Insulet’s first quarter was marked by strong momentum, as the company delivered results that exceeded Wall Street’s expectations and were met with a positive market reaction. Management attributed this outperformance to robust demand for its Omnipod 5 insulin delivery system, particularly in both U.S. and international markets. CEO Ashley McEvoy, newly appointed to the role, emphasized the company’s success in attracting new users, noting that more than 30% of U.S. new customer starts were from people with type 2 diabetes—a clear sign of expanding market reach. Chief Financial Officer Ana Chadwick pointed to manufacturing and supply chain efficiencies as key drivers of margin improvement, and highlighted that, despite some headwinds from tariffs, gross margin continued to expand. The combination of commercial execution and product innovation was central to the quarter’s performance.
Is now the time to buy PODD? Find out in our full research report (it’s free).
Insulet (PODD) Q1 CY2025 Highlights:
- Revenue: $569 million vs analyst estimates of $543 million (28.8% year-on-year growth, 4.8% beat)
- Adjusted EPS: $1.02 vs analyst estimates of $0.79 (29.7% beat)
- Adjusted EBITDA: $133.9 million vs analyst estimates of $113.4 million (23.5% margin, 18.1% beat)
- Revenue Guidance for Q2 CY2025 is $608.2 million at the midpoint, above analyst estimates of $576.3 million
- Operating Margin: 15.6%, up from 12.9% in the same quarter last year
- Constant Currency Revenue rose 29.8% year on year (22.8% in the same quarter last year)
- Market Capitalization: $22.03 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Insulet’s Q1 Earnings Call
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Travis Steve (Bank of America) asked CEO Ashley McEvoy about her strategy for growing Insulet and her views on balancing margin expansion with global scale. McEvoy reiterated that the company’s current strategy will remain intact, with ongoing improvement in gross and operating margins.
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Robbie Marcus (JPMorgan) questioned whether management would prioritize top-line growth over margin expansion. McEvoy emphasized that both growth and margin improvement are critical, while Chief Product Officer Eric Benjamin detailed the strong performance of the type 2 diabetes launch.
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Jeff Johnson (Baird) queried whether implied second-half growth guidance was conservative. CFO Ana Chadwick responded that the company intends to deliver on its guidance, noting strong trends but maintaining a prudent outlook given the CEO transition.
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Larry Biegelsen (Wells Fargo) asked about the drivers behind strong new customer starts. Chadwick confirmed sequential and year-over-year growth, while Benjamin credited Omnipod 5’s differentiation and broader adoption across the diabetes community.
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Joanne Wuensch (Citi) focused on margin expansion over the next few years and how it will be balanced with investment. McEvoy highlighted the company’s industry-leading margins and reaffirmed a disciplined approach to investing for growth.
Catalysts in Upcoming Quarters
In the quarters ahead, our team will be watching (1) the pace of adoption in the type 2 diabetes segment, (2) continued expansion and uptake of Omnipod 5 in new international markets, and (3) the impact of manufacturing scale and automation on margins, especially as the Malaysia facility ramps. Additional developments in direct-to-consumer marketing and sensor integration will also be important signposts.
Insulet currently trades at $313.08, up from $257 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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