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Tandem Diabetes Care (TNDM)
NASDAQ:TNDM
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Tandem Diabetes Care
(NASDAQ:TNDM)
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Rating:48Neutral
Price Target:
$13.00
▼(-11.62% Downside)
Tandem Diabetes Care's overall score is primarily impacted by its financial performance, which shows revenue growth but significant profitability and financial stability challenges. The earnings call provided positive insights into sales growth and market expansion, but valuation metrics remain poor, and technical indicators suggest mixed market sentiment.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.
Product Development
FDA clearance for new products enhances Tandem's competitive edge, potentially boosting market share and driving future growth.
Pharmacy Channel Expansion
Expanding pharmacy channels can increase accessibility and affordability, potentially leading to higher sales and customer retention.
Negative Factors
High Leverage
Increased leverage heightens financial risk, potentially limiting flexibility and increasing vulnerability to economic downturns.
Negative Profitability
Sustained lack of profitability undermines financial health, posing challenges for reinvestment and long-term sustainability.
Cash Flow Challenges
Weak cash generation limits the ability to fund operations and growth initiatives, impacting long-term financial stability.
Tandem Diabetes Care (TNDM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$885.84M
Dividend YieldN/A
Average Volume (3M)1.83M
Price to Earnings (P/E)―
Beta (1Y)1.06
Revenue Growth25.84%
EPS Growth-47.67%
CountryUS
Employees2,650
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.48
Shares Outstanding67,569,470
10 Day Avg. Volume1,725,918
30 Day Avg. Volume1,834,274
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.56
Enterprise Value/Revenue1.23
Enterprise Value/Gross Profit2.63
Enterprise Value/Ebitda-7.79
Forecast
1Y Price Target
$19.00Price Target Upside29.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering21
Tandem Diabetes Care Business Overview & Revenue Model
Company DescriptionTandem Diabetes Care, Inc. is a medical device company focused on the design, development, and commercialization of innovative insulin delivery systems for people with diabetes. Headquartered in San Diego, California, Tandem specializes in advanced diabetes management technologies, primarily offering products such as the t:slim X2 insulin pump and the t:connect mobile app. The company aims to improve the lives of diabetes patients through cutting-edge technology, user-friendly designs, and integrated solutions that enhance insulin delivery and glucose management.
How the Company Makes MoneyTandem Diabetes Care generates revenue primarily through the sale of its insulin delivery devices, including the t:slim X2 insulin pump and related accessories. The company also earns money from the sale of disposable supplies, such as infusion sets and reservoirs, which are necessary for the operation of their insulin pumps. A significant revenue stream comes from partnerships with insurance providers and healthcare organizations that facilitate access to their products for patients. Additionally, Tandem may benefit from collaborations with technology companies to enhance its product offerings and expand its market reach. The company's consistent focus on innovation and customer support helps to drive sales and build loyalty among users, further contributing to its overall earnings.
Tandem Diabetes Care Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call showcased Tandem Diabetes Care's strong performance with record sales and significant progress in pharmacy channel expansion and international markets. However, there are challenges such as moderate U.S. sales growth and increased competition affecting the future outlook.Q2-2025 Updates
Positive Updates
Record Second Quarter Sales
Tandem Diabetes Care achieved record second quarter sales, both in the U.S. and internationally, with worldwide sales of $241 million, marking the highest second quarter sales in both markets.
Strong Pump Shipments and Renewals
There was a year-over-year increase in pump shipments in the U.S., with renewals accounting for over half of the shipments, demonstrating strong retention and continued double-digit growth in renewals.
Pharmacy Channel Expansion
Progress in pharmacy channel expansion with plans to start selling t:slim supplies through the pharmacy channel beginning in Q4, aimed at making pump therapy more affordable and lowering out-of-pocket costs for patients.
International Market Growth
Strong performance in international markets with $70 million in sales, driven by demand for t:slim, increasing pump renewals, and growing supply sales.
Gross Margin Improvement
Achieved a gross margin of 52%, reflecting an increase year-over-year and compared to the first quarter, driven by pricing improvements and operational goals.
Product Development Milestones
Significant product development milestones achieved in Q2, including the Tandem Mobi's positive feedback and the upcoming integration with Abbott's FreeStyle Libre 3 Plus sensor.
Negative Updates
U.S. Sales Growth Moderation
U.S. sales anticipated to have more moderate growth in the back half of the year due to the competitive environment and ongoing commercial transformation efforts.
Impact of New Market Entrants
Acknowledgment of increased competition from a new market entrant with a large sales organization, expected to cause some market noise and pausing in the second half.
Inventory Adjustments
Slight headwinds from distributor inventory adjustments in international markets in preparation for the transition to direct operations in 2026.
Challenges in U.S. Commercial Transformation
The commercial transformation, including sales force expansion and system upgrades, is still in process, delaying some anticipated benefits.
Company Guidance
During Tandem Diabetes Care's second quarter 2025 earnings call, the company provided several key metrics and guidance for the fiscal year. Tandem reported record second-quarter sales of $241 million, marking a 15% year-over-year growth, with $170 million of sales in the U.S. and $70 million internationally. The company achieved a gross margin of 52%, with expectations to reach 53%-54% by year-end and a longer-term target of 60% by the end of 2026. Tandem is on track to achieve $1 billion in worldwide sales for 2025, with U.S. sales anticipated at $700 million and international sales at $300 million. The company highlighted the expansion of its pharmacy channel, noting that approximately 30% of U.S. lives are now covered, and new partnerships are expected to increase this coverage. Tandem also plans to start selling t:slim supplies through the pharmacy channel in Q4, which could significantly impact its financial performance. Additionally, Tandem is focusing on the type 2 diabetes market, expanding pilot programs that showed increased adoption compared to non-pilot areas. The company is also looking forward to launching new products, such as the Steadiset infusion set and the tubeless Mobi pump, both expected in 2026.Tandem Diabetes Care Financial Statement Overview
Summary
Tandem Diabetes Care faces profitability challenges despite strong revenue growth. High leverage and negative cash flow trends pose financial risks, impacting long-term sustainability. The company must focus on sustaining margins and reducing debt for future financial health.Income Statement
Tandem Diabetes Care's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is healthy at 46.6%, indicating effective cost management. However, the company is struggling with profitability, as evidenced by negative net profit margin (-16.7%) and EBIT margin (-9.4%). Revenue growth is strong with a 17.2% increase from the previous year, but consistent operating losses are a concern.45
Neutral
Balance Sheet
The balance sheet reflects financial vulnerability with a high debt-to-equity ratio of 3.18, suggesting significant leverage. The equity ratio of 16.8% indicates heavy reliance on debt for financing. Return on equity is negative at -118.4%, reflecting poor returns for shareholders. The company maintains a reasonable cash position, but overall financial stability is weak.40
Negative
Cash Flow
Cash flow analysis reveals challenges, with negative free cash flow in the TTM period. The operating cash flow to net income ratio is 0.08, showing limited cash generation from operations. The free cash flow to net income ratio is negative, indicating cash outflows exceeding net income. Although there is a positive free cash flow growth from 2023 to 2024, the overall cash flow health is concerning.35
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.12B | 940.20M | 747.72M | 801.22M | 702.80M | 498.83M |
| Gross Profit | 526.37M | 489.57M | 367.69M | 412.99M | 376.21M | 260.52M |
| EBITDA | -177.66M | -99.13M | -194.66M | -72.31M | 36.50M | -13.03M |
| Net Income | -205.45M | -96.03M | -222.61M | -94.59M | 15.57M | -34.38M |
Balance Sheet | ||||||
| Total Assets | 875.74M | 967.66M | 952.66M | 1.05B | 905.14M | 716.41M |
| Cash, Cash Equivalents and Short-Term Investments | 315.36M | 438.33M | 467.91M | 616.90M | 623.81M | 484.94M |
| Total Debt | 449.01M | 473.56M | 415.67M | 419.88M | 314.67M | 228.32M |
| Total Liabilities | 742.45M | 704.56M | 639.03M | 612.84M | 472.02M | 350.11M |
| Stockholders Equity | 133.28M | 263.10M | 313.63M | 439.95M | 433.11M | 366.31M |
Cash Flow | ||||||
| Free Cash Flow | -54.16M | 4.99M | -83.41M | 7.51M | 87.85M | -7.63M |
| Operating Cash Flow | 9.72M | 24.23M | -31.81M | 50.46M | 111.36M | 24.67M |
| Investing Cash Flow | 52.43M | -23.48M | -85.74M | 33.17M | -186.88M | -296.06M |
| Financing Cash Flow | -46.62M | 8.37M | 4.11M | 16.88M | 51.93M | 314.44M |
Tandem Diabetes Care Technical Analysis
Positive
14.71
Price Trends
12.73
Positive
15.97
Negative
21.41
Negative
Market Momentum
0.11
Negative
66.47
Neutral
77.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TNDM, the sentiment is Positive. The current price of 14.71 is above the 20-day moving average (MA) of 12.58, above the 50-day MA of 12.73, and below the 200-day MA of 21.41, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 66.47 is Neutral, neither overbought nor oversold. The STOCH value of 77.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TNDM.
Tandem Diabetes Care Risk Analysis
Tandem Diabetes Care disclosed 62 risk factors in its most recent earnings report. Tandem Diabetes Care reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tandem Diabetes Care Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $122.47B | 26.36 | 9.72% | 2.89% | 4.98% | 22.08% | |
74 Outperform | $45.00B | 52.61 | 15.71% | ― | -5.23% | -39.83% | |
71 Outperform | $26.29B | 46.94 | 22.83% | ― | 9.30% | -14.95% | |
68 Neutral | $21.76B | 94.07 | 19.18% | ― | 25.99% | -40.46% | |
56 Neutral | $26.36B | ― | -7.10% | 3.16% | -0.76% | -55.03% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $885.84M | ― | -111.91% | ― | 25.84% | -47.67% |
* Healthcare Sector Average
TNDM
Tandem Diabetes Care
14.71
-27.07
-64.79%
DXCM
Dexcom
67.05
-1.57
-2.29%
EW
Edwards Lifesciences
77.07
12.53
19.41%
PODD
Insulet
309.12
81.33
35.70%
PHG
Koninklijke Philips
28.00
-2.83
-9.18%
MDT
Medtronic
97.70
13.43
15.94%
Tandem Diabetes Care Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
Tandem Diabetes Care Gains FDA Clearance for SteadiSet
Positive
Aug 7, 2025
On August 6, 2025, Tandem Diabetes Care received FDA clearance for its SteadiSet infusion set, designed for up to seven days of insulin delivery for type 1 diabetes patients. The company plans to launch SteadiSet as a standalone product and as part of its future Tandem Mobi tubeless system, with a focus on scaling up manufacturing and pre-commercial activities in the coming quarters.
Executive/Board ChangesLegal ProceedingsShareholder Meetings
Tandem Diabetes Care Settles Patent Disputes with Roche
Neutral
May 23, 2025
On May 21, 2025, Tandem Diabetes Care, Inc. and Roche entities settled patent disputes related to insulin delivery systems, agreeing to terminate pending actions and granting each other non-exclusive licenses for ten years. Additionally, Tandem held its virtual Annual Meeting of Stockholders on the same day, where eight directors were elected, executive compensation was approved, and Ernst & Young LLP was ratified as the independent registered public accounting firm for 2025.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.