Executive Summary

Beat-and-raise quarter: Revenue $706.3M (+29.9% y/y) and GAAP/Non-GAAP diluted EPS $1.24 both exceeded S&P consensus; FY25 revenue growth and margin guidance raised across key lines, highlighting durable Omnipod 5 demand and international strength (*consensus values from S&P Global).
Gross margin expanded 290 bps y/y to 72.2% while adjusted operating margin reached 17.1% (+90 bps y/y), with investment stepping up in R&D and DTC to support Type 2 adoption and demand generation .
International Omnipod revenue crossed $200M for the first time (+46.5% reported; +39.9% cc), aided by rollouts, sensor integrations, and favorable price/mix as DASH upgrades to Omnipod 5 accelerate .
Guidance catalysts: FY25 total revenue growth raised to 28–29% (from 24–27%), gross margin now >71% (from ~71%), and operating margin to 17.3–17.5% (from 17.0–17.5%); Q4 outlook embeds continued momentum in U.S. and a large FX tailwind OUS .
Strategic setup: Type 2 uptake rising (35%+ of U.S. new starts), smartphone control >55%, expanding prescriber base (>27,000), and manufacturing capacity investments underpin medium-term growth narrative; Investor Day (Nov 20) flagged for deeper roadmap .

What Went Well and What Went Wrong

What Went Well
- Outperformed guidance with broad-based growth: Total revenue $706.3M (+29.9% y/y; +28.2% cc), Omnipod $699.2M (+31.0% y/y; +29.3% cc); U.S. +25.6%, International +46.5% (+39.9% cc) .
- Margin execution: Gross margin 72.2% (+290 bps y/y); adjusted operating margin 17.1% (+90 bps y/y) on scale, productivity, and price/mix despite higher investments .
- Type 2 and DTC traction: >35% of U.S. new starts from Type 2; record qualified leads; 65% of DTC leads from providers not yet called on by sales—expands prescriber funnel .
- Management quote: “We surpassed $700 million in quarterly revenue for the first time… Operating margins expanded 90 bps y/y to 17.1% as we generated operating leverage while continuing to strategically invest” .
What Went Wrong
- Adjusted EBITDA margin ticked down y/y (22.7%, −50 bps) as Insulet accelerated R&D and commercial/DTC investments to seed future growth .
- Higher interest expense 2025 vs 2024 due to refinancing convertible debt and extended swaps; expects ~+$20M y/y headwind in 2025 .
- Drug Delivery revenue down y/y to $7.1M and guided down sharply in Q4 (−95% to −85%) on mix and deprioritization vs core diabetes opportunity .

Financial Results

Performance vs prior quarters (absolute)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($M)	$569.0	$649.1	$706.3
GAAP Diluted EPS	$0.50	$0.32	$1.24
Adjusted Diluted EPS	$1.02	$1.17	$1.24
Gross Margin (%)	71.9%	69.7%	72.2%
Operating Income ($M)	$88.8	$121.1	$117.7
Operating Margin (%)	15.6%	18.7%	16.7%
Adjusted Operating Margin (%)	16.4%	17.8%	17.1%
Adjusted EBITDA ($M)	$133.9	$157.5	$160.0
Adjusted EBITDA Margin (%)	23.5%	24.3%	22.7%

Q3 2025 Actual vs S&P Consensus (and recent trend)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($M) – Actual	$569.0	$649.1	$706.3
Revenue ($M) – Consensus*	$543.3*	$612.3*	$679.0*
EPS (GAAP/Adj) – Actual	$0.50 / $1.02	$0.32 / $1.17	$1.24 / $1.24
EPS – Consensus*	$0.786*	$0.923*	$1.147*
# of Estimates – Rev/EPS*	19 / 18*	20 / 20*	19 / 20*

Values marked with * retrieved from S&P Global.

Segment revenue ($M)

Segment	Q1 2025	Q2 2025	Q3 2025
U.S. Omnipod	$401.7	$453.2	$497.1
International Omnipod	$152.4	$185.8	$202.1
Drug Delivery	$14.9	$10.2	$7.1
Total Omnipod	$554.1	$639.0	$699.2
Total Revenue	$569.0	$649.1	$706.3

Select year-over-year comparisons (Q3 only)

Metric	Q3 2024	Q3 2025	y/y Change
Revenue ($M)	$543.9	$706.3	+29.9%
Gross Margin (%)	—	72.2%	+290 bps y/y
GAAP Diluted EPS	$1.08	$1.24	+$0.16

KPIs and operating drivers

KPI	Q2 2025	Q3 2025	Comment
U.S. prescriber base	~25,000+	>27,000	Continued expansion
Smartphone control adoption	~45%	>55%	Higher engagement/retention
Type 2 share of U.S. new starts	>30%	>35%	Early-stage market creation
International price/mix (DASH→O5)	Low double-digit lift in Q2	Ongoing benefit	Supports margins
International revenue milestone	$185.8M	>$200M	First time >$200M

Guidance Changes

FY25 and Q4 2025 outlook (constant currency unless noted)

Metric	Period	Previous (as of 8/7/25)	Current (as of 11/6/25)	Change
U.S. Omnipod revenue growth	FY25	22%–25%	26%–27%	Raised
International Omnipod revenue growth	FY25	34%–37%	38%–39%	Raised
Total Omnipod revenue growth	FY25	25%–28%	29%–30%	Raised
Drug Delivery revenue growth	FY25	(30)%–(25)%	(15)%–(10)%	Raised
Total revenue growth	FY25	24%–27%	28%–29%	Raised
Gross margin	FY25 (reported)	~71%	>71%	Raised
Adjusted operating margin	FY25 (reported)	17.0%–17.5%	17.3%–17.5%	Narrowed/higher low end
U.S. Omnipod revenue growth	Q4 2025	—	24%–27%	New detail
International Omnipod revenue growth	Q4 2025	—	37%–40%	New detail
Total Omnipod revenue growth	Q4 2025	—	27%–30%	New detail
Drug Delivery revenue growth	Q4 2025	—	(95)%–(85)%	New detail
Total revenue growth	Q4 2025	—	25%–28%	New detail

Additional guideposts: 2025 non-GAAP tax rate 22%–23%; 2025 diluted share count ~71M; higher 2025 net interest expense vs 2024 due to debt structure changes .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1–Q2 2025)	Current Period (Q3 2025)	Trend
Type 2 adoption & DTC	Type 2 first-mover; ~1/3 U.S. NCS; stepped-up DTC; strong outcomes (SECURE-T2D)	>35% U.S. NCS Type 2; record DTC leads; 65% from uncov’d providers	Accelerating
International growth & mix	~39% cc growth; low double-digit OUS price/mix; O5 conversions ~40% (Q2)	OUS +39.9% cc; revenue >$200M; continued price/mix benefit	Strong, durable
Supply chain & capacity	$1B+ invested; evaluating capex acceleration	Ramping Acton & Malaysia ahead of plan; planning further capacity	Scaling up
Sensor integrations	G7 iOS U.S. live; global integrations progressing	Dexcom G7 in Nordics/Italy; Libre 3 U.S. 1H26 priority	Expanding options
Phone control	Rapid adoption; still ~55% on controllers (Q2)	>55% on smartphone; up from 45% q/q	Improving engagement
Access & affordability	Pharmacy model (47k stores); ~$1/day; 300M+ covered	Continued pharmacy leverage; focus on prior auth streamlining	Reinforced
Competition/patch pumps	Leading in competitive conversions (highest since late 2023)	Strong competitive conversions in U.S.; moat via tech/form factor/access	Favorable
Guidance philosophy	Consistent, realistic, confidence to deliver	More balanced/outcome-driven; refine KPIs for 2026	Evolving
Regulatory/CMS	—	Monitoring Medicare/DME proposals; Part D not in competitive bidding	Watch item
AI/operations	Efficiency via AI/cloud in service ops	Continued integration to scale service efficiently	Ongoing

Management Commentary

CEO: “We surpassed $700 million in quarterly revenue for the first time… Operating margins expanded 90 bps y/y to 17.1% as we generated operating leverage while continuing to strategically invest” .
CEO on Type 2: “New customer starts more than doubled y/y and grew sequentially… Large sequential uptake in Type 2 prescribers this quarter” .
CFO: “We’re raising total company revenue growth to 28%–29% from 24%–27% and now expect full-year gross margin of more than 71%… Operating margin 17.3%–17.5% as we continue to invest” .
COO on DTC flywheel: “~65% of leads came from providers we don’t call on… warm invitations to expand prescriber base” .
CEO on international: “Revenue grew 40% y/y cc… benefiting from G7 launch and DASH-to-Omnipod 5 upgrades” .

Q&A Highlights

Type 2 market build and DTC: Management tied DTC investments directly to record leads, prescriber activation, and >35% of U.S. new starts; expects continued momentum as evidence and access expand .
Competitive conversions: U.S. saw the strongest competitive conversion quarter in years, reflecting differentiated form factor, outcomes, and pharmacy access .
International dynamics: Growth primarily volume-driven with ongoing positive price/mix; no material distributor stocking effects .
Contracting/pricing: No notable changes in pharmacy contracting tenor/price despite competition; broad preferred access remains .
Guidance framework: New CFO emphasized balanced, confidence-based guidance and potential evolution of KPIs into 2026 .

Estimates Context

Revenue and EPS exceeded S&P Global consensus in Q1–Q3 2025; Q3 actuals: revenue $706.3M vs $679.0M*, EPS $1.24 vs $1.147* (19/20 estimates) .
Continued beats alongside raised FY25 guidance suggest potential upward estimate revisions for FY25 and setup into 2026, particularly on international growth, Type 2 penetration, and margins .

Estimates table (S&P Global)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue Consensus Mean ($M)*	543.3*	612.3*	679.0*
Primary EPS Consensus Mean ($)*	0.786*	0.923*	1.147*
Revenue – # of Estimates*	19*	20*	19*
EPS – # of Estimates*	18*	20*	20*

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

Beat-and-raise quarter with broadened momentum: elevated FY25 revenue and margin outlooks plus Q4 guidance point to sustained top-line strength and durable margin expansion .
Type 2 acceleration is real: rising share of U.S. new starts (>35%), strong DTC funnel efficiency, and expanding prescriber base (>27k) create multi-year adoption runway .
International flywheel intact: >$200M quarterly OUS revenue, sensor integrations (G7, Libre) and price/mix benefits support outperformance and profitability .
Margin levers vs. reinvestment: GM >71% for FY25; adjusted operating margin 17.3–17.5% despite heavier R&D/DTC—supports growth compounding while preserving expansion .
Balance sheet de-risked: Convertible notes redeemed; expect higher 2025 interest expense vs 2024, but simpler capital structure and share count ~71M by year-end .
Near-term catalysts: Q4 execution, Investor Day (11/20) with product/algorithm/integration roadmap, and updates on capacity expansion and Type 2 strategy .
Watch items: Drug Delivery step-down, macro/FX exposure OUS, and evolving CMS policy landscape; management is actively engaging and sees limited direct exposure via Part D pharmacy model .

Appendices

Additional company updates during Q3 window

Board enhancement: Appointment of Robert L. Huffines (former Global Chair of Investment Banking at JPMorgan) to the Board, effective Oct 31, 2025 .
Investor Day announcement: Nov 20, 2025 at HQ with strategy and long-term outlook .

Non-GAAP adjustments (Q3 snapshot)

Adjusted EPS equals GAAP in Q3 as CFO transition costs (~~$0.04) and tax items (~~$0.14) were offset by derivative asset fair value gain (~$0.18) in the non-GAAP bridge .

Why results beat and guidance raised

Revenue outperformance driven by: record new customer starts (U.S. and OUS), rising Type 2 contribution, favorable OUS price/mix from DASH→Omnipod 5 upgrades, and strong retention/utilization .
Margin expansion supported by scale and manufacturing productivity; reinvestment prioritized for innovation (algorithms/sensors), market development, and demand generation .

All document-based facts and figures are cited. Estimates marked with * are values retrieved from S&P Global.

INSULET CORP (PODD)·Q3 2025 Earnings Summary