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1. Company Snapshot

1.a. Company Description

Tandem Diabetes Care, Inc., a medical device company, designs, develops, and commercializes various products for people with insulin-dependent diabetes in the United States and internationally.The company's flagship product is the t:slim X2 insulin delivery system, a pump platform that comprises t:slim X2 pump, its 300-unit disposable insulin cartridge, and an infusion set.It also provides t:slim X2 insulin with Basal-IQ and control IQ technology; t:slim X2 with G5 Integration; and Tandem Device Updater, a tool that allows users to update their pump's software.


In addition, the company offers t:connect, a web-based data management application, which provides a visual way to display diabetes therapy management data from the pump, continuous glucose monitoring, and supported blood glucose meters for users, their caregivers, and their healthcare providers; and Sugarmate, a mobile app for people with diabetes who use insulin.It has development and commercialization agreements with Dexcom, Inc.and Abbott Laboratories.


The company was formerly known as Phluid Inc.and changed its name to Tandem Diabetes Care, Inc.in January 2008.


Tandem Diabetes Care, Inc.was incorporated in 2006 and is headquartered in San Diego, California.

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1.b. Last Insights on TNDM

Tandem Diabetes Care, Inc.'s recent performance has been impacted by allegations of issuing materially misleading business information, leading to investigations by law firms, including Rosen Law Firm and Schall Law Firm. The company's Q3 2025 earnings call and report showed a quarterly loss of $0.31 per share, in line with expectations. Despite this, the company's revenue beat estimates. However, the ongoing investigations and resulting uncertainty have likely affected investor sentiment. Tandem's management team, including CEO John Sheridan, has not commented on these allegations.

1.c. Company Highlights

2. Tandem Diabetes Care Delivers Record Q3 Sales with Strategic Milestones

Tandem Diabetes Care reported a strong third quarter in 2025, with revenue reaching $249 million, setting a new record for the company. The top-line outperformance was primarily driven by ASP increases on both pumps and supplies in the U.S. as well as favorable foreign currency dynamics. Gross margin for the quarter stood at 54%, increasing approximately 3 percentage points year-over-year. The company's EPS came in at -$0.31, in line with analyst estimates. The financial performance indicates a positive trend, with the company's strategic initiatives starting to bear fruit.

Publication Date: Nov -10

📋 Highlights
  • Record Q3 Revenue:: Achieved $249 million in revenue, driven by ASP increases and favorable currency dynamics.
  • U.S. Sales Growth:: U.S. revenue reached $176 million, a record Q3 high, with over 20,000 pump shipments.
  • International Expansion:: Non-U.S. sales hit $74 million, led by preparations for direct operations in Europe starting 2026.
  • Gross Margin Improvement:: Q3 gross margin rose to 54%, with a target of 60% by Q4 2026 due to cost reductions and pricing.
  • Mobi Innovations:: Awaiting FDA clearance for Mobi Control app (Android) and planning Mobi Tubeless launch in 2026 with 7-day wear.

Business Initiatives and Progress

The company is focusing on three primary initiatives: modernization of commercial operations, driving innovation, and reshaping the business model. In the U.S., commercial changes implemented throughout the year are beginning to show measurable benefits, with pump shipments meeting expectations. Outside the U.S., preparations for direct operations in Europe are on track, with plans to begin in the U.K., Switzerland, and Austria in early 2026. The company's innovation drive includes awaiting FDA clearance for the Mobi Control app for Android and the launch of t:slim X2 with Abbott's FreeStyle Libre 3 Plus integration in the U.S.

Guidance and Outlook

Tandem is reaffirming its 2025 gross margin expectation in the range of 53% to 54% of sales, with Q4 expected to be an all-time gross margin record in the mid- to high 50s. The company is also reaffirming its adjusted EBITDA expectations of negative 5% of sales. For 2026, Tandem anticipates driving further market expansion, increasing contribution from renewals, and growth from direct operations. The company is guiding for a gross margin of at least 60% in Q4 2026, driven by lower product costs as Mobi scales and pricing contribution.

Valuation and Metrics

With a P/S Ratio of 1.09, the stock appears to be reasonably valued relative to its sales. However, the EV/EBITDA ratio stands at -7.93, indicating that the company's current valuation may not be entirely justified by its current profitability. The ROE and ROIC are negative, reflecting the company's current loss-making position. As Tandem moves forward with its strategic initiatives and aims for long-term double-digit growth, investors will be watching key metrics such as gross margin expansion and the successful launch of new products like Mobi Tubeless.

3. NewsRoom

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Rosen Law Firm Encourages Tandem Diabetes Care, Inc. Investors to Inquire About Securities Class Action Investigation - TNDM

Dec -03

Source: prnewswire.com

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ROSEN, LEADING INVESTOR COUNSEL, Encourages Tandem Diabetes Care, Inc. Investors to Inquire About Securities Class Action Investigation - TNDM

Dec -02

Source: newsfilecorp.com

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ROSEN, NATIONAL TRIAL COUNSEL, Encourages Tandem Diabetes Care, Inc. Investors with Losses in Excess of $100K to Inquire About Securities Class Action Investigation - TNDM

Dec -01

Source: newsfilecorp.com

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TNDM Investor News: If You Have Suffered Losses in Tandem Diabetes Care, Inc. (NASDAQ: TNDM), You Are Encouraged to Contact The Rosen Law Firm About Your Rights

Nov -30

Source: globenewswire.com

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ROSEN, TRUSTED INVESTOR COUNSEL, Encourages Tandem Diabetes Care, Inc. Investors with Losses in Excess of $100K to Inquire About Securities Class Action Investigation - TNDM

Nov -29

Source: newsfilecorp.com

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Rosen Law Firm Encourages Tandem Diabetes Care, Inc. Investors to Inquire About Securities Class Action Investigation - TNDM

Nov -28

Source: prnewswire.com

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TNDM Investor News: If You Have Suffered Losses in Tandem Diabetes Care, Inc. (NASDAQ: TNDM), You Are Encouraged to Contact The Rosen Law Firm About Your Rights

Nov -27

Source: globenewswire.com

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ROSEN, RECOGNIZED INVESTOR COUNSEL, Encourages Tandem Diabetes Care, Inc. Investors to Inquire About Securities Class Action Investigation - TNDM

Nov -26

Source: newsfilecorp.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.74%)

6. Segments

Supplies and Other

Expected Growth: 8%

Tandem Diabetes Care's Supplies and Other segment growth of 8% is driven by increasing adoption of t:slim X2 insulin pumps, expansion of sales channels, and growing demand for diabetes management solutions. Additionally, the company's focus on customer loyalty and retention programs, as well as strategic partnerships, contribute to the segment's growth.

Pump

Expected Growth: 12%

Tandem Diabetes Care's 12% growth is driven by increasing adoption of its t:slim X2 insulin pump, strong sales of its Basal-IQ technology, and expanding market share in the insulin pump market. Additionally, the company's focus on innovation, customer loyalty, and strategic partnerships contribute to its growth momentum.

Deferral for Tandem Choice Program

Expected Growth: 6%

The 6% growth of Deferral for Tandem Choice Program is driven by increasing adoption of insulin pumps, rising diabetes prevalence, and growing demand for user-friendly diabetes management systems. Additionally, Tandem Diabetes Care's strategic partnerships, expanding product portfolio, and favorable reimbursement policies contribute to the growth.

Pump Rebate

Expected Growth: 4%

Tandem Diabetes Care, Inc.'s Pump Rebate growth is driven by increasing adoption of insulin pumps, rising diabetes prevalence, and growing demand for convenient and discreet diabetes management solutions. Additionally, the company's innovative products, such as the t:slim X2 insulin pump, and strategic partnerships are contributing to the growth.

7. Detailed Products

t:slim X2

A touchscreen insulin pump that is small, durable, and waterproof, with a rechargeable battery that can last up to 7 days.

t:flex

A high-capacity insulin pump that holds up to 480 units of insulin, with a rechargeable battery that can last up to 15 days.

Basal-IQ Technology

A predictive low glucose suspend feature that can automatically suspend insulin delivery when glucose levels are predicted to go low.

Control-IQ Technology

An advanced hybrid closed-loop system that automatically adjusts insulin delivery based on glucose levels, trends, and other factors.

t:connect Mobile App

A mobile app that allows users to view their diabetes data, track their glucose levels, and receive notifications and alerts.

t:connect Web Application

A web-based platform that allows users to view their diabetes data, track their glucose levels, and receive notifications and alerts.

8. Tandem Diabetes Care, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Tandem Diabetes Care, Inc. faces moderate threat from substitutes, as patients may opt for alternative treatments or insulin pumps from competitors.

Bargaining Power Of Customers

Customers have limited bargaining power due to the specialized nature of Tandem Diabetes Care, Inc.'s products and the lack of substitutes.

Bargaining Power Of Suppliers

Suppliers of components and materials have moderate bargaining power, as Tandem Diabetes Care, Inc. relies on a few key suppliers for critical components.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry, including regulatory hurdles and the need for significant investments in research and development.

Intensity Of Rivalry

The insulin pump market is highly competitive, with several established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 57.00%
Debt Cost 3.95%
Equity Weight 43.00%
Equity Cost 9.43%
WACC 6.30%
Leverage 132.53%

11. Quality Control: Tandem Diabetes Care, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 2.7/10

Value: 7.8

Growth: 3.6

Quality: 2.2

Yield: 0.0

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Quality: 3.4

Yield: 0.0

Momentum: 0.5

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

20.92$

Current Price

20.92$

Potential

-0.00%

Expected Cash-Flows