AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 6/6 · 18/10/2026
Moat56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · Patented tubeless functionality, an obtained type 2 indication and substantial active adoption establish a current differentiated position. Comparative superiority and patent scope remain incompletely documented.
durability · 2/4 · The disclosed growth history and recurring disposable use support persistence, but product competition, IP vulnerability and dependence on integration agreements prevent strong confidence in long-term protection.
customer dependency · 2/4 · Continuous Pod use and transition training create ongoing engagement and some learning friction. These are indirect indicators; no contractual lock-in or measured switching burden is established.
erosion resilience · 2/4 · Omnipod revenue continued growing and second-quarter manufacturing efficiencies offset some quality costs. Actual corrections and first-half margin deterioration nevertheless show meaningful operational vulnerability.
Pricing power44
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 2/4 · An implemented 2024 wholesale acquisition cost increase contributed to higher average selling prices. Recent international gains also reflect higher-priced Omnipod 5 mix, leaving like-for-like net pricing power only partly demonstrated.
retention · 2/4 · A substantial active-user base, frequent disposable replacement and continued sales growth support repeat demand indirectly. New-user acquisition and distributor activity prevent treating aggregate growth as a measured retention rate.
margin resilience · 2/4 · Second-quarter gross margin improved despite warranty costs, supported by manufacturing efficiencies. First-half gross margin declined from 70.7% to 69.8%, demonstrating mixed resilience rather than immunity to quality and transition costs.
contractual freedom · 1/4 · Reimbursement is established through negotiated contracts, and payors can generally terminate without cause. An implemented wholesale increase shows some discretion, but contractual access and pricing freedom are constrained.
Predictability59
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 75.00
- Revenue growth volatility (pp)
- 23.12
- Positive FCF years (%)
- 60.00
- FCF margin volatility (pp)
- 11.36
Financial strength83
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 78.38
- netDebtEbitGrade
- 90.16
- interestCoverageGrade
- 63.42
- currentRatioGrade
- 100.00
- Debt / FCF (x)
- 2.51
- Net debt / operating income (x)
- 0.49
- Interest coverage (x)
- 7.98
- Current ratio (x)
- 2.81
Capital allocation90
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 21.55
- 3-year average dilution (%)
- 0.47
- 3-year average SBC / revenue (%)
- 2.84
- cashConversionGrade
- 86.41
Management63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Operations generated $202.2 million of cash in the first half of 2026 while manufacturing investment continued. The $300 million cash buyback exceeded $145.4 million of free cash flow and contributed to lower cash balances. The abandoned Omnipod GO inventory charge also limits confidence; investment and repurchase returns are unproven.
incentive alignment · 3/4 · Actual 2025 approved grants included a CEO allocation of 60% PSUs, with financial measures and a relative TSR modifier over three years. Independent committee decisions support alignment. Adjusted metrics, revenue emphasis and missing executive ownership evidence limit the conclusion; these disclosures do not establish actual vesting or exceptional outcomes.
execution · 3/4 · Historical revenue growth, completed international launches and continued first-half 2026 revenue and operating-income growth demonstrate strong execution through operating outcomes. Actual device corrections and inventory charges are material weaknesses. The longer record reflects successive management teams rather than solely the current CEO.
governance · 2/4 · An independent audit committee, audited effective financial controls, proxy access and independent compensation decisions provide substantive safeguards. Classified director terms and a resignation policy requiring board consideration temper shareholder accountability. Safety-related securities allegations remain unresolved and do not establish misconduct.
Evidence
Our Solution: The Omnipod Platform The Omnipod platform offers continuous insulin delivery that provides all the benefits of insulin pump therapy in a unique way without the need for external tubing required with conventional pumps.
Item 1, Business, Our Solution: The Omnipod Platform · Filed 18/02/2026
Our Omnipod platform’s unique patented design allows us to provide Pod therapy at a relatively low or no up-front investment, which reduces the risk to third-party payors in the United States.
Item 1, Business, Third-Party Coverage and Reimbursement · Filed 18/02/2026
We rely on a combination of patents, trade secrets, copyright and trademark laws, confidentiality, non-disclosure and assignment of invention agreements, and other contractual provisions and technical measures to protect our intellectual property rights.
Item 1A, Risks Related to Intellectual Property · Filed 18/02/2026
In August 2024, we received FDA clearance for an expanded indication of Omnipod 5 for people with type 2 diabetes.
Omnipod 5 expanded type 2 indication · Filed 18/02/2026
As of December 31, 2025, we had more than 600,000 estimated active Omnipod users globally.
Active global Omnipod users at December 31, 2025 · Filed 18/02/2026
Our Pod is intended to be used continuously for up to three days, after which it may be replaced with a new disposable Pod.
Item 2, MD&A, disposable Pod use · Filed 05/08/2026
$ 544.1 $ 453.2 $ 1,059.7 $ 854.9 International 251.8 185.8 494.6 338.1 Total Omnipod products 795.9 639.0 1,554.3 1,193.0 Drug Delivery 5.8 10.2 9.1 25.1 Total revenue $ 801.7 $ 649.1 $ 1,563.4 $ 1,218.1 The percentages of total revenue for customers that represent 10% or more of total revenue were as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Distributor A 25 % 26 % 23 % 26 % Distributor B 17 % 27 % 21 % 25 % Distributor C 22 % 22 % 21 % 23 % Deferred revenue related to unsatisfied performance obligations was included in the following consolidated balance sheet accounts in the amounts shown: (in millions) June 30, 2026 December 31, 2025 Accrued expenses and other current liabilities $ 12.4 $ 14.0 Other liabilities 2.1 1.5 Total Deferred Revenue $ 14.5 $ 15.5 Revenue recognized from amounts included in deferred revenue at the beginning of each respective period was as follows: Six Months Ended June 30, (in millions) 2026 2025 Deferred revenue recognized $ 11.0 $ 6.2 10 Table of Contents Capitalized contract acquisition costs, representing capitalized commission costs related to new customers, net of amortization, were included in the following consolidated balance sheet captions in the amounts shown: (in millions) June 30, 2026 December 31, 2025 Prepaid expenses and other current assets $ 27.2 $ 25.3 Other assets 56.6 53.0 Total capitalized contract acquisition costs, net $ 83.8 $ 78.4 The Company recognized $6.6 million and $5.5 million of amortization of capitalized contract acquisition costs during the three months ended June 30, 2026 and 2025, respectively, and recognized $12.9 million and $10.6 million of amortization of capitalized contract acquisition costs during the six months ended June 30, 2026 and 2025, respectively.
Revenue disclosures, Omnipod sales and distributor concentration · Filed 05/08/2026
2025 marked our 10th consecutive year of 20% or greater constant currency revenue growth.
CEO shareholder letter, historical constant currency revenue growth · Filed 06/04/2026
We compete with established companies that produce insulin pumps, such as Medtronic Diabetes, a division of Medtronic plc (which division is being spun out into a new, independent publicly traded company), Tandem Diabetes Care Inc., as well as emerging companies like Beta Bionics Inc.
Item 1A, Risks Related to Competition and Product Development · Filed 18/02/2026
MDI therapy, including smart pens, can be substantially less expensive than pump therapy, and improvements in the effectiveness of MDI therapy may result in fewer people than we expect converting from MDI therapy to pump therapy, which could result in price pressure and decreased revenue.
Item 1A, competition from MDI therapy · Filed 18/02/2026
Despite these measures, any of our intellectual property rights could be challenged, invalidated, circumvented, or misappropriated.
Item 1A, intellectual property protection risks · Filed 18/02/2026
While we anticipate entering into additional contracts with other intermediaries and third-party payors, we cannot be sure that our efforts will be successful or that we will be able to maintain these contracts as they can generally be terminated by the third-party payor without cause.
Item 1A, payor contract termination rights · Filed 18/02/2026
These increases in gross margin were partially offset by higher warranty costs resulting from the voluntary medical device correction issued in May 2026 discussed under “Factors Affecting Operating Results.”
Item 2, MD&A, second-quarter warranty costs and May 2026 device correction · Filed 05/08/2026
Gross margin was 69.8% for the six months ended June 30, 2026, compared with 70.7% for the six months ended June 30, 2025.
Item 2, MD&A, first-half gross margin comparison · Filed 05/08/2026
The 90 basis point decrease in gross margin was primarily driven by higher warranty costs resulting from the voluntary medical device corrections discussed under “Factors Affecting Operating Results” and, to a lesser extent, an increase in inventory excess and obsolescence reserve as we transition to our new Pod configurations.
Item 2, MD&A, warranty costs and inventory obsolescence · Filed 05/08/2026
For example, we have commercial agreements with Dexcom and Abbott that allow us to sell Omnipod 5 with integration to Dexcom’s and Abbott’s CGM sensors.
Risk factors, commercial agreements for CGM integrations · Filed 21/02/2025
To a lesser extent, the revenue increase was driven by a higher average selling price resulting from our annual wholesale acquisition cost increase implemented during the second quarter of 2024 and growth in the pharmacy channel.
MD&A, 2024 U.S. average selling price drivers · Filed 21/02/2025
Excluding the 7.9% favorable impact of currency exchange, the remaining 38.4% increase in revenue was primarily due to higher volumes from our growing customer base, and to a lesser extent, a higher average selling price for Omnipod 5, compared with Omnipod DASH.
Item 2, MD&A, first-half international volume and selling price drivers · Filed 05/08/2026
Gross margin was 70.2% for the three months ended June 30, 2026, compared with 69.7% for the three months ended June 30, 2025.
Item 2, MD&A, second-quarter gross margin comparison · Filed 05/08/2026
The 50 basis point increase in gross margin was primarily driven by improved manufacturing efficiencies and, to a lesser extent, increased volumes from our growing customer base.
Item 2, MD&A, manufacturing efficiencies and volume · Filed 05/08/2026
We enter contracts establishing reimbursement for Omnipod products with national and third-party payors and government agencies that provide reimbursement in all 50 states.
Item 1, Business, negotiated reimbursement contracts · Filed 18/02/2026
We created tailored online training programs for Omnipod customers transitioning to Omnipod 5 and new Omnipod customers transitioning from MDI.
Item 1, Business, customer transition training · Filed 18/02/2026
7 Table of Contents INSULET CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Six Months Ended (in millions) 2026 2025 Cash flows from operating activities Net income $ 186.1 $ 57.9 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 52.9 44.0 Stock-based compensation expense 40.9 25.7 Non-cash interest expense 1.4 4.6 Loss on extinguishment of debt — 123.9 Deferred income taxes 15.2 7.0 Provision for credit losses 0.7 5.1 Other (0.5) 4.0 Changes in operating assets and liabilities: Accounts receivable (76.9) (41.8) Accounts receivable - related party — (25.1) Inventories (34.9) (4.7) Prepaid expenses and other assets (28.1) (31.6) Accounts payable 39.9 72.6 Accrued expenses and other liabilities 5.6 18.7 Net cash provided by operating activities 202.2 260.3 Cash flows from investing activities Capital expenditures (56.8) (30.9) Investments in developed software (8.3) (8.0) Net cash used in investing activities (65.1) (38.9) Cash flows from financing activities Proceeds from issuance of senior unsecured notes, net of issuance costs — 440.7 Repayment of convertible debt — (541.5) Settlement of capped call options — 75.7 Proceeds from issuance of term loan B, net of issuance costs — 15.5 Repayment of other debt (9.1) (26.4) Proceeds from secured borrowings (note 3) — 36.1 Repayment of secured borrowings (note 3) — (32.6) Repurchase of common stock (300.0) (30.1) Proceeds from exercise of stock options 0.5 12.6 Proceeds from issuance of common stock under employee stock purchase plan 8.9 7.1 Payment of withholding taxes in connection with vesting of restricted stock units (16.2) (22.9) Net cash used in financing activities (315.9) (65.8) Effect of exchange rates on cash and cash equivalents (2.4) 12.7 Net (decrease) increase in cash and cash equivalents (181.2) 168.2 Cash and cash equivalents, beginning of period 716.1 953.4 Cash and cash equivalents, end of period $ 534.9 $ 1,121.6 Supplemental disclosure of cash flow information: Purchases of property and equipment included in accounts payable and accrued expenses $ 22.4 $ 4.5 See notes to condensed consolidated financial statements.
Condensed consolidated statements of cash flows, six months ended June 30, 2026 · Filed 05/08/2026
GAAP measure) and free cash flow is as follows: Six Months Ended June 30, (in millions) 2026 2025 Net cash provided by operating activities $ 202.2 $ 260.3 Capital expenditures (56.8) (30.9) Free cash flow $ 145.4 $ 229.4 Capitalization The following table contains several key measures to gauge our financial condition and liquidity at the end of each period: (in millions) June 30, 2026 December 31, 2025 Cash and cash equivalents $ 534.9 $ 716.1 Current portion of long-term debt $ 18.9 $ 18.4 Long-term debt, net $ 929.5 $ 930.8 Total debt, net $ 948.4 $ 949.2 Total stockholders’ equity $ 1,422.2 $ 1,515.2 Debt-to-total capital ratio 40 % 39 % Net debt-to-total capital ratio 17 % 9 % Credit Agreement We have a $500 million senior secured revolving credit facility (the “Revolving Credit Facility”), which expires in 2030.
MD&A, free cash flow reconciliation and capitalization · Filed 05/08/2026
As a result, in 2024, we recorded a charge of $13.5 million related to certain inventory components that would not be utilized.
Omnipod GO commercialization decision and inventory charge · Filed 18/02/2026
The $25.9 million increase primarily related to the purchase of machinery, equipment and tooling for our existing manufacturing facilities and initial investment in our Costa Rica manufacturing plant.
MD&A, actual manufacturing capital spending · Filed 05/08/2026
Specifically: • an annual incentive cash compensation program that is tied to the Company’s attainment of objective pre-established financial and strategic performance metrics as well as individual performance; and • long-term incentive awards consisting of stock options, restricted stock units (“RSUs”), and performance share units (“PSUs”) tied to financial metrics and relative total shareholder return measured over a three-year performance period.
Executive compensation, annual and three-year incentive structure · Filed 06/04/2026
• Determined that long-term incentive awards for the CEO would continue to be allocated 60% to PSUs, 20% to RSUs and 20% to stock options, as in fiscal 2024.
2025 CEO long-term incentive allocation · Filed 06/04/2026
• Approved grants of stock options, RSUs and PSUs in alignment with our compensation philosophy and program.
2025 approved equity incentive grants · Filed 06/04/2026
PSU Design. When establishing the plan design for the PSU awards issued as part of the Company’s 2025 annual long-term incentive award, the Committee reviewed the fiscal 2024 PSU performance metrics and weightings (adjusted revenue – 70%; adjusted EBIT – 30%) in light of the Company’s long-term business strategy and fiscal 2025 strategic imperatives.
2025 PSU design and prior-year performance metric weightings · Filed 06/04/2026
Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in the 2013 Internal Control—Integrated Framework issued by COSO.
Independent auditor opinion on internal control over financial reporting · Filed 18/02/2026
Minogue, are each “independent” for Audit Committee purposes under the applicable Nasdaq and SEC rules.
Audit Committee report, committee independence · Filed 06/04/2026
A stockholder or group of up to 20 stockholders who have continuously owned at least 3% of Insulet’s common stock for at least three years have the ability to submit Director nominees (up to the greater of two or 20% of the Board) for inclusion in the related proxy statement if the stockholder(s) and the nominee(s) satisfy the requirements specified in Insulet’s Bylaws.
Shareholder proxy access under existing bylaws · Filed 06/04/2026
However, in accordance with the Company’s majority voting policy (as described in the section entitled “Governance of the Company – Governance Policies and Procedures”), in the event that a nominee receives a greater number of “withhold” votes than votes “for” his or her election, such nominee is required to tender his or her written resignation to the Board Chair and such resignation will be considered by the Nominating, Governance and Risk Committee and the Board of Directors.
Director election procedures and resignation policy · Filed 06/04/2026
The complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, arising from allegedly false and misleading public statements regarding the quality and safety of the Company’s Omnipod products.
Note 11, securities litigation allegations · Filed 05/08/2026
3 Table of Contents INSULET CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) Three Months Ended June 30, Six Months Ended June 30, (in millions, except share and per share data) 2026 2025 2026 2025 Revenue $ 801.7 $ 470.5 $ 1,563.4 $ 891.0 Revenue to related party — 178.6 — 327.1 Total revenue 801.7 649.1 1,563.4 1,218.1 Cost of revenue 239.1 196.9 471.8 356.8 Gross profit 562.6 452.2 1,091.6 861.3 Research and development expenses 88.1 73.4 177.8 133.0 Selling, general and administrative expenses 344.8 257.7 662.1 518.4 Operating income 129.7 121.1 251.8 209.9 Interest expense (13.5) (19.6) (28.2) (28.8) Interest income 3.6 10.1 8.5 20.3 Loss on extinguishment of debt — (84.4) — (123.9) Other (expense) income, net (1.1) 1.3 (0.4) (0.9) Income before income taxes 118.7 28.4 231.7 76.5 Income tax expense (23.7) (5.9) (45.6) (18.6) Net income $ 95.0 $ 22.5 $ 186.1 $ 57.9 Earnings per share: Basic $ 1.37 $ 0.32 $ 2.67 $ 0.82 Diluted $ 1.37 $ 0.32 $ 2.67 $ 0.82 Weighted-average number of common shares outstanding (in thousands): Basic 69,298 70,389 69,642 70,330 Diluted 69,403 70,652 69,803 70,641 See notes to condensed consolidated financial statements.
Condensed consolidated statements of income, second quarter and first half of 2026 · Filed 05/08/2026
In 2025, we expanded Omnipod 5 into nine additional international markets, strengthened integration with leading CGM partners and enhanced our capabilities to further improve personalization and automation.
Shareholder letter, completed 2025 international launches and integrations · Filed 06/04/2026
To elect three Class I Directors nominated by the Company’s Directors, each to serve for a three-year term and until his or her successor has been duly elected and qualified or until his or her earlier death, resignation or removal; 2.
Annual meeting notice, classified director terms · Filed 06/04/2026
All final decisions affecting named executive officer compensation are made by the Committee, in its sole discretion, and outside of the presence of any impacted named executive officers.
Compensation decision process, independent committee authority · Filed 06/04/2026
