What changed in this filing

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Item 1. Financial Statements

2026-08-06 compared with 2026-05-07 · 206 added, 115 removed, 560 unchanged (36% of the section changed)

3 unchanged sentences

(In thousands, except par value)

March 31, December 31,

June 30, December 31,

Assets (Unaudited) (Note 1)

8 unchanged sentences

Operating lease right-of-use assets 100,185 96,172

Equity method investments

56,486 60,351

Equity method investment 132,271 60,351

Other long-term assets 32,606 22,866

17 unchanged sentences

Common stock, $ 0.001 par value;

200,000 shares authorized, 68,504 and 68,291 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively

200,000 shares authorized, 69,540 and 68,291 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively

Additional paid-in capital 1,418,011 1,402,044

7 unchanged sentences

(In thousands, except per share data)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Sales $ 254,560 $ 240,678 $ 501,781 $ 475,100

5 unchanged sentences

Acquired in-process research and development expenses — — — 75,217

Litigation and settlement expense

— 19,951 — 19,951

Total operating expenses 158,572 177,665 312,794 416,950

3 unchanged sentences

Interest income and other income, net

Interest expense ( 2,204 ) ( 1,862 )

Loss from equity method investments

1,225 ( 632 ) 4,851 3,561

Interest expense ( 2,450 ) ( 1,905 ) ( 4,654 ) ( 3,767 )

Loss from equity method investment ( 5,641 ) ( 3,375 ) ( 9,506 ) ( 6,917 )

Total other income (expense), net ( 6,866 ) ( 5,912 ) ( 9,309 ) ( 7,123 )

1 unchanged sentence

( 20,658 ) ( 57,722 ) ( 40,535 ) ( 179,811 )

Income tax expense

Income tax expense (benefit) 510 ( 5,322 ) 1,026 3,145

$ ( 21,168 ) $ ( 52,400 ) $ ( 41,561 ) $ ( 182,956 )

2 unchanged sentences

$ ( 692 ) $ ( 98 ) $ ( 1,719 ) $ 325

Unrealized gain on cash flow hedges

Foreign currency translation gains (losses)

( 1,224 ) 1,599

Unrealized gain (loss) on cash flow hedges 716 ( 612 ) 2,418 ( 612 )

Foreign currency translation gains 1,335 4,380 111 5,979

Comprehensive loss

8 unchanged sentences

(In thousands)

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Common Stock Additional

5 unchanged sentences

Shares Amount

Balance at March 31, 2026 68,504 $ 69 $ 1,400,218 $ 5,044 $ ( 1,272,928 ) $ 132,403

Exercise of stock options 2 — 29 — — 29

Vesting of restricted stock units, net of shares withheld for taxes 493 — ( 3,769 ) — — ( 3,769 )

Issuance of common stock for Employee Stock Purchase Plan 541 1 5,893 — — 5,894

Stock-based compensation expense — — 15,640 — — 15,640

Unrealized loss on short-term investments

— — — ( 692 ) — ( 692 )

Unrealized gain on cash flow hedges

— — — 716 — 716

Foreign currency translation gains — — — 1,335 — 1,335

Net loss — — — — ( 21,168 ) ( 21,168 )

Balance at June 30, 2026

69,540 $ 70 $ 1,418,011 $ 6,403 $ ( 1,294,096 ) $ 130,388

Six Months Ended June 30, 2026

Common Stock Additional

Capital Accumulated

Comprehensive

Income (Loss)

Deficit Total

Stockholders’

Shares Amount

Balance at December 31, 2025 68,291 $ 68 $ 1,402,044 $ 5,593 $ ( 1,252,535 ) $ 155,170

1 unchanged sentence

Vesting of restricted stock units, net of shares withheld for taxes 665 1 ( 6,176 ) — — ( 6,175 )

Issuance of common stock under Employee Stock Purchase Plan 541 1 5,893 — — 5,894

Stock-based compensation expense — — 30,811 — — 30,811

2 unchanged sentences

Unrealized loss on short-term investments — — — ( 1,719 ) — ( 1,719 )

— — — ( 1,027 ) — ( 1,027 )

Unrealized gain on cash flow hedges — — — 2,418 — 2,418

— — — 1,702 — 1,702

Foreign currency translation losses

Foreign currency translation gains

— — — 111 — 111

Net loss — — — — ( 41,561 ) ( 41,561 )

Balance at June 30, 2026

69,540 $ 70 $ 1,418,011 $ 6,403 $ ( 1,294,096 ) $ 130,388

See accompanying notes to unaudited condensed consolidated financial statements.

Three Months Ended June 30, 2025

Common Stock Additional

Capital Accumulated

Comprehensive

Income (Loss)

Deficit Total

Stockholders’

Shares Amount

Balance at March 31, 2025 66,568 $ 67 $ 1,333,531 $ 75 $ ( 1,178,381 ) $ 155,292

Exercise of stock options 10 — 171 — — 171

Vesting of restricted stock units, net of shares withheld for taxes 502 1 ( 6,320 ) — — ( 6,319 )

Issuance of common stock for Employee Stock Purchase Plan 451 — 7,194 — — 7,194

Stock-based compensation expense — — 25,675 — — 25,675

Unrealized loss on short-term investments — — — ( 98 ) — ( 98 )

Unrealized loss on cash flow hedges — — — ( 612 ) — ( 612 )

Foreign currency translation gains

— — — 4,380 — 4,380

Three Months Ended March 31, 2025

Net loss — — — — ( 52,400 ) ( 52,400 )

Balance at June 30, 2025

67,531 $ 68 $ 1,360,251 $ 3,745 $ ( 1,230,781 ) $ 133,283

See accompanying notes to unaudited condensed consolidated financial statements.

Six Months Ended June 30, 2025

Common Stock Additional

8 unchanged sentences

Vesting of restricted stock units, net of shares withheld for taxes 763 1 ( 11,708 ) — — ( 11,707 )

Issuance of common stock under Employee Stock Purchase Plan 451 1 7,194 — — 7,195

Stock-based compensation expense — — 51,090 — — 51,090

Unrealized gain on short-term investments — — — 325 — 325

— — — 423 — 423

Unrealized loss on cash flow hedges — — — ( 612 ) — ( 612 )

Foreign currency translation gains

1 unchanged sentence

Net loss — — — — ( 182,956 ) ( 182,956 )

Balance at March 31, 2025

Balance at June 30, 2025

67,531 $ 68 $ 1,360,251 $ 3,745 $ ( 1,230,781 ) $ 133,283

3 unchanged sentences

(In thousands)

Three Months Ended March 31,

Six Months Ended June 30,

Operating Activities

6 unchanged sentences

Amortization of discount or (accretion of premium) on short-term investments ( 1,821 ) ( 1,780 )

Loss from equity method investments 3,865 3,542

Loss from equity method investment 9,506 6,917

Stock-based compensation expense 31,400 51,130

11 unchanged sentences

Other long-term liabilities ( 3,280 ) 4,851

Net cash provided by (used in) operating activities 11,054 ( 18,278 )

Net cash used in operating activities ( 23,576 ) ( 27,774 )

Investing Activities

3 unchanged sentences

Acquisition of in-process research and development — ( 43,464 )

Purchases of equity investments, strategic investments, and intangible assets

Net cash provided by (used in) investing activities ( 282,784 ) 67,316

1 unchanged sentence

Proceeds from issuance of convertible senior notes due 2032, net of $ 8,843 debt issuance costs

Principal payments on convertible senior notes due 2025 — ( 40,760 )

Payment for capped call transactions related to convertible senior notes due 2032

2 unchanged sentences

Effect of foreign exchange rate changes on cash 2,229 ( 263 )

Net increase (decrease) in cash and cash equivalents 88,691 ( 15,660 )

Net decrease in cash and cash equivalents ( 27,816 ) ( 5,122 )

Cash and cash equivalents at beginning of period 90,634 69,234

7 unchanged sentences

Intangible costs in other long-term liabilities

$ 13,300 $ 13,300

See accompanying notes to unaudited condensed consolidated financial statements.

9 unchanged sentences

In support of this strategy, the Company’s pump platforms include t:slim X2 and Tandem Mobi (Mobi).

Both pumps feature Control-IQ+ technology, which is the Company’s most advanced algorithm for managing insulin delivery, using information received from integrated continuous glucose monitoring (CGM) sensors.

Both pumps feature Control-IQ+ technology, which is the Company’s most advanced algorithm for managing insulin delivery, using information received from compatible continuous glucose monitoring (CGM) sensors.

New software for the insulin pumps may be updated remotely by the individual users as new advancements become available.

14 unchanged sentences

All significant intercompany balances and transactions have been eliminated in consolidation.

The functional currency of the Company’s foreign subsidiaries is their respective local currency.

The functional currency of each of the Company’s foreign subsidiaries is its respective local currency.

The Company translates the financial statements of its foreign subsidiaries into U.S.

3 unchanged sentences

Summary of Significant Accounting Policies

There have been no material changes to the Company’s significant accounting policies during the three months ended March 31, 2026, as compared to those disclosed in the Annual Report.

There have been no material changes to the Company’s significant accounting policies during the six months ended June 30, 2026, as compared to those disclosed in the Annual Report.

Use of Estimates

17 unchanged sentences

Amortization of finite-lived intangible assets is recognized over their estimated useful lives using a straight-line or accelerated attribution method, depending on the economic benefit associated with the asset.

In the second quarter 2025, the Company and various Roche entities (collectively, Roche) entered into a Settlement, Mutual Release and Cross-License Agreement (the Settlement Agreement).

The Settlement Agreement resolved all actual or potential patent disputes as of the agreement date, including the actions pending before courts of the Unified Patent Court in France and Germany.

Under the terms of the Settlement Agreement, the Company agreed to pay Roche $ 36.0 million over a four-year period, with an initial cash payment of $ 8.0 million and four equal annual installments thereafter.

Based on a relative fair value approach, $ 13.3 million was capitalized as an intangible asset for the value of the license, which is being amortized over seven years , reflecting the estimated useful life of the acquired patents.

The remaining consideration was expensed as settlement and litigation expense with related legal fees during the second quarter 2025.

The Company paid its second annual payment of $ 7.0 million during the second quarter 2026.

Impairment of Long-Lived Assets

2 unchanged sentences

If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value.

Fair value is determined using unobservable (Level 3) inputs, including discounted cash flow models, future estimated sublease income, and third-party independent appraisals, as considered necessary.

Fair value is determined using unobservable (Level 3) inputs (see Note 5 “Fair Value Measurements”), including discounted cash flow models, future estimated sublease income, and third-party independent appraisals, as considered necessary.

There is uncertainty in the projected undiscounted future cash flows used in the Company’s impairment review analysis, which requires the use of estimates and assumptions.

1 unchanged sentence

The Company recognized the impairment of operating lease right-of-use assets in the first quarter of 2025 (see Note 6, “Leases”).

There were no other impairments of long-lived assets, including acquired intangible assets, during the three months ended March 31, 2026 and 2025.

Equity Method Investments

The Company held equity method investments of $ 56.5 million and $ 60.4 million as of March 31, 2026 and December 31, 2025, respectively.

There were no other impairments of long-lived assets, including acquired intangible assets, during the three and six months ended June 30, 2026 and 2025.

Equity Method Investment

The Company uses the equity method to account for investments in companies if it owns more than 20% of the investee company’s outstanding equity or the investment provides the Company with the ability to exercise significant influence but not control over the operating and financial policies of the investee.

1 unchanged sentence

The Company may also consider additional relevant factors, such as the presence of other business relationships.

The Company held an equity method investment in CeQur SA (CeQur), a privately held company, of $ 132.3 million and $ 60.4 million as of June 30, 2026 and December 31, 2025, respectively.

On May 22, 2026, the Company made an additional investment in CeQur of CHF 64.0 million ($ 81.4 million USD), remaining at an ownership level of less than 50 %.

The Company continues to account for the investment under the equity method.

The additional investment was recorded as an increase to the carrying value of the existing equity method investment.

In connection with the additional investment, the Company obtained, for an immaterial amount, the option to acquire the remainder of CeQur’s shares no earlier than 2028 at its sole discretion.

In the event the option is exercised, the price to be paid will be calculated using a predetermined market-based formula.

The Company recorded this call option in other long-term assets on the condensed consolidated balance sheets.

The call option does not meet the criteria for derivative accounting.

Equity method investments are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable.

No impairment charges were recognized for equity method investments during the three months ended March 31, 2026.

The Company’s condensed consolidated net loss included its proportionate share of the net loss of its equity method investee, which was $ 3.9 million and $ 3.5 million for the three months ended March 31, 2026 and 2025, respectively.

No impairment charges were recognized for the equity method investment during the three and six months ended June 30, 2026.

The Company’s condensed consolidated net loss included its proportionate share of the net loss of its equity method investee, which was $ 5.6 million and $ 9.5 million for the three and six months ended June 30, 2026, respectively, and $ 3.4 million and $ 6.9 million for the three and six months ended June 30, 2025, respectively.

Revenue Recognition

12 unchanged sentences

Accordingly, revenue related to these complementary products is deferred and recognized over the period of the performance obligation according to the agreement.

The Company allocates the transaction price to each individual performance obligations based on the standalone selling price.

The Company allocates the transaction price to each individual performance obligation based on the standalone selling price.

For the pay-as-you-go reimbursement model, the Company allocates a portion of the transaction price associated with the customer’s initial supply order to the pump based on its relative standalone selling price.

When standalone selling prices are not directly observable, the Company estimates such amounts using an expected cost plus a margin approach and allocates any residual consideration to the remaining performance obligations, as appropriate.

24 unchanged sentences

In addition, the availability of replacement data may differ by country due to local compliance and privacy regulations, which may require the Company to estimate its warranty liability using available information or data from similar markets.

The Company may further adjust the warranty reserve when appropriate, considering revised expectations of product performance based on enhanced hardware, or new features and capabilities that may become available through Tandem Device Updater.

Warranty expense is recorded as a component of cost of sales in the consolidated statements of operations.

The following table provides a reconciliation of the changes in product warranty liabilities for the three months ended March 31, 2026, and 2025 (in thousands):

Three Months Ended March 31,

The following table provides a reconciliation of the changes in product warranty liabilities for the three and six months ended June 30, 2026 and 2025 (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Balance at beginning of the period $ 55,112 $ 52,210 $ 55,319 $ 51,408

2 unchanged sentences

Increases in warranty estimates

— 1,645 — 2,021

Balance at end of the period $ 54,765 $ 54,203 $ 54,765 $ 54,203

As of March 31, 2026 and 2025, total product warranty reserves were included in the following consolidated balance sheet accounts (in thousands):

March 31, 2026 December 31, 2025

As of June 30, 2026 and December 31, 2025, total product warranty reserves were included in the following consolidated balance sheet accounts (in thousands):

June 30, 2026 December 31, 2025

Other current liabilities $ 32,962 $ 33,277

4 unchanged sentences

The Company estimates the fair value of employee purchase rights under the Company’s Employee Stock Purchase Plan (ESPP) using the Black-Scholes option pricing model on the date of grant.

The Black-Scholes option pricing model requires the use of assumptions about a number of variables, including stock price volatility, expected term, dividend yield and risk-free interest rate.

The Black-Scholes option pricing model requires the use of assumptions, including stock price volatility, expected term, dividend yield and risk-free interest rate.

The fair value of restricted stock unit (RSU) awards issued under the Company’s stock incentive plans that vest solely based on service, is estimated based on the fair market value of the underlying stock on the date of grant.

The fair value of RSU awards that vest based upon predefined Company performance metrics and the awardee’s continuing service through the measurement date is generally estimated based on the fair market value of the underlying stock on the date of grant and the probability that the specified performance criteria will be met.

These awards vest upon the Company’s actual performance relative to predefined performance metrics and subject to the awardee’s continuous service through the respective measurement dates as defined in the award agreements.

At each reporting period, the Company reassesses the probability of the achievement of such performance metrics.

Any expense change resulting from an adjustment in the estimated shares to be released is recorded in the period of adjustment.

The fair value of RSU awards that vest based upon predefined Company performance metrics and the awardee’s continuing service through the measurement date is generally estimated based on the fair market value of the underlying stock on the grant date and the estimated probability of achieving the applicable performance conditions.

The Company reassesses the probability of achieving such performance conditions each reporting period, and any resulting adjustment to compensation expense is recognized in the period of change.

For certain performance-based RSUs with market-based criteria, the Company uses a Monte Carlo methodology to estimate the fair value at the date of grant.

4 unchanged sentences

Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding, including all potentially dilutive common share equivalents.

Dilutive common share equivalents are comprised of stock options and unvested RSUs outstanding under the Company’s stock incentive plans, potential awards to be granted pursuant to the ESPP, and common stock warrants, each calculated using the treasury stock method, and shares issuable upon conversion of the convertible senior notes calculated using the if-converted method.

For the three months ended March 31, 2026, and 2025, there was no difference in the weighted average number of shares used to calculate basic and diluted net loss per share due to the Company’s net loss position in each period.

Dilutive common share equivalents are comprised of stock options and unvested RSUs outstanding under the Company’s stock incentive plans, potential awards to be granted pursuant to the ESPP, and common stock warrants, each calculated using the treasury stock method, and shares issuable upon conversion of the Company’s convertible senior notes calculated using the if-converted method.

For the three and six months ended June 30, 2026 and 2025, there was no difference in the weighted average number of shares used to calculate basic and diluted net loss per share due to the Company’s net loss position in each period.

The number of common share equivalents excluded from the computation of diluted earnings per share because either the effect would have been anti-dilutive, or the performance criteria related to the units had not yet been met, are as follows (in thousands):

Three Months Ended

June 30, Six Months Ended June 30,

2026 2025 2026 2025

Options to purchase common stock 80 113 89 114

5 unchanged sentences

Recently Adopted Accounting Pronouncements

In September 2025, the FASB issued ASU 2025-06 Intangibles–Goodwill and Other–Internal-Use Software (Subtopic 350-40):

In September 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2025-06 Intangibles–Goodwill and Other–Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06), which modernizes the accounting guidance for internal-use software, including website development costs.

24 unchanged sentences

The Company invests in marketable securities primarily consisting of debt instruments of the United States Government, United States Government-sponsored enterprises, and financial institutions and corporations with strong credit ratings.

The following represents a summary of the estimated fair value of short-term investments as of March 31, 2026 and December 31, 2025 (in thousands):

As of March 31, 2026

The following represents a summary of the estimated fair value of short-term investments as of June 30, 2026 and December 31, 2025 (in thousands):

As of June 30, 2026 Amortized

Cost Gross Unrealized

17 unchanged sentences

Total $ 201,079 $ 963 $ ( 10 ) $ 202,032

The contractual maturities of available-for-sale debt securities as of March 31, 2026, were as follows (in thousands):

The contractual maturities of available-for-sale debt securities as of June 30, 2026 were as follows (in thousands):

Years to Maturity

As of March 31, 2026

Within One Year One to Two Years Two to Three Years

As of June 30, 2026 Within One Year One to Two Years Two to Three Years

Estimated Fair Value

8 unchanged sentences

Accounts Receivable

Accounts receivable, net consisted of the following as of March 31, 2026 and 2025 (in thousands):

March 31, December 31,

Accounts receivable, net consisted of the following as of June 30, 2026 and December 31, 2025 (in thousands):

June 30, December 31,

Accounts receivable $ 169,958 $ 173,884

2 unchanged sentences

Allowance for Credit Losses

The following table provides a reconciliation of the changes in the allowance for estimated accounts receivable credit losses for the three months ended March 31, 2026 and 2025 (in thousands):

The following table provides a reconciliation of the changes in the allowance for estimated accounts receivable credit losses for the three and six months ended June 30, 2026 and 2025 (in thousands):

Three Months Ended

June 30, Six Months Ended June 30,

2026 2025 2026 2025

Balance at beginning of the period $ 6,912 $ 7,125 $ 8,393 $ 7,251

2 unchanged sentences

Balance at end of the period $ 7,893 $ 6,095 $ 7,893 $ 6,095

Inventories consisted of the following as of March 31, 2026 and 2025 (in thousands):

March 31, December 31,

Inventories consisted of the following as of June 30, 2026 and December 31, 2025 (in thousands):

June 30, December 31,

Raw materials $ 37,162 $ 31,770

11 unchanged sentences

Short-term investments are carried at fair value.

The following table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2026 and December 31, 2025, and indicates the fair value hierarchy of the valuation techniques used by the Company to determine such fair value (in thousands):

The following table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2026 and December 31, 2025, and indicates the fair value hierarchy of the valuation techniques used by the Company to determine such fair value (in thousands):

Fair Value Measurements as of

March 31, 2026

June 30, 2026

Total Level 1 Level 2 Level 3

32 unchanged sentences

These contracts are marked-to-market by recognizing the difference between the contract forward exchange rate and the forward market exchange rate.

There were no transfers into or out of Level 3 assets during the three months ended March 31, 2026 and 2025, respectively.

There were no transfers into or out of Level 3 assets during the three and six months ended June 30, 2026 and 2025.

Fair Value of Convertible Senior Notes

The Company’s convertible senior notes are carried at amortized cost on the consolidated balance sheets (see Note 7, “Debt”).

The Company estimated the fair value of its convertible senior notes based on Level 2 quoted market prices as follows (in thousands):

As of June 30, 2026 and December 31, 2025, the Company estimated the fair value of its convertible senior notes based on Level 2 quoted market prices as follows (in thousands):

Fair Value Measurements as of

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Convertible Senior Notes due 2029

6 unchanged sentences

Headquarters Lease

In September 2021, the Company entered into a lease agreement for 181,949 square feet of general administrative, laboratory, and research and development office space (the Premises) located on High Bluff Drive in San Diego, California (Headquarters Lease).

In September 2021, the Company entered into a lease agreement for 181,949 square feet of general administrative, laboratory, and research and development office space located on High Bluff Drive in San Diego, California (Headquarters Lease).

The Headquarters Lease term expires in April 2035.

3 unchanged sentences

In the first quarter of 2025, the Company recorded operating lease impairment charges totaling $ 6.7 million in operating expenses.

This included $ 3.6 million impairment related to a portion of the Company’s headquarters lease in connection with its sublease agreement.

The impairment charge also included $ 3.1 million related to the transfer of certain development activities from Lausanne, Switzerland to the United States and changes in assumptions for estimated future sublease income for the Company’s Vista Sorrento lease.

This included a $ 3.6 million impairment related to a portion of the Headquarters Lease in connection with its sublease agreement.

Supplemental Lease Disclosure Information

The Company’s lease costs recorded in the consolidated statements of operations were as follows (in thousands):

Three Months Ended March 31,

The Company’s lease costs recorded in the consolidated statements of operations were as follows for the three and six months ended June 30, 2026 and 2025 (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Operating lease cost (excluding sublease income)

5 unchanged sentences

Total lease cost $ 3,651 $ 3,849 $ 7,344 $ 14,206

Maturities of operating lease liabilities as of March 31, 2026 were as follows (in thousands):

Maturities of operating lease liabilities as of June 30, 2026 were as follows (in thousands):

Years Ending December 31,

6 unchanged sentences

Operating lease liabilities - long-term $ 116,411

The weighted-average remaining lease term and weighted-average discount rate for operating leases were as follows:

March 31, 2026 December 31, 2025

The weighted-average remaining lease term and weighted-average discount rate for operating leases were as follows as of June 30, 2026 and December 31, 2025:

June 30, 2026 December 31, 2025

Weighted-average remaining lease term (in years) 8.6 8.6

25 unchanged sentences

The proceeds from the issuance of the 2032 Notes were $ 291.2 million, net of debt issuance costs.

The Company used approximately $ 15.3 million of the net proceeds from the fffering to pay the cost of the 2032 Capped Call Transactions discussed below.

The Company used approximately $ 15.3 million of the net proceeds from the offering to pay the cost of the 2032 Capped Call Transactions discussed below.

The 2032 Notes mature on March 15, 2032 unless repurchased, redeemed, or converted in accordance with their terms before the maturity date.

13 unchanged sentences

Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of common stock, or a combination of cash and shares of common stock, at the Company’s election, in the manner and subject to the terms and conditions provided in the indenture governing the 2032 Notes.

The net carrying amount of the Notes on the condensed consolidated balance sheets consisted of the following (in thousands):

March 31, 2026 December 31, 2025

The net carrying amount of the Notes on the condensed consolidated balance sheets consisted of the following as of June 30, 2026 and December 31, 2025 (in thousands):

June 30, 2026 December 31, 2025

Principal amount:

5 unchanged sentences

Long-term senior convertible notes $ 602,577 $ 310,036

As of March 31, 2026, the if-converted value of the 2029 and 2032 Notes did no t exceed the principal amount.

As of June 30, 2026, the if-converted value of the 2029 and 2032 Notes did no t exceed the principal amount.

As of December 31, 2025, the if-converted value of the 2029 Notes did not exceed the principal amount.

The following table summarizes the effective interest rates for each of our convertible senior notes for the periods shown:

Three Months Ended March 31,

No conversion features for the 2029 and 2032 Notes were triggered during the three and six months ended June 30, 2026.

The following table summarizes the effective interest rates for each of our convertible senior notes for the three and six months ended June 30, 2026 and 2025:

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Effective interest rate:

Convertible Senior Notes Due 2025

N/A 2.2 % N/A 2.2 %

Convertible Senior Notes Due 2029

2.1 % 2.1 % 2.1 % 2.1 %

Convertible Senior Notes Due 2032

The following table details interest expense related to the Notes recognized for the three months ended March 31, 2026, and 2025 (in thousands):

Three Months Ended March 31,

0.5 % N/A 0.5 % N/A

The following table details interest expense related to the Notes recognized for the three and six months ended June 30, 2026 and 2025 (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Contractual interest expense

13 unchanged sentences

Shares Reserved for Future Issuance

The following shares of the Company's common stock were reserved for future issuance as of March 31, 2026 (in thousands):

The following shares of the Company’s common stock were reserved for future issuance as of June 30, 2026 (in thousands):

Shares reserved for issuance upon conversion of convertible senior notes

1 unchanged sentence

Shares underlying outstanding stock options 2,584

Shares underlying unvested restricted stock units 3,272

Shares underlying unvested RSUs 4,843

Shares authorized for issuance pursuant to awards granted under the ESPP 1,393

1 unchanged sentence

Common Stock Warrants

Warrants outstanding to purchase shares of the Company's common stock as of March 31, 2026 are equity-classified and were as follows:

Warrants to purchase shares of the Company’s common stock outstanding as of June 30, 2026 are equity-classified and were as follows:

Issue Date Exercise Price Per Share Warrants Outstanding Expiration Date of Warrants Outstanding

2 unchanged sentences

Stock-Based Compensation

The following table summarizes the allocation of stock-based compensation expense included in the condensed consolidated statements of operations for all stock-based compensation arrangements (in thousands):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Cost of sales $ 974 $ 1,751 $ 2,357 $ 3,476

2 unchanged sentences

Total stock-based compensation expense $ 15,741 $ 25,642 $ 31,400 $ 51,130

The total stock-based compensation expense capitalized as part of the cost of the Company’s inventories was $ 0.5 million and $ 1.2 million as of March 31, 2026 and December 31, 2025, respectively.

The total stock-based compensation expense capitalized as part of the cost of the Company’s inventories was $ 0.6 million and $ 1.2 million as of June 30, 2026 and December 31, 2025, respectively.

Restricted Stock Units

Restricted stock units (RSUs) generally have a grant value equal to the closing price of the Company’s common stock on the award date.

The total number of RSUs granted and the respective weighted average grant date fair value were as follows:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

RSUs granted 2,457,098 1,953,827 2,619,630 2,044,370

Weighted average grant date fair value (per share) $ 17.09 $ 20.77 $ 17.33 $ 21.06

Due to the global nature of the Company’s operations, a portion of its revenue and operating expense are denominated in currencies other than the U.S.

Employee Stock Purchase Plan

The Company records stock-based compensation expense associated with the ESPP using the Black-Scholes option pricing model.

Valuations are performed on the grant date at the beginning of the purchase period, which generally occurs in May and November of each year.

The assumptions used in the Black-Scholes option pricing model for the ESPP were as follows for the six months ended June 30, 2026 and 2025:

Six Months Ended June 30,

Weighted average grant date fair value (per share) $ 6.45 $ 10.86

Risk-free interest rate 3.9 % 4.1 %

Dividend yield 0.0 % 0.0 %

Expected volatility 75.9 % 74.9 %

Expected term (in years) 1.3 1.3

Due to the global nature of the Company’s operations, a portion of its operating activities are denominated in currencies other than the U.S.

dollar, exposing the Company to foreign currency exchange rate fluctuations.

To mitigate the impact of these fluctuations, the Company uses foreign currency forward contracts to hedge a portion of its forecasted international revenue and operating expense.

The Company’s foreign currency forward contracts are denominated primarily in Euros, Canadian dollars and Swiss francs (CHF).

As of March 31, 2026, the Company’s outstanding foreign currency forward contracts settle within one year.

To mitigate the impact of these fluctuations, the Company uses foreign currency forward contracts to hedge a portion of its forecasted international revenue, operating expense and cost of sales.

As of June 30, 2026, the Company’s outstanding foreign currency forward contracts settle within one year.

These contracts are designated as cash flow hedges.

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For the periods presented, the Company did not have any non-designated hedges.

The notional value of foreign currency forward contracts outstanding related to forecasted transactions was $ 98.6 million as of March 31, 2026.

The Company recorded an unrealized gain and an unrealized loss on foreign currency forward contracts of $ 1.4 million and $ 0.1 million, respectively, for the three months ended March 31, 2026.

The following table summarizes the effect of foreign currency forward contracts designated as hedging instruments in our condensed consolidated statements of operations (in thousands):

Three Months Ended

March 31, 2026

The notional value of foreign currency forward contracts outstanding related to forecasted transactions was $ 139.1 million as of June 30, 2026.

The Company recorded unrealized gains on foreign currency forward contracts of $ 0.7 million and $ 2.4 million, respectively, for the three and six months ended June 30, 2026.

The Company recorded unrealized losses of $ 0.6 million for both the three and six months ended June 30, 2025.

The following table summarizes the effect of foreign currency forward contracts designated as hedging instruments in our condensed consolidated statements of operations for the three and six months ended June 30, 2026 and 2025 (in thousands):

Net Losses Reclassified from AOCI into Operating Income

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Designated cash flow hedges:

1 unchanged sentence

Operating expense ( 47 ) ( 27 ) ( 59 ) ( 27 )

The Company did not enter into any foreign currency forward contracts that qualified for hedge accounting in the three months ended March 31, 2025, and therefore there were no derivative assets or liabilities, nor adjustments to revenue or operating expense as a result of cash flow hedges during this period.

Employee Benefits

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Under the terms of the plan, eligible employees may make voluntary contributions as a percent of compensation and the Company may elect to match a discretionary percentage of employee contributions.

For the three months ended March 31, 2026, the Company recognized income tax expense of $ 0.5 million on a pre-tax loss of $ 19.9 million.

The Company calculated the provision for income taxes for the three months ended March 31, 2026 by applying an estimate of the annual effective tax rate for the full year to ordinary loss adjusted by the tax impact of discrete items.

Income tax expense for the three months ended March 31, 2026 was primarily attributable to state and foreign income tax expense as a result of current taxable income in certain jurisdictions.

For the three months ended March 31, 2025, the Company recognized income tax expense of $ 8.5 million on a pre-tax loss of $ 122.1 million.

The Company calculated the provision for income taxes for the three months ended March 31, 2025 by applying an estimate of the annual effective tax rate for the full year to ordinary loss adjusted by the tax impact of discrete items.

Income tax expense for the three months ended March 31, 2025 was primarily attributable to federal, state and foreign income tax expense as a result of current taxable income in certain jurisdictions.

The Company continues to maintain a full valuation allowance against its net deferred tax assets as of March 31, 2026, based on the current assessment that it is not more likely than not these future benefits will be realized before expiration.

For the three and six months ended June 30, 2026, the Company recognized income tax expense of $ 0.5 million and $ 1.0 million, respectively, on a pre-tax loss of $ 20.7 million and $ 40.5 million, respectively.

The Company calculated the provision for income taxes for the three and six months ended June 30, 2026 by applying an estimate of the annual effective tax rate for the full year to ordinary loss adjusted by the tax impact of discrete items.

Income tax expense for the three and six months ended June 30, 2026 was primarily attributable to state and foreign income tax expense as a result of current taxable income in certain jurisdictions.

For the three and six months ended June 30, 2025, the Company recognized income tax benefit of $ 5.3 million and tax expense of $ 3.1 million, respectively, on a pre-tax loss of $ 57.7 million and $ 179.8 million, respectively.

The Company calculated the provision for income taxes for the three and six months ended June 30, 2025 by applying an estimate of the annual effective tax rate for the full year to ordinary loss adjusted by the tax impact of discrete items.

Income tax benefit and expense for the three and six months ended June 30, 2025 was primarily attributable to federal, state and foreign income tax benefit and expense as a result of current taxable income in certain jurisdictions.

The Company continues to maintain a full valuation allowance against its net deferred tax assets as of June 30, 2026 based on the current assessment that it is not more likely than not these future benefits will be realized before expiration.

Business Segment and Geographic Information

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The Company’s CODM is the Chief Executive Officer (CEO), who evaluates segment performance based on segment net income (loss) on a consolidated basis.

Segment net income (loss) was consistent with the net loss amounts reported in the Company’s condensed consolidated statements of operations and comprehensive loss for the three months ended March 31, 2026 and 2025.

There were no significant segment expenses that are regularly provided to the CODM other than those reported in the Company’s condensed consolidated statements of operations and comprehensive loss for the three months ended March 31, 2026 and 2025.

The Company’s CODM is provided segment assets information on a consolidated basis for the evaluation of Company performance.

Total segment assets were consistent with total assets reported in the Company’s consolidated balance sheets for March 31, 2026 and December 31, 2025.

Total segment assets were consistent with total assets reported in the Company’s consolidated balance sheets for June 30, 2026 and December 31, 2025.

Disaggregation of Sales

Segment revenues were consistent with revenue reported in the Company’s condensed consolidated statements of operations and comprehensive loss for the three months ended March 31, 2026 and 2025.

Segment revenues were consistent with revenue reported in the Company’s condensed consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2026 and 2025.

The Company primarily sells its products through national and regional distributors in the United States on a non-exclusive basis, and primarily through distribution partners internationally.

1 unchanged sentence

The Company disaggregates its revenue by geography, major sales channel, and product as management believes these categories best depict how the nature, amount, and timing of revenues and cash flows are affected by economic factors.

During the three months ended March 31, 2026 and 2025, no individual country internationally generated revenue that represented more than 10% of total revenue.

During the three and six months ended June 30, 2026 and 2025, no individual country internationally generated revenue that represented more than 10% of total revenue.

The table below sets forth revenues for the Company’s two primary geographical markets, based on the geographic location to which its products are shipped (in thousands):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

United States $ 179,292 $ 170,209 $ 340,135 $ 320,841

2 unchanged sentences

Total Sales $ 254,560 $ 240,678 $ 501,781 $ 475,100

Sales within the pharmacy channel accounted for 6 % of the Company’s United States sales for the three months ended March 31, 2026.

Sales within the pharmacy channel were not material for the three months ended March 31, 2025.

Sales to distributors accounted for 89 % and 96 % of the Company’s international sales for the three months ended March 31, 2026 and 2025, respectively.

During the three months ended March 31, 2026, pump sales were $ 110.4 million and supplies and other sales were $ 136.8 million.

During the three months ended March 31, 2025, pump sales were $ 102.1 million and supplies and other sales were $ 132.3 million.

In January 2025, the Company entered into an amendment agreement with AMF Medical that removed contingent liabilities included in the original share purchase agreement entered into in 2022.

Sales within the pharmacy channel accounted for 10 % and 3 % of the Company’s United States sales for the three months ended June 30, 2026 and 2025, respectively.

Sales within the pharmacy channel accounted for 8 % and 2 % of the Company’s United States sales for the six months ended June 30, 2026 and 2025, respectively.

Direct sales to customers accounted for 13 % and 12 % of the Company’s international sales for the three and six months ended June 30, 2026, respectively.

Direct sales to customers accounted for 4 % of the Company’s international sales for both the three and six months ended June 30, 2025.

During the three and six months ended June 30, 2026 and 2025, sales by product were as follows (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Pump $ 114,652 $ 111,871 $ 225,078 $ 213,962

Supplies and other 139,908 128,807 276,703 261,138

Total Sales $ 254,560 $ 240,678 $ 501,781 $ 475,100

In January 2025, the Company entered into an amendment agreement with AMF Medical SA that removed contingent liabilities included in the original share purchase agreement entered into in 2022.

Under the revised terms, the Company agreed to pay CHF 68.0 million, consisting of a CHF 40.0 million ($ 43.5 million USD) payment made in January 2025 and a final payment of CHF 28.0 million ($ 35.1 million USD) made in October 2025.

4 unchanged sentences

From time to time, the Company is involved in various legal proceedings, regulatory matters, and other disputes or claims arising from or related to claims incident to the normal course of the Company’s business activities, including actions with respect to intellectual property, data privacy, employment, regulatory, product liability and contractual matters.

Although the results of such legal proceedings and claims cannot be predicted with certainty, as of March 31, 2026 the Company believes it is not currently a party to any legal proceedings, regulatory matters, or other disputes or claims for which a material loss was considered probable or for which the amount or range of loss was reasonably estimable.

The Company provides disclosure and records loss contingencies in accordance with the loss contingencies accounting guidance.

In accordance with such guidance, the Company establishes accruals for such matters when potential losses become probable and can be reasonably estimated.

If the Company determines that a loss is reasonably possible and the loss or range of loss can be estimated, the Company discloses the possible loss in its condensed consolidated financial statements.

Although the results of legal proceedings and claims cannot be predicted with certainty, as of June 30, 2026 the Company believes it is not currently a party to any legal proceedings, regulatory matters, or other disputes or claims for which a material loss was considered probable or for which the amount or range of loss was reasonably estimable.

However, regardless of the merit of the claims raised or the outcome, legal proceedings may have an adverse impact on the Company as a result of defense and settlement costs, diversion of management time and resources, and other factors.

Letters of Credit

As of March 31, 2026, in connection with one of the Company’s operating leases (see Note 6, “Leases”), the Company had a $ 4.9 million unsecured irrevocable standby letter of credit arrangement with a bank, under which the landlord of the building is the beneficiary.

As of June 30, 2026, in connection with one of the Company’s operating leases (see Note 6, “Leases”), the Company had a $ 4.9 million unsecured irrevocable standby letter of credit arrangement with a bank, under which the landlord of the building is the beneficiary.

The Company is required to maintain the standby letter of credit throughout the term of the lease, which expires in April 2035.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements