Q2 2026 Tandem Diabetes Care Inc Earnings Call

August 6, 2026

Speaker #1: If your question has been answered and you'd like to remove yourself from the queue, simply press *11 again. As a reminder, today's program is being recorded.

Speaker #1: And now I'd like to introduce your host for today's program, Susan Morrison, Chief Administration Officer and Investor Relations. Please go ahead.

Speaker #2: Hello, and welcome to TANDEM's 2026 Q2 earnings call. Today's discussion will include forward-looking statements. These statements reflect management's expectations about future events, our product pipeline, development timelines, and financial performance and operating plans, and speak only as of today's date.

Susan Morrison: Hello. Welcome to Tandem's 2026 Q2 earnings call. Today's discussion will include forward-looking statements. These statements reflect management's expectations about future events, our product pipeline, development timelines, and financial performance and operating plans, speak only as of today's date. There are risks and uncertainties that could cause actual results to differ materially from those anticipated or projected in our forward-looking statements, which are described in our press release issued earlier today and under the risk factors portion of our most recent annual report on Form 10-K and quarterly report on Form 10-Q. Today's discussion will also include references to both GAAP and non-GAAP financial measures.

Speaker #2: There are risks and uncertainties that could cause actual results to differ materially from those anticipated or projected in our forward-looking statements, which are described in our press release issued earlier today and under the risk factors portion of our most recent annual report on Form 10-K, and quarterly report on Form 10-Q.

Speaker #2: Today's discussion will also include references to both GAAP and non-GAAP financial measures. Please refer to our earnings release issued earlier today and available on the Investor Center portion of our website for a reconciliation of non-GAAP measures to their most directly comparable GAAP financial measure and other information regarding our use of non-GAAP financial measures.

Susan Morrison: Please refer to our earnings release issued earlier today and available on the Investor Center portion of our website for a reconciliation of non-GAAP measures to their most directly comparable GAAP financial measure and other information regarding our use of non-GAAP financial measures. John Sheridan, Tandem's President and CEO, and Leigh Vosseller, Executive Vice President and Chief Financial Officer, will be providing prepared remarks on today's call, after which the operator will open up the call for questions. Thank you for limiting yourself to one question before rejoining the queue. Now I'll turn the call over to John.

Speaker #2: John Sheridan, Tandem's President and CEO, and Leigh Vosseller, Executive Vice President and Chief Financial Officer, will be providing prepared remarks on today's call, after which the operator will open up the call for questions.

Speaker #2: Thank you for limiting yourself to one question before rejoining the queue. I'll now turn the call over to John.

Speaker #3: Thanks, Susan. We appreciate everyone joining the call today. The Q2 marked an important step forward for TANDEM. We are executing it against our strategic priorities while demonstrating operational momentum, improving our financial performance, and providing broader access to our technology.

John Sheridan: Thanks, Susan. We appreciate everyone joining the call today. The Q2 marked an important step forward for Tandem. We are executing it against our strategic priorities while demonstrating operational momentum, improving our financial performance, and providing broader access to our technology. This progress was evident in our results, with worldwide pump shipments growing more than 10% year-over-year and sequentially. In the US, a highlight of our performance was improvements in new pump start trends, led by a standout number of people transitioning from multiple daily injection. Internationally, we saw an acceleration of adoption in the countries where we launched direct efforts earlier this year. Additional Q2 highlights included significant margin improvement, including the second highest gross margin of any quarter in our company's history.

Speaker #3: results, with worldwide pump shipments growing more than 10% year over year, and sequentially. In the U.S., a highlight of our performance was improvements in new pump start trends, led by a standout number of people transitioning from multiple daily injection.

Speaker #3: Internationally, we saw an acceleration of adoption in the countries where we launched direct efforts earlier this year. Additional Q2 highlights included significant margin improvement, including the second highest gross margin of any quarter in our company's history.

Speaker #3: We also advanced the global launch of new technologies, while preparing to expand our portfolio with the FDA submission for Tandem Mobi's tubeless feature. We'll discuss each of these accomplishments in greater detail on the call today.

John Sheridan: We also advanced the global launch of new technologies while preparing to expand our portfolio with the FDA submission for Tandem Mobi's tubeless feature. We'll discuss each of these accomplishments in greater detail on the call today. I'll begin my remarks with an update on the three strategic priorities we laid out at the beginning of the year, which included reshaping our business model, modernizing our commercial organization, and delivering new technology. In March, we launched pay-as-you-go reimbursement in the pharmacy channel. This transition was designed to create clear benefits for customers, prescribers, and payers with better economics to Tandem. During the Q2, our focus was on early implementation. This included updating the end-to-end processes for how our technology is prescribed, how we support customers, and how our orders are processed.

Speaker #3: I'll begin my remarks with an update on the three strategic priorities we laid out at the beginning of the year, which include reshaping our business model, modernizing our commercial organization, and delivering new technology.

Speaker #3: In March, we launched pay-as-you-go reimbursement in the pharmacy channel. This transition was designed to create clear benefits for customers, prescribers, and payers. With better economics to TANDEM.

Speaker #3: During Q2, our focus was on early implementation. This included updating the end-to-end processes for how our technology is prescribed, how we support customers, and how our orders are processed.

Speaker #3: We are encouraged with the momentum behind this transition and beginning to see efficiencies that are positively contributing to our results. We now have approximately 45% formulary coverage, which is already approaching the high end of our range for the goals this year.

John Sheridan: We are encouraged with the momentum behind this transition and beginning to see efficiencies that are positively contributing to our results. We now have approximately 45% formulary coverage, which is already approaching the high end of our range for the goals this year. Access is a critical first step to driving PAYG adoption, and teams are now focused on driving plan utilization. In our first full quarter offering PAYG, US sales through the pharmacy channel increased to 10%. This early traction reinforces our confidence in the pharmacy strategy and the broad-reaching benefits it can deliver. The second key initiative I'll touch on is modernizing our commercial organization to improve productivity and support profitable growth. The work has been underway for the past year, and we are pleased with the progress.

Speaker #3: Access is a critical first step to driving pay-go adoption, and teams are now focused on driving plan utilization. In our first full quarter offering pay-go, U.S.

Speaker #3: sales through the pharmacy channel increased to 10%. This early traction reinforces our confidence in the pharmacy strategy and the broad-reaching benefits it can deliver.

Speaker #3: The second key initiative I’ll touch on is modernizing our commercial organization to improve productivity and support profitable growth. The work has been underway for the past year, and we are pleased with the progress.

Speaker #3: Key accomplishments include the deployment of a new CRM system, to improve Salesforce efficiency and effectiveness, provide deeper insights into our customer base, and support our global channel strategy.

John Sheridan: Key accomplishments include the deployment of a new CRM system to improve sales force efficiency and effectiveness, provide deeper insights into our customer base, and support our global channel strategy. This includes enabling our US pharmacy transition and supporting direct commercial launches internationally. Our international direct launches began earlier this year in the UK, Switzerland, and Austria, with plans for France to follow in the Q4. This strategy better positions Tandem to serve our customers and healthcare providers in these markets while strengthening our financial profile. The final key initiative I'll discuss is our delivery of new technology, starting with the expansion of our global portfolio. We continue to reinforce our competitive advantage with Control-IQ+, which now has the broadest indication of any AID system in the US, including pregnancy.

Speaker #3: This includes enabling our U.S. pharmacy transition and supporting direct commercial launches internationally. Our international direct launches began earlier this year in the U.K., Switzerland, and Austria, with plans for France to follow in the Q4.

Speaker #3: This strategy better positions TANDEM to serve our customers in healthcare providers in these markets, while strengthening our financial profile. The final key initiative I'll discuss is our delivery of new technology, starting with the expansion of our global portfolio.

Speaker #3: We continue to reinforce our competitive IQ+, which now has the broadest indication of any AID system in the U.S., including pregnancy. Similarly, we strengthen our advantage internationally, as we receive CE mark in Q2 for pregnancy, as well as adults living with type 2.

John Sheridan: Similarly, we strengthened our advantage internationally as we received CE mark in Q2 for pregnancy, as well as adults living with type 2. Great excitement is also building internationally as we are in the early stages of introducing Tandem Mobi outside the United States. We plan to bring our tiny pump with big outcomes to more than 10 countries by year-end, including some of our largest markets. In addition, our team has been working to broaden CGM compatibility. For Abbott's FreeStyle Libre 3 Plus, T-Slim is now compatible in seven countries outside the United States. We plan to expand to additional markets throughout the year. Dexcom's G7 15-day sensor is now compatible with Mobi and T-Slim in the US, and international markets are soon to follow. These launches are consistent with our efforts to ensure the broadest possible coverage across devices and markets.

Speaker #3: building internationally, as we are in the early stages of introducing TANDEM Mobi outside the United States. We plan to bring our tiny pump with big outcomes to more than 10 countries by year-end, including some of our largest markets.

Speaker #3: In addition, our team has been working to broaden CGM compatibility. For Abbott's FreeStyle Libre 3 Plus, t:slim is now compatible in seven countries outside the United States, and we plan to expand to additional markets throughout the year.

Speaker #3: Dexcom's G7 15-day sensor is now compatible with Mobi and t:slim, which is generating great excitement in the U.S. International markets are soon to follow.

Speaker #3: These launches are consistent with our efforts to ensure the broadest possible coverage across devices and markets. Looking ahead, the team continues to drive long-term innovation across our pumps, infusion technology, software ecosystem, and AID algorithms.

John Sheridan: Looking ahead, the team continues to drive long-term innovation across our pumps, infusion technology, software ecosystem, and AID algorithms. Starting with pumps, we reached an important R&D milestone in Q2 with a 510(k) submission for Mobi Tubeless. This new infusion site option is designed to transform the existing Mobi pump into a tubeless AID system, giving users the unique flexibility to choose between tubed and tubeless wear on a single hardware platform by simply changing the supplies they use. Compatible with the existing Mobi pump subject to FDA clearance, this will be Tandem's first tubeless pump offering and the world's first with extended wear technology, an important differentiator that enhances our position in this dynamic market segment. Pre-commercial preparations are actively underway. Our goal remains to begin a scaled launch this year, after which time we will begin training our field and HCP community on the novel tubeless Mobi feature.

Speaker #3: Starting with pumps, we reached an important R&D milestone in Q2 with a 510(k) submission for Mobi Tubeless. This new infusion site option is designed to transform the existing Mobi pump into a tubeless AID system, giving users the unique flexibility to choose between tube and tubeless wear on a single hardware platform by simply changing the supplies they use.

Speaker #3: Compatible with the existing Mobi pump, subject to FDA clearance, this will be TANDEM's first tubeless pump offering and the world's first with extended wear technology, an important differentiator that enhances our position in this dynamic market segment.

Speaker #3: Pre-commercial preparations are actively underway. Our goal remains to begin a scaled, launched this year, after which time will begin training our field and HCP community on the novel tubeless Mobi feature.

Speaker #3: We will also begin updating our payer contracts and completing operational activities in support of the launch. Infusion technology is another key area of focus, as we work to expand tube and tubeless options improve comfort, extend wear time, and simplify the user experience.

John Sheridan: We will also begin updating our payer contracts and completing operational activities in support of the launch. Infusion technology is another key area of focus as we work to expand tubed and tubeless options, improve comfort, extend wear time, and simplify the user experience. To support this, we are launching AutoSoft Plus, a new infusion set designed to enable quick set changes with reliable one-handed insertion. We introduced AutoSoft Plus in Canada in late July and plan to expand to additional geographies, including the US later this year. This timing is important as we continue to manage shortages from our key infusion set supplier. We believe Q2 was the period of greatest impact, and our supplier expects availability to improve through the H2 of the year. The launch of AutoSoft Plus is expected to reduce the demand for the SKUs currently under allocation.

Speaker #3: To support this, we are launching AutoSoft Plus, a new infusion set designed to enable quick set changes with reliable one-handed insertion. We introduced AutoSoft Plus in Canada in late July and plan to expand to additional geographies including the U.S.

Speaker #3: later this year. This timing is important, as we continue to manage shortages from our key believe Q2 was the period of greatest impact, and our supplier expects availability to improve through the second half of the year.

Speaker #3: The launch of AutoSoft Plus is expected to reduce the demand for the SKUs currently under allocation. Looking to the first half of 2027, we plan to provide further choice in infusion sets with the launch of SteadySet, our proprietary technology that is FDA cleared for wear up to seven days which is now in manufacturing scale-up.

John Sheridan: Looking to the H1 of 2027, we plan to provide further choice in infusion sets with the launch of SteadiSet, our proprietary technology that is FDA cleared for wear up to seven days, which is now in manufacturing scale-up. The last technology advancement I will discuss is automated insulin delivery. Since Tandem was founded, we have maintained our vision of creating an AID system worthy of the term artificial pancreas. Today, we are closer to this vision than ever and excited to begin sharing more details. Under our longstanding research collaboration with the University of Virginia, we are advancing their next generation AIDANET algorithm into a compelling, fully closed loop experience for everyone. AIDANET, which stands for Automated Insulin Delivery as an Adaptive NETwork, has been under active development and clinical testing for the past several years.

Speaker #3: The last technology advancement I'll discuss is automated insulin delivery. Since TANDEM was founded, we've maintained our vision of creating an AID system worthy of the term artificial pancreas.

Speaker #3: Today, we are closer to this vision than ever and excited to begin sharing more details. Under our longstanding research collaboration with the University of Virginia, we are advancing their next-generation Aidenet algorithm into a compelling fully closed-loop experience for everyone.

Speaker #3: Aidenet which stands for Automated Insulin Delivery as an adaptive network has been under active development and clinical testing for the past several years. We are developing a system designed to help both type 1 and type 2 users meet the clinical time and range guidelines, whether they are new to pump therapy or long-time users.

John Sheridan: We are developing a system designed to help both type 1 and type 2 users meet the clinical time and range guidelines, whether they are new to pump therapy or longtime users. Our goal is to achieve this without meal announcements or other user inputs. Because diabetes can vary day to day, we are also designing the system to incorporate additional user context and respond in a more personalized way. This is an ambitious goal, but advancing closed loop technology requires solving the most complex real-world use cases. Over the past 2 years, our development and user experience teams have been working toward that objective, culminating in FDA approval of an IDE in Q2 and positioning us to begin a pivotal study later this year. Overall, the Q2 progress reflects the strength of our execution across the priorities that we set for the year.

Speaker #3: Our goal is to achieve this without meal announcements or other user inputs. But because diabetes can vary day-to-day, we are also designing the system to incorporate additional user context and respond in more personalized way.

Speaker #3: This is an ambitious goal, but advancing closed-loop technology requires solving the most complex real-world use cases. Over the past two years, our development and user experience teams have been working toward that objective, culminating in FDA approval of an IDE in Q2 and positioning us to begin a pivotal study later this year.

Speaker #3: Overall, the second quarter progress reflects the strength of our execution across the priorities that we set for the year. We remain encouraged by momentum that we are building and remain focused on translating these initiatives into broader customer impact, while improving our financial performance.

John Sheridan: We remain encouraged by the momentum that we are building and remain focused on translating these initiatives into broader customer impact while improving our financial performance. With that, I'll turn the call over to Leigh to provide more detail on financial results.

Speaker #3: With that, I'll turn the call over to Lee to provide more detail on financial results.

Speaker #1: Thanks, John. Our second quarter results reflect strong execution and accelerating progress across our strategic initiatives, which are beginning to deliver sustainable operational and financial benefits.

Leigh Vosseller: Thanks, John. Our Q2 results reflect strong execution and accelerating progress across our strategic initiatives, which are beginning to deliver sustainable operational and financial benefits. It was a record Q2 performance worldwide for sales, pump shipments, and gross margin. Beginning with sales, we shipped approximately 33,000 pumps worldwide. This was driven by the continued demand for Control-IQ, new product innovations, and improved channel access. Worldwide sales totaled $255 million, increasing 6% year-over-year or 5% in constant currency. This was the 10th consecutive quarter we delivered record results for the respective sales quarter, which is a trend we plan to continue building on, even during our business model transition. In the US, we shipped a Q2 record of 22,000 pumps, growing 7% year-over-year.

Speaker #1: It was a record second-quarter performance worldwide for sales, pump shipments, and gross margin. Beginning with sales, we shipped approximately 33,000 pumps worldwide. This was driven by the continued demand for Control-IQ, new product innovations, and improved channel access.

Speaker #1: Worldwide sales totaled $255 million, increasing 6% year-over-year or 5% in constant currency. This was the 10th consecutive quarter we delivered record results for the respective sales quarter, which is a trend we plan to continue building on even during our business model transition.

Speaker #1: In the U.S., we shipped a Q2 record of 22,000 pumps, growing 7% year over year. We've seen improvement in the new start trajectory, with Q2 new starts nearly flat to last year, but stepping up impressively by more than 20% from Q1.

Leigh Vosseller: We've seen improvement in the new start trajectory, with Q2 new starts nearly flat to last year, but stepping up impressively by more than 20% from Q1. Notably, new customers coming from MDI grew mid-single digits year-over-year and now represent approximately 70% of new pump starts. This improvement was driven in part by increasing enthusiasm for Tandem Mobi, which now represents more than half of our shipments to new customers, as well as the availability of a more affordable option through pharmacy. Renewals at more than half of our pump shipments continue to be a robust source of business at double-digit growth. This retention is a direct reflection of the value we place on delivering high levels of customer service, driving strong customer satisfaction. US sales totaled $179 million, increasing 5% year-over-year.

Speaker #1: Notably, new customers coming from MDI grew by mid-single digits year-over-year and now represent approximately 70% of new pump starts. This improvement was driven in part by increasing enthusiasm for Tandem Mobi, which now represents more than half of our shipments to new customers, as well as the availability of a more affordable option through pharmacy.

Speaker #1: Renewals at more than half of our pump shipments continue to be a robust source of business at double-digit growth. This retention is a direct reflection of the value we place on delivering high levels of customer service, driving strong customer satisfaction.

Speaker #1: U.S. sales totaled $179 million, increasing 5% year-over-year. This reflects measurable improvement in pharmacy adoption, partially offset by the expected impact of infusion set constraints from our key supplier.

Leigh Vosseller: This reflects measurable improvement in pharmacy adoption, partially offset by the expected impact of infusion set constraints from our key supplier. As John discussed, we continued the implementation and rollout of our pay go offering through the pharmacy channel that began in March. During Q2, our teams focused on educating patients and physicians about the offering, as well as optimizing the new processes and workflows for scale. In this first full quarter under the pay go structure, pharmacy pump shipments were approximately 10% of total shipments. As a reminder, pump shipments through the pharmacy channel do not include upfront reimbursement, which creates a near-term headwind to revenue when compared to a traditional DME sale. This initial pump headwind is more than offset over time by higher pricing for recurring supplies from both new pay go customers and existing customers who transition from use of their DME benefits.

Speaker #1: As John discussed, we continued the implementation and rollout of our PayGo offering through the pharmacy channel that began in March. During the second quarter, our teams focused on educating patients and physicians about the offering, as well as optimizing the new processes and workflows for scale.

Speaker #1: In this first full quarter under the PayGo structure, pharmacy pump shipments were approximately 10% of total shipments. As a reminder, pump shipments through the pharmacy channel do not include upfront reimbursement, which creates a near-term headwind to revenue when compared to a traditional DME sale.

Speaker #1: This initial pump headwind is more than offset over time by higher pricing for recurring supplies from both new PayGo customers and existing customers who transitioned from use of their DME benefits.

Speaker #1: In the second quarter, the initial headwind from pharmacy pumps was approximately 8 million, yet we still saw more than half of our sales growth driven by net favorable pricing.

Leigh Vosseller: In Q2, the initial headwind from pharmacy pumps was approximately $8 million. Yet we still saw more than half of our sales growth driven by net favorable pricing. This benefit came from the 6% of our US installed base of approximately 325,000 people who used their pharmacy benefit to purchase supplies. As a result of this meaningful early adoption of both pumps and supplies through pay go, sales through the pharmacy increased to 10% of total US sales in Q2. In our first full quarter of offering pay go, pump adoption progressed slightly faster than supply conversions of existing customers and is expected to continue to do so in Q3.

Speaker #1: This benefit came from the 6% of our U.S. install base of approximately 325,000 people who used their pharmacy benefit to purchase supplies. As a result of this meaningful early adoption of both pumps and supplies through PayGo, sales through the pharmacy increased to 10% of total U.S.

Speaker #1: Sales in Q2. In our first full quarter of offering PayGo, pump adoption progressed slightly faster than supply conversions of existing customers and is expected to continue to do so in the third quarter.

Speaker #1: Directionally, we anticipate that each of these measures will continue to step up across the quarters as momentum builds, tracking in line to achieve the average annual modeling assumptions we illustrated at the beginning of the year.

Leigh Vosseller: Directionally, we anticipate that each of these measures will continue to step up across the quarters as momentum builds, tracking in line to achieve the average annual modeling assumptions we illustrated at the beginning of the year. I'll also note that we are seeing a higher average monthly ASP for pharmacy supplies compared to the $350 per month originally provided for modeling purposes. We are not updating our baseline assumption at this time as we'd like to gain more experience, but needless to say, the early data is encouraging. Turning to our international performance, we shipped approximately 11,000 pumps in Q2, which is an increase of 19% year over year.

Speaker #1: I'll also note that we are seeing a higher average monthly ASP for pharmacy supplies compared to the 350 dollars per month originally provided for modeling purposes.

Speaker #1: We are not updating our baseline assumption at this time, as we'd like to gain more experience. But needless to say, the early data is encouraging.

Speaker #1: Turning to our international performance, we shipped approximately 11,000 pumps in the second quarter, which is an increase of 19% year-over-year. While shipment growth in the quarter was primarily driven by our distributor markets, we are beginning to see encouraging traction in our direct European markets from our direct sales and marketing efforts. This reinforces our expectations for sustainable top-line growth and margin expansion over time.

Leigh Vosseller: While shipment growth in the quarter was primarily driven by our distributor markets, we are beginning to see encouraging traction in our direct European markets from our direct sales and marketing efforts, which reinforces our expectations for sustainable top-line growth and margin expansion over time. International sales totaled $75 million, increasing 7% year over year or 6% in constant currency. Direct channel sales represented approximately 13% of international revenue, more than double prior levels as we continue executing our transition strategy. Sales reflect approximately $3 million of headwinds related to distributor inventory buybacks in markets where we have already transitioned to direct operations, as well as destocking ahead of future transitions. Sales for the quarter were also impacted by our key infusion set suppliers' constraints, which unlike the US, were greater than anticipated this quarter.

Speaker #1: International sales totaled $75 million, increasing 7% year-over-year or 6% in constant currency. Direct channel sales represented approximately 13% of international revenue, more than double prior-year levels, as we continue executing our transition strategy.

Speaker #1: Sales reflect approximately $3 million of headwinds related to distributor inventory buybacks in markets where we have already transitioned to direct operations, as well as destocking ahead of future transitions.

Speaker #1: Sales for the quarter were also impacted by our key infusion set suppliers constraints, which, unlike the U.S., were greater than anticipated this quarter. The impact was largely due to timing, as infusion sets were received late in the quarter, limiting distributor order fulfillment before quarter-end.

Leigh Vosseller: The impact was largely due to timing, as infusion sets were received late in the quarter, limiting distributor order fulfillment before quarter end. Turning to margins, gross margin was 57%, improving 5 percentage points year over year and 2 points sequentially. It reflects continued execution against our key margin drivers, including price appreciation from our global channel strategies and product cost improvements as Mobi volumes continue to scale. Operating expenses were $159 million, remaining relatively flat year over year, while we continued to invest in strategic growth initiatives in our global commercial infrastructure and product portfolio. Adjusted EBITDA margin increased to 3% of sales, demonstrating a positive result for the Q4 in a row. This continued improvement reflects the benefits of scale and sustained gross margin expansion while maintaining investment in future growth opportunities.

Speaker #1: Turning to margins, gross margin was 57%, improving 5 percentage points year-over-year and 2 points sequentially. It reflects continued execution against our key margin drivers, including price appreciation from our global channel strategies and product cost improvements as Mobi volumes continue to scale.

Speaker #1: Operating expenses were $159 million, remaining relatively flat year-over-year, while we continue to invest in strategic growth initiatives and our global commercial infrastructure and product portfolio.

Speaker #1: Adjusted EBITDA margin increased to 3% of sales, demonstrating a positive result for the fourth quarter in a row. This continued improvement reflects the benefits of scale and sustained gross margin expansion, while maintaining investment in future growth opportunities.

Speaker #1: Stock-based compensation expense decreased meaningfully in the quarter to $16 million, or 6% of sales, down from 11% of sales in the prior year. This improvement reflects changes made in recent years to our equity granting practices to align with benchmark for companies of our size.

Leigh Vosseller: Stock-based compensation expense decreased meaningfully in the quarter to $16 million or 6% of sales, down from 11% of sales in the prior year. This improvement reflects changes made in recent years to our equity granting practices to align with benchmarks for companies of our size. We anticipate the stock-based comp for the year will now be approximately $65 million, lower than our original expectation of $80 million. The reduction in this non-cash expense meaningfully contributed to the 8-point improvement in operating margin at -5% of sales. We ended the quarter with a healthy balance sheet, including $456 million in cash and investments, compared to $570 million at the end of Q1.

Speaker #1: We anticipate that stock-based comp for the year will now be approximately $65 million, lower than our original expectation of $80 million. The reduction in this non-cash expense meaningfully contributed to the 8-point improvement in operating margin at negative 5% of sales.

Speaker #1: We ended the quarter with a healthy balance sheet, including $456 million in cash and investments, compared to $570 million at the end of Q1.

Speaker #1: The new CRM system to support global initiatives, the second annual payment under the Roche settlement agreement, and an additional strategic investment in secure, a private company we have invested in since 2021.

Leigh Vosseller: The change reflects meaningful investments in a new CRM system to support global initiatives, the second annual payment under the Roche settlement agreement, and an additional strategic investment in CeQur, a private company we have invested in since 2021. CeQur provides simple mealtime insulin delivery through a wearable patch, offering a low-tech option for people with insulin-dependent diabetes who are not seeking an AID system. It complements our automation-focused strategy for insulin-intensive diabetes, while providing insights into a new Type 2 segment to inform our long-term strategy. Turning to our 2026 expectations, we remain confident in our ability to deliver on our goals for the year and are reaffirming our sales and margin guidance. Worldwide sales are expected to be in the range of $1.65 to 1.85 billion.

Speaker #1: Secure provides simple mealtime insulin delivery through a wearable patch, offering a low-tech option for people with insulin-dependent diabetes who are not seeking an AID system.

Speaker #1: It complements our automation-focused strategy for insulin-intensive diabetes, while providing insights into a new type 2 segment to inform our long-term strategy. Turning to our 2026 expectations, we remain confident in our ability to deliver on our goals for the year, and our reaffirming our sales and margin guidance.

Speaker #1: Worldwide sales are expected to be in the range of $1 billion 65 to $1 billion 85. This includes U.S. sales in the range of $730 to $745 million, and international sales in the range of $335 million to $340 million.

Leigh Vosseller: This includes US sales in the range of $730 to 745 million, and international sales in the range of $335 to 340 million. We expect gross margins in the range of 56% to 57% and adjusted EBITDA margin of 5% to 6% of annual sales. For the Q3, worldwide sales are expected to be approximately $265 million. This includes $180 million in the US, reflecting increasing pharmacy adoption. Internationally, we expect sales of $85 million, taking into consideration seasonality typically experienced in the summer months and modest improvement in the availability of infusion sets from our supplier. Gross margin is expected to be approximately 56% and adjusted EBITDA margin approximately 2% of sales based on pharmacy pricing dynamics, as well as a planned increase in operating expenses in support of commercial initiatives.

Speaker #1: We expect gross margins in the range of 56 to 57 percent, and adjusted EBITDA margin of 5 to 6 percent of annual sales. For the third quarter, worldwide sales are expected to be approximately $265 million.

Speaker #1: This includes 180 million in the U.S., reflecting increasing pharmacy adoption. Internationally, we expect sales of $85 million, taking into consideration seasonality typically experienced in the summer months, and modest improvement in the availability of infusion sets from our supplier.

Speaker #1: Gross margin is expected to be approximately 56%, and adjusted EBITDA margin approximately 2% of sales, based on pharmacy pricing dynamics, as well as a planned increase in operating expenses in support of commercial initiatives.

Speaker #1: We continue to expect to achieve our highest margins for the year in the fourth quarter, driven by an increasing percent of our U.S. installed base ordering pharmacy supplies, seasonality in U.S.

Leigh Vosseller: We continue to expect to achieve our highest margins for the year in Q4, driven by an increasing percent of our US installed base ordering pharmacy supplies, seasonality in US DME pump sales, and a larger direct presence in Europe. In closing, the strength of our Q2 performance demonstrates continued advancement against our strategic and financial objectives. We remain focused on driving sustainable growth, expanding profitability, and delivering long-term value for our shareholders. With that, I'll turn the call back to John.

Speaker #1: DME pump sales, and a larger direct presence in Europe. In closing, the strength of our second quarter performance demonstrates continued advancement against our strategic and financial objectives, we remain focused on driving sustainable growth, expanding profitability, and delivering long-term value for our shareholders.

Speaker #1: With that, I'll turn the call back to John.

Speaker #2: Thanks, Leigh. Before we close, I want to recognize the entire TANDEM team for the focus and care you continue to bring to work every day.

John Sheridan: Thanks, Leigh. Before we close, I want to recognize the entire Tandem team for the focus and care you continue to bring to work every day. Your efforts are helping us advance our priorities, support our customers and healthcare providers, and sustain progress across the business. Thank you for everything you do on behalf of Tandem and the diabetes community we serve. In conclusion, our Q2 performance reflects solid execution against the priorities we set for the year and reinforces our confidence in Tandem's strategic direction. Looking ahead, we remain focused on building on this momentum, expanding customer impact through affordable and innovative technology, supporting profitable growth, and building our leadership position in diabetes technology. Thank you again for joining today. We are excited about the opportunities ahead and look forward to sharing updates on the continued execution in the upcoming quarters.

Speaker #2: Your efforts are helping us advance our priorities, support our customers and healthcare providers, and sustain progress across the business. Thank you for everything you do on behalf of TANDEM and the Diabetes community we serve.

Speaker #2: In conclusion, our second quarter performance reflects solid execution against the priorities we set for the year, and reinforces our confidence in TANDEM's strategic direction.

Speaker #2: Looking ahead, we remain focused on building on this momentum, expanding customer impact through affordable and innovative technology, supporting profitable growth, and building our leadership position in diabetes technology.

Speaker #2: Thank you again for joining today. We are excited about the opportunities ahead and look forward to sharing updates on the continued execution in the upcoming quarters.

Speaker #3: Thank you. As a reminder, ladies and gentlemen, if you do have a question at this time, please press star 11 on your telephone. We ask that you please limit yourself to one question.

Operator 2: Thank you. As a reminder, ladies and gentlemen, if you do have a question at this time, please press star one one on your telephone. We ask that you please limit yourself to one question. You may get back in the queue as time allows. Our first question comes from the line of Mathew Blackman from TD Cowen. Your question please.

Operator: Thank you. As a reminder, ladies and gentlemen, if you do have a question at this time, please press star one one on your telephone. We ask that you please limit yourself to one question. You may get back in the queue as time allows. Our first question comes from the line of Mathew Blackman from TD Cowen. Your question please.

Speaker #3: You may get back in the queue as time allows. Our first question comes from the line of Matthew Blackman from TD Cowan. Your question, please.

Speaker #4: Good afternoon, everybody. Can you hear me okay?

Mathew Blackman: Good afternoon, everybody. Can you hear me okay?

Speaker #2: Yep. How are you doing, Matt?

John Sheridan: Yep. How you doing, Matt?

Speaker #4: Doing well, thanks, John. Maybe John or Leigh, could you just maybe talk about some of the areas, perhaps of friction in the pharmacy transition process that you're finding, and maybe whether there have been any surprises, good or bad, in that discovery process, relative to the full-year guide you gave, just the conviction you have today still in that full-year guide for 20% of pump ship through the pharmacy, 10% for the installed base, 15% of revenue, just anything that helps give us some confidence as well that the ramp is going as planned.

Mathew Blackman: Doing well. Thanks, John. Maybe John or Leigh, could you just maybe talk about some of the areas perhaps of friction in the pharmacy transition process that you're finding and, you know, maybe whether there've been any surprises, good or bad, in that discovery process?

Mathew Blackman: Relative to the full year guide you gave, just the conviction you have today still in that full year guide for 20% of pumps shipped through the pharmacy, 10% for the installed base, 15% of revenue. Just anything that helps give us some confidence as well that the ramp is going as planned. Thank you.

Speaker #4: Thank you.

Speaker #2: Sure. Well, I'd say that we're actually very pleased with the early PAYGO experience at Reinforces our conviction that this is an important and meaningful opportunity for the business.

John Sheridan: Sure. Well, I'd say that we're actually very pleased with the early PAYGO experience. It reinforces our conviction that this is an important and meaningful opportunity for the business. I would say that the things that we experienced this quarter would be the normal learning curve that comes along with implementing a new process. As we've said, the process actually is an end-to-end change in how we do business, how the HCPs prescribe, how we service the customers, and how we fulfill orders. It's a meaningful change to the business. I would say there was nothing that was surprising. We feel like we're on track. We're still continuing to work on developing efficiencies. I think that when you look at the performance, 10% of the sales went through pharmacy. When you think about it's really the Q1 of meaningful presence in the pharmacy channel.

Speaker #2: I would say that the things that we experienced this quarter would be the normal learning curve that comes along with implementing a new process.

Speaker #2: As we've said, the process actually is an end-to-end change in how we do business, how the ACPs prescribe, how we service the customers, and how we fulfill orders.

Speaker #2: So it's a meaningful change to the business. But I would say there was nothing that was surprising. We feel like we're on track. We're still continuing to work on developing efficiencies.

Speaker #2: I think that when you look at the performance, 10% of the sales went through pharmacy, that's when you think about that, it's really the first quarter of meaningful presence in the pharmacy channel.

Speaker #2: We're very happy with it, and just continues to reinforce the fact that this is a significant opportunity for us, and we're going to continue to plug away as we have.

John Sheridan: We're very happy with it. It just continues to reinforce the fact that this is a significant opportunity for us. We're going to continue to plug away as we have.

Speaker #4: Thank you, John.

Mathew Blackman: Thank you, John.

Speaker #3: Thank you. And our next question comes from the line of Richard Neuter from Choice Securities. Your question, please.

Operator 2: Thank you. Our next question comes from the line of Richard Newitter from Truist Securities. Your question please.

Operator: Thank you. Our next question comes from the line of Richard Newitter from Truist Securities. Your question please.

Speaker #5: Hi, this is Felipe on for Rich. Your largest competitor called out retention issues in the Type II community. So I'd assume wondering if you could maybe comment on your experience with Type II patients in the quarter, and if you're seeing any of those trends.

[Analyst] (Truist Securities): Hi, this is Philippe on for Rich. Your largest competitor called out retention issues in the type 2 community. I'm just wondering if you could maybe comment on your experience with type 2 patients in the quarter. If you're seeing any of those trends. Thanks for taking the question.

Felipe Lamar: Hi, this is Philippe on for Richard. Your largest competitor called out retention issues in the type 2 community. I'm just wondering if you could maybe comment on your experience with type 2 patients in the quarter. If you're seeing any of those trends. Thanks for taking the question.

Speaker #5: Thanks for taking the question.

Speaker #2: Yeah. I think that, again, I'd just like pharmacy the Type II expansion is another huge opportunity for us, and that's going to really drive growth going forward.

John Sheridan: I think that, again, just like pharmacy, the type 2 expansion is another huge opportunity for us, and that is going to really drive growth going forward. It is an under-penetrated market, both in the US and internationally. Certainly requires market development, and there is still a lot of learning to do. We are not going to talk specifically about the numbers today. It is early and there is still a lot of sources of growth that is in process. I will say relative to attrition, that our type 2 attrition, it is really modestly higher than our type 1 rate, and it has been stable over the past five years. We have employed a strategy where we intentionally are selective and focused on patients who have the highest likelihood of success, and I think that is pretty much what is driving that success in the attrition for us.

Speaker #2: It's an under-penetrated market, both in the U.S. and internationally. Certainly requires market development. And there's still a lot of learning to do. We're not going to talk specifically about the numbers today.

Speaker #2: It's early, and there's still a lot of sources of growth that's in process. But I will say, relative to attrition, that our Type II attrition, it's really modestly higher than our Type I rate.

Speaker #2: And it's been stable over the past five years. And we've employed a strategy where we intentionally are selective and focus on patients who have the highest likelihood of success.

Speaker #2: And I think that's pretty much what's driving that success in the attrition for us. And as far as the indicators that I think that we want to keep track of, there's the C-peptide decision with CMS.

John Sheridan: As far as the indicators that I think that we want to keep track of, there is the C-peptide decision with CMS. We went and actually spoke to CMS in the last few weeks with a consortium of others trying to eliminate the C-peptide decision, and I think we made it very clear on what the impact is on the Medicare population of having to do this. I think we left the meeting pretty optimistic, and it is this month, it is August, when we expect to hear results. We also expect tailwinds from FreeStyle Libre 3, from Mobi Tubeless pharmacy access, and we continue to invest in, I would say, just digital marketing and creating awareness with PCPs and HCPs. I think we are, again, we are very excited about this.

Speaker #2: We went and actually spoke to CMS in the last few weeks with a consortium of others, trying to eliminate the C-peptide decision.

Speaker #2: And I think we made it very clear on what the impact is on the Medicare population, of having to do this. And I think we left the meeting pretty optimistic.

Speaker #2: And it's this month—it's August—when we expect to hear results. We also expect tailwinds from FreeStyle Libre 3, from Mobi Tubeless, and from pharmacy access. We continue to invest in, I would say, digital marketing and creating awareness with PCPs and HCPs.

Speaker #2: So I think we're, again, we're very excited about this. It's an important part of our strategy going forward. And we anticipate seeing growth in Type II MDI during the year and will continue to report on it as things go on.

John Sheridan: It is an important part of our strategy going forward, and we anticipate seeing growth in type 2 MDI during the year, and we will continue to report on it as things go on.

Speaker #3: Thank you. And our next question comes from the line of Larry Beetleson from Wells Fargo. Your question, please.

Operator 2: Thank you. Our next question comes from the line of Larry Biegelsen from Wells Fargo. Your question please.

Operator: Thank you. Our next question comes from the line of Larry Biegelsen from Wells Fargo. Your question please.

Larry Biegelsen: Good afternoon. Thanks for taking the question. Leigh, I think US pump shipments were a little soft in Q2, year-over-year basis, sequential basis from what we typically see, and new starts were flat, and I think you had expected them to be up year-over-year in Q2. Is there anything to call out in Q2? It does look like you need 12% to 13% year-over-year pump growth in the H2 to reach the midpoint of the US pump guidance. What are the drivers of that acceleration in pump shipments in the H2? Thanks.

Speaker #6: Good afternoon. Thanks for taking the question. Leigh, I think U.S. pump shipments were a little soft in Q2. Year-over-year basis, sequential basis. From what we typically see, and new starts were flat.

Speaker #6: And I think you had expected them to be up year-over-year in Q2, I think. So is there anything to call out in Q2? And it does look like you need 12 to 13 percent year-over-year pump growth in the second half to reach the midpoint of the U.S.

Speaker #6: pump guidance. So what are the drivers of that acceleration in pump shipments in the second half? Thanks.

Speaker #1: Sure. Thanks for the question, Larry. We did see strong growth, and remember, we're at the very beginning of a lot of our initiatives that we expect to gain momentum across the year.

Leigh Vosseller: Sure. Thanks for the question, Larry. We saw strong growth. Remember, we're at the very beginning of a lot of our initiatives that we expect to gain momentum across the year. To your question about what's really going to drive that back half strength, we have a number of new products under launch right now. An example would be FreeStyle Libre 3, which we launched late last year, Mobi Android also late last year, early into this year, and we're already seeing results from that. We're seeing that our Mobi starts are going to more than half of our new pump starts. We have pharmacy, which as John spoke to earlier, it's the first full quarter of that, and it's really removing that affordability barrier that people have had to shift to pump therapy.

Speaker #1: So, to your question about what's really going to drive that back-half strength, we have a number of new products under launch right now.

Speaker #1: And so an example would be FreeStyle Libre 3, which we launched late last year, MobiAndroid, also late last year, early into this year. And we're already seeing results from that.

Speaker #1: We're seeing that our Mobi starts are growing to more than half of our new pump starts. We have pharmacy, which—as John spoke to earlier—it's the first full quarter of that.

Speaker #1: And it's really removing that affordability barrier that people have had to shift to pump therapy. And so as we drive that momentum forward, those are some of the areas that we expect to really put us give us that back half strength.

Leigh Vosseller: As we drive that momentum forward, those are some of the areas that we expect to really give us that H2 strength. One thing I'll highlight on the new starts this quarter, while we were just short a few hundred pumps from growth, actually what we saw were that MDI conversions, which arguably is the most important metric, grew mid-single digits year-over-year. It's been an improving trajectory over the last few quarters. That's the signal that we need to support the confidence that we have for the year in terms of reaching that H2 strength and continue to see new start growth this year.

Speaker #1: One thing I'll highlight on the new starts this quarter, while we were just short a few hundred pumps from growth, actually, what we saw were that MDI conversions, which arguably is the most important metric, grew mid-single digits year over year.

Speaker #1: And it's been an improving trajectory over the last few quarters. And so that's the signal that we need to support that the confidence that we have for the year in terms of reaching that back half strength and continuing to see new start growth this year.

Speaker #3: Thank you. And our next question comes to the line of Matthew O'Brien from Piper Sandler. Your question, please.

Operator 2: Thank you. Our next question comes to the line of Matthew O'Brien from Piper Sandler. Your question please.

Operator: Thank you. Our next question comes to the line of Matthew O'Brien from Piper Sandler. Your question please.

Speaker #7: Hi, John. Leigh, this is Ana on for Matt, thanks for taking our question. I guess I wanted to ask on gross margin. Was really strong in the quarter.

[Analyst] (Piper Sandler): Hi, John, Leigh. This is Ana on for Matt. Thanks for taking our question. I guess I wanted to ask on gross margin was really strong in the quarter, much better than we had modeled.

Ana Gupte: Hi, John, Leigh. This is Ana on for Matt. Thanks for taking our question. I guess I wanted to ask on gross margin was really strong in the quarter, much better than we had modeled.

Speaker #7: Much better than we had modeled. And just curious to understand the thought process behind the reiterated gross margin guide. Given the outperformance there and the strong adoption you're seeing on the pharmacy side, I'm curious why it's supposed to sort of step down sequentially in the third quarter.

[Analyst] (Piper Sandler): Just curious to understand the thought process behind the reiterated gross margin guide, given the outperformance there and the strong adoption you're seeing on the pharmacy side. I'm curious why it's supposed to sort of step down sequentially in Q3. Just any thoughts there would be helpful. Thank you.

Ana Gupte: Just curious to understand the thought process behind the reiterated gross margin guide, given the outperformance there and the strong adoption you're seeing on the pharmacy side. I'm curious why it's supposed to sort of step down sequentially in Q3. Just any thoughts there would be helpful. Thank you.

Speaker #7: So, just any thoughts that would be helpful. Thank you.

Speaker #1: Sure. Yeah. So we are very excited to share this gross margin progress that we're making. It's something that's been a, I would say, a point of contention for many years and to have this significant of a step up is a really good demonstration of where this can go in the future.

Leigh Vosseller: Sure. Yeah, we are very excited to share this gross margin progress that we're making. It's something that's been a, I would say, a point of contention for many years, and to have this significant of a step up is a really good demonstration of where this can go in the future. That's on still a relatively low percentage of sales coming from pharmacy. Two things really drove the strength this quarter. It was the pricing benefit from the pharmacy channel as we continue to push that adoption percentage. Also, the fact that the Mobi volumes are growing and scaling, that's contributing from a cost perspective. As we look ahead, we guided to a point step down in Q3, but still achieving that 60% gross margin in Q4. That just comes from the variability as we push this pharmacy adoption.

Speaker #1: And that's on still a relatively low percentage of sales coming from pharmacy. And so two things really drove the strength this quarter. It was the pricing benefit from the pharmacy channel as we continue to push that adoption percentage.

Speaker #1: Also, the fact that the Mobi volumes are growing and scaling. And so that's contributing from a cost perspective. As we look ahead, we guided to a 0.

Speaker #1: Step down in Q3, but still achieving that 60% gross margin in the fourth quarter. And that just comes from the variability as we push this pharmacy adoption.

Speaker #1: And so the two levers are really what percentage of pumps go through pharmacy at that $0 price, which actually creates a headwind on sales, which pressures the gross margin.

Leigh Vosseller: The two levers are really what percentage of pumps go through pharmacy at that $0 price, which actually creates a headwind on sales, which pressures the gross margin. Then you have that added benefit that comes from the people ordering supplies in the pharmacy channel. As we look forward to the pacing, we anticipate that the pump adoption in PAYGO might outpace in the next quarter, the pharmacy supplies adoption. That just plays a little bit with the margin optics. In the long term, this is really going to drive great strength overall as we continue to accelerate this initiative.

Speaker #1: And then you have that added benefit that comes from the people ordering supplies in the pharmacy channel. And so as we looked forward to the pacing, we anticipate that the pump adoption in PAYGO might outpace in the next quarter of the pharmacy supplies adoption.

Speaker #1: And so that just plays a little bit with the margin optics. But in the long term, this is really going to drive great strength overall as we continue to accelerate this initiative.

Speaker #3: Thank you. And our next question comes to the line of Suraj Kalia from Oppenheimer. Your question, please.

Operator 2: Thank you. Our next question comes from the line of Suraj Kalia from Oppenheimer. Your question, please.

Operator: Thank you. Our next question comes from the line of Suraj Kalia from Oppenheimer. Your question, please.

[Analyst] (Oppenheimer): Hi. Great. Thanks. This is Jacob on for Suraj. Thanks for taking the questions. I guess just looking at tubeless Mobi and the ramp there, are there any gross margin dynamics we should keep in mind during the phase launch? Does it carry a different consumable mix or cost structure that could create any temporary changes in the margin before you reach scale?

Jacob Conway: Hi. Great. Thanks. This is Jacob on for Suraj. Thanks for taking the questions. I guess just looking at tubeless Mobi and the ramp there, are there any gross margin dynamics we should keep in mind during the phase launch? Does it carry a different consumable mix or cost structure that could create any temporary changes in the margin before you reach scale?

Speaker #5: Hi, great, thanks. This is Jacob on for Suraj. Thanks for taking the questions. I guess, just looking at Tubeless Mobi and the ramp there, are there any gross margin dynamics we should keep in mind during the phased launch?

Speaker #5: Does it carry a different consumable mix or cost structure that could create any temporary changes in the margin before you reach scale?

Speaker #1: Yes. Thanks for the question, Jacob. It's a really important point. With any new product that you launch, you're not going to reach the full benefits until you get to a level of scale.

Leigh Vosseller: Yes. Thanks for the question, Jake. It's a really important point. With any new product that you launch, you're not going to reap the full benefits until you get to a level of scale. Much like when we first launched Mobi a few years ago, we saw a little bit of a headwind in gross margin, but not incredibly meaningful. It just more so keeps it flattened and not necessarily continuing to step up. There's really nothing else to speak to. We're super excited for that technology to come to market. The other area I would speak to as we think about a launch of a product of that magnitude would be you might see a step up in sales and marketing as we make sure that we're getting the awareness out there as quickly as possible.

Speaker #1: And so much like when we first launched Mobi a few years ago, we saw a little bit of a headwind in gross margin, but not incredibly meaningful.

Speaker #1: It just more so keeps it flattened and not necessarily continuing to step up. But there's really nothing else to speak to. We're super excited for that technology to come to market.

Speaker #1: And so the other area I would speak to as we think about a launch of a product of that magnitude, would be you might see a step up in sales and marketing as we make sure that we're getting the awareness out there as quickly as possible.

Speaker #3: Thank you. And our next question comes to the line of JoAnn Wunch from Citi. Your question, please.

Operator 2: Thank you. Our next question comes from the line of Joanne Wuensch from Citi. Your question, please.

Operator: Thank you. Our next question comes from the line of Joanne Wuensch from Citi. Your question, please.

Speaker #8: Good evening. And thank you for taking the question. I just want to double-click on Toby. And I want to confirm or ask if it has been filed with the FDA.

Joanne Wuensch: Good evening, and thank you for taking the question. I just want to double-click on Mobi, I want to confirm or ask if it has been filed with the FDA. What is your current updated timing on that launch? Thank you.

Speaker #8: And what is your current updated timing on that launch? Thank you.

Speaker #5: Hi, JoAnn. Well, I have to say we have filed it, and we did file it in the second quarter. Right now, it's under review.

John Sheridan: Hi, Joanne. Well, I have to say we have filed it, we did file it in Q2. Right now it's under review. We're very excited about this. We've made this clear. It's the first extended wear patch that'll be on the market. It's going to be a great product, we're very excited to have it out there. When it comes to what's next, we're obviously going to be waiting clearance, we are planning on having clearance and actually beginning the scaling launch in H2 of this year. What we have to do still is once we get the clearance, there's some things we'll probably have to do to make changes in the documentation for the FDA. There's training we've got to conduct with our own people and with HCPs. There's contracts we've got to go out and start to modify.

Speaker #5: We're very excited about this. It's we've made this clear. This is the first extended work packs that will be on the market. It's going to be a great product, and we're very excited to have it out there.

Speaker #5: When it comes to what's next, I mean, we're obviously going to be waiting clearance, but we are planning on having clearance and actually beginning the scaling launch in the second half of this year.

Speaker #5: What we have to do still is once we get the clearance, there's some things we'll probably have to do to make changes in the documentation for the FDA.

Speaker #5: There's training we've got to conduct with our own people and with HCPs. There's contracts we've got to go out and start to modify. And then we initiate this early access program where we put patients on the product for a few weeks to a month just to make sure that it's performing the way we expect it to.

John Sheridan: We initiate this early access program where we put patients on the product for a few weeks to a month just to make sure that it's performing the way we expect it to. We're planning for all of this, including kind of an aggressive marketing program once it does get approved. Again, really looking forward to getting this into the market this year. It'll be a scaled launch for the rest of this year.

Speaker #5: So we're planning for all of this. And including kind of an aggressive marketing program once it does get approved and again, really looking forward to getting this into the market this year.

Speaker #5: But it'll be a scaled launch for the rest of this year.

Speaker #3: Thank you. And our next question comes to the line of Mike Crackey from Leigh Rink Partners. Your question, please.

Operator 2: Thank you. Our next question comes from the line of Mike Kratky from Leerink Partners. Your question, please.

Operator: Thank you. Our next question comes from the line of Mike Kratky from Leerink Partners. Your question, please.

Speaker #6: Hey everyone, thanks for taking our questions. If I could just follow up on Matt's question earlier regarding the confidence in maintaining that 20% of U.S. shipments through the pharmacy this year—it would seemingly require a fairly major step up for Q3 and Q4.

Mike Kratky: Hey, everyone. Thanks for taking our questions. Maybe just to follow up on Nat's question earlier on the confidence in maintaining that 20% of US shipments through the pharmacy this year. It would seemingly require a fairly major step-up for Q3 and Q4. Just curious in terms of the quarterly cadence between Q3 and Q4 that's built into your expectations there. Is that Q4 exit rate a reasonable assumption for a jump-off point for 2027?

Speaker #6: So just curious in terms of the quarterly cadence between 3Q and 4Q, that's built into your expectations there? And is that 4Q exit rate a reasonable assumption for a jump-off point for 27?

Speaker #1: Yes. Thanks for the question, Mike. So the way I'll start first is thinking about what the opportunity is. And today, we already have 45% formulary coverage.

Leigh Vosseller: Yes. Thanks for the question, Mike. The way I'll start first is thinking about what the opportunity is. Today we already have 45% formulary coverage, so we're at a point where we're nearing the high end of our range of goals for this year in terms of coverage and access. The opportunity exists. As John talked through how we launched in Q2, in the early months, there are just things you learn, and you have to scale, and you have to adjust, and you have to pivot along the way, and the momentum is strong. We feel really good that it's going to keep growing. In fact, in Q2, we shipped more pumps through PAYGO than we did all of last year in our old pharmacy model. It's moving in a really good direction.

Speaker #1: And so we're at a point where we're nearing the high end of our range of goals for this year in terms of coverage and access.

Speaker #1: exists. As John talked through how we launched in the second quarter, in the early months, there are just things you learn and you have to scale and you have to adjust and you have to pivot along the way.

Speaker #1: And the momentum is strong. And so we feel really good that it's going to keep growing. In fact, in the second quarter, we shipped more pumps through PAYGO than we did all of last year in our old pharmacy model.

Speaker #1: And so it's moving in a really good direction. And when you take away that cost for patients, it's easier to bring new patients onto the technology.

Leigh Vosseller: When you take away that cost for patients, it's easier to bring new patients onto the technology. We just have to get through some of these early learnings and really start driving that awareness with HCPs and the patients that this opportunity exists. When we thought about Q2, we built in a pretty hefty step-up in terms of percentage that we would expect to go through pharmacy, and a really high exit rate as well. We haven't given any specific details on what those numbers are, but it will continue to step up meaningfully each quarter, and we feel very convicted in the ability to achieve that.

Speaker #1: So we just have to get through some of these early learnings and really start driving that awareness with HCPs. And so the opportunity And the patients that this opportunity exists.

Speaker #1: And so when we thought about second quarter, we built in a pretty hefty step-up in terms of percentage that we would expect to go through pharmacy.

Speaker #1: And in a really high exit rate as well. So we haven't given any specific details on what those numbers are, but it will continue to step up meaningfully each quarter.

Speaker #1: And we feel very convicted in the ability to achieve that.

Speaker #6: Understood. Thanks.

Mike Kratky: Understood. Thanks.

Speaker #3: Thank you. And our next question comes to the line of Karen Ryan from Deutsche Bank. Your question, please.

Operator 2: Thank you. Our next question comes from the line of Kieran Ryan from Deutsche Bank. Your question please.

Operator: Thank you. Our next question comes from the line of Kieran Ryan from Deutsche Bank. Your question please.

Speaker #7: Hi there. Thanks for taking my question. I just wanted to check in on how you're tracking on converting users over to pharmacy at renewal.

Kieran Ryan: Hi there. Thanks for taking my question. I just wanted to check in on how you're tracking on converting users over to pharmacy at renewal. If you want to maybe talk about some of the patterns and trends you're seeing there and how that compares to some of the other pharmacy growth opportunities and new starts or in-warranty conversions, which I think are kind of the most attractive for you since they don't come with the pump heads. Thanks.

Speaker #7: If you want to maybe talk about some of the patterns and trends you're seeing there and how that can compare to some of the other pharmacy growth opportunities and new starts or in-warranty conversions, which I think are kind of the most attractive for you since they don't come with the pump headwood.

Speaker #7: Thanks.

Speaker #1: Sure. So we haven't really spoken to any particular details about the sources where pharmacy is driving the most opportunity. But as you point out, I'll go through a couple of just pieces of information.

Leigh Vosseller: Sure. We haven't really spoken to any particular details about the sources where pharmacy is driving the most opportunity. As you point out, I'll go through a couple of just pieces of information. For new starts, it's very attractive. Many of those folks who are coming from MDI have never moved to pump therapy because of the cost. It's something that it makes it easier to have those conversations about what the products offer because they don't have to worry about the cost burden in mind as much. For renewal customers, where it can help when they're out of warranty, would really be that they don't have to wait as long.

Speaker #1: For new starts, it's very attractive. Many of those folks who are coming from MDI have never moved to pump therapy because of the cost.

Speaker #1: So it's something that it makes it easier to have those conversations about what the product's offer because they don't have to worry about the cost burden in mind as much.

Speaker #1: For renewal customers, where it can help when they're out of warranty, would really be that they don't have to wait as long. Sometimes they go through that same cycle where they don't want to make that next purchase.

Leigh Vosseller: Sometimes they go through that same cycle where they don't want to make that next purchase, their pump's still working fine, but this helps them be able to move forward more quickly with a renewal, and/or a switch. If they were on t:slim and they want to move to Mobi, it gives them that opportunity. We don't particularly focus on shifting our own in-warranty customers over, but it does make it easier for patients who want to convert from other technologies that may be in a contract to shift to our product in the pharmacy channel. There are many ways where we can drive this penetration with pharmacy that will contribute to us achieving that 20% target that we've set out for the year.

Speaker #1: Their pump's still working fine, but this helps them be able to move forward more quickly with a renewal. And/or a switch if they were on TSOM and they want to move to Moby, it gives them that opportunity.

Speaker #1: We don't particularly focus on shifting our own in-warranty customers over, but it does make it easier for patients who want to convert from other technologies that may be in a contract.

Speaker #1: To shift to our product in the pharmacy channel. So there are many ways where we can drive this penetration with pharmacy that will contribute to us achieving that 20% target that we've set out for the year.

Speaker #3: Thank you. And our next question comes from the line of Jason Bedford from Raymond James. Your question, please.

Operator 2: Thank you. Our next question comes from the line of Jayson Bedford from Raymond James. Your question please.

Operator: Thank you. Our next question comes from the line of Jayson Bedford from Raymond James. Your question please.

Speaker #8: Hi. This is Elaina for Jason. Thanks for taking my question. I was wondering, can you share some more color on how your conversations with payers have evolved since introducing PAYGO?

[Analyst] (Raymond James): Hi, this is Elena for Jayson. Thanks for taking my question. I was wondering, can you share some more color on how your conversations with payers have evolved since introducing PAYGO? You mentioned seeing a higher price than your initial expectation, which sounds interesting. Could you maybe share a little about what might be driving this? Do you see an opportunity for a higher price in the future? Thank you.

Elena Hryb: Hi, this is Elena for Jayson. Thanks for taking my question. I was wondering, can you share some more color on how your conversations with payers have evolved since introducing PAYGO? You mentioned seeing a higher price than your initial expectation, which sounds interesting. Could you maybe share a little about what might be driving this? Do you see an opportunity for a higher price in the future? Thank you

Speaker #8: You mentioned seeing a higher price than your initial expectation, which sounds interesting. Could you maybe share a little about what might be driving this?

Speaker #8: And do you see an opportunity for a higher price in the future? Thank you.

Speaker #1: Sure. So from the payer perspective, I would say we've already have contracts with the top three PBMs. So we have really great coverage there.

Leigh Vosseller: Sure. From the payer perspective, I would say we already have contracts with the top three PBMs, we have really great coverage there. Basically anyone else that's left, we pretty much are talking to them, and we're at different points or stages in our negotiation. It's going very well. The new model's making a big difference in terms of getting that formulary coverage versus the model that we had last year. We're going to continue to pursue that, and as we look ahead, it will become more about protecting and defending what we have and continuing to drive preferred access in cases where we don't have that today. The pricing, we had set out, I'm going to say, a modeling assumption for people to start at $350 per month per patient.

Speaker #1: And basically, anyone else that's left, we pretty much are talking to them. And we're at different points or stages in our negotiation. And so it's going very well.

Speaker #1: The new that formulary coverage versus the model that we had last year. So we're going to continue to pursue that. And as we look ahead, it will become more about protecting and defending what we have and continuing to drive preferred access in cases where we don't have that today.

Speaker #1: The pricing, so we had set out I'm going to say a modeling assumption for people to start at $350 per month per patient. The contracts that we have have a varying levels of rebate associated with them.

Leigh Vosseller: The contracts that we have have varying levels of rebate associated with them, and also an unknown for us is what level of copay assistance that patients might actually utilize. We factored in conservatively that we could do at least $350 a month. We did indeed do better than that in Q2, but I would dare say we don't have a sustainable trend necessarily to say this is the new number that it will be. We want to monitor this over the next couple of quarters and see where it starts to shake out on a regular basis, and then we can talk more about what that looks like in the future.

Speaker #1: And also an unknown for us is what level of copay assistance that patients might actually utilize. And so we factored in conservatively that we could do at least $350 a month.

Speaker #1: We did indeed do better than that in the second quarter, but I would dare say we don't have a sustainable trend necessarily to say this is the new number that it will be.

Speaker #1: So we want to monitor this over the next couple of quarters and see where it starts to shake out on a regular basis. And then we can talk more about what that looks like in the future.

Speaker #1: I think it's fair to say that we have our eye set on a higher number down the road as we see in the market that competitively others speak to higher price points.

Leigh Vosseller: I think it's fair to say that we have our eye set on a higher number down the road as we see in the market that competitively, others speak to higher price points, and so we look forward to driving towards that number ourself.

Speaker #1: And so we look forward to driving towards that number ourselves.

Speaker #3: Thank you, and our next question comes to the line of Anthony Petrone from Mizo. Your question, please.

Operator 2: Thank you. Our next question comes from the line of Anthony Petrone from Mizuho. Your question please.

Operator: Thank you. Our next question comes from the line of Anthony Petrone from Mizuho. Your question please.

Bradley Bowers: This is Brad on for Anthony...

Speaker #5: Yeah. Hello. Good night. This is Dimitri Talon for Anthony. Congrats on the printout. I was pretty good across most sectors, but it looked like international supplies was maybe a little weaker than expected.

Leigh Vosseller: I'll start with the supplies question internationally. We have been, I would say, on our worldwide business, managing through a supply chain constraint with infusion sets that come from a third party. It's something that began late last year but became more impactful here in H1 2026. We believe the greatest impact was in Q2, and for us, that was the primary reason that we saw softness in supply sales in Q2. We did receive the level of inventory or allocation that we expected to get in Q2. We can say that we believe we're on track with our supplier with what we should get this year. It just came so late in Q2, we weren't able to turn it around and get it into distributors' hands before we closed Q2.

Speaker #5: And I don't know if you can provide any color or what happened there in the quarter and maybe if anything we should be thinking about looking into the rest of the year.

Speaker #5: And maybe a quick follow-up. We all look forward to Moby, Tubeless, and just I feel like we haven't heard much about Citi lately. And I don't know if you can get an update around that.

Speaker #5: Thanks.

Speaker #1: I'll start with the supplies question internationally. So we have been I would say on our worldwide business, managing through and supply chain constraints with infusion sets that come from a third party.

Speaker #1: It's something that began late last year, but became more impactful here in the first half of 2026. We believe the greatest impact was in the second quarter.

Speaker #1: And for us, that was the primary reason that we saw softness in supply sales in the second quarter. We did receive the level of inventory or allocation that we expected to get in the second quarter.

Speaker #1: So we can say that we believe we're on track with our supplier, with what we should get this year. It just came so late in the quarter.

Speaker #1: We weren't able to turn it around and get it into distributors' hands before we closed the quarter. So it's really more of a timing element there.

Leigh Vosseller: It's really more of a timing element there. Again, we do think Q2 had the greatest impact. We'll still see some impact in the next couple of quarters, but it will lessen across the year. At this point, we feel like we're managing well through the situation, and we still feel confident in achieving our guidance for the year.

Speaker #1: And again, we do think second quarter had the greatest impact. We'll still see some impact in the next couple of quarters, but it will lessen across the year.

Speaker #1: And at this point, we feel like we're managing well through the situation, and we still feel confident in achieving our guidance for the year.

Speaker #2: And then relative to Sigi, I would say that we have taken the technology resources from Switzerland and brought them here to San Diego. And now we are working on, I would say, the next generation Moby.

John Sheridan: Relative to Sigi, I would say that we have taken their technology resources from Switzerland and brought them here to San Diego. Now we are working on, I would say, the next generation Mobi. The next generation Mobi will incorporate the Sigi technology and also some of the Mobi technology, and that's going to come to market in a while. I would say that right now our focus really is to get Mobi Tubeless to the market, and we think that Mobi Tubeless is going to have a meaningful life now on the order of two to three years.

Speaker #2: The next generation Moby will incorporate the Sigi technology and also some of the Moby technology. And that's going to come to market in a while.

Speaker #2: I would say that right now our focus really is to get Moby Tubeless to the market. And we think that Moby Tubeless is going to have a meaningful life on the order of a two to three years.

Speaker #2: And in that timeframe, we'll continue to work on the next generation Moby which, as I said, will include the technology that we purchased from Sigi.

John Sheridan: In that time frame, we'll continue to work on the next generation Mobi, which as I said, will include the technology that we purchased from Sigi, and we think that'll be a great next product, but it's not going to be in the market for a little while.

Speaker #2: And we think that'll be a great next product, but it's not going to be in the market for a little while.

Speaker #5: Okay. Thanks, Seth.

Leigh Vosseller: Okay. Thanks, Russ.

Speaker #3: Thank you. And our next question comes from the line of Travis Steed from Bank of America. Your question, please.

Operator 2: Thank you. Our next question comes from the line of Travis Steed from Bank of America. Your question please.

Operator: Thank you. Our next question comes from the line of Travis Steed from Bank of America. Your question please.

Speaker #6: Hi, this is Grace Sean for Travis. Congrats on filing, Toby, and being on track for the launch. Just wanted to ask how we should think about the launch ramping and uptake into 2027 with other competitors potentially coming to market at the end of this year and early next year with their patch pumps.

[Analyst] (Bank of America): Hi, this is Grace on for Travis. Congrats on filing Mobi and being on track for the launch. Just wanted to ask how we should think about the launch ramping and uptake into 2027 with other competitors coming to market potentially end of this year and early next year with their patch pumps. Maybe any preliminary thoughts on market growth in the US in 2027 and how these patches can accelerate growth.

Grace Carter: Hi, this is Grace on for Travis. Congrats on filing Mobi and being on track for the launch. Just wanted to ask how we should think about the launch ramping and uptake into 2027 with other competitors coming to market potentially end of this year and early next year with their patch pumps. Maybe any preliminary thoughts on market growth in the US in 2027 and how these patches can accelerate growth.

Speaker #6: And maybe any preliminary thoughts on market growth in the US in 2027 and how these patches can accelerate growth.

Speaker #2: Right. I think when you look at the market today, there's a tube space and a tubeless ess space. And if you look at the market growth rate in the tube space, it's single digits, maybe mid-single digits.

John Sheridan: Right. I think when you look at the market today, there's a tube space and a tubeless space. If you look at the market growth rate in the tube space, it's single digits, maybe mid-single digits. If you look at the growth rate of the market in the tubeless space, it's over 20%. We think getting into that market with a tube product is going to give us access to a significantly higher interest level. It's going to drive meaningful growth to the point where I think this will be an inflection point in our revenue curve when it's on the market and fully released. I think as I said, there's still uncertainty from the FDA and we've got to get through our launch processes.

Speaker #2: And if you look at the growth rate of the market in the tubeless space, it's over 20%. And so we think getting into that market with a tube product is going to give us access to a significantly higher interest level and it's going to drive meaningful growth to the point where I think this will be an inflection point in our revenue curve when it's on the market and fully released.

Speaker #2: I think as I said, they're still uncertainty from the FDA and we've got to get through our launch processes. But I would say that we do expect to have the product on the market in the second half of this year.

John Sheridan: I would say that we do expect to have the product on the market in H2 of this year. I would say that 2027 is really going to be a full year where we have the product in the market. I do believe it'll compete effectively against all of the existing and devices that are near release as well. I can say that we've done that through a number of marketing panels where we've basically just spent a lot of time understanding what people like about what's on the market as well as tubeless Mobi. At the ADA, we had a number of seminars or sessions with physicians where we actually sat them down in the room and we showed them the product. We showed them how we needed to transition from a tube to a tubeless device.

Speaker #2: I would say that 2027 is really going to be a full year where we have the product in the market. I do believe it'll compete effectively against all of the existing and devices that are near release as well.

Speaker #2: And I can say that we've done that through a number of marketing panels where we've just we've basically just spent a lot of time understanding what people like about what's on the market as well as tubeless Moby.

Speaker #2: And then at the ADA, we did a number of we had a number of seminars, our sessions with physicians where we actually sat them down in the room and we showed them the product.

Speaker #2: We showed them how we needed to transition from a tube to a tubeless device. And I have to say that the response was just overwhelmingly positive.

John Sheridan: I have to say that the response was just overwhelmingly positive. We think Mobi Tubeless is going to be a very important device for us. It'll start this year, I think 2027 will be the year where we really see the positive impact not only on revenue, but on margin.

Speaker #2: So we think Moby Tubeless is going to be a very important device for us. It'll start this year, but I think 2027 will be the year where we really see the positive impact on not only on revenue, but on margin.

Speaker #3: Thank you. And our next question comes from the line of John Block from Stifel. Your question, please.

Operator 2: Thank you. Our next question comes from the line of Jonathan Block from Stifel. Your question, please.

Operator: Thank you. Our next question comes from the line of Jonathan Block from Stifel. Your question, please.

Speaker #4: Great, guys. Thanks. Good afternoon. I'm just curious—Leigh, roughly how much higher has pharmacy been running above that initial $350 per month assumption? And maybe what that does or doesn't say about the number of people transitioning to pharmacy for supplies.

Jonathan Block: Great, guys. Thanks. Good afternoon. I'm just curious, Leigh, roughly how much higher has pharmacy been running above that initial $350 per month assumption? Maybe what that does or doesn't say about the number of people transitioning to pharmacy for supplies. In other words, if it is running decently above, I think that would imply that the number of conversions is running a little bit behind plan, if I've got that correct. Any thoughts why that would be the case?

Speaker #4: In other words, if it is running decently above I think that would imply that the number of conversions is running a little bit behind plan if I've got that correct.

Speaker #4: And any thoughts why that would be the case?

Speaker #1: Yeah, great question. I'm not going to speak to the difference that we saw in price versus the modeling assumption we had put out a specifically other than your point is accurate that some of that pricing benefit was part of the reason for the overachievement in the quarter.

Leigh Vosseller: Yeah. Great question. I'm not going to speak to the difference that we saw in price versus the modeling assumption we had put out specifically, other than your point is accurate that some of that pricing benefit was part of the reason for the overachievement in the quarter. What we did see in this early adoption phase, this is really as there's a lot of things to work on as the volumes are coming through pharmacy. There was a little bit more of a focus on getting the pay-go pumps out the door. Thinking about bringing those new patients into the family who really want a pump. For patients who are already ordering supplies from us through DME, who are happy customers, no rush to push them through. A lot of it's a balancing act because all of this takes physicians time to write new prescriptions.

Speaker #1: What we did see in this early adoption phase, and this is really as there's a lot of things to work on as the volumes are coming through pharmacy, there was a little bit more of a focus on getting the PayGo pumps out the door.

Speaker #1: So thinking about bringing those new patients into the family who really want a pump. And for patients who are already ordering supplies from us through DME who are happy customers, no rush to push them through.

Speaker #1: A lot of it's a balancing act because all of this takes physicians' time to write new prescriptions. And so as we get the workflows going and the efficiencies driving, we'll continue to push on those conversions of existing customers.

Leigh Vosseller: As we get the workflows going and the efficiencies driving, we'll continue to push on those conversions of existing customers. The pump adoption slightly outpaced, I would call the patient conversion or adoption that you have there on the supply side. We expect that may continue into Q3, but that it will really start to change as we get into Q4 and going into next year when we have that co-pay assistance to help people, especially when they usually meet those deductible resets in Q1.

Speaker #1: So the pump adoption slightly outpaced, I would call, the patient conversion or adoption that you have there on the supply side. And we expect that may continue into the third quarter, but that it will really start to change as we get into the fourth quarter and going into next year when we have that copay assistance to help people, especially when they usually meet those deductible resets in the first quarter.

Speaker #4: Perfect. Thank you.

Jonathan Block: Perfect. Thank you.

Speaker #3: Thank you. As a reminder, ladies and gentlemen, if you do have a question at this time, please press star 11 on your telephone. Our next question comes to the line of Dane Reinhardt from R&W Baird.

Operator 2: Thank you. As a reminder, ladies and gentlemen, if you do have a question at this time, please press *11 on your telephone. Our next question comes to the line of Dane Reinhardt from R.W. Baird. Your question please.

Operator: Thank you. As a reminder, ladies and gentlemen, if you do have a question at this time, please press *11 on your telephone. Our next question comes to the line of Dane Reinhardt from R.W. Baird. Your question please.

Speaker #3: Your question, please.

Speaker #5: Hey, John. Leigh, thanks for the time and questions here. Just one quick one. I mean, it's been a few quarters now since you've kind of had that type two label expansion.

Dane Reinhardt: Hey, John, Leigh. Thanks for the time and questions here. Just one quick one. It's been a few quarters now since you've kind of had that type 2 label expansion. I think you're a few quarters in now as well to really pushing with your sales force and having them go on kind of the full offense there. Just any indications of maybe what percentage of your new starts are type 2 right now, and just what you're seeing in that underlying market from an overall growth perspective. Thanks. Yeah, thanks, Dane. I think we've chosen to stay away from actually giving specific numbers about how we're doing. I think what we really want investors to focus on is the broader indications for adoption. I will say that you're right. Last year was kind of piloting to understand how.

Speaker #5: I think you're a few quarters in now as well to really pushing with your Salesforce and having them go on kind of the full offense there.

Speaker #5: So just any indications of maybe what percentage of your new starts are type two right now and just what you're seeing in that underlying market from an overall growth perspective?

Speaker #5: Thanks.

Speaker #4: Yeah. Thanks, Dane. I think we've chosen to stay away from actually giving specific numbers about how we're doing. And I think what we really want investors to focus on is the broader indications for adoption.

Speaker #4: And I will say that you're right. Last year was kind of a pilot to understand how this year would go. This year, we've really worked with the Salesforce in terms of—they have objectives around type 2 sales, etc.

John Sheridan: This year, we've really worked with the sales force in terms of they have objectives in terms of type 2 sales, et cetera. As I said, when you look at these indicators, they're all moving in a positive direction and we think that's going to drive growth over time. I mentioned the C-peptide decision. We expect that's going to be made this month. We expect it to be positive. We don't really know how that implementation will occur, but I think any steps in a positive direction will be good for people with type 2. Then we also have a number of structural things. We have FreeStyle Libre 3, which we know is something that's going to drive. It's a large market. It's under-penetrated. It's going to drive type 2 interest. Mobi Tubeless of course will, and so will the pharmacy access.

Speaker #4: And as I said, when you look at these indicators, they're all moving in a positive direction. And we think that's going to drive growth over time.

Speaker #4: And I mentioned the CPEP type decision. We expect that's going to be made this month. We expect it to be positive. We don't really know how that implementation will occur, but I think any steps in a positive direction will be good for people with type two.

Speaker #4: And then we also have a number of just structural things, like we have Freestyle Libre 3, which we know is something that's going to drive.

Speaker #4: It's a large market. It's underpenetrated. It's going to drive type 2 interest. Mobi Tubeless, of course, will, and so will the pharmacy access. So I think there's a lot of things that we've got lined up that are all going to have a favorable effect.

John Sheridan: I think there's a lot of things that we've got lined up that are all going to have a favorable effect. I think we've chosen not to speak directly about the numbers at this point in time. Thank you.

Speaker #4: But I think we've chosen not to speak directly about the numbers at this point in time. So thank you.

Speaker #3: Thank you. This does conclude the question and answer session, as well as today's program. Thank you, ladies and gentlemen, for your participation in today's conference.

Operator 2: Thank you. This does conclude the question and answer session as well as today's program. Thank you, ladies and gentlemen, for your participation in today's conference. You may now disconnect. Good day.

Operator: Thank you. This does conclude the question and answer session as well as today's program. Thank you, ladies and gentlemen, for your participation in today's conference. You may now disconnect. Good day.

Q2 2026 Tandem Diabetes Care Inc Earnings Call

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