INSULET CORP Q3 FY2025 earnings call

Innovation - Focused on accelerating innovation, integrating with Dexcom's 15-day sensor, Libre 3 integration in U.S. on track for H1 2026, phone control adoption up to 55% of U.S. users, completed recruitment for STRIVE pivotal trial and Evolution 2 feasibility study. ### Market Development - Pressing pay-as-you-go pharmacy access, system available in over 47,000 U.S. pharmacies, covered by over 90% of commercial plans, addressing prior authorization barriers and expanding access for underserved populations. ### Demand Generation - Invested in DTC, yielding record qualified leads, 65% of leads from providers not currently called on by sales force. ### Global Operational Scale - Manufacturing facilities in Acton and Malaysia ramping ahead of plan, accelerating investments to increase capacity, integrating AI and cloud-based tools for service operations.

Insulet's third quarter showcased strong financial performance. U.S. Omnipod revenue grew 25.6% above the high end of guidance range, driven by demand for Omnipod 5 across Type 1 and Type 2. International Omnipod business achieved 46.5% reported revenue growth and 39.9% constant currency growth, crossing $200 million for the first time. U.S. revenue growth was impacted by rebate timing and prior year inventory, but normalized growth was higher. International growth was fueled by Omnipod 5 rollout, price/mix realization from DASH to Omnipod 5 conversions, and strong demand in markets like the U.K., Germany, and France.

Fourth Quarter - Expect total Omnipod revenue growth 27%-30%, total company growth 25%-28%, U.S. Omnipod growth 24%-27%, international Omnipod growth 37%-40%. ### Full Year 2025 - Raised total Omnipod revenue growth to 29%-30% from 25%-28%, total company revenue growth to 28%-29% from 24%-27%. U.S. Omnipod growth raised to 26%-27% from 22%-25%, international Omnipod revenue guidance raised to 38%-39% from 34%-37%. Full year gross margin expected over 71%, operating margin 17.3%-17.5%.

Q: Robbie Marcus from JPMorgan asked about why Omnipod 5 is winning, including form factor, algorithm, onboarding.

A: Ashley McEvoy responded it's broad-based, combination of strong science, beloved brand, differentiated access/affordability, resilient supply chain, and flexible balance sheet for innovation.

Q: David Roman from Goldman Sachs asked about Type 2 adoption and DTC's impact.

A: Ashley McEvoy said it's a large TAM, prescriber base up 26% in quarter, NTS up 100% YOY, 26% QOQ, driven by strong science, reputation leverage, and DTC leads from non-called-on providers.

Q: Travis Steed from Bank of America asked about 2026 and guidance refinement.

A: Ashley McEvoy and Flavia Pease discussed confident in 2026 growth, with guidance to reflect balanced outlook, acknowledge risks, and focus on key drivers.