Tandem Diabetes Care (Nasdaq: TNDM) says U.S. sales of its insulin pumps were boosted by a scaled pay-as-you-go reimbursement model that’s been rolling out this year.
According to the San Diego–based company’s second-quarter report, released after market close yesterday, the alternative reimbursement structure, available through patients’ pharmacy benefits rather than medical benefits, eliminates upfront pump reimbursement. According to Tandem Diabetes Care, the adoption of the new model resulted in a decrease in pump average selling prices that was more than offset by a corresponding increase in supply prices, boosting the pharmacy channel’s share of revenue to 10% in Q2.
“During the second quarter, 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. We are encouraged with the momentum behind this transition and beginning to see efficiencies that are positively contributing to our results,” CEO John Sheridan said during the company’s earnings call yesterday evening.
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Other important developments at Tandem include modernizing its commercial organization to improve productivity and support profitable growth, according to Sheridan. (The company let go of its chief commercial officer in May.) During the second quarter, there was also the promised FDA 510(k) submission for Tandem Mobi tubeless capability.
For the quarter ended June 30, 2026, Tandem Diabetes Care lost $21.2 million, or 31¢ per share, off of $254.6 million in revenue. The loss was less than half the loss of $52.4 million, or 78¢ per share, seen in Q2 2025. Sales were up 5.8%.
The results were roughly in line with the expectations of Wall Street analysts.
Other Tandem Diabetes Care news in the second quarter of 2026 included:
- FDA clearance and CE mark for pregnant patients to use Control-IQ+ automated insulin delivery technolog, as well as a CE mark for use of the technology by adults with type 2 diabetes;
- Launched compatibility with the Dexcom G7 15-day sensor for both t:slim X2 and Tandem Mobi in the U.S.;
- Rolled out t:slim X2 compatibility with the Abbott FreeStyle Libre 3 Plus Sensor in four European markets;
- Began Tandem Mobi’s international commercial rollout.
Tandem Diabetes Care is reaffirming its full-year 2026 guidance of $1.065–1.085 billion in sales.
Investors appear to have wanted more. TNDM shares were down more than 6% to $17.60 apiece in pre-market trading.
Said Sheridan: “The second quarter marked an important step forward for Tandem. We are executing against our strategic priorities while demonstrating operational momentum, improving our financial performance, and providing broader access to our technology.”
