Tandem Diabetes Care, Inc.

Good day and thank you for standing by. Welcome to the Tandem Diabetes Care First Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Susan Morrison, Executive Vice President and Chief Administrative Officer. Ma'am, please go ahead.

Hello, and welcome to Tandem's first quarter 2026 earnings call. Today's discussion will include forward-looking statements. These statements reflect management's expectations about future events, our product pipeline, development timelines, and financial performance and operating plans. and speak only as of today's date. There are risks and uncertainties that could cause actual results to differ materially from those anticipated or projected in our forward-looking statements, which are described in our press release issued earlier today and under the risk factors portion of our most recent annual report on Form 10-K and quarterly report on Form 10-Q. Today's discussion will also include references to both GAAP and non-GAAP financial measures. unless otherwise noted, the financial metrics discussed today will be on a non-GAAP basis. Please refer to our earnings release issued earlier today and available on the Investor Center portion of our website for a reconciliation of these measures to their most directly comparable GAAP financial measure and other information regarding our use of non-GAAP financial measures. John Sheridan, Tandem's President and CEO, will be leading today's call. and he'll be joined by Lee Vossler, Executive Vice President and Chief Financial Officer. Following their prepared remarks, the operator will open up the call for questions. Thanks in advance for limiting yourself to one question before getting back into the queue. With that, I'll hand the call over to John.

Thanks, Susan, and welcome everyone. In the first quarter of 2026, we delivered a strong financial and operational performance, setting the stage for another successful year. This momentum reflects the dedication of our team and our commitment to execute our strategic objectives. Building on these results, we actively advanced several key initiatives that positioned tandem for both immediate impact and long-term growth. By modernizing our commercial operations, reshaping our business model, and introducing new technologies, we are not only achieving notable short-term gains, but also laying the foundation for sustained growth, profitability, and innovation. I'll now walk you through updates on each of these initiatives, beginning with the modernization of our commercial organization. Globally, we have assembled a talented and impressive team. The group is deeply committed to bringing the benefits of our technology to people living with diabetes, and we are working to further support them by strengthening our systems, infrastructure, and processes. For example, in the United States, we continue upgrading our sales and customer management infrastructure. as part of our multiyear system investment to optimize sales efficiency, enhance effectiveness, and drive deeper customer insights. Internationally, a key one highlight was our launch of direct commercial operations in the UK, Switzerland, and Austria. By doing so, we are better positioned to serve our customers, strengthen HCP relationships, and drive continued growth. The transition has been progressing smoothly, and we plan to continue expanding our direct operations later in 2026 and again in 2027. This approach deepens our engagement with the diabetes community while providing tandem greater AST and improved margins. The second key initiative I'll be discussing today is reshaping our U.S. business model through our transition to a multi-channel strategy. On our last call, we discussed how adopting pay-as-you-go, or PayGo, in the pharmacy channel provides us the opportunity to bring significant advantages to customers, healthcare providers, and payers. while delivering favorable economics to Tandem. Throughout March, we began executing contracts adapted for PAYGO, covering both T-Slim and Mobi pump supplies. We've continued to expand access with an increase to approximately 40% formulary coverage today. It's an important leading indicator for how quickly we can transition our business. Operationalizing PAYGO in the pharmacy channel is an end-to-end change in the way healthcare providers prescribe our technology the way we service customers, and the way we process and fill orders. And we knew this transition would take time. It's still early in the process, and we are working to improve our efficiency and customer satisfaction by enhancing the pharmacy experience. Our early introduction of PAYGO through the pharmacy reinforces our conviction in the meaningful opportunity this transition prevents for our business and for our customers. Finally, I'll provide an update on our new technology across our portfolio. In March, we are excited to announce that Tandem Mobi, the world's smallest durable automated insulin delivery system, is fully available for use with Android smartphones in the U.S. By expanding to Android, we are bringing the benefits of Tandem Mobi to even more people living with diabetes, underscoring our commitment to delivering choice in diabetes technology. In the second quarter, we are on track to deliver on a number of exciting new offerings. In April, we received FDA clearance for use of Control IQ Plus in pregnant women with Type 1. This is significant as it makes the T-Slim X2 and MOBI the first and only commercially available AID systems cleared for use during pregnancy in the U.S. We are also awaiting CE mark for this indication in Europe. Pregnancy requires a much tighter glycemic range. This demonstrates that Control IQ Plus is designed to effectively support the unique therapy needs of pregnant women in addition to women considering pregnancy. We will be hosting a product theater highlighting pregnancy management with Control IQ Plus at the upcoming American Diabetes Association meeting in June. We are also preparing for the international launch of Abbott's Freestyle Libre 3 Plus integration with the T-Slim starting in select European countries in Q2 and scaling to additional countries throughout the year. This integration with Abbott's latest generation sensor will allow even more CGM users to access the life-changing benefits of our ControlIQ technology. Additionally, in Q2, we will begin the commercial rollout of Tandem Mobi outside the United States. This brings together the best-in-class outcomes users have come to expect with ControlIQ Plus and the benefits of Mobi's form factor. Rounding out our Q2 launches, we will be upgrading both T-SWIM and Mobi for compatibility with Dexcom's G7 15-day sensor, ensuring we continue to provide our customers with the latest generation technologies. It is also exciting because this software update will enable Tandon pumps to provide CGM data directly to our SugarMate app with future plans to add insulin data. This provides visibility to sensor information across our device platforms for users and their loved ones. These launches are designed to be global and deployable to all markets, where the relevant system combinations are available, which represents an important accomplishment by our team. While progressing these new offerings to commercial availability, we also made great strides with our pipeline products. We're particularly excited about Movi Tubeless, our novel and infusion-side option for the existing Movi pumps that transforms it into a tubeless AID system, allowing for interchangeability between tube and tubeless wear with one platform. This will be Tandem's first tubeless pump offering and the world's first with extended wear technology. We plan to file our 510K submission for the Mobi tubeless in the second quarter. Finally, we continue to make good progress preparing our pivotal study for Tandem's first fully closed-loop system and remain on track to start it this year. As you can see, we continue to make meaningful progress across the business while demonstrating strong financial results, which we will now discuss.