Tandem Diabetes Care, Inc. (TNDM) Presents at Bank of America Global Healthcare Conference 2026 Transcript

Travis Steed
BofA Securities, Research Division

[Audio gap]

Tandem Diabetes — Leigh Vosseller, Executive Vice President and CFO; and Susan Morrison, Executive Vice President and Chief Accounting Officer, right?

Susan Morrison
Executive VP & Chief Administrative Officer

Administrative…

Travis Steed
BofA Securities, Research Division

Administrative Officer. CAO, right? I think, Leigh, you wanted to start with some opening remarks.

Leigh Vosseller
Executive VP, CFO & Treasurer

Sure. Just a few comments on how we’re kicking off the year, which is strong. We’re celebrating a number of records that we’ve achieved, and this is in the midst of a number of transformational changes in the business as we are strengthening our business model. And so some of the records, I mean, many on the P&L this time.

We had record shipments, record sales for our first quarter. We had record gross margin — it’s our highest first quarter gross margin ever. And it’s really important to make that distinction because this is a quarter when we usually see seasonal pressure on margins, on cash flow. We also demonstrated free cash flow positive this quarter.

So everything has started off really strong. We’re excited to demonstrate some of the things that we’re putting into effect as we talk about the coming quarters, but the launch of the PayGo model in pharmacy really just kicked off late in the first quarter. We started shipping direct in some of our markets outside the U.S. And so I would say we’re firing on all cylinders, and we have a number of ways