guidelines for time in range with no user input whatsoever.

Speaker #3: Similar to the 780G, we are working on making Flex available through pharmacy, and we will update you as the year progresses. In international markets, we submitted Flex for clearance this last quarter, and we are expecting CE Mark approval by the end of the calendar year.

Speaker #3: Meaning no need to bolus. Or make meal announcements. We started enrollment in our US Pivotal for Vivera in February. We have already completed around 50% of the targeted enrollment and remain on track for launch next calendar year.

Speaker #3: With that, alternative to Chad to walk through the Q4 financials and fiscal 27 guidance.

Speaker #3: With commercial launch next calendar year. We've also made great progress on manufacturing. And expect to have an initial capacity to serve 20,000 patients at launch.

Speaker #1: Thanks, Q. Q4 revenue was $837 million, up 8.7% organic, driven by $12.2% growth in international markets. US growth was 1.5%, driven by the short-term dynamics that Q covered earlier.

Speaker #3: And we are scaling production capacity quickly. And Vivera, our fully closed-loop algorithm for type 1 and type 2, showed impressive feasibility data at ATTD in March.

Speaker #1: Our global growth was driven by a recurring revenue streams CGM and consumables, which make up 80% of our business. CGM grew mid-teens and consumables grew mid-single digits.

Speaker #3: On average, users met ADA guidelines for time in range with no user input whatsoever—meaning no need to bolus or make meal announcements. We started enrollment in our U.S. pivotal for Vivera in February.

Speaker #1: For fiscal 26, we had record revenue crossing the $3 billion threshold for the first time with an overall 8% organic growth. Growth was led by international, where we grew 11.2%.

Speaker #3: We have already completed around 50% of the targeted enrollment. And remain on track for launch next calendar year. With that, I'll turn it to Chad to walk through the Q4 financials and fiscal '27 guidance.

Speaker #1: By product line, our recurring revenue streams from CGM and consumables drove our fiscal year growth the same dynamic that we saw in Q4. CGM grew low double digits, in fiscal 26, as we launched new sensors around the globe.

Speaker #1: Q4 adjusted standalone EBITDA was $154 million, growing 32%, two times reported revenue growth. As a percent of revenue, adjusted standalone EBITDA was 18.4%, an increase of 220 basis points versus Q4 fiscal 25.

Speaker #1: Our global growth was driven by a recurring revenue streams CGM and consumables, which make up 80% of our business. CGM grew mid-teens and consumables grew mid-single digits.

Speaker #1: With $380 basis points of improvement coming from SG&A and R&D. Walking through the Q4 P&L, our adjusted standalone gross margin was 58.6%, an increase of 40 basis points versus a fourth-quarter last year.

Speaker #1: For fiscal '26, we had record revenue crossing the $3 billion threshold for the first time with an overall 8% organic growth. Growth was led by international, where we grew 11.2%.

Speaker #1: This was driven by continued manufacturing efficiencies and an FX benefit offset by higher Simplera mix which currently has lower margin than that of our legacy and Instinct sensors.

Speaker #1: By product line, our recurring revenue streams from CGM and consumables drove our fiscal year growth the same dynamic that we saw in Q4. CGM grew low double digits.

Speaker #1: In fiscal '26, as we launch new sensors around the globe. Q4 adjusted standalone EBITDA was $154 million, growing 32%, two times reported revenue growth.

Speaker #1: Q4 adjusted standalone SG&A was 33.9% of revenue, an improvement of 140 basis points versus Q4 fiscal 25. As part of our MiniMed operating system, we have a robust productivity project funnel across the business.

Speaker #1: As a percent of revenue, adjusted standalone EBITDA was 18.4%, an increase of 220 basis points versus Q4 fiscal '25. With $380 basis points of improvement coming from SG&A and R&D.

Speaker #1: We executed on these transformation projects to drive efficiencies. Q4 adjusted standalone R&D was 11.6% of revenue. R&D spend was down $4 million from last year, driven by lower clinical and operations R&D spend as our new products launch.

Speaker #1: Walking through the Q4 P&L, our adjusted standalone gross margin was 58.6%, an increase of 40 basis points versus the fourth quarter last year. This was driven by continued manufacturing efficiencies and an FX benefit, offset by higher Simplera mix, which currently has lower margin than that of our legacy and Instinct sensors.

Speaker #1: For full-year fiscal 26, adjusted standalone EBITDA was $482 million, growing 27%, or two times the rate of reported revenue growth. As a percent of revenue, adjusted standalone EBITDA was 15.6%, an increase of 160 basis points year over year, with $350 basis points of improvement coming from SG&A and R&D.

Speaker #1: Q4 adjusted standalone SG&A was 33.9% of revenue, an improvement of 140 basis points versus Q4 fiscal '25. As part of our MiniMed operating system, we have a robust productivity project funnel across the business.

Speaker #1: Fiscal 26 adjusted standalone gross margin was 59.2%, a 50 basis point increase versus fiscal 25, driven by better conversion, material productivity, and FX offset by the mix impact from higher Simplera volume.

Speaker #1: Fiscal 26 adjusted standalone SG&A was 35.2% of revenue, an improvement of 200 basis points versus last year. Similar to what I just discussed in Q4, the transformation projects delivered efficiencies and significant operating leverage throughout the fiscal 26.

Speaker #1: For full-year fiscal '26, adjusted standalone EBITDA was $482 million, growing 27%, or two times the rate of reported revenue growth. As a percent of revenue, adjusted standalone EBITDA was 15.6%, an increase of 160 basis points year over year, with $350 basis points of improvement coming from SG&A and R&D.

Speaker #1: In fiscal 26 adjusted standalone R&D was 13.6% of revenue, a decrease of 150 basis points versus the prior year. Driven by lower clinical and operations R&D spend as our new products launch.

Speaker #1: Fiscal '26 adjusted standalone gross margin was 59.2%, a 50 basis point increase versus fiscal '25, driven by better conversion, material productivity, and FX, offset by the mix impact from higher Simplera volume.

Speaker #1: That said, R&D and dollar basis increased by $11 million, year over year. From a cash and debt perspective, we started at the time of the IPO with $350 million of cash in the balance sheet.

Speaker #1: And no long-term debt. We ended the quarter with $298 million in cash and no long-term debt. This cash balance was ahead of our expectations as we focus on delivering good cash management.

Speaker #1: Fiscal '26 adjusted standalone SG&A was 35.2% of revenue, an improvement of 200 basis points versus last year. Similar to what I just discussed in Q4, the transformation projects delivered efficiencies and significant operating leverage throughout fiscal '26.

Speaker #1: Turning to our key business metrics, we intend to provide you with new pumps sold or NPS and global CGM attachment rates on a quarterly basis.

Speaker #1: These metrics track the unique growth opportunities at MiniMed, first through the sale of pumps and then the associated recurring CGM revenue. Q4 NPS was 42,000.

Speaker #1: In fiscal '26 adjusted standalone R&D was 13.6% of revenue, a decrease of 150 basis points versus the prior year. Driven by lower clinical and operations R&D spend, as our new products launch.

Speaker #1: Down low single digits year over year. Given the two dynamics that Q discussed. The US flex early clearance this quarter and the international Simplera launch last year.

Speaker #1: That said, R&D on a dollar basis increased by $11 million year over year. From a cash and debt perspective, we started at the time of the IPO with $350 million of cash on the balance sheet.

Speaker #1: On a sequential basis, Q4 NPS was up 740 basis points from Q3. We had robust sequential NPS increases in both US and international as our new CGM sensor launches drove increased sales of our MiniMed 780G pump systems.

Speaker #1: Q4 CGM attachment rate was 68%, up 100 basis points from Q3, and an increase of 500 basis points year over year. We expect our CGM attachment rate to continue to trend upwards as nearly every new MiniMed pump user is using our CGMs to get the benefit of our smart guard automation.

Speaker #1: Turning to our key business metrics, we intend to provide you with new pumps sold, or NPS, and global CGM attachment rates on a quarterly basis.

Speaker #1: These metrics track the unique growth opportunities at MiniMed, first through the sale of pumps and then the associated recurring CGM revenue. Our NPS was 42,000, down low single digits year over year.

Speaker #1: Turning to the full fiscal year, we sold 145,000 new pumps in fiscal 26. Stable versus a prior year, but grew every quarter sequentially including 26% higher NPS in the second half of the fiscal year than the first half.

Speaker #1: Given the two dynamics that Q discussed, the US flex early clearance this quarter and the international Simplera launch last year. On a sequential basis, Q4 NPS was up 740 basis points from Q3.

Speaker #1: We had robust quarterly NPS increases in both US and international as our launches drove increased sales of our MiniMed 780G pump systems. Q4 CGM attachment rate was 68%, up 100 basis points from Q3.

Speaker #1: The fiscal 26 average CGM attachment rate was 66%, an increase of 700 basis points versus a prior year. Like NPS, our CGM attachment rate increased sequentially every quarter in fiscal 26.

Speaker #1: Regarding our global pump users, we intend to update you on this metric on an annual basis. We ended fiscal 26 with 659,000 global pump users and increase of 4% year over year.

Speaker #1: And an increase of 500 basis points year over year. We expect our CGM attachment rate to continue to trend upwards as nearly every new MiniMed pump user is using our CGMs to get the benefit of our smart guard automation.

Speaker #1: This was driven by increasing NPS as we went through the year and reducing attrition. Let me talk about our readiness as a standalone company.

Speaker #1: Turning to the full fiscal year, we sold 145,000 new pumps in fiscal '26. Stable versus a prior year, but grew every quarter sequentially including 26% higher NPS in the second half of the fiscal year than the first half.

Speaker #1: In particular, how the TSA exits are progressing. We have approximately 160 TSAs with Medtronic. And we have dedicated teams working with Medtronic and we are confident that we will exit these TSAs in the timelines that we've established, most of which will occur in calendar 2027.

Speaker #1: The fiscal '26 average CGM attachment rate was 66%, an increase of 700 basis points versus a prior year. Like NPS, our CGM attachment rate increased sequentially every quarter in fiscal '26.

Speaker #1: Next, let's cover our outlook for the full year of fiscal 2027. We expect organic revenue growth of approximately 10%, which includes 1 to 1.5% from the extra week.

Speaker #1: This is consistent with management's expectations at the time of our IPO. There are three large product launches that give us confidence in this growth outlook.

Speaker #1: Regarding our global pump users, we intend to update you on this metric on an annual basis. We ended fiscal '26 with 659,000 global pump users and increase of 4% year over year.

Speaker #1: MiniMed Flex in the US, MiniMed Go expanding globally, and the continued global rollout of the Instinct and Simplera sensors. For Q1, including the extra week benefit, we expect organic growth to be well above Q4.

Speaker #1: This was driven by increasing NPS as we went through the year and reducing attrition. Let me talk about our readiness as a standalone company.

Speaker #1: Excluding the extra week, we expect Q1 growth to be roughly similar to Q4. In the US, we expect faster growth than Q4 and over the course of the fiscal 27, US growth will be accelerating given the pull forward of the Flex launch.

Speaker #1: For fiscal 27, we expect adjusted EBITDA margin of approximately 16% with the improvement driven by OPEX leverage. In line with management's expectations at the time of IPO.

Speaker #1: Next, let's cover our outlook for the full year of fiscal 2027. We expect organic growth of approximately 10%, which includes 1 to 1.5% from the extra week.

Speaker #1: We plan to leverage our global sales and marketing infrastructure to continue driving strong growth and margin expansion. We also expect to benefit from our strong product pipeline, including common platform components and software, to deliver R&D leverage.

Speaker #1: This is consistent with management expectations at the time of our IPO. There are three product launches that give us confidence in this growth outlook.

Speaker #1: MiniMed Flex in the US, MiniMed expanding globally, and the continued global rollout of the Instinct and Simplera centers. For Q1, including the extra week benefit, we expect organic growth to be well above Q4.

Speaker #1: And we also expect continued efficiencies from our support functions. As we look at our quarterly EBITDA cadence, typically the margin starts below the annual amount and grows as we grow throughout the year.

Speaker #1: Excluding the extra week, we expect growth to be roughly similar to Q4. In the US, we expect faster growth than Q4, but over the course of the fiscal '27, US growth will accelerate given the pull forward of the Flex launch.

Speaker #1: You saw this in fiscal 26 and we'd expect a similar cadence in fiscal 27. For Q1 fiscal 27, we'd expect adjusted EBITDA margin to be a couple hundred basis points greater than the adjusted standalone EBITDA margin in Q1 of fiscal 26.

Speaker #1: And to grow throughout the year to reach our 16% annual outlook. While we don't provide specific guidance on our KPIs, we do expect that as we roll out our new pump systems and sensors, we will continue to see growth in both NPS and CGM attachment rates.

Speaker #1: For fiscal '27, we expect adjusted EBITDA margin of approximately 16% with the improvement driven by OPEX leverage. In line with management's expectations at the time of IPO.

Speaker #1: For more details on our guidance, see the guidance slide in our earnings presentations. Q, back to you.

Speaker #2: Thanks, Chad. We're excited by the growth opportunities on the top and bottom line that Chad just laid out. We are already entering the year with meaningful momentum as a reminder we share with you several pieces of new news today.

Speaker #2: MiniMed Go launched in the US last week. Instinct will launch in Europe later this month. We started taking pre-orders for MiniMed Flex in the US this week and will be shipping later this month.

Speaker #1: You saw this in fiscal '27. We'd expect a similar cadence in fiscal '27. For Q1 fiscal '27, we'd expect adjusted EBITDA margin to be a couple hundred basis points greater than the adjusted standalone EBITDA margin in Q1 of fiscal '26.

Speaker #2: And this morning, we announced an extension of our partnership with Abbott to commercialize a dual glucose ketone sensor designed to integrate with our MiniMed smart dosing systems.

Speaker #1: And to grow throughout the year to reach our 16% annual outlook. While we don't provide specific guidance on our KPIs, we do expect to roll out our new pump systems and sensors.

Speaker #2: And our pipeline with Fit and Vivera reflects a roadmap that spans near-term execution and long-term AID leadership. The AID market remains dramatically underpenetrated. The Type 2 opportunity is still in its early innings.

Speaker #1: We will continue to see growth in NPS and CGM attachment rates. For more details on our guidance, see the guidance on our earnings presentations.

Speaker #2: And the millions of patients still on MDI represent a runway that will define this category for years to come. We are building to serve all of them.

Speaker #1: Q, back to you.

Speaker #2: Thanks, Chad. We're excited about growth opportunities on the top, bottom line, and Chad just laid out. We are already entering the year with meaningful momentum.

Speaker #2: And as we do, we expect this will create value for patients, their caregivers, and physicians. And this will translate to value for our shareholders.

Speaker #2: As a reminder, we share with you several pieces of new news today. MiniMed launched in the US last week. Instinct will launch in Europe later this month.

Speaker #2: I do want to say something about our team. This past year, we separated from a parent company. Executed an IPO and kept launching products and delivering for patients all at the same time.

Speaker #2: We started taking pre-orders for MiniMed Flex in the US this week and will be shipping later this month. And this morning, we announced an extension of our partnership with Abbott to commercialize a dual glucose-ketone sensor designed to integrate with our MiniMed smart diabetes systems.

Speaker #2: Everyone executed multiple complex initiatives. And I'd like to thank our team for their commitment and dedication. We know where we're headed. We'll keep you updated as we get there.

Speaker #2: Right, let's go to Q&A. Operator?

Speaker #3: Thank you, ladies and gentlemen. If you have a question or a comment at this time, please press star 11 on your telephone. If your question has been answered and you wish to move yourself from the queue, please press star 11 again.

Speaker #2: Our pipeline with Fit and Vivera reflects a roadmap that spans near-term execution and long-term AID leadership. The AID market remains dramatically underpenetrated. The Type 2 opportunity is still in the early innings and the manufacturers are still on MDI to represent a runway that will define this category for years to come.

Speaker #3: We'll pause for a moment while we compile our Q&A roster. Our first question comes from Travis Steed with Bank of America Securities. Your line is open.

Speaker #4: Hey, congrats on your first earnings call as a public company. I maybe first wanted to ask about pump ship came in above three, the new start metrics were really strong.

Speaker #2: We are building to serve all of them. And as we do, we expect this will create value for patients, their caregivers, and physicians. And this will translate to value for our shareholders.

Speaker #4: But the pump revenues were light versus what we'd modeled. And I know you talked about maybe some delays ahead of Flex. But trying to understand how that impacts the model and just trying to understand some of the dynamics there on the pump shipments versus the pump revenue.

Speaker #2: Everyone executed multiple complex initiatives. And I'd like to thank our team for their commitment and dedication. We know where we're headed. We'll keep you updated as we get there.

Speaker #4: And delays around Flex.

Speaker #2: Oh, thanks, Travis. You said it right. It's really about the timing issue of Flex. I mean, customers make rational decisions. And some chose to wait for the new system.

Speaker #2: Right, let's go to Q&A. Operator?

Speaker #2: We obviously have a lot of patients that like buttons and they don't want to have a phone. Controlling their pump. And so we saw that.

Speaker #3: Thank you, ladies and gentlemen. I have a question regarding this time. Please press star 11 on your telephone. If your question has been answered and you wish to move from the queue, please press star 11 again.

Speaker #2: It was really great to see that both the year-over-year in the US and sequential growth. And so if you look at the second half versus the first half, it's quite dramatic in terms of that leading indicator.

Speaker #3: We'll pause for a moment while we compile our Q&A roster. Our first question comes from Travis D with Bank of America. Your line is.

Speaker #2: I think in terms of revenue. It was very consistent with what we expected. I think where US was under our initial expectations is actually driven by, I would say, a weaker first half from pumps.

Speaker #4: Hey, great job on your earnings call as a public company. I just wanted to ask about the pump shipment that came in last week. The new start metrics were really strong.

Speaker #2: And that obviously translates to consumable and CGM revenue in the second half. So think of it that way. But it really is a timing issue.

Speaker #4: But the light versus what we modeled about delays ahead of Flex. But trying to understand how that impacts the model and just trying to understand some of the dynamics there on the pump shipments versus pump revenue.

Speaker #2: We just started taking pre-orders yesterday for Flex. And it's extremely robust demand that we see already.

Speaker #4: Okay. Thank you.

Speaker #3: And next question. Thanks, Travis. Next question, please, Kevin.

Speaker #4: And delays around Flex.

Speaker #5: For one moment. Our next question comes from David Roman with Goldman Sachs.

Speaker #2: Thanks, Travis. You said it right—it's really about timing issues. I think customers make rational decisions. Some choose to wait for new systems. We obviously have patients that like buttons and have a phone.

Speaker #6: Thank you. Good morning, everybody. I wanted just to start with maybe connecting some of the dots here across your exit rate performance. Your guidance and the commentary queue that you made around the product momentum expected in FY27.

Speaker #2: Controlling their pump. And so we saw that it was really great to see both the year-over-year in the U.S. and growth. And so if you look at the second half of the first half, it's quite dramatic in terms of that leading indicator.

Speaker #6: So as I look at the guidance of about 8.5 to 9% excluding the extra week, and then the 8% you did in 26, but also the higher exit rate, as you look at the operational drivers in 27, there do look to be a number of factors that get better in this fiscal year around product launch momentum, instinct integration, etc.

Speaker #2: I think in terms of consistent with what we expected, I think where the US was under our initial expectations is by, I would say, a weaker first half from pump.

Speaker #6: So maybe you could just help us think through your guidance basis for FY27, how you're thinking about puts and takes, maybe is there a degree of conservatism in here?

Speaker #2: And that obviously translates to consumable and CGM revenue in the second half. So that way, but it really is a timing issue. We just started taking pre-orders yesterday.

Speaker #6: And how we kind of connect the pieces between the underlying fundamental drivers and how you're setting the outlook here?

Speaker #2: Flex, and it's extremely robust demand that we see already.

Speaker #4: Hey, David. This is Chad. I'll start and then you might add a little bit of color. But the first thing that I would like to say is that what we have set forward, we think, is a plan that we're confident we can achieve.

Speaker #4: Okay. Thank you.

Speaker #3: Thanks, Travis. Next question, please, Kevin.

Speaker #5: One moment.

Speaker #4: Right? When you look at the way we thought about the business before all of these we'll call it pull-ins of product lines, these things were in our forecast just later in the year.

Speaker #3: Next question comes from David Roman with Goldman Sachs.

Speaker #6: Thank you. Good morning, everybody. I wanted to start with maybe some of the dots here across your exit performance. A commentary cue that you product momentum by 27.

Speaker #4: And so we're getting to them sooner. And what we're looking forward to is actually showing execution and the results. And then reevaluating at that point in time.

Speaker #4: But we think that the plan right now is a very solid plan that we're confident that we can hit is the way that we think about it.

Speaker #4: So the product launches, and if you think even about Flex, we always had that in there. And so as Q talked about it being a timing, there's always a gap between announcing and that patient customer waiting period.

Speaker #6: So as I look at the guidance eight and a half to 9%, excluding the extra week, 26, but also the higher exit rate. As you look at the drivers, I do look to factor better in this fiscal year.

Speaker #4: It has just shifted forward a little bit. So we think fundamentally, the model is still intact from that perspective. And the numbers are good.

Speaker #4: We feel actually super excited about the opportunities given how much we've brought these product launches in for the year and achieving our numbers.

Speaker #6: If launch momentum integration, etc. So maybe if you could just help us think through your guidance basis for 27, how you're thinking about takes, maybe a degree of conservatism in here, and how we kind of connect the pieces between the underlying fundamental drivers and how you're doing the outlook here.

Speaker #2: And David, I think, look, you've covered the space. I think you're going to see that not just for us, but the industry. When something new comes in, it typically takes a couple of quarters.

Speaker #2: Patients just can't just get an appointment the next day with their endo. They're going to have to go in and see them. We've got to drive awareness.

Speaker #2: So we're very encouraged with what we're seeing. We've done we've touched over 8,000 providers as part of the Flex launch. We've done more than almost 300 events.

Speaker #5: Hey, David. This is Chad. I'll start and then you might add a little bit of color. But the thing that I would like to say is that what we have set forth, we think the plan that we're confident we can achieve, right?

Speaker #5: When you look at the way about the business before all of these pull-ins of product lines, these were in our forecast—just later in the year.

Speaker #2: So we're seeing a lot of demand. But people have to get appointments. They've got to go see their endo. And so typically, we see this play out in two quarters.

Speaker #2: Remember that in Q1, we're going to have Flex with Simplera for, call it, five to six weeks. Q2 will be the first quarter where we'll have both sensors integrated.

Speaker #5: And so we're getting to them sooner. What we're looking forward to is actually showing execution and the results, and then reevaluating at that point in time.

Speaker #5: But we think that the plan right now is a very solid plan that we're confident that we can hit, the way that we think about it.

Speaker #2: And so that's kind of the buildup. And what we're trying to signal is the US, we very confident that this progression will you'll see it go through the year.

Speaker #5: So the product launches, and if you think even about Flex, we always had that in there. And so as Q talked about it being a timing, there's always a gap between announcing and that patient customer waiting period.

Speaker #2: And obviously, as things emerge, we'll update you. But that's kind of how we see the year unfold.

Speaker #5: It has just shifted forward a little bit. So we think fundamentally the model is still intact from that perspective. And the numbers are good.

Speaker #4: Okay. Thanks, David. We'll go to the next question, please, Kevin.

Speaker #5: We feel actually super excited about the opportunities given how much we've brought these product launches in for the year and achieving our numbers.

Speaker #5: One moment. Our next question comes from Joanne Wench with City. Your line is open.

Speaker #2: And David, I think—look, you've covered the space. I think you're going to see that for us and for the industry. When you come, it typically takes a couple of quarters. Patients can't just come in the next day with their end.

Speaker #7: Good morning. And congratulations also on your first quarter out. So I want to just sort of pause on the sensor dynamic. And I'm curious how we should or think about the different between Simplera instinct and now the dual analyte sensor joining the mix.

Speaker #2: So they're going to have to go in and see them. We've got to drive awareness. So we're very encouraged with what we're seeing. We've done we've touched over 8,000 providers as part of the Flex launch.

Speaker #7: And how are you thinking about positioning the three of them and do you have a preference financially? Thank you.

Speaker #2: We've done more than almost 300 events. We're seeing a lot of demand, but people have to get appointments. They've got to go see their endo.

Speaker #2: So let me start maybe, Chad can answer the financial question. I think what we're trying to do, Joanne, is really offer choice. Between Simplera and instinct.

Speaker #2: And so, typically, we see this play out in quarters. Remember that in Q1, Flex was some five to six weeks. It will be the census integrated.

Speaker #2: So let's talk about that because those are in market today. I think we're excited about the dual ketone glucose sensor. But that's not yet commercially available.

Speaker #2: It's been approved on CE market. We're still waiting for FDA approval. And the reason for the choice is with Simplera being a seven-day stay, it really lines up with our seven-day infusion set.

Speaker #2: And so that's the buildup and trying to signal the US, we very confident that this progression will get through the year and things as things will update you.

Speaker #2: And so there are a lot of people who like to have a weekly routine. And so we offer that. There's some other I would say relatively minor differences between the two sensors.

Speaker #2: And of course, with instinct, being a 15-day sensor, that helps people who like longer wear. And the simplicity of that. So and we're seeing that in the numbers.

Speaker #2: But that's kind of how we see the year unfold.

Speaker #3: Okay. Thanks, David. We'll go to the next question, please, Kevin.

Speaker #5: One moment. Our next question comes from Joanne Lynch, which was open.

Speaker #2: People like Simplera. They like instinct. They're both easily insert. But it fits into people's lifestyle in a different way. And it's very consistent with our objective which is to offer a portfolio that really meets the patient where they are, wherever they are on the journey, where that's with a smart MDI system, with miniMed Go, or a durable pump system with Flex and then in the future a patch option.

Speaker #7: Good morning. And congratulations on your the sensor dynamic. And I'm curious how we should the difference between Simplera, Instinct, and now the Duolite joint mix.

Speaker #4: And from a financial preference standpoint, Joanne, from the sensors that are available today because as Q said on the ketone sensor, that's a ways out before we'll have more details on the financials there.

Speaker #4: Between instinct and Simplera and legacy, legacy sensor and instinct, we've said are comparable from a revenue and a margin standpoint. And Simplera has a lower gross margin.

Speaker #4: But it doesn't mean that we have a preference towards one versus the other because as we continue to scale up Simplera, and in 2027, we're going to have significantly more than we had in prior years, which for us is great because it gives unconstrained demand internationally where Simplera has been selling quite a bit.

Speaker #7: And how are you positioning the three of them, and do you have a preference financially? Thank you.

Speaker #4: And we need it for our products. That's what we look at it. So we've priced in. We've modeled in the increase of Simplera for fiscal '27.

Speaker #2: So let me start. Just about that because those are excited about the dual kit.

Speaker #4: And for the expanded usage as well of instinct. But we don't say we have a financial preference. We let the patients choose. And we've got modeled in what we think are appropriate margins for the different products.

Speaker #7: Thank you.

Speaker #4: Okay. Thank you, Joanne. Next question, please, Kevin.

Speaker #5: One moment. Our next question comes from Steve Lichtman with William Blair. Your line is open.

Speaker #8: Thank you. Good morning, everyone. Just wondering again on the FY '27 outlook. As you look at the 10% organic growth, any additional color you can provide on, say, US versus OUS?

Speaker #8: And around that 10%, segment growth, which should be higher in your mind versus maybe a little lower? Thanks.

Speaker #4: Hi, Steve. Chad, thanks for the question. As we don't give specific guidance on regions or by products, to give a little color, the way that I would really think about it is OUS will continue to have strong growth throughout the year.

Speaker #4: You can look at historical execution and we don't see changes to that. And the US, as I referenced before, you're going to see a continued acceleration, right?

Speaker #4: So the metrics that we look at is we look at those NPS and the growth that we've seen in the second half of the NPS as a leading indicator of what we're going to see for the growth going throughout the year.

Speaker #4: So the US, we've seen that acceleration in the second half. For the NPS, how much it grew. In the second half versus the first.

Speaker #4: And so it'll be progression. Q1, obviously, will be much more than you saw in Q4. But recognize that Flex has four to six weeks of selling in Q1.

Speaker #4: So then as we get into Q2, we've got a full quarter of Flex with Simplera. And then we start to introduce instinct. So you get even more benefit from that.

Speaker #4: And then Q3, you've got a full quarter of both of those sensors with Flex. So that's why we see that progressive growth in the US throughout the year is the way I would think about it.

Speaker #4: Okay. Thanks, Steve. Next question, please, Kevin.

Speaker #5: One moment. Our next question comes from Peter Chickering with Deutsche Bank. Your line is open.

Speaker #9: Hey, guys. I think you're taking the question. Yeah. Just wanted for a follow-up. Just from a modeling perspective, to help sort of quantify the comments around the fourth-quarter softness in the US pumps due to Fit launching for the timing of that launch and the US pump revenue cadence.

Speaker #9: Any quantification of how we should be modeling the US pump cadence launch throughout '27 as you think about the launch coming up soon? Thanks.

Speaker #4: Well, the way that we don't really talk specifically on a product-by-product line level, but what you can think about is there's a couple hundred basis points, right, in the US from this Flex, the timing shift.

Speaker #4: Some of it is people said, "Hey, we're going to wait for the unit." Some said, "Hey, we'll go on 7AG and we'll use your Flex forward program." So it's hard to quantify the effect amount of that.

Speaker #4: But what we can see and what you can measure is, as I said before, the NPS growth and the cadence momentum there, right? And so that's kind of what we're looking at from a how do we see this slowdown in the US for the fourth quarter and then accelerating?

Speaker #4: And as Q said, what we're seeing already, we've just started this week taking early orders. So we're excited about where we see that growth coming in the US.

Speaker #4: The way that we always like to talk about the business as a full portfolio, though, because we have the US, and as we balance the US growing with Flex, we have consistent performance in OUS as well.

Speaker #4: And we're expecting some strong performance before we expected. So we're going to continue to see the OUS as well. So I like to think of our business as a whole complete.

Speaker #4: The US and OUS. OUS driving two-thirds of the top line. And we've got new products coming in both.

Speaker #2: And I think just in terms of the ramp and maybe color on kind of the commercial activities, our early commercial pilot's underway. We have several hundred patients already wearing the device.

Speaker #2: You can check out the social media. It's extremely easy for them to use. We are looking forward to launching big-time at ADA. And as I mentioned in earlier today, we will be shipping Flex with Simplera later this month.

Speaker #2: It just takes time. And then we'll add instinct. Then you've got Medicare. And then, of course, we are also we submitted Flex with the eMark.

Speaker #2: And we expect that at the end of the year. So it's all part of the as the year goes by, this is going to be strengthening.

Speaker #2: And we already see it in the as we said, the key indicator, which is the new pump sold leading indicator.

Speaker #9: Great. Thanks so much.

Speaker #4: Thank you, Peter. Next question, please, Kevin.

Speaker #5: One moment. Our next question comes from Daniel Markowitz with Evercore ISI. Your line is open.

Speaker #10: Hey, guys. Congrats on the first quarter out the gate. And it's great to hear all the timing updates that all sounds great. So ahead of the OUS instincts launch, I wanted to ask if there are any early learnings to share from instinct US in terms of maybe how big a percent of new CGM starts instinct is demanding and if you're seeing any trends in the Simplera installed base, if patients have any appetite to switch or anything else to call out.

Speaker #10: Thanks for taking the question.

Speaker #2: Yeah. Thanks for the question. I think what we're seeing is, obviously, most of the switching happening from our legacy sensor, Guardian 3 and Guardian 4, to Simplera and to instinct.

Speaker #2: And I think as we mentioned in the prior quarters, the new sensors not only have driven up CGM attachment because of the power of our algorithm, but increasingly bringing new patients to Minimed.

Speaker #2: We have a lot of new starts coming from MDI. We are also seeing competitive switches. And, of course, patients coming out of warranty. And that's why you see the second half pump shipments growth be so substantially higher than the first half.

Speaker #2: And so that's the pattern we continue to see. As I said last quarter was the first full quarter of having both sensors in the market.

Speaker #2: We are also increase Simplera capacity with tripled it. In Q4. And so we're starting to see really unconstrained demand coming through in international as well.

Speaker #2: And that's also driving additional pump growth. Because as you know, we have a very large install base. And so when you have something new like sensors, you can't just give it.

Speaker #2: We would grow faster. We just gave it to all new patients. But, of course, we have to take care of our install base. And so we effectively were on a bit of an allocation strategy, which I think muted a bit of the new pump sold metric in Europe just really managing the install base, trying to keep everybody happy.

Speaker #2: We have a lot of new starts coming from MDI. We are also seeing competitive switches and, of course, patients coming out of warranty. That’s why you see the second half pump shipments’ growth be so substantially higher than the first half.

Speaker #2: But now that instincts coming in really a couple of weeks in Europe, unconstrained Simplera we're expecting that, again, the critical metric of new pumps sold to be to continue to grow.

Speaker #2: And so that's the pattern we continue to see. As I said last quarter was the first full quarter of having both sensors in the market.

Speaker #2: We are also increasing Simplera capacity we tripled it. In Q4, and so we're starting to see really unconstrained demand coming through in international as well, and that's also driving additional pump growth.

Speaker #4: Thanks, Daniel. I think we've got time for two more questions here before the bottom of the hour. So we'll take the next question, please, Kevin.

Speaker #5: One moment. Our next question comes from Larry Beagleson with Wells Fargo. Your line is open.

Speaker #2: Because as you know, we have a very large install base, and so when you have something new like sensors, you can't just give it we would grow faster if we just gave it to all new patients.

Speaker #10: Good morning. Thanks for taking the question. Q, congrats on the IPO here. Q, just what needs to be done on Minimed fit before the fall 2026 FDA submission?

Speaker #2: But of course, we have to take care of our install base, and so we effectively were on a bit of an allocation strategy, which I think muted a bit of the new pump sold metric in Europe just really managing the install base trying to keep everybody happy.

Speaker #10: And on CGM, it's 50% of revenue carrying the growth. Attachment rate looks like it was up, I think, about 500 basis points year over year in Q4.

Speaker #2: But now that Instincts is coming in really a couple of weeks in Europe, unconstrained Simplera we're expecting that, again, the critical metric of new pumps sold to be to continue to grow.

Speaker #10: Is that kind of the way we should think about next year? And where can that go over time? Thank you.

Speaker #2: So to answer your fit question, we are tracking extremely well. And our goal is not just to submit and get an approval. Our goal is to have a successful launch next year with our patch AID system.

Speaker #1: Thanks, Daniel. I think we've got time for two more questions here before the bottom of the hour, so we'll take the next question, please, Kevin.

Speaker #2: So, obviously, we're working on the submission itself. That is on track. We're also working on manufacturing. I think that we mentioned at least 20,000 patients at launch.

Speaker #3: One moment.

Speaker #1: Our next question comes from Larry Beagleson with Wells Fargo. Your line is open.

Speaker #4: Good morning. Thanks for taking the question. Q, congrats on the IPO here. Q, just what needs to be done on MiniMed Fit before the fall 2026 FDA submission?

Speaker #2: And we are already expanding capacity. To take on more patients. Next year. So we feel very good about it. We're one of the few companies telling you what our initial production capacity is going to be.

Speaker #4: And on CGM, it's 50% of revenue carrying the growth. Attachment rate looks like it was up, I think, about 500 basis points year over year in Q4.

Speaker #2: So it is all about gearing to launch and getting fit through the pharmacy channel. With respect to the attachment rate, I think the way we think about it is over the last few years, we've demonstrated that the second-generation algorithm, 780 with SmartGuard, and now Flex with SmartGuard is extremely powerful with the five-minute autocorrection, the mill detection technology, really driving outcomes.

Speaker #4: Is that kind of the way we should think about next year and where can that go over time? Thank you.

Speaker #2: So to answer your Fit question, we are tracking extremely well. And our goal is not just to submit and get an approval. Our goal is to have a successful launch next year with our patch AID system.

Speaker #2: With less effort. And so really what we see is every order for our AID systems come with our CGM consumable. And we see that pattern continuing.

Speaker #2: So obviously, we're working on the submission itself. That is on track. We're also working on manufacturing. I think that we mentioned at least 20,000 patients at launch, and we are already expanding capacity.

Operator: Good day, and thank you for standing by. Welcome to the MiniMed Q4 and fiscal year 2026 financial results conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star one one on your telephone. You will hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised today's conference is being recorded. I would now like to hand the conference over to your speaker today, Ryan Weispfenning, Head of MiniMed Investor Relations. Please go ahead.

Speaker #2: Which is why you see this very steady growth of CGM attachment. It's an important metric with respect to how it drives revenue. So we're not concerned about that at all.

Speaker #2: To take on more patients. Next year. So we feel very good about it. We're one of the few companies telling you what our initial production capacity is going to be.

Speaker #2: What really we are focused on now is growing that new pump sold metric. With these new launches. And so as we get that metric up, the CGM attachment will continue.

Speaker #2: So you want to add anything?

Speaker #4: Yeah. No, I would just say, Larry, your math is good. And the continuous rate of improvement is a good assumption. That we've seen historically.

Ryan Weispfenning: Hello, everyone. Thanks for joining us today for our fiscal 2026 Q4 earnings webcast. I'm Ryan Weispfenning, Vice President and Head of MiniMed Investor Relations. Joining me today are Que Dallara, Chief Executive Officer, and Chad Spooner, Chief Financial Officer. Today's program will last no longer than 45 minutes so that we may complete the call before the market opens. Earlier this morning, we issued a press release discussing our results and containing several financial schedules. We also posted an earnings presentation to our website that provides additional details on our performance. Both can be accessed on our website at investors.minimed.com. During today's program, many of the statements we make may be considered forward-looking statements, which are subject to risks and uncertainties, and actual results may differ materially from those projected in any forward-looking statement.

Speaker #4: And how high can we go as we continue to sell the new AID systems? Everyone is going to be on our CGMs. So you can see that in the future getting into the 90 percentile range, right?

Speaker #2: With less effort. And so really, what we see is every order for our AID systems comes with our CGM consumable, and we see that pattern continuing.

Speaker #4: Globally. With steady progression in the US and internationally.

Speaker #10: Thank you.

Speaker #4: Thanks, Larry. We've got time for one more question, Kevin. Let's go to our last question, please.

Speaker #2: Which is why you see this very steady growth of CGM attachment. It's an important metric with respect to how it drives revenue. So we're not concerned about that at all.

Speaker #5: Sure. One moment. Our next question comes from Maritha. What would BTIG, your line is open?

Speaker #2: What really we are focused on now is growing that new pump sold metric. With these new launches. And so as we get that metric up, the CGM attachment will continue.

Speaker #11: Hey, great. Thanks for squeezing me in. And congrats on everything you've done to get to this point. Wanted to ask about Minimed Go here.

Speaker #11: How are you thinking about the initial uptake trajectory given this is effectively a new patient segment for Minimed with these MDI users? And likely requires a different commercial strategy.

Speaker #2: So you want to add anything?

Ryan Weispfenning: Please take a moment to review the cautionary statements regarding forward-looking statements, including in our earnings press release and the presentation. Additional information concerning factors that could cause our actual results to differ is contained in the filings we make with the SEC, and we do not undertake to update any forward-looking statement or any of the information contained in this presentation. In this presentation, we reference organic revenue growth, a non-GAAP financial measure. A reconciliation to the most directly comparable GAAP financial measure is included in today's earnings press release. With our organic revenue growth and adjusted EBITDA margin guidance, we do not provide reconciliations to comparable GAAP measures because certain items in these forward-looking non-GAAP measures cannot be predicted without unreasonable effort. We operated as part of Medtronic until our IPO in early March.

Speaker #1: Yeah, no, I would just say, Larry, your math is good, and the continuous rate of improvement is a good assumption. That we've seen historically.

Speaker #11: So any details on the trajectory as well as what you're doing to establish formulary access and reimbursement coverage? Thanks.

Speaker #1: And how high can we go as we continue to sell the new AID systems? Everyone is going to be on our CGMs. So you can see that in the future getting into the 90 percentile range, right?

Speaker #4: So with respect to the US, Minimed Go we launched actually just last week. It's gone incredibly well. But as you said, Marie, this is a new category.

Speaker #1: Globally. With steady progression in the US and internationally.

Speaker #4: We have started a dedicated primary care sales team. We think this will help reach patients early in the funnel. But it does require market development.

Speaker #4: Thank you.

Speaker #1: Thanks, Larry. We've got time for one more question, Kevin. Let's go to our last question, please.

Speaker #3: Sure, one moment.

Speaker #4: From a reimbursement standpoint, we actually are pretty well positioned. We have great reimbursement for our CGMs. In Penn, as you know, has been in market for a while.

Speaker #1: Our next question comes from Maritha. What would BTIG, your line is open.

Speaker #5: Hey, great. Thanks for squeezing me in, and congrats on everything you've done to get to this point. Wanted to ask about MiniMed Go here.

Speaker #4: This really this Minimed Go system now brings all of that together. So from an access standpoint, we feel pretty good about where we stand commercially.

Ryan Weispfenning: Our GAAP financial statements were therefore prepared on a carve-out basis and include certain historical cost allocations from Medtronic for centralized support functions. We refer to certain financial information for MiniMed on a standalone basis. This replaces those Medtronic historical cost allocations with the expected run rate cost structure for standalone MiniMed. This information also eliminates the impact of certain incremental non-recurring costs. These non-GAAP standalone financial measures are included to provide consistency and comparability while evaluating operational performance on a run rate standalone basis for reporting periods after MiniMed's fiscal year 2026. A reconciliation of these standalone non-GAAP financial measures to their most directly comparable GAAP financial measures is included in today's earnings presentation. With that, over to you, Q.

Speaker #5: How are you thinking about the initial uptake trajectory? Given this is effectively a new patient segment for MiniMed with these MDI users, and likely requires a different commercial strategy.

Speaker #4: On it. But it does require market education. And that's why we have this dedicated primary care team out in force now. Really driving up demand and we're already seeing orders come through.

Speaker #5: So, any details on the trajectory, as well as what you're doing to establish formulary access and reimbursement coverage? Thanks.

Speaker #2: So with respect to the US, MiniMed Go we launched actually just last week. It's gone incredibly well, but as you said, Marie, this is a new category.

Speaker #4: A lot of excitement on this therapy option. Okay. Thank you, Marie. And for those analysts that we didn't get to this morning, we're happy to connect with you later today.

Speaker #2: We have started a dedicated primary care sales team. We think this will help reach patients early in the funnel, but it does require market development.

Speaker #4: I want to thank everyone who joined us today. We appreciate your interest and support in Minimed. We look forward to connecting with you on our Q1 earnings call.

Speaker #2: From a reimbursement standpoint, we actually are pretty well positioned. We have great reimbursement for our CGMs. In Penn, as you know, has been in market for a while.

Speaker #4: If not sooner, as part of our outreach here during the quarter. So with that, have a great rest of your day.

Que Dallara: Thank you, Ryan. Good morning, everyone. It's good to be speaking with you today on our first earnings call as a standalone, publicly traded MiniMed. Before we go into the details, let me start with who we are and why we exist. MiniMed exists to give people living with insulin-dependent diabetes more time in range, more freedom from the daily grind of managing their condition, and more time to simply live their lives. We do that today for 659,000 pump users around the world through the most complete, most clinically validated automated insulin delivery platform available anywhere. That has been our North Star for more than 40 years. We went public in early March. The week after, we received CE mark for the Instinct sensor made by Abbott with the MiniMed 780G a year ahead of schedule.

Speaker #2: This really this MiniMed Go system now brings all of that together. So from an access standpoint, we feel pretty good about where we stand commercially.

Speaker #2: On it. And but it does require market education. And that's why we have this dedicated primary care team out in force now. Really driving up demand and we're already seeing orders come through.

Speaker #2: A lot of excitement on this therapy option.

Speaker #1: Okay. Thank you, Marie. And for those analysts that we didn't get to this morning, we're happy to connect with you later today. I want to thank everyone who joined us today.

Speaker #1: We appreciate your interest and support in MiniMed. We look forward to connecting with you on our Q1 earnings call. If not sooner, as part of our outreach here during the quarter.

Que Dallara: The week after that, we received FDA clearance for MiniMed Flex, two quarters ahead of expectations. For fiscal 2026, we had record revenue crossing the $3 billion threshold for the first time, with another year of high single-digit growth. These milestones reflect the acute focus we've had on driving pipeline execution over the last few years. In Q4, we finished fiscal 2026 strong, and we're carrying that momentum into fiscal 2027. Our Q4 revenue growth was driven by continued strength in international markets and sequential pump adoption momentum in the US. New sensors were a meaningful driver throughout the entire H2. Let me address US performance directly. Growth of 1.5% in Q4 was below our initial expectations, and I want to be clear about what drove it. FDA clearance of MiniMed Flex came six months early.

Speaker #1: So with that, have a great rest of your day.

Que Dallara: This is clearly positive news for us and a significant milestone, it did create a short-term dynamic with some customers who were close to a pump decision, chose to wait for the new system. That's a timing issue, not a demand issue. MiniMed Flex is the most substantial hardware and software pump update in a decade, we're excited with what we're hearing in the market about Flex's launch later this month. In addition to Flex, we pulled forward two more launches. The MiniMed 780G with Instinct starts rolling out internationally later this month, giving our international pump users more sensor choice. MiniMed Go, our smart MDI system for the 15 million people worldwide on multiple daily injections, launched in Europe earlier this year and in the US just this week. It is these three products that underpin our confidence in our fiscal 2027 growth.

Que Dallara: Behind these three, the pipeline is just as exciting. MiniMed Fit, our next generation patch pump, and Vivera, our fully closed loop algorithm for type 1 and type 2, both on track for clearance next year. Now looking at Q4 in more detail, starting with international. As I mentioned earlier, our international business delivered a strong quarter, growing 12% organic, an acceleration from Q3. Increased Simplera availability drove a high single-digit sequential increase in new pump sales or NPS and 100 basis point sequential increase in CGM attachments. On a year-over-year basis, NPS were down mid-single digits, primarily due to a tough comparison in Q4 of last year. That period benefited from the initial launch of Simplera, which drove a meaningful acceleration in NPS and set a high baseline. We delivered strong international growth even before the Instinct sensor entered these markets.

Que Dallara: The EU Instinct launch opens up the MiniMed 780G to more than 4.5 million Abbott sensor users on insulin intensive therapy, a population we haven't been able to reach until now. Turning to the US. With the context on overall US performance that I covered earlier, let me walk you through two components, CGM and pumps, because the underlying dynamics in each tell an important story about where this business is heading. US CGM revenue grew high single digits in Q4, our first full quarter with both Simplera and Instinct available. Since launching both sensors in Q2, US CGM attachment has increased by mid-single digit percentage points. More of our pump users are using our sensors, and that's the full stack working.

Que Dallara: When the sensor and pump are designed together, powered by our SmartGuard algorithm, patients use them together, and that creates a durable, recurring revenue stream that compounds over time. Our new sensor offerings are also bringing new patients to MiniMed. US NPS were up year over year and up mid-single digits sequentially, a leading indicator of where US revenue is heading. Here's why I'm confident about fiscal 2027. Sensors were the setup. MiniMed Go and Flex are the follow-through. MiniMed Go launched two weeks ago. Providers can prescribe directly from their EMR to MiniMed Pharmacy, and the product is shipped directly to patients. Pre-orders for MiniMed Flex started this week, and we will begin shipping in a couple of weeks.

Que Dallara: I have been out in the field extensively at key accounts, meeting with clinical teams, the reps, the patients, and the excitement is real. Flex is sleek and discreet, and half the size of the 780, with a 300-unit reservoir and app-based control. Now combined with two great sensor options, this is the product people have been waiting for. To that end, let me turn to the pipeline, because this is where I believe the long-term investment thesis for MiniMed becomes visible. We are in the middle of a complete portfolio transformation. Within 18 months, a person living with diabetes will be able to choose MiniMed at every stage of their journey: InPen, patch, or durable pump, all using SmartGuard with the same closed-loop algorithm, the same app, all within the same ecosystem. One company, every option. I want to be clear about what this moment represents.

Que Dallara: I have been out in the field extensively at key accounts, meeting with clinical teams, the reps, the patients, and the excitement is real. Flex is sleek and discreet and half the size of 780, with a 300-unit reservoir and app-based control. Now combined with two great sensor options, this is the product people have been waiting for. To that end, let me turn to the pipeline, because this is where I believe the long-term investment thesis for MiniMed becomes visible. We are in the middle of a complete portfolio transformation. Within 18 months, a person living with diabetes will be able to choose MiniMed at every stage of their journey, InPen, patch, or durable pump, all using the SmartGuard with the same closed-loop algorithm, the same app, all within the same ecosystem. One company, every option. I want to be clear about what this moment represents.

Que Dallara: This is the third generation of MiniMed. The first was defined by our pioneering insulin pump therapy, the second by our 780G and SmartGuard, the most clinically validated AID system in the world. The third era, the one we're building right now, gives patients the products they have been asking for, a durable pump that is half the size of 780 with a 300-unit reservoir, a patch pump with a 300-unit reservoir and up to seven days of wear, a smart MDI system for the millions of people not ready for pump therapy, and a fully closed-loop algorithm that ties it all together. We believe this will completely reshape how the market thinks about MiniMed. Let me go deeper on the products that will define our next chapter. First, with MiniMed Flex, our ECP or early commercial pilot is underway.

Que Dallara: We started taking pre-orders this week and expect to launch Flex with integration to Simplera Sync sensor later this month, followed by Flex integrated with Instinct in our Q2. Similar to 780G, we are working on making Flex available through pharmacy. We will update you as the year progresses. In international markets, we submitted Flex for clearance this last quarter. We are expecting CE mark approval by the end of the calendar year. With MiniMed Go, our smart MDI solution, launched in Europe in late February and began its US launch last week. With MiniMed Fit, our differentiated patch pump, we expect to submit to FDA by this fall, with commercial launch next calendar year. We've also made great progress on manufacturing and expect to have an initial capacity to serve 20,000 patients at launch. We are scaling production capacity quickly.

Que Dallara: Vivera, our fully closed-loop algorithm for type 1 and type 2, showed impressive feasibility data at ATTD in March. On average, users met ADA guidelines for time and range with no user input whatsoever, meaning no need to bolus or make meal announcements. We started enrollment in our US pivotal for Vivera in February. We have already completed around 50% of the targeted enrollment and remain on track for launch next calendar year. With that, I'll turn it to Chad to walk through the Q4 financials and fiscal 2027 guidance.

Chad Spooner: Thanks, Que. Q4 revenue was $837 million, up 8.7% organic, driven by 12.2% growth in international markets. US growth was 1.5%, driven by the short-term dynamics that Que covered earlier. Our global growth was driven by recurring revenue streams, CGM, and consumables, which make up 80% of our business. CGM grew mid-teens and consumables grew mid-single digits. For fiscal 2026, we had record revenue, crossing the $3 billion threshold for the first time with an overall 8% organic growth. Growth was led by international, where we grew 11.2%. By product line, our recurring revenue streams from CGM and consumables drove our fiscal year growth, the same dynamic that we saw in Q4. CGM grew low double digits in fiscal 2026 as we launched new sensors around the globe. Q4 adjusted standalone EBITDA was $154 million, growing 32%, two times reported revenue growth.

Chad Spooner: As a percent of revenue, adjusted standalone EBITDA was 18.4%, an increase of 220 basis points versus Q4 fiscal 2025, with 380 basis points of improvement coming from SG&A and R&D. Walking through the Q4 P&L, our adjusted standalone gross margin was 58.6%, an increase of 40 basis points versus the Q4 last year. This was driven by continued manufacturing efficiencies and an FX benefit offset by higher Simplera mix, which currently has lower margin than that of our legacy and Instinct sensors. Q4 adjusted standalone SG&A was 33.9% of revenue, an improvement of 140 basis points versus Q4 fiscal 2025. As part of our MiniMed Operating System, we have a robust productivity project funnel across the business. We executed on these transformation projects to drive efficiencies. Q4 adjusted standalone R&D was 11.6% of revenue.

Chad Spooner: R&D spend was down $4 million from last year, driven by lower clinical and operations R&D spend as our new products launch. For full year fiscal 2026, adjusted standalone EBITDA was $482 million, growing 27% or 2 times the rate of reported revenue growth. As a percent of revenue, adjusted standalone EBITDA was 15.6%, an increase of 160 basis points year over year, with 350 basis points of improvement coming from SG&A and R&D. Fiscal 2026 adjusted standalone gross margin was 59.2%, a 50 basis point increase versus fiscal 2025, driven by better conversion, material productivity, and FX, offset by the mix impact from higher Simplera volume. Fiscal 2026 adjusted standalone SG&A was 35.2% of revenue, an improvement of 200 basis points versus last year. Similar to what I just discussed in Q4, the transformation projects delivered efficiencies and significant operating leverage throughout the fiscal 2026.

Chad Spooner: In fiscal 2026, adjusted standalone R&D was 13.6% of revenue, a decrease of 150 basis points versus the prior year, driven by lower clinical and operations R&D spend as our new products launch. That said, R&D on a dollar basis increased by $11 million year over year. From a cash and debt perspective, we started at the time of IPO, $350 million of cash on the balance sheet and no long-term debt. We ended the quarter with $298 million in cash and no long-term debt. This cash balance was ahead of our expectations as we focus on delivering good capital management. Turning to our key business metrics, we intend to provide you with new pumps sold, or NPS, and global CGM attachment rates on a quarterly basis. These metrics track the unique growth opportunities at MiniMed, first through the sale of pumps, and then the associated recurring CGM revenue.

Chad Spooner: Q4 NPS was 42,000, down low single digits year over year. Given the two dynamics that Que discussed, the US Flex early clearance this quarter and the international Simplera launch last year. On a sequential basis, Q4 NPS was up 740 basis points from Q3. We had robust sequential NPS increases in both US and international as our new CGM sensor launches drove increased sales of our MiniMed 780G pump systems. Q4 CGM attachment rate was 68%, up 100 basis points from Q3, and an increase of 500 basis points year over year. We expect our CGM attachment rate to continue to trend upwards as nearly every new MiniMed pump user is using our CGMs to get the benefit of our SmartGuard automation.

Chad Spooner: Turning to the full fiscal year, we sold 145,000 new pumps in fiscal 2026, stable versus the prior year, grew every quarter sequentially, including 26% higher NPS in the H2 of the fiscal year than the H1. The fiscal 2026 average CGM attachment rate was 66%, an increase of 700 basis points versus the prior year. Like NPS, our CGM attachment rate increased sequentially every quarter in fiscal 2026. Regarding our global pump users, we intend to update you on this metric on an annual basis. We ended fiscal 2026 with 659,000 global pump users, an increase of 4% year over year. This was driven by increasing NPS as we went through the year and reducing attrition. Let me talk about our readiness as a standalone company, in particular, how the TSA exits are progressing.

Chad Spooner: We have approximately 160 TSAs with Medtronic, and we have dedicated teams working with Medtronic, and we are confident that we will exit these TSAs in the timelines that we've established, most of which will occur in calendar 2027. Next, let's cover our outlook for the full year of fiscal 2027. We expect organic revenue growth of approximately 6%, which includes 1% to 1.5% from the extra week. This is consistent with management's expectations at the time of our IPO. There are three product launches that give us confidence in this growth outlook. MiniMed Flex in the US, MiniMed Go expanding globally, and the continued global rollout of the Instinct and Simplera sensors. For Q1, including the extra week benefit, we expect organic growth to be well above Q4. Excluding the extra week, we expect Q1 growth to be roughly similar to Q4.

Chad Spooner: In the US, we expect faster growth in Q4, and over the course of fiscal 2027, US growth will be accelerating given the pull forward of the Flex launch. For fiscal 2027, we expect adjusted EBITDA margin of approximately 16%, with the improvement driven by OpEx leverage, in line with management's expectations at the time of IPO. We plan to leverage our global sales and marketing infrastructure to continue driving strong growth and margin expansion. We also expect to benefit from our strong product pipeline, including common platform components and software, delivering further leverage. We also expect continued efficiencies from our support functions. As we look at our quarterly EBITDA cadence, typically, the margin starts below the annual amount and grows as we grow throughout the year. You saw this in fiscal 2026, and we'd expect a similar cadence in fiscal 2027.

Chad Spooner: For Q1 fiscal 2027, we'd expect adjusted EBITDA margin to be a couple hundred basis points greater than the adjusted standalone EBITDA margin in Q1 of fiscal 2026, and to grow throughout the year to reach our 16% annual outlook. While we don't provide specific guidance on our KPIs, we do expect that as we roll out our new pump systems and sensors, we will continue to see growth in NPS and CGM adoption rates. For more details on our guidance, see the guide slide in our earnings presentations. Que, back to you.

Que Dallara: Thanks, Chad. We're excited about growth opportunities on the top and bottom line that Chad just laid out. We are already entering the year with meaningful momentum. As a reminder, we share with you several pieces of new news today. MiniMed launched in the US last week. Instinct will launch in Europe later this month. We started taking preorders for MiniMed Flex in the US this week, and we'll be shipping later this month. This morning, we announced an extension of our partnership with Abbott to commercialize a dual glucose-ketone sensor designed to integrate with our MiniMed smart dosing systems. Our pipeline with Fit and Vivera reflects a roadmap that spans near-term execution and long-term AID leadership. The AID market remains dramatically under-penetrated.

Que Dallara: The type 2 opportunity is still in early innings, the millions of patients still on MDI represent a runway that will define this category for years to come. We are building to serve all of them. As we do, we expect this will create value for patients, their caregivers, and physicians, and this will translate to value for our shareholders. I do want to say something about our team. This past year, we separated from a parent company, executed an IPO, and kept launching products and delivering for patients all at the same time. Everyone executed multiple complex initiatives, I'd like to thank our team for their commitment and dedication. We know where we're headed. We'll keep you updated as we get there. Right. Let's go to Q&A. Operator?

Operator: Thank you, ladies and gentlemen. If you have a question or a comment at this time, please press star one-one on your telephone. If your question has been answered or you wish to remove yourself from the queue, please press star one-one again. We'll pause for a moment while we compile our Q&A roster. Our first question comes from Travis Steed with Bank of America Securities. Your line is open.

Operator: Thank you, ladies and gentlemen. If you have a question or a comment at this time, please press star one one on your telephone. If your question has been answered or you wish to remove yourself from the queue, please press star one one again. We'll pause for a moment while we compile our Q&A roster. Our first question comes from Travis Steed with Bank of America Securities. Your line is open.

Travis Steed: Hey, congrats on your first earnings call as a public company. Maybe first just wanted to ask about the pump ship came in above three. The new start metrics were really strong, but the pumps were light versus what we had modeled about maybe some plays ahead of MiniMed Flex. Trying to understand how that impacts the model and just trying to understand some of the dynamics there on the pump shipments versus the pump revenue and delays around MiniMed Flex.

Que Dallara: Thanks, Travis. You said it right. It's really about timing issue of Flex. Customers make rational decisions, and some chose to wait for the new system. We obviously have patients that like buttons and don't want to have a phone controlling their pump. We saw that it was really great to see both the year-over-year US and sequential growth. If you look at the H2, it's quite dramatic in terms of that leading indicator. I think in terms of revenue, it was consistent with what we expected. I think where US was under our initial expectations is driven by, I would say, a weaker H1 from pumps, and that obviously translates to consumable CGM revenue in the H2. Think of it that way, but it really is a timing issue.

Que Dallara: We just started taking preorders yesterday for Flex, and it's extremely robust demand that we see already.

Travis Steed: Okay. Thank you.

Chad Spooner: Okay, next question. Thanks, Travis. Next question, please go ahead.

Chad Spooner: Okay, next question. Thanks, Travis. Next question, please go.

Operator: One moment. Our next question comes from David Roman with Goldman Sachs.

David Roman: Thank you. Good morning, everybody. I wanted just to start with maybe connecting some of the dots here across your exit rate performance, guidance, and the commentary, Que.

David Roman (Goldman Sach: Thank you. Good morning, everybody. I wanted just to start with maybe connecting some of the dots here across your exit rate performance, guidance, and the commentary, Que. The product momentum.

Chad Spooner: FY 2027.

David Roman: As I look at the guide, about 8.5% to 9% excluding the extra week, and then the 8% you did in 2026, but also the higher exit rate. As you look at the opposite drivers in 2027, there do look factors get better in this fiscal year around product launch momentum, Instinct integration, et cetera. Maybe you could just help us think through your guidance basis for FY 2027, how you're thinking about puts and takes, maybe is there a degree of conservatism in here and how we connect the pieces between the underlying fundamental drivers and how you're reading the outlook here?

David Roman (Goldman Sach: As I look at the guide, about 8.5% to 9% excluding the extra week, and then the 8% you did in 2026, but also the higher exit rate. As you look at the opposite drivers in 2027, there do look factors get better in this fiscal year around product launch momentum, Instinct integration, et cetera. Maybe you could just help us think through your guidance basis for FY 2027, how you're thinking about puts and takes, maybe is there a degree of conservatism in here and how we connect the pieces between the underlying fundamental drivers and how you're reading the outlook here?

Chad Spooner: Hey, David, this is Chad. I'll start and then Que might add a little bit of color. The thing that I would like to say is that what we have set forth here, we think the plan that we're confident we can achieve. Right? When you look at the way we thought about the business before all of these. We call it pullings of product lines. These were in our forecast just later in the year, and so we're getting to them sooner. What we're looking forward to is actually showing execution and the results, and then reevaluating at that point in time. We think that the plan right now is a very solid plan that we're confident that we can hit, is the way that we think about it. The product launches, and if you think even about Flex, we always had that in there.

Chad Spooner: As Q talked about, it's a timing issue—there's always a gap between announcing and that patient customer waiting period. It has just shifted forward a little bit. We think, fundamentally, the model's still intact from that perspective, and the numbers are good. We feel actually super excited about the opportunities, given how much we've brought these product launches in for the year and achieving our numbers.

Chad Spooner: As Q talked about it being a timing, there's always a gap between announcing and that patient customer waiting period, it has just shifted forward a little bit. We think fundamentally, the model's still intact from that perspective, and the numbers are good. We feel actually super excited about the opportunities given how much we've brought these product launches in for the year and achieving our numbers.

Que Dallara: David, I think, look, you've covered the space. I think you're going to see that not just for us, but the industry, when new comes in, typically takes a couple quarters. Patients can't just get in the next day with their endo. They're going to have to go in and see them. We've got to drive awareness. We're very encouraged with what we're seeing. We've touched over 8,000 providers as part of the Flex launch. We've done more than almost 300 events. We're seeing a lot of demand, but people have to get appointments. They've got to go see their endo, typically we see this play out in quarters. Remember that in Q1 we're going to have Flex with Simplera, or call it Flex, five or six will be the first quarter where we'll have both sensors integrated.

Que Dallara: That's the build-up and trying to signal the US. We are very confident that this progression you'll see it go through the year, and obviously as things emerge, we'll update you. That's how we see the year unfold.

Chad Spooner: Okay, thanks. We'll go to the next question please, Kevin.

Operator: One moment. Our next question comes from Joanne Wuensch with Citi. Your line's open.

Joanne Wuensch: Good morning, congratulations on the sensor dynamic, and I'm curious how we should the difference between Simplera, Instinct, and now the dual glucose-ketone joining the mix. How you think about positioning the three of them, and do you have a preference financially? Thank you.

Que Dallara: Let me start. What we do, Joanne—that's about that, because those are in market today. I think we're excited about the dual glucose-ketone.

Que Dallara: Let me start. What we do, Joanne. That's about that because those are in market today. I think we're excited about the dual glucose-ketone.

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