Insulet (NASDAQ:PODD) closed out 2025 with what management described as another “strong quarter,” extending a streak of 10 consecutive years with constant currency revenue growth of 20% or more. Executives emphasized recurring revenue and continued demand for the company’s Omnipod automated insulin delivery (AID) products, alongside ongoing investments in research and development, commercial expansion, and manufacturing scale.
Fourth quarter and full-year results
For the fourth quarter, Insulet reported total revenue of $784 million, up 29% on a constant currency basis (31.2% reported). U.S. revenue was $568 million, up 28%, while international revenue was $214 million, up 42% constant currency.
Insulet said it achieved record new customer starts in the fourth quarter and for the full year across the U.S., international markets, and company-wide. CFO Flavia Pease noted that in the U.S. during the fourth quarter, more than 85% of new customer starts came from people transitioning from multiple daily injections (MDI), and type 2 represented more than 40% of all starts.
Market dynamics: Type 1, Type 2, and international growth
CEO Ashley McEvoy characterized the U.S. Type 1 market as a more than $9 billion opportunity, with AID penetration around 40% compared to continuous glucose monitoring (CGM) penetration near 70%. Management said Omnipod is expanding beyond endocrinology channels, citing a U.S. prescriber base of more than 30,000 healthcare professionals, up about 28% year over year.
In U.S. Type 2, management highlighted accelerating momentum, pointing to the recent American Diabetes Association guideline update recommending AID for people with Type 2 diabetes who require insulin. McEvoy described the Type 2 AID penetration rate as below 5% in a market the company estimates at more than $12 billion, versus CGM adoption around 55%. The company said its Type 2 prescriber base grew 62% in 2025 to more than 6,500 clinicians, and emphasized primary care as a key growth channel.
Internationally, the company’s fourth-quarter Omnipod revenue grew 41.7% constant currency (50.7% reported), and full-year Omnipod revenue grew 39.3% constant currency (44.1% reported). Management said volume was the primary driver of international growth, with additional benefit from “positive price mix realization” as customers convert from Omnipod DASH to Omnipod 5. McEvoy highlighted launches and progress in Canada and Australia, noting that in Canada, reimbursement has been secured in half of provinces and new customer starts grew more than 60%, while in Australia new customer starts more than tripled following the Omnipod 5 launch.
The company said Omnipod 5 and Omnipod Discover recently launched in the Middle East, and Spain is expected to launch Omnipod 5 later in 2026. Pease added that Omnipod 5 is now available in 19 countries, including five recent additions in the Middle East.
Margins, spending, and cash flow
Insulet reported a fourth-quarter gross margin of 72.5%, up 40 basis points year over year. Full-year gross margin was 71.6%, up 180 basis points. Management attributed the improvement to revenue growth, manufacturing productivity gains in Acton and Malaysia, positive pricing, and increased volumes. Pease said Malaysia became margin accretive one year after coming online.
The company increased R&D spending by 50% in the fourth quarter and 37% for the full year, citing progress on the product roadmap and clinical programs, including the Strive and Evolution studies. Full-year adjusted operating margin was 17.6%, which management said was ahead of its most recent guidance and represented 270 basis points of expansion year over year. Fourth-quarter adjusted operating margin was 18.7%.
Adjusted EPS was $1.55 for the fourth quarter (up 35% from $1.15 a year earlier) and $4.97 for the full year (up 53% from $3.24). Net interest expense rose following debt refinancing; fourth-quarter net interest expense was $9.2 million and full-year net interest expense was $24.7 million. The non-GAAP adjusted tax rate was 22% for the quarter and 22.3% for the year.
Insulet ended the quarter with $760 million in cash and the full $500 million available under its credit facility. The company delivered more than $375 million in free cash flow in 2025, up 24% year over year, which included about a $70 million tax benefit related to the “One Big Beautiful Bill.” Capital expenditures increased in the fourth quarter to $135 million, reflecting manufacturing investments, including expansion in Malaysia and the start of development of a new facility in Costa Rica, expected to be operational in 2029.
Product roadmap and clinical milestones
Management outlined a 2026 cadence of product enhancements, including algorithm updates aimed at a 100 set point target, increased time in automated mode, and improved responsiveness. Insulet also plans to expand CGM integrations to include FreeStyle Libre 3 Plus and roll out Omnipod Discover globally, describing it as a data platform intended to streamline healthcare professional review and improve onboarding and engagement.
Executives also discussed next-generation systems. Insulet said Omnipod 6 is designed to reduce daily burden through improvements such as connectivity, flexibility in on-body placement, real-time software updates, and more personalized automation. The company said pivotal data supporting Omnipod 6 is expected to be presented at ADA in June, and that the Strive pivotal study results will be reported at ADA. Management also discussed its “fully closed loop” system for Type 2 diabetes, stating it aims to require no user intervention and no clinician-defined settings at start. The company expects to initiate its pivotal Evolution study in 2026, supporting a regulatory filing in 2027 and a commercial launch in 2028.
On sensor integrations, COO Eric Benjamin said Omnipod 5 is already compatible with Dexcom’s 15-day G7 “day one,” and noted a limited market release of FreeStyle Libre integration has begun, with a broader launch expected in the first half of 2026.
2026 outlook and capital allocation
For the first quarter of 2026, Insulet guided for Omnipod revenue growth of 28% to 30% and total company revenue growth of 25% to 27%. For the full year 2026, the company expects Omnipod revenue growth of 21% to 23% and total company revenue growth of 20% to 22%. Management said foreign currency is expected to be favorable by about 200 basis points in the first quarter and 100 basis points for the full year.
Pease said the guidance reflects more challenging year-over-year comparisons as Insulet anniversaries the first full year of the U.S. Type 2 Omnipod launch and begins to annualize several international launches. U.S. Omnipod revenue growth is expected to be 20% to 22% in 2026, while international Omnipod revenue growth is expected to be 24% to 26%.
For profitability, the company expects approximately 100 basis points of operating margin expansion in 2026, which management said incorporates modest gross margin expansion, a “significant step-up” in R&D investment, and leverage in SG&A. Net interest expense is expected to be approximately $40 million in 2026, and the non-GAAP tax rate is expected to be 22% to 23%.
Insulet’s board approved an additional $350 million share repurchase authorization, with management expecting to deploy approximately $300 million in the first quarter of 2026. Based on current plans, the company expects its 2026 ending diluted share count to be around 70 million shares, and guided for 2026 adjusted EPS to increase by more than 25%. Free cash flow is expected to be approximately flat versus 2025, as growth and margin expansion are offset by higher capital expenditures and the absence of the 2025 tax benefit.
About Insulet (NASDAQ:PODD)
Insulet Corporation is a medical device company headquartered in Acton, Massachusetts, that develops, manufactures and sells insulin-delivery systems for people with diabetes. The company’s core business is the design and commercialization of its Omnipod family of tubeless, wearable insulin pumps and the consumable Pods that deliver insulin. Insulet’s products aim to simplify insulin delivery for people with type 1 diabetes and insulin-requiring type 2 diabetes by offering an alternative to traditional insulin pens and tethered pump systems.
The company’s product portfolio includes the Omnipod System line—disposable, waterproof Pods that adhere to the skin and deliver insulin—and the associated controllers and mobile applications used to program and monitor insulin delivery.
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