Beta Bionics, Inc. Q2 FY2025 earnings call

Q2 Performance: Exceeded expectations across the board. Strong demand for iLet with record new patient starts in DME and Pharmacy channels. ### Investor and Analyst Day: Highlighted iLet's position in user engagement and system adaptation, superior clinical outcomes with real-world data. ### Innovation Pipeline: Key strides made, including progress in Mint patch pump program and bihormonal pump program. ### Sales Force Expansion: Expanded sales force by 20 territories to 63, with new territories starting to sell in Q2. ### Product Launches: 3 new products launched in H2 2024 (integration with Abbott's Freestyle Libre 3 Plus CGM, Color iLet, Bionic Circle remote monitoring app) continue to gain traction.

In the second quarter, Beta Bionics delivered net sales of $23.2 million, which grew 54% year-over-year. There were 4,934 new patients adopting the iLet, growing 57% versus the prior year. A high 20s percentage of those new patient starts were reimbursed through the pharmacy channel. Gross margin in the quarter was 53.8%, up slightly relative to 53.7% in Q2 of 2024. The pharmacy installed base of Q2 '25 was over 7x the size of the pharmacy installed base at the end of Q2 '24. Manufacturing volume leverage also contributed to gross margin dynamics.

Net Sales: Projected net sales for full year 2025 to be $88 million to $93 million, up from prior guidance of $82 million to $87 million. ### Gross Margin: Raised outlook to 52% to 55% gross margin for full year 2025 versus prior guidance of 50% to 53%. Driven by increased new patient starts scale leading to manufacturing volume leverage and growing pharmacy installed base. ### Pharmacy Mix: Expect the percentage of new patient starts reimbursed to the pharmacy in the second half of the year to increase relative to Q2, but at a slower pace than Q1 and Q2. ### Revenue Cadence: Anticipate revenue in Q3 to be slightly higher than Q2 and revenue in Q4 to increase relative to Q3. New patient starts in Q3 expected to be similar to Q2, with Q4 expected to increase relative to Q3.

CMS Proposal: Concerns about competitive bidding program potentially undermining modernization goals. The proposed cap on bids may represent a reimbursement cut and incorrect usage assumptions. Shift to pay-as-you-go rental model for pumps introduces logistical complexity, but seen as a net tailwind long-term. Tariffs on custom components for iLet and consumables are exempt under Nairobi protocol, impact is minimal.

Q: About new starts and pharmacy impact on MDI patients.

A: Pharmacy coverage and lower out-of-pocket cost are drivers for new MDI patients starting on durable pumps.

Q: On gross margin guidance and pharmacy contribution.

A: Gross margin guidance raised due to lower cost per unit with scale and growing pharmacy installed base offsetting near-term headwinds.

Q: On OpEx related to sales and marketing in back half.

A: G&A and sales and marketing expenses won't have big uptick in Q3 and Q4; R&D may have lumpiness due to Mint and bihormonal projects.