Education
About Us
Working with TipRanks
Follow Us
Tandem Diabetes Care (TNDM)
NASDAQ:TNDM
Top Page
Tandem Diabetes Care
(NASDAQ:TNDM)
Select Model
Select Model
Rating:61Neutral
Price Target:
$22.00
▼(-2.65% Downside)
Tandem Diabetes Care's overall stock score reflects a mix of financial challenges and positive strategic developments. The financial performance is a significant concern due to declining revenue and high leverage. However, strong technical indicators and positive earnings call sentiment provide a more optimistic outlook. The recent board appointment further supports the company's strategic direction.
Positive Factors
Product Innovation
The integration with Abbott's FreeStyle Libre 3 Plus enhances product offerings, potentially increasing market share and customer satisfaction.
Pharmacy Channel Expansion
Expanding pharmacy access can drive sales growth and improve customer access, supporting long-term revenue stability.
Board Appointment
The addition of a seasoned finance executive to the board strengthens governance and strategic direction, aiding long-term growth.
Negative Factors
High Leverage
High leverage can constrain financial flexibility and increase risk, potentially impacting future investment and growth opportunities.
Revenue Decline
Decreasing revenue growth suggests challenges in market competitiveness and product demand, affecting long-term profitability.
Profitability Challenges
Ongoing profitability issues indicate cost management challenges, which could hinder financial health and operational efficiency.
Tandem Diabetes Care (TNDM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.53B
Dividend YieldN/A
Average Volume (3M)2.40M
Price to Earnings (P/E)―
Beta (1Y)1.05
Revenue Growth17.87%
EPS Growth-57.03%
CountryUS
Employees2,650
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.31
Shares Outstanding67,802,360
10 Day Avg. Volume1,792,723
30 Day Avg. Volume2,404,682
Financial Highlights & Ratios
PEG Ratio0.43
Price to Book (P/B)8.96
Price to Sales (P/S)2.51
P/FCF Ratio472.08
Enterprise Value/Market Cap0.62
Enterprise Value/Revenue0.94
Enterprise Value/Gross Profit1.78
Enterprise Value/Ebitda-5.29
Forecast
1Y Price Target
$25.47Price Target Upside12.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
EPS Forecast (FY)-2.14
Revenue Forecast (FY)$1.00B
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 diabetes management products. The company specializes in insulin delivery systems, including its flagship product, the t:slim X2 insulin pump, which features advanced technology such as continuous glucose monitoring integration and customizable settings to enhance the user experience. Tandem serves individuals with diabetes, healthcare providers, and payers, aiming to improve the quality of life for those managing this chronic condition.
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 associated supplies such as infusion sets and cartridges. The company operates on a direct sales model, selling products to healthcare providers, diabetes clinics, and directly to consumers. Additionally, Tandem benefits from partnerships with insulin manufacturers and healthcare systems that facilitate the integration of its products with other diabetes management solutions. Revenue is also supported by reimbursement from insurance companies, which cover a portion of the costs for patients using Tandem's devices. Furthermore, the company's ongoing innovation and product development efforts allow it to maintain a competitive edge, potentially leading to increased sales and market share.
Tandem Diabetes Care Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Positive
Tandem Diabetes Care's earnings call for the third quarter of 2025 reflected significant achievements, including record sales and margin improvements, driven by strategic initiatives in pricing, product innovation, and pharmacy expansion. However, challenges remain in the form of competitive pressures on new pump starts and transition-related impacts in Europe. Overall, the highlights significantly outweigh the lowlights, suggesting a strong positive outlook.Q3-2025 Updates
Positive Updates
Record Third Quarter Sales
Tandem Diabetes achieved record third quarter sales with revenue of $249 million, driven by ASP increases and favorable foreign currency dynamics.
U.S. Sales Performance
U.S. sales reached approximately $176 million, marked as the highest third quarter and second highest quarter ever, primarily due to pricing improvements.
International Sales Growth
International sales achieved $74 million, delivering another record third quarter with double-digit growth in end-user pump placements.
Gross Margin Improvement
Gross margin increased by approximately 3 percentage points year-over-year to 54%, with Q4 expected to reach an all-time high in the mid- to high 50s.
Pharmacy Channel Expansion
Successfully increased pharmacy benefit coverage for Tandem Mobi to more than 40% of U.S. lives, with significant internal efforts to operationalize pharmacy access.
Launch of New Products
Announced the full availability of t:slim X2 with Abbott's FreeStyle Libre 3 Plus integration in the U.S. and expanded Type 2 commercial efforts for Control-IQ+.
Negative Updates
Pressure on New Pump Starts
Continued pressure on new pump starts, particularly from competitive conversions, which have contributed to headwinds in new pump starts.
Impact of Distributor Transition in Europe
A projected $10 million headwind due to distributor inventory destocking and inventory buybacks as Tandem prepares to go direct in select European countries.
Company Guidance
During the Tandem Diabetes Care Third Quarter 2025 Earnings Conference Call, guidance was provided on several key metrics and strategic initiatives. The company reported record third-quarter sales of $249 million, driven by ASP increases and favorable foreign currency dynamics. In the U.S., sales reached approximately $176 million, with a significant portion attributed to pricing, which alone contributed 5% growth in Q3. International sales amounted to $74 million, with end-user pump placements growing double digits year-over-year. The company achieved a gross margin of 54%, a 3 percentage point increase from the previous year. Tandem is on track to achieve $1 billion in worldwide sales for 2025, with U.S. sales expected to be around $700 million and international sales approximately $300 million. The company anticipates gross margins in the range of 53% to 54% for the year, with Q4 expected to set an all-time high in the mid- to high 50s. Adjusted EBITDA is projected to be negative 5% of sales, with further improvements anticipated in 2026 due to new product introductions, pharmacy access expansion, and operational efficiencies.Tandem Diabetes Care Financial Statement Overview
Summary
Tandem Diabetes Care is facing significant financial challenges, with declining revenue growth and profitability issues. The high leverage and negative return on equity indicate financial risk, while the cash flow position shows some improvement. The company needs to focus on revenue growth, cost management, and debt reduction to enhance its financial performance and stability.Income Statement
Tandem Diabetes Care has experienced a decline in revenue growth, with a negative growth rate of -10.17% in the TTM period. The company is facing profitability challenges, as indicated by negative net profit and EBIT margins. However, the gross profit margin remains relatively stable at 53.23%, suggesting some operational efficiency. The company needs to address its declining revenue and improve its cost management to enhance profitability.45
Neutral
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 3.38 in the TTM period, indicating significant leverage and potential financial risk. The return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. The equity ratio is low, suggesting limited financial stability. Tandem Diabetes Care should focus on reducing its debt levels and improving its equity position to strengthen its financial health.40
Negative
Cash Flow
The cash flow statement shows a positive free cash flow growth rate of 32.07% in the TTM period, indicating improved cash generation. However, the operating cash flow to net income ratio is negative, highlighting challenges in converting income into cash. The free cash flow to net income ratio is high, suggesting that the company is generating cash despite net losses. Tandem Diabetes Care should focus on enhancing its operational cash flow to support its financial stability.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.01B | 940.20M | 747.72M | 801.22M | 702.80M | 498.83M |
| Gross Profit | 536.01M | 489.57M | 367.69M | 412.99M | 376.21M | 260.52M |
| EBITDA | -179.70M | -99.13M | -196.46M | -74.21M | 34.06M | -13.03M |
| Net Income | -203.37M | -96.03M | -222.61M | -94.59M | 15.57M | -34.38M |
Balance Sheet | ||||||
| Total Assets | 874.65M | 967.66M | 952.66M | 1.05B | 905.14M | 716.41M |
| Cash, Cash Equivalents and Short-Term Investments | 319.11M | 438.33M | 467.91M | 616.90M | 623.81M | 484.94M |
| Total Debt | 449.28M | 473.56M | 415.67M | 419.88M | 314.67M | 228.32M |
| Total Liabilities | 741.69M | 704.56M | 639.03M | 612.84M | 472.02M | 350.11M |
| Stockholders Equity | 132.97M | 263.10M | 313.63M | 439.95M | 433.11M | 366.31M |
Cash Flow | ||||||
| Free Cash Flow | -25.13M | 4.99M | -58.61M | 16.37M | 87.85M | -7.63M |
| Operating Cash Flow | -8.79M | 24.23M | -31.81M | 50.46M | 111.36M | 24.67M |
| Investing Cash Flow | 92.86M | -23.48M | -85.74M | 33.17M | -186.88M | -296.06M |
| Financing Cash Flow | -43.67M | 8.37M | 4.11M | 16.88M | 51.93M | 314.44M |
Tandem Diabetes Care Technical Analysis
Positive
22.60
Price Trends
17.52
Positive
15.12
Positive
17.06
Positive
Market Momentum
1.26
Positive
68.91
Neutral
77.25
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 22.6 is above the 20-day moving average (MA) of 20.73, above the 50-day MA of 17.52, and above the 200-day MA of 17.06, indicating a bullish trend. The MACD of 1.26 indicates Positive momentum. The RSI at 68.91 is Neutral, neither overbought nor oversold. The STOCH value of 77.25 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 | $125.28B | 26.40 | 9.81% | 2.76% | 5.34% | 13.15% | |
79 Outperform | $25.89B | 36.94 | 30.63% | ― | 14.21% | 5.66% | |
79 Outperform | $49.51B | 36.32 | 13.59% | ― | 0.19% | 65.58% | |
70 Outperform | $20.31B | 83.77 | 19.68% | ― | 27.12% | -41.72% | |
61 Neutral | $1.53B | -7.41 | -109.73% | ― | 17.87% | -57.03% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $25.18B | -32.50 | ― | 3.34% | -0.76% | -55.03% |
* Healthcare Sector Average
TNDM
Tandem Diabetes Care
22.60
-11.63
-33.98%
DXCM
Dexcom
66.37
-11.43
-14.69%
EW
Edwards Lifesciences
85.32
11.20
15.11%
PODD
Insulet
288.73
25.38
9.64%
PHG
Koninklijke Philips
26.53
2.27
9.36%
MDT
Medtronic
97.72
18.94
24.04%
Tandem Diabetes Care Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Tandem Diabetes Care Appoints Sandra Beaver to Board
Positive
Nov 12, 2025
On November 7, 2025, Tandem Diabetes Care appointed Sandra Beaver to its Board of Directors, expanding the board from eight to nine members. Ms. Beaver, a seasoned finance executive with over 20 years of experience, will serve on the Audit Committee and the Cybersecurity and Data Privacy Committee. Her appointment is expected to support Tandem’s growth strategy as it continues to innovate in digital health solutions and expand into new markets.
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.